Congressman Paul Tonko today voted in favor of legislation that will boost small businesses and create thousands of new jobs, which will help build a strong, new foundation for the American economy. The Small Business Jobs and Credit Act passed the House by a vote of 241-182.
"I am committed to providing the tools small businesses need to invest, grow and create jobs," said Congressman Tonko. "I have heard from many small business owners who say it is still difficult to get the credit they need for their business. This bill will help fill that gap by furnishing badly needed loans to small businesses which will continue to help push our economic recovery forward."
The Small Business Jobs and Credit Act will leverage up to $300 billion in loans for small businesses through a $30 billion loan fund for small and medium sized banks, which focus mainly on small business lending. The loans would be available only to banks with assets of less than $10 billion. The bill will also create a public private partnership through the Small Business Administration designed to channel investment capital to promising small business start-ups.
The legislation also offers tax incentives to spur immediate investments in small business by lowering the capital gains taxes on small business investments, and increasing tax deductions to help entrepreneurs recover more of their start-up expenses.
Congressman Tonko added: "Small businesses are the engine of job creation for our economy -- they have been responsible for two-thirds of the hiring over the past 15 years. This legislation will add to the work we've already done in the House to address the challenges small businesses face, so that they can continue to grow and create jobs."