Coram, NY-- Congressman Tim Bishop today called for an immediate vote on the Small Business Jobs and Credit Act (H.R. 5297). As a new Labor Department report showed that Long Island added private-sector jobs at the fastest rate in three years, Bishop highlighted the need for more action.
"This is not a time for complacency, we must do more to help small business create jobs here on Long Island," Bishop said. "This legislation means tax cuts and access to capital for small business."
The Small Business Jobs and Credit Act passed the US Senate on Thursday by a 61-38 vote after two Republican Senators agreed to break a months-long Republican filibuster which had been preventing a vote on the legislation. The legislation will help create jobs through expanded access to capital and $12 billion in targeted tax incentives for small business. The bill also includes a Small Business Lending Fund which according to the Independent Community Bankers of America, would leverage $300 billion in lending through an initial $30 billion investment to community banks. This would not only create jobs, but would be paid back to taxpayers as the banks repay the Treasury.
Bishop said the timing of this legislation is particularly urgent because of the New York State Department of Labor's report that Long Island added 11,300 more private-sector jobs in August than in the same month last year, with the Island's unemployment rate declining in August to 7.0 percent from 7.2 percent in July. Nationally, the unemployment rate at the end of August was 9.6 percent.
"Long Island's economy is stronger than most of the rest of the country, but that's not good enough," Bishop said. "Small business is the engine of our economy, and we need to make sure that engine has the fuel to run."
Key provisions in the Small Business Jobs and Credit Act include:
--$30 billion small-business lending fund. The legislation creates a $30 billion fund to encourage small-business lending by banks with under $10 billion in assets. Banks that make more small-business loans pay a lower dividend on the money they borrow than banks that don't. The fund is expected to leverage $300 billion in lending to small businesses.
--SBA general business 7(a) loans. Extends through 2010 the 90 percent guarantee level and waived borrower fees first enacted in the 2009 stimulus. Also permanently raises the maximum loan size to $5 million from $2 million.
--SBA 7(a) Express loans. The bill would temporarily -- for one year from the date it is enacted -- raise the maximum loan size to $1 million from $350,000.
--Capital gains exclusion. Temporarily increases to 100 percent the capital gains exclusion for stock issued by some small businesses from the time the bill is enacted through the end of the year. The gain is limited to 10 times the original investment or $10 million, whichever is greater, and is not subject to the alternative minimum tax.
--Bonus depreciation. Restores through 2010 the generous 50-percent first-year depreciation for some kinds of property. Bonus depreciation was originally enacted in the first stimulus bill and in place for 2008 and 2009.
--Start-up deduction. Increases, for 2010, the deduction for start-up expenditures to $10,000, from $5,000, and raises the cap on expenditures that triggers a phase-out of the deduction to $60,000, from $50,000.