Congressman Phil Hare (D-IL) today voted for the Small Business Lending Fund Act which cuts taxes for small businesses and creates a $30 billion fund for community banks to leverage up to $300 billion in loans for them. The President has indicated he will sign the bill on Monday.
"Small businesses are the backbone of our economy," Hare said. "Unfortunately, small business owners and their employees have suffered disproportionately during these tough economic times. When the credit markets tightened and payrolls declined, small businesses were forced to make incredibly tough decisions--some shutting their doors forever. This legislation will help existing small businesses grow and give entrepreneurs the assistance they need to open new ones."
The bill includes tough performance-based incentives to make sure that banks lend to small businesses. For instance, banks would face progressively lower interest rates as they increase their small business lending. In addition, the program would only be available to banks with less than $10 billion in assets. Over 90% of eligible banks will be community banks with less than $1 billion in assets.
Finally, the bill also includes more than $12 billion in tax incentives designed to help small businesses, an increase in Small Business Administration loan limits, and provisions intended to help small businesses export their goods.
"This new lending fund for smaller community banks will help loosen credit so our small businesses can access capital to expand and hire more workers," Hare concluded. "Stronger small businesses mean more jobs."
Congressman Hare will visit JTM Concepts, a Rock Island small business, on Tuesday, September 28 to highlight this legislation.