WASHINGTON, D.C., Sept. 20, 2010 – The Senate has passed “The Small Business Jobs and Credit Act of 2010,” H.R. 5297, by a vote of 61-38. The bill originally passed the U.S. House of Representatives June 28, 2010, and it now returns to the House for final passage. The bill creates a $30 billion lending fund that will be distributed to regional banks that will in turn lend to small businesses. It also authorizes $12 billion in tax cuts for small businesses. Advocates for the lending bill believe it will have a large impact on the U.S. economy, as small businesses employ approximately half of all Americans and account for almost 60 percent of gross domestic product.
U.S. Sen. Mary Landrieu, D-La., chairwoman of the Senate Committee on Small Business and Entrepreneurship, made the following comment on the passage of the bill:
“The passage of this bill is a long-awaited victory for the 27 million small businesses in America. Upon signature by the president, these businesses will benefit from $12 billion in immediate tax cuts. $12 billion will transfer from the federal treasury into the hands of small business owners to help them navigate these difficult financial times. It is the right thing to do and the smart thing to do.”
The U.S. Department of Treasury will be responsible for the small business lending fund, and some of the key provisions of Title 1 of the bill include:
• Requiring an applicant institution to provide information to the appropriate federal banking agency, as well as a small business lending plan, outlining how its business strategy and operating goals would allow it to address the needs of small businesses in the areas it serves;
• Setting forth financial incentives for small business lending by such institutions;
• Requiring capital investment recipients to provide outreach and advertising in the appropriate language of the applicant pool using media outlets that target organizations, trade associations and individuals who represent or work within or are members of minority communities;
• Establishing the Small Business Lending Fund Program as separate and distinct from TARP;
• Directing the secretary to study and report to Congress on the number of women-owned and minority-owned businesses that receive assistance as a result of the program.
To view a complete summary of the legislation, along with the full text, visit ASA’s legislative website at www.TakingTheHill.com.
The Automotive Service Association is the largest not-for-profit trade association of its kind dedicated to and governed by independent automotive service and repair professionals. ASA serves an international membership base that includes numerous affiliate, state and chapter groups from both the mechanical and collision repair segments of the automotive service industry. ASA’s headquarters is in Bedford, TX.
ASA advances professionalism and excellence in the automotive repair industry through education, representation and member services. For additional information about ASA, including past news releases, go to http://www.ASAshop.org, or visit ASA’s legislative website at http://www.TakingTheHill.com.