Obama Signs $30B Small Business Lending Bill 9-27-2010 - WNEM TV 5

Obama Signs $30B Small Business Lending Bill 9-27-2010

Scoring a prized political victory five weeks before the Nov. 2 elections, President Barack Obama on Monday signed a bill to help small businesses expand and hire by cutting their taxes and creating a $30 billion loan fund.
Obama said the incentives will help small businesses right away. But any hiring may not be enough to help some Democrats ahead of crucial midterm elections in which voters are expected to vent their frustrations over a slow-growing economy and near-10 percent unemployment.
The bill had been delayed for months, blocked in the Senate by Republicans. Most in the GOP objected to the loan fund, comparing it to the 2008 financial industry bailout and arguing that it would encourage banks to make loans to risky borrowers. Two GOP senators, George Voinovich of Ohio and George LeMieux of Florida, helped Democrats break the filibuster this month - and the bill passed.
Obama said small businesses are "the anchors of our Main Streets," creating most of the jobs in the country.
"It was critical that we cut taxes and make more loans available to entrepreneurs," he said before signing the bill in the East Room of the White House. "Today, after a long and tough fight, I am signing a small business jobs bill that does exactly that."
The bill creates a $30 billion government fund to help encourage lending to small businesses, many of which have been having difficulty securing bank loans and credit. The fund will be available to community banks, which could use the money to leverage billions more in loans.
The legislation also includes about $12 billion in tax breaks for small business - eight separate tax cuts that take effect Monday. One such provision increases to $500,000 the amount of investments that businesses would be allowed to write off this year and next.
The measure also gives a boost to some Small Business Administration loan programs.
The new law follows earlier administration efforts to help small businesses, including eight different tax cuts as well as a temporary payroll tax holiday for companies that hire people off the unemployment lines.
"This bill will do two big things," Obama said before signing the bill. "It's going to cut taxes and it's going to make more loans available for small businesses. It's a great victory for America's entrepreneurs."
Part of it is patterned after the Michigan Supplier Diversification Program, which made money available to auto suppliers to shift into other types of manufacturing when the auto industry downsized.
The new fund would be available to community banks to encourage lending to small businesses.
However, several Mid-Michigan business owners TV5 talked with Monday said while the new bill is well indented -- it may not meet their needs.
Mary Seelhoff, owner of Clark Hardware in Saginaw, says she likes the idea, but is afraid to take out a loan in such an uncertain business climate.
"It will help you if you have room to expand, but as for a small business like mine, a tax break would do us much better," she said.
Other area business owners echoed Seelhoff's sentiments. Hear what others had to say by clicking play on the video below:
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