Senate Passes Small Business Jobs and Credit
September 23, 2010
The Senate passed the Small
Business Jobs and Credit Act of 2010 last week. The bill was
written to lower taxes and make loans more readily available for
small business owners. In addition, if enacted into a law, the bill
would help small business owners access private capital to finance
expansions and hire new workers, and would reward small business
investors-in a long-term attempt to help small businesses compete
with large corporations.
H.R. 5297, the Small Business Lending Fund Act, will establish
a $30 billion fund to boost lending to small businesses looking
to hire and expand their operations by providing additional capital
to community banks, according to information from Rep. Barney Frank
(D - Mass.), who is one of 21 co-sponsors of the bill.
He points out that the program is completely separate from TARP
and mandates accountability and oversight by Congress, the U.S.
Government Accountability Office, and the Treasury Department's
"Small businesses create two in every three jobs in this country.
Helping them innovate and grow has to be our top priority,"
says co-sponsor Rep. Gary Peters (D - Mich.). "States are already
engaged in extremely effective efforts to promote small business
lending, and strengthening these efforts will create jobs across
Co-sponsor Rep. Steve Driehaus (D - Ohio) adds, "Small businesses
are responsible for the majority of new jobs in the United States,
but every day I hear from small business owners who still aren't
able to borrow. Job creation is our top priority, and we need to
ensure that the businesses creating those jobs are able to invest
and grow. This legislation is going to make it easier for small
businesses in Cincinnati and across the country to access the resources
they need and continue on the path toward recovery."
H.R. 5297 was approved by a vote of 42-23 and now moves to the
House floor for consideration.
Independent Glass Association executive director Mike Russo says
he expects the impact of the Small Business Jobs Act to be somewhat
small toward the auto glass industry.
"The concept behind the Small Business Jobs Act is to make
loans available to small businesses (at the community bank level),
which in turn will use the funds to invest in their businesses,
thereby spurring growth and the need to hire new employees,"
Russo told glassBYTEs.com/AGRR magazine. "As it
pertains to the AGRR industry, I do not see the Act as having a
major impact. As I perceive the situation, most businesses currently
operating in this industry are struggling, predominantly for reasons
other than lack of capital. Competition is intense and profit margins
are thin. It is not a business atmosphere that is conducive to growth."
However, Russo says if the industry were structured differently,
there could be a positive affect from such a bill.
"In addition, the industry does not operate on free market
principles having barriers to access to the customers and price
controls," he adds. "So the expected benefit that Congress
would hope for, at least in the AGRR industry, will not come to
fruition due to other reasons. I hold the opinion that if the AGRR
industry were functioning like a free market economy, the Act would
probably would have some benefit-especially given the tight credit
markets that small businesses are currently experiencing. Prior
to the Act, small businesses had very limited access to loans."
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