Small Business Lending Bill

[Guest M. Possart]

100% Exclusion of Small Business Capital Gains. Generally, non-corporate taxpayers may exclude 50 percent of the gain from the sale of certain small business stock acquired at original issue and held for more than five years. For stock acquired after February 17, 2009 and before January 1, 2011, the exclusion is increased to 75 percent. At the time of sale, however, 28% of the excluded gain will be treated as a tax preference item subject to the alternative minimum tax (AMT). Qualifying small business stock is from a C corporation whose gross assets do not exceed $50 million (including the proceeds received from the issuance of the stock) and who meets a specific active business requirement. The amount of gain eligible for the exclusion is limited to the greater of ten times the taxpayer's basis in the stock or $10 million of gain from stock in that corporation. This bill would temporarily increase further the amount of the exclusion to 100 percent of the gain from the sale of qualifying small business stock that is acquired after the date of enactment in 2010 and held for more than five years. Additionally, the bill eliminates the AMT preference item attributable for that sale. This provision is estimated to cost $517 million over ten years.

 

General Business Credit Carried Back Five Years. Under current law, a business' unused general business credit may generally be carried back to offset taxes paid in the previous year, and the remaining amount may be carried forward for 20 years to offset future tax liabilities. This bill extends the one year carryback for general business credits to five years for certain small businesses. This applies to general business credits for those sole proprietorships, partnerships and non-publicly traded corporations with $50 million or less in average annual gross receipts for the prior three years. This provision is estimated to cost $107 million over ten years.

 

General Business Credit Not Subject to AMT. Under the Alternative Minimum Tax (AMT), taxpayers may generally only claim allowable general business credits against their regular tax liability, and only to the extent that their regular tax liability exceeds their AMT liability. A few credits may be used to offset AMT liability, such as the credit for small business employee health insurance expense. This bill allows certain small businesses to use all types of general business credits against their AMT. This applies to general business credits for those sole proprietorships, partnerships and non-publicly traded corporations with $50 million or less in average annual gross receipts for the prior three years. This provision is estimated to cost $977 million over ten years.

 

S Corp Holding Period. Generally, a C corporation converting to an S corporation must hold onto any appreciated assets for 10 years following its conversion or face a business-level tax imposed on the built-in gain at the highest corporate rate of 35 percent. This holding period is reduced where the 7th taxable year in the holding period preceded the taxable year beginning in 2009 or 2010. This bill temporarily shortens the holding period of assets subject to the built-in gains tax to 5 years if the 5th taxable year in the holding period precedes the taxable year beginning in 2011. This provision is estimated to cost $70 million over ten years.

Increase Small Business Administration (SBA) Loan Limits. This provision increases 7( a ) loan limits from $2 million to $5 million, 504 loans from $1.5 million to $5.5 million, and microloans from $35,000 to $50,000. It also increases the government guarantee on 7( a ) loan limits, while providing the elimination of borrower fees on 7( a ) and 504 loans through December 31, 2010. It increases the 7(a) Express Loans from $300,000 to $1 million to increase working capital to small businesses. The package also includes Intermediary Lending Pilot program, which allows the SBA to make direct loans to eligible nonprofit lending intermediaries, in turn allowing them to make loans to new or growing small businesses. SBA has estimated that the loan increase would increase lending to small businesses by $5 billion in the first year. This provision is estimated to cost $26 million over two years.

 

Extend Elimination of Small Business Administration (SBA) Loan Fees. This provision extends the American Recovery and Reinvestment Act small business lending program that eliminates the fees normally charged for loans through the SBA 7(a) and 504 loan programs and increases the government guarantees on 7(a) loans from 75% to 90%. Since its creation, the program has supported over $26 billion in small business lending, which has helped to create or retain over 650,000 jobs. This provision was added in the substitute amendment introduced on July 21, 2010. This provision is estimated to cost $505 million over ten years.

 

State Small Business Credit Initiative (SSBCI). The bill provides $1.5 billion in grants to States to support small business lending programs. States will apply for the funds to be used for approved programs that leverage private lenders to extend greater credit to small businesses and manufacturers. The program allows States to build upon successful models for state small business programs, including capital access, loan participation, collateral support, State-run venture capital, and credit guarantee programs. Funds are allocated to the States using formulas based on certain State employment and unemployment rate data. States have nine months to apply for the program. If the state does not apply, the largest municipalities of the states can apply. This provision was increased by $600 million in the substitute amendment introduced on July 21, 2010. This provision is estimated to cost $1.5 billion over ten years.

 

Small Business Lending Fund. The bill authorizes the creation of the Small Business Lending Fund to provide Treasury with the ability to purchase preferred stock and other debt instruments from eligible financial institutions with less than $10 billion in total assets. Eligible institutions include insured depositories, bank and savings and loan holding companies, and certain community development loan funds. Eligible institutions with less than $1 billion in total assets can apply to receive investments of up to five percent of their risk-weighted assets. Eligible institutions between $1 billion and $10 billion in total assets can receive investments of up to three percent of risk-weighted assets. Participating institutions will pay a five percent dividend rate on the preferred stock, but this rate can be reduced to as low as one percent if a bank demonstrates a 10 percent increase in small business lending relative to a baseline set using the four quarters prior to enactment. The dividend rate is increased to seven percent after two years, if the bank does not increase its small business lending. To encourage timely repayment, the rate increases to nine percent after four and a half years. Treasury's authority to make capital investments under the program is terminated one year after the date of enactment. This provision was added in the substitute amendment introduced on July 27, 2010. This provision is estimated to raise $1.1 billion over ten years.

[Guest M. Possart]

Provisions to Encourage Investment

 

Increase of Section 179 Expensing and Expansion to Certain Real Property. Under current law, taxpayers may elect to write-off the costs of certain tangible personal property that is purchased for use in the active conduct of a trade or business in the year of acquisition in lieu of recovering these costs over time through depreciation. For the taxable year beginning in 2010, taxpayers may write-off up to $250,000 of these capital expenditures subject to a phase-out once these capital expenditures exceed $800,000. After 2010, the thresholds revert to $25,000 and $200,000, respectively. This bill would increase the thresholds to $500,000 and $2,000,000 for the taxable years beginning in 2010 and 2011. Within those thresholds, this bill would allow taxpayers to expense up to $250,000 of the cost of qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property. This provision is estimated to cost $2.2 billion over ten years.

 

Extension of Bonus Depreciation. Businesses are allowed to recover the cost of capital expenditures over time according to a depreciation schedule. Congress temporarily allowed businesses to recover the costs of certain capital expenditures made in 2008 and 2009 more quickly than under ordinary depreciation schedules by permitting those businesses to immediately write-off 50 percent of the cost of depreciable property placed in service in those years. This bill extends the additional, first-year 50 percent depreciation for qualifying property purchased and placed in service in 2010. This provision is estimated to cost $5.5 billion over ten years.

 

Special Rule for Long-Term Contract Accounting. This provision decouples bonus depreciation from allocation of contract costs under the percentage of completion accounting method rules for assets with a depreciable life of seven years or less in order to allow contractors that do not complete contracts within the same year in which they are entered into to benefit from bonus depreciation. This provision was added in the substitute amendment introduced on July 21, 2010. This provision is estimated to have no cost over ten years.

[Guest M. Possart]

Provisions to Promote Entrepreneurship

 

Increased Deduction for Start-up Expenditures. Under current law, taxpayers may deduct up to $5,000 in trade or business start-up expenditures. The amount that a business may deduct is reduced by the amount by which start-up expenditures exceed $50,000. Start-up expenditures are defined as expenses paid or incurred in connection with investigating or creating an active trade or business, which would be deductible if paid or incurred in connection with the operation of an existing trade or business. For the taxable year beginning in 2010, this bill would temporarily increase the amount of start-up expenditures that may be deducted to $10,000 subject to a $60,000 phase-out threshold. This provision is estimated to cost $230 million over ten years.

 

Small Business Export Promotion. The Office of the United States Trade Representative (USTR) plays an important role in promoting U.S. exports, and recently increased its focus on small business export promotion in particular. USTR has done so in several respects, including the creation of the position of Assistant USTR for Small Business, Market Access, and Industrial Competitiveness within USTR. This official will help ensure that USTR's trade policy addresses the challenges facing smaller U.S. exporters and promotes global export opportunities for them. The bill authorizes funds for USTR's market access and trade enforcement activities targeted at helping small business increase market access and ensure a level playing field on which to sell their U.S. made goods. This provision has no cost associated with it.

 

Export Promotion Act. The substitute would assist U.S. small and mid-sized businesses that are looking to export their products but do not have the resources or know-how to find new international customers. First, it increases the activities and staffing of the Department of Commerce in carrying out its mission to promote U.S. exports. Second, it authorizes increased funding for export grants available to industry associations and non-profit institutions. Finally, the amendment requires that decisions to fund manufacturing and innovation grants include exporting potential as one of the application considerations. Based on estimates provided by the Department of Commerce, this legislation is projected to create over 43,000 jobs once the funds are appropriated. This provision was added in the substitute amendment introduced on July 27, 2010. This change has no cost associated with it.

 

Enhanced Small Business Trade Opportunities. This provision improves the SBA’s trade and export finance programs and elevates the Office of International Trade within the SBA. It adds Export Finance Specialists to the SBA’s trade counseling programs. It also establishes the State Export Promotion Grant Program (STEP), which would increase the number of small businesses that export. In addition, it improves coordination between federal and state agencies and SBA resource partners. This leverages more than $1 billion in export capitol for small businesses, which will create or save as many as 40,000 – 50,000 jobs in 2010. This provision is estimated to cost $58 million over two years.

 

Improved Small Business Contracting. Removes the red tape and closes loopholes that too often put government work into the hands of multinational corporations instead of Main Street businesses. Increasing contracts to small businesses by just 2 percent can create more than 60,000 jobs. This legislation also provides for a periodic review of small business size standards to ensure that size indicators are consistent with inflation and industry growth of small businesses. It establishes accountability of large business prime contractors for prompt payment to small business subcontractors. This provision is estimated to cost $142 million over two years.

 

Relief for Community Partners. This provision allows SBA to waive or reduce the non-federal share of its funding requirements for up to one year, through fiscal year 2012. It also gives relief to Women’s Business Centers (WBCs) and microloan intermediaries, which provide assistance to underserved communities to start and grow small businesses. The SBA estimates that the microloan program will create or save more than 10,000 jobs in Fiscal Year 2011. This legislation also provides an additional $50 million for the Small Business Development Centers to provide technical assistance to small business owners and entrepreneurs. This provision is estimated to cost $50 million for one year.

[Guest M. Possart]

Provisions to Promote Small Business Fairness

 

Modify Section 6707A Penalty. The bill revises section 6707A of the Internal Revenue Code to make the penalty for failing to disclose a reportable transaction proportionate to the underlying tax savings. The penalty for failure to disclose reportable transactions to the IRS would be set at 75 percent of the tax benefit received. Reportable transactions are defined as investments in transactions that the IRS has identified as listed tax shelters or that have characteristics of tax shelters, including large losses or confidentiality agreements. The minimum penalty under this bill is $10,000 for corporations and $5,000 for individuals, and the maximum penalty is $200,000 for corporations and $100,000 for individuals. The bill also requires the IRS to provide an annual report to the Senate Finance Committee and to the House Ways and Means Committee giving an account of certain tax-shelter related penalties asserted during the year. This provision is estimated to cost $176 million over ten years.

 

Deductibility of Health Insurance for the Purposes of Calculating Self-Employment Tax. Under current law, business owners are not permitted to deduct the cost of health insurance for themselves and their family members for purposes of calculating self-employment tax. This provision would allow business owners to deduct the cost of health insurance incurred in 2010 for themselves and their family members in the calculation of their 2010 self-employment tax. This provision is estimated to cost $1.96 billion over ten years.

 

Enhancements to Small Business Contracting Parity Programs. This provision removes the priority one contracting program has over another, making clear that no single restricted competition program has priority over another. It places the small business contracting programs, HUBZone, 8(a), Service-Disabled Veterans and Women-Owned Businesses on a level playing field when competing for Federal contracts. This provision has no cost associated with it.

 

Improvements to Disaster Recovery to Include Aquaculture. Currently, the SBA excludes aquaculture businesses from receiving SBA Economic Injury Disaster Loans (EIDL). This section would allow SBA, provided it does not duplicate other Federal disaster programs for that disaster, to make economic injury disaster loans to these businesses. This provision has no cost associated with it.

 

Require Federal Agencies to Expand Their Assessments of Economic Effects on Small Businesses. This provision strengthens the Regulatory Flexibility Act by requiring agencies to respond to the SBA Chief Counsel of Advocacy’s comments in the final rule. It also seeks more independence for the Office of Advocacy by mandating a separate line item in the SBA’s annual budget. This provision has no cost associated with it.

 

Remove Cellular Phones from "Listed Property." This provision would "delist" cell phones so their cost can be deducted or depreciated like other business property, without onerous recordkeeping requirements. This provision was added in the substitute amendment introduced on July 21, 2010. This provision is estimated to cost $410 million over ten years.

[Guest alliantgroup]

Although the bill has been held up and may not on the surface look like it provides much, there are two provisions that that will

 

a ) permit thousands of small and medium-sized businesses to take advantage of a host of general business credits – like the R&D Tax Credit, the Work Opportunity Tax Credit and nearly 30 other tax credits -- if the owners are subject to the Alternative Minimum Tax;

 

b ) expand the carryback period for general business credits from one to five years.

 

The AMT fix is a very big deal for the vast majority of small and medium businesses who've been unfairly blocked from taking tax credits that other firms have used for years. It levels the playing field, but more importantly, it will fuel innovation and the creation of more high-paying US jobs, which our economy needs desperately. Likewise, the carryback extension means more savings and investment for companies who are struggling to make ends meet.

[Guest Rick]

http://www.youtube.com/watch?v=Sq7PQbOg5ts

This bill is being lost by Democratic political theater. The majority tries to dictate the will of the minority. Main Street loses out because of hidden additional pork that we cannot afford.

[Guest BlingBling]

You want the real truth. Watch Republican Mitch McConnell stop this job-creating legislation and join Democrats in standing up for small businesses. The "Party of No" was successful once again.

 

[Guest BlingBling]

HEADLINES DECRY GOP OBSTRUCTION

 

AP – Republicans Block Small Business Lending Bill: “Senate Republicans blocked a bill to increase small business lending Thursday, dealing a setback to President Barack Obama's jobs agenda. … Much of the bill had bipartisan support, but Senate Republican leader Mitch McConnell of Kentucky said Democrats were blocking GOP amendments. Reid said Republican demands kept changing. …The vote was 58 to 42, with all 41 Republicans voting to continue the filibuster.” [Link]

 

Reuters – Republicans Block Small Business Lending Plan In Senate: “Senate Republicans on Thursday blocked a $30-billion plan to help community banks boost lending to small businesses, dealing a blow to President Barack Obama's election-year battle to reduce unemployment.” [Link]

 

Bloomberg – Senate Republicans Block Small Business-Lending Bill Sought By Democrats: “Senate Republicans blocked a measure that would cut taxes and ease credit for small businesses… It would have provided $30 billion to banks with less than $10 billion in assets to encourage lending to small businesses. The cost of paying back those capital infusions would decline based on the level of small-business lending by the bank. The aid could spur $300 billion in lending.” [Link]

 

Huffington Post – GOP Filibusters Small Business Bill After Criticizing Dems For Delay: “For several days now, Senate Republicans have ridiculed their Democratic counterparts for prioritizing campaign finance legislation over a bill that would benefit small businesses, arguing that Majority Leader Harry Reid was putting electoral advantages over jobs for everyday people. …But when leadership brought a revised version of the small business bill to the floor on Thursday morning, they were met with united Republican opposition.” [Link]

 

New York Times – Small-Business Bill Falters On Senate Partisanship: “Senate Republicans on Thursday rejected a bill to aid small businesses with expanded loan programs and tax breaks, a procedural blockade that underscored how fiercely determined the party’s leaders are to deny Democrats any further legislative accomplishments before November’s midterm elections.” [Link]

 

Las Vegas Sun (Editorial) – Helping Main Street - Senate Should Approve Legislation That Could Spark Small Businesses’ Growth: “Senate Republicans have taken equally indefensible actions by repeatedly standing in the way of legislation aimed at sparking economic recovery. …They have shown they couldn’t care less about Main Street. Small businesses de-serve much better. At least they have a friend in Senate Majority Leader Harry Reid, the Nevada Democrat who aptly put his finger on why the Senate should pass this legislation.” [Link]

 

 

[Guest Stuart]

We all need to keep in mind that its small busineses around the country that fuel our economic growth....the big companies are all hoarding their cash and not spending....everyone is worried about a double dip recession...Help!

[Guest greenzen]

All the National Banks have ratcheted up their underwriting practices to the point where very few small businesses can get financing. I was hoping this bill would put some grease in the wheels to get lending going again. I for one would love to get a loan to stock my shelves.

[Guest reloadron]

1. Democrats, meanwhile, have added about $1.5 billion in disaster relief for farmers who lost crops in 2009, a measure sponsored by Sen. Blanche Lincoln, D-Ark.

 

 

2. Democrats also wanted to add an amendment to settle long-running class-action lawsuits brought by black farmers and American Indians.

 

 

3. GOP amendments included measures to beef up border security, impose a government spending cap and lower the estate tax, which is scheduled to return next year with a top rate of 55 percent on estates larger than $1 million.

 

 

And this would help small business how? I can not believe we have such a collection of stupid people representing us. Half of this has little to nothing to do with benefits for small business. Its a matter of each promoting their own little agenda of added items.

[Guest Fairfax Democrat]

This bill should have been passed. Political gains, so Americans suffer. Here is Mark Warner on the Senate Antics.

 

It's stunning. I mean, it's like if there ever ought to be a place where there is common ground. Small businesses in my state are dying on the vine. I'm hopeful, but when people scratch their head and say things are kind of crazy up here — case in point.

[Guest Tea Party Patriot]

Senator Scott Brown said the small business lending bill has many positive aspects, but republicans want to improve it with provisions such as tax credits to support research and development.

[Guest ALWAYSRED]

U.S. Senate Republican Leader Mitch McConnell delivered the following statement Thursday regarding Senate consideration of a small business bill:

 

“It takes a lot of effort to make a partisan issue out of a bill that should have broad bipartisan support. I mean, you have to go out of your way to make a small business bill controversial.

 

“But they’ve pulled it off.

 

“Our friends on the other side have outdone themselves. We first got on this bill in late June, and since then, Democrats have set it aside six separate times to move to something else.

 

“So from the beginning this bill clearly wasn’t a priority to them.

 

“Until they realized that they didn’t have anything to talk about when they go home in August.

 

“I think one Democrat senator put it best when he suggested this week that a midterm campaign that revolves around his party’s agenda and that of the White House is a losing proposition for the majority.

 

“He was summing up their strategy on this bill.

 

“They knew they couldn’t run on a record of job-killing taxes, burdensome new regulations, massive government intrusions, and record deficits and debt.

 

“So what do they do — they make an issue where there is none. That’s what this debate is all about.

 

“It was very clear from the beginning there was a path for this bill to pass with a broad bipartisan majority.

 

“Instead, we’re standing here this morning looking at the third version of a bill and we have yet to engage in any substantive amendment process.

 

“They’ve been adding either controversial or completely unrelated matters to this bill — all to avoid any real debate and to avoid voting on Republican amendments.

 

“I mean this thing now has over a billion dollars in agriculture spending in it.

 

“We’ve been on this bill since June 29th, and Republicans have asked for a grand total of eight. amendments.

 

“That’s two votes per week, Mr. President.

 

“Not much to ask.

 

“So it’s obvious what’s going on — they wanted to make this an issue so they have something to talk about other than failed economic policies.

[Guest greenzen]

I think the Wall Street Journal really spelled out the current status of business lending.

 

http://online.wsj.com/article/SB10001424052748704532204575397683409229338.html

 

Pinnacle Bank made just two loans through the Small Business Administration in 2007 and 2008. So far this year, the Orange City, Fla., bank's total is nine, to borrowers from an auto dealer to a computer-equipment wholesaler to a bakery.

 

"The SBA program is the only way we can continue to lend right now," says David Bridgeman, president of Pinnacle, which has two branches and assets of $213 million, including about 600 loans. For many of the $3.4 million in loans Pinnacle made through the SBA in 2010, the bank has to set aside capital against only the 10% slice that isn't guaranteed by the U.S. government.

 

Across the nation, many banks have turned to the SBA's so-called 7(a) program to help unfreeze credit. Nearly 3,000 lenders have made 7(a) loans in the current fiscal year, up 21% from 2008.

 

The 7(a) program, the SBA's largest loan program, is hardly a cure for the credit shortage affecting many borrowers. The agency is involved in less than 10% of all small-business loans, and some banks won't participate because of red tape. Lenders must follow the SBA's rules when making 7(a) loans, which can be used for working capital, fixed assets and other business expenses. The term of the loan can be as long as 25 years.

 

Last year, Congress temporarily sweetened the 7(a) program by increasing the SBA guarantee to 90% of any given loan from as little as 75% previously. Lawmakers waived fees costing borrowers as much as 3.5% of the loan amount, as well as costs charged in a separate SBA program providing structured financing for fixed assets.

 

But the sweetened program is now in limbo, drawing complaints from borrowers and lenders, as lawmakers haggle over broader small-business legislation.

[Guest Ohio Tea Party]

The American People are fed up with politicians that do want not pass a bill that can create jobs for everybody. We need to root out all fat cat politicians who oppose helping Main Street.

[Guest greenzen]

It's all about November now. Today's politician cares less about about America's outcome and more about political party outcome.

 

http://www.miamiherald.com/2010/08/05/1762413/small-business-bill-appears-to.html

 

Republican senators unanimously blocked the legislation a week ago, preventing an up-or-down vote that could have given the Democratic majority a political victory going into the August recess. In response, President Barack Obama gave a speech Monday urging the Senate to pass the bill.

 

Senate Majority Leader Harry Reid has vowed to try again this week, but it's uncertain whether the vote will happen.

 

Observers say the legislation could have sweeping effects in North Carolina.

 

More than 85 percent of companies in the state have fewer than 100 employees, said Scott Daugherty, N.C. small-business commissioner and executive director of the Small Business and Technology Center.

 

"We are substantially a state of small companies," he said.

 

The Economic Policy Institute recently calculated that there are nearly five job seekers for every open job. The unemployment rate in North Carolina remains above 10 percent.

[Guest Anne]

If the bill had gone through lenders would have had an good incentive to make loans to small businesses and would have received a discount on the interest rate that they would have to pay to the federal government for borrowing the money. Why did Republicans and Democrats have to add pork attachments that temporarily stalled the bill I will never understand.

[Guest Human]

http://newshawksreview.com/banks-are-lending-to-small-business-despite-fdic-closings/1106/

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If the bill had gone through lenders would have had an good incentive to make loans to small businesses and would have received a discount on the interest rate that they would have to pay to the federal government for borrowing the money. Why did Republicans and Democrats have to add pork attachments that temporarily stalled the bill I will never understand.

[Guest Human]

http://www.businessinsider.com/why-increasing-lending-to-small-businesses-is-a-horrible-idea-for-job-creation-2010-8

 

The democrats are just playing politics with it, and I'm fine with it cause I left the U.S. market when this administration took control.

 

[Like I said in here before, you folks "Democrats" can play to your hearts content.

 

One of the major set backs to folks going off the major isp's is that the information is not concentrated in just a few areas any more.]

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http://newshawksreview.com/banks-are-lending-to-small-business-despite-fdic-closings/1106/

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[Guest Rebecca]

You place party politics above country Human. If you actually cared about the USA you would invest in it. Instead, you invest in the future of a foreign country to make a fast buck. That is not American, that is just plain greed.

[Guest dErEK]

There are many too many Republicrats "for sale" that use their influence for personal profit and foreign interests. I use music to spread the word against these political rats. Props to my brothers and sisters fighting it.

 

[Guest LAW]

http://newshawksreview.com/banks-are-lending-to-small-business-despite-fdic-closings/1106/

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Bank data show that small businesses, which normally seek loans of less than $1 million, are still having trouble getting credit. For small companies, total outstanding credit dropped to $663 billion in the first quarter of 2010 from nearly $700 billion in mid-2008, according to quarterly regulatory filings. The share of business owners who say they cannot get adequate financing rose to 41 percent, according to a National Small Business Assn. (NSBA) survey released in July, up from 39 percent in December and 22 percent two years ago.

 

http://www.businessweek.com/magazine/content/10_33/b4191024659581.htm

[Guest DCpages Staff]

On Monday, September 13th, Congressman Jim Moran will be hosting Access to Capital: A Small Business Lending Event, a half day conference aimed at supporting and fostering the growth of Northern Virginia’s small businesses. Access to Capital will bring together local banks, entrepreneurs and small business owners to exchange information and discuss lending criteria and the types of loans currently available.

 

Monday, September 13th

Hilton McLean Tysons Corner

7920 Jones Branch Drive, McLean VA

 

8:30 a.m. Registration and Networking

9:00 a.m. Remarks by Congressman Moran

9:15 a.m. Robert Carpenter, Lender Relations Specialist, U.S. Small Business Administration

9:45 a.m. Panel Members and Opening Statements

 

* Bruce Whitehurst, President of the Virginia Bankers Association

* Sally Robertson, President of the Business Finance Group

* E. Hunt Burke, Burke & Herbert Bank Chairman & CEO

 

10:30 a.m. Meet & Greet/Networking with Area Lenders

 

This event is free and open to the public. To confirm your attendance, please email clare.mcintyre@mail.house.gov or fax to 703-922-9436. If you have any questions, contact Clare McIntyre in the Congressman's Alexandria District Office at (202) 225-1660.

[Guest LAW]

August 19, 2010

Statement by the President on the Economy

South Driveway

 

12:22 P.M. EDT

 

THE PRESIDENT: Good morning, everybody. For the last several months, I have been urging Congress to pass a jobs bill that will do two big things for small businesses -- cut their taxes and make loans more available.

 

I have been adamant about this because small businesses are the backbone of our economy. They create two out of every three new jobs in this country. And while a lot of big businesses and big banks have started recovering from this recession, small businesses and community banks that loan to small businesses have been lagging behind. They need help. And if we want this economy to create more jobs more quickly, we need to help them.

A report yesterday from the Labor Department underscores why this is so critical. In the final few months of last year, small businesses with fewer than 50 employees accounted for more than 60 percent of the job losses in America -- more than 60 percent. These are the businesses that usually create most of the jobs in this country. And this report, combined with this morning’s news that unemployment claims rose again, compels us to act. It compels us to stand with the small businessmen and women who are trying to grow their companies and make payroll and hire new workers.

The jobs bill that is stalled in Congress would completely eliminate taxes on key investments in small businesses. It would allow small business owners to write off more expenses. And it would make it easier for community banks to do more lending to small businesses, while allowing small firms to take out larger SBA loans with fewer fees, which countless entrepreneurs have told me would make a big difference in their companies. I’d also like to point out this legislation is fully paid for and will not add one single dime to our deficit.

 

So this is a bill that makes sense, and normally we would expect Democrats and Republicans to join together. Unfortunately, a partisan minority in the Senate so far has refused to allow this jobs bill to come up for a vote.

 

Now, I recognize that there are times when Democrats and Republicans have legitimate differences rooted in different views about what’s best for this country. There are times when good people disagree in good faith. But this is not one of those times. This small business jobs bill is based on ideas both Democrat and Republican. In fact, many provisions in the bill were actually authored by Republican senators. It has been praised as being good for small business by groups like the Chamber of Commerce and the National Federation of Independent Businesses.

 

A majority of senators are in favor of the bill and yet the obstruction continues. It’s obstruction that stands in the way of small business owners getting the loans and the tax cuts that they need to prosper. It’s obstruction that defies common sense.

 

So let me just make this simple point. There will be plenty of time between now and November to play politics. But the small business owners I met with this week, the ones that I’ve met with across the country this year, they don’t have time for political games. They’re not interested in what’s best for a political party. They’re interested in what’s best for the country.

When Congress reconvenes, this jobs bill will be the first business out of the gate. And the Senate Republican leadership needs to stop its efforts to block it. Let’s put aside the partisanship for awhile and work together for small businesses, for employees, and the communities that depend on them across this great country.

 

Thank you very much.

 

END

12:26 P.M. EDT