President Obama hosted award-winning small business owners from around the country at the White House yesterday and urged Congress to pass the Small Business Jobs Package. Included are lending initiatives for small businesses and tax incentives to spark growth.
“I’m calling on Congress to pass small business jobs— a small business jobs package as soon as possible. This legislation should ensure that creditworthy small business owners can get the capital they need to expand and create jobs,” Obama said in his remarks. “It should include needed tax relief, like our proposal to completely eliminate capital gains taxes for those making key long-term investments in small businesses. It should include expansions of vital Small Business Administration loan programs that are needed now more than ever. And it should include two important lending initiatives that I recently sent to Congress.”
The first initiative is the $30 billion Small Business Lending Fund the President called for in his State of the Union address. “This fund would target only small community and neighborhood banks, and it would help these institutions increase lending to small businesses,” the President said.
The second initiative is a new state small business credit program that the Obama administration proposed. "It’s an initiative that will help expand private lending for small businesses and manufacturers at a time when budget shortfalls are leading states to cut back on vitally important lending programs,” Obama said.
Obama added that he was pleased that elements of this small business jobs package have already passed the House Financial Services Committee and with Senate interest in the program. “I urge both chambers to act on these proposals as soon as possible,” he said. “This shouldn’t be a partisan issue. This is not a Republican issue or a Democratic issue. This should not be an issue about big government versus small government. This is an issue that involves putting government on the side of small business owners who create most of the jobs in this country. It’s about giving them tax credits and loans and tax cuts so they can keep growing and keep hiring. It’s about unleashing the great power of our economy and the ingenuity of our people.”
Key elements in the program— many administered by the Small Business Administration (SBA)— now include:
I. New Administration Lending Initiatives to Provide Credit to Small Businesses
* A New $30 Billion Small Business Lending Fund to Support Community and Smaller Banks That Lend to Small Businesses in Their Communities
* A State Small Business Credit Initiative to Strengthen Innovative State Lending Programs—At a Time When Many are Struggle to Meet Increased Demand in the Face of State Budget Shortfalls
II. Tax Incentives for Small Businesses to Invest and Grow
* Zero Capital Gains Taxes on Small Business Investments
* Extending A Provision that Expands Small Businesses’ Ability to Immediately Expense New Equipment Investments
* “Bonus Depreciation” to Provide Incentives for Businesses to Invest in Plant and Equipment
III. Enhancement of SBA Programs
* Permanently Increasing Maximum Loan Sizes for SBA Loan Programs
* Expanding Access to Commercial Real Estate Refinancing Under the 504 Program