small business bill passed with two Senate Republicans who defected

Those who understand Congress expected lawmakers to succeed in passing a small business bill before the This falls midterm elections. Party lines were crossed as Democrats got sufficient votes by two Republican senators wishing to get re-elected. After a summer of partisan bickering, the Senate passed a small business bill Thursday. Credit is easier to access for many with the legislation that should also give tax relief to smaller businesses, allowing them to create more jobs. The House is expected to move the plan fast, although it hasn’t gotten there yet.

Small business lending and tax breaks

The small business bill that finally passed the U.S. Senate Thursday features the creation of a $30 billion lending fund directed to regional banks for small business lending. Republicans called the fund another taxpayer bailout like the Troubled Asset Relief Program. However the Wall Street Journal reports that unlike TARP, banks really volunteer to participate in the new small business lending program. Interest rates for banks to charged are being determined. This will happen by evaluating how much the financial institution is willing to increase small company lending. All companies that purchased new equipment in 2010 can write-off 50 percent of it right away which is part of the $12 billion in business tax breaks the small business bill has in it. The amount of new investment that smaller businesses are allowed to expense in 2010 and 2011 will double to $500,000.

Principle based votes happen with retiring Republicans

The House passed a version of the small business bill earlier this year. The National Federation of Independent Business and the U.S. Chamber of Commerce were both expected to support the plan. Of course, instead they have chosen to Use the legislation to weaken the health care reform law, reports the Los Angeles Times. Republicans filibustered the small business bill in July, demanding to add amendments unrelated to the objectives of the legislation. To protest the delays, House members had a sit-in at the Senate chamber. Finally months of partisan gridlock were overcome by Republicans George LeMieux of Florida and George Voinovich of Ohio, senators who are not seeking re-election. They joined 57 Democrats and two independents to pass the measure 61-38.

Additional reading

Wall Street Journal

online.wsj.com/article/SB10001424052748703440604575495882236157048.html

Los Angeles times

latimes.com/news/nationworld/nation/la-pn-small-business-bill-20100917,,2992847.story