The bill sets up a lending fund for small businesses and is considered to be a significant legislative win for the President and his fellow Democrats who are trying to show unhappy voters they are serious about boosting the sluggish economy to create [image-nocss] jobs.
In a statement on final passage of the bill, the President said, "The small business jobs bill passed today will help provide loans and cut taxes for millions of small business owners without adding a dime to our nation's deficit. After months of partisan obstruction and needless delay, I'm grateful that Democrats and a few Republicans came together to support this common-sense plan to put Americans back to work. I look forward to signing the bill on Monday."
Democrats say the bill is needed because small businesses have had a hard time obtaining loans since the financial crisis that began in December 2007. They estimate the incentives could provide up to $300 billion in new small-business credit over the coming years and create 500,000 new jobs.
"This bill is critical to allowing small businesses to grow," said House Democratic Leader Steny Hoyer (D-Md.).
Republicans characterized the bill as a junior version of the unpopular Wall Street bank rescue effort and blocked it in the Senate for weeks. The Senate was able to pass it last week after two retiring Republicans broke ranks and voted to end a filibuster on the bill, which includes an additional $12 billion in tax breaks for small businesses.
Republicans blame government policies for creating uncertainty in the business community, said Reuters.
"I admit the credit problems are real," said Representative Charles Boustany (R-La.). "Small businesses are struggling with it, but why is that? It's because there is uncertainty in the economic climate."
He said some of the revenue raising provisions in the bill, including one that would expand tax reporting requirements for landlords, contribute to the uncertainty.
The bill, backed by industry groups, would create a $30 billion fund that the government would invest in independent community banks to encourage lending to small firms.
It would also exclude from taxes all capital gains on sales of small-business stock, and accelerate tax writeoffs for purchases of equipment and other property.
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