Before leaving for a vacation this week, President Obama called on members of Congress to move forward with the Senate Small Business Jobs and Credit Act when they return from August recess.
The bill, which has been blocked from a vote in the Senate, would allow the creation of a $30 billion lending fund to be led by the Treasury Department. The program would give community banks access to capital to then loan to small businesses.
"When Congress reconvenes, this jobs bill will be the first business out of the gate," Obama said in his remarks at the White House on Thursday.
Sponsored by Senate Committee on Small Business and Entrepreneurship Chair Sen. Mary Landrieu, D-La., the bill would increase loan limits to small businesses, stimulate investment and promote entrepreneurship.
Currently, small businesses may exclude 50 percent of the gain from selling certain small business stock acquired at original issues and held for more than five years. The Small Business Jobs and Credit Act would temporarily increase the exclusion amount to 100 percent for small business stock that is collected after the bill's enactment and held for more than five years.
The bill would also temporarily increase the amount of deductible start-up expenditures from $5,000 to $10,000, subject to a $60,000 phase-out threshold.
Under the bill's SBA loan limit provision, the limits for 7(a) loans—the most commonly used business loan, which guarantees a portion of loans provided by commercial lenders—will increase from $2 million to $5 million. Limits for a 504 loan—a long-term financing tool for economic development within a community—will increase from $1.5 million to $5.5 million. Limits for microloans, which are designed to make small loans to small businesses, will jump from $35,000 to $50,000.
"Everyone knows that small businesses are the engine that moves the American economy," said Justin Nelson, NGLCC co-founder and president. "We look forward to Congress working with President Obama to ensure the Senate Small Jobs Act is passed so that our businesses can continue to grow and compete in this global economy."
For more details on the Small Business Jobs and Credit Act, download the full summary here.
Call the U.S. Capitol Switchboard at 202-224-3121 and ask your Senators to support the Senate Small Business Jobs Act.
