Almost 1 Million Small Businesses in
Pennsylvania Will Reap the Benefits of Legislation
WASHINGTON - Today, Congressman Paul
E. Kanjorski (PA-11) voted for H.R. 5297, the Small
Business Jobs Act, which passed in the House by a vote of 237-187. The legislation is expected to create 500,000
new jobs throughout the country by helping to encourage growth and hiring at
small businesses that are struggling during these difficult economic
times. The legislation will specifically
impact almost one million small businesses in Pennsylvania, according the U.S.
Small Business Administration (SBA) by enabling community banks to lend to
financially stressed small businesses, which will help them expand and hire
more employees. It will also provide
needed tax cuts for small businesses to help them use that capital to further
their operations and grow. This
legislation is fully paid for and will reduce the deficit.
"Too many small businesses throughout Northeastern
Pennsylvania and the country are struggling," said Congressman Kanjorski. "Many local business owners have told me that
they are unable to get the loans they need to continue and expand their
operations. As a result, their
businesses remain stagnant and they are unable to grow and hire. My priority is to boost our economy, create
jobs, and encourage small business growth.
Our nation's community banks are the primary source of funds used by the
small businesses which are an essential component to a thriving economy. By lending an additional $30 billion to
community banks, the federal government is working to ensure those banks are
able to lend to small businesses, so that those businesses can then grow and
hire more employees."
H.R.
5297 works to create jobs and encourage growth and investment in small
businesses by:
- Expanding the
availability of credit to small businesses through a lending fund
The bill creates a $30 billion Small Business Lending Fund
to provide small, community banks with needed capital to help increase lending
to small business. During these
difficult economic times, many banks have curtailed lending and small
businesses are unable to access the capital they need to maintain their
operations, grow, and hire more employees.
The lending fund will help rectify this problem.
- Increasing
investments in small businesses through grants and SBA loans
The bill invests $1.5 billion in grants to support $15
billion in new small business lending through already successful state
programs. It also expands access to SBA
loans by eliminating fees on many loans and raises the cap on loan limits for
many loans from $2 million to $5 million.
It increases government guarantees on many loans from 75 percent to 90
percent through the end of the year, reducing the risk for banks to lend to
small businesses because those loans are backed by the government. Additionally, the bill increases microloan
limits from $35,000 to $50,000.
- Encouraging
small business investments, growth, and hiring through tax cuts
The legislation provides tax cuts to help give small
business more cash so that they grow and hire more employees by doubling and
enhancing small business expensing for write offs such as equipment and
machinery in 2010 and 2011, and allowing small businesses to write off 50
percent of the cost for new equipment investments in 2010.
- Promoting
entrepreneurship and the creation of more small businesses through tax
cuts
The bill doubles the tax deduction for start-up
expenditures for new small businesses to $10,000 and creates tools to help
small businesses gain access to the international market.
- Advancing fair
competition for small businesses
The bill improves tax fairness by preventing small
business from incurring significant costs from taxes aimed at large
corporations, allows self-employed taxpayers to deduct health costs for payroll
tax purposes, and closes loopholes that too often send government contracts to
multinational corporations rather than small businesses.
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