Bill Now Heads to President Obama for Signature
Washington, DC – Congressman John D. Dingell (D-MI15) made the following remarks on the House floor this evening before he voted for the Senate amendment to H.R. 5297, the Small Business Lending Fund Act of 2010. The House passed the bill, 237-187. It now goes to President Obama for his signature.
“Madam Speaker: I am pleased to rise in support of the Senate amendment to H.R. 5297, the Small Business Lending Fund Act of 2010. I want to commend the Chairman of the Financial Services Committee, Congressman Barney Frank of Massachusetts for his leadership on this legislation.
“This legislation should have come before us much sooner but my Republican colleagues across the Capitol decided to do what was politically advantageous for them rather than do what was right for the American people. Fortunately, we have the opportunity to pass this bill today and support the needs of our small businesses, create jobs, and continue our economic recovery. The legislation will provide small business with access to capital, spur investment, and promote entrepreneurship through a number of tax cuts to small business, a new lending initiative with community banks, and enhancements to existing programs that arm states with the tools to assist small businesses with their distinct needs, among other things.
“Throughout the two-year recession, we saw banks stop providing credit, and small businesses shedding jobs and closing their doors. Though our economy would undoubtedly be in far worse shape had we not passed the American Recovery and Reinvestment Act, banks are still being overly cautious about lending as our economy recovers. Thus, today we will pass a comprehensive small business job creation measure to allow small businesses to lead this recovery – as they have aptly done in the past.
“Indeed, the Small Business Lending Fund Act has many provisions to promote job creation for everyday Americans and grow the economy. For example, to provide access to capital, the bill includes a $30 billion lending fund for small and medium size banks to leverage $300 billion in lending, a $1.5 billion state small business credit initiative to assist state capital access programs – a provision I helped write with my colleagues from Michigan, Congressman Gary Peters (D-MI09) and Congressman Sander Levin (D-MI12), and small business tax break that allows 100 percent of the capital gains from certain small business stock to be excluded from taxation. To encourage investment, the bill includes a tax break for small businesses to allow them to write-off half of the cost of new equipment placed in service in 2010. And to promote entrepreneurship, the legislation doubles to $10,000 the tax deduction for start-up expenditures for entrepreneurs looking to launch a new venture. I am also particularly pleased that the bill will increase the maximum amount – from $2 million to $5 million – the Small Business Administration will guarantee for floorplan financing loans to auto dealers, which will help these economic pillars of our communities recover and put Americans back to work.
“Madam Speaker: Main Street Americans have had to wait for too long for this important bill. I am pleased to support it and urge my colleagues to do the same.”
The bill is expected to create 500,000 jobs. It is fully paid for over 10 years and will not add to the deficit. Only one Republican voted for the bill. Republican Members talk about helping small business owners, but before today, they had voted against seven of the eight small business tax cuts brought up during the 111th Congress (H.R. 1, 2009 Vote No. 70; H.R. 3590, 2010 Vote No. 165; H.R. 2847, 2010 Vote No. 90). When given the chance to vote against tax breaks that allow corporations to ship American jobs overseas, GOP members voted overwhelmingly to protect corporations. They have also voted against eliminating the small business “1099” reporting requirements, even as they say want to end them (H.R. 5982, 2010 Vote No.514).
To learn more about the bill, click here.
