WASHINGTON- Today, U.S. Senator Debbie Stabenow announced Senate passage of important legislation to help small businesses create jobs. The Small Business Jobs Act cuts taxes for small businesses, increases access to capital, and helps small companies sell their products overseas. Over the past 15 years, small businesses have created approximately 12 million, or two-thirds, of America’s new jobs. 

“The best way to fix our economy is to create jobs, and the best way to create jobs is to help small businesses,” said Stabenow. “Everywhere I go in Michigan, I hear from small business owners who are trying to get loans to expand their business, export their products overseas, and hire more workers. This bill will help Michigan businesses do all three.”

Small businesses historically have been hardest-hit during recessions, and the current recession is no exception. Over the past two years, small firms have accounted for the majority of net job losses.

The Small Business Jobs Act creates a new small business lending fund to provide $30 billion to partner with community banks to increase small business lending. This funding could support an estimated $300 billion in new lending, creating approximately 500,000 jobs nationwide. Working with Senator Levin and members of the Michigan delegation, Senator Stabenow helped create a $1.5 billion fund to increase small business lending through already-successful State programs, like the Michigan Collateral Support Program, to help reduce risk for lenders who make loans to small businesses.

The Small Business Jobs Act cuts taxes for small businesses so business owners can free up capital to make new investments and create jobs. This legislation completely eliminates the capital gains tax on small business stock and extends a Recovery Act provision that allows businesses of any size to immediately write off 50 percent of their qualifying investments. This bill also increases the loan limits for three types of Small Business Administration loans. The Small Business Administration estimates that this will increase small business lending by $5 billion in the first year.

Finally, this legislation gives small business the tools they need to sell their products overseas and create jobs.

For a complete summary of the Small Business Jobs Act of 2010 please visit Senator Stabenow’s website at: http://stabenow.senate.gov .

— 30 —