WEST PALM BEACH — — Community banks would get an injection of $30 billion to be used exclusively for loans to small businesses under a bill being pushed by U.S. Sen. George LeMieux.
Under the Small Business Lending Act, community banks with assets of at least $10 billion would be eligible to receive federal money to funnel to small businesses, LeMieux said in an interview with "The Palm Beach Post" editorial board on Monday.
To avoid banks from hoarding the money rather than lending it — a problem that occurred in the federal bailout — LeMieux said banks would pay a higher yield if loans were not made within two years.
LeMieux, a Republican, sponsored the bill with Sen. Mary Landrieu, D-La. The bill is stalled in the Senate but LeMieux expects the bipartisan bill to pass before he leaves office this year.
Gov. Charlie Crist last year appointed LeMieux — a former top aide — to fill a Senate vacancy that Crist is now running for as an independent. Because Crist left the Republican Party, LeMieux is supporting Republican Marco Rubio in the race.
LeMieux commented on several issues, including the oil spill in the Gulf of Mexico.
He said disagreement within the Democratic Party has held up oil spill legislation but he opposes the Democrats' proposed bill that would remove the $75 million cap on liability for damages caused by offshore oil drillers.
"We should do something, but if we have an unlimited hammer to use against oil companies, that will only help big operators like BP," Lemieux said. "I think we should go after profits instead."
Also on Monday, LeMieux spoke to the Chamber of Commerce of the Palm Beaches in West Palm Beach and visited the Scripps Research Institute in Jupiter.