After months of Republican resistance, the Senate approved legislation to aid small businesses. The president called the Republicans to cease the “blockade” of the new legislation, calling their resistance a hindrance to growth.
In a vote of 61-37, the Senate ended the debate on aid provided for small businesses. The legislation provides a $30 billion lending fund and about a $12 billion tax relief for small businesses.
Since economic recovery is still slow, the Obama Administration strongly supported the bill, hoping it would provide a much-needed jolt to the economy. The bill was designed to aid growth in small businesses. President Obama stated, “This is a bill that would cut taxes and help provide loans to millions of small-business owners, who create most of the new jobs in this country,” he also added, “Small businesses across the country have been waiting for Washington to act on this bill for far too long.”
The new legislation will provide a new $30 billion loan fund, managed by the Treasury Department. Criteria within the bill will allow increased availability of funds for financing to qualified community banks.
The stipulation requires the banks to extend new loans to small businesses. Many of these small businesses have faced obstacles receiving loans during the financial downturn. Democrats claimed that this legislation would open the door for as many as 700,000 new jobs.
Thanks to ‘Sen. George V. Voinovich” (R-Ohio) who joined Democrats to support the small-business relief legislation the very long debates were finally closed.
Aiming for changes, some House Democrats require another round of votes to achieve this type of change. The White House and Democratic leaders appear to be eager to send the bill to Mr. Obama for his signature, given that the next election season is still unpredictable.