Statements on Passage of Small Business Bill

The inbox received a number of statements on final passage of the small business bill.

Pres. Obama:

The small business jobs bill passed today will help provide loans and cut taxes for millions of small business owners without adding a dime to our nation’s deficit. After months of partisan obstruction and needless delay, I’m grateful that Democrats and a few Republicans came together to support this common-sense plan to put Americans back to work. I look forward to signing the bill on Monday.

Congresswoman Allyson Schwartz (D-13)

U.S. Rep. Allyson Schwartz voted for legislation today that will boost lending for small businesses and provide targeted tax relief so businesses can expand, hire and fuel our economy. The Small Business Lending Fund Act passed by the House today offers eight new tax incentives to small businesses, closes tax loopholes that reward corporations that ship jobs overseas, and is expected to create 500,000 jobs by encouraging the development of small businesses.

“Small businesses are the backbone of our economy and with the right tools they can create a stronger business climate that encourages growth, innovation and job creation,” Schwartz said. “With increased access to capital and new tax cuts, our nation’s small businesses will be able to put more Americans back to work and help build long-term economic growth.”

The Small Business Lending Fund Act will help America’s 27 million small businesses create new jobs with $12 billion in tax cuts. It will make local businesses more competitive with big corporations by leveraging up to $300 billion in private sector lending for small businesses, along with state grants for small business lending.

The legislation takes another step to end job outsourcing by ending tax incentives for companies that ship jobs overseas.

Joe Sestak, current congressman from 7th district, candidate for Senate

U.S. Senate candidate Joe Sestak today hailed final passage of the Small Business Jobs Act, a bill that will provide $12 billion in tax credits for small businesses, increase access to capital, and create half a million jobs. The small business legislation had been stalled in the Senate for months, having initially passed the House with Admiral Sestak's support on October 29 and again on June 17. Following today's final vote by the House, the measure goes to the White House to await President Obama's signature.

"We need to put people back to work and get our economy moving by investing in small businesses and the middle class," said Joe. "This bill is an important first step. Working families are looking for leadership, not obstruction. Pennsylvania deserves a senator who will place the middle class ahead of Wall Street, not one who's only interested in standing up for big business and the super-rich."

As Vice Chairman of the House Small Business, Admiral Sestak has long been a leading advocate for small business owners and employees. He understands that small businesses create 80 percent of all new jobs and employ 99 percent of the private sector workforce.

That's why he has been a strong supporter of this legislation, which will reward those who invest in small businesses and help entrepreneurs compete with large businesses. It's also why he has proposed an additional small business tax credit that could create 5 million jobs in just 2 years, along with a significant package of investment incentives and loan guarantees that will help jumpstart growth.

Yet, despite the clear benefits of this legislation for small businesses and those who want to work, Congressman Toomey remains silent about the bill, even in the face of bipartisan support.

"It's clear that Congressman Toomey is more committed to his extreme ideology than to working families in Pennsylvania," said Sestak campaign spokesman Jonathon Dworkin. "He's shown that he can always be counted on to support Wall Street at the expense of the middle class. But he refuses to reach across the aisle and work with Democrats and even moderate Republicans in support of tax breaks for small businesses. He just doesn't seem to understand ordinary Pennsylvanians."

In the past, Congressman Toomey has opposed tax credits for small businesses and voted to provide $43 billion in incentives for companies that ship American jobs overseas. He voted to slash the Small Business Administration budget in half, all the while defending $1.6 billion in unmerited bonuses for bailed-out executives and supporting at least $650 billion in deficit spending to extend tax breaks for the super-rich.

"Toomey's Republican colleagues held up the important provisions of this bill twice - in October and again in June. Without these actions, the fee elimination and expanded loan guarantees would expire and the vital tax cuts would be obstructed, and the job creation benefits will not materialize," said Dworkin. "If he was in the Senate, Toomey's voting record indicates he'd be its second-most conservative member - so we can only guess how much longer he'd delay this essential bill. He's so eager to join in the obstructionism that he's falsely claimed to have filibustered a different bill on the House floor - despite the fact that such a procedure doesn't even exist in the House. We don't need more obstructionism and blind ideology. We need real, practical solutions."

Congressman Paul Kanjorski:

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.