WASHINGTON -- The House passed two bills that would provide community banks with cheap capital to increase lending to small businesses and give investors a tax break for purchasing stock in small corporations.
The two bills, however, face an uncertain future in the increasingly cost-conscious Senate.
The Small Business Jobs and Credit Act, which the House passed June 17 on a 241-182 vote, would create a $30 billion fund that banks with less than $10 billion in assets could tap. The bill includes incentives for banks to use this money to increase lending to small businesses; the more loans they make to small firms, the lower the dividend rate they would pay the government for this capital. Banks also would have to submit a plan on how they would use the capital to increase small-business lending.
To read the full, original article click on this link: Bills aim to give small businesses more capital - Phoenix Business Journal
Author: Kent Hoover
