Obama Signs $30 Billion Small Business Lending Bill
Washington — President Barack Obama signed legislation that will cut taxes and provide credit help for small businesses, calling it an essential step for job growth in a slow economy.
Small businesses “have borne the greatest brunt of this recession” because of lower demand from consumers and less available credit, Obama said.
Brad Ohlemacher, president of Elyria-based EMC Precision Machining, sat in the first row as Obama signed the bill. His 86-year-old family-owned manufacturing business was among the businesses Obama visited earlier this year.
For Ohlemacher, the new legislation will allow his firm to be able to afford to buy capital equipment that starts at $350,000.
“For my company personally, it allows me to be more competitive, win more work, grow my business and hire more people,” Ohlemacher said.
The bill had been delayed for months, blocked in the Senate by Republicans. Most in the GOP objected to the loan fund, comparing it to the 2008 financial industry bailout and arguing that it would encourage banks to make loans to risky borrowers. Two GOP senators, George Voinovich of Ohio and George LeMieux of Florida, helped Democrats break the filibuster this month — and the bill passed.
The bill creates a $30 billion government fund to help encourage lending to small businesses, many of which have been having difficulty securing bank loans and credit. The fund will be available to community banks, which could use the money to leverage billions more in loans.
The legislation also includes about $12 billion in tax breaks for small business — eight separate tax cuts that take effect Monday. One such provision increases to $500,000 the amount of investments that businesses would be allowed to write off this year and next.
Anita Campbell, CEO of Medina-based Small Business Trends, said a lot of small business owners are pleased about loan changes and tax breaks, but most are not in a position to make expenditures or take on more debt.
Campbell, who runs an online media business that provides content for small business owners, said the general consensus among her Twitter and Facebook networks is that small business owners are more interested in generating new business and getting paid by customers.
“Government can only create the conditions that make it easier or harder for small businesses to create jobs,” she said. “In the end, it’s up to businesses to create jobs and hire employees.” The measure also gives a boost to some Small Business Administration loan programs.
View the original article from Cleveland.com
