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Congress Moves Forward With a Bill to Increase Small Business Lending

June 29, 2010 - by Donny Shaw

As many of you out there are painfully aware, congressional Democrats have been been struggling for weeks to pass an extension of unemployment insurance payments for the millions of people who have lost their jobs in the economic crisis. Republicans have blocked the UI bills repeatedly in the Senate over the past month and did so again today in the House. But between their failing votes on extending the UI lifeline, the Democrats have been having more success with a bill that is designed to actually stimulate the jobs market. The “State Small Business and Credit Initiative Act of 2010” (H.R. 5297) passed the House on June 17 by a vote of 413-0. Today, the Senate voted to break a Republican filibuster of the bill by a vote of 66-33.

The House Majority Whip provides this summary of the bill:

Legislation creates three separate programs designed to increase small business lending and increase jobs:

  • The Small Business Loan Fund Act in Title I creates a small business loan fund that is designed to boost bank lending to small businesses struggling to gain access to credit due to the financial crisis.  The legislation will establish a $30 billion fund to boost lending to small businesses looking to hire and expand their operations by providing additional capital to community banks.
  • The State Small Business Credit Initiative Program provides $2 billion in funding for new or existing state lending programs.  These programs already exist in around thirty states, and use small amounts of public dollars to generate substantial private bank financing.  By supporting existing expertise in states around the country and using an easy to replicate model, this program will be able to quickly increase small business lending and create jobs.
  • This program would establish a new program under the purview of the Small Business Administration (SBA) to provide $1 billion in financing to support early stage small businesses in the form of true equity financing.  This program has twice passed the House of Representatives, in the Small Business Financing and Investment Act – H.R. 3854 – and again in the Small Business Early Stage Investment Act of 2009 – H.R. 3738, with strong bipartisan support.

The bill would limit lending to banks with less than $10 billion in assets, which means it would restrict the biggest 75 or so U.S. banks from accessing the fund. To give you an idea the bank sizes were talking about here, Bank of America holds about $2.3 trillion in assets, Fifth Third Bank holds about $112 billion, and City National Bank of Los Angeles holds about $20 billion. Easthampton Savings Bank, my community bank that has about 10 branches in my region of Wetsern Massachusetts, holds a little over $800 million. In addition to the $10 billion cap, the bill specifies that banks with less than $1 billion in assets are eligible to borrow more from the fund (factored relatively as a % of assets) than banks falling within the $1-$10 billion category.

According to the bill text, in order to get loans from the fund, banks would have to provide the Secretary of the Small Business Lending Fund “a small business lending plan describing how the applicant’s business strategy and operating goals will allow it to address the needs of small businesses in the areas it serves, as well as a plan to provide linguistically and culturally appropriate outreach, where appropriate.” The bill also spells out 9 items that the Secretary of the fund must consider when deciding whether or not to lend to a bank, including increasing small business opportunities in areas with exceptionally high unemployment rates, protecting American jobs, and providing funds to minority-owned business.

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Comments

Displaying 1-30 of 34 total comments.

  • Chris51 06/29/2010 2:56pm

    President Obama gets it. God bless him.
    It is the GOP who are busy watching out for Wall Street/Corporations.
    Shame on Congress for not coming up with a solution for all its displaced hard working americans.

    Today President Obama’s discussed what was happening with corporations, the economy, and the need to help the displaced unemployed. Watch his entire interview on CSPAN. I has been obvious for some time now that CNN and FOX are not intouch with what is really going on in our country. These news stations are only interested in the stories that they have a self-interested in.

    CSPAN: http://cspan.org/Watch/Media/2010/06/29/HP/A/34826/Pres+Obama+Remarks+on+the+Economy.aspx

    Then go to wwww.change.org
    http://www.change.org/petitions/view/we_demand_an_immediate_passage_of_bill_hr_4213_extension_of_unemployment_benefits

  • Comm_reply
    chris88 06/29/2010 5:53pm

    THE ECONOMY IS SHOWING HOW IMPORTANT WE ARE . STOCKS ARE LOW!!! THERE’S NO COMSUMER SPENDING CAUSE WE ARE THE ONES WHO SPEND. THE $291 I GET A WEEK GOES RIGHT OUT THE DOOR THE NEXT DAY FOR BILLS… WAKE UP CONGRESS!!!!

  • Comm_reply
    Chris51 06/30/2010 10:28pm

    The Senate needs to be held accountable for their incompetence and lack of integrity. Shame on them for not coming up with a 100% solution for all Americans who are forced to survive on their UI.

    President Obama can’t sign a bill, if Congress doesn’t get it to him. President Obama’s discussed the economy, and the need to help the displaced unemployed with UI Extentions on Monday and Tuesday. CSPAN.ORG

    As of today, we have 9.7% unemployed, 55% of the workforce have taken reduced work hours, pay-cuts, unpaid leave, forced to switch to part-time, and BP Oil Corporation’s IRRESPONSIBLENESS is adding to LOST JOBS and LOST LIVES.
    1.2 million who will lose their Unemployment Insurance if Republicans get their way.

    The GOP have no vested interest in hearing or helping jobless people. The only communication Republicans hear is $$$$$. That’s why they listen to and only support Oil Companies, Insurance Companies, Banks, Big Corporations, and Wall Street

  • Comm_reply
    Chris51 07/08/2010 6:52pm

    Senator’s excuse for not passing is a false statement.
    Read all about it:
    The funding argument is even harder to swallow. I’d be more sympathetic with these new converts to fiscal responsibility if they were as enthusiastic about paying for extending $32 billion worth of special interest tax breaks as they are about funding the unemployment extension. If I understand correctly, these lawmakers insist that Congress fund every dime of added jobless aid, which nearly all analysts agree will help boost the economy. But they feel no need to pay for continuing these special interest tax breaks, which will not.
    Full Story:
    http://www.csmonitor.com/Money/Tax-VOX/2010/0707/Senate-struggles-with-unemployment-benefits

  • Comm_reply
    Chris51 07/08/2010 6:53pm

    GOP are determined to bloc everything the President is trying to do for the USA right now. He has a vested interest, and seems to take pride in doing the best job he can while in office.
    We are in trouble as long as Republican politicians continue favoring their special interest.
    How can any CEO or Owner of business get anything done if half of his managers or executives stand in his way just to be defiant.

    President Obama speech on CSPAN today, while in Kansas City, MO to support a future candidate. Was right on.
    If you are an unemployed American, and are thinking no one understands the difficulties of being jobless. Obama speech articulated the financial and emotional struggles well. Hat’s off to the President for saying what needed to be said.

    http://cspan.org/Watch/Media/2010/07/08/HP/A/35248/Pres+Obama+Remarks+at+Fundraiser+for+Missouri+Senate+Candidate+Robin

  • Comm_reply
    Chris51 07/01/2010 8:38am

    Corporations have increased their cash reserves to $1.84 TRILLION, THE HIGHEST FIGURE IN HISTORY! Big business and the banks, after an unprecedented bailout by the public treasury, are hoarding the funds (Americans pay this back on their IRS tax bill). BIG CORPORATIONS EXECUTIVES ARE MAKING BIG BONUSES AND GETTING SALARY INCREASES FOR SHOWING HUGE PROFITS. The cash reserves of major corporations have jumped 26 percent in one year, the largest percentage increase in nearly 60 years. The cash reserves of working people, and particularly the unemployed, have not been so fortunate.

    REPUBLICANS bloc, the SENATE vote and defeat a proposed extension of unemployment benefits for unemployed workers. Many of these same Senators rushed through a $700 BILLION bailout of Wall Street in 2008 in a matter of days, cannot bring itself to support even the most meager subsistence for the unemployed workers who are the victims, not the perpetrators, of the economic crisis.
    WWW.CHANGE.ORG

  • Comm_reply
    Chris51 07/01/2010 9:56pm

    SHAME, SHAME, SHAME to Republicans and those few Democrats who blocked several U.I. Ext. bills from passing they turned their backs on THE PEOPLE again.

    Most of these same House Representatives and Senators united to pass bills that gave their Wall Street/Banks SEVERAL billion $$$s in bailouts in 2008, starting with JP MORGAN CHASE, one of the many banks that took advantage of consumers.

    Then their oil companies made billions in profit during the summer of 2008, as they strategically increased gas prices by $1-$2 on Americans at the pump. Americans had to pay for gas to get to work. Soon American’s household budgets were out of balance, and started foreclosing on home loans.

    Your companies stayed fat$$ at the top by cutting jobs, while leaving The People jobless, without Unemployment Insurance, struggling and sadly disillusioned.
    www.change.org

  • Chris51 06/29/2010 3:15pm

    Once again, Republican defeat a proposed extension of unemployment benefits for workers who have been jobless…

    Yet Congress rushed through SEVERAL billion $$$ bailoutS of Wall Street in 2007-2008. Starting with JPMORGAN CHASE.
    The Wall Street Journal reported a few weeks ago that American corporations have increased their cash reserves to $1.84 TRILLION, the highest figure in history. In other words, big business and the banks, after an unprecedented bailout by the public treasury, are hoarding the funds that could put millions back to work. The cash reserves of major corporations have jumped 26 percent in one year, the largest percentage increase in nearly 60 years. The cash reserves of working people, and particularly the unemployed, have not been so fortunate..

    Get in touch with what really is happening by going to CSPAN.org and www.CHANGE.org

  • Comm_reply
    Transparent 06/29/2010 5:50pm

    We should all move to Canada, their economy is fine because it is not ran like a circus. Fuck this government! I will never vote for a repub or dem again!

  • firestorm145 06/29/2010 3:18pm

    We need the extension!!!! You republicans just don’t get it. Who cares about the banks. You have to have money or a job to put money in a bank. Pass the damn extension already

  • fitat47 06/29/2010 3:51pm

    HR 5297 is a start, but it will take weeks or months before jobs are created. What are the people who have run out of unemployment benefits supposed to do in the meantime starve to death?! We still need to fund and pass HR 5618! Please lets get it done!

  • Comm_reply
    desperatehousewife 06/29/2010 4:58pm

    I agree, this is great but it does not solve the problem right now. Really what this does is give more banks more money just smaller banks. What I can’t understand is that the big banks were bailed out and they are not really hireing right now. My Fiance has been applying for some of their jobs since last year and he has not even land an interview. We thought something was wrong with his resume and we worked hard to change it even sought advice and still nothing. Its just really tough out there. Our unemployment benifits ran out 3 weeks ago and we are not even sure if the UI Bill that keeps failing covers us. Now we don’t even have the money to go an interview should we be called to one. We’re not even holding out for the perfect job we are exploring temp positions,internships and undergraduate positions and its just tough out here in NYC. So I don’t care about this bill right now it is not going to put money in our pockets next week and that is what we need.

  • Kristen155 06/29/2010 5:08pm

    This great for the future when it will produce jobs, if it actually does. As Chris51 stated corporations and banks are only hoarding the money so what makes them think small banks won’t do the same. But what about NOW? There are millions of people out of work that need help now to survive. It breaks my heart to see so many people struggling while Congress ignores them. And what really shocks me is that I read that there is still quite a bit of unused stimulus money left. What are they waiting for?

  • jenny2010 06/29/2010 5:41pm

    DON’T PUT THE CART BEFORE THE HORSE!!!!! FIRST HELP THE UNEMPLOYED SURVIVE THIS RECESSION THEN WORK ON PRODUCING JOBS TO GET THIS NATION BACK ON TRACK.

  • deanleah 06/29/2010 5:56pm

    We the American people do not have time for everyone to get organized to start small business lending. Republican Party, before you go off on your 4th of July vacation you all need to have a serious reality check. I believe that majority rules that those of you in the republican party have the brain of bird seed. Folks, this is reality and serious problems will come to our country if you do not extend the emergency unemployment extension bill. Are you all waiting to see people loose their homes, transportation, unable to buy food but yet willing to pass on welfare to illegal immigrants? Stop playing Russian Roulette with the American People and use your brains. Every single day, I come 1 step closer to loosing everything I have because unfortunately my economic situation is in the hands of idiots like our Government. If you can’t

  • tiredofbeingtired 06/29/2010 6:23pm

    What they don’t realize is that it’s great for small business, but how long will it be before they fill these positions? How will we get to them to interview with no money for gas? How will we call to inquire about the position or to answer the ad if our phones are cut off….that’s what they don’t realize, is that we need the funds to GET a JOB!!!

  • WeThePeopleFightBack2010 06/29/2010 6:53pm

    wow, I’d be excited about this if I was a small bank, or someone who wants to start my own business. By the time these new businesses are started and actually hiring people I’ll be dead from starvation or from the consequences of severe depression, which ever comes first. The politicians obviously don’t give a rats ass.

  • Comm_reply
    WeThePeopleFightBack2010 06/29/2010 10:12pm

    They should take that money and divide it up between all the people that lost their UI benefits. Wouldn’t it be nice to be able to pay off all our bills and maybe even be able to buy a pair of shoes (or whatever). Instead they give the money to people who not only have jobs but lots of them probably make 6 digits a year. I wonder how many people are going to get millions in bonuses this time, it certainly wont be any of us who lost our benefits. Another perfect example of how the government only takes care of the rich.

  • Comm_reply
    WeThePeopleFightBack2010 06/29/2010 10:18pm

    What ever happened to all those extremely rich people that moved their businesses to other countries so that we can’t find jobs. Oh yeah, they got richer. They should be forced to live in the countries they moved their businesses to. America doesn’t need them.

  • Chris51 06/29/2010 10:28pm

    How many Small Business loans will be approved to the jobless worker who is looking at the option of doing a business start up? NONE
    -Poor credit and/or unemployed need not apply.

    Everyone knows that banks, retailers, small or big businesses have the legal right to not interview or hire applicants if they have had any negative information on their credit history report. So on top of everything else the unemployed are trying to keep up with they must be sure to keep a high credit score standing while they are unemployed, in order to have at least a chance to get interviewed after completing MOST companies on-line application and required background information checks.
    - It’s not always about experience, but about the criteria businesses/agencies use to screen applications for employment.

  • Chris51 06/30/2010 5:29am

    To the 1.2 million jobless americans I thought you would be glad to know that the Republicans let the Democrates get the Small Business Bill through.

    How many Small Business loans will be approved to the jobless workers who are looking at the option of doing a business start up? NONE
    -Poor credit and/or unemployed need not apply.

    Everyone knows that banks, retailers, small or big businesses have the legal right to not interview or hire applicants if they have had any negative information on their credit history report. So on top of everything else the unemployed are trying to keep up with they must be sure to keep a high credit score standing while they are unemployed, in order to have at least a chance to get interviewed after completing MOST companies on-line application and required background information checks.
    - It’s not always about experience, but about the criteria businesses/agencies use to screen applications for employment.
    GOP WILL ONLY SUPPORT WALL STREET

  • Chris51 06/30/2010 6:41am

    • It’s the Republican party who is busy watching out for Wall Street/Corporations.
    Shame on Congress for not coming up with a solution for ALL its’ displaced hard working Americans.
    • 9.7% unemployed = 1.2 million Americans, and 55% of the workforce have taken reduced work hours, pay-cuts, unpaid leave, forced to switch to part-time. The BP Oil Corporation’s irresponsibleness is adding to lost jobs and lost lives.

    Yesterday, President Obama’s discussed what was happening with corporations, the economy, and the need to help the displaced unemployed. Watch his entire interview on CSPAN. He gets it.

    CNN and FOX only report on self-interested, with their main story and topics cycling 24 hours. Go to CSPAN
    CSPAN: http://www.c-span.org/Watch/Media/2010/06/29/HP/A/34826/Pres+Obama+Remarks+on+the+Economy.aspx

    wwww.change.org

  • Chris51 07/03/2010 9:57pm

    REPUBLICAN FILIBUSTER ON UI EXT BILLS!
    Why don’t our Senators get that there is a great need?

    The job market is broken.
    The corporate executives are not going to give up their year-end profit bonus by adding jobs/payroll to their companies.

    Here are a few stories on our jobless nation:

    Job recovery hits a wall
    http://money.cnn.com/2010/07/02/news/economy/jobs_june/index.htm

    Job gloom at all time high
    http://money.cnn.com/2010/07/03/news/economy/discouraged_workers/index.htm

    7.9 million jobs lost- many forever
    http://money.cnn.com/2010/07/02/news/economy/jobs_gone_forever/index.htm

    Jobless claims spike
    http://money.cnn.com/2010/07/01/news/economy/jobless_claims/index.htm

    Thousands at risk for losing unemployment benefits
    http://www.myfoxphoenix.com/dpp/money/job_news/unemployment-benefits-jeopardy-6-28-2010

  • artledoux 07/04/2010 6:57am

    Wasn’t the small business loan package put together with the UE extension bill?
    See how the RepubliCON’s support this, but not working Americans.
    They had to break them apart to pass it. Small business is a driving force in
    an economy. I think it’s good they have this, but as many have pointed out if
    you have no money how do you get to an interview? I guess we’ll have to walk?
    If we have no address, phone, will they still give us a job?
    Art LeDoux

  • Chris51 07/07/2010 9:10pm

    CNN has actually screened and blocked several comments/blogs that expose the truth about the Republican Senators in regards to the UI Ext bills.

    Here are some stories written with very accurate reporting of the UI Ext Crisis.

    The unemployment emergency
    http://www.washingtonpost.com/wp-dyn/content/article/2010/07/05/AR2010070502658.html?hpid=opinionsbox1

    Senate struggles with unemployment benefits
    http://www.csmonitor.com/Money/Tax-VOX/2010/0707/Senate-struggles-with-unemployment-benefits

    Calls to Suicide Hotlines Skyrocket Along with Unemployment
    http://uspoverty.change.org/blog/view/calls_to_suicide_hotlines_skyrocket_along_with_unemployment

  • Chris51 07/08/2010 9:54am

    Read and sign this petition on Change.org today if you agree.

    Petition Title: Tell your Senators to vote for an emergency extension of UI Benefits.

    http://uspoverty.change.org/blog/category/employment_unemployment

  • Chris51 07/10/2010 6:44am

    Republicans filibustered UI Ext bill! They’re asking for UI Ext be paid, while at the same time they’re fighting to give their Special Interest groups special tax stimulus. Rep are trying to look like they care about the deficit, but for 10 yrs (Bush Admin) they never spoke of concerns for the huge deficit they were digging us into as they approved large spending for Special Interest. The Rep debate on these UI Ext bills are like “broken record”. They want USA to use the stimulus money that is already committed to the agreed upon projects, programs, etc. Republicans want USA to “rob Peter to pay Paul”, so they can try to prolong the problem past November election. This is how they have operated for YEARS, and we’re in worse shape now because of their IRRESPONSIBLENESS. People should not be in Leadership positions if they cant make decision for the problems at hand.
    Dont take my word for it. Please read links Donny Shaw and others have provided with accurate research and reporting.

  • Comm_reply
    Chris51 07/10/2010 9:35pm

    Oil & Gas Industry, history of strong influence in Washington. Individuals and political action committees affiliated with oil and gas companies have donated $238.7 MILLION to candidates and parties since the 1990 (Bush Senior term) election cycle, 75% of which has gone to REPUBLICANS…
    Former oilmen George W. Bush and Dick Cheney occupied the White House for 8 yrs, the oil and gas industry could not win support for repealing bans on drilling in the Arctic National Wildlife Refuge. However, Congress voted in 2008 to lift a ban on offshore drilling… Read full story: http://www.opensecrets.org/industries/indus.php?ind=E0

    Drilling bans were lifted during Bush’s last months in WhiteHouse in 2008. The After consumers & transportation industry & economy felt the pain of $1-$2 price hikes of gas, during Summer 2007. It was “the straw that broke the Camel’s backs”, PUTTING USA/AMERICANS INTO TAIL SPIN. Opensecret.org

  • Comm_reply
    Chris51 07/10/2010 9:36pm

    Top 5 Contributions from Oil&Gas Industry 2009-2010:
    1 Koch Industries $724,300 14% Dems, 86%Repubs
    2 Exxon Mobil $548,214 13% Dems, 87% Repubs
    3 Chevron Corp $516,891 18% Dems, 82% Repubs
    4 Valero Energy $467,000 17% Dems, 83% Repubs
    5 Marathon Oil $378,190 23% Dems, 76% Repubs

    Tea Party Movement benefits from millions of dollars from conservative foundations that are derived from wealthy U.S. families and their business interests. Money flowing primarily through two conservative groups: Americans for Prosperity and FreedomWorks. FreedomWorks receives substantial funding from David Koch of Koch Industries, the largest privately-held energy company in the country, which make substantial annual donations to conservative org…
    http://www.sourcewatch.org/index.php?title=Tea_Party_movement_funding

  • Comm_reply
    Chris51 07/10/2010 9:37pm

    Letter was written to Senators:
    On behalf of hundreds of thousands of FreedomWorks members nationwide, I urge you to carefully consider all aspects of H.R. 4213…

    If the bill comes to a vote as currently formulated, we encourage you to vote NO, and will track the vote on our Economic Scorecard….

    Signed FreedomWorks President and CEO
    (FreedomWorks funds Tea Party ;)

    http://www.freedomworks.org/publications/freedomworks-to-senate-remove-job-killing-taxes-fr

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