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Senate Dems Break Small-Business-Jobs-Bill Filibuster

September 14, 2010 - by Donny Shaw

Since June 29th, Senate Democrats have been stymied by Republicans on a bill (H.R. 5297) that would give small business $12 billion in tax breaks and a $30 billion lending fund in order to encourage new hiring. Today, a couple Republicans gave in, providing the Democrats the votes they need to overcome GOP opposition and move the bill towards final passage.

Sen. George Voinovich [R, OH] and Sen. George LeMieux [R, FL] voted with every Democrat in favor of a “cloture” motion this afternoon, making moot the rest of the Republicans’ threat to filibuster. As a reminder, here’s how the $30 billion lending fund in the bill would work, via Businessweek:

The fund would invest in small banks—those with less than $10 billion in assets—by purchasing preferred stock, which would pay the government a dividend of 5 percent. The cost of that money would decrease to a dividend as small as 1 percent if banks boost their small business loans over 2009 levels by 10 percent. For banks that do not increase their small business lending, the capital would become more expensive, with the dividend rising to 7 percent.

The Congressional Budget Office estimates that the fund will result in a $2 billion surplus for the government over the next 2 years due to the interest banks would be paying on the loans. And, for what it’s worth, Majority Leader Sen. Harry Reid [D, NV] estimates it will produce 500,000 – 700,000 jobs. I have yet to find an independent analysis of how many jobs we can expect to see from this, but I’ll update when/if I do.

Reid says the Senate will take a final vote on passage of the bill later this week, likely on Thursday. After that it will go either back to the House for a vote on agreeing to the Senate’s amendment, or to a conference committee for reconciliation.

Senator Voinovich is pictured above.

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Comments

  • Abaratarrr 09/14/2010 2:03pm

    wow billion of dollars for people that are already millionaires but nothing for the unemployed. This is insane! banks and companies are setting on record amounts of cash that is not the reason they are not hiring.

    I am sure that the millionaires benefiting form this 30 billion dollars are very thankful but the unemployed need it more.

    Harry Reid is blocking the unemployment extension, Harry Reid refuses to allow for 3706 the Americans want to work act to be voted on.

    At this point it is all up to harry reid, we need to ring his phones constantly.

    Reid’s numbers

    202-224-7327
    775-686-5750
    775-882-REID (7343)
    702-388-5020

    please be nice we want them to want to help us. But if he refuses to help us he needs to join us.

  • Student2010 09/14/2010 9:42pm

    The best thing to do for the unemployed is to get them back to work and get businesses hiring again, that puts money in people’s pockets and the economy working again.

    This is the best we can all hope for.

  • beenblue 09/15/2010 3:34am

    THE TIMES WERE LIVING IN HAS THE FEEL OF THE DECADENT ROMAN EMPIRE AS IT COLLAPSED IN ON ITSELF. WERE MAKING ALL OF THE SAME MISTAKES, JUST WEARING DIFFERENT CLOTHS, BUT THE SIMILARITY`S ARE ASTONISHING. IT`S TRUE THAT IF WE DON`T LEARN FROM OUR MISTAKES, THEY REPEAT THEMSELVES UNTIL WE DO.

  • DeborahJBrown 09/15/2010 4:11am

    Finally, a bill with INCENTIVE for job restoration!I swear these stupid mid-term elections are having such a negative impact on economic recovery! Republicans intentionally impeding economic recovery filibustering a bill that provides incentive to create jobs proves that it’s all about mid-terms!Personally I think a bill should be passed to defer all mid-term elections until AFTER economic recovery. (LOL) Americans lost millions of jobs that were never reinstated and unemployment benefits have barely kept middle America afloat. Incentive for job restoration been needed for a very long time. Corporations that began showing profits have been adding those profits to the paychecks of CEO’s INSTEAD of reinstating jobs! They had no incentive to do anything differently! This is a step in the right direction and now unemployment benefits need to be extended now to allow time for this recovery effort to take effect. This is PART of a solution – not a magic wand!

  • gameover75661 09/15/2010 2:11pm

    i wold really like to know if and when they are going to vote on S.3706 . my unemployment runs out next week and there is no jobs where i live.

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