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Bill for Small Business Job Creation Introduced

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By Minara El-Rahman on December 28, 2009 5:50 AM

A proposed bill for small business job creation and opening lines of credit to small business was introduced by the United States Senate Committee on Small Business and Entrepreneurship. According to a press release by the U.S. Senate Committee on Small Business & Entrepreneurship, the "Small Business Job Creation and Access to Capital Act of 2009" contains provisions that will increase SBA loan limits, extend government guarantees, and get rid of fees that come with SBA lending.

The proposed bill aims to increase small business job creation and get credit to small business. The bill hopes to create jobs by allowing small businesses to grow. The Denver Business Journal quotes Sen. Mark Udall (Dem-CO) as saying, "If we're going to rebuild our economy, we have to unlock the credit market so businesses on Main Street can make payroll, buy inventory and expand. By increasing access to credit union loans, small businesses across the country will be able to expand, and create thousands of jobs."

The senators predict (with the help of Credit Union National Association) that the bill will help credit to small business increase by $10 million dollars. The senators who support this bill are: Sen. Charles Schumer, (Dem-NY); Sen. Joseph Lieberman, (Ind-CT).; Sen. Olympia Snowe, (Rep-ME); Sen. Barbara Boxer, (Dem-CA).; Sen. Susan Collins, (Rep-ME); and Sen. Kirsten Gillibrand, (Dem-NY). 

Some of the key provisions of the bill include:

  • Increasing the loan limit on 7(a) loans from $2 million to $5 million
  • Increasing the loan limit on 504 loans from $1.5 million to $5.5 million
  • Permitting the 504 loan program to refinance short-term commercial real estate debt into, long-term, fixed rate loans
  • Extending the authorization to provide 90 percent guarantees on 7(a) loans and fee elimination for borrowers on 7(a) and 504 loans through December 31, 2010
  • Creating a directory on the SBA site where small businesses can locate lenders in their communities

These provisions are intended to soften the hard blows that have been dealt to small businesses throughout the duration of this recession. Both the Democrats and Republicans agree that it is time to help small businesses regain their footing in this economy. The press release by the U.S. Senate Committee on Small Business & Entrepreneurship quotes Sen. Olympia Snowe (Rep-ME) as saying,  "Our most fundamental domestic challenge is to swiftly turn the economic tide and spur employment opportunities for the millions of unemployed and underemployed Americans. And the fastest route to doing just that runs straight through Main Street small businesses in cities and towns all across this nation."

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