October 1st, 2010 – With Congressman Adam Smith’s support, Congress passed and the President signed into law legislation that will bolster access to capital for small businesses. The legislation, H.R. 5297, The Small Business Lending Fund Act of 2010, creates a $30 billion fund that local community banks can access specifically for the purpose of small business lending.
“Small businesses are the backbone of our economy and our communities – we must continue to support their efforts to grow and create jobs,” said Congressman Adam Smith. “I frequently hear from small businesses owners who simply do not have access to capital, or face lending terms that are completely untenable. If our economy is to recover, the lending environment must improve and this fund will help local banks to reengage in the type of small business lending that helps our local economy flourish.”
The bill also provides $12 billion in tax incentives targeted at small businesses. Most notably, it reinstates an expired tax provision that allows businesses to write off half the cost of new equipment purchased and placed in service this year.
On Monday, September 27th, the President signed the bill into law.