WASHINGTON, D.C. – The U.S. Senate passed a small-business aid bill on Thursday that creates a $30 billion lending fund and provides $12 billion in tax breaks to help small companies invest and hire.
The bill passed by a 61-38 margin, and now goes back to the House of Representatives where swift passage is expected.
The bill provides for $12 billion in tax breaks to businesses to encourage investment and hiring, and would allow businesses to write off more of their equipment buying or improvement costs. The self-employed could deduct health-care costs from the self-employment tax under the bill.
The Motor & Equipment Manufacturers Association (MEMA) and its market segment associations AASA, HDMA and OESA, praised the Senate for its passage of the Small Business Jobs and Credit Act (H.R. 5297).
“Over the last 18 months, we have worked to create a state-based small business program that will provide our members with opportunities to access the traditional financial markets. This is particularly important to help small manufacturers obtain funding for retooling and diversification,” said Steve Handschuh, president and COO of AASA. “The bill, particularly the Small Business Credit Initiative program, will help achieve those goals.”
“For this country to succeed, we need a strong domestic vehicle manufacturing industry capable of meeting consumer demands of safer and more fuel efficient vehicles,” said Bob McKenna, president and CEO, MEMA. “This bill will help ensure a stable supply base capable of meeting those objectives. We are very grateful the Senate recognized this and took action.”
SEMA, the Specialty Equipment Market Association, also applauded the Senate for passing the HR 5297 and urges quick ratification by the House of Representatives so that it could then be signed into law by President Obama.
“We commend the United States Senate for taking this critical step toward providing small businesses with access to lending,” said SEMA President and CEO Chris Kersting. “As the key to our nation’s economic recovery, small businesses must be given every opportunity to expand and prosper. A lessened access to capital has served to prolong this stagnant economy and resulted in unnecessary anxiety for businesses and consumers alike. SEMA members who qualify for this program will benefit greatly from this fund.”
