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Prior to this falls midterm elections, Congress passed a small business bill that nobody expected. Party lines were crossed as Democrats got enough votes by two Republican U.S. senators hoping to become re-elected. The fighting that started at the beginning of summer has ended as the small business bill was approved in U.S. Senate on Thursday. The legislation aims to improve access to credit and provide tax relief for smaller businesses, which policymakers say create a majority of new jobs. The plan will probably move within the House fast. It is headed there now. Post resource - Two Senate Republicans defect to help pass small business bill by Personal Money Store.

Small company tax breaks and lending

In U.S. Senate on Thursday, the small business bill approved. This means a $30 billion lending fund can be given to banks that work with lending to small businesses. The fund is being compared by Republicans to the Troubles Asset Relief Program. Many are calling another bailout that is funded by taxpayers. However the Wall Street Journal reports that unlike TARP, banks actually volunteer to participate within the new small business lending program. Rates of interest for banks to charged are being determined. This will happen by evaluating how much the bank is willing to increase small business lending. Part of the small business bill says $12 billion in business tax breaks could be had. Integrated in this is instant write-off of 50 percent of 2010 equipment bought within the year. $500,000 could be the new amount of investment smaller businesses can spend in 2010 and 2011.

As a retiring Republican, votes are more on principle

Earlier this year, a smaller version of the small business bill was passed in the House. According to the Los Angeles Times, many businesses chose to Use the bill to weaken the new healthcare reform law instead of supporting it, including the United States of America Chamber of Commerce and the National Federation of Independent Business. Republicans hoped amendments would be added to legislation as they created a filibuster in July for the small business bill. Within the Senate chamber, House members staged a sit-in at one point. This was done to protest the delays going on. The two Republicans that modified their minds aren't seeking re-election. These U.S. senators are George LeMieux of Florida and George Voinovich of Ohio. They joined 57 Democrats and two independents to pass the measure 61-38.

More on this topic

Wall Street Journal

online.wsj.com/article/SB10001424052748703440604575495882236157048.html

Los Angeles times

latimes.com/news/nationworld/nation/la-pn-small-business-bill-20100917,,2992847.story