Small Business Bill: A Disservice to the American People

http://www.cspan.org
July 29, 2010
Senate Fails to limit amendments to the bill.
Track the bill here:
http://www.govtrack.us/congress/bill.xpd?bill=h111-5297
This bill seems to be setting up another GSE for lending to small businesses, while being touted as a jobs bill one wonders if another fannie or freddie is in the womb here.
Eligible institutions with less than $1 billion in total assets would be able to apply to receive investments of up to 5 percent of their risk-weighted assets. Eligible institutions between $1 billion and $10 billion in total assets can receive investments of up to 3 percent of risk-weighted assets. Participating institutions would pay a 5 percent dividend rate on the preferred stock, but this rate can be reduced to as low as one percent if a bank demonstrates a 10 percent increase in small business lending relative to a baseline set using the four quarters prior to enactment. The dividend rate would increase to 7 percent after two years, if the bank does not increase its small business lending. To encourage timely repayment, the rate would increase to 9 percent after four and a half years. Treasury's authority to make capital investments under the program is terminated one year after the date of enactment. This provision is estimated to raise $1.1 billion over 10 years.
http://www.webcpa.com/news/Senate-Further-Modifies-Small-Business-Tax-Cut-Bil...
Agriculture appropriations look who's getting 21 million of it! Hawaii
The substitute would also provide assistance for 2009 agricultural losses for crops, including specialty crops, livestock, sugar, aquaculture, cottonseed, and poultry. In addition to approximately $1 billion in supplemental direct payments to producers with a minimum 5 percent loss in production, the bill would provide $42 million in cottonseed assistance, $25 million in aquaculture assistance, $21 million to a Hawaiian sugar cane cooperative, $75 million to poultry producers, $50 million for livestock producers, and $300 million for specialty crop producers. The program is designed for payments to be issued quickly through USDA and State block grants. States could continue to receive Conservation Reserve Program payments for the purposes of school funding. This provision is estimated to cost $1.479 billion over 10 years.
http://pacific.bizjournals.com/pacific/stories/2010/07/19/daily9.html

Category:

News & Politics

Tags:

• congress
• senate
• harry reid
• olympia snowe
• politics
• partisan
• small business
• loan
• lending center
• hawaii
• recess
• fraud
• lies

[LukeWilbur]

Small Business gets no respect. I think it is shameful that this bill treated so badly when jobs are the number one issue for Americans.