FOR IMMEDIATE RELEASE
ICBA Lauds Senate Passage of Small Business Jobs Act
Urges Prompt House and Bank Regulator Action
Washington, D.C. (September 16, 2010)-Independent Community Bankers of America (ICBA) Chairman Jim MacPhee, CEO of Kalamazoo County State Bank in Schoolcraft, Mich., issued this statement today following Senate passage of the Small Business Jobs and Credit Act (H.R. 5297), which would establish a $30 billion Small Business Lending Fund (SBLF) for interested community banks to expand small business lending. The legislation also includes beneficial Small Business Administration (SBA) program lending incentives and small business tax cuts. Thousands of community banks have boosted their SBA small business lending using the higher SBA guaranty levels and reduced fees for borrowers.
"ICBA thanks the Senate for passing this critical legislation. Our nation's sluggish economy needs help, and this is a pivotal step toward aiding Main Street America's economic recovery. The SBLF and SBA incentives will help interested community banks enhance the flow of credit to Main Street's small business customers, who are the driving force behind local economic stability and growth. The Tier 1 capital banks can receive through this legislation could be leveraged to provide as much as $300 billion of new credit to small businesses.
"Key provisions of the act include:
- $30 billion capital lending fund for interested community banks to support greater small business lending.
- Higher SBA loan guaranty levels, larger loan size limits and reduced borrower fees.
- Shorter S Corporation holding period to mitigate the built-in-gains tax.
- Increased small business immediate expensing up to $500,000 over two years and 50 percent bonus depreciation.
- Enhanced small business export promotion and SBA trade financing incentives.
"ICBA appreciates the unwavering support of Senate Small Business Committee Chairman Mary Landrieu (D-La.), Sen. George LeMieux (R-Fla.) and Sen. George Voinovich (R-Ohio) on this vital issue and urges prompt House passage of the Senate-passed bill."
For more information, visit http://www.icba.org/.