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Tuesday, September 28, 2010

Small Business Jobs Act, is now law; after President Obama signs on September 27

Barack Obama addressing a joint session of Con...Image via Wikipedia
President Obama scores another victory in the effort
to create jobs in America by signing the Small Business
Jobs Act on September 27.

A huge step was taken on September 27, in the effort to create employment opportunities across America and in Michigan. The $30 billion "Small Business Job Act" H.R. 5297, was signed into law Washington, D.C. by President Obama, September 27, 2010. 
The bill creates an government fund to assist encourage lending to small businesses. Many small business owners have been having difficulty securing bank loans and credit. The fund will be available to community banks, which could use the money to leverage billions more in loans. 
Prior to signing the bill, the President made a few remarks, according to Marketwatch:
"Now this is important because small businesses produce most of the new jobs in this country. They are the anchors of our Main Streets. They are part of the promise of America -- the idea that if you've got a dream and you're willing to work hard, you can succeed. That's what leads a worker to leave a job to become her own boss. That's what propels a basement inventor to sell a new product -- or an amateur chef to open a restaurant. It's this promise that has drawn millions to our shores and made our economy the envy of the world, President Obama stated. 
The bill includes a one-year tax deduction for sole proprietors on health care costs for payroll tax purposes, on their 2010 tax returns. This measure alone, within the bill, is expected to save self-employed business owners approximately $456 to $968 in taxes next year. This is a significant bottom-line cost savings in this difficult economic climate, according to the Marketwatch article.


Present at the signing ceremony beside the President, were Speaker of the House, Nancy Pelosi (D-CA), Congressman Sander Levin (D-MI) and Michigan Governor Jennifer Granholm (D). Governor Granholm's office, issued a press release, shortly after the bill enactment into law.
"Today President Obama signed into law measures that will help our small businesses gain access to credit that will help them make new investments, create jobs and strengthen our nation's economy," said Granholm.  "The Small Business Jobs Act is an important step as we continue building a new foundation to move America forward."
It is estimated that Michigan will be eligible to apply for almost $78 million under the states', Small Business Credit Initiative (SSBCI). Fundings received from the Small Business Job Act, will be used to enhance existing state based lending programs to help Michigan businesses access credit by leveraging private sector capital. 


Governor Granholm went on to thank members Michigan Congressional Delegation; Congressman's Gary Peters (D), John Dingell (D) and Sander Levin (D), that pushed for this bill passage.
"I am grateful to the Michigan members of Congress who supported this legislation, especially Congressmen Peters, Levin, and Dingell for introducing the State Small Business Credit Initiative in the House and to Senators Stabenow and Levin for ensuring that it was included in the Senate bill," said the Governor.  "They understand the difficult lending environment that businesses face and have worked tirelessly to make sure that this new law would provide assistance to Michigan businesses and workers."
On the "Reach Out Job Search" radio show on July 22, Biz2Credit Founder Ramit Arora spoke about how the passage of this bill would help in his company quest to bring up to 45 new jobs to the Ann Arbor, Michigan area.
"That (this Small Business Lending Bill) would help us in growing our company faster, because what that bill proposes is creating a 30 billion dollar fund, that the treasury can lend to smaller banks, who would be more eager to lend to small business. What we are experiencing with in the last couple of years is that the larger banks have scaled back their small business financing", Arora stated.
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