Added by Monique Robinson on September 16, 2010
The White House is attempting to support the economy’s recovery by taken tax break measures which are expected to have an important positive impact on small businesses. Democrats in Congress will try to support the currently sluggish economy through the small business bill. The Congress aims to finalize it by the end of the week so that it can pass it on to the House of Representatives for the final overview and approval.
President Barack Obama stated during a press conference this week: ‘America’s small businesses are counting on us’. The US president firmly believes that small business are the economy and that more than half of the jobs offered in the United states are provided by small firms.
The Congress’s bill is aiming to give tax breaks amounting $12bn to small businesses together with an important fund consisting of $30bn which is for independent community banks and that seeks to encourage these banks to approve loans to small firms. Small companies that are currently investing in factories and equipment will also have a $200bn fund. The Congress’s bill has been backed up by numerous industry groups which claimed that more loans to small businesses can only have a positive result that translates in more hiring.