U.S. Congressman Kurt Schrader (D-OR), Chairman of the Subcommittee on Finance and Tax of the House Small Business Committee, applauded the inclusion of tax credits that would infuse the nation's small businesses with $13 billion in new lending and investment.
U.S. Congressman Kurt Schrader (D-OR), Chairman of the Subcommittee on Finance and Tax of the House Small Business Committee, applauded the inclusion of tax credits that would infuse the nation’s small businesses with $13 billion in new lending and investment.
“Small businesses make up 98% of Oregon industries and their recovery is critical to the overall recovery of our economy,” said Schrader. “Today’s legislation will help small business owners throughout our nation survive these tough economic times and create new jobs to help rebuild our economy.”
In recent months, smaller firms have struggled with plunging consumer demand, while also finding that needed credit has been shut off in frozen financial markets. The small business provisions in the legislation are designed to help address these problems with new authorities for the Small Business Administration and targeted tax relief for small businesses. Specifically, the bill would:
· Repeal the onerous 3% withholding tax on payments to government contractors;
· Permit the Small Business Administration (SBA) to guarantee up to 95 percent of qualifying small business loans by eligible lenders (up from 85 percent), thereby encouraging lenders to lend;
· Provide the SBA with new authority to unclog the secondary market for SBA-backed loans; and
· Allow businesses to improve cash flow by providing a 5-year carry-back of net operating losses (NOLs).
“As a small business owner, I understand how hard this economic downturn has hit Oregon small businesses. They are struggling daily to meet payroll, pay vendors and provide benefits for their employees. This is not a quick fix bill, but I hope with the final passage of the economic recovery package we can finally provide the help our small businesses so greatly need,” said Schrader
The provisions in the bill for the SBA will yield $13 billion in additional investment and lending for small businesses. Putting this fresh capital in the hands of small business owners will result in the creation or retention of 400,000 jobs, more than 15 percent of the jobs the economy shed last year. The bill also targets $30 billion in tax relief to small businesses, which will also help spur growth.
With the House passage of the American Recovery and Reinvestment Act, the Senate will need to take up its version of economic recovery legislation. A final legislative package is expected to be sent to the President for his signature in February.
Congressman Schrader represents the 5th Congressional District of Oregon which includes the counties of Benton, Clackamas Lincoln, Marion, Multnomah, Polk and Tillamook. Congressman Schrader was recently appointed to chair the House Small Business Subcommittee on Finance and Tax. Schrader is also a member of the House Committee on Agriculture and House Committee on the Budget for the 111th Congress.
