"Now, government can't create jobs, but it can help create the conditions for small businesses to grow and thrive and hire more workers," said Obama at a May 25 event honoring the Small Business Owners of the Year. "Government can't guarantee a company's success, but it can knock down the barriers that prevent small business owners from getting loans or investing in the future."
"From the middle of 2007 through the end of 2008, small businesses lost 2.4 million jobs," said President Obama. "And because banks shrunk from lending in the midst of the financial crisis, it's been difficult for small business owners to take out the loans they need to open up shop."
As proposed by the White House, the bill would make $30 billion available to community banks specifically for loans to local small businesses. In addition, the bill would provide funds to help the states create or enhance their own small business lending incentive programs.
The bill would also provide additional tax incentives, including eliminating capital gains taxes on small business investments and allowing "zero depreciation" for businesses that invest in expanding their facilities and buying new equipment.
Finally, the bill proposed by the White House would permanently increase maximum loan sizes for SBA loans and provide additional funding for small loans to small businesses in their start-up stages.
"This is an issue of putting our government on the side of the small business owners who create most of the jobs in this country," said the President. "It's about giving them tax cuts and loans so they can keep growing and keep hiring."