U.S. Senate will likely approve a bill later this week that would spur small-business lending by providing financial incentives to banks that make loans to smaller companies, the Wall Street Journal reported.

Republican Senators George Voinovich (R-Ohio) and George LeMieux (R-Fla.) joined Senate Democrats to give the bill what will likely be the 60 votes needed to pass, the newspaper said. Passing such a bill would be the most important action by Congress since it passed last year's economic-stimulus bill, the Journal said, citing Senate Majority Leader Harry Reid (D-Nev.).

The bill is a response to small businesses that have complained that they can't get financing to hire more workers and expand operations, according to the Journal. Banks would need to volunteer to be part of the proposed program.

In addition to bank-lending incentives, the bill would provide some small-business tax credits, including the ability to write off health-insurance costs, the Journal reported.


Increase your money and finance knowledge from home

Introduction to Retirement Funds

Target date funds help you maintain a long term portfolio.

View Course »

How to Avoid Financial Scams

Avoid getting duped by financial scams.

View Course »

Add a Comment

*0 / 3000 Character Maximum

3 Comments

Filter by:
Al

It is about time that some aid is coming to small business. However, one of the major problems is how do small businesses that have been struggling for the past couple of years to stay alive, and that have destroyed their credit, manage to get some help. There has to be millions of us that are hanging on by a thread. We have borrowed from friends and relatives, we have been late in paying our vendors and have used up most if not all of our savings to stay alive. We employee millions of workers who have struggled with us, where is the help we need. If one or more of the three credit reporting companies give us a low score we remain between a rock and a hard place. Jobs are scarce enough, there will not be an economic recovery until something is done with the millions of us and we get some kind of assistance.

September 16 2010 at 3:46 PM Report abuse rate up rate down Reply
jsbseven

OBAMA HAS DESTROYED THE ECONOMY NOW WE SHOULD THANK HIM FOR SPENDING MORE MONEY TO MAKE IT WORSE THEY WILL DUE LIKE ALWAYS GIVE OUR MONEY TO PEOPLE THAT WILL WASTE IT LIKE ALWAYS

September 16 2010 at 3:17 PM Report abuse rate up rate down Reply
daveswrath0704

Why do bank think they need incentives to loan money out when the get tax payer money at 0% from the govt and now they want to make profit off the money they didnt work for and not one penny is there money stop the greed and just make a small profit and life will be better for people not just the bank

September 15 2010 at 10:02 AM Report abuse rate up rate down Reply