The U.S. Senate passed a bill Thursday designed to spur small-business lending by providing financial incentives to banks that make loans to smaller companies, marking a victory of sorts for an Obama administration attempting to show voters it's addressing the public's concerns about the economy, Reuters reported.

The bill, which was widely expected to be approved by the Senate, passed by a 61-38 margin, and now heads back to the House of Representatives, the wire service said. Democrats have estimated that the bill could create as many as 500,000 new jobs, according to Reuters.

With the U.S. unemployment rate still near 10%, President Obama is trying to work with Congress on approving spending measures that will spur economic development, especially among the middle class. Earlier Thursday, Obama indicated that the bill has taken too long to be approved, according to Reuters.

The bill would create $30 billion in funding used by the government to encourage lending by investing in smaller banks while providing tax-breaks related to small businesses totaling about $12 billion, Reuters said.


Increase your money and finance knowledge from home

Timing Your Spending

How to pay less by changing when you purchase.

View Course »

Building Credit from Scratch

Start building credit...now.

View Course »

Add a Comment

*0 / 3000 Character Maximum

13 Comments

Filter by:
allisonisa39e

Why did they ESTIMATE 500,000 new jobs, why not 1,000,000 or ten times that ? It is just a number that someone said sounded good so they threw it in to make people think that someone was caring about them and so that they could collect more votes. More money is printed and they say it creates more jobs. I have some ocean front property in Arizona for those of you who believe this will help you.

September 17 2010 at 12:30 AM Report abuse +1 rate up rate down Reply
bobystyles

About time--and if the money will actually be used to assist rather than just a trickle down by the government...who will look for ways to spend it on themselves

September 16 2010 at 10:55 PM Report abuse rate up rate down Reply
fallordn

Will the bill help with Sales Tax Hotel Tax School Tax Liquor Tax Luxury Tax Excise Taxes Property Tax Cigarette Tax Medicare Tax Inventory Tax Car Rental Tax Real Estate Tax Well Permit Tax Fuel Permit Tax Inheritance Tax Road Usage Tax CDL license Tax Dog License Tax State Income Tax Food License Tax Vehicle Sales Tax Gross Receipts Tax Social Security Tax Service Charge Tax Fishing License Tax Federal Income Tax Building Permit Tax IRS Interest Charges Hunting License Tax Marriage License Tax Corporate Income Tax Personal Property Tax Accounts Receivable Tax Recreational Vehicle Tax Workers Compensation Tax Watercraft Registration Tax Telephone Usage Charge Tax Telephone Federal Excise Tax Telephone State and Local Tax IRS Penalties (tax on top of tax) State Unemployment Tax (SUTA) Federal Unemployment Tax (FUTA) Telephone Minimum Usage Surcharge Tax Telephone Federal Universal Service FeeTax Gasoline Tax (currently 44.75 cents per gallon) Utility Taxes Vehicle License Registration Tax Telephone Recurring and Nonrecurring Charges Tax Not one of these taxes existed 100 years ago, & our nation was the most prosperous in the world. We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids. We also were A Common Law Country! I have set up a place that the poor and middle class in the country can start to get some of this tax money back. It is our turn to have a piece of the action. Here is my way to get your loot back. Just google EASY STOCK CASH and click the first link. Once you get there, go right to the PENNY STOCK page to see what the rich don't want you to know.

September 16 2010 at 8:13 PM Report abuse rate up rate down Reply
dande98214

too much ignorance here just aol freaks

September 16 2010 at 6:36 PM Report abuse rate up rate down Reply
bardshark

What are the specifics of this bill? Haven't heard or seen one yet. Did anyone in Congress read the bill before voting on it? Guess they just had to pass it to find out what it says.

September 16 2010 at 5:44 PM Report abuse +4 rate up rate down Reply
gvovd

Why do we always have to work through a middle man. Seriously. No one in this country can be helped unless the banks are helped more. 300,000 new jobs ? With 30 billion dollars. What the hell is the 30 billion dollars being spent on? Since they arent the ones lending the money. Let's think about this for a minute. With 30 Billion dollars. $100 per US Citizen, ($30,000,000,000 [want to make sure you can see all the zeros]) we could start 6000 new factories at a cost of $5,000,000 ea. Granted that would smaller factories, but thats the best because they have more of a potential for growth. 6000 New Factories, not Subways and Taco Bells, but Factories. Each Factory Employs 100 people... Sure thats 600,000 jobs. But I fail to see how "encouragin banks" to lend is going to help anyone. It's failed time and time again.

September 16 2010 at 5:38 PM Report abuse +3 rate up rate down Reply
ron

I guess we just lost another 2 million jobs everytime they throw around money our debt increases and more jobs go away..

September 16 2010 at 5:31 PM Report abuse +5 rate up rate down Reply
codeplusr

I don't need a loan! I am not going to do anything to add to or create a principle payment! That's just more net profit my company must make to cover a bill I have to pay out of after tax money. The cost of goods must be covered, then labor, freight, overhead, health insuance, 401k, R&M, and all other business cost associated, then I have to pay taxes on any money left (which the tax rate will explode another 20% in 2011). After everyone else gets their money from me being in business, I might on some months of the year be able to pay myself! If you think I am going to do anything that would take away from the measley profit I might make - YOUR CRAZY! The only conditions this would be good is if businesses were expanding and not keeping up with demand. News flash - I'm laying people off on Friday because sales have been slowing, orders are down. Welcome to the housing industry. Obama and his advisors might understand some of this if any of them ever ran a company or worked for a living producing something other than social theory! Jacka$$!

September 16 2010 at 4:06 PM Report abuse +3 rate up rate down Reply
midamerfrn

Small businesses can save this money so they can pay all the costs associated with the neww 1099 regulations going into effect in 2012. One of the many "one page" surprises in the health care bill.

September 16 2010 at 3:48 PM Report abuse +1 rate up rate down Reply
1 reply to midamerfrn's comment
LISA AND BRETT

HOW CAN U SAVE MONEY WHEN U ARE NOT MAKING MONEY COPPER UP GAS UP HEALTH CARE UP TIME TO GIVE UP

September 16 2010 at 4:31 PM Report abuse -1 rate up rate down Reply
LISA AND BRETT

WHAT GOOD IS A SMALL BUSINESS LOAN WHEN THERE IS NO WORK TO HIRE PEOPLE WE GOT TO GET HOUSING BACK BEFORE WE CAN EXPAND OUR COMPANY. RAISE TAXES IT WILL BE THE WORST MISSTAKE IF WE RAISE TAXES ON THE RICH THEY WILL JUST RAISE THE PRICE OF FOOD ECT. TO OFFSET THE TAX AND WHO'S GOING TO PAY THE MIDDLE CLASS

September 16 2010 at 3:45 PM Report abuse +2 rate up rate down Reply