Small businesses delay spending, wait for aid

Small businesses have delayed hiring, buying supplies and real estate expansion as they wait for a vote on a small-business aid bill that has stalled in the Senate, according to USA Today.

The legislation—which many small businesses hoped the Senate would pass by the end of July—offers tax breaks, waived loan fees and a $30 billion fund that would help community banks give loans to small businesses. Congress reconvenes in two weeks, and those small businesses are putting things on hold until the outcome of the bill is decided; some businesses could save thousands of dollars on the waived loan-fee provision alone.

The bill includes increasing government guarantees to as much as 90 percent (compared with a current 75 percent guarantee) on some of the most popular loans; allowing community banks with assets of $10 billion or less to tap into the $30 billion fund when making small-business loans; offering small businesses about $18 billion in tax breaks, as well as credits for new hires; and the Small Business Administration increasing the maximum for certain loans from $2 million to $5 million.

Date : 8/31/2010