Thursday, September 23, 2010
Congress passes $42B bill for small businesses
Last week I posted about the Senate passing a bill aimed at helping small businesses to create half a million jobs and cut $12B worth of taxes. This bill has been passed through Congress, and now only has one more step to becoming a law- Obama's signature, which it is expected to get.
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4 comments:
Thats great that the bill passed i fully support it. It's great that Obama recognizes the need for innovation, and job creation. Helping small businesses is great and the help of capital injections are sure to help spur the economy.
Interestingly this bill is likely to be of much effect until Congress makes a decision regarding the Bush tax cuts. These have a huge impact on the bottom line for small businesses, and many are reporting that they will not begin expanding or rehiring until some sort of conclusion is achieved on that issue.
This is a great news since we can only depend on small biz to create jobs since most big ones are outsourcing because of cheap labors in countries such as China and India.
I wonder, though, how would the money get to the small biz and how quickly. It sounds logical that if the small biz get the money, they will create, presumably 500,000 jobs, and these people will be buying gas, pay their mortgage payment, etc which eventually help the economy. However, I assume the money will go through banks and thus I doubt these banks will give out LONG-TERM loans with LOW interest. The article makes it sound like the government and the banks are just giving money away. The banks might just sit on the money and don't lend at all.
This is grea and will help the struggling small businesses get back on there feet after the long recession. NOw they will be able to update there equipment and hire back some employees to get the company back to where it used to be or better. It was sad to see how many businesses failed over the past years and hom much of it was lost to big coperations like Wal-Mart. Well have to wait and see how the companies use the money but I think it will be very positive.
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