U.S. Senate approves small-business aid

U.S. Senate approves small-business aid

Following months of stalling, the United States Senate passed a small-business aid measure on Thursday that gives President Barack Obama an election year triumph but shows how tough it has become for lawmakers to work together to find ways to lift the economy and address unemployment.

The bill was approved in a 61-38 vote, with two GOP representatives crossing party lines to vote for the bill.

Thursday's approval of the piece of legislation would establish a small-business lending fund and give tax breaks worth $12 billion to aid companies in hiring workers and investing more. The bill is expected to be approved without problems in the House.

The small-business package, designed to help a sector which is believed by both parties to be a key element of an economic recovery, has been the center of heated debate for months between both parties and highlights the deep partisanship ahead of the midterm elections.

“It tells you the depth of the gridlock and dysfunction that unfortunately has gripped the Congress,” said Sen. Evan Bayh(D-Ind.). “Hopefully, some of that will abate after the election.”

The outcome of the bill has been closely followed by small businesses based in Southern California, where they are considered a backbone of the economy and has been severely affected by the recession.

Bipartisan support was seen initially to back up the bill, but a later revision to add the $30-billion lending fund to provide companies much-needed capital created partisan divisions.

“While I am grateful for this progress, it should not have taken this long to pass this bill,” President Obama said, who promised to swiftly sign the bill into law.

Posted by James Fried on Friday September 17 2010, 12:36 PM EST. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0