Obama Tells GOP Stop Obstructing Small Business
DETROIT — President Barack Obama trashed Republican lawmakers on Saturday. One day earlier, Republican senators had united to filibuster a small business bill that would create a $30 billion loan fund for credit-squeezed small businesses. The bill also includes a $12 billion tax break for small businesses and small business lending assistance to states.
A top priority for the administration, the bill has now been effectively delayed passage until after the August recess of the Senate. That puts this bill in place as a hot campaign item for the November elections.
"I’m calling on the Republican leaders in the Senate to stop holding America’s small businesses hostage to politics, and allow an up-or-down vote on this small business jobs bill," said the President in a speech given from a General Motors auto plant in Detroit, Michigan.
Earlier in July, the International Franchise Association urged the Senate to pass the small business bill. “Given the extreme difficulty many current and aspiring entrepreneurs are facing in this economy, this increase will allow more individuals to access the capital they need to maintain existing jobs, while also creating new job opportunities, “ said David French, the association’s vice president of government relations.
The association threw its weight behind two Democratic Senators, Max Baucus (D-Mont.) and Mary Landrieu (D-La.). The two Senators’ amendment to the bill would increase the loan amount that the Small Business Administration can guarantee: SBA 7(a) loans would increase to $5 million per business and the 504 program to $5.5 million.
The trade group said that nearly half of its members, made up of largely firms that license franchise rights and their supporting vendors, had voiced that access to capital was the biggest issue they faced. “Updating and improving the SBA loan programs so that more franchise business owners can obtain the necessary start-up capital will create jobs and help lead our economy on a road to recovery,” French said.
But on Thursday, Republican Senators were able to unanimously filibuster the amendment offered by Senate Small Business Committee Chairman Landrieu and Finance Chairman Baucus. According to the Associated Press, the reason for the GOP holdup is that Republican lawmakers want to include amendments that would beef up border security, halt government spending and lower the estate tax.
The filibuster was the second setback that the GOP gave to Democrats in the same week. Earlier, Senate Majority Leader Harry Reid (D-Nev.) had to pull a bill aimed at helping cash-strapped farmers.
On July 12, the International Franchise Association warned Senate lawmakers in a letter (pdf) that it and its members would remember who voted against this key issue. "The IFA will consider all votes on this measure among our annual list of 'Key Votes,' " it declared.
In addition to having better access to credit, President Obama also asked the GOP to please allow lower taxes for small businesses. “I can’t imagine anything more common-sense than giving additional tax breaks and badly-needed lending assistance to America’s small business owners so they can grow and hire. That’s what we’re trying to do with the Small Business Jobs Act,” the President declared.
--
Related Reading:
- Republicans block small business lending bill, AP
- GOP hands Reid second legislative setback of the week, The Hill
- Republicans continue Senate filibuster of small-business bill, stymie Democrats, Washington Post
- Barack Obama spars with GOP over small business bill as stats show weak economy, rising unemployment, NY Daily News
- Franchise topic:
- Enter Your Own Tag:
