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US House of Representatives to vote on Small Business Lending Fund act

June 2010

The US House of Representatives is due to vote today on the Small Business Lending Act of 2010, a bill designed to promote private sector small business lending and allow American states to create or strengthen existing innovative small business lending programs.

The first section of the two-part bill will help small, local private lenders provide credit to small businesses at reasonable terms. Under the program, small lenders can access capital from a small business lending fund that must eventually be paid back, with interest. Government capital of $30 billion will generate up to $300 billion in private sector lending to small businesses.

The bill is championed by Michigan Representative Gary Peters, who stated "Small businesses create two in every three American jobs. Helping them innovate and expand has got to be our top priority right now. Small business owners across Southeast Michigan tell me they are ready to expand again but cannot because Wall Street banks just aren't lending to Michigan small businesses. We need to take action to free our small businesses so they are not reliant on Wall Street to grow."

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