By: Robb Mandelbaum
New York Times
Business Day - Small Business
Monday, September 27, 2010
Most of the controversy surrounding the small-business jobs bill that cleared the House of Representatives on Thursday - after nearly a year of discussion - concerned a $30 billion small-business lending fund to be established by the Treasury Department.
But like most of the legislation, the lending fund is a temporary fix. It will make investments in banks for just one year. The tax breaks in the bill, worth about $12 billion, are mostly good for a year or two.
But one part of the bill, which President Obama will sign into law on Monday, also makes permanent and far-reaching changes to the Small Business Adminstration's guaranteed loan programs - it both allows banks to make much largers loans and permits bigger businesses to take advantage of them - changes that have not been widely discussed. Taken together, these measures potentially could alter the essential character of the S.B.A.'s borrowers - it could make them not very small.
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