House approves small-business aid bill

The House on Thursday gave final passage to a small-business bill, handing Democrats a victory on economic issues that are defining the midterm elections.

President Obama said he will sign the bill, which received scant Republican support, on Monday.

“The small-business jobs bill passed today will help provide loans and cut taxes for millions of small-business owners without adding a dime to our nation’s deficit,” Obama said in a statement. “After months of partisan obstruction and needless delay, I’m grateful that Democrats and a few Republicans came together to support this common-sense plan to put Americans back to work.”

The bill began with bipartisan interest, as both parties see small businesses as vital to the economic recovery.

But Republicans opposed the addition of the $30-billion small-business lending fund, which they compared to the 2008 bank bailout that provided $700 billion to create the Troubled Assets Relief Program.

Two Republicans joined Senate Democrats in passing the bill last week after a hard-fought campaign. Most House Republicans also voted against.

The bill creates the $30-billion lending fund to help smaller banks make loans to businesses, and offers $12 billion in business tax breaks to encourage investment, entrepreneurship and hiring.

With the tax cuts, businesses would be able to write off more of their costs of buying equipment or making shop improvements. Those who are self-employed could deduct healthcare costs from the self-employment tax.

The bill would also continue to waive Small Business Administration loan fees that had been cut as part of the 2009 recovery package.

The cost of the bill is offset by closing tax loopholes and increasing tax reporting requirements and penalties.

Democrats estimate the legislation could create 500,000 jobs.

lmascaro@tribune.com