Yesterday, a $42 billion jobs bill passed that is aimed at relieving credit stress for small businesses across the country.  Supporters say the bill could create 500,000 jobs within the small business community.

The bill would authorize $30 billion in funding, including $12 billion in tax breaks, to be managed by the Treasury Department.  The idea behind the legislation is to provide community banks with a flow of capital since they are the financial institutions largely responsible for lending to the small business community.  The banks will give much needed capital and generous tax write-offs to Main Street. 

What does this mean for you?

• Loans – In this economy, credit has been difficult to come by.  This bill means that the loan you needed to support your business during these difficult times might be within your grasp now. 
• Tax breaks – The bill includes conditions under which small business owners may be eligible for tax relief, including one for the purchase of expensive equipment.
• Jobs – The boon to small businesses will of course create jobs, which, in turn, should give the economy a boost in the arm.

The bill, which passed in the Senate on a 61-38 vote, still needs to be passed by the House before the president signs it. The bill will not only improve chances of securing a loan from community banks, it will also stimulate grants for state-lending programs, which turn into loans.  For more information on loans and grants, see the below resources.

Want to learn more? Check out these resources.

• The Small Business Administration: http://www.sba.gov/
• Small Business Loans: http://www.smallbusinessloans.com/
• Credit Process Guide: http://www.newyorkfed.org/education/addpub/credit.html