Soul Hangout: CQ Politics | Lending Fund Will Be Offered as Amendment to Small-Business Bill

7/21/2010

CQ Politics | Lending Fund Will Be Offered as Amendment to Small-Business Bill

CQ POLITICS NEWS
July 21, 2010 – 1:22 p.m.

Lending Fund Will Be Offered as Amendment to Small-Business Bill

Senate Democrats will strip a $30 billion lending fund from a small-business bill this week, then add it back next week as an amendment, according to one of the fund’s main champions.

Sen. Mary L. Landrieu , D-La., said the amendment vote would help highlight Republican obstruction of a program that was built on the public-private model they often tout.

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“It’s using the power of the private sector community banks to lend to healthy businesses,” said Landrieu, who chairs the Small Business and Entrepreneurship Committee.
The fund would direct money to well-capitalized banks, which would get preferential interest rates from the government if they increased lending to small businesses.
Majority Leader Harry Reid , D-Nev., could act later Wednesday to set up a Friday vote to limit debate on the small-business bill — or earlier, if Republicans agree.
The exact procedural maneuvers to set up votes were still unclear, but Landrieu said the addition of the fund would be the only substantive amendment allowed and that it would attract the 60 votes needed to surmount a filibuster. Democrats control 59 votes, and she expects enough Republicans to join them to attach the amendment.
“The package will be whole when this is adopted,” she said.
The bill also includes a $12 billion in tax incentives and enhancements to government programs that assist small businesses.
Republicans have criticized the proposed fund, calling it similar to the Troubled Asset Relief Program enacted in 2008 to bail out the banking sector. They say they worry that the money could be used for purposes other than lending to small businesses.