The Specialty Equipment Market Association (SEMA) is urging the U.S. Senate to pass H.R. 5297, the Small Business Jobs and Credit Act.
The act would create a fund of $30 billion that would provide banks with less than $10 billion in assets with the capital to lend to small businesses. The U.S. House of Representatives passed the bill in June.
"During the past two years, banking relationships have changed for many of our SEMA member companies," says SEMA CEO and President Chris Kersting.
"Businesses that have enjoyed years of profits and expansion had loan requests rejected and credit limits restricted. The reduction in access to capital is prolonging a stagnant economy and producing unnecessary anxiety for businesses and consumers alike."
In a letter to the Senate, SEMA has endorsed an infusion of capital into smaller banks. The bill also includes a SEMA-endorsed extension of a bonus depreciation program, which lets businesses write off 50% of the cost of newly purchased, depreciable property.
In addition, the bill would extend and expand provisions allowing companies to write off up to $500,000 in capital expenditures in tax years 2010 and 2011.
