SEMA Urges Senate to Pass Small Business Lending Bill - Engine Builder Magazine
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SEMA Urges Senate to Pass Small Business Lending Bill

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The House passed the bill in June. The legislation would
create a $30 billion fund to provide banks with less than $10 billion
in assets access to capital to lend to small businesses.

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“During the past two years, banking relationships have changed for many
of our SEMA member companies,” said Chris Kersting, SEMA president and
CEO. “Businesses that have enjoyed years of profits and expansion have
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 supported an infusion of capital into
smaller banks, with incentives for those banks to offer small business
loans. The funds could be crucial in supporting job growth and economic
expansion.

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The bill also includes a SEMA-endorsed extension of the bonus
depreciation program, which allows businesses to write-off 50 percen of
the cost of newly purchased depreciable property. The depreciation was
permitted in 2008 and 2009. A one-year renewal would encourage
companies to invest in newer, more efficient equipment and spur sales
and create jobs.

The legislation would also extend and expand the Section 179 provision,
which allows companies to write-off up to $500,000 in capital
expenditures in tax years 2010 and 2011. Coupled with the extended time
period, this expansion would represent a doubling of the current limit.

“SEMA will continue to work with lawmakers, regulators and the banking
industry to spur lending,” said Kersting. “Making money and credit
available to industry is the lifeblood to this nation’s economic
growth. Enacting H.R. 5297 into law is vital towards achieving this
goal.”

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