The U.S. House Financial Services Committee approved a bill co-sponsored by Rep. Gwen Moore (D-Milwaukee) that is designed to help community banks increase lending to small businesses to help create jobs and foster economic growth.
The bill would make $30 billion in loans available to community banks at a 5-percent rate and provide incentive for community banks to increase lending for small businesses. The loan’s interest rate could drop to as low as 1 percent if a participating bank makes more loans to small businesses.
Many small businesses have indicated that the lack of access to credit is a major impediment to growth.
“Wall Street and big banks caused this crisis, but Main Street has continued paying the price. This bill helps community banks and small businesses that have been struggling in this recession,” Moore said. “Small businesses are the backbone of our economy and have created more than half of our nation’s new jobs over the past 15 years. This bill will help small businesses that are ready to grow and create jobs, but have been held back because of limited access to credit.”
The bill is expected to come before the full House in the coming weeks.
– BizTimes Milwaukee
