In an effort to stimulate job growth and revive entrepreneurship, President Barack Obama signed a $42 billion bill on Sept. 27 to help small businesses in the United States.
The Small Business Jobs Act authorizes the creation of a $30 billion fund that will allow banks to increase their lending amount to small companies. The legislation, which was approved by Congress last week, also provides new tax breaks to small businesses, increases Small Business Administration (SBA) lending limits and waives SBA loans fees.
Obama called the bill "a great victory for America's entrepreneurs." Top Republican officials, however, were not as enthusiastic.
"Unfortunately, this bill does nothing to help end the uncertainty that is crippling job creation and hurting small businesses," House Minority Leader John Boehner (R-Ohio) said. "Instead it puts taxpayers on the hook for even more bailouts."
According to a recent survey by the Office Depot Small Business Index, most small business owners have no intention of adding jobs in the near future. Of those surveyed, 81 percent said they are not expecting to hire new staff within the next six months. Hesitant business owners cited reasons such as fear of higher taxes, increased healthcare costs and economic uncertainty.