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Why the small business jobs bill won’t create that many jobs.
By Jill Priluck, posted at Slate
It’s rare for small business to drive headlines, but the Small Business Jobs Act, passed by Congress last week, has brought the sometimes yawn-inducing and often misunderstood sector to the front pages.
Heavy on lending and tax provisions, the legislation has been touted as a means to spur job growth. But the bill is actually a Cash for Clunkers-like Band-Aid for the intertwined scourges of chronic joblessness and stymied growth. While the aid package will help many small businesses, it won’t create many jobs because it will benefit more established firms, rather than the young ones that do the bulk of hiring. Read the rest of this entry »
By Justin Velez-Hagan
National Executive Director
Washington, D.C., September 28, 2010. Yesterday, the president signed into law the Small Business Jobs and Credit Act. The bill has been touted as one of the best ideas for reinvigorating small business and job growth and, hence, deserves an analysis by The National Puerto Rican Chamber of Commerce, a staunch supporter of small business and entrepreneurship.
The legislation itself provides temporary tax incentives as well as a general account intended to provide local community banks with funding for small business lending. Although its intent is clear, language within the bill does not guarantee funding for small business lending. While 13 democrats voted against it, only 3 republicans supported the bill. One of those democrats, the Chairwoman of the House Small Business Committee and the first Puerto Rican woman elected to U.S. Congress, Nydia Velasquez (NY), voted against the bill amidst concerns that capital from the bill would not go to its intended source.
After examining the bill, it becomes clear that the tax incentives are temporary and greater strain will be placed upon small businesses, limiting their ability to stimulate the economy. Dr. Jeffrey R. Cornwall, the Director of the Center for Entrepreneurship at Belmont University, states that small business owners “don’t need more debt, they need more customers—and the government can’t provide those.”[i]
What Makes the Entrepreneur Tick? Read the rest of this entry »