Small Business Act Now Law
President Obama signed into law the Small Business Jobs and Credit Act of 2010 on September 27. Under this bill (H.R. 5297, now PL 111-240), which NAR supported, the U.S. Treasury is authorized to lend up to $30 billion to interested community banks to expand small-business lending. The new law stipulates that loans are to be repaid over a 10-year period. As an incentive for community banks to participate and increase small business lending, the interest rate would be adjusted relative to the amount of their small business lending activity. Community banks could use the $30 billion lending fund to leverage up to $300 billion in new loans to small businesses.
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