PROVIDENCE, RI - U.S. Senators Jack Reed (D-RI) and Sheldon Whitehouse (D-RI) today joined with local small business leaders and Bruce Tillinghast, chef/owner of New Rivers restaurant, Merrill Sherman of Bank RI, and Bill White of Coastway to discuss how the recently passed Small Business Jobs Act will reduce the tax burden on small businesses, restore jobs, and help bolster confidence in the economy by unlocking frozen credit markets.

The Small Business Jobs and Credit Act will establish a $30 billion lending fund for small businesses; provide $12 billion in tax breaks; and enhance federal programs that support small businesses. More than 10 community banks in Rhode Island are eligible to receive these funds to lend to local businesses throughout the state.

"This package of tax breaks and other incentives will ensure that small businesses can get access to the capital and credit they need. Passing this legislation is an important step toward jumpstarting the economy, aiding local businesses, and putting more Rhode Islanders back to work," said Reed.

"Today we saw how one local business was helped by having access to necessary capital. Unfortunately, there are many businesses out there who are still struggling to obtain the loans they need to stay afloat," said Whitehouse. "The small business bill we passed yesterday will help generate more success stories like this one with tax cuts for many small businesses and a $30 billion loan fund to provide needed capital through our community banks."

The new $30 billion loan fund created by this legislation would be available to community banks to encourage lending to small businesses, and may be used to leverage up to $300 billion in loans to qualified small businesses.

Key provisions of the Small Business Jobs Act include:

• Creating a targeted $30 billion Small Business Lending Fund to provide small community banks with capital to increase small business lending;

• Providing small businesses with $12 billion in tax cuts;

• Giving investors 100% exclusion from capital gains taxes on small business investments;

• Reducing the tax burden for small businesses by allowing them to carry back general business tax credits to offset their tax burdens from the previous five years. Small businesses will also be able to count the general business credits against the Alternative Minimum Tax (AMT), freeing up capital for expansion and job growth;

• Increasing Small Business Administration (SBA) loan limits and improving access and lowering costs for small business to access SBA loans;

• Providing $1.5 billion in grants to support $15 billion in new small business lending through already successful state programs;

• Increasing Section 179 expensing - permitting up to $500,000 in capital investments that businesses can expense;

• Increasing to $10,000 the tax deduction for start-up expenditures - doubling the current levels;

• Establishing a new State Export Promotion Grant Program (STEP), which would increase the number of small businesses that export goods to other countries;

• Creating new tools to help small businesses export goods, which could help leverage more than $1 billion in exports; and

• Allowing self-employed individuals to deduct health insurance costs for purposes of paying the self-employment tax.

Now that the bill has been passed by the U.S. Senate, it must be approved by the U.S. House of Representatives before it goes to President Obama's desk to be signed into law. The House is poised to take up and pass the measure next week.