On Tuesday the Senate voted 61-37 in favor of moving forward on legislation to provide needed assistance to small businesses and banks. The final vote will come later this week.

The Bill, which is more heavily supported by Democrats, and criticized by a lot of republicans provides $12 billion in tax breaks to small businesses. It will also provide a $30 billion lending pool for community banks. George V. Voinovich from Ohio and George LeMieux from Florida are two Republican senators that supported the small business bill. The House is fully expected to approve it, as they have approved similar legislation in the past.

Former Presidential candidate and current Senator John Kerry, said, “This bill provides vital aid to the small businesses that can drive growth and create jobs in these tough economic times.”

Here are some of the details of the small business lending fund:

- Only banks with fewer than $10 billion in assets will be eligible for funds.
- Banks will have to pay a 5 percent dividend on capital from government investment.
- Banks will have to pay a 7 percent dividend if they don’t increase small business lending in the first 2 years.

Whether the bill ends up helping a stagnant economy, is yet to be seen. What do you think? Is the new Small Business Bill a good move or not?