White House turns up heat on small-business bill

The Senate’s final vote before the recess — on Supreme Court nominee Elena Kagan — could happen Thursday, providing about a day to push the measure through the upper chamber. 

Opposing the bill could come with political consequences, Axelrod said.

“Those who stand in the way of a vote on this are going to have to go home and face the small-business people in their states and explain why they held up progress on this, when people are out there starving for capital and the resources they need,” he said.

The bill has enough bipartisan support to pass but Democrats and Republicans have spent most of their time sparring over the number and type of amendments that would be offered to the bill. 

Late last week, it seemed the parties’ two leaders — Senate Majority Leader Harry Reid (D-Nev.) and Senate Minority Leader Mitch McConnell (R-Ky.) — were within striking distance of nailing down an accord before it unraveled on the Senate floor. 

Despite concessions from both sides the bill remained in a legislative quagmire. 

Republicans have complained that they were not allowed to offer any amendments, that Democrats were offering amendments unrelated to small business and that a $30 billion fund to spur lending to small businesses was a bailout. 

During the past couple of months, Democrats put off work on the bill several times to take up other matters. When they wanted to end debate and finish the bill, Republicans have voted against it each time. 

The measure provides about $12 billion in tax cuts and sets up a $30 billion fund to smooth lending from community banks to small businesses. It also increases the size of some loans through the Small Business Administration and would provide $1.5 billion in grants to small-business loan programs run by the states.

One small victory for Democrats was the approval of the $30 billion lending fund — sponsored by Florida Republican George LeMieux — and supported by fellow Republican George Voinovich (Ohio).

LeMieux has said he’d support the bill if Democrats were willing to consider GOP amendments. 

The bill has a growing number of supporters, including the National Federation of Independent Businesses.

“The fact that the NFIB specifically praised the small-business lending fund does make it more difficult for those who’d like to try to demagogue or mischaracterize it,” Sperling said.