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Stimulus moves on to business
Sen. Jeff Sessions (R-AL) speaks out at news conference on economic stimulus package, with Sen. Tom Coburn (R-OK), left, and Sen. Robert Bennett (R-UT), right
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TEXT OF STORY
Scott Jagow: The House version of the stimulus package passed without a single yes vote from a Republican. But in the Senate, a compromise could be in the works. President Obama says he'll consider some changes to the bill, and some Republicans have already signaled their support. Next week's debate will probably focus on businesses. More from our senior business correspondent, Bob Moon.
Bob Moon: At the American Enterprise Institute, tax and budget policy scholar Alan Viard says on balance, the plan could use more business incentives. But he says the size of the package troubles him more. It's now approaching $900 billion.
Alan Viard: My main concern really is scaling back the appropriated spending part of the bill, more than it is with increasing any part of it. But I think that there probably is room for a little bit more on the business side.
On the other hand, Viard says some of the tax breaks for businesses already included would be beneficial.
And at the Brookings Institution, senior fellow Stephen Hess says this is one debate where businesses are bound to walk away with something they like -- one way or another:
Stephen Hess: It's hard to talk about business interests losing out, because there are business interests on every side of every issue.
Among the proposals already included in the Senate version is a provision allowing companies to defer taxes this year and next that would otherwise be owed for restructuring or retiring debt.
I'm Bob Moon for Marketplace.
In response to Rick from Nashville, In, I sit on the Board of Directors of a small community Bank and also serve on the loan committee. Banks are still lending, rates are very competitive and standards, with regards to loan to value, are high as Banks must make sure that the borrower has enough "skin in the game". We are a commercial lender specializing in small business lending.We have not changed our underwriting standards in 5 years and have money to lend.
No stimulus package would be effective without addressing the the core problem facing small businesses today: the lack of liquidity due to the fact that our banks are no longer engaged in the banking business. Recall that in the old Soviet Union, the price of bread was carefully regulated. Unfortunately, the shelves were bare. Interest rates are low, but no one's lending anymore. I run a small business, and this is the principal (no pun) challenge I face. Perhaps Congress could bypass our moribound banks and lend directly to us, and force the banks to buy that paper with TARP funds.
