The Small Business Jobs and Credit Act of 2010 would create a $30billion lending program to provide small businesses with $12bn in tax breaks, including more generous write-offs for equipment purchases.
The measure goes before the House for a final vote before being sent to President Barack Obama to be signed into law.
The loan funding will be administered by banks but will only be available to banks with less than US$10bn in assets.
The bill also contains tax cuts designed specifically to allow retail businesses to open new branches and upgrade existing ones.
Susan Eckerly, senior vice president of the National Federation of Independent Business, said: “Passing the Small Business Jobs and Credit Act is just the first step towards helping our nation's small business owners during these difficult economic times. While the bill will help some small businesses that qualify for the specified tax breaks or for new loans, it falls short of addressing the most significant problems facing all small business owners - lack of sales and uncertainty.
She added; “We urge Congress to continue to focus on small business issues by eliminating the uncertainty over taxes. Until small business owners have some certainty over what their tax liability will be in the future, they will not be able to make plans to invest in their business and hire new workers.”
