WASHINGTON — The Senate passed long-delayed legislation Thursday designed to open up credit to small businesses and award them with other incentives to expand and hire new workers.
Democrats won a 61-38 vote to pass the legislation, joined by two Republicans. The measure would establish a $30 billion government fund to help open up lending for credit-starved small businesses, cut their taxes and boost Small Business Administration loan programs.
The tally gives President Barack Obama and his besieged Democratic allies in Congress a much-sought — but relatively modest — political victory with less than seven weeks to go before Election Day.
Obama said Thursday that the bill will help millions of small business owners across the country grow and hire.
The new loan fund would be available to community banks to encourage lending to small businesses. Supporters say banks should be able to use the fund to leverage up to $300 billion in loans.
The loan fund is opposed by most Republicans, who liken it to the 2008 bailout of the financial system. They warn it would encourage banks to make loans to borrowers who aren’t good risks.
Democrats say the measure is needed to help small businesses cope with a credit crunch that worsened dramatically after the financial crisis two years ago.
The bill returns to the House, where Speaker Nancy Pelosi said the chamber will take it up next week.
