Wilson aims to boost small businesses

Photo

Charlie Wilson

By DAVID SKOLNICK

skolnick@vindy.com

CANFIELD

U.S. Rep. Charlie Wilson said legislation he’ll introduce today would make it easier to obtain loans to expand and start small businesses.

The proposal, announced Monday, would give banks loaning money to small businesses a tax credit of 1 percent of the amount of the loan, said Wilson, of St. Clairsville, D-6th. That would mean the federal taxes owed by the banks would be reduced by 1 percent of the amount loaned.

The banks would receive the tax credit for 20 small-business loans a year. Each loan could be for as much as $500,000.

“We need small businesses to keep creating new jobs,” Wilson said. “But in order for small firms to play their job-creation role, they need the right tools. Without access to capital, small businesses have a tough time keeping their doors open and their employees working.”

Albert Blank, First Place Bank’s president and chief executive officer, praised Wilson’s proposal — the Small Business Lending Incentive Program Act of 2010.

“We’re looking forward to this program” being enacted into law, Blank said.

Blank, Ralph J. Lober II, president and chief executive officer of Consumers National Bank as well as local small-business owners joined Wilson at the Inner Circle restaurant in Canfield for the announcement that the congressman would introduce the bill.

Wilson said the proposal stems from a meeting he had in February with small-business owners and bankers.

The small-business owners at Monday’s announcement say obtaining bank loans isn’t easy.

Henry Nemenz, who owns grocery stores in the Mahoning Valley, wants to build a bakery and a shopping plaza in Wellsville.

“We can create a lot of new jobs” if Wilson’s proposal is signed into law, he said.

“Small businesses must be able to access capital to either get their new venture off the ground or to expand their operations,” Wilson said. “Given how tight the credit market has been, that’s a challenge that every business in every community has been facing.”

The bill will be referred to the U.S. House Committee on Financial Services, of which Wilson is a member.