On Thursday the Senate passed the small business jobs bill aimed at encouraging community banks to expand small business lending. Officially titled the Small Business Jobs Act of 2010, the bill would establish a $30 billion fund called the Small Business Lending Fund to provide community banks access to additional capital to be used to increase small business lending.
The bill also contains built-in gains tax relief for Sub S banks. For any taxable year beginning in 2011, there would be no built-in gains tax on the disposition of assets during that taxable year if the bank's fifth year as an S corporation occurred prior to that taxable year.
The bill will now travel back to the House for approval since the version approved by the Senate differs slightly from the bill adopted by the House back in June. Speaker Nancy Pelosi indicated that the House would quickly vote to approve the bill, where it would then be sent to the President's desk for signature.