Small business aid

Many small businesses are hoping the U.S. Senate will revive a business aid bill that stalled earlier this summer, USA Today reports.

In fact, they are taking a wait-and-see attitude, neither hiring, buying supplies or expanding for the time being.

The legislation would grant tax breaks and waive loan fees for small enterprises. The government would provide $30 billion to help community banks extend loans to small businesses.

About 1,000 businesses "have their bank papers all done and will be funded in the days — moments — after the bill passes," Karen Mills, U.S. Small Business Administration administrator, told the newspaper.

Under the measure, the government would guarantee as much as 90 percent on some loans, which would help banks immensely. Community banks with assets of $10 billion or less would be eligible to make use of the $30 billion fund.

Tax breaks worth $18 billion would go into effect if the bill passes. The maximum level for certain loans could rise to $5 million from the current $2 million.

Critics argue that the plan to help small enterprises is a miniature version of the TARP program that applied to large banks.

Yet the economy has slowed considerably. Lending is sluggish. Unemployment continues to be high. Many signs point to stagnation.

If so many small businesses are eyeing this legislation, it warrants strong consideration.