Obama signs bill creating $30B government fund to encourage small business lending, cut taxes

Obama signs $30B small business lending bill

WASHINGTON — President Barack Obama has signed a bill creating a $30 billion fund to help small businesses expand and hire. The bill also includes eight separate tax breaks for small businesses and a boost for Small Business Administration loan programs.

Obama says the incentives will help small businesses create jobs in the short term.

The legislation gives Obama and congressional Democrats a highly sought political victory five weeks before Nov. 2 elections in which voters are expected to vent their frustrations over a slow-growing economy and high unemployment.

The new fund would be available to community banks to encourage lending to small businesses.