The U.S. House approved a small-business lending program, which would create a $30 billion government fund for increased lending to small businesses to spur economic growth.
The House voted 241-182, and the bill will now continue onto the Senate.
The $30 billion would be combined with another $3.5 billion that was part of another bill passed earlier this week. The House believes these funds will be able to generate up to $300 billion in loans to small businesses.
House Speaker Nancy Pelosi offered a statement on the importance of the financial buildup of the nation’s small businesses.
“America’s small business owners are the backbone of our economy,” she said. “With this legislation, we are helping to ensure they have what they need to be the engine of our recovery.”
The bill would combine unemployment aid, aid to state governments and renewal of tax breaks for businesses and individuals and would provide $2 billion to assist states rebuild the strength of their small businesses.
The cost of the $30 billion fund is estimated to be divided into $3.3 billion over 10 years to avoid being counted against the federal budget, as to ensure the amount of money lent out is paid back.