Troubled Assets Relief Program (TARP)
ARC Loan Program’s Future in Doubt
Since the program’s announcement six months ago, the America’s Recovery Capital (ARC) Loan program has had difficulty gaining traction. ARC loans, which are fully guaranteed by the SBA , were designed to offer relief to well established, profitable small businesses. The program’s future may be in doubt due to pending legislation drafted by Senator Olympia Snowe (R-Maine) citing program ineffectiveness and complaints from the banking community. According to Entrepreneur magazine, the program’s future is still being debated .
Committee Looks to Extend Vital Tax Incentives for Small Businesses
With an eye towards assessing the expiring incentives critical to small business growth and stability, the United States Senate Committee on Small Business and Entrepreneurship sponsored a roundtable discussion entitled “What is Working: Tax Incentives to Aid Small Business Recovery” on December 3, 2009. Hosted by Chair, Mary L. Landrieu, D-Louisiana. , and Ranking Member Olympia J. Snowe, R-Maine , the event focused on what small businesses need to get the economy back on track and how to create jobs for American workers. “At a time when the American economy is deep in recession, it is vital for Congress to continue to enact pro-growth policies that will expand. Read More.
Obama Outlines Additional Stimulus Effort for Next Year
President Obama announced yesterday that he is currently working with Congressional leaders on a new economic stimulus package that will include tax cuts and new spending. Many of the initiatives outlined include incentives for businesses to create jobs, construction spending for roads and other infrastructure projects, and weatherizing rebates for homeowners. Consideration of the proposed legislation will not occur until early next year. As reported today in The New York Times : The president’s new proposals include eliminating capital gains taxes on small business investment and creating “cash for caulkers” rebates for consumers who invest in home-weatherization projects — an idea modeled on the popular “cash for clunkers” program that. Read More.
Treasury Acts Further to Limit Executive Compensation
Over the last two weeks, the Obama Administration has announced new oversight regulations for the Troubled Assets Relief Program (TARP), which are designed to further limit executive compensation. Although these new guidelines are currently limited to financial institutions that participate in TARP under the Emergency Economic Stabilization Act (EESA), there are strong indications that even non-participating financial entities will be subject to stricter regulations in the near future. The following is a brief summary of the new rules and projected outlook: Current and Future TARP Participants (Capital Purchase Program (CPP) and Term Asset-Backed Securities Loan Facility (TALF)) Programs Compensation Committees. Read More.