Senate Finance releases changes to small business bill

The Senate Finance Committee released Tuesday night several changes to the substitute amendment to the small business lending and tax bill expected to be completed Wednesday. 

The substitute includes a $30 billion fund for community banks to lend to small businesses, estimated to raise $1.1 billion over 10 years. 

Republican Sens. George LeMieux (Fla.) and George Voinovich (Ohio) joined Democrats last week in voting to end debate on the amendment and add the fund they argue will help create jobs. 

Senate Democrats and Republicans are expected to reach an agreement on GOP amendments to the bill, which should smooth its passage. 

Agriculture disaster relief also has been added into the substitute for 2009 losses for crops, including specialty crops, livestock, sugar, aquaculture, cottonseed and poultry. 

The bill will provide approximately $1 billion in supplemental direct payments to producers with a minimum 5 percent loss in production. The aid also would provide $42 million in cottonseed assistance, $25 million in aquaculture assistance, $21 million to a Hawaiian sugar cane cooperative, $75 million to poultry producers, $50 million for livestock producers and $300 million for specialty crop producers. 

The program is expected to issue payment quickly through the Agriculture Department and state block grants. This provision is estimated to cost $1.5 billion over 10 years.

The changes to the substitute also include: 

• Elimination of the advanced earned income tax credit, which is used by only 3 percent of eligible EITC recipients, raising about $1.13 billion over 10 years.

• Addition of the Export Promotion Act to help small and mid-sized businesses with the resources needed to export their products. This change has no cost.

• Reallocation of $500 million of future spending allotted in the economic stimulus by returning food stamps benefits to the levels that individuals would have received in 2017 under pre-stimulus law, effective Aug. 31, 2017. This modification reduces the cost of the bill by $500 million over 10 years.

• Calls for use of predictive modeling to identify and prevent payment of improper claims submitted under Parts A and B of Medicare. This change increases the cost of the bill by $930 million over 10 years.