Plan would give businesses tax credit for new hires

February 8, 2010 3:18:02 PM PST
Senator Dick Durbin outlined new legislation Monday aimed at spurring job growth by providing small businesses with better access to loans and credit.

Senator Durbin visited a pastry shop in Chicago's Old Town neighborhood Monday.

Under the proposal, Durbin says the federal government would take some of the tarp money that is being paid back and distribute $30 billion to community banks to loan to small businesses. Those loans would be backed by the government.

The plan would also give small businesses a tax credit for hiring new workers.

"If you will expand your workforce and hire someone who has been unemployed, we will help you pay their salary with a tax credit to the business," said Sen. Dick Durbin, (D) Illinois.

Durbin says the proposed tax credit would apply toward hiring people who have been unemployed for at least six months.