By Andy Sullivan
WASHINGTON, April 14 (Reuters) - Small businesses could get increased access to loans, overseas markets and government contracts under a bill being prepared in the U.S. Senate, Democratic lawmakers said on Wednesday.
The bill is still taking shape but could include provisions suggested by President Barack Obama or already passed the House of Representatives, lawmakers said.
"This is a priority once we get it all together," said Democratic Senator Debbie Stabenow, who said it would likely be assembled by the end of May.
With the unemployment rate stuck at 9.7 percent, Democrats have made job creation a top priority ahead of the November congressional elections, though economists say the jobless rate is likely to stay high for the rest of the year.
Small businesses normally account for the bulk of new jobs, and Obama has proposed a series of policies aimed at enticing them to hire. Last month, for example, he signed into law a payroll tax break for businesses that hire unemployed workers.
But a survey released on Tuesday showed that small-business owners have little confidence in the economy and are in no rush to expand after the worst recession in 70 years.
Among the approaches that could be included in the bill, according to Stabenow and Senator Mary Landrieu, who heads the Small Business Committee:
- Raising the limit on Small Business Administration loans from $2 million to $5 million
- Redirecting money from the Troubled Asset Relief Program to small-business loans routed through community banks
- Eliminating capital-gains taxes on small business stock
- Expanding a tax deduction for start-up costs
- Boosting export programs for small businesses
- Improving access to government contracts and research grants.
Many of the programs have significant Republican support and Senate Majority Leader Harry Reid has promised to bring the bill up for a vote once it is completed, Stabenow and Landrieu said.
"I am very confident that we will have the necessary floor time to pass it," Stabenow said.
Floor time in the Senate will be at a premium as the chamber works to overhaul banking regulations, confirm a replacement for retiring Supreme Court Justice John Paul Stevens, and pass the spending bills needed to keep the government running.
Aside from the bill signed by Obama, Democrats' other job-creation efforts this year have been hampered by internal bickering and Republican opposition.
The job-creation push has also been slowed by concerns over spending as the country is projected to post a record $1.5 trillion budget deficit this fiscal year, though Obama officials have suggested the actual figure could be lower.
Stabenow said the bill's costs would be offset with spending cuts or tax increases elsewhere, but many of the most obvious "revenue raisers" have already been claimed for other jobs bills pending in Congress.
(Editing by Philip Barbara)