For those small business owners chopping on their fingernails and wondering whether the Senate will ever pass the Small Business Loan Bill (The Small Business Jobs and Credit Act of 2010—HR 5297)), you can now take a collective sigh of relief. Both the Senate and House have passed the bill which is now law. The bill has a number of provisions for small businesses, including tax breaks, job creation and preservation, and most importantly, a new way to fund small business loans. After all, there is no real resurgence of the economy without feeding our small businesses needed capital. But first things are first, so let us describe the purposes of the bill.

Here is the actual text with unofficial comments:

SEC. 105. CONSIDERATIONS.

In exercising the authorities granted in this title, the Secretary shall take into consideration--

"(1) increasing the availability of credit for small businesses." That is it in a nutshell, namely making small business loans available again. They have been shut down since the Fall of 2008.

"(2) providing funding to minority-owned eligible institutions and other eligible institutions that serve small businesses that are minority-, veteran-, and women-owned and that also serve low- and moderate-income, minority, and other underserved or rural communities" All businesses are struggling to receive funds, but the worst segment is the underserved: women-owned, veteran-owned, and minority-owned small businesses. They need a decidedly larger bite at the apple.

"(3) protecting and increasing American jobs". It is economics 101 that if a business is selling products and services, and even expanding, it will have to retain or even hire new employees.

"(4) increasing the opportunity for small business development in areas with high unemployment rates that exceed the national average". There are certain segments of our country that can really use help. What comes to mind is Detroit , New Orleans, Nashville after the flooding, and any area where factories have closed.

"(5) ensuring that all eligible institutions may apply to participate in the program established under this title, without discrimination based on geography". At one point, the SBA had limited some of their small business loans to specific areas called HubZones. Now every area is eligible.

"(6) providing transparency with respect to use of funds provided under this title". Banks are required to issue quarterly reports as to 1) how many loans and 2) who they are making them to. Congress must also make reports that are available for review as public information.

"(7) minimizing the cost to taxpayers of exercising the authorities". This is not a giveaway. The participating banks must issue either a promissory note of repayment or preferred stock. And, after ten years, the entire principal loan must be repaid.

"(8) promoting and engaging in financial education to expected borrowers". The banks are required to have outreach programs which describe the application process, who can apply, and hopefully engender interest.

"(9) providing funding to eligible institutions that serve small businesses directly affected by the discharge of oil arising from the explosion on and sinking of the mobile offshore drilling unit Deepwater Horizon and small businesses in communities that have suffered negative economic effects as a result of that discharge with particular consideration to States along the coast of the Gulf of Mexico." Everyone agrees that the economic repercussions are going to be felt for years in these areas.

The bottom line: not only is it a welcome bill, but it's priorities are in the right place. All of these purposes are salutary and definitely help the small business community.