Oregon Public Broadcasting

Half of all small businesses report that their credit needs are not being met. 60 percent say they rely on credit cards -- instead of small business loans.

Community banks traditionally made those loans. They were hit hard in the economic crisis and new lending rules have made credit tight.

But this week, the Senate is considering a bill that would help community banks provide as much as $30 billion in additional lending.

Oregon Senator Jeff Merkley co-sponsored the bill. He says incentives will ensure the money gets out the door.

Jeff Merkeley: "If you don't lend out the money, then you are in situation where you pay a dividend of 7 percent back to the treasury. If you make the loans, you pay a one percent dividend back to the treasury, so there's a significant incentive."

But not everyone likes the idea. Several Senate Republicans oppose the bill on the grounds that it spends money the nation doesn't have.

Democrats counter that it should pay for itself as loans are paid back.