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Federal legislation that would create a $30 billion lending fund for small businesses has drawn mostly support from business groups, though some say that politicians are ignoring other issues important to small entrepreneurs.

The Small Business Jobs Act has some worthwhile provisions that will help small companies during a difficult time, such as a tax deduction for medical insurance costs for the self-employed, said Ellen Valentino, Maryland state director for the National Federation of Independent Business, a trade group for small companies. But small-business owners face a raft of other issues, including paying for new health insurance mandates, high energy costs and the estate tax, she said.

"There are a lot of pressing issues facing small-business owners that aren't being addressed," Valentino said.

Ronald Wineholt, vice president of government affairs for the Maryland Chamber of Commerce, said he has been too busy with health insurance matters to devote any time to the lending legislation in Congress.

The Maryland Health Care Reform Coordinating Council, which is tackling the federal health insurance bill, recently issued an interim report and formed work groups on issues such as creating an insurance exchange, bolstering the health care work force and transforming the health care delivery system. The groups are charged with completing their work before the final report is presented to Gov. Martin O'Malley (D) in January.

The National Association for the Self-Employed and National Small Business Association are among those actively supporting the bill, which is slated for further consideration after Congress reconvenes in September. Besides giving smaller banks, credit unions and other financial institutions with less than $10 billion in total assets more funds to lend to small companies, the legislation would provide $12 billion worth of tax relief, extend a 90 percent guarantee of loans made by the Small Business Administration and eliminate borrower fees on certain loans, proponents say.

How far the act will go depends on whether Democratic leaders can attract the support of a few more Republicans, said Kristin Oberlander, a spokeswoman for the self-employed group. In votes before the recess, Democrats were a handful short, she said.

The National Small Business Association also wants to see the repeal of expanded 1099 reporting requirements that passed as part of the Patient Protection and Affordable Care Act. That provision would require businesses to file a 1099 report on all companies with which they spend more than $600 annually.

Permanently repealing the federal estate tax would also help many small-business owners, Valentino said, such as many family farms and small companies.

"They worry about what will happen to their businesses if something happens to them," Valentino said.

Another key issue with many small companies is whether Congress will let income tax rates increase next year. Tax cuts enacted during then-President George W. Bush's administration are set to expire in December.

Harvey Metro, partner of Metro Metro and Associates, an accounting and consulting firm in Olney, said many of his clients support retaining the higher-bracket tax cuts, which President Barack Obama wants to let expire.

"While $250,000 may sound like a lot of money, it is not a ton of money in Montgomery County," Metro said. "Most small-business owners put the money they make back into their businesses."

Metro recently formed a new business venture, QwikShower.com, which provides wrapped, moistened towelettes that can be used by students who don't shower after gym classes or practices, as well as adults. He first targeted school and community groups in Florida and Texas because of their hot climates, and said it has caught on "pretty well."

kshay@gazette.net