Congressman Scott Murphy was joined by local business leaders in unveiling new legislation to help small businesses create jobs. The Business Checking Fairness Act would repeal a law dating back to the Great Depression that prevents small businesses from earning interest on their business accounts. Unlike individual checking accounts that earn interest on individual deposits, banks are prohibited from paying interest on business checking accounts by the outdated Banking Act of 1933. The additional available capital for small businesses would promote growth and job creation.

“This is one of those outdated laws that has no business being on the books. I look for common sense solutions to problems, and this law making it illegal for small businesses to receive interest on their checking accounts simply doesn’t make sense,” said Rep. Murphy. “The Business Checking Fairness Act would increase competition among banks and lift an unfair burden from our small businesses during these tough economic times.”

To read more about the legislation click here.