By Jessica O'Neill
The Senate approved the bipartisan bill last week, voting 74-26. The legislation will raise the debt ceiling $900 billion and cut government spending, which Representative Steve Stivers (R-OH) calls "not perfect, but the package as a whole helps small businesses ..."
Benefits to consumers
Had this legislation not been passed, costs of student loans would have been raised as well as costs of cars and gas. The stock market would have gone down and interest rates would have gone up, according to Stivers.
"That was not something I was willing to play around with. We are trying to move the ball forward even if we don't all agree," Stivers said, "We are borrowing 42 cents on the dollar, which is not sustainable."
Stivers said he would have liked to see more cuts up front, but it is a good start and this issue will not be solved over night.
Senate Minority Leader Mitch McConnell (R-KY) told CBS News the legislation is "a first step - but it is a crucial step toward fiscal sanity."
How small businesses will be affected
"The package as a whole helps small businesses because it ensures the U.S. does not default on its credit," Stivers said.
Stivers explained that, without the legislation, the cost of taking out a business loan would have gone up and hurt people's ability to borrow, and this would have made banks tighten up on credit and tighten up on loans.
However, Stivers said the new legislation would help keep small businesses afloat.
"There will be no tax increases for small businesses and that is a big win for them and their ability to compete," Stivers said, "The president was calling for taxes on small businesses and that did not happen."
Stivers said a U.S. default would have been "catastrophic," leaving many unpaid, which is why he voted for the new legislation.