By STEPHEN OHLEMACHER/ Associated Press Writer

      WASHINGTON (AP) – The House has passed a bill authorizing a $30

billion fund for community banks to increase lending to small

businesses.

      Banks that tap the fund must issue preferred stock to the

Treasury Department, paying dividends based on how much they

increase lending to small businesses. The more they lend, the lower

the divided payments.

      House Democrats projected that community banks would use the

fund to leverage up to $300 billion in loans to small businesses.

Republicans argued the bill would do little to increase lending

with no guarantee the money would go to small businesses.

      The bill is being merged with a package of tax breaks to

encourage investment in small businesses that passed the House

Tuesday. The package now goes to the Senate.