Veterans Entrepreneurship Act of 2015

Floor Speech

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Ms. VELÁZQUEZ. Mr. Speaker, I yield myself such time as I may consume.

For the past 4 years, our Nation has faced economic headwinds, but was able to break through and strengthen considerably.

In that time, over 12 million jobs have been created, the stock market has come roaring back, and optimism in the small business sector has returned to prerecession levels.

As we all know, small businesses are the driving force in our Nation's economy, creating two out of three new jobs and producing roughly 50 percent of our GDP. In order to fulfill that role, they need capital.

One option is SBA's 7(a) Loan Program, which has been very popular over the past 2 years. In 2014, the program made over 52,000 loans, totaling $19 billion, one of its best years since 2007. SBA carried that momentum into 2015, growing another 20 percent overall, which brings us to today.

Due to this unexpected robust lending activity, SBA learned it will reach its $18.75 billion lending cap before the end of the year, cutting off thousands of borrowers.

The chairman is totally correct when he talks about the issue of SBA not notifying Congress in the proper time.

Last week I introduced H.R. 3132 to raise the cap to $23.5 billion, giving SBA over $4 billion in additional authority to provide capital to deserving small businesses. Unfortunately, the cap was reached on Thursday before we could get that bill to the floor.

Today's bill includes my language to raise the lending cap to $23.5 billion. It will mean a significant capital infusion into the economy.

With these types of loans flowing again, small companies will have more resources to expand their facilities, reinvest in their operations, and create jobs.

When a small manufacturer can access these loans, they can build additional warehouse space, creating both short-term and long-term employment opportunities.

Restaurants and retailers can use this capital to pay vendors, freeing up funding to keep employees on their payrolls, and potentially hire more workers.

This bill does require additional reporting requirements and other changes at SBA. While I would have liked to have seen a clean increase in the authorization level, we all recognize the critical role the 7(a) program plays. This compromise will turn the spigot back on, helping entrepreneurs grow and create jobs.

I want to thank Senators Vitter and Shaheen, Leader Pelosi, Ranking Serrano, and especially Chairman Chabot for working in a bipartisan manner to bring this bill to the floor.

I reserve the balance of my time.

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Ms. VELÁZQUEZ. Mr. Speaker, I yield myself the balance of my time.

Evidence points to an economy that is slowly but surely on the mend. The Federal Reserve reports banks are more willing to lend and small business demand is clearly picking up at an accelerated pace. This month alone, SBA has guaranteed over $3 billion in the 7(a) program--an all-time record.

Providing the Agency with additional lending authority will ensure creditworthy firms will continue to have access to low cost capital for the rest of the fiscal year.

I want to again thank Chairman Chabot for working with me to bring this bill to the floor.

I ask my colleagues to support this bill, and I yield back the balance of my time.

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