Introduction of the Jumpstart Housing Opportunities Utilizing Small Enterprises Act of 2016

Floor Speech

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Mrs. BEATTY. Mr. Speaker, recent studies show that 21.3 million households pay more than 30 percent of their incomes towards rental housing, up from 14.8 million in 2001. In turn, the demand for low-cost rental housing has increased as the supply of affordable rental units has decreased. Nationwide, there is a shortage of affordable housing options available to low- and middle-income Americans. That is why I am introducing the Jumpstart Housing Opportunities Utilizing Small Enterprises Act of 2016 or Jumpstart HOUSE Act.

In 2010, President Obama signed the Small Business Jobs Act, P.L. 111-240, which created the State Small Business Credit Initiative (SSBCI). Funded with $1.5 billion, the SSBCI disperses funds to participating states who in turn use credit support programs and state- sponsored venture capital programs to award funding to small businesses. Without reauthorization, the SSBCI is set to expire at the end of FY17. The Jumpstart HOUSE Act would reauthorize the SSBCI program for an additional 8 years with $1.5 billion in new funding. Additionally, it will improve the program by requiring state business development agencies to set aside the lesser of $2.5 million or 10 percent of unobligated funds, for small businesses to purchase, rehabilitate, or operate affordable housing units.

Since its inception, the SSBCI program has created or retained over 140,000 jobs, as well as, supported over 12,400 private sector loans to small businesses, 42 percent of which were made to low- and moderate- income communities. As we continually look for ways to advance economic growth, it is critically important to renew the SSBCI program to increase availability of credit for small businesses, generate jobs, and stimulate economic development. It also is critically important to improve the program by amending it to direct funds to job-creating small businesses that focus on increasing the stock of affordable housing units. The Jumpstart HOUSE Act would accomplish both of these goals.

The SSBCI program has demonstrated proven success in leveraging federal dollars to generate private access to capital for small businesses. Let's build off of SSBCI's success and extend it to increasing the supply of affordable housing nationwide.

I urge my colleagues to become a co-sponsor of the Jumpstart Housing Opportunities Utilizing Small Enterprises Act of 2016.

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