Senate Committee Approves Funding Bill for Small Business Administration

Senate Committee Approves Funding Bill for Small Business Administration
Cornyn Says Measure Includes Private Disaster Loan Program to Speed Hurricane Recovery Funding, Other Needs

U.S. Sen. John Cornyn, a member of the Small Business and Entrepreneurship Committee, applauded the committee's approval Thursday of a bill to reauthorize funding for the Small Business Administration (SBA), which helps homeowners and small business owners recover from hurricane damage.

"This SBA bill is particularly important because it will allow the agency to begin a new private disaster loan program in the coming year," Sen. Cornyn said. "So it's encouraging to see this important legislation moving forward."

The bill to reauthorize SBA includes changes to allow the agency's disaster loan program to be more responsive in the wake of disasters such as Hurricane Rita.

"The new provisions in this legislation will enable more local control in disaster response efforts by allowing private banks to offer SBA-backed loans," Sen. Cornyn said. "By cutting red tape, private local lenders will be able to offer assistance more rapidly following disasters like Hurricane Rita."

One example why this bill is necessary to cut red-tape and speed the process is that SBA has approved thousands of low-interest loans to homeowners and small business owners in counties affected by Hurricane Rita, but many of them have not been distributed yet.

"Small businesses are an important engine for jobs in our state and we should continue to support them," Cornyn said. "I'll continue working to encourage free market innovation and economic expansion in our state. We need to ensure that Texas and our nation remain the most business and job friendly places in the world."

The SBA re-authorization bill now moves to the full Senate for consideration.

http://cornyn.senate.gov/index.asp?f=record&lid=1&yid=1&rid=237226&pg=1