Temporary Extension of Programs Under the Small Business Act and the Small Business Investment Act of 1958
TEMPORARY EXTENSION OF PROGRAMS UNDER THE SMALL BUSINESS ACT AND THE SMALL BUSINESS INVESTMENT ACT OF 1958 -- (House of Representatives - March 31, 2004)
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Ms. VELÁZQUEZ. Mr. Speaker, I yield myself such time as I may consume.
(Ms. VELÁZQUEZ asked and was given permission to revise and extend her remarks.)
Ms. VELÁZQUEZ. Mr. Speaker, first I would like to thank the chairman and the House leadership for their commitment and willingness to resolve this program in a bipartisan manner.
In today's jobless recovery, small businesses are more important than ever. That is because small businesses are this country's main economic driver. They are this country's main job creator, and they are this country's number one employer. They are the backbone of the American economy.
One big challenge for small businesses is access to capital. Studies have shown that too many entrepreneurs finance their great ideas with credit cards. And this puts them into debt even before they get their businesses off the ground.
That is exactly why the SBA loan programs are so critical. These programs fill a financing gap for small firms, making loans on great ideas that may not have been looked at twice or invested in it at all. In fact, last year, the SBA's 7(a) flagship loan program provided hundreds of thousands of small businesses with billions of dollars that was then pumped back into the U.S. economy.
Yet, for all the good the 7(a) program has done, it recently fell on tough times. The program was shut down at the end of last year and was later reopened but with severe restrictions in place. Just after the program hit these bad times, so did the small business owners that were trying to secure loans. Suddenly, their plans to hire employees, expand their operations or purchase new equipment were put on hold; and, as a result, job creation was put on hold for the American economy overall.
I am happy to say to all those small business owners out there who have suffered, we are going to make the 7(a) loan program whole again with the bill before us today. This program that has helped countless entrepreneurs turn their dreams of business ownership into reality is back, and hopefully it is here to stay.
In H.R. 4062, we ask lenders to shoulder greater responsibility for the program, but we are also giving them a new tool by raising the guarantee rate from $1 million to $1.5 million. In doing this, lenders will be able to guarantee more loans, more money will flow into the American economy, and small firms will be able to create more jobs.
This fix will support our small businesses that create good-paying jobs right here in the United States, unlike the large multinational corporations that move jobs overseas in search of cheap labor and lax environmental standards without
even thinking twice.
Our solution will especially help small manufacturers who have been hard hit, like Elliot Moses, a small businessman from Sandy, Utah, who was left on the edge of financial ruin when the 7(a) program was closed. Now he and thousands of other manufacturers can get the loans they need to stay competitive, strengthen their operations here in the U.S. and hire more American workers.
With H.R. 4062, we pave the way to success for manufacturers and small businesses everywhere. With this bill, we make sure small businesses have access to capital. With this bill, we make sure small businesses can invest in their ventures, purchase new equipment, expand and create jobs. With this bill, we will be giving our economy the shot in the arm that it needs right now; and with this bill, we also give new hope to the 8.2 million unemployed Americans that something is being done to transform the current jobless environment into one of work and prosperity.
If my colleagues support our Nation's economy, if they support job creation, then I urge my colleagues to support H.R. 4062.
Mr. Speaker, I reserve the balance of my time.
Mr. MANZULLO. Mr. Speaker, I have no further speakers. I would ask the gentlewoman if she has any further speakers
Ms. VELÁZQUEZ. Mr. Speaker, I do not have any other speakers
Mr. MANZULLO. Mr. Speaker, I yield back the balance of my time.
Ms. VELÁZQUEZ. Mr. Speaker, I yield myself such time as I may consume.
By passing this bill, we will show small businesses just how important they are to the U.S. economy. We will show them that we want to make it easier for them to invest capital back into the businesses where it belongs; and, Mr. Speaker, I would like to take a moment to thank all the staff who worked hard on this solution.
I would like to thank from the administration, the staff, Jenny Mayne, Anthony Bedell and Charles Rowe. From the House leadership, I would like to thank KiKi Kless and Julie Sullivan. From the chairman's office, Barry Pineles, Matthew Szymanski and Phil Eskeland. From the Democratic Committee on Small Business staff, I would like to thank the staff director Michael Day, Adam Minehardt and Jordan Haas.
Mr. Speaker, I yield as much time as she may consume to the gentlewoman from California (Ms. Millender-McDonald).
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Ms. VELÁZQUEZ. Mr. Speaker, I yield myself such time as I may consume.
I urge the adoption of H.R. 4062 and call on the Senate to act quickly on this measure so that small businesses across
the country can benefit.
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Ms. VELÁZQUEZ. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. LaHood). The question is on the motion offered by the gentleman from Illinois (Mr. Manzullo) that the House suspend the rules and pass the bill, H.R. 4062.
The question was taken; and (two-thirds having voted in favor thereof) the rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
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