Small Business Financing And Investment Act of 2009
Floor Speech
BREAK IN TRANSCRIPT
PART B AMENDMENT NO. 13 OFFERED BY MR. PETERS
The Acting CHAIR. It is now in order to consider amendment No. 13 printed in part B of House Report 111-317.
Mr. PETERS. Madam Chair, I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
Part B amendment No. 13 offered by Mr. Peters:
Page 29, line 14, strike ``$50,000'' and insert the following ``$50,000 (except as provided under subsection (l))''.
Page 29, after line 19, insert the following (and redesignate succeeding sections accordingly):
SEC. 119. DELAYED REPAYMENT FOR SMALL BUSINESS CONCERNS IN AREAS WITH HIGH UNEMPLOYMENT.
Section 506 of title V of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111-5) is amended by adding at the end the following:
``(l) Small Business Concerns in Areas With High Unemployment.--
``(1) INCREASE LOAN LIMITS.--Notwithstanding subsection (d), a loan made under this section to a small business concern in what the Administrator determines to be an area with high unemployment may not exceed $75,000.
``(2) DELAYED REPAYMENT.--Notwithstanding subsection (g), repayment for a loan made under this section after the date of the enactment of the Small Business Financing and Investment Act of 2009 to a small business concern described in paragraph (1) shall not begin until 18 months after the final disbursement of funds is made.''.
Page 156, line 12, insert after ``of 1986'' the following: ``, except that, without regard to such meaning, such term includes an area that the Administrator determines to be an area with high unemployment''.
The Acting CHAIR. Pursuant to House Resolution 875, the gentleman from Michigan (Mr. Peters) and a Member opposed each will control 5 minutes.
The Chair recognizes the gentleman from Michigan.
Mr. PETERS. I yield myself such time as I may consume.
Today we are considering important legislation that will provide borrowers, lenders and the government with a number of important tools to assist the survival and growth of small businesses. Small businesses are the prime engine of innovation, economic expansion and job creation, and supporting our small businesses should be the cornerstone of any plan for economic recovery. For areas of high unemployment, small businesses are particularly important, and the jobs they provide are particularly valuable.
While the economy is beginning to show signs of improvement, there is no doubt that in some areas unemployment remains at an extreme high level. For example, the State of Michigan has the Nation's highest unemployment rate at 15.3 percent, and in the city of Pontiac, which I represent, the unemployment rate is a staggering 35.2 percent.
My amendment would ensure that businesses that want to invest in high unemployment areas and create jobs can do so competitively at a time when innovation and investment is needed most by making high unemployment areas eligible for more expansive American Recovery Capital, ARC, loans and the New Market Venture Capital program.
In order to assist these high unemployment areas, my amendment will increase the maximum ARC loan amount from $50,000 to $75,000 and defer repayment until 18 months after final disbursement of the loan is made. This would give struggling firms room to breathe and help avoid further layoffs and closures.
My amendment would also give entrepreneurs better access to private capital by making eligibility for the New Market Venture Capital program include high unemployment areas. This would target investment and opportunity directly where it is needed most and encourage business growth PART B AMENDMENT NO. 13 OFFERED BY MR. PETERS
The Acting CHAIR. It is now in order to consider amendment No. 13 printed in part B of House Report 111-317.
Mr. PETERS. Madam Chair, I have an amendment at the desk.
The Acting CHAIR. The Clerk will designate the amendment.
The text of the amendment is as follows:
Part B amendment No. 13 offered by Mr. Peters:
Page 29, line 14, strike ``$50,000'' and insert the following ``$50,000 (except as provided under subsection (l))''.
Page 29, after line 19, insert the following (and redesignate succeeding sections accordingly):
SEC. 119. DELAYED REPAYMENT FOR SMALL BUSINESS CONCERNS IN AREAS WITH HIGH UNEMPLOYMENT.
Section 506 of title V of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111-5) is amended by adding at the end the following:
``(l) Small Business Concerns in Areas With High Unemployment.--
``(1) INCREASE LOAN LIMITS.--Notwithstanding subsection (d), a loan made under this section to a small business concern in what the Administrator determines to be an area with high unemployment may not exceed $75,000.
``(2) DELAYED REPAYMENT.--Notwithstanding subsection (g), repayment for a loan made under this section after the date of the enactment of the Small Business Financing and Investment Act of 2009 to a small business concern described in paragraph (1) shall not begin until 18 months after the final disbursement of funds is made.''.
Page 156, line 12, insert after ``of 1986'' the following: ``, except that, without regard to such meaning, such term includes an area that the Administrator determines to be an area with high unemployment''.
The Acting CHAIR. Pursuant to House Resolution 875, the gentleman from Michigan (Mr. Peters) and a Member opposed each will control 5 minutes.
The Chair recognizes the gentleman from Michigan.
Mr. PETERS. I yield myself such time as I may consume.
Today we are considering important legislation that will provide borrowers, lenders and the government with a number of important tools to assist the survival and growth of small businesses. Small businesses are the prime engine of innovation, economic expansion and job creation, and supporting our small businesses should be the cornerstone of any plan for economic recovery. For areas of high unemployment, small businesses are particularly important, and the jobs they provide are particularly valuable.
While the economy is beginning to show signs of improvement, there is no doubt that in some areas unemployment remains at an extreme high level. For example, the State of Michigan has the Nation's highest unemployment rate at 15.3 percent, and in the city of Pontiac, which I represent, the unemployment rate is a staggering 35.2 percent.
My amendment would ensure that businesses that want to invest in high unemployment areas and create jobs can do so competitively at a time when innovation and investment is needed most by making high unemployment areas eligible for more expansive American Recovery Capital, ARC, loans and the New Market Venture Capital program.
In order to assist these high unemployment areas, my amendment will increase the maximum ARC loan amount from $50,000 to $75,000 and defer repayment until 18 months after final disbursement of the loan is made. This would give struggling firms room to breathe and help avoid further layoffs and closures.
My amendment would also give entrepreneurs better access to private capital by making eligibility for the New Market Venture Capital program include high unemployment areas. This would target investment and opportunity directly where it is needed most and encourage business growth in hard-hit areas like the city of Pontiac. These simple changes would ensure that hard-hit areas have the tools necessary to stop hemorrhaging jobs and to invest in new operations that will create jobs, bring new technologies to markets, and build a new foundation for Michigan's economy and the country as a whole.
I urge my colleagues to support my amendment, and I would like to thank Representative Schrader for bringing forth this important legislation, as well as Chairwoman Velázquez and her staff for their help on the amendment.
I reserve the balance of my time. in hard-hit areas like the city of Pontiac. These simple changes would ensure that hard-hit areas have the tools necessary to stop hemorrhaging jobs and to invest in new operations that will create jobs, bring new technologies to markets, and build a new foundation for Michigan's economy and the country as a whole.
I urge my colleagues to support my amendment, and I would like to thank Representative Schrader for bringing forth this important legislation, as well as Chairwoman Velázquez and her staff for their help on the amendment.
I reserve the balance of my time.
BREAK IN TRANSCRIPT
Source