Providing For Consideration Of H.R. 3854, Small Business Financing And Investment Act Of 2009

Floor Speech

* Mr. POLIS. Madam Speaker, I rise in support of this rule and the underlying bill H.R. 3854, the Small Business Financing and Investment Act. I would like to thank Chairwoman Velázquez and my colleagues on the Small Business Committee for bringing us a comprehensive well thought-out bill. I would also like to acknowledge and thank my friend from Oregon, Representative Schrader for introducing this legislation and working hard on such an important issue.

* Madam Speaker, while there are positive economic indicators and reasons to believe that we are on a path of recovery, this fragile, budding recovery could be stalled if we do not provide our small businesses with the tools to maintain their operations, begin to expand and create new jobs, and restore consumer confidence.

* H.R. 3854 will significantly improve access to credit and capital for small businesses at each stage of growth and in any economic climate. An update of the SBA's portfolio of lending and investment programs is 10 years overdue, and the current recession makes the task of helping more small firms, grow, prosper, and save and create jobs even more vital.

* As we speak, once frozen credit markets are beginning to thaw, and the Small Business Financing and Investment Act will prove to be a welcome heat gun. This bill will improve credit conditions for small businesses and stabilize small business lending markets, improving the availability of capital for small firms. This includes increasing the guaranty on 7(a) loans to 90 percent, waiving fees on 7(a) and CDC loans, and improving the Business Stabilization Loans by increasing the loan amounts to $50,000.

* By raising SBA loan guarantees and reducing risk for lenders, this bill allows banks to make lending more accessible to small firms early next year. By helping small firms purchase new equipment and inventory, the bill will help stimulate the economy and help reduce overall unemployment. As an added benefit, an increase in lending activity will also improve the health of our banking industry.

* Through this bill, bankers will be able to recapitalize--through their efforts of supporting business--instead of seeking Federal bailouts. Recognizing the benefit to their industry, H.R. 3854 has received the endorsement of American Bankers Association.

* This bill will benefit businesses nationwide. It makes permanent the Rural Lender Outreach Program, Community Express, and Veteran Participation Loan Program. Each of these programs share a common goal of assisting borrowers who have not accessed SBA programs or who have traditionally had limited access to capital.

* On behalf of my constituents in Colorado, I would like to particularly thank the Chairwoman and Committee for their work on drafting Subtitle B--expanded investment in small business renewable energy, and title VII (seven)--the small business early-stage investment program. The spirit of entrepreneurship in my district is only matched by our commitment and talent to lead in the renewable energy economy. These programs encourage new businesses to start; encourage all businesses to recognize cost saving through energy conservation; and promote new firms to develop and market renewable energy resources. And they are all strongly supported by the people of Colorado's second Congressional district.

* Without discounting the struggles of those who have lost their jobs, it should be noted that Colorado enjoys one of the lowest unemployment rates in the nation at seven percent. This, in part, is due to the diversity of my state's economy, the predominance of small businesses, and the efforts by state and local governments to foster entrepreneurship across all industries.

* Nationwide, small businesses create 64 percent of new jobs. This bill is expected to support $44 billion in small business lending every year, and will help save or create 1.3 million jobs each year. Small firms comprise 99.7 percent of all employer companies; this bill is more than an investment in small businesses, it is an investment in American job growth.

* Madam Speaker, oftentimes, the psychology of recovery is as important as the funds spent to drive it. By passing this legislation, this Congress makes a plain statement that we have great confidence in our fellow Americans to help each other get back to work.

* We state that with a little help local bankers and local merchants can come together to stock shelves and pay salaries. We tell our businesses that we will provide the tools to weather the remainder of the storm; we use traditional market mechanisms to do it; and we back our confidence with the full faith and credit of the United States government. This is a powerful message and I am proud to lend my voice to this cause.

* Once again I recognize the efforts of Chairwoman Velázquez and the Small Business Committee on job growth and I thank Representative Schrader introducing this legislation that we will have the opportunity to vote on today. I strongly support this rule and ask my colleagues to join me in supporting this rule and the underlying bill.

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