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Small Business Microlending Expansion Act Of 2009

Floor Speech

Date: Nov. 6, 2009
Location: Washington, DC
Issues: Business and Consumers Finance and Banking

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Ms. VELÁZQUEZ. Madam Speaker, I just would like the record to reflect the fact that I am a Mets fan, and I do not associate myself with the previous comments.

During economic downturns, like the one our Nation faces today, many Americans who cannot find work elsewhere take the initiative to launch their own ventures. Time and time again, these start-up businesses have helped strengthen the economy, created new jobs, and led our Nation to recovery. And in the short term, these new businesses give hard-working Americans a way to support their families when times are tough.

The Small Business Administration's microloan program helps entrepreneurs secure the start-up capital they need to get new ventures off the ground. Microloans have always been a great tool for job creation. At its core, this program is about helping Americans with a good business idea take the first step to get a new business off the ground.

New businesses mean new jobs. With this bill, we are making the microloan program an even more powerful tool for job creation.

The legislation before us will make a number of important changes to improve how the SBA microloan program functions. Under the bill, we will reduce the interest rate that borrowers pay in the program. The bill will also help more lenders get involved in the program, giving businesses more options and making it easier to access the program. And this legislation will allow existing lenders to increase the amount of money they lend. These changes will expand the program's capacity and mean additional capital flows to small businesses.

Finally, the bill allows lenders to spend more on providing technical assistance for small firms. The valuable services that microlenders provide, like teaching entrepreneurs how to write a business plan, often means the different between a new venture succeeding or failing.

The American spirit of entrepreneurship is critical during times of economic downturn. By improving the SBA's microloan program and getting more capital in the hands of small business owners, this bill will accelerate our Nation's recovery. I urge the bill's passage. I reserve the balance of my time.

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