Democratic Small Business Agenda

Floor Speech

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Mr. PETERS. Thank you for yielding the time. Thank you, Mrs. Dahlkemper, for putting together and assembling this Special Order. And I would also like to thank Chairman LARSON, as well as Representatives SUTTON and HASTINGS, for chairing the House Jobs Task Force, of which I'm a member, and I think others are members of here tonight as well, which is doing very important work to make sure we are creating jobs in this country.

We all know that small businesses employ half of all private-sector employees, and are responsible for creating 60 to 80 percent of all new jobs over the last decade. They create more than half of our Nation's nonfarm GDP. Small businesses employ 40 percent of high-tech workers, and small businesses create 13 times more patents per employee than large patenting firms. And improving access to credit is a key aspect of helping these small businesses grow and create jobs and ensure that America remains a global economic powerhouse.

I am pleased that the American Recovery and Reinvestment Act provided $30 billion in tax relief for small businesses and increased the percentage a business can write off in capital expenditures by 50 percent. Additionally, the total amount a business can write out has been doubled to $250,000, allowing for a substantial investment in equipment and resources for small businesses.

But much more, as we know, much more needs to be done to help our small businesses in this country.

Last year, I had the opportunity to host a field hearing in Oakland County, Michigan, where I gave borrowers and lenders an opportunity to discuss the challenges that we're facing in Michigan. Bank regulators attended the hearing as well so that we could hear firsthand their policies and how those policies are making it very difficult for banks to make the loans to very worthy businesses in my State. And I know it's not just a problem in Michigan, but in States all across the country now.

One of the biggest problems that borrowers and lenders outlined was that as their value of commercial real estate, manufacturing equipment, and other sources of collateral has dropped, it has made it very difficult to obtain a line of credit. Even for a company that has purchase orders in hand, it is difficult for them to get that money. That's why I'm working with Congressman Levin and Congressman Dingell on legislation that will provide States with funding that they can use to create a collateral support program to make sure that these businesses get the vital lending that is so important for them.

That's why I have also proposed a small business lending plan that will redirect unspent Wall Street bailout funding to instead help small businesses in our communities so they can get the credit that they need to grow and to create jobs.

Efforts to help small businesses are especially crucial in areas of high unemployment. I was happy to author legislation through the Small Business Committee which I know, Representative Dahlkemper, you are a leader in, to provide zero-interest loans worth up to $75,000 to small businesses in high unemployment areas, with payment on these loans deferred for 18 months. It also makes high unemployment areas eligible for the New Market Venture Capital program, providing strong financial incentive for investment in new and emerging industries in areas where the workforce is necessary to build the new economy and is ready and enthusiastic and just needs that additional help.

In addition to helping businesses access capital, we must make sure that they also have access to key partnership programs that are proven to spur job creation. For example, the Manufacturing Extension Partnership, the MEP, is a crucial national program that provides technical services and assistance to increase productivity and efficiency of small and medium-sized businesses. The Manufacturing Extension Partnership is a model of an efficient and effective program, credited with creating and retaining over 55,000 jobs per year and $10.5 billion in increased or retained sales.

MEP support is vital to the long-term success and competitiveness of small and medium-sized American businesses, and preserving and strengthening the program should be a priority as Congress continues to work on reviving this economy and getting that growth going.

Currently, the costs of the MEP's services are shared between the Federal Government, State government and industry with Federal Government contributing one-third, and States and industries contributing the remaining two-thirds. However, State budgets have threatened the MEP's existence, and at least 23 State MEP centers now report a decrease or elimination of State MEP funding in 2009 alone, and some centers have been operating without State assistance for years. When a State eliminates this vital funding, it is left to small businesses to cover the gap, and they risk losing Federal dollars in those States that are being hurt the worst. That is why I have introduced legislation with Representative Ehlers that would reduce the matching requirements for small businesses to ensure that they can continue to participate in this MEP program.

And, finally, I would like to also announce that this afternoon I introduced, along with Chairman Larson and Congressmen Reichert and Tiberi, a bill entitled the ``American Job Creation Investment Act'' to provide business tax relief projected to create hundreds of thousands of new jobs. I would like to thank my colleagues for working with me on this bill and support from those of you here in the Special Order here tonight as well.

This bill in a sense will allow companies to use the alternative minimum tax credits that they now hold but that otherwise they must save for future years to be used this year for job creation, job retention, and capital investments. The bill is estimated to directly create over 65,000 new jobs and help businesses retain 170,000 jobs in the next 2 years, plus spur $40 billion in additional job-creating investment. A wide array of industry associations currently endorse the bill, including the U.S. Chamber of Commerce, the National Association of Manufacturers, the Motor and Equipment Manufacturers Association, Associated Builders and Contractors Association, and the Association for Manufacturing Technology.

This is an incredibly efficient and commonsense way for us to spur job creation. Companies are sitting on these tax credits, but under current tax law cannot use them until future years. This bill will allow them to use the tax credits they have already accrued to create jobs now, when we need them the most. And I would like to encourage my colleagues to cosponsor this very important bill.

While I'm proud of the work that we have done in Congress to turn around our economy and help families and small businesses, I think we all agree that there is no question that there is more work to be done. Small businesses will be the key to my State's, and the entire Nation's, economic recovery. And I believe, as I know all of you believe, that helping businesses have access to capital that they need to grow, invest and create jobs is the key to helping our economy move and put Americans back to work. I look forward to continuing to work with all of you and applaud your efforts here tonight to bring this important issue to the American people as we continue to work to create jobs in this great count.

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