Ellison Praises Bill to Increase Small Businesses Lending and Create Jobs

Press Release

Congressman Keith Ellison today joined a majority of his colleagues on the Financial Services Committee to pass H.R. 5297, the Small Business Lending Fund Act. The bill would create a fund to make capital investments in community banks in order to increase the availability of credit for small businesses. President Obama first described this initiative during his State of the Union address in January. The entire House of Representatives is set to vote on this legislation in the coming weeks.

"Countless small business owners in the communities I represent have told me that credit has dried up and they have had to lay people off," Ellison said. "Lines of credit are being cut and right now new loans are nearly impossible to get from banks."

"While I understand that many lenders have been stung by turmoil in the past few years, small business owners with proven track records, good credit histories, and innovative ideas should have access to loans," Ellison said. "The federal government should encourage lending that can support economic growth."

Obama Administration officials indicated that small businesses are having a hard time accessing loans -- last year 45 percent of small businesses were unable to receive all of the capital that they sought. Many local and community banks simply lack enough capital to make loans at reasonable interest rates. By allowing these banks to access a fund from the federal government, they will become more able to lend and small businesses will be more likely to create jobs in Minnesota.

"Small businesses are the primary source of jobs in our economy," Ellison said. "It is important that they be able to get credit so that they can expand and hire new workers. Taxpayers are well-protected under this program and I am confident that small businesses in Minnesota will benefit significantly from this bill."

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