Providing For Temporary Extension of Programs Under Small Business Act and Small Business Investment Act of 1958

PROVIDING FOR TEMPORARY EXTENSION OF PROGRAMS UNDER SMALL BUSINESS ACT AND SMALL BUSINESS INVESTMENT ACT OF 1958 -- (House of Representatives - September 13, 2004)

Mrs. CAPITO. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 5008) to provide an additional temporary extension of programs under the Small Business Act and the Small Business Investment Act of 1958 through September 30, 2004, and for other purposes.

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Ms. VELÁZQUEZ. Mr. Speaker, I yield myself such time as I may consume.

(Ms. VELÁZQUEZ asked and was given permission to revise and extend her remarks.)

Ms. VELÁZQUEZ. Mr. Speaker, we are here today because Congress has failed to complete its work. Over 1 year ago, the Committee on Small Business unanimously reported out a bipartisan reauthorization bill. As a result of the failure to move this legislation, the authorization for the SBA expired last year and we are now forced to pass our fourth extension. Shamefully, the agency has been operating for 3 months without any authorization.

It is clear that the Nation's job creators, small businesses, are struggling. The United States has lost 1.7 million jobs since 2001, and we are continuing to see growth rates that only keep up with inflation. American manufacturers are being hit hardest, with 2.7 million jobs lost during that period and 11,000 lost in June alone. This is clearly not the picture of an economy that is getting back on its feet.

Last week, the House Committee on Small Business Democrats released a quarterly small business index showing that business conditions are at 7-year lows. Skyrocketing health care and energy costs and exploding Federal budget deficits are but a few of the barriers small firms face in achieving the growth our economy needs so badly.

At a time when we should be providing our Nation's entrepreneurs a leg up, this administration and the Republican Congress has continuously failed to provide the assistance they need by blocking passage of the SBA reauthorization.

The bipartisan reauthorization bill will provide the most comprehensive overhaul of the SBA in over a decade. It will broaden or modernize the SBA loan programs so firms can access the capital they need. At a time when the Federal Government failed to meet the small business contracting goals for the fourth consecutive year, the Republican leadership is blocking this bill that will expand procurement opportunities for small companies.

The legislation ensures small firms are given a fair chance to break into the Federal marketplace. By doing so, we provide the Federal Government a quality service at a good price. This is not just good for small businesses, it is good for the American taxpayer. Additionally, the likelihood of success for small business is nearly doubled when they have access to technical assistance.

Passage of the reauthorization bill will offer the greatest expansion of entrepreneurial assistance programs in decades.

Even more concerning is the possibility that our failure to act will actually worsen the business environment for small businesses. Small businesses are faced with a possible doubling of fees on SBA loans at the end of this month. Without immediate action, the current structure will lapse, leaving banks and entrepreneurs in a worse situation than when the program was shut down last year.

Although the gentleman from Illinois (Chairman Manzullo), who cannot be here today, has tried repeatedly to bring this bill up for consideration, the Republican House leadership and the administration have blocked it.

In today's economic climate, small businesses are more important than ever. We need to ensure that they have all the tools for success, as they are facing numerous obstacles. It is unfortunate that we are here today passing an extension, rather than celebrating the passage of an SBA reauthorization.

These issues should not be subject to partisan politics. When our small businesses need us the most, our committee was able to work in a bipartisan manner to produce this legislation. We now ask the Republican leadership to recognize these efforts and pass the reauthorization bill that will get small businesses back creating jobs.

Mr. Speaker, I yield 2 minutes to the gentlewoman from Guam (Ms. Bordallo).

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Ms. VELÁZQUEZ. Mr. Speaker, I yield myself such time as I may consume.

I would like to set the record straight regarding the tax cut that the President submitted to Congress and that Congress passed.

The tax cuts are not helping small businesses. The President's tax cuts have provided little relief for small businesses. In fact, under the latest tax cut, over half of small businesses receive less than $500, despite a cost of $350 billion. And, while the President talks about how the top tax rate cut helps small businesses, only 1 percent of small business owners benefit from the reduction in the top tax rate. In fact, out of the 28 million small businesses, only 180,000 benefited from the top tax rate, according to the figures presented to us by the Department of the Treasury. Those are your own numbers. Less than 5 percent of the latest 2003 Jobs and Growth package was in the form of targeted tax relief for small businesses.

Mr. Speaker, I yield 3 minutes to the gentlewoman from the Virgin Islands (Mrs. Christensen).

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Ms. VELÁZQUEZ. Mr. Speaker, I yield 2 minutes to the gentleman from Massachusetts (Mr. Tierney).

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Ms. VELÁZQUEZ. Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, there is no disagreement that we should pass this extension. It is, though, embarrassing that it has come to this. We expect small businesses to meet their taxes, comply with Federal regulations and pay their employees on time. But when it comes to Congress, we are not held accountable for our failure to meet their needs.

At a time when our economy is struggling, at a time when small businesses are struggling, Congress should be holding up its end of the deal. Passing the Small Business Administration Reauthorization Act must be a priority.

Mr. Speaker, I yield back the balance of my time.

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