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Congressional Panel Approves Small Business Finance Bills

 

The House Committee on Small Business, Subcommittee on Finance and Tax, approved a series of bills aimed at updating and improving the Small Business Administration’s (SBA) capital access programs.  During the markup session, lawmakers said that, by helping small firms find affordable financing, the bipartisan legislation would spur the nation’s economic recovery.

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“Traditionally, small businesses lead our country out of economic downturns by expanding and creating new jobs,” said Congressman Kurt Schrader (D-OR), Chairman of the Finance and Tax Subcommittee.  “However, small businesses can’t play that role if they don’t have access to affordable credit.  The legislation passed today will mean more loans for more businesses at more affordable rates.”

 

The Small Business Administration (SBA) maintains a portfolio of lending and investment programs that are intended to help entrepreneurs raise capital.  However, those initiatives have not been updated over the last ten years and a range of problems have prevented the programs from functioning at their full potential.  During today’s session, lawmakers said that the SBA’s initiatives are even more vital during economic downswings when private financing sources often become scarce.

 

“As a small business owner I know that when credit tightens up and investment capital is hard to come by, small firms rely on the SBA’s programs to help bridge the financing gap,” Schrader said.  “That hasn’t happened as quickly as we would like in this recession.  By updating these programs, this legislation will ensure the SBA performs its critical capital access mission, especially during economic downturns.”

 

The legislation passed today includes:

  • H.R. 3723, the Small Business Credit Expansion and Loan Markets Stabilization Act of 2009
  • H.R. 3737, the Small Business Microlending Expansion Act of 2009
  • H.R. 3739, the Job Creation and Economic Development Through CDC Modernization Act of 2009.
  • H.R. 3740, the Small Business Investment Company Modernization and Improvement Act of 2009.
  • H.R. 3722, the Enhanced New Markets and Expanded Investment in Renewable Energy for Small Manufacturers Act of 2009.
  • H.R. 3014, the Small Business Health Information Technology Financing Act
  • H.R. 3738, the Small Business Early Stage Investment Act of 2009
  • H.R. 3743, the Small Business Disaster Readiness and Reform Act of 2009

 

In August, Schrader held a field hearing in Salem to hear from local businesses that are struggling to find affordable sources of capital.  The bills were approved today by voice vote and must now be considered by the full House Committee on Small Business.