WASHINGTON, D.C. - U.S. Rep. John Spratt (D-SC) voted to give small businesses greater access to the loans and investment dollars they need to expand and grow their operations. The Small Business Financing and Investment Act passed the House on October 29th. The bill will help to open tight credit markets that have shut out small business owners during the recession, allowing them to create jobs, particularly in struggling regions and industries.
“Small businesses are the number one source of new jobs,” said Spratt. “By helping them grow, we are putting Americans back to work, supporting innovation, and laying the groundwork for a new prosperity.”
Spratt said small businesses create 60-80% of new jobs every year, but the current economic crisis has frozen credit and made it difficult for them to get the financing they need. By comprehensively updating the Small Business Administration’s capital access programs, the legislation is expected to support $44 billion in lending and investment for smaller firms.
“With this bill,” said Spratt, “we are helping small firms find capital they can afford, which is one of the biggest challenges they face in today’s market.”
The legislation will increase loan sizes to better meet businesses’ needs. It also includes incentives to encourage local banks to lend to small businesses and reduces bureaucratic red tape, making it easier for entrepreneurs to secure credit. The bill creates a new public/private partnership to expand investments in small business startups – an important source of job creation. It also extends critical Recovery Act provisions eliminating fees on Small Business Administration loans and guaranteeing up to 90% of 7(a) loans. To foster a diverse mix of businesses, it takes steps to promote veteran-owned, women-owned and rural small businesses.
“I was pleased to vote for a bill that helps put people back to work,” Spratt said.
