Hoyer Applauds Passage of Legislation to Help Small Businesses Access Credit, Create Jobs
WASHINGTON, DC - Today, Congressman Steny H. Hoyer (D-MD) praised House passage of H.R. 3854, the Small Business Financing and Investment Act of 2009, a measure that will take substantial steps to improve lending and access to credit for small businesses. H.R. 3854 will support $44 billion in small business lending every year, helping to save or create 1.3 million jobs annually.
"Maryland's small firms have struggled in the recession to access the loans they need to pay current employees and hire new ones," stated Rep. Hoyer. "That is why this bill is a significant contribution to the health of America's job-creators, and to our economy as a whole."
Small business is the heart of America's economy, especially in Maryland where, according to the most recent data available, more than 110,000 small firms represent 53.4% of Maryland's private-sector employment, employing 1.1 million people.
Last week, President Obama announced a new initiative to help small business. Included in the proposal was a request for legislation to increase the lending limits on Small Business Administration (SBA) 7(a) and 504 loan programs from $2 million to $5 million; up to $5.5 million for manufacturing companies under the 504 program; and up to $50,000 for microloans.
In line with President Obama's recent call, the bill raises SBA loan amounts to help small firms access larger amounts of capital. Additionally, the bipartisan bill would expand investments in low income communities, maintain fee reductions and increased guarantees originally included in the American Recovery and Reinvestment Act (ARRA), encourage small lenders to make loans available to rural and veteran-owned businesses, create a new loan program to help small health practices purchase health IT, and provide SBA with increased support to facilitate small business lending.
"Small businesses are the job creators that will help fuel a sustained economic recovery, and we are committed to helping them thrive," stated Rep. Hoyer. "Today's news that the economy grew at a rate of 3.5 percent between July and September-the best growth in two years-gives reason to believe that we are well on the road to recovery. But the recovery will not be complete until millions of Americans are back at work, which is what makes today's small business bill so important."
Since the start of the economic recovery effort, Congress and the Administration have taken several steps to help small businesses and make them part of a durable recovery. Small business provisions in the Recovery Act - including increased loan guarantees, financing options and tax credits- have already supported tens of thousands of loans, helping to save or create thousands of jobs - totaling $9 billion in new small business lending since the Recovery Act's passage
In addition, the House has passed legislation to enhance entrepreneurial development programs and to increase funding for SBA initiatives that aid, counsel, and protect the interests of small businesses. Finally, the health insurance reform legislation currently moving through Congress will substantially help small business owners afford health care coverage for themselves and their workers.
Background Information on Small Business Efforts