Hoyer Joins Obama in Touting Efforts to Help Small Businesses Access Credit, Create Jobs
LANDOVER, MD - Today, Congressman Steny H. Hoyer (D-MD) joined President Barack Obama, Maryland government leaders and small business owners at Metropolitan Archives in Landover, MD for a discussion on policies to help small businesses access capital, create jobs and help drive a sustainable economic recovery. On top of the steps already taken by Congress and the Administration, the President announced new measures to help small businesses access credit and create jobs.
"Maryland's small firms and those here in Prince George's County have struggled in the recession to access the credit they need to run their businesses and hire new workers," stated Rep. Hoyer. "They are in particular need of assistance, and we hope that on top of other steps we have taken, these new measures will improve access to credit and enable small businesses to stay in business, as well as expand to create new jobs and contribute to the economic recovery."
At today's event, President Obama announced two major initiatives he will pursue to support small business lending and provide greater availability of credit. The first seeks to increase lending by small banks and Community Development Financial Institutions (CDFIs) by providing them with lower-cost capital. The President also said he will seek passage of legislation to raise 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.
"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. "The new initiatives announced today look to increase lending to small businesses and ease the flow of credit, which has tightened during the economic downturn. I look forward to working with my colleagues on these and further ways to support our small businesses."
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. Built into the American Recovery and Reinvestment Act were several provisions, including: increased loan guarantees for lenders; new financing options for firms struggling with existing debt; and tax credits and provisions to encourage capital investment and hiring.
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