[Congressional Record Volume 140, Number 53 (Thursday, May 5, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: May 5, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                  TRIBUTE TO AMERICAN SMALL BUSINESSES

 Ms. MOSELEY-BRAUN. Mr. President, I rise today to pay tribute 
to the Nation's small businesses during the 1994 Small Business Week. 
The accomplishments of this Nation's small business owners are 
significant. Small business is an important economic engine. It is 
instrumental to the economic growth and vitality of this country.
  According to the President's recent report on small business, for 
example, the impact of the recession would have been much worse without 
the approximately 180,000 jobs created in industries dominated by small 
businesses. These businesses create jobs and fuel the economy by 
providing products and services that large companies can not or will 
not provide.
  As a member of the Banking Committee and Small Business Committee, I 
am working on ways to help small businesses, including minority and 
women-owned businesses, get the capital they need. According to the 
U.S. Commission on Minority Business Development, limited access to 
capital is one of the most formidable stumbling blocks to minority 
business development.
  The ever-growing demand for the Small Business Administration's 7(a) 
Guaranteed Loan Program, which guarantees loans of small businesses so 
that banks will make loans, is proof of this need for capital. From 
1992 to 1993, applications to the 7(a) Guarantee Loan Program jumped 37 
percent.
  I supported legislation that reduced the cost of making these SBA 
guaranteed loans, resulting in an estimated guarantee loan authority of 
almost $7 billion for fiscal year 1994. I am also a cosponsor of S. 
1275, the community development banking bill, which changes securities 
laws to improve access to capital markets for small businesses. The 
bill also creates a secondary market in small business loans and 
reduces bank regulatory burdens to enhance the ability of our banks to 
make loans to small businesses. I also have urged administration 
officials to administratively eliminate banking regulations that 
inhibit small business lending.
  In addition to these capital access initiatives, the SBA has created 
a program that helps high risk, startup companies obtain venture 
capital. Both the Small Business Investment Company Program and the 
Specialized Small Business Investment Company Program, targeted at 
minority companies, have been restructured and funded at a higher 
level. For women-owned businesses, the SBA has established a pilot 
program to expedite SBA guaranteed loans to qualified women-owned 
businesses. Chicago boasts the first fully running office to process 
these guaranteed loan applications.
  These initiatives will help small businesses acquire the capital they 
need for startups and expansions. It takes money to make money, and 
small businesses have the hardest time accessing startup money. If we 
can help small businesses obtain the capital they need, they can get on 
with the job of creating jobs for this economy.
  Small businesses, because of their size, are more innovative, more 
creative and more able to respond to changing market trends. It is this 
ability to respond to change that allowed small businesses to make 
contributions to the economy during the recession while large companies 
were downsizing. I believe this flexibility also equips them to succeed 
in foreign markets. However, small businesses can not do it alone.
  The four pilot one-stop trade shops, including one in Illinois, will 
provide small businesses with information about U.S. export promotion 
programs, export financing, technical advice, and basically how to sell 
in foreign markets. These one-stop shops will combine the export 
promotion programs from Federal agencies, such as the Commerce 
Department, Small Business Administration, Eximbank, and Agriculture 
Department in one location, making it easier for American businesses, 
especially small businesses, to get information and assistance in 
exporting their products.
  As our economy becomes more intertwined with those of other 
countries, American companies will need to export in order to succeed. 
Previously, much of the international attention was centered on large 
companies. We now need to focus on the exporting success, and 
potential, of American small businesses. There are almost 20 million 
small businesses in this country. Pilot programs such as the one-stop 
trade shops will help American small business find the technical 
assistance, export financing, and insurance they need to penetrate and 
succeed in overseas markets. Making money in foreign markets means 
creating jobs here at home.
  The Wahl Clipper Corp., located in Sterling, IL., exemplifies a small 
business that has turned domestic success into international sales. The 
firm develops and markets a line of professional salon hair dryers, 
shear sharpeners, shears, curling brushes, combs, and attachments for 
hair clippers. The success of Wahl Clipper Corp's products in the 
United States enabled the firm to market them internationally through 
distributors familiar with local regulations, customs, and languages. 
Initially, Wahl Clipper adapted some products developed for the U.S. 
market to sell abroad. As their exports grew, the firm began designing 
products, like its Euro-flex cord and cordless rechargeable shavers, 
for worldwide use.
  In an era when the United States is running a gigantic trade deficit, 
Wahl Clipper is doing business in over 70 countries. Its sales and 
employment continue to rise significantly each year. In addition, the 
Wahl Corp. works to assist other American businesses in entering the 
international market.
  Wahl Clipper Corp. illustrates the role that U.S. small businesses 
will play in the emerging global economy. Not surprisingly, John F. 
Wahl, president and CEO of the Wahl Clipper Corp., was recognized as 
the 1990 Illinois Exporter of the Year.
  The Wahl Clipper Corp. is far from the only Illinois company tapping 
into an international market. The Kee-Per Bag Co. of Elk Grove Village, 
IL, owned and operated by Eleanor Workman, manufactures insulated bags 
that are used to keep prepared foods, such as pizza, hot during 
delivery. The products are used by restaurants, pizzerias, caterers, 
and schools. The company offers a variety of styles and will prepare 
custom-made items.

  Ms. Workman began exporting Kee-Per Bags in 1991 by contacting the 
international trade center [ITC] at the College of Dupage's small 
business development center. The ITC, which works with the small 
business administration to provide counseling and technical advice to 
Illinois small businesses, assisted Ms. Workman in preparing an 
international marketing plan for Kee-Per Bags. The Kee-Per Bag Co. 
implemented the marketing plan and international sales now account for 
over 15 percent of its total business. The company exports to many 
countries, including Britain, Belgium, France, Sweden, and the West 
Indies.
  Another Elk Grove Village company, Mickey Hamano's Electro-Wire, 
Inc., has generated jobs by entering the international market. Mr. 
Hamano began selling electrical wire and cable from his car in 1978. 
Soon, he was able to rent garage space and stock a small inventory.
  After being rejected for financing from several banks, he obtained a 
loan from the Small Business Administration. Since then, Mr. Hamano has 
become a supplier for major American companies such as AT&T and IBM. In 
1992 alone, the firm created 20 full time jobs. In addition, its total 
sales for 1993 more than doubled the 1992 sales of $8 million. Much of 
Electro-Wire's phenomenal growth in sales and profitability are 
attributed to its success in the international market. Mr. Hamano views 
that SBA loan as the catalyst for Electro-Wire's great success.
  I would also like to take this opportunity to pay tribute to all the 
women and men whose small businesses contribute so significantly to the 
economy of Illinois and our country. Specifically, I would like to 
congratulate Ms. Rachel Hubka, president of Rachel's Bus Co., on her 
designation as the 1994 Illinois Small Businessperson of the Year.
  In 1978, Ms. Hubka left her job as a telemarketer to start working at 
a Chicago-area school bus company. Within 18 months, her hard work 
earned her a promotion to general manager. Yet, she didn't stop there; 
in 1987 she started her own company. Her belief in a child's right to 
clean, safe transportation and a determination to provide jobs, 
training, and incentives for unskilled individuals inspired her to 
start Rachel's Bus Co. She spent 18 months securing financing, 
insurance, and bid qualification. She then was awarded 90 bus routes by 
the Chicago Board of Education. The company now serves 125 routes and 
has expanded into charter service.
  Ms. Hubka has high expectations for her employees, and encourages 
their professional development by offering opportunities for continuing 
education, promoting from within, and publicly rewarding good work. A 
team safety program and raffle each week result in safer driving and 
high morale. Perfect attendance and driving records translate into 
bonuses. In addition, Ms. Hubka regularly offers her company's 
resources to schools and community groups. She supports the Special 
Olympics, the Shriners' circus, after-school and gifted-child Programs, 
and a school bus poster contest. She is also active in the National 
Association of Women Business Owners.
  Rachel Hubka personifies the American dream. She grew up in Arkansas 
as one of 13 children. She learned the realities of poverty and the 
benefits of hard work early in her life. As her accomplishments 
indicate, Rachel Hubka is living proof that it is still possible to 
achieve in America.
  This is a prime example of the vitality that exists in our small 
business community. Small business owners have the determination, 
creativity, flexibility, and ability to run successful companies. The 
key to economic growth is finding new and innovative ways to run 
businesses that create jobs. No one does it better than American small 
businesses.

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