[Congressional Record Volume 141, Number 64 (Thursday, April 6, 1995)]
[House]
[Page H4342]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


           H.R. 1258 TO ENHANCE SMALL BUSINESS OPPORTUNITIES

  (Mr. FLAKE asked and was given permission to address the House for 1 
minute and to revise and extend his remarks.)
  Mr. FLAKE. Last week, Mr. Speaker, I introduced legislation to 
enhance funding opportunities to America's small businesses. H.R. 1258, 
the Small Business Capital Access Act of 1995, is designed to raise the 
lending cap from $500,000 to $750,000 for the Small Business 
Administration's [SBA] 7(a) Loan Program. H.R. 1258, with significant 
support from lending institutions, accomplishes the goal of raising the 
lending limits of the program without further Federal expenditure.
  Mr. Speaker, raising the lending limits of the 7(a) Program, the 
Federal Government is demonstrating its commitment to fostering small 
business growth by enabling them to more easily overcome startup 
impediments. These impediments are often a result of 
undercapitalization. The $250,000 increase is accomplished without 
greater financial exposure to the taxpayer. This is made possible by 
lowering the Federal subsidy to lenders who participate in the SBA 
program and reprogramming those funds to guarantee a significant 
portion of those higher-capped loans. The SBA currently extends a 2.74-
percent subsidy for 7(a) loans in fiscal year 1995. My proposal lowers 
the subsidy to 1.65-percent, thereby allowing more funds to actually 
guarantee 7(a) loans.
  Mr. Speaker, I urge all of my colleagues to please join with me in 
supporting H.R. 1258 so we can rebuild America through the small 
business sector.


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