[Congressional Record Volume 141, Number 141 (Tuesday, September 12, 1995)]
[Extensions of Remarks]
[Page E1762]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


              SMALL BUSINESS CREDIT EFFICIENCY ACT OF 1995

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                     HON. DOUGLAS ``PETE'' PETERSON

                               of florida

                    in the house of representatives

                       Tuesday, September 12, 1995
  Mr. PETERSON of Florida. Mr. Speaker, today I rise in support of H.R. 
2150, the Small Business Credit Efficiency Act of 1995. This bipartisan 
legislation will strengthen the 7(a) and 504 programs within the Small 
Business Administration at a time when small businesses are 
increasingly seeking access to capital. At the same time, H.R. 2150 
recognizes the fiscal crisis our Government is facing and seeks to 
lower the cost of these invaluable programs for the Government and the 
taxpayer.
  As a small businessman, I know firsthand the difficulties small 
business men and women across the country face in securing financing 
and capital through the private sector. SBA's loan programs are aimed 
at filling this unserved niche and allowing the bedrock of our 
economy--our Nation's small businesses--to grow.
  Mr. Speaker, there is an emerging consensus that we must balance the 
Federal budget, a belief I have held since first elected to Congress. 
All outyear forecasts, however, presume continued economic growth. 
Furthermore, the past decade has demonstrated that new job growth is 
coming almost exclusively from small businesses. Therefore, if we are 
to have any hopes of continued economic expansion and long-term fiscal 
stability, we in this Congress must support our Nation's small 
businesses and provide them with the tools they need to survive. That 
is the mission of SBA and that is exactly what these loan programs do.
  Recently the 7(a) program has fallen victim to its own success. The 
growth in demand for guaranteed loans does not come without a price and 
our limited annual subsidy rate is predicted to fall short of covering 
this demand. This bill will lower the subsidy rate, thereby reducing 
the cost to the Government, while at the same time accommodating this 
increased demand for guaranteed loans.
  Mr. Speaker, I urge my colleagues to support this much-needed 
legislation which will benefit the Federal Government by lowering the 
subsidy rate, benefit our small businesses by increasing access to 
capital, and benefit our Nation by spurring continued economic growth.


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