[Congressional Record Volume 144, Number 86 (Friday, June 26, 1998)]
[Senate]
[Page S7294]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       THE PROGRAM FOR INVESTMENT IN MICRO-ENTREPRENEURS OF 1998

 Mr. KERRY. Last week I joined Senators Kennedy, Domenici and 
Bingaman in introducing a bill to establish the PRIME program for 
investment in microenterprise. I applaud Senators Kennedy and Domenici 
for their work in developing this legislation and welcome their efforts 
in supporting the development of business skills for micro-
entrepreneurs. Access to education and training is critical for the 
development of small businesses in the United States.
  Developing microenterprise is crucial to the financial health of our 
nation. Small businesses have been the engine of growth in our economy 
and have provided virtually all of our country's net new jobs. Very 
small businesses, those with four or fewer employees, created more jobs 
from 1992 through 1996 than large businesses employing more than 500 
workers. However, many of those who yearn to turn an innovative idea 
into a marketable product need assistance in developing the skills and 
knowledge necessary to succeed in today's competitive marketplace. That 
is why, as Ranking Democratic Member of the Senate Small Business 
Committee, I have been such a strong supporter of programs to assist 
microenterprise development, especially through the microloan program 
within the Small Business Administration. This program has provided $67 
million in microloans to very small businesses in every state. A great 
percentage of microloans have gone to traditionally underserved groups, 
including 43 percent to women-owned businesses, 39 percent to minority-
owned businesses and 11 percent to veteran-owned businesses. I am 
committed to seeing this and other programs that assist microenterprise 
grow and thrive.
  The Community Development Financial Institutions (CDFI) fund 
represents another type of community investment initiative. It uses 
limited federal resources to invest in and build the capacity of 
private, for profit and nonprofit financial institutions, leveraging 
private capital and private-sector talent and creativity. The fund's 
main program allows local CDFIs to apply for financial and technical 
assistance. This funding can be used to support basic financial 
services, housing for low-income people, businesses that provide jobs 
for low-income people and technical assistance for capacity-building, 
training, and development of programs, investments or loans. The CDFI 
fund offers a combination of increased access to capital and 
institutional capacity building that is vital to low-income 
communities, and fill a need that the marketplace is not meeting.
  We have all heard a lot about the need for individual responsibility, 
family responsibility, and community responsibility. The 
microenterprise program within CDFI give us an opportunity to lend a 
helping hand to those in need of financial aid and technical assistance 
so they can fulfill their personal, family, and community 
responsibilities. It has given many a chance to break the cycle of 
poverty and welfare and move toward individual responsibility and 
financial independence.
  The PRIME bill introduced last week seeks to increase CDFI's funding 
for technical assistance to give micro-entrepreneurs access to 
information on developing a business plan, record-keeping, planning, 
financing and marketing that are crucial in the development of a small 
business. Furthermore, this legislation will sponsor research on the 
most innovative and successful ways of encouraging these new businesses 
and enabling them to succeed.
  This legislation will allow organizations which assist 
microenterprises to develop new products and services for their 
customers and expand on existing services. In Massachusetts, Working 
Capital, a recipient of a Presidential Award for Excellence in 
Microenterprise Development in 1997, currently offers three 
complementary programs to its microenterprise customers which could be 
eligible for additional funding under the PRIME legislation. First, 
Working Capital provides business credit to micro-entrepreneurs. 
Second, they provide business education and training on how to draw up 
business plans and prepare financial projections, and how to use these 
tools in managing their businesses. Third, they offer networking 
opportunities to connect micro-entrepreneurs to each other and give 
them a sense of belonging within a community which faces the same 
challenges.
  The PRIME legislation will assist in the development of programs such 
as those offered by Working Capital in Massachusetts and similar 
organizations across the country and will assist more Americans in 
taking a chance on the American dream of owning their own small 
business. I look forward to working with my colleagues to enact this 
important legislation.

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