[Congressional Record Volume 146, Number 83 (Tuesday, June 27, 2000)]
[House]
[Pages H5190-H5194]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
CERTIFIED DEVELOPMENT COMPANY PROGRAM IMPROVEMENTS ACT OF 2000
Mrs. KELLY. Mr. Speaker, I move to suspend the rules and agree to the
resolution (H. Res. 533) providing for the concurrence by the House
with an amendment in the amendment of the Senate to H.R. 2614.
The Clerk read as follows:
H. Res. 533
Resolved, That upon the adoption of this resolution the
House shall be considered to have taken from the Speaker's
table the bill H.R. 2614, with the amendment of the Senate
thereto, and to have concurred in the amendment of the Senate
with an amendment as follows:
In lieu of the matter proposed to be inserted by the
amendment of the Senate, insert the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Certified Development
Company Program Improvements Act of 2000''.
SEC. 2. WOMEN-OWNED BUSINESSES.
Section 501(d)(3)(C) of the Small Business Investment Act
of 1958 (15 U.S.C. 695(d)(3)(C)) is amended by inserting
before the comma ``or women-owned business development''.
SEC. 3. MAXIMUM DEBENTURE SIZE.
Section 502(2) of the Small Business Investment Act of 1958
(15 U.S.C. 696(2)) is amended to read as follows:
``(2) Loan limits.--Loans made by the Administration under
this section shall be limited to $1,000,000 for each such
identifiable small business concern, other than loans meeting
the criteria specified in section 501(d)(3), which shall be
limited to $1,300,000 for each such identifiable small
business concern.''.
SEC. 4. FEES.
Section 503(f) of the Small Business Investment Act of 1958
(15 U.S.C. 697(f)) is amended to read as follows:
``(f) Effective Date.--The fees authorized by subsections
(b) and (d) shall apply to any financing approved by the
Administration during the period beginning on October 1, 1996
and ending on September 30, 2003.''.
SEC. 5. PREMIER CERTIFIED LENDERS PROGRAM.
Section 217(b) of the Small Business Administration
Reauthorization and Amendments Act of 1994 (15 U.S.C. 697e
note) is repealed.
SEC. 6. SALE OF CERTAIN DEFAULTED LOANS.
Section 508 of the Small Business Investment Act of 1958
(15 U.S.C. 697e) is amended--
(1) in subsection (a), by striking ``On a pilot program
basis, the'' and inserting ``The'';
(2) by redesignating subsections (d) though (i) as
subsections (e) though (j), respectively;
(3) in subsection (f) (as redesignated by paragraph (2)),
by striking ``subsection (f)'' and inserting ``subsection
(g)'';
(4) in subsection (h) (as redesignated by paragraph (2)),
by striking ``subsection (f)'' and inserting ``subsection
(g)''; and
(5) by inserting after subsection (c) the following:
``(d) Sale of Certain Defaulted Loans.--
``(1) Notice.--
``(A) In general.--If, upon default in repayment, the
Administration acquires a loan guaranteed under this section
and identifies such loan for inclusion in a bulk asset sale
of defaulted or repurchased loans or other financings, the
Administration shall give prior notice thereof to any
certified development company that has a contingent liability
under this section.
[[Page H5191]]
``(B) Timing.--The notice required by subparagraph (A)
shall be given to the certified development company as soon
as possible after the financing is identified, but not later
than 90 days before the date on which the Administration
first makes any record on such financing available for
examination by prospective purchasers prior to its offering
in a package of loans for bulk sale.
``(2) Limitations.--The Administration may not offer any
loan described in paragraph (1)(A) as part of a bulk sale,
unless the Administration--
``(A) provides prospective purchasers with the opportunity
to examine the records of the Administration with respect to
such loan; and
``(B) provides the notice required by paragraph (1).''.
SEC. 7. LOAN LIQUIDATION.
(a) Liquidation and Foreclosure.--Title V of the Small
Business Investment Act of 1958 (15 U.S.C. 695 et seq.) is
amended by adding at the end the following:
``SEC. 510. FORECLOSURE AND LIQUIDATION OF LOANS.
``(a) Delegation of Authority.--In accordance with this
section, the Administration shall delegate to any qualified
State or local development company (as defined in section
503(e)) that meets the eligibility requirements of subsection
(b)(1) of this section the authority to foreclose and
liquidate, or to otherwise treat in accordance with this
section, defaulted loans in its portfolio that are funded
with the proceeds of debentures guaranteed by the
Administration under section 503.
``(b) Eligibility for Delegation.--
``(1) Requirements.--A qualified State or local development
company shall be eligible for a delegation of authority under
subsection (a) if--
``(A) the company--
``(i) has participated in the loan liquidation pilot
program established by the Small Business Programs
Improvement Act of 1996 (15 U.S.C. 695 note), as in effect on
the day before the date of issuance of final regulations by
the Administration implementing this section;
``(ii) is participating in the Premier Certified Lenders
Program under section 508; or
``(iii) during the 3 fiscal years immediately prior to
seeking such a delegation, has made an average of not fewer
than 10 loans per year that are funded with the proceeds of
debentures guaranteed under section 503; and
``(B) the company--
``(i) has 1 or more employees--
``(I) with not less than 2 years of substantive, decision-
making experience in administering the liquidation and
workout of problem loans secured in a manner substantially
similar to loans funded with the proceeds of debentures
guaranteed under section 503; and
``(II) who have completed a training program on loan
liquidation developed by the Administration in conjunction
with qualified State and local development companies that
meet the requirements of this paragraph; or
``(ii) submits to the Administration documentation
demonstrating that the company has contracted with a
qualified third-party to perform any liquidation activities
and secures the approval of the contract by the
Administration with respect to the qualifications of the
contractor and the terms and conditions of liquidation
activities.
``(2) Confirmation.--On request, the Administration shall
examine the qualifications of any company described in
subsection (a) to determine if such company is eligible for
the delegation of authority under this section. If the
Administration determines that a company is not eligible, the
Administration shall provide the company with the reasons for
such ineligibility.
``(c) Scope of Delegated Authority.--
``(1) In general.--Each qualified State or local
development company to which the Administration delegates
authority under subsection (a) may, with respect to any loan
described in subsection (a)--
``(A) perform all liquidation and foreclosure functions,
including the purchase in accordance with this subsection of
any other indebtedness secured by the property securing the
loan, in a reasonable and sound manner, according to
commercially accepted practices, pursuant to a liquidation
plan approved in advance by the Administration under
paragraph (2)(A);
``(B) litigate any matter relating to the performance of
the functions described in subparagraph (A), except that the
Administration may--
``(i) defend or bring any claim if--
``(I) the outcome of the litigation may adversely affect
management by the Administration of the loan program
established under section 502; or
``(II) the Administration is entitled to legal remedies not
available to a qualified State or local development company,
and such remedies will benefit either the Administration or
the qualified State or local development company; or
``(ii) oversee the conduct of any such litigation; and
``(C) take other appropriate actions to mitigate loan
losses in lieu of total liquidation or foreclosure, including
the restructuring of a loan in accordance with prudent loan
servicing practices and pursuant to a workout plan approved
in advance by the Administration under paragraph (2)(C).
``(2) Administration approval.--
``(A) Liquidation plan.--
``(i) In general.--Before carrying out functions described
in paragraph (1)(A), a qualified State or local development
company shall submit to the Administration a proposed
liquidation plan.
``(ii) Administration action on plan.--
``(I) Timing.--Not later than 15 business days after a
liquidation plan is received by the Administration under
clause (i), the Administration shall approve or reject the
plan.
``(II) Notice of no decision.--With respect to any
liquidation plan that cannot be approved or denied within the
15-day period required by subclause (I), the Administration
shall, during such period, provide notice in accordance with
subparagraph (E) to the company that submitted the plan.
``(iii) Routine actions.--In carrying out functions
described in paragraph (1)(A), a qualified State or local
development company may undertake any routine action not
addressed in a liquidation plan without obtaining additional
approval from the Administration.
``(B) Purchase of indebtedness.--
``(i) In general.--In carrying out functions described in
paragraph (1)(A), a qualified State or local development
company shall submit to the Administration a request for
written approval before committing the Administration to the
purchase of any other indebtedness secured by the property
securing a defaulted loan.
``(ii) Administration action on request.--
``(I) Timing.--Not later than 15 business days after
receiving a request under clause (i), the Administration
shall approve or deny the request.
``(II) Notice of no decision.--With respect to any request
that cannot be approved or denied within the 15-day period
required by subclause (I), the Administration shall, during
such period, provide notice in accordance with subparagraph
(E) to the company that submitted the request.
``(C) Workout plan.--
``(i) In general.--In carrying out functions described in
paragraph (1)(C), a qualified State or local development
company shall submit to the Administration a proposed workout
plan.
``(ii) Administration action on plan.--
``(I) Timing.--Not later than 15 business days after a
workout plan is received by the Administration under clause
(i), the Administration shall approve or reject the plan.
``(II) Notice of no decision.--With respect to any workout
plan that cannot be approved or denied within the 15-day
period required by subclause (I), the Administration shall,
during such period, provide notice in accordance with
subparagraph (E) to the company that submitted the plan.
``(D) Compromise of indebtedness.--In carrying out
functions described in paragraph (1)(A), a qualified State or
local development company may--
``(i) consider an offer made by an obligor to compromise
the debt for less than the full amount owing; and
``(ii) pursuant to such an offer, release any obligor or
other party contingently liable, if the company secures the
written approval of the Administration.
``(E) Contents of notice of no decision.--Any notice
provided by the Administration under subparagraph
(A)(ii)(II), (B)(ii)(II), or (C)(ii)(II)--
``(i) shall be in writing;
``(ii) shall state the specific reason for the inability of
the Administration to act on the subject plan or request;
``(iii) shall include an estimate of the additional time
required by the Administration to act on the plan or request;
and
``(iv) if the Administration cannot act because
insufficient information or documentation was provided by the
company submitting the plan or request, shall specify the
nature of such additional information or documentation.
``(3) Conflict of interest.--In carrying out functions
described in paragraph (1), a qualified State or local
development company shall take no action that would result in
an actual or apparent conflict of interest between the
company (or any employee of the company) and any third party
lender (or any associate of a third party lender) or any
other person participating in a liquidation, foreclosure, or
loss mitigation action.
``(d) Suspension or Revocation of Authority.--The
Administration may revoke or suspend a delegation of
authority under this section to any qualified State or local
development company, if the Administration determines that
the company--
``(1) does not meet the requirements of subsection (b)(1);
``(2) has violated any applicable rule or regulation of the
Administration or any other applicable provision of law; or
``(3) has failed to comply with any reporting requirement
that may be established by the Administration relating to
carrying out functions described in subsection (c)(1).
``(e) Report.--
``(1) In general.--Based on information provided by
qualified State and local development companies and the
Administration, the Administration shall annually submit to
the Committees on Small Business of the House of
Representatives and the Senate a report on the results of
delegation of authority under this section.
``(2) Contents.--Each report submitted under paragraph (1)
shall include--
``(A) with respect to each loan foreclosed or liquidated by
a qualified State or local development company under this
section, or for which losses were otherwise mitigated by the
company pursuant to a workout plan under this section--
[[Page H5192]]
``(i) the total cost of the project financed with the loan;
``(ii) the total original dollar amount guaranteed by the
Administration;
``(iii) the total dollar amount of the loan at the time of
liquidation, foreclosure, or mitigation of loss;
``(iv) the total dollar losses resulting from the
liquidation, foreclosure, or mitigation of loss; and
``(v) the total recoveries resulting from the liquidation,
foreclosure, or mitigation of loss, both as a percentage of
the amount guaranteed and the total cost of the project
financed;
``(B) with respect to each qualified State or local
development company to which authority is delegated under
this section, the totals of each of the amounts described in
clauses (i) through (v) of subparagraph (A);
``(C) with respect to all loans subject to foreclosure,
liquidation, or mitigation under this section, the totals of
each of the amounts described in clauses (i) through (v) of
subparagraph (A);
``(D) a comparison between--
``(i) the information provided under subparagraph (C) with
respect to the 12-month period preceding the date on which
the report is submitted; and
``(ii) the same information with respect to loans
foreclosed and liquidated, or otherwise treated, by the
Administration during the same period; and
``(E) the number of times that the Administration has
failed to approve or reject a liquidation plan in accordance
with subsection (c)(2)(A) or a workout plan in accordance
with subsection (c)(2)(C), or to approve or deny a request
for purchase of indebtedness under subsection (c)(2)(B),
including specific information regarding the reasons for the
failure of the Administration and any delay that resulted.''.
(b) Regulations.--
(1) In general.--Not later than 150 days after the date of
enactment of this Act, the Administrator shall issue such
regulations as may be necessary to carry out section 510 of
the Small Business Investment Act of 1958, as added by
subsection (a) of this section.
(2) Termination of pilot program.--Effective on the date on
which final regulations are issued under paragraph (1),
section 204 of the Small Business Programs Improvement Act of
1996 (15 U.S.C. 695 note) shall cease to have legal effect.
SEC. 8. FUNDING LEVELS FOR CERTAIN FINANCINGS UNDER THE SMALL
BUSINESS INVESTMENT ACT OF 1958.
Section 20 of the Small Business Act (15 U.S.C. 631 note)
is amended by adding at the end the following:
``(g) Program Levels for Certain Small Business Investment
Act of 1958 Financings.--The following program levels are
authorized for financings under section 504 of the Small
Business Investment Act of 1958:
``(1) $4,000,000,000 for fiscal year 2001.
``(2) $5,000,000,000 for fiscal year 2002.
``(3) $6,000,000,000 for fiscal year 2003.''.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
New York (Mrs. Kelly) and the gentlewoman from New York (Ms. Velazquez)
each will control 20 minutes.
The Chair recognizes the gentlewoman from New York (Mrs. Kelly).
Mrs. KELLY. Mr. Speaker, I yield myself as much time as I may
consume.
Mr. Speaker, the resolution before us returns H.R. 2614, the
Certified Development Companies Improvement Act to the Senate. The
House originally passed H.R. 2614 last August by a voice vote.
The resolution before us will accept one of the four Senate
amendments added during Senate consideration of H.R. 2614 2 weeks ago.
The amendment authorizes the 504 program for 3 more years, through
fiscal 2003. The resolution rejects the other three Senate amendments.
The three rejected amendments includes language that the House cannot
accept.
The first rejected amendment would transfer funds from the DELTA loan
program and the guaranteed microloan program to the 7(a) loan program.
While we understand the need for the transfer, the amendment violates
the Committee on the Budget and the Committee on Appropriations rules
since the funds have dissimilar outlay rates.
The second rejected amendment mandates that, if certain outstanding
504 license applications are not acted upon within 21 days, those
licenses shall be deemed approved.
While we agree that the delay at the SBA is unconscionable, Congress
should not be in the position of, whenever executive branch inaction
arises, stepping in to do their jobs for them. It sets an unhealthy
precedent and opens a Pandora's box.
The third rejected amendment changes certain eligibility standards
for the HUBZone contracting program. Regardless of its merits, this
amendment is best discussed as part of the larger reauthorization
legislation. It has no bearing on H.R. 2614 and is best discussed with
similar provisions in the reauthorization currently being negotiated
with the Senate.
Mr. Speaker, I ask my colleagues to support the House version of H.R.
2614. It amends the Small Business Investment Act to make changes in
the Small Business Administration's section 504 loan program without
adding any unnecessary language or issues.
The 504 program guarantees small business loans for construction and
renovation and provides nearly $3 billion of financial assistance every
year. It is an important program that needs our unencumbered support.
H.R. 2614 makes five basic changes to the 504 program. It increases
the maximum debenture size for section 504 loans from $750,000 to $1
million and the size of public policy debenture-backed loans from $1
million to $1.3 million. It adds women-owned businesses to the current
list of businesses eligible for the larger public policy loans up to
$1.3 million, continuing our efforts to increase assistance to women-
owned businesses.
It will reauthorize the fees for the program which keep the 504
program at a zero subsidy rate, covering all the costs resulting in no
cost to the taxpayer.
H.R. 2614 will also grant permanent status to the Preferred Certified
Lender Program before it sunsets at the end of fiscal year 2000.
Finally, to improve recovery rates on defaulting 504 loans, H.R. 2614
makes the Loan Liquidation Pilot Program a permanent program.
Mr. Speaker, I again want to urge my colleagues to support the House
amendment to H.R. 2614. It would mean a significant improvement in
services to their small business constituents.
Mr. Speaker, I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as may consume.
Mr. Speaker, as a strong supporter of SBA 504 loan programs, I rise
in support of House Resolution 533.
The 504 program is one of the most important small business loan
programs administered by the Small Business Administration. It
represents access to capital for countless entrepreneurs who might not
otherwise have a chance to turn their dreams into reality. Since 1980,
over 25,000 businesses have received more than $20 billion in fixed-
asset financing through the 504 program.
Mr. Speaker, in August of last year, the House passed a clean
bipartisan bill to reauthorize the 504 loan program. That original
House bill, which passed under suspension of the rules, was supported
by the administration as well as by small businesses and the
participating lenders.
The changes made to the legislation streamlined the program, and they
also recognized the role that women-owned businesses play in the
economy by making lending to women owners a public policy priority. In
addition, the bill increased the loan sizes from $750,000 to $1 million
to keep the pace with inflation and allow more businesses the access to
the critical capital they need to expand their business.
These changes in the program represent reasonable improvements to
update the program, making it more responsive to the needs of lenders
and small businesses alike.
Ten months later, we have received a bill from the other body that
includes several nonrelated provisions, some that could potentially be
harmful. These changes include reallocating funding to help the 7(a)
program. While this is a critical need, the language will constitute
appropriating on an authorizing bill. The legislation would also expand
the HUBZone program to allow those businesses that no longer reside in
low-income areas to continue in the program. This change is contrary to
the intention of the HUBZone program and further dilutes its mission.
Finally, the legislation will remove decision-making power regarding
certain program licenses from the regulators at SBA. This represents
micromanaging at its worst.
Moreover, these changes divert us from the original purpose of the
504 program which must be reauthorized quickly to ensure that it
continues to
[[Page H5193]]
provide access to critical capital for our Nation's small businesses.
Mr. Speaker, the 504 program serves as an engine of our economic
development. I have seen its effect on a community. In my district, Les
Fres Ford, a car dealership, is using a 504 loan to better serve its
customers and to expand its business. It will also bring up to 50 new
jobs to the community. These are good-paying jobs that will help
families in the community I represent. This is just one example of the
success that is taking place across this country, making the 504
program one of the SBA's bedrock programs.
Mr. Speaker, I urge my colleagues to support this legislation.
Mr. Speaker, I reserve the balance of my time.
Mrs. KELLY. Mr. Speaker, I have no additional speakers, so I reserve
my right to close.
Ms. VELAZQUEZ. Mr. Speaker, I yield such time as he may consume to
the gentleman from Illinois (Mr. Davis).
Mr. DAVIS of Illinois. Mr. Speaker, first of all, I want to commend
the gentleman from Missouri (Chairman Talent) and the gentlewoman from
New York (Ms. Velazquez), ranking member, as well as the gentlewoman
from New York (Mrs. Kelly) and all of the other members of the
Committee on Small Business for the outstanding bipartisan way in which
this committee conducts its business. We can all see that, when people
work together that way, there are results, and they are results which
can be measured. So I rise in strong support of this resolution.
Over the past 20 years, the 504 program has clearly been one of the
real success stories in business development. As many on the committee
know, the 504 program is a completely fee-generated program and is not
supported by any Federal funds. So we are not really talking about
dipping into the Treasury. We are talking about making something work
as part of business and economic development.
Due to the success of the program, this bill will extend the current
fee system for the program until October 1, 2003. The bill will also
increase the loan guarantee from $750,000 to $1 million.
Of course, Mr. Speaker, as we all know, it will benefit women-owned
businesses, and women-owned businesses currently employ 18.5 million
United States workers and contribute more than $3.38 trillion annually
to the economy. As a result, the 504 program increases the amount of
loan guarantee available to women-owned businesses.
But most importantly, I think this bill is affirmation and a
testament to the idea that, when people come together and work for the
common interests, it does not matter which party they come from, which
area of the country, which city, what their real philosophies and ideas
are, other than if they come to work together, they can arrive at a
common direction and a common success. Of course that direction and
success means providing capital and direct services to the businesses
that need it.
So, once again, I want to commend the gentleman from Missouri
(Chairman Talent); the gentlewoman from New York (Ms. Velazquez), the
ranking member; and all members of the Committee on Small Business for
an outstanding job well done that will benefit businesses in America.
Ms. VELAZQUEZ. Mr. Speaker, I yield such time as she may consume to
the gentlewoman from the Virgin Islands (Mrs. Christensen).
Mrs. CHRISTENSEN. Mr. Speaker, I also want to join the gentleman from
Illinois (Mr. Davis) in commending the gentleman from Missouri
(Chairman Talent) and the gentlewoman from New York (Ms. Velazquez),
ranking member, for their leadership and the bipartisan way in which
they guide our committee, and to also commend the gentlewoman from New
York (Mrs. Kelly) for her leadership as well.
Mr. Speaker, today I rise in support of H.R. 2614 to reauthorize and
improve upon the Small Business 504 program. This program is considered
one of the premier small business loan programs administered by the
Small Business Administration.
Mr. Speaker, the 504 program is a completely fee-generated program
and is not supported by Federal funds. Its work is done through
certified community development corporations.
I am particularly proud of the work that is done in my district by
the St. Croix Foundation for Community Development, the Community
Foundation for the Virgin Islands on St. Thomas, and the St. John
Community Foundation, who are doing so much to stimulate economic
development for my constituents.
Last year, through a strong bipartisan effort, the House passed H.R.
2614. Among the various improvements, it provided for the extension of
the current fee system for the program until October 1, 2003, an
increase of the government loan guarantee level from $750,000 to $1
million. Most importantly, Mr. Speaker, H.R. 2614 added women to the
list of public policy goals for the 504 program. By doing so, the 504
program increased the amount of government loan guarantees available to
women-owned businesses. This is very important as one out of five
individuals are employed by women-owned businesses.
However, Mr. Speaker, the Senate included several unrelated and, in
some cases, harmful provisions that would delay the passage of this
legislation. These changes include, but are not limited to, the Senate
language that would allow Congress to regulate the agency and decide
who receives licenses under this program. Mr. Speaker, this is an
ultimate form of micromanagement.
The Senate also included language that would expand the HUBZone
program to allow businesses that move out of a low-income or
underutilized area to continue to benefit, which is in clear
contradiction to the original intent of that program.
Mr. Speaker, I urge my colleagues to vote to maintain the original
intent of H.R. 2614, which will improve the 504 program and increase
the access of this valuable loan program to more of our constituents.
{time} 1200
Ms. VELAZQUEZ. Mr. Speaker, I yield 3 minutes to the gentlewoman from
Texas (Ms. Jackson-Lee).
(Ms. JACKSON-LEE of Texas asked and was given permission to revise
and extend her remarks.)
Ms. JACKSON-LEE of Texas. Mr. Speaker, I want to thank the ranking
member, the gentlewoman from New York (Ms. Velazquez) and the
gentlewoman from New York (Mrs. Kelly), who I know has been, along with
Members of the Women's Caucus, very strong on the issues of small
business, along with the chairman, the gentleman from Missouri (Mr.
Talent), for reauthorizing this legislation.
I came to the floor because I cannot think of a greater economic
engine in this Nation than small businesses. The 504 loan program and
the increase of loan opportunity from $750,000 to $1 million is going
to take us leaps and bounds into the 21st century.
We have had some vigorous debates on the floor of the House over
these past couple of months. A lot of them have involved the idea of
trade and international business. My community is dominated by small
businesses, minority-owned businesses and women-owned businesses, and
one of their visions, as they have come to me, is the opportunity to
reach beyond the boundaries of the United States. And as they are the
economic engine of this Nation, I believe that their counterparts are
in various places around the world. This opportunity of funding with a
loan program that is reasonably responsive allows our small businesses
to expand their vision and their opportunities to do international
trade. At the same time, it continues to reaffirm their importance in
our economy.
One of the things that small businesses ask for when I meet with them
and dialogue with them on their issues is to be given the opportunity
to be as small as they want to be, but also to be as big as they want
to be. So this loan program allows small businesses to keep the
familiarity of a small, a minority-owned, a women-owned business, but
it also allows them to grow exponentially with respect to resources,
finance, income, and revenue, and that I applaud.
Let me also say that I am very pleased to compliment the regional
office, the local office of the Small Business Administration in my
district, headed by Milton Wilson. That region and that locality has
utilized its outreach efforts to ensure that small businesses in the
one-stop office and the
[[Page H5194]]
general store that has been implemented in my district know how to
reach out to resources. I am hoping this legislation will be well
announced so that our small businesses are aware of the increase and
the modifications that have been made in a positive way so that we can
increase the participation of small businesses in this economy.
This is a good piece of legislation. I am looking forward to its
movement and for it to be signed. I do understand that we have
responded to some modifications that need to be made in order to
improve the bill; so I, therefore, applaud its passage and I ask my
colleagues to support the legislation.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may
consume.
Oftentimes in a debate the question is asked, are we giving taxpayers
good value for their dollars. I would say to my colleagues that the 504
program, which is totally run on fees, with no cost to the taxpayers,
is a perfect example of where the taxpayer clearly gets his money's
worth. It is also a good example of how best to spur entrepreneurship,
because we know that access to capital is access to opportunity.
With today's reauthorization we are ensuring that the 504 program
will continue to be available to provide loans to the small businesses
that are the driving force behind America's unprecedented economic
growth.
Mr. Speaker, I want to thank the chairman of the committee, the
gentleman from Missouri (Mr. Talent), and the gentlewoman from New York
(Mrs. Kelly) for their hard work on this bill. I would also like to
thank the staff, Charles Roe and Harry Katrice of the majority, and
Michael Day and Eric Edwards of my staff, as well as all the members of
the Committee on Small Business for their bipartisan efforts to
reauthorize this loan program. I urge my colleagues to support this
bill.
Mr. Speaker, I yield back the balance of my time.
Mrs. KELLY. Mr. Speaker, I yield myself such time as I may consume,
and I wish to thank the chairman of the committee, the gentleman from
Missouri (Mr. Talent), for all his efforts; and I also want to thank
very much the ranking Democratic member, the gentlewoman from New York
(Ms. Velazquez), for her assistance and cooperation. It is a hallmark
of our committee that we work in such a bipartisan way.
This is solid legislation that we, we the small business owners of
America, need to have in place. This resolution supports a clear House
position and accepts a reasonable Senate amendment, and I ask all the
Members to support it.
Ms. MILLENDER-McDONALD. Mr. Speaker, I rise today in strong support
of H. Res. 533. Earlier last year, we passed H.R. 2614 with
overwhelming bipartisan support. The 504 Certified Development Company
is considered one of the premier business loan programs administered by
the Small Business Administration (SBA). Over the past 20 years, the
504 program has clearly been one of the greatest success stories in
business development efforts made by the Small Business Administration.
It is considered one of the ``best values for the taxpayers.'' In that
time, we have seen it mature into one of SBA's bedrock programs, by
providing over $20 billion dollars in assistance to more than 25,000
businesses. Since 1980, the 290 CDC's nationwide have provided more
than $20 billion in fixed asset financing to over 25,000 business
concerns.
H.R. 2614 left the House as a good bill, however, the Senate included
several unrelated, and in some way harmful provisions that will delay
the passage of this legislation. The Senate language would have allowed
Congress to regulate the agency and decide who receives licenses under
the 504 program. This is the ultimate in micro-managing. Furthermore,
the language reprogrammed critically needed money into the 7(a)
program. This constitutes appropriating on an authorizing bill that
will cause serious delays. I believe that the most damaging provision
put forth by the Senate is the expansion of the HUBZone program to
allow businesses that no longer reside in low-income areas to continue
to enjoy the benefits of the program. This is a clear contrast and
violation to the original intent of the program.
Colleagues, we cannot let these bad provisions spoil the good that is
in H.R. 2614. The bill extends current fee system for the program until
October 1, 2003. As a member of the Committee, I know that the 504
program is completely fee generated and is not currently supported by
any federal funds. The ``Premier Certified Lenders Program'' was
granted permanent status. PCLP is designed to allow established lenders
to expedite the loan application process. This streamlines the process
and provides immediate access to funds. I was proud to see that during
Committee we raised the amount of loan guarantee available from
$750,000 to $1,000,000.
One of the vital improvements was the addition of women to the list
of public policy goals for the 504 program. By doing so, the 504
program increased the amount of government loan guarantee available to
women-owned businesses. As we all know, women-owned business are the
growth agents of the future. Presently they contribute more than $2.38
trillion dollars annually in revenues to the economy. This is more than
the gross domestic product of most countries. In the United States,
women-owned businesses employ one out of every five U.S. workers--a
total of 18.5 million employees.
I urge my colleagues to support H. Res. 533 and continue to ensure
that the 504 Certified Development Company is prepared to continue
helping new small businesses, grow existing ones, and provide
opportunities so that none are not left out of the changing
marketplace.
Mrs. KELLY. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Simpson). The question is on the motion
offered by the gentlewoman from New York (Mrs. Kelly) that the House
suspend the rules and agree to the resolution, House Resolution 533.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the resolution was agreed to.
A motion to reconsider was laid on the table.
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