[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     note) is repealed.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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