[Congressional Record Volume 150, Number 30 (Wednesday, March 10, 2004)]
[House]
[Pages H990-H991]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  PROVIDING FOR ADDITIONAL TEMPORARY EXTENSION OF PROGRAMS UNDER THE 
        SMALL BUSINESS ACT AND THE SMALL BUSINESS INVESTMENT ACT

  Mr. MANZULLO. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 3915) to provide for an additional temporary extension of 
programs under the Small Business Act and the Small Business Investment 
Act of 1958 through May 21, 2004, and for other purposes, as amended.
  The Clerk read as follows:

                                H.R. 3915

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. ADDITIONAL TEMPORARY EXTENSION OF AUTHORIZATION OF 
                   PROGRAMS UNDER THE SMALL BUSINESS ACT AND THE 
                   SMALL BUSINESS INVESTMENT ACT OF 1958.

       The authorization for any program, authority, or provision, 
     including any pilot program, that was extended through March 
     15, 2004, by section 1(a) of Public Law 108-172 is further 
     extended through April 2, 2004, under the same terms and 
     conditions.

     SEC. 2. EXTENSION OF CERTAIN FEE AUTHORIZATIONS.

       Section 503(f) of the Small Business Investment Act of 1958 
     (15 U.S.C. 697(f)) is amended by striking ``October 1, 2003'' 
     and inserting ``May 21, 2004''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Illinois (Mr. Manzullo) and the gentlewoman from New York (Ms. 
Velazquez) each will control 20 minutes.
  The Chair recognizes the gentleman from Illinois (Mr. Manzullo).
  Mr. MANZULLO. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, this is a short and simple bill. H.R. 3915 authorizes a 
general extension of all programs under the Small Business Act and the 
Small Business Investment Act from its current ending date of March 15, 
2004, until April 2 of 2004. This will allow SBA programs that expire 
on Monday to continue to operate.
  In particular, these include the surety bond program which enables 
small businesses to obtain surety bonds in order to bid on government 
contracts, cosponsorship authority so that the SBA can host events or 
print publications with the private sector, and procurement of 
assistance that is provided to certain small businesses.
  H.R. 3915 as amended also authorizes the SBA to charge fees for the 
504 loan program with a certified development company until May 21 of 
2004.

                              {time}  1945

  This program operates solely based on the fees charged by the SBA to 
certified development companies. If such fees are not extended, there 
will be no way for certified development companies to make the type of 
long-term loans that small businesses rely on to create new jobs. The 
504 program operates totally upon user fees and has not received an 
appropriation since 1996.

[[Page H991]]

Unless H.R. 3915 is signed by the President soon, the 504 program will 
shut down on Monday.
  The ranking minority member and I have been working together on 
finding a solution to the 7(a) problem. Due to a variety of reasons, 
unfortunately, that solution is not part of this legislation. I pledge 
to the gentlewoman from New York (Ms. Velazquez) that I will do 
everything in my power to see to a resolution in the 7(a) problem as 
soon as possible.
  I urge my colleagues to support H.R. 3915.
  Mr. Speaker, I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, it is with great reluctance that I agree to the second 
short extension of the Small Business Administration. We are here today 
because this body has not been able to get our job done. All we ever 
hear from this administration and the majority party is how important 
small businesses are, but when we have a chance to do something as 
simple as ensuring small business of the capital they need to survive, 
no one from the other sides of the aisle is willing to step up to the 
plate.
  The administration's lack of commitment in supporting reauthorizing 
the Small Business Administration clearly demonstrates a disconnect 
between what they say and what they are willing to do. The 
administration has no problem depriving thousands of small businesses 
of the only affordable lending opportunities open to them. They are 
unconcerned that their decision to cut the 7(a) program jeopardizes 
over one-third of all 7(a) loans.
  This administration could not care less that thousands of small 
businesses that were guaranteed loans by Small Business Administration 
had their loans stripped out from under them and may now face 
bankruptcy. It does not seem to bother them one bit that they are 
driving lenders out of the 7(a) program, leaving even more small 
companies with no resources to build their businesses. You would think 
that job creation might get President Bush's attention, but his 
administration is denying small businesses access to $3 billion in 
loans this year alone, which will result in 90,000 lost jobs.
  The administration and the Republican leadership may be perfectly 
comfortable slamming the door shut on small businesses struggling to 
compete in the weak economy, but I am not. The 7(a) program has been on 
life support since January. The Small Business Administration flagship 
lending program was first shut down in early 2004 due to lack of funds. 
Small business owners, some who have put down their life savings, some 
who had plans to expand and hire new employees, some who were going to 
purchase new equipment found themselves left in the lurch. Even though 
they had played by the rules, submitted their applications on time and 
were approved for a loan, the Federal Government failed to honor its 
commitment to them.
  Both fairness and accountability flew out the window when the program 
was shut down and applications were returned to small business 
borrowers.
  Still today these small businesses are waiting for some relief. When 
it was reopened, the program saw new restrictions that are still in 
place. In its current state, the 7(a) program fails to serve the very 
small businesses Congress had in mind when it created this program in 
the first place. They are causality of this administration's lack of 
commitment to small businesses. And that is just plain wrong. We must 
address this crisis immediately.
  Our small businesses do not ask for much. Yet, they give so much in 
return. They create jobs in our local community. They pave the way for 
individuals to reach the American dream. They train our workers and 
generate new ideas. We should be given back giving back to them what 
they have given to us. And what does this bill give them? It gives them 
nothing. Now more than ever, our Nation needs small companies to 
succeed. They are the driving force of job creation in our economy. 
America's hard-working small businesses should be able to count on 
Congress to improve the Small Business Administration and its critical 
programs. Unfortunately, we are failing.
  Mr. Speaker, I would like to yield to the chairman of the committee 
for the purpose of entering into a colloquy.
  Would the chairman be willing to assure me that he will work to make 
changes to the 7(a) lending program by April 2, 2004?
  Mr. MANZULLO. Mr. Speaker, will the gentlewoman yield?
  Ms. VELAZQUEZ. I yield to the gentleman from Illinois.
  Mr. MANZULLO. I thank the ranking member. I will be willing to enter 
into a colloquy.
  I will assure the ranking member that I will work with her to make 
changes to the 7(a) lending program by April 2, 2004 that will resolve 
the problems currently affecting the 7(a) program through the end of 
fiscal year 2004. I make the sincerest assurance that these 
negotiations will involve all relevant parties, including House 
leadership and the White House and that the gentlewoman and her staff 
will be involved in such negotiations. I truly believe that we can 
solve this problem together.
  Ms. VELAZQUEZ. I thank the chairman. I appreciate his willing to 
willingness to work this issue out in a timely manner. However, given 
past experiences with the gentleman and our so-called agreements, I am 
sure you can understand my need to make this agreement abundantly clear 
with the gentleman.
  Mr. Speaker, small businesses continue to suffer under the current 
7(a) program restrictions, and we cannot continue to ignore this issue. 
It is the most pressing issue that the gentleman have jurisdiction 
over. I thank the Chairman.
  Mr. MANZULLO. I would like to thank the ranking member from New York 
for entering into this colloquy and resolving this issue amicably.
  Ms. VELAZQUEZ. Mr. Speaker, I yield back the balance of my time.
  Mr. MANZULLO. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Gerlach). The question is on the motion 
offered by the gentleman from Illinois (Mr. Manzullo) that the House 
suspend the rules and pass the bill, H.R. 3915, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  The title of the bill was amended so as to read: ``To provide for an 
additional temporary extension of programs under the Small Business Act 
and the Small Business Investment Act of 1958 through April 2, 2004, 
and for other purposes.''.
  A motion to reconsider was laid on the table.

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