[Congressional Record Volume 150, Number 43 (Wednesday, March 31, 2004)]
[House]
[Pages H1746-H1750]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 TEMPORARY EXTENSION OF PROGRAMS UNDER THE SMALL BUSINESS ACT AND THE 
                 SMALL BUSINESS INVESTMENT ACT OF 1958

  Mr. MANZULLO. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 4062) to provide for an additional temporary extension of 
programs under the Small Business Act and the Small Business Investment 
Act of 1958 through June 4, 2004, and for other purposes.
  The Clerk read as follows:

                               H.R. 4062

       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 SMALL BUSINESS ACT AND SMALL 
                   BUSINESS INVESTMENT ACT OF 1958.

       The authorization for any program, authority, or provision, 
     including any pilot program, that was extended through April 
     2, 2004, by section 1 of Public Law 108-205 is further 
     extended through June 4, 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)), as amended by section 2 of Public Law 
     108-205, is further amended by striking ``May 21, 2004'' and 
     inserting ``October 1, 2004''.

     SEC. 3. FISCAL YEAR 2004 PURCHASE AND GUARANTEE AUTHORITY 
                   UNDER TITLE III OF 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 new subsection:
       ``(j) Fiscal Year 2004 Purchase and Guarantee Authority 
     Under Title III of Small Business Investment Act of 1958.--
     For fiscal year 2004, for the programs authorized by title 
     III of the Small Business Investment Act of 1958 (15 U.S.C. 
     681 et seq.), the Administration is authorized to make--
       ``(1) $4,000,000,000 in purchases of participating 
     securities; and
       ``(2) $3,000,000,000 in guarantees of debentures.''.

     SEC. 4. COMBINATION FINANCING.

       (a) In General.--During the period beginning on the date of 
     the enactment of this section and ending on September 30, 
     2004, subsection (a) of section 7 of the Small Business Act 
     (15 U.S.C. 636(a)) shall be applied as if the paragraph set 
     forth in subsection (b) were added at the end of that 
     subsection (a).
       (b) Paragraph Specified.--The paragraph referred to in 
     subsection (a) is as follows:
       ``(31) Combination financing.--
       ``(A) Definitions.--In this paragraph--
       ``(i) the term `combination financing' means financing 
     comprised of a loan guaranteed under this subsection and a 
     commercial loan; and
       ``(ii) the term `commercial loan' means a loan which is 
     part of a combination financing and no portion of which is 
     guaranteed by the Federal Government.
       ``(B) Applicability.--This paragraph applies to a loan 
     guarantee obtained by a small business concern under this 
     subsection, if the small business concern also obtains a 
     commercial loan.
       ``(C) Commercial loan amount.--In the case of any 
     combination financing, the amount of the commercial loan 
     which is part of such financing shall not exceed the gross 
     amount of the loan guaranteed under this subsection which is 
     part of such financing.
       ``(D) Commercial loan provisions.--The commercial loan 
     obtained by the small business concern--
       ``(i) may be made by the participating lender that is 
     providing financing under this subsection or by a different 
     lender;
       ``(ii) may be secured by a senior lien; and
       ``(iii) may be made by a lender in the Preferred Lenders 
     Program, if applicable.
       ``(E) Commercial loan fee.--A one-time fee in an amount 
     equal to 0.7 percent of the amount of the commercial loan 
     shall be paid by the lender to the Administration if the 
     commercial loan has a senior credit position to that of the 
     loan guaranteed under this subsection. Paragraph (23)(B) 
     shall apply to the fee established by this paragraph.
       ``(F) Deferred participation loan security.--A loan 
     guaranteed under this subsection may be secured by a 
     subordinated lien.

[[Page H1747]]

       ``(G) Completion of application processing.--The 
     Administrator shall complete processing of an application for 
     combination financing under this paragraph pursuant to the 
     program authorized by this subsection as it was operating on 
     October 1, 2003.
       ``(H) Business loan eligibility.--Any standards prescribed 
     by the Administrator relating to the eligibility of small 
     business concerns to obtain combination financing under this 
     subsection which are in effect on the date of the enactment 
     of this paragraph shall apply with respect to combination 
     financings made under this paragraph. Any modifications to 
     such standards by the Administrator after such date shall not 
     unreasonably restrict the availability of combination 
     financing under this paragraph relative to the availability 
     of such financing before such modifications.''.

     SEC. 5. LOAN GUARANTEE FEES.

       (a) In General.--During the period beginning on the date of 
     the enactment of this section and ending on September 30, 
     2004, subparagraph (A) of paragraph (23) of subsection (a) of 
     section 7 of the Small Business Act (15 U.S.C. 636(a)(23)(A)) 
     shall be applied as if that subparagraph consisted of the 
     language set forth in subsection (b).
       (b) Language Specified.--The language referred to in 
     subsection (a) is as follows:
       ``(A) Percentage.--
       ``(i) In general.--With respect to each loan guaranteed 
     under this subsection, the Administrator shall, in accordance 
     with such terms and procedures as the Administrator shall 
     establish by regulation, assess and collect an annual fee in 
     an amount equal to 0.5 percent of the outstanding balance of 
     the deferred participation share of the loan.
       ``(ii) Temporary percentage.--With respect to loans 
     approved during the period beginning on the date of enactment 
     of this clause and ending on September 30, 2004, the annual 
     fee assessed and collected under clause (i) shall be equal to 
     0.36 percent of the outstanding balance of the deferred 
     participation share of the loan.''.
       (c) Retention of Certain Fees.--Subparagraph (B) of 
     paragraph (18) of subsection (a) of section 7 of the Small 
     Business Act (15 U.S.C. 636(a)(18)(B)) shall not be effective 
     during the period beginning on the date of the enactment of 
     this section and ending on September 30, 2004.

     SEC. 6. EXPRESS LOAN PROVISIONS.

       (a) Definitions.--For the purposes of this section:
       (1) The term ``express lender'' shall mean any lender 
     authorized by the Administrator to participate in the Express 
     Loan Pilot Program.
       (2) The term ``Express Loan'' shall mean any loan made 
     pursuant to section 7(a) of the Small Business Act (15 U.S.C. 
     636(a)) in which a lender utilizes to the maximum extent 
     practicable its own loan analyses, procedures, and 
     documentation.
       (3) The term ``Express Loan Pilot Program'' shall mean the 
     program established by the Administrator prior to the date of 
     enactment of this section under the authority granted in 
     section 7(a)(25)(B) of the Small Business Act (15 U.S.C. 
     636(a)(25(B)) with a guaranty rate not to exceed 50 percent.
       (4) The term ``Administrator'' means the Administrator of 
     the Small Business Administration.
       (5) The term ``small business concern'' has the same 
     meaning given such term under section 3(a) of the Small 
     Business Act (15 U.S.C. 632(a)).
       (b) Restriction to Express Lender.--The authority to make 
     an Express Loan shall be limited to those lenders deemed 
     qualified to make such loans by the Administrator. 
     Designation as an express lender for purposes of making an 
     Express Loan shall not prohibit such lender from taking any 
     other action authorized by the Administrator for that lender 
     pursuant to section 7(a) of the Small Business Act (15 U.S.C. 
     636(a)).
       (c) Grandfathering of Existing Lenders.--Any express lender 
     shall retain such designation unless the Administrator 
     determines that the express lender has violated the law or 
     regulations promulgated by the Administrator or modifies the 
     requirements to be an express lender and the lender no longer 
     satisfies those requirements.
       (d) Temporary Expansion of Express Loan Pilot Program.--
       (1) Authorization.--As of the date of enactment of this 
     section, the maximum loan amount in the Express Loan Pilot 
     Program shall be increased to a maximum loan amount of 
     $2,000,000 as set forth in section 7(a)(3)(A) of the Small 
     Business Act (15 U.S.C. 636(a)(3)(A)).
       (2) Termination date.--The authority set forth in paragraph 
     (1) shall terminate on September 30, 2004.
       (3) Savings provision.--Nothing in this section shall be 
     interpreted to modify or alter the authority of the 
     Administrator to continue to operate the Express Loan Pilot 
     Program on or after October 1, 2004.
       (e) Option to Participate.--Except as otherwise provided in 
     this section, the Administrator shall take no regulatory, 
     policy, or administrative action, without regard to whether 
     such action requires notification pursuant to section 
     7(a)(24) of the Small Business Act (15 U.S.C. 636(a)(24)), 
     that has the effect of--
       (1) requiring a lender to make an Express Loan pursuant to 
     subsection (d);
       (2) limiting or modifying any term or condition of deferred 
     participation loans made under such section (other than 
     Express Loans) unless the Administrator imposes the same 
     limit or modification on Express Loans;
       (3) transferring or re-allocating staff, staff 
     responsibilities, resources, or funding, if the result of 
     such transfer or re-allocation would be to increase the 
     average loan processing, approval, or disbursement time above 
     the averages for those functions as of October 1, 2003, for 
     loan guarantees approved under such section by employees of 
     the Administration or through the Preferred Lenders Program; 
     or
       (4) otherwise providing any incentive or disincentive which 
     encourages lenders or borrowers to make or obtain loans under 
     the Express Loan Pilot Program instead of under the general 
     loan authority of section 7(a) of the Small Business Act (15 
     U.S.C. 636(a)).
       (f) Collection and Reporting of Data.--For all loans in 
     excess of $250,000 made pursuant to the authority set forth 
     in subsection (d)(1), the Administrator shall, to the extent 
     practicable, collect data on the purpose for each such loan. 
     The Administrator shall report monthly to the Committee on 
     Small Business and Entrepreneurship of the Senate and the 
     Committee on Small Business of the House of Representatives 
     on the number of such loans and their purposes.
       (g) Termination.--Subsections (b), (c), (e), and (f) shall 
     not apply after September 30, 2004.

     SEC. 7. FISCAL YEAR 2004 DEFERRED PARTICIPATION STANDARDS.

       Deferred participation loans made during the period 
     beginning on the date of the enactment of this Act and ending 
     on September 30, 2004, under section 7(a) of the Small 
     Business Act (15 U.S.C. 636(a)) shall have the same terms and 
     conditions (including maximum gross loan amounts and 
     collateral requirements) as were applicable to loans made 
     under such section on October 1, 2003, except as otherwise 
     provided in this Act. This section shall not preclude the 
     Administrator of the Small Business Administration from 
     taking such action as necessary to maintain the loan program 
     carried out under such section, subject to appropriations.

     SEC. 8. TEMPORARY INCREASE IN LOAN LIMIT UNDER BUSINESS LOAN 
                   AND INVESTMENT FUND AND IN ASSOCIATED GUARANTEE 
                   FEES.

       (a) Temporary Increase in Amount Permitted To Be 
     Outstanding and Committed.--During the period beginning on 
     the date of the enactment of this Act and ending on September 
     30, 2004, section 7(a)(3)(A) of the Small Business Act (15 
     U.S.C. 636(a)(3)(A)) shall be applied as if the first dollar 
     figure were $1,500,000.
       (b) Temporary Guarantee Fee on Deferred Participation Share 
     Over $1,000,000.--With respect to loans made during the 
     period referred to in subsection (a) to which section 
     7(a)(18) of the Small Business Act (15 U.S.C. 636(a)(18)) 
     applies, the Administrator of the Small Business 
     Administration shall collect an additional guarantee fee 
     equal to 0.25 percent of the amount (if any) by which the 
     deferred participation share of the loan exceeds $1,000,000.

  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).


                             General Leave

  Mr. MANZULLO. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days within which to revise and extend their 
remarks and include extraneous material on this legislation.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Illinois?
  There was no objection.
  Mr. MANZULLO. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, this bill is a bipartisan work product between the 
gentlewoman from New York (Ms. Velazquez) and me and is a result of the 
commitment made on the House floor earlier this month to provide a fix 
to the problem in the main flagship guaranteed lending program of the 
Small Business Administration.
  This legislation would not only restore the overall 7(a) program to 
full strength, but also expand its outreach to help more small 
businesses grow and create more jobs.
  Earlier this year, a funding shortfall unfortunately required the SBA 
to temporarily suspend the program for a week, reduce the maximum loan 
size to $750,000, and prohibit combination or piggyback loans.
  In this compromise, the annual lender ongoing fee on 7(a) loans would 
increase from 0.25 percent to 0.36 percent. The lender would also pay a 
0.70 percent up-front fee for combination or piggyback loans. For loans 
under $150,000, the lender would no longer be allowed to retain the 
0.25 percent ongoing fee. Instead, this bill, under the provisions in 
it, the SBA will keep that fee.

[[Page H1748]]

  H.R. 4062 raises the 7(a) guaranteed limit from $1 million to $1.5 
million with an additional risk premium fee of 0.25 percent imposed on 
the borrower over and above the 3.5 percent fee they currently pay on 
loan amounts over $1 million.
  Finally, H.R. 4062 allows lenders the option to make loans up to $2 
million under the SBA Express program, which has a 50 percent guarantee 
rate; but banks can use their own paperwork. Currently lenders can only 
make loans up to $250,000 under the SBA Express program. I want to make 
it clear, however, that I intend that this provision must be truly 
optional on the part of the lenders. The SBA should not do anything in 
its internal policies or procedures that tilts this rule in favor of 
SBA Express at the expense of the rest of the 7(a) lending program.
  All together, these provisions will provide an additional $3 billion 
in lending to small businesses for the rest of fiscal year 2004 to 
reach a total of 7(a) program level of $12.55 billion without requiring 
any additional appropriations or reprogramming funds from other key 
areas within the SBA.
  When this bill is passed by Congress and signed into law, SBA assures 
me it will provide enough lending authority for the SBA to remove the 
current loan cap of $750,000 and also allow combination or piggyback 
loans.
  By increasing the 7(a) programs lending authority, SBA estimates that 
through their lending partners they will be able to offer 30,000 
additional guaranteed loans, which could create or retain as many as a 
half million jobs by the end of September.
  In addition to fixing the 7(a) program, the bill authorizes the SBA 
to charge fees under the 504 Certified Development Company program and 
the Small Business Investment Company program until the end of the 
fiscal year or September 30, 2004. Both these programs operate solely 
on the basis of user fees and do not require an annual appropriation. 
Currently, the authority to charge these fees expires on May 21.
  Finally, the general extension of SBA programs not covered by an 
appropriation such as the surety bond program, SBA's cosponsorship 
authority, and several very small procurement assistance programs, will 
move from the current deadline of April 2 to June 4 of 2004.
  This bipartisan bill has the support of both the minority and 
majority sides of the Committee on Small Business. It has the support 
of the administration. And finally, it represents the consensus 
position of those who use the 7(a) program, both borrowers and lenders.
  I urge my colleagues to support H.R. 4062.
  Mr. Speaker, I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may 
consume.
  (Ms. VELAZQUEZ asked and was given permission to revise and extend 
her remarks.)
  Ms. VELAZQUEZ. Mr. Speaker, first I would like to thank the chairman 
and the House leadership for their commitment and willingness to 
resolve this program in a bipartisan manner.
  In today's jobless recovery, small businesses are more important than 
ever. That is because small businesses are this country's main economic 
driver. They are this country's main job creator, and they are this 
country's number one employer. They are the backbone of the American 
economy.
  One big challenge for small businesses is access to capital. Studies 
have shown that too many entrepreneurs finance their great ideas with 
credit cards. And this puts them into debt even before they get their 
businesses off the ground.

                              {time}  1030

  That is exactly why the SBA loan programs are so critical. These 
programs fill a financing gap for small firms, making loans on great 
ideas that may not have been looked at twice or invested in it at all. 
In fact, last year, the SBA's 7(a) flagship loan program provided 
hundreds of thousands of small businesses with billions of dollars that 
was then pumped back into the U.S. economy.
  Yet, for all the good the 7(a) program has done, it recently fell on 
tough times. The program was shut down at the end of last year and was 
later reopened but with severe restrictions in place. Just after the 
program hit these bad times, so did the small business owners that were 
trying to secure loans. Suddenly, their plans to hire employees, expand 
their operations or purchase new equipment were put on hold; and, as a 
result, job creation was put on hold for the American economy overall.
  I am happy to say to all those small business owners out there who 
have suffered, we are going to make the 7(a) loan program whole again 
with the bill before us today. This program that has helped countless 
entrepreneurs turn their dreams of business ownership into reality is 
back, and hopefully it is here to stay.
  In H.R. 4062, we ask lenders to shoulder greater responsibility for 
the program, but we are also giving them a new tool by raising the 
guarantee rate from $1 million to $1.5 million. In doing this, lenders 
will be able to guarantee more loans, more money will flow into the 
American economy, and small firms will be able to create more jobs.
  This fix will support our small businesses that create good-paying 
jobs right here in the United States, unlike the large multinational 
corporations that move jobs overseas in search of cheap labor and lax 
environmental standards without even thinking twice.
  Our solution will especially help small manufacturers who have been 
hard hit, like Elliot Moses, a small businessman from Sandy, Utah, who 
was left on the edge of financial ruin when the 7(a) program was 
closed. Now he and thousands of other manufacturers can get the loans 
they need to stay competitive, strengthen their operations here in the 
U.S. and hire more American workers.
  With H.R. 4062, we pave the way to success for manufacturers and 
small businesses everywhere. With this bill, we make sure small 
businesses have access to capital. With this bill, we make sure small 
businesses can invest in their ventures, purchase new equipment, expand 
and create jobs. With this bill, we will be giving our economy the shot 
in the arm that it needs right now; and with this bill, we also give 
new hope to the 8.2 million unemployed Americans that something is 
being done to transform the current jobless environment into one of 
work and prosperity.
  If my colleagues support our Nation's economy, if they support job 
creation, then I urge my colleagues to support H.R. 4062.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MANZULLO. Mr. Speaker, I have no further speakers. I would ask 
the gentlewoman if she has any further speakers
  Ms. VELAZQUEZ. Mr. Speaker, I do not have any other speakers
  Mr. MANZULLO. Mr. Speaker, I yield back the balance of my time.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may 
consume.
  By passing this bill, we will show small businesses just how 
important they are to the U.S. economy. We will show them that we want 
to make it easier for them to invest capital back into the businesses 
where it belongs; and, Mr. Speaker, I would like to take a moment to 
thank all the staff who worked hard on this solution.
  I would like to thank from the administration, the staff, Jenny 
Mayne, Anthony Bedell and Charles Rowe. From the House leadership, I 
would like to thank KiKi Kless and Julie Sullivan. From the chairman's 
office, Barry Pineles, Matthew Szymanski and Phil Eskeland. From the 
Democratic Committee on Small Business staff, I would like to thank the 
staff director Michael Day, Adam Minehardt and Jordan Haas.
  Mr. Speaker, I yield as much time as she may consume to the 
gentlewoman from California (Ms. Millender-McDonald).
  Ms. MILLENDER-McDONALD. Mr. Speaker, I would like to thank the 
chairman and the ranking member for their leadership. They have fought 
long and hard to make sure that they heard the cry of small businesses.
  Small businesses have been crying throughout this country, saying 
that they needed the 7(a) loan programs so that they can do business; 
and we all recognize that small businesses are the engine that creates 
the jobs in this country. So to the gentleman from Illinois (Chairman 
Manzullo) and the gentlewoman from New York (Ranking

[[Page H1749]]

Member Velazquez), I thank them so much for bringing this to the floor 
and all of the staff members who have worked so hard.
  Mr. Speaker, this critical measure will help reopen the Small 
Business Administration's core lending vehicle which is the 7(a) loan 
program, and it will provide funding for the agency through June 4. 
While we grapple with the budget, we recognize that there are 
shortcomings in terms of it, but at least it will begin to address 
those applications that have come to us from those small businesses 
that critically need the financing through the 7(a) loan program.
  This bill also makes a number of important changes to the program, 
including lifting the $750,000 cap on loans and gets the program 
running at an adequate level. It removes the regulatory restriction, 
also known as the ``piggybacking,'' on SBA loans being part of larger 
financing packages.
  This bill also creates a new financing tool by increasing the size of 
the loan guarantee to $1.5 million, which provides more options for 
lenders providing these loans.
  Finally, Mr. Speaker, this bill extends the 504 loan program and the 
SBIC program through the end of this year.
  We cannot thank the ranking member and the chair enough for the hard 
work that they have done, because these are important loan programs for 
small businesses.
  As the ranking member on the Subcommittee on Tax, Finance, and 
Exports, I have long understood the critical role this program plays in 
keeping our Nation's economy vibrant and strong. These loans are the 
only source of affordable, long-term financing for many of our Nation's 
small businesses, and loans spur economic development in underserved 
areas.
  In addition, the 7(a) loan program can be used for long-term working 
capital, including accounts payable, just allowing small businesses to 
do business.
  Mr. Speaker, I urge all of my colleagues to pass this very important 
piece of legislation, H.R. 4062.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may 
consume.
  I urge the adoption of H.R. 4062 and call on the Senate to act 
quickly on this measure so that small businesses across the country can 
benefit.
  Mr. BACA. Mr. Speaker, I rise in support of American small businesses 
and the 7(a) loan program.
  President Bush has stood by while a record 2.9 million private sector 
jobs disappeared. The overall unemployment rate has stalled at 5.6 
percent. It would be even higher if it included 1.7 million Americans 
who are no longer searching for employment.
  As a former small business owner, I know the benefits they provide to 
our economy. Small businesses generate three-fourths of all new jobs. 
They represent 99 percent of all employers and create more than half of 
our GDP. If we want our economy to grow, we need to support small 
businesses.
  But that's not what the Administration has done. At every step they 
have cut programs and decreased funds. The Administration's FY2005 
budget devastates small businesses. 22 programs will be terminated and 
14 will see their budgets cut.
  The microloan program, which provides small businesses with loans of 
up to $35,000, will be terminated, while the Manufacturing Extension 
Program, which helps small manufacturers solve business problems, has 
been cut by $66 million over the last two years. The 7(a) loan program 
has been repeatedly cut and dismantled. They've done everything they 
could think of in order to kill it. They reorganized it. They closed it 
down. They capped the loans.
  If the 7(a) program is shut down or the amount of loans is capped, 
then small businesses will suffer. They will not have access to 
affordable capital. And they will be forced to lay off workers and shut 
their doors. It is so important for small business to have affordable 
access to capital. That is why I commend the Democrats on the Small 
Business Committee for working so hard to save the 7(a) loan program.
  But the Administration still doesn't get it. They continually cut the 
programs and the funds that support our small businesses. To stop our 
Nation's march towards a jobless recovery, our small businesses must be 
taken care of. Unless the Administration recognizes the problems that 
face American small businesses, the unemployment rate will rise and our 
economy will not recover.
  Mr. SHUSTER. Mr. Speaker, I rise today in strong support of H.R. 
4062, which would temporarily extend the Small Business 
Administration's 7(a) loan program. One of the SBA's most successful 
initiatives, the 7(A) loan program provides loan guarantees to small 
businesses. These small businesses are able to use this financial 
assistance to start up new enterprises. In January 2004, due to lack of 
funding, the SBA was forced to temporarily suspend the 7(a) loan 
program, thus cutting off a major funding resource for thousands of 
potential new small businesses. While the SBA was able to have the 
program up and running again in a relatively short time, it was still 
forced to scale back on the size and scope of the 7(a) program.
  I am pleased that the legislation before us today not only extends 
the 7(a) program, but also restores the robust nature of the program by 
reinstating the maximum loan amount to $2 million. Additionally, H.R. 
4026 would allow for piggyback loans, allowing businesses to seek out 
additional financial assistance to help grow their business. Equally 
important for our Nation's lenders, H.R. 4062, would increase the loan 
guarantee to $1.5 million. Lastly, Mr. Speaker, plans put forth this 
morning will create at least $12.5 billion in lending authority for the 
SBA in Fiscal Year 2004 and will allow for SBA to add an additional 
30,000 loans which in turn could create thousands of new jobs.
  In conclusion, I want to extend my thanks to our Chairman Don 
Manzullo and Ranking Member Nydia Velazquez for their hard work and 
leadership on this issue. Today's action will allow the SBA to continue 
providing financial assistance to our Nation's small businesses and 
keep our economy growing. I urge my colleagues to support this measure.
  Ms. BORDALLO. Mr. Speaker, I rise today in strong support of H.R. 
4062, which will temporarily resolve the funding shortage for the Small 
Business Administration's 7(a) Loan Guarantee Program and ease the 
resulting financial burden that has been placed on small businesses. 
H.R. 4062 is the product of bi-partisan collaboration, and I commend 
Chairman Manzullo and Ranking Member Velazquez for working together to 
create a sound public policy response to this crisis for small 
businesses. I also thank the House Leadership on both sides of the 
aisle for responding promptly and positively.
  The 7(a) Loan Guarantee Program is the Small Business 
Administration's flagship financing program, which accounts for 30 
percent of all small business long-term loans in this country.
  On February 11th of this year, the Small Business Committee held a 
hearing on the Administration's proposed Fiscal Year 2005 Budget for 
the Small Business Administration. At that hearing, small business 
owners from a diverse array of geographical areas and engaged in a 
variety of different industries testified that the financial crisis at 
the SBA 7(a) Loan Guarantee Program caused them undue hardship. Most 
indicated that the failure to access 7(a) Loans on more reasonable 
terms would preclude their respective companies from gaining access to 
the capital necessary to ensure survival. In the case of one small 
business owner who testified about his company's proposed project, the 
mayor of the city in which the company's site would be built 
accompanied him to Washington. The mayor spelled out exactly what was 
at stake for his economically distressed community; the opportunity to 
revive the local economy and provide new jobs, or the prospect of 
further decay and desperation.
  H.R. 4062 lifts temporary caps on 7(a) loans that were instituted in 
order to respond to its financial crisis. It will again allow for 7(a) 
loans to be included in larger financial packages, and provide working 
capital for export activities of small businesses. This is a step in 
the right direction, and I hope that Congress will follow the model of 
H.R. 4062 in addressing the long-term health of a 7(a) program that is 
so important to small businesses, which are incubators of economic and 
job growth in our communities.
  I urge my colleagues to support H.R. 4062.
  Ms. WOOLSEY. Mr. Speaker, I rise today in support of H.R. 4062, and I 
am pleased that this legislation reopens the 7(a) loan program and 
ensures that small businesses will once again be able to benefit from 
its lending power.
  As a former small business owner, I understand the frustrations and 
worries small business owners have had as this program has sat in 
limbo. Small businesses are one of our Nation's leading employment 
opportunities, but few businesses can afford to start up of expand 
without the help of loans.
  Renewing our commitment to the Small Business Administration 7(a) 
loan program will not only bolster our Nation's workforce but also the 
economy as a whole.
  Mr. Speaker, I want to urge all my colleagues to join me in 
supporting this vital piece of legislation.
  Mr. PRICE of North Carolina. Mr. Speaker, I would like to 
congratulate my colleagues on the Small Business Committee for their 
bipartisan effort, which allowed this bill to be voted

[[Page H1750]]

on just in the nick of time. I would like to especially congratulate 
Congresswoman Velazquez, who has worked tirelessly to bring about this 
victory for small business.
  H.R. 4062 restores the 7(a) program to its former strength by lifting 
the caps on 7(a) loans. It also takes the important step of removing 
regulatory limitations that had prevented SBA loans from being a part 
of larger financing packages.
  7(a) loans account for nearly 30 percent of all long-term loans for 
small businesses in America, businesses that are the number one job 
creators in this country. So it is essential that we get this program 
back up and running again. This bill would do that, and it would also 
extend the important 504 loan program and SBIC programs through the end 
of this year.
  The next step is to make sure that these authorized programs in SBA 
are fully funded. The President's budget provided zero funding for 7(a) 
and a number of other important SBA programs. Furthermore, it is 
important that we put safeguards in place to prevent last-minute 
shutdowns like those we experienced this past January.
  I am working with my colleagues to restore 7(a) funds and to ensure 
that in the future there are not caps or program shutdowns that deny 
small businesses access to critically needed resources.
  This is the vital next step to the authorization we are passing 
today, and I urge my colleagues to make certain that we provide the 
resources to make good on the commitment this bill makes to small 
businesses.
  Ms. VELAZQUEZ. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. LaHood). 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. 4062.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

                          ____________________