[Congressional Record Volume 150, Number 99 (Friday, July 16, 2004)]
[Extensions of Remarks]
[Page E1401]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




DEPARTMENTS OF COMMERCE, JUSTICE, AND STATE, THE JUDICIARY, AND RELATED 
                   AGENCIES APPROPRIATIONS ACT, 2005

                                 ______
                                 

                               speech of

                         HON. KENNY C. HULSHOF

                              of missouri

                    in the house of representatives

                        Wednesday, July 7, 2004

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (H.R. 4754) making 
     appropriations for the Departments of Commerce, Justice, and 
     State, the Judiciary, and related agencies for the fiscal 
     year ending September 30, 2005, and for other purposes:

  Mr. HULSHOF. Mr. Chairman, This great country of ours was built on 
the, backs of willing and abled entrepreneurs who, with a little faith 
and help, started their own businesses in hopes of achieving the 
American dream of prosperity and success. It is this desire to own a 
business that is the backbone of our economy. With small businesses 
representing more than 99 percent of all employers and creating roughly 
75 percent of the net new jobs, it is quite clear to see their 
importance in the economy.
  As such, I rise today in support of the amendment offered by the 
gentleman from Illinois to maintain level funding for the 7(a) loan 
program. One of the most successful tools in the Small Business 
Administration's arsenal, the 7(a) loan program helps qualified 
businesses acquire financing when they may otherwise be prevented from 
obtaining a loan through the normal financial channels.
  During the 2002-2003 fiscal years, the 9th district of Missouri, 
which I have the distinct honor of representing, received $37 million 
in 7(a) loans. This translates into the creation and/or retention of 
more than 1,100 jobs in the small business community. For rural 
districts, like mine, this incentive is essential.
  One example of this is Moresource, Inc. located in Columbia, MO, 
which is in my district and where I currently live with my family. In 
1994, Kat Cunningham had an idea to create a business that would focus 
solely on the management of employee administrative matters, such as 
payroll, tax compliance, health benefits and other human resources 
issues. Her thought was that by handling these cumbersome and time 
consuming tasks, small businesses can focus on increasing productivity 
and their core business objective.
  With the aid of a sizeable Small Business Administration 7(a) loan, 
Kat turned this concept into a reality and created Moresource, Inc. 10 
years later, the company has grown from 5 internal employees and 200 
leased employees to 7 internal and more than 1,500 leased employees. 
Kat will tell you that without the assistance of a 7(a) loan, it is 
questionable whether Moresource would have had the opportunity to get 
off the ground.

  Stephanie Perkins also credits the 7(a) loan program with making her 
dreams come true. Because of challenges Stephanie faced in obtaining a 
loan through traditional lenders, the 7(a) loan program provided her 
with the capital she needed to start up her own business. Stephanie 
opened the doors to Brown Station Early Learning Center in the fall of 
2000 with help from the 7(a) loan program. Since that time, she has 
almost doubled the employees in her daycare center, which provides 
Columbia working parents with the peace of mind of knowing that their 
children are in safe and caring hands.
  These are just two examples of how critical the 7(a) loan program is 
to Missouri businesses. It also illustrates the hand-up it can provide 
to support and encourage women who are willing to take risks and start 
a business venture. In the state of Missouri, we have an estimated, 
according to the Center for Women's Business Research, 129,865 
privately held companies in which women hold the majority of ownership, 
accounting for 30.8 percent of all privately held firms in the state. 
The success of these outstanding women has contributed to the 
employment of 241,992 Missourians and generated $26 billion in sales.
  The 7(a) loan program is crucial to developing and sustaining small 
businesses in America. It is also small business entrepreneurs that we 
have to thank for the 1.5 million jobs that have been created in the 
past 10 months. Furthermore, these enterprising and hard-working 
individuals have brought us an unemployment rate that is lower than the 
decade averages of the 1970s, 1980s and 1990s. For these and many other 
reasons, I urge all my colleagues to support small business and 
economic growth with a vote for the Manzullo amendment.

                          ____________________