[Congressional Record Volume 150, Number 109 (Tuesday, September 14, 2004)]
[Senate]
[Pages S9239-S9240]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
EXTENSION OF SMALL BUSINESS ADMINISTRATION PROGRAMS
Mr. FRIST. Mr. President, I ask unanimous consent that the Senate now
proceed to the consideration of H.R. 5008, which is at the desk.
The PRESIDING OFFICER. The clerk will report the bill by title.
The legislative clerk read as follows:
A bill (H.R. 5008) to provide an additional temporary
extension of programs under the Small Business Act, and the
Small Business Investment Act of 1958 through September 30,
2004, and for other purposes.
There being no objection, the Senate proceeded to consider the bill.
Ms. SNOWE. Mr. President, I rise today to address H.R. 5008, a bill
to provide a temporary extension of programs under the Small Business
Act and the Small Business Investment Act of 1958, and to enhance the
operations of the Small Business Administration.
The bill before us would extend until September 30, 2004, SBA
programs that have expired. In addition, it would provide clarification
as to the SBA's method of reimbursing its Fiscal and Transfer Agent,
which assists in the operation of the SBA's vital loan programs.
In July 2004 I introduced S. 2700, a bill that extended these same
SBA programs and also provided this clarification regarding the Fiscal
and Transfer Agent. The Senate unanimously approved S. 2700 on July 20,
but unfortunately the other body failed to pass that bill, leaving many
critical small business assistance programs unauthorized. Today, we
have another opportunity to renew these programs and to provide this
legislative improvement, and we should not miss the chance.
Since 1953, nearly 20 million small business owners have received
direct or indirect help from one of the SBA's lending or technical
assistance programs, making the agency one of the Government's most
cost-effective instruments for economic development. The SBA's current
loan portfolio of more than 175,000 loans, worth more than $45 billion,
makes it the largest single supporter of small businesses in the
country.
According to the SBA, the $65.5 billion awarded to small businesses
in Federal prime and subcontracts in FY 2003 allowed small businesses
to create or retain close to 500,000 jobs. Over the last five years the
SBA's programs and services have helped create and retain over 6.2
million jobs.
The Senate agreed unanimously in September 2003 to pass a bill I
introduced, the Small Business Administration 50th Anniversary
Reauthorization Act of 2003, to authorize the entire SBA for a three-
year period. However, we have been unable to reauthorize the SBA
because the other body has been stalled in its consideration of SBA
authorization legislation. According to the SBA, reauthorizing the
agency will result in an estimated 3.3 million jobs created or retained
over the next 5 years, with the SBA and its programs predicted to
support over 1 million additional jobs over that same period through
prime contracts and subcontracts.
In the absence of a full reauthorization of the Agency, which I am
still working to bring about, it is vital that we extend those programs
that can provide current assistance to small businesses. The bill
before us, H.R. 5008, would renew the authorization for several SBA
programs, including the Preferred Surety Bond Program. This program
provides an essential service to small businesses by guaranteeing
surety bonds for small business contracts, thereby permitting small
businesses to undertake thousands of projects which would otherwise be
out of reach.
H.R. 5008 would also specify the manner in which the SBA may
compensate its Fiscal and Transfer Agent. This agent administers
payments and fee collection in the SBA's loan programs and in the
secondary market for those loans. This legislative change, requested by
the administration in its budget submission to Congress for Fiscal Year
2005, would provide guidance as to the SBA's method of compensating its
agent.
Additionally, this legislation will preserve the operations of
existing Women's Business Center that currently serve women
entrepreneurs in almost every State and territory. Today, more than
10.6 million women-owned small businesses are helping to fuel our
economic recovery: they employ over 19 million Americans and contribute
$2.46 trillion in revenues. In my home State of Maine, there are more
than 63,000 women-owned firms, generating more than $9 billion in
sales. Numbers like these speak for themselves, and are clear evidence
of the success of the Women's Business Centers Program.
Moreover, according to research, between 2001 and 2003, women's
business center clients reported starting over 6,600 new firms and
creating more than 12,000 new jobs.
Mr. President, without this legislation, many of the Centers may be
in jeopardy of closing their doors. This would be a significant loss,
given that some of these Centers have proven to be powerful engines of
economic development in communities across the Nation.
As we work toward the larger goal of a full reauthorization of the
SBA, I urge my colleagues to support the enactment of H.R. 5008. This
legislation would allow essential SBA programs to continue to assist
small businesses during the remainder of this Fiscal Year.
(At the request of Mr. Daschle, the following statement was ordered
to be printed in the Record.)
Mr. KERRY. Mr. President, today I join Chair Snowe in
supporting legislation to keep the Small Business Administration and
its financing and counseling assistance available to small businesses.
This bill temporarily authorizes the SBA and most of its programs
through September 30, 2004. In addition to the temporary extension,
this bill includes a provision necessary to bring the administration
into compliance with a January 2003 recommendation by the SBA's
Inspector General. This change will save the SBA hundreds of thousands
of dollars by allowing the agency's fiscal and transfer agent for the
7(a) loan program's secondary market program to keep the interest
earned on fees lenders pay before they are remitted to the Government.
Currently, the SBA does not have that authority. The committee wants
the program to continue running smoothly and successfully, and we think
this change should accomplish this.
Six SBA programs were halted after S. 2700, a similar bill sponsored
by Senate Small Business and Entrepreneurship Committee Chair Olympia
Snowe and myself, passed the Senate on July 20 but did not pass the
House prior to the August recess. The six programs reinstated by H.R.
5008 are: the Women's Business Center Sustainability program, the Small
Disadvantaged Business, SDB, program, the Preferred Surety Bond, PSB,
Guarantee program, the Small Business Development Center, SBDC, Drug-
Free Workplace Assistance Grants program, the Very Small Business
Concerns program, and the SBA's co-sponsorship authority.
With passage of this bill, the committee expects the SBA to move
forward on grants for all its programs and certification for minority
businesses, and any other activities it has been delaying.
And while I am pleased that this bill will extend all of SBA's
programs and pilot programs, I am disappointed that the dire and urgent
needs of the women's business center program have yet to be fully
addressed. Given the abysmal job creation record of this
administration, we must aggressively seek and support innovative ways
to create jobs, and the women's business center program has a proven
track record of doing just that. Last year alone, the women's business
center network helped over 100,000 female entrepreneurs grow their
businesses, employ more people, and expand economic opportunity.
A study recently released by the National Women's Business Council
shows that over the past 2 years, while funding for the women's
business center program has remained essentially flat, the number of
clients served increased by 91 percent and the number of new businesses
started went up 376 percent.
[[Page S9240]]
The study also found that the businesses counseled by women's business
centers had an economic impact of $500 million in gross receipts, $51.4
million in profit, and created 12,719 new jobs. With these numbers, it
is clear that the women's business center program is a wise investment
that will continue to pay dividends to women in business, the
Government and our national economy well into the future.
As many of my colleagues know, there are currently 87 women's
business centers. Of these, 35 are in the initial grant program and 53
have graduated to the sustainability part of the program. These
sustainability centers make up more than half of the total women's
business centers, but under the current funding formula are only
allotted 30 percent of the funds. Without changing the portion reserved
for sustainability centers to 48 percent, as the Senate-passed Snowe-
Kerry bill, S. 2267, directs, all grants to sustainability centers
could be cut in half, or worse, more than 20 experienced centers could
lose funding completely.
I believe it is very important to pass H.R. 5008 and extend the pilot
so that our most experienced centers can continue their good work for
women-owned businesses; however, the current funding formula for the
Women's Business Center still needs to be updated. As the author of the
bill to establish the sustainability program, I am hopeful that my
colleagues in Congress will soon come together to fix this problem and
secure the women's business center network once and for all.
I thank my colleagues for their support of small businesses and for
considering immediate passage of this important small business
bill.
Mr. FRIST. Mr. President, I ask unanimous consent that the bill be
read the third time and passed, the motion to reconsider be laid upon
the table, and that any statements relating to the bill be printed in
the Record.
The PRESIDING OFFICER. Without objection, it is so ordered.
The bill (H.R. 5008) was passed.
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