[Congressional Record Volume 151, Number 79 (Wednesday, June 15, 2005)]
[Extensions of Remarks]
[Pages E1242-E1243]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          IN SUPPORT OF MAIN STREET AMERICAN SMALL BUSINESSES

                                 ______
                                 

                             HON. SAM FARR

                             of california

                    in the house of representatives

                        Wednesday, June 15, 2005

  Mr. FARR. Mr. Speaker, I rise in strong support of robust funding for 
two important Small Business Administration programs: the 7(a) Lending 
Program and the Microloan program.
  Small business owners take huge risks to try to realize their dreams 
of owning their own business which fuel U.S. economic growth. If

[[Page E1243]]

we want a strong economy and a business environment that encourages 
this entrepreneurial spirit, the federal government needs to give small 
business the economic tools to be successful. That tool is the 7(a) 
program that was created to provide capital to small business owners 
unable to access traditional financing. Through this program, more 
capital has been made available for small business investment that has 
helped grow the economy. Companies who participate in the 7(a) program 
account for approximately 75 percent of the net new jobs added to the 
economy! Funding the 7(a) program at $79 million is an investment in 
Main Street, USA.
  The Microloan Program is another excellent SBA program that creates 
jobs on Main Street. This program provides loans to low- and moderate-
income entrepreneurs that are not served by private sector banks or the 
7(a) loan program. One example of the benefits of the SBA Microloan 
program is the California Coastal Rural Development Corporation (Cal 
Coastal) in my district, which has made microloans totaling $2,775,000 
since 1998. With the loan and technical assistance financing provided 
by the SBA Microloan Program, Cal Coastal has financed more than 153 
businesses with an average loan of $18,000. Cal Coastal is just one 
example of the excellent work being done by non-profit intermediaries 
throughout our state and across the country. Fully funding the SBA 
Microloan program is a smart business investment for Main Street.

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