[Congressional Record Volume 153, Number 67 (Wednesday, April 25, 2007)]
[House]
[Pages H4108-H4119]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SMALL BUSINESS LENDING IMPROVEMENTS ACT OF 2007
The SPEAKER pro tempore. Pursuant to House Resolution 330 and rule
XVIII, the Chair declares the House in the Committee of the Whole House
on the state of the Union for the consideration of the bill, H.R. 1332.
{time} 1635
In the Committee of the Whole
Accordingly, the House resolved itself into the Committee of the
Whole House on the state of the Union for the consideration of the bill
(H.R. 1332) to improve the access to capital programs of the Small
Business Administration, and for other purposes, with Mr. Pastor in the
chair.
The Clerk read the title of the bill.
The CHAIRMAN. Pursuant to the rule, the bill is considered read the
first time.
The gentlewoman from New York (Ms. Velazquez) and the gentleman from
Ohio (Mr. Chabot) each will control 30 minutes.
The Chair recognizes the gentlewoman from New York.
Ms. VELAZQUEZ. Mr. Chairman, I yield myself as much time as I may
consume.
Small businesses are this country's economic drivers, yet they
continually face challenges that make it hard for them to succeed in
today's marketplace. Entrepreneurs are already dealing with rising
energy and health care costs as well as the increasing regulatory
burden. The last thing they need is for accessing affordable capital to
be another barrier in the way of their success.
What we continue to see is a steady increase in costs and a decrease
in access for the very programs that are intended to help
entrepreneurs. Over the
[[Page H4109]]
past 2 years, for the 7(a) program alone, costs have doubled for
smaller loans, and the average loan size has declined by 37 percent.
A recent study released by the National Small Business Association
found that access to capital is the number two concern for
entrepreneurs. This means that it is more of a concern than taxes and
even the regulatory burden.
The Small Business Lending Improvements Act of 2007 is a bipartisan
effort introduced by Ms. Bean and Mr. Chabot. This bill will make loans
more economical, while providing long-term stability for small business
owners.
H.R. 1332 touches all aspects of the SBA lending initiative,
including the 504 program.
Not only will this legislation put affordable financing back into the
hands of entrepreneurs, but will also accomplish a number of important
public policy initiatives. H.R. 1332 provides incentives for medical
professionals to locate in low income areas, establishes a rural lender
program, and allows for veterans to secure funds to start or expand
their firms.
With the number of veterans returning from Iraq and Afghanistan, the
need for affordable financing is more important than ever. When
Congress passed the GI bill, we made a commitment to education and
homeownership for veterans. Today we have an opportunity to show our
commitment to their entrepreneurial endeavors.
Small businesses must have the ability to continue spurring economic
growth and creating jobs. For these reasons, H.R. 1332 has the support
of American Community Bankers, Independent Community Bankers of
America, American Veterans, Credit Union National Association, National
Small Business Association, Veterans of Foreign Wars, American Bankers
Association, the U.S. Women's Chamber of Commerce, the U.S. Hispanic
Chamber of Commerce and the American Dental Association.
I strongly urge my colleagues to vote for the Small Business Lending
Improvements Act of 2007.
Mr. Chairman, I reserve the balance of my time.
Mr. CHABOT. Mr. Chairman, I yield myself such time as I might
consume.
Mr. Chairman, today, Madam Chairwoman and I rise to support H.R.
1332, the Small Business Lending Improvements Act of 2007. I want to
especially thank the chairwoman and the gentlelady, Congresswoman Bean,
for working in a cooperative and bipartisan manner to bring this bill
before the House, and I want to commend them for again working with us
on this.
The Small Business Lending Improvements Act amends the Small Business
Act to make necessary improvements and technical changes to the primary
lending program offered by the Small Business Administration, the SBA,
the 7(a) guaranteed loan program. H.R. 1332 also amends title V of the
Small Business Investment Act of 1958 to make significant and necessary
changes to the loan program, sometimes called the 504 loan program.
Before addressing the particulars of the legislation, it is important
to note what H.R. 1332 does not do. The legislation does not modify the
subsidy rate for the 7(a) guaranteed lending program. The subsidy rate
for the program currently is zero. After this bill is enacted, the
subsidy rate for the 7(a) lending program will be zero. In fact, if
this bill attempted to modify the subsidy rate, it could not because it
would require an appropriation. And of course, as an authorizing
committee, we are unable to appropriate. So any argument that this bill
will cost hundreds of millions or even billions of dollars over 10
years or so is just plain wrong.
At the correct time, I will oppose adding a subsidy for a program
that works just fine without one.
And now, I turn my attention to what this bill does. The SBA charges
a fee to borrowers which can be viewed as akin to paying points on a
mortgage, which many people are familiar with doing. In addition, banks
pay an ongoing fee each year on the amount of unpaid balance of the
loan as guaranteed. Although some confusion exists about this point, I
read the Small Business Act as authorizing the SBA to adjust the up
front fee or points paid by borrowers in the same way that the SBA has
the unquestioned authority to reduce fees to lenders. Despite the
authority that the SBA has, the agency has not in recent memory
reduced, except when dictated by Congress, the up front fees paid by
borrowers. The SBA, on the other hand, has modified the annual fee paid
by the lender. The SBA even testified at a committee hearing recently
that it would be reducing the fees paid by lenders.
Section 101 does two very important things. First, it clarifies that
the SBA has the authority to reduce or increase the fees paid by the
borrower. This should resolve any confusion as to whether the SBA has
the power to reduce the points or up front borrowing fee, as well as
the annual fee paid by the lender. And as already noted, section 101
requires that these fees be calculated to arrive at a zero subsidy.
That is so that the fees will cover the cost of the 7(a) loan program,
without an appropriation, as I just mentioned. The section then goes on
to restrict the administrator's discretion in only one regard; if an
appropriation is made to support the 7(a) loan program, section 101
directs the administrator to first utilize the funds to reduce fees to
borrowers and not lenders.
I support this change because the Small Business Act is, first and
foremost, legislation designed to assist small businesses, not to
assist small banks or any other banks. Therefore, the bill takes the
logical step of directing that, should funds be made available, the
administrator should reduce the fees to small businesses, not to banks.
Section 101 also requires that the administrator update quarterly the
reduction in fees given available funding remaining. That makes sense,
because if the SBA did not make that calculation, they would not know
how much to reduce fees in an upcoming quarter, if at all. The need for
this calculation simply recognizes that loan demand is not constant
throughout the year and ensures that administrator properly allocates
available funds. Once funds are exhausted, the legislation simply
directs the administrator to operate the program at zero subsidy, the
up front annual fees needed to cover the cost of the 7(a) loan program
as if there was no appropriation.
Finally, to the extent that loan demand is not high, and there are
sufficient funds available, the administrator may use any available
extra funds to reduce the annual fee paid by banks. Although this is a
possibility, the greater probability is that all funds will be utilized
to reduce cost to small business owners.
There is more to H.R. 1332 than providing the administrator with a
mechanism to reduce fees under the 7(a) loan program, if an
appropriation is available. The guaranteed loan program is the largest
of the SBA's financing programs, reaching the greatest number of
businesses, yet there are businesses whose access to this program
remains limited.
The SBA loan program is a fairly complex operation, and many banks,
particularly community banks, do not have a sufficient loan volume to
justify the expenses associated with a 7(a) loan program. This is
particularly true for independent and community banks located in rural
areas.
The bill requires the SBA to establish a low-document, or LowDoc,
loan program for banks located in rural areas. To the extent that a
rural community has no bank willing to participate in the program,
there is nothing in the Small Business Act or the bill that prohibits a
small business from using a rural lender not in the immediate vicinity.
Title I also makes the Community Express Loan Program permanent. I
support this because I believe it can provide the same assistance to
low income communities, including those in my district in Cincinnati,
which would otherwise be provided under a more costly micro loan
program.
In addition to providing greater assistance in rural communities and
low income communities, the bill also reduces the cost of the 7(a)
loans to veterans. In addition, the bill also provides for a reduction
in fees to medical practitioners seeking to establish or expand
practices in areas deficient of such practitioners. These are noble
goals and deserve the support of all Members of the House.
Although title I is a significant achievement, I am particularly
pleased
[[Page H4110]]
with title II of this bill. It modifies and strengthens the loan
program operator pursuant to title V of the Small Business Investment
Act of 1958.
Certified development companies, or CDCs, are vital to long-term
economic and community development in many districts, including mine,
around the country. CDCs operate to provide long-term, fixed rate
financing for small business concerns who find their financing needs
cannot be met due to the loan limits of the 7(a) loan program.
{time} 1645
And unlike many 7(a) lenders, CDCs must be locally based so they have
a keen understanding of the needs of the communities they serve.
The first thing that title II does is change the name of the program.
While this may sound minor, it is actually important. Colloquially, the
program is known as the ``504 loan'' program for section 504 of title V
of the Small Business Investment Act. This section authorizes the
administrator to sell the loans made by the CDCs in a secondary market.
It is not at all descriptive of the program or the entities involved in
the program. By accurately describing the program, it will provide
greater recognition to CDCs and enable them to better promote their
important mission.
Section 202 makes important technical changes to the definitions in
the CDC program, including, most importantly, defining the term
``certified development company.'' As a corollary, title II eliminates
the outdated term ``qualified State and local development company''
from the Small Business Investment Act of 1958.
In my estimation section 203 is the most important provision in the
bill. It statutorily establishes the procedures by which the SBA
designates entities as CDCs. The most important requirement of these
statutory procedures is the mandate that the CDC have local board
members familiar with the economic development needs of their
communities. Even though the bill authorizes expansion only into
neighboring States, the CDC must have representatives that understand
the local economic development needs of the new State of operation.
Another very important aspect of the bill authorizes CDCs to perform
their own liquidations. Data that I have seen shows that current loan
liquidation returns are about 20 cents on the dollar. Think of that.
Only 20 cents on the dollar liquidation rate. That is very inadequate.
By having CDCs with their local expertise perform liquidations, the
government should get a better return when a loan goes bad, and that
should save the taxpayers money.
Title II also makes other changes that will benefit greater financial
opportunities to small businesses under the CDC program. Together all
these changes made will ensure a robust CDC program that will spur
economic development.
For these reasons I ask my colleagues to support passage of this
important bill.
Mr. Chairman, I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Chairman, I yield such time as she may consume to
the gentlewoman from Illinois (Ms. Bean), who is a member of the Small
Business Committee and sponsor of the legislation.
(Ms. BEAN asked and was given permission to revise and extend her
remarks.)
Ms. BEAN. Mr. Chairman, the Small Business Lending Improvements Act
of 2007, which I introduced earlier this year, was recently reported
out of the Committee on Small Business, without objection, and I am
pleased that it is being given consideration on the House floor today.
I would like to begin by thanking Chairwoman Velazquez and Ranking
Member Chabot for cosponsoring this legislation and for their
leadership in moving this bill forward. The expedited consideration of
this bill, as well as the bipartisan support it has received,
underscores the importance of ensuring access to capital to our small
business community.
I am also very appreciative of the expert assistance provided by the
House Small Business Committee staff, especially Michael Day, whose
work on this issue has been invaluable.
Having been a small business owner myself, I can appreciate the
challenges that entrepreneurs and small business owners face in gaining
access to the capital that they need to grow. That is why I have long
been active in my support of measures to improve and expand the SBA
loan programs, which offer low-interest, long-term loans, not
subsidies, to business owners seeking affordable options.
This bill is no exception. H.R. 1332 makes much-needed changes to
SBA's lending initiatives and, most importantly, helps to preserve the
original intent of these programs, to help make available affordable
sources of financing. This is of particular importance as the cost of
capital through these programs has risen rapidly over the last few
years, stifling plans for both new businesses and those ready for plant
and equipment expansion. This bill helps to reverse this discouraging
trend by supporting our entrepreneurs and not stifling their visions
for growth.
In addition, H.R. 1332 addresses the need for lending in our rural
communities by restoring the LowDoc program and by strengthening the
504 initiative, which is integral in stimulating economic growth in
rural America.
Together, these initiatives will streamline and reduce the fees for
SBA's lending programs, making it easier for small lenders to
participate. Local economies throughout the country will benefit from
new jobs and economic development that will occur in their communities
as a result.
Again, I commend the work of the Small Business Committee, under the
leadership of Chairwoman Velazquez, for recognizing the need for this
legislation and prioritizing it relative to other committee work. Small
businesses are the backbone of our Nation's economic stimulus, driving
80 percent of domestic job growth, and their success is dependent upon
their ability to grow and to expand. This legislation helps provide
them with the fundamental tools they need to do so.
I urge your support of this bill.
Mr. CHABOT. Mr. Chairman, I would like to yield such time as she may
consume to the gentlewoman from Oklahoma (Ms. Fallin) for the purpose
of entering into a colloquy with the gentlewoman from New York.
Ms. FALLIN. Mr. Chairman, I thank the ranking member for yielding.
I would now like to yield to the gentlelady from New York for the
purposes of entering into a colloquy.
Ms. VELAZQUEZ. Mr. Chairman, I thank the gentlelady for yielding.
I know that the gentlelady has worked tirelessly to ensure that
certain independently owned and operated franchises are afforded access
to the SBA's 7(a) loan program. You have my assurance that I will work
to address this concern as the bill moves forward.
Ms. FALLIN. Thank you.
Mr. Chairman, reclaiming my time, it is my goal to address the issue
of certain franchisees, who by all intents and purposes are small
businesses, not being allowed to receive 7(a) loans due to their
affiliation with larger franchisors.
I believe the Small Business Lending Improvements Act should
eventually contain language to modify the SBA's affiliation standard to
allow that a business, if it is affiliated with another business and
therefore determined to be something other than small, to still be
eligible for a loan if it has no financial recourse to its affiliates
for repayment of any of its debt.
These businesses operate financially independent of their franchisor
and therefore operate like all other small businesses, and I believe
they should be offered the same opportunity to receive the 7(a) loans
as any other small business.
I ask that the gentlelady work with me to address this issue in the
underlying legislation.
Ms. VELAZQUEZ. Mr. Chairman, again I thank the gentlewoman for
raising this important issue. I agree that this is an issue that we
need to address, and I will make a commitment to work with you and your
staff as this legislation heads to conference.
Ms. FALLIN. Mr. Chairman, I thank the chairwoman and ranking member
for their work on this issue.
Mr. CHABOT. Mr. Chairman, I want to commend the gentlewoman from
Oklahoma for her work on this issue. I know she has worked very hard to
make this happen. So I want to commend her for that.
[[Page H4111]]
Mr. Chairman, I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Chairman, I yield 2 minutes to the gentleman from
Texas (Mr. Gonzalez), a member of the Small Business Committee.
Mr. GONZALEZ. Mr. Chairman, I thank my colleague for yielding.
Mr. Chairman, I rise today to express my strong support for H.R.
1332, the Small Business Lending Improvements Act of 2007.
I want to express my special thanks to the chairwoman of the Small
Business Committee, Nydia Velazquez, as well as Ranking Member Steve
Chabot, for their leadership in bringing this important bill which has
strong bipartisan support to the floor today. I am honored to work with
these fine leaders as we strive to support the small business community
of this Nation.
The Small Business Lending Improvements Act of 2007 will boost our
economic might by expanding entrepreneurs' access to capital through
the Small Business Administration's 7(a) and 504 programs. The 7(a) and
504 programs are the SBA's largest in terms of number of loans made and
amount of funds made available to small businesses. In fact, over the
last decade, the SBA has approved more than 424,000 loans for over $90
billion. Furthermore, the programs operate as public-private
partnerships to provide important financing for small firms through
private sector lenders, greatly limiting costs to the United States
Government.
Despite the positive impact of these programs, they must now be
modernized and strengthened in order to continue to meet their goals.
The Small Business Lending Improvements Act of 2007 provides much-
needed changes to these programs. Provisions of this bill will give the
SBA the authority to contribute funds for the purpose of reducing the
burden associated with borrower and lender fees on 7(a) loans. It will
also make it easier for rural lenders to assist local small businesses.
It will increase access to capital for socially and economically
disadvantaged small businesses. It will improve access to the program
for medical professionals in health professional shortage areas. And,
finally, it will expand opportunities for veterans to obtain such
loans.
I think all of us in this Chamber often enough go back to our
districts, and all small businesses will tell us that the greatest
challenge is the lack of access to capital. This is a first step in
addressing that very important challenge.
Mr. CHABOT. Mr. Chairman, I have no further requests for time, and I
will continue to reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Chairman, I yield 2 minutes to the gentleman from
North Carolina (Mr. Shuler), a member of the Small Business Committee.
Mr. SHULER. Mr. Chairman, I thank the gentlewoman for yielding.
Mr. Chairman, I rise today in support of H.R. 1332, the Small
Business Lending Improvements Act of 2007.
As an entrepreneur, I understand the difficulties that small business
owners face on a daily basis. I also know that small businesses are the
backbone of our economy, both nationally and in western North Carolina.
Small businesses account for over half of all of our jobs in the U.S.
and are responsible for 60 to 80 percent of all of our new jobs. For
our small businesses to continue to grow and prosper, we must help them
gain access to capital.
The bill will grant American entrepreneurs that access to capital by
updating and streamlining SBA's 7(a) and 504 loan programs.
Additionally, this bill will eliminate loan fees for veterans returning
from Iraq and Afghanistan.
As a member of the Small Business Committee, I urge all Members to
support this important legislation.
Mr. CHABOT. Mr. Chairman, I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Chairman, I yield 2 minutes to the gentleman from
Illinois (Mr. Rush).
Mr. RUSH. Mr. Chairman, I want to thank the gentlewoman for yielding.
I also want to commend her for her outstanding leadership on this issue
and other important issues that face this Congress.
And I want to also commend the ranking member, Mr. Chabot, for his
outstanding leadership on this particular issue.
Mr. Chairman, today I rise in strong support of H.R. 1332, the Small
Business Lending Improvements Act of 2007.
As a former small business owner and an advocate for minority
entrepreneurship and franchising, I might add, I am pleased that this
legislation would target money more aggressively and efficiently
towards small businesses and finally put them in a position to compete.
Mr. Chairman, the Small Business Administration's support of
communities like my own in the First Congressional District of Illinois
needs to be improved. One of the services that I provide to my
constituents is monthly small business development seminars that we are
conducting in cooperation with the local SBA. Also, I have hosted two
franchise fairs to educate and engage my constituents on the power of
minority entrepreneurship.
Mr. Chairman, one of the biggest issues raised is the accessibility
of the SBA loans. Small business owners and startups have a hard time
navigating the SBA. This important legislation bridges the financial
gap for small business owners, particularly minority businesses. These
owners are trying to create economic opportunities. They are trying to
create jobs, and they are trying to increase the competition of goods
and services. Not only do they need and deserve our support, but, Mr.
Chairman, by focusing on these urban business pioneers, we honor the
entrepreneur spirit that this Nation was built on.
I encourage my colleagues to support this legislation.
I fully support this bill's provision of:
Establishing a small bank outreach division;
Increasing capital for socially and economically disadvantaged small
businesses; and
Completely eliminating loan fees to veteran-owned small businesses.
Mr. Chairman, this bill ensures that the mission and goals of the
Small Business Administration are not only being maintained but that
their standards for aggressive outreach, increasing access and
promoting equitable lending are raised.
{time} 1700
Ms. VELAZQUEZ. I yield 2 minutes to the gentlewoman from Ohio (Mrs.
Jones), a former member of the Small Business Committee.
Mrs. JONES of Ohio. I want to thank the Chair of this wonderful
committee, Nydia Velazquez. I was on this committee when I came to
Congress, and she helped me understand what legislative bodies were all
about, and I want to thank her for her leadership because many times
people want to give small business to the Republican Party, but this
Chair has shown that small business is a Democratic as well as a
Republican issue. And I thank my colleague from Ohio (Mr. Chabot) for
the work that he has done.
Today, I rise in support of H.R. 1332, the Small Business Lending
Improvements Act of 2007. This act is a tremendous effort to adapt the
sometimes arcane SBA rules to the American businesswoman.
Among the impressive provisions of this act are a requirement to
authorize SBA loans for projects that reduce energy consumption by at
least 10 percent. In addition, the rural lending outreach program sends
a great message to our small businesses in rural areas, who sometimes
have to manage isolation and lack of resources because they have no
proximity.
In addition, by making the Community Express Program permanent, you
provide an attractive incentive for the erstwhile disenfranchised
entrepreneurs to set up legitimate businesses. These businesses help to
keep families together, and eventually contribute to our tax base.
I am from Cleveland, Ohio, which at the moment is said to be the
poorest city in the Nation. Ninety-five percent of the private sector
jobs are provided by small businesses. Therefore, the creation of jobs
and growth of our small businesses is vital to our economic recovery.
The Small Business Administration's 7(a) lending program is essential
for small business owners who cannot access capital through
conventional markets. However, the program has been and is currently
underfunded, and the burden has been shifting increasingly onto small
business owners. Recent
[[Page H4112]]
changes to the program have increased the fees to access 7(a) programs,
which diminishes access of small business owners.
I want to thank the chairwoman and the ranking member for their
leadership around this issue. I want to thank you for the opportunity
to be heard. And small business is not only a Republican issue, it is a
Democratic issue. It's an American issue.
Mr. CHABOT. Mr. Chairman, I yield myself such time as I may consume.
I want to again thank the chairwoman for her leadership on this
particular piece of legislation, which I think is very good for small
businesses across the country.
Mr. Chairman, as was mentioned in the Rules Committee yesterday I
believe by Mr. Dreier, it's preferable for small businesses to get
their loans through the private sector if they're able to do so. And as
one who believes in less government as opposed to more government, that
would certainly be my preference. But there are some cases in which the
private sector at this point just wouldn't cover those particular
entities, some of the start-up small businesses, especially some in
struggling areas, some disadvantaged areas as we have in some urban
areas, and some rural areas as well. And so there is an appropriate
place for 7(a) loans and the 504 loans. As I mentioned, the name of
that particular program is going to be changed as a result of this
bill.
I think these are vital improvements. A streamlining of the process
will be helpful to small businesses all across the country. I think we
have a responsibility to improve the climate for small businesses,
especially when one considers that somewhere between 60 and 80 percent
of the new jobs that are created in this country are created not by
large corporations, but by small businesses. So I think this bill helps
businesses who need it most. I think this is a good bill, and so I urge
my colleagues to support it.
Mr. Chairman, I yield back the balance of my time.
Ms. VELAZQUEZ. Mr. Chairman, I yield myself as much time as I may
consume.
Mr. Chairman, this week is Small Business Week, a time to honor
entrepreneurs for the contributions they make to this country. Small
businesses create three out of every four new jobs. They are the
economic backbone, and our largest job creators.
However, it is not easy to be a small business owner. They struggle
every day to provide health care for their employees, to comply with
increasing regulatory burdens, and to access financing to keep their
businesses up and running.
This week, rather than just talk about supporting our Nation's 26
million small businesses, we have an opportunity to do something,
provide them with the support they deserve, and ensure it is not a
struggle to access much needed capital.
H.R. 1332 will make loans more economical while providing long-term
stability for small business owners. Ensuring loans are affordable and
that relief from rising capital costs is available is critical for
small firms to remain a driving force in today's economy. Let's put the
money back into the hands of entrepreneurs where it belongs.
I want to thank the ranking member, Mr. Chabot, for his work and his
leadership in working with me on this legislation. I also want to thank
the staff that worked on this bill; from the minority staff, Mike
Smullen, Barry Pineles and Kevin Fitzpatrick; and from the majority
staff, Michael Day, Adam Minehardt, Andy Jiminez and Tim Slattery, and
Elizabeth Hart and Sam Hodas from Representative Bean's staff.
I strongly urge my colleagues to vote for the Small Business Lending
Improvements Act of 2007.
Ms. JACKSON-LEE of Texas. Madam Chairman, I rise in support of H.R.
1332, the Small Business Lending Improvements Act. As a member of
Congress, I have been a strong supporter of our Nation's small
businesses. Already this week, we have debated bills seeking to ensure
that America remains competitive in the global economy, and, in doing
so, we have recognized the importance of ongoing technological
innovation. Small businesses comprise an important segment of this
process of development; by acting as a catalyst within our economy,
they spur growth for all sectors of business.
Small businesses represent the American dream, and they define the
American economy. These businesses currently account for 95 percent of
all employers, create half of our gross domestic product, and provide
three out of four new jobs in this country. However, to keep this
sector of the economy thriving, small businesses require access to
loans to initiate, develop, and expand their range of goods and
services. The Small Business Administration (SBA), a Federal
organization that aids small businesses with loan and development
programs, is a key provider of support to small businesses. The SBA's
main loan program accounts for 30 percent of all long-term small
business borrowing in America.
By streamlining the SBA's two largest finance programs directed at
small businesses, H.R. 1332 would offer these businesses the crucial
tools that they need to be successful in today's marketplace. This bill
gives the SBA authority to contribute funds to reduce the burden
associated with borrower and lender fees on 7(a) loans, making these
loans more economical, without upsetting the program's current
stability.
H.R. 1332 also creates several new loan programs under the 7(a)
umbrella. It specifically reaches out to rural lenders, reducing their
7(a) loan paperwork. It makes permanent the Community Express Program,
granting improved access to capital for socially and economically
disadvantaged small businesses. It recognizes the I need for doctors
and dentists in federally designated Health Professional Shortage
Areas, and establishes a program to reduce borrower and lender fees in
these areas. Finally, this bill offers help to our returning veterans,
those who have served our Nation bravely in Iraq and Afghanistan, to
establish and expand their own businesses. In addition to all these
programs, H.R. 1332 seeks to establish a Small Bank Outreach division
within SBA. This new division would provide direct support to community
banks participating in the 7(a) program, and would enable these local
banks to make loans to a wider range of deserving businesses. It would
also work to strengthen local economies by providing lenders deemed
Certified Development Companies with a range of tools to grant loans to
businesses within their own communities.
As we consider what we as a Congress might do to make our Nation more
economically secure, and to continue to augment our position within the
global economy, it is crucial that we focus on the importance of small
businesses. Small business owners are leaders in innovation, creative
business operations and new technologies and products. I continue to
believe that the success of our economy is dependent on these
businesses. I urge my colleagues to support this bill, and to continue
to assist small business owners to realize their potential.
Mrs. CHRISTENSEN. Mr. Chairman, I rise in support of H.R. 1332, the
Small Business Lending Improvements Act of 2007.
As we celebrate Small Business Week, it is only appropriate that we
recognize the enormous contribution of small businesses to our economy
by passing legislation that would facilitate access to capital. Without
ready access to capital, small businesses are often forced to turn to
more costly lending alternatives, including credit cards, which carry
high interest rates and fees. Without access to financing, companies
are unable to target new markets, grow, or hire new workers.
Currently, the SBA's 7(a) and 504 programs are the only federal
lending programs available to small businesses and there are no federal
grants for starting and/or financing small businesses. The SBA 7(a) and
504 programs were created to help small businesses gain access to
affordable financing. However, these programs are in dire need to be
modernized and strengthened if they are to continue to meet their
important goals.
H.R. 1332 would make these necessary changes by updating and
streamlining the 7(a) loan programs by reducing fees, make the
Community Express Program permanent and reduce the paperwork generated
by these loans. As a physician and Chair of the Congressional Black
Caucus Health Braintrust, I am pleased that this bill also includes a
provision to adapt the 7(a) program to improve access to the program
for medical professionals in health professional shortage areas.
Physicians are viewed first and foremost as health care providers but
they are also small businesses and in today's economic environment many
are struggling to stay afloat.
Mr. Chairman, I join the many organizations that support the passage
this bill and urge my colleagues to support the bill as well. I would
like to commend Chairwoman Velazquez for her continued leadership and
congratulate her and Ranking Member Chabot for bringing this bill to
the House floor.
Mr. INSLEE. Mr. Chairman, I thank the Chairwoman and Ranking Member
for their this issue. I rise today to support my amendment to the Small
Business Lending Improvements Act (H.R. 1332) which would add an
eligibility area to Section 504 loans. My amendment will ensure that
American entrepreneurs
[[Page H4113]]
have the opportunity to start, build and, grow green small businesses
by adding a sustainable design or low-impact design to the public
policy goals of this lending program.
This common-sense amendment would decrease long-term operating costs
for small business owners, stimulate green building technologies,
create a better work environment for employees and reduce carbon
emissions in the United States.
Buildings account for one-third of carbon emissions per year. It is
important that we help small business owners make sustainable choices
that they might not otherwise make due to cost, or simply due to the
fact that some of these technologies are new. My amendment will help
SBA expand their financing structure to help businesses use sustainable
building standards, such as LEED certified, which have a minimal impact
on our environment. Currently, SBA loans can help a company upgrade to
required standards, but very few Small Business Loans have helped
owners choose green building standards.
Furthermore, green buildings benefit workers. Case studies show
examples of 2 to 16 percent increase in productivity in among employees
who work in buildings that incorporate sustainable building design.
Sustainable design and green building practices are easy and
available. An excellent example of how this can be done, and why green
technologies help small businesses and the community, is the Snoqualmie
Gourmet Ice Cream factory in Maltby, Wash. I recently toured this
factory, which is Snohomish County's first sustainable commercial
project, owned by Barry Bettinger. Barry used Small Business
Administration (SBA) loans for low impact development strategies. With
assistance from the Sustainable Development Task Force, he used
technologies to cut his lighting costs by 50 percent, reduce his water
usage by 40 percent and reduce energy for cooling fans by 75 percent.
I hope that the SBA and experts in sustainable design such as the
National Institute of Building Sciences will work together to develop
meaningful standards in this eligibility area of sustainable design.
Congress has a huge opportunity here to further improve the small
business lending program to meet goals of reducing energy consumption
in this country. Thank you for supporting this amendment.
Ms. VELAZQUEZ. Mr. Chairman, I yield back the balance of my time.
The CHAIRMAN. All time for general debate has expired.
Pursuant to the rule, the amendment in the nature of a substitute
printed in the bill will be considered as an original bill for the
purpose of amendment under the 5-minute rule and shall be considered
read.
The text of the amendment in the nature of a substitute is as
follows:
H.R. 1332
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Small
Business Lending Improvements Act of 2007''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--7(A) PROGRAM
Sec. 101. Authority for fee contributions.
Sec. 102. Rural Lending Outreach Program.
Sec. 103. Community Express program made permanent.
Sec. 104. Medical Professionals in Designated Shortage Areas Program.
Sec. 105. Increased Veteran Participation Program.
Sec. 106. Alternative size standard.
Sec. 107. Support to regional offices.
TITLE II--CERTIFIED DEVELOPMENT COMPANY ECONOMIC DEVELOPMENT LOAN
PROGRAM
Sec. 201. Certified Development Company Economic Development Loan
Program.
Sec. 202. Definitions.
Sec. 203. Eligibility of development companies to be designated as
certified development companies.
Sec. 204. Definition of rural areas.
Sec. 205. Businesses in low-income areas.
Sec. 206. Combinations of certain goals.
Sec. 207. Refinancing.
Sec. 208. Additional equity injections.
Sec. 209. Loan liquidations.
Sec. 210. Closing costs.
Sec. 211. Maximum Certified Development Company and 7(a) loan
eligibility.
Sec. 212. Eligibility for energy efficiency projects.
Sec. 213. Loans for plant projects used for energy-efficient purposes.
Sec. 214. Extension of period during which loss reserves of premier
certified lenders determined on the basis of outstanding
balance of debentures.
Sec. 215. Extension of alternative loss reserve pilot program for
certain premier certified lenders.
TITLE I--7(A) PROGRAM
SEC. 101. AUTHORITY FOR FEE CONTRIBUTIONS.
Section 7(a) of the Small Business Act (15 U.S.C. 636(a))
is amended--
(1) in paragraph (18)(A) by striking ``shall collect'' and
inserting ``shall assess and collect'';
(2) in paragraph (18) by adding at the end the following:
``(C) Offset.--The Administrator may, as provided in
paragraph (32), offset fees assessed and collected under
subparagraph (A).'';
(3) in paragraph (23) by striking subparagraph (C) and
adding at the end the following:
``(C) Offset.--The Administrator may, as provided in
paragraph (32), offset fees assessed and collected under
subparagraph (A).''; and
(4) by adding at the end the following:
``(32) Fee contributions.--
``(A) In general.--To the extent that amounts are made
available to the Administrator for the purpose of fee
contributions, the Administrator shall--
``(i) first consider contributing to fees paid by small
business borrowers under clauses (i) through (iii) of
paragraph (18)(A), to the maximum extent possible; and
``(ii) then consider contributing to fees paid by small
business lenders under paragraph (23)(A).
``(B) Quarterly adjustment.--Each fee contribution under
subparagraph (A) shall be effective for one fiscal quarter
and shall be adjusted as necessary for each fiscal quarter
thereafter to ensure that the amounts under subparagraph (A)
are fully used. The fee contribution for a fiscal quarter
shall be based on the loans that the Administrator projects
will be made during that fiscal quarter, given the program
level authorized by law for that fiscal year and any other
factors that the Administrator considers appropriate.''.
SEC. 102. RURAL LENDING OUTREACH PROGRAM.
Section 7(a) of the Small Business Act (15 U.S.C. 636(a))
is amended--
(1) by striking paragraph (25)(C); and
(2) by adding at the end the following:
``(33) Rural lending outreach program.--The Administrator
shall carry out a rural lending outreach program to provide
up to an 85 percent guaranty for loans of $250,000 or less.
The program shall be carried out only through lenders located
in rural areas (as `rural' is defined in section 501(f) of
the Small Business Investment Act of 1958). For a loan made
through the program, the following shall apply:
``(A) The Administrator shall approve or disapprove the
loan within 36 hours.
``(B) The program shall use abbreviated application and
documentation requirements.
``(C) Minimum credit standards, as the Administrator
considers necessary to limit the rate of default on loans
made under the program, shall apply.''.
SEC. 103. COMMUNITY EXPRESS PROGRAM MADE PERMANENT.
(a) In General.--Section 7(a) of the Small Business Act (15
U.S.C. 636(a)) is amended by adding at the end the following:
``(34) Community express program.--The Administrator shall
carry out a Community Express Program for loans of $250,000
or less. For a loan made under this paragraph, the following
shall apply:
``(A) The loan shall be made to a business concern--
``(i) the majority ownership interest of which is directly
held by individuals who are women, socially or economically
disadvantaged individuals (as defined by the Administrator),
or veterans of the Armed Forces; or
``(ii) that is located in a low- or moderate-income area,
as defined by the Administrator.
``(B) The loan shall comply with the collateral policy of
the Administration, except that, if the amount of the loan is
less than or equal to $25,000, the Administration shall not
require the lender to take collateral.
``(C) The loan shall include terms requiring the lender to
ensure that technical assistance is provided to the borrower,
through the lender or a third-party provider.
``(D) The Administration shall approve or disapprove the
loan within 36 hours.''.
(b) Notice and Comment.--The program required by section
7(a)(34) of the Small Business Act, as added by subsection
(a), shall be established after the opportunity for notice
and comment and not later than 180 days after the date of the
enactment of this Act.
SEC. 104. MEDICAL PROFESSIONALS IN DESIGNATED SHORTAGE AREAS
PROGRAM.
(a) In General.--Section 7(a) of the Small Business Act (15
U.S.C. 636(a)) is amended by adding at the end the following:
``(35) Medical professionals in designated shortage areas
program.--The Administrator shall carry out a Medical
Professionals in Designated Shortage Areas Program. For a
loan made under this paragraph, the following shall apply:
``(A) The loan shall be made to a business concern that
provides properly licensed medical, dental, or psychiatric
services to the public.
``(B) The loan shall be for the purpose of opening a
business concern in a health professional shortage area (as
defined in section 332 of the Public Health Service Act (42
U.S.C. 254e)).
``(C) The loan shall include the participation by the
Administration equal to 90 percent of the balance of the
financing outstanding at the time of disbursement.
``(D) The fees on the loan under paragraphs (18) and (23)
shall be reduced by half.''.
(b) Notice and Comment.--The program required by section
7(a)(35) of the Small Business Act, as added by subsection
(a), shall be established after the opportunity for notice
and comment and not later than 180 days after the date of the
enactment of this Act.
SEC. 105. INCREASED VETERAN PARTICIPATION PROGRAM.
(a) In General.--Section 7(a) of the Small Business Act (15
U.S.C. 636(a)) is amended by adding at the end the following:
[[Page H4114]]
``(36) Increased veteran participation program.--The
Administrator shall carry out an Increased Veteran
Participation Program. For a loan made under this paragraph,
the following shall apply:
``(A) The loan shall be made to a business concern the
majority ownership interest of which is directly held by
individuals who are veterans of the Armed Forces.
``(B) The loan shall include the participation by the
Administration equal to 90 percent of the balance of the
financing outstanding at the time of disbursement.
``(C) The fees on the loan under paragraphs (18) and (23)
shall not apply.''.
(b) Notice and Comment.--The program required by section
7(a)(36) of the Small Business Act, as added by subsection
(a), shall be established after the opportunity for notice
and comment and not later than 180 days after the date of the
enactment of this Act.
SEC. 106. ALTERNATIVE SIZE STANDARD.
(a) In General.--Section 3(a) of the Small Business Act (15
U.S.C. 632(a)) is amended by adding at the end the following:
``(5) In addition to any other size standard under this
subsection, the Administrator shall establish, and permit a
lender making a loan under section 7(a) and a lender making a
loan under the development company loan program to use, an
alternative size standard. The alternative size standard
shall be based on factors including maximum tangible net
worth and average net income.''.
(b) Applicability.--Until the Administrator establishes,
under section 3(a)(5) of the Small Business Act (as added by
subsection (a)), an alternative size standard in the case of
a lender making a loan under section 7(a) of that Act, the
alternative size standard in section 121.301(b) of title 13,
Code of Federal Regulations, shall apply to such a case.
SEC. 107. SUPPORT TO REGIONAL OFFICES.
Section 7(a) of the Small Business Act (15 U.S.C. 636(a))
is amended by adding at the end the following:
``(37) Support to regional offices.--The Administrator
shall carry out a program, within an element of the
Administration already in existence as of the date of the
enactment of the Small Business Lending Improvements Act of
2007, to provide support to regional offices of the
Administration in assisting small lenders who do not
participate in the preferred lender program to participate in
the 7(a) program.''.
TITLE II--CERTIFIED DEVELOPMENT COMPANY ECONOMIC DEVELOPMENT LOAN
PROGRAM
SEC. 201. CERTIFIED DEVELOPMENT COMPANY ECONOMIC DEVELOPMENT
LOAN PROGRAM.
Section 504 of the Small Business Investment Act of 1958
(15 U.S.C. 697a) is amended--
(1) by redesignating subsections (a) and (b) as subsections
(b) and (c); and
(2) by inserting before subsection (b) (as so redesignated)
the following:
``(a) The program to provide financing to small businesses
by guarantees of loans under this Act which are funded by
debentures guaranteed by the Administration may be known as
the `Certified Development Company Economic Development Loan
Program'.''.
SEC. 202. DEFINITIONS.
Section 103(6) of the Small Business Investment Act of 1958
(15 U.S.C. 662(6)) is amended to read as follows:
``(6) the term `development company' means an entity
incorporated under State law with the authority to promote
and assist the growth and development of small-business
concerns in the areas in which it is authorized to operate by
the Administration, and the term `certified development
company' means a development company which the Administration
has determined meets the criteria of section 506;''.
SEC. 203. ELIGIBILITY OF DEVELOPMENT COMPANIES TO BE
DESIGNATED AS CERTIFIED DEVELOPMENT COMPANIES.
Section 506 of the Small Business Investment Act of 1958
(15 U.S.C. 697c) is amended to read as follows:
``SEC. 506. CERTIFIED DEVELOPMENT COMPANIES.
``(a) Authority To Issue Debentures.--A development company
may issue debentures pursuant to this Act if the
Administration certifies that the company meets the following
criteria:
``(1) Size.--The development company is required to be a
small concern with fewer than 500 employees and not under the
control of any entity which does not meet the
Administration's size standards as a small business, except
that any development company which was certified by the
Administration prior to December 31, 2005 may continue to
issue debentures.
``(2) Purpose.--The primary purpose of the development
company is to benefit the community by fostering economic
development to create and preserve jobs and stimulate private
investment.
``(3) Primary function.--The primary function of the
development company is to accomplish its purpose by providing
long term financing to small businesses by the utilization of
the Certified Development Company Economic Development Loan
Program. It may also provide or support such other local
economic development activities to assist the community.
``(4) Non-profit status.--The development company is a non-
profit corporation, except that a development company
certified by the Administration prior to January 1, 1987, may
retain its status as a for-profit corporation.
``(5) Good standing.--The development company is in good
standing in its State of incorporation and in any other State
in which it conducts business, and is in compliance with all
laws, including taxation requirements, in its State of
incorporation and in any other State in which it conducts
business.
``(6) Membership.--The development company has at least 25
members (or stockholders if the corporation is a for-profit
entity), none of whom may own or control more than 10 percent
of the company's voting membership, consisting of
representation from each of the following groups (none of
which are in a position to control the development company):
``(A) Government organizations that are responsible for
economic development.
``(B) Financial institutions that provide commercial long
term fixed asset financing.
``(C) Community organizations that are dedicated to
economic development.
``(D) Businesses.
``(7) Board of directors.--The development company has a
board of directors that--
``(A) is elected from the membership by the members;
``(B) represents at least three of the four groups
enumerated in subsection (a)(6) and no group is in a position
to control the company; and
``(C) meets on a regular basis to make policy decisions for
such company.
``(8) Professional management and staff.--The development
company has full-time professional management, including a
chief executive officer to manage daily operations, and a
full-time professional staff qualified to market the
Certified Development Company Economic Development Loan
Program and handle all aspects of loan approval and
servicing, including liquidation, if appropriate. The
development company is required to be independently managed
and operated to pursue its economic development mission and
to employ its chief executive officer directly, with the
following exceptions:
``(A) A development company may be an affiliate of another
local non-profit service corporation (specifically excluding
another development company) whose mission is to support
economic development in the area in which the development
company operates. In such a case:
``(i) The development company may satisfy the requirement
for full-time professional staff by contracting with a local
non-profit service corporation (or one of its non-profit
affiliates), or a governmental or quasi-governmental agency,
to provide the required staffing.
``(ii) The development company and the local non-profit
service corporation may have partially common boards of
directors.
``(B) A development company in a rural area (as defined in
section 501(f)) shall be deemed to have satisfied the
requirements of a full-time professional staff and
professional management ability if it contracts with another
certified development company which has such staff and
management ability and which is located in the same general
area to provide such services.
``(C) A development company that has been certified by the
Administration as of December 31, 2005, and that has
contracted with a for-profit company to provide services as
of such date may continue to do so.
``(b) Area of Operations.--The Administration shall specify
the area in which an applicant is certified to provide
assistance to small businesses under this title, which may
not initially exceed its State of incorporation unless it
proposes to operate in a local economic area which is
required to include part of its State of incorporation and
may include adjacent areas within several States. After a
development company has demonstrated its ability to provide
assistance in its area of operations, it may request the
Administration to be allowed to operate in one or more
additional States as a multi-state certified development
company if it satisfies the following criteria:
``(1) Each additional State is contiguous to the State of
incorporation, except the States of Alaska and Hawaii shall
be deemed to be contiguous to any State abutting the Pacific
ocean.
``(2) It demonstrates its proficiency in making and
servicing loans under the Certified Development Company
Economic Development Loan Program by--
``(A) requesting and receiving designation as an accredited
lender under section 507 or a premier certified lender under
section 508; and
``(B) meeting or exceeding performance standards
established by the Administration.
``(3) The development company adds to the membership of its
State of incorporation additional membership from each
additional State and the added membership meets the
requirements of subsection (a)(6).
``(4) The development company adds at least one member to
its board of directors in the State of incorporation,
providing that added member was selected by the membership of
the development company.
``(5) The company meets such other criteria or complies
with such conditions as the Administration deems appropriate.
``(c) Processing of Expansion Applications.--The
Administration shall respond to the request of a certified
development company for certification as a multi-state
company on an expedited basis within 30 days of receipt of a
completed application if the application demonstrates that
the development company meets the requirements of subsection
(b)(1) through (b)(4).
``(d) Use of Funds Limited to State Where Generated.--Any
funds generated by a development company from making loans
under the Certified Development Company Economic Development
Loan Program which remain after payment of staff, operating
and overhead expenses shall be retained by the development
company as a reserve for future operations, for expanding its
area of operations in a local economic area as authorized by
the Administration, or for investment in other local economic
development activity in the State from which the funds were
generated.
``(e) Ethical Requirements.--
[[Page H4115]]
``(1) In general.--Certified development companies, their
officers, employees and other staff, shall at all times act
ethically and avoid activities which constitute a conflict of
interest or appear to constitute a conflict of interest. No
one may serve as an officer, director or chief executive
officer of more than one certified development company.
``(2) Prohibited conflict in project loans.--As part of a
project under the Certified Development Company Economic
Development Loan Program, no certified development company
may recommend or approve a guarantee of a debenture by the
Administration that is collateralized by a second lien
position on the property being constructed or acquired and
also provide, or be affiliated with a corporation or other
entity, for-profit or non-profit, which provides, financing
collateralized by a first lien on the same property. A
business development company that was participating as a
first mortgage lender, either directly or through an
affiliate, for the Certified Development Company Economic
Development Loan Program in either fiscal years 2004 or 2005
may continue to do so.
``(3) Other economic development activities.--Operation of
multiple programs to assist small business concerns in order
for a certified development company to carry out its economic
development mission shall not be deemed a conflict of
interest, but notwithstanding any other provision of law, no
development company may accept funding from any source,
including but not limited to any department or agency of the
United States Government--
``(A) if such funding includes any conditions, priorities
or restrictions upon the types of small businesses to which
they may provide financial assistance under this title; or
``(B) if it includes any conditions or imposes any
requirements, directly or indirectly, upon any recipient of
assistance under this title unless the department or agency
also provides all of the financial assistance to be delivered
by the development company to the small business and such
conditions, priorities or restrictions are limited solely to
the financial assistance so provided.''.
SEC. 204. DEFINITION OF RURAL AREAS.
Section 501 of the Small Business Investment Act of 1958
(15 U.S.C. 695) is amended by adding at the end the following
new subsection:
``(f) As used in subsection (d)(3)(D), the term `rural'
shall include any area other than--
``(1) a city or town that has a population greater than
50,000 inhabitants; and
``(2) the urbanized area contiguous and adjacent to such a
city or town.''.
SEC. 205. BUSINESSES IN LOW-INCOME AREAS.
Section 501(d)(3) of the Small Business Investment Act of
1958 (15 U.S.C. 695(d)(3)) is amended by inserting after
``business district revitalization'' the following: ``or
expansion of businesses in low-income communities that would
be eligible for new market tax credit investments under
section 45D of the Internal Revenue Code of 1986 (26 U.S.C.
45D)''.
SEC. 206. COMBINATIONS OF CERTAIN GOALS.
Section 501(e) of the Small Business Investment Act of 1958
(15 U.S.C. 695(e)) is amended by adding at the end the
following:
``(7) A small business concern that is unconditionally
owned by more than one individual, or a corporation whose
stock is owned by more than one individual, is deemed to
achieve a public policy goal under subsection (d)(3) if a
combined ownership share of at least 51 percent is held by
individuals who are in one of the groups listed as public
policy goals specified in subsection (d)(3)(C) or
(d)(3)(E).''.
SEC. 207. REFINANCING.
Section 502 of the Small Business Investment Act of 1958
(15 U.S.C. 696) is amended by adding at the end the
following:
``(7) Permissible debt refinancing.--Any financing approved
under this title may also include a limited amount of debt
refinancing for debt that was not previously guaranteed by
the Administration. If the project involves expansion of a
small business which has existing indebtedness collateralized
by fixed assets, any amount of existing indebtedness that
does not exceed one-half of the project cost of the expansion
may be refinanced and added to the expansion cost,
providing--
``(A) the proceeds of the indebtedness were used to acquire
land, including a building situated thereon, to construct a
building thereon or to purchase equipment;
``(B) the borrower has been current on all payments due on
the existing debt for at least the past year; and
``(C) the financing under the Certified Development Company
Economic Development Loan Program will provide better terms
or rate of interest than now exists on the debt.''.
SEC. 208. ADDITIONAL EQUITY INJECTIONS.
Clause (ii) of section 502(3)(B) of the Small Business
Investment Act of 1958 (15 U.S.C. 696(3)(B)) is amended to
read as follows:
``(ii) Funding from institutions.--
``(I) If a small business concern provides the minimum
contribution required under paragraph (C), not less than 50
percent of the total cost of any project financed pursuant to
clauses (i), (ii), or (iii) of subparagraph (C) shall come
from the institutions described in subclauses (I), (II), and
(III) of clause (i).
``(II) If a small business concern provides more than the
minimum contribution required under paragraph (C), any excess
contribution may be used to reduce the amount required from
the institutions described in subclauses (I), (II), and (III)
of clause (i) except that the amount from such institutions
may not be reduced to an amount less than the amount of the
loan made by the Administration.''.
SEC. 209. LOAN LIQUIDATIONS.
Section 510 of the Small Business Investment Act of 1958
(15 U.S.C. 697g) is amended--
(1) by redesignating subsection (e) as subsection (g); and
(2) by inserting after subsection (d) the following:
``(e) Participation.--
``(1) Mandatory.--Any certified development company which
elects not to apply for authority to foreclose and liquidate
defaulted loans under this section or which the
Administration determines to be ineligible for such authority
shall contract with a qualified third-party to perform
foreclosure and liquidation of defaulted loans in its
portfolio. The contract shall be contingent upon approval by
the Administration with respect to the qualifications of the
contractor and the terms and conditions of liquidation
activities.
``(2) Commencement.--The provisions of this subsection
shall not require any development company to liquidate
defaulted loans until the Administration has adopted and
implemented a program to compensate and reimburse development
companies as provided under subsection (f).
``(f) Compensation and Reimbursement.--
``(1) Reimbursement of expenses.--The Administration shall
reimburse each certified development company for all expenses
paid by such company as part of the foreclosure and
liquidation activities if the expenses--
``(A) were approved in advance by the Administration either
specifically or generally; or
``(B) were incurred by the company on an emergency basis
without Administration prior approval but which were
reasonable and appropriate.
``(2) Compensation for results.--The Administration shall
develop a schedule to compensate and provide an incentive to
qualified State or local development companies which
foreclose and liquidate defaulted loans. The schedule shall
be based on a percentage of the net amount recovered but
shall not exceed a maximum amount. The schedule shall not
apply to any foreclosure which is conducted pursuant to a
contract between a development company and a qualified third-
party to perform the foreclosure and liquidation.''.
SEC. 210. CLOSING COSTS.
Paragraph (4) of section 503(b) of the Small Business
Investment Act of 1958 (15 U.S.C. 697(b)) is amended to read
as follows:
``(4) the aggregate amount of such debenture does not
exceed the amount of loans to be made from the proceeds of
such debenture plus, at the election of the borrower under
the Certified Development Company Economic Development Loan
Program, other amounts attributable to the administrative and
closing costs of such loans, except for the borrower's
attorney fees;''.
SEC. 211. MAXIMUM CERTIFIED DEVELOPMENT COMPANY AND 7(A) LOAN
ELIGIBILITY.
Section 502(2) of the Small Business Investment Act of 1958
(15 U.S.C. 696(2)) is amended by adding at the end the
following:
``(C) Combination financing.--Financing under this title
may be provided to a borrower in the maximum amount provided
in this subsection, plus a loan guarantee under section 7(a)
of the Small Business Act may also be provided to the same
borrower in the maximum provided in section 7(a)(3)(A) of
such Act.''.
SEC. 212. ELIGIBILITY FOR ENERGY EFFICIENCY PROJECTS.
Section 501(d)(3) of the Small Business Investment Act of
1958 (15 U.S.C. 695(d)(3)) is amended--
(1) in subparagraph (G) by striking ``or'' at the end;
(2) in subparagraph (H) by striking the period at the end
and inserting ``, or''; and
(3) by inserting after subparagraph (H) the following:
``(I) reduction of energy consumption by at least 10
percent.''.
SEC. 213. LOANS FOR PLANT PROJECTS USED FOR ENERGY-EFFICIENT
PURPOSES.
Section 502(2)(A) of the Small Business Investment Act of
1958 (15 U.S.C. 696(2)(A)) is amended--
(1) in clause (ii) by striking ``and'' at the end;
(2) in clause (iii) by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(iv) $4,000,000 for each project that reduces the
borrower's energy consumption by at least 10 percent.''.
SEC. 214. EXTENSION OF PERIOD DURING WHICH LOSS RESERVES OF
PREMIER CERTIFIED LENDERS DETERMINED ON THE
BASIS OF OUTSTANDING BALANCE OF DEBENTURES.
Section 508(c)(6)(B) of the Small Business Investment Act
of 1958 (15 U.S.C. 697e(c)(6)(B)) is amended by striking
``during the 2-year period beginning on the date that is 90
days after the date of the enactment of this subparagraph,''
and inserting ``through the end of fiscal year 2008,''.
SEC. 215. EXTENSION OF ALTERNATIVE LOSS RESERVE PILOT PROGRAM
FOR CERTAIN PREMIER CERTIFIED LENDERS.
Section 508(c)(7)(J) of the Small Business Investment Act
of 1958 (15 U.S.C. 697e(c)(7)(J)) is amended by striking
``means'' and all that follows through the period at the end
and inserting ``means each calendar quarter through the end
of fiscal year 2008.''
The CHAIRMAN. No amendment to the committee amendment is in order
except those printed in House Report 110-108. Each amendment may be
offered only in the order printed in the report, by a Member designated
in the report, shall be considered read, shall be debatable for the
time specified in the report, equally divided and controlled by the
proponent and an opponent of the amendment, shall not be
[[Page H4116]]
subject to amendment, and shall not be subject to a demand for division
of the question.
Amendment No. 1 Offered by Mr. Matheson
The CHAIRMAN. It is now in order to consider amendment No. 1 printed
in House Report 110-108.
Mr. MATHESON. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 1 offered by Mr. Matheson:
Page 6, line 4, insert after ``Forces'' the following: ``or
members of the reserve components of the Armed Forces''.
Page 8, line 14, insert after ``Forces'' the following:
``or members of the reserve components of the Armed Forces''.
The CHAIRMAN. Pursuant to House Resolution 330, the gentleman from
Utah (Mr. Matheson) and a Member opposed each will control 5 minutes.
The Chair recognizes the gentleman from Utah.
Mr. MATHESON. Mr. Chairman, I rise as a supporter of H.R. 1332, the
underlying bill, and I would particularly like to thank the sponsor of
the bill, Representative Melissa Bean, as well as the chairwoman of the
Small Business Committee, Ms. Velazquez, and the ranking member, Mr.
Chabot, for all their hard work in bringing this bipartisan bill to the
floor today.
Now, the 7(a) program is SBA's largest primary business loan program
and provides loan guarantees to thousands of small businesses that are
unable to obtain financing through the traditional lending market. That
is why I am pleased that section 105 of the underlying bill will
establish the Increased Veteran Participation Program to help increase
7(a) loans to military veterans, which declined by over $170 million
between fiscal year 2005 and fiscal year 2006.
Section 103 of the bill, which permanently establishes the Community
Express Program, will also provide much needed loans to veterans.
As 14 percent of small businesses in America are owned by veterans,
we should do all we can to support those who have served our country.
However, we should not leave out the men and women who continue to
serve our country honorably every day in the military reserves. Small
business ownership is extremely challenging, especially for members of
the Reserve component of the Armed Forces who must carefully balance
their civilian careers with their duty to serve our Nation.
My amendment would simply include members of the Reserve components
of the Armed Forces as eligible to receive loans under the Community
Express Program in section 103 of the bill and as eligible to
participate in the Increased Veteran Participation Program in section
105.
Since 9/11, I think we all know we have relied on members of the
Reserve more and more to participate in serving our country, and this
increased role should be recognized and supported.
I urge colleagues to support my amendment.
I yield to the Chair of the full committee, Ms. Velazquez.
Ms. VELAZQUEZ. I want to thank the gentleman for yielding.
Mr. Chairman, I am prepared to accept the amendment, and I will yield
to Mr. Chabot for any comments that he may have.
Mr. CHABOT. Mr. Chairman, we have no objection to the amendment. We
commend the gentleman for offering this helpful amendment.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from Utah (Mr. Matheson).
The amendment was agreed to.
Amendment No. 2 Offered by Mr. Matheson
The CHAIRMAN. It is now in order to consider amendment No. 2 printed
in House Report 110-108.
Mr. MATHESON. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 2 offered by Mr. Matheson:
Page 6, line 1, insert after ``women,'' the following:
``members of qualified Indian tribes,''.
The CHAIRMAN. Pursuant to House Resolution 330, the gentleman from
Utah (Mr. Matheson) and a Member opposed each will control 5 minutes.
The Chair recognizes the gentleman from Utah.
Mr. MATHESON. Mr. Chairman, as I just explained in the discussion on
my previous amendment, SBA's 7(a) loan program helps thousands of
entrepreneurs start new businesses, create jobs and grow the economy
here in the United States. Unfortunately, many segments of the American
population are still unable to obtain necessary capital to successfully
become entrepreneurs. Now to help remedy this inequity, the SBA created
the Community Express Program to reach out to segments of the small
business community that have difficulty accessing capital from
traditional lending markets. These businesses are typically owned by
women, veterans and socially or economically disadvantaged individuals
who are underrepresented as business owners and who need smaller
business loans accompanied by technical assistance.
Members of Indian tribes especially lack sufficient access to capital
for starting new businesses. Of minority-owned businesses, only 6.6
percent were owned by American Indians, the least percentage of any
minority group surveyed. And of U.S. nonfarm businesses, less than 1
percent are owned by American Indians.
I represent many Native American tribes in my district, and I know
the entrepreneurial spirit is alive and well if only scarce capital can
be attained for new businesses.
My amendment would simply include members of qualified Indian tribes
as eligible to receive loans under the Community Express Program in
section 103 of the underlying bill. This minor revision will provide
loans to a currently underserved population and help participating
lenders better determine who is actually eligible to receive loans
under the Community Express Program.
I urge my colleagues to support this amendment.
I yield to the Chair of the full committee, Ms. Velazquez.
Ms. VELAZQUEZ. Mr. Chairman, I am prepared to accept this amendment.
I want to thank you for bringing this issue.
I yield to the ranking member, Mr. Chabot, for any comment.
Mr. CHABOT. I thank the gentlelady for yielding. We would also agree
with this amendment. I think they are both excellent amendments. And I
meant to comment on the other one as well. When the gentleman included
our Reserve forces as well as other member veterans in Armed Forces, I
think when one considers how patriotic our Reservists are and how many
of them, especially with our involvement in Iraq and Afghanistan, are
literally putting their lives on the line, I think this is a very
helpful and important amendment, both of them. And so we would commend
the gentleman for introducing them.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from Utah (Mr. Matheson).
The amendment was agreed to.
Amendment No. 3 Offered by Mr. Cuellar
The CHAIRMAN. It is now in order to consider amendment No. 3 printed
in House Report 110-108.
Mr. CUELLAR. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 3 offered by Mr. Cuellar:
Page 5, line 2, strike the period and insert the following:
``or, in the case of a small business concern located in a
rural area that does not have a lender located within 30
miles of the principal place of business, through any lender
that is enrolled in, and administers, the 7(a) loan program
that the small business concern chooses.''.
The CHAIRMAN. Pursuant to House Resolution 330, the gentleman from
Texas (Mr. Cuellar) and a Member opposed each will control 5 minutes.
The Chair recognizes the gentleman from Texas.
Mr. CUELLAR. Mr. Chairman, I yield myself such time as I may consume.
I rise today to encourage my colleagues to support my amendment and
help rural small businesses receive the access to capital they need to
grow.
I would like to thank my good friend, Chairwoman Velazquez, for
reporting out this critical bill, and to Congresswoman Bean for taking
the lead on this issue. I also want to thank the
[[Page H4117]]
ranking member, Mr. Chabot, for the leadership and bipartisan support
that he has shown in this bill and in the committee.
My amendment would strengthen the underlying bill and ensure that we
solve one of the most critical problems facing rural small businesses.
Like many parts of the United States, my congressional district is
the home to many rural companies. It is well known that small
businesses found in rural communities have a more difficult time
accessing affordable capital than their counterparts in the large
metropolitan areas.
Considering that there are probably about 1.2 million rural
businesses, it is important to reach out to this vital part of our
economy. The Rural Indian Outreach Program proposed in this bill will
be a tremendous tool for lenders located in rural communities.
{time} 1715
The provisions outlined will take a major step toward expanding the
financial options for the rural economy.
Unfortunately, this bill in the current form, the rural small
businesses owner needs access to the rural lenders that use this
particular program. In my rural areas, many small businesses do not
live close to a bank and therefore they are forced to do banking many
miles away from the closest city. We must make sure that we help both
the rural lender and the rural business owner.
The amendment that I have, Mr. Chairman, states that a rural small
business who is not within 30 miles of a rural lender can take
advantage of the rural lending outreach program through any lender in
the SBA 7(a) loan program. It is my hope that this amendment will
further increase opportunities for small businesses and expand the
rural economies throughout our Nation.
Mr. Chairman, I yield to Chairwoman Velazquez at this time. And I
believe there is support for this amendment.
Ms. VELAZQUEZ. In our hearings, Mr. Chairman, the committee heard
testimony on the various challenges facing the 7(a) program. One of the
more troubling developments has been a steady decline in the number of
lenders participating in the 7(a) program, particularly among small
lenders and community banks located in rural areas. With fewer lenders
in the program, we all lose.
The rural lender outreach program is intended to help remedy this
problem. With simpler application standards and a streamlined lending
process, the rural lender outreach program will facilitate
participation in the 7(a) among small lenders in rural communities.
I look forward to working with my colleague to ensure that this
amendment will help the rural lender outreach program achieve its
important objectives.
I yield to the gentleman from Ohio for any comments that he might
have.
Mr. CHABOT. I thank the gentlelady for yielding, and I want to
commend the gentleman from Texas for offering a very thoughtful
amendment here.
Oftentimes when you have a bill as complicated as this one is, the
point of the bill obviously is pretty straightforward: It is to
streamline and improve the process, make it more accessible to small
business people, because that is one of the main problems that we have,
that small businessmen have, and small businesswomen as well, is access
to capital.
One has to look at this sometimes what do you do to benefit rural
communities, and sometimes it is more urban communities. I happen to
represent an overall fairly urban community, the city of Cincinnati.
But I know the gentleman has a much larger district in mind, one in
which the challenges may be somewhat different. And I think it is very
good that the gentleman took the time to go through this bill with such
care to find a way that he can benefit the people in his community and
at the same time make it a better bill.
So I again commend the gentleman for his thoughtful approach to this
bill, thank him for offering this amendment, and we are in a position
to accept it. And I again thank him for his hard work on this.
Ms. VELAZQUEZ. Mr. Chairman, we are prepared to accept the amendment.
Mr. CUELLAR. Mr. Chairman, I want to thank again Chairwoman Velazquez
and the ranking member for their support and leadership, their
bipartisan support.
Mr. Chairman, I yield back the balance of my time.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from Texas (Mr. Cuellar).
The amendment was agreed to.
Amendment No. 4 Offered by Mr. Inslee
The CHAIRMAN. It is now in order to consider amendment No. 4 printed
in House Report 110-108.
Mr. INSLEE. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 4 offered by Mr. Inslee:
Page 26, strike lines 3 through 8 and insert the following:
(2) in subparagraph (H) by striking the period at the end
and inserting a comma; and
(3) by inserting after subparagraph (H) the following:
``(I) reduction of energy consumption by at least 10
percent, or
``(J) increased use of sustainable design or low-impact
design to produce buildings that reduce the use of non-
renewable resources, minimize environmental impact, and
relate people with the natural environment.''.
The CHAIRMAN. Pursuant to House Resolution 330, the gentleman from
Washington (Mr. Inslee) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentleman from Washington.
Mr. INSLEE. My fellow Members, we know that small businesses have
been leaders in job creation and are the dynamic growth center for the
American economy, and now they are poised to become the leaders in our
green building revolution. We know that we have challenges on energy
security, we know we have challenges to deal with on global warming,
and we know that small businesses have challenges to receive capital to
help in their programs to make their businesses more efficient, less
costly for energy consumption, and less emitting of greenhouse gases.
Our amendment would create the ability of the SBA to provide capital
to our small businesses across the country to do thousands of things
that they want to start doing, items like putting additional energy-
efficient equipment into their businesses, building green roofs that
can prevent energy loss, installation of renewable energy sources like
photovoltaic cells and energy equipment heating and cooling systems.
The list is endless.
I would like to think of a little small business called the
Snoqualmie Ice Cream Company, which is some of the best ice cream in
the world, but they used an SBA loan essentially to put impervious
concrete and build a green roof, which helped their business operations
and helped the environment to boot.
So we would propose that we expand the SBA purposes to allow our
small businessmen and women to be on the cutting edge of green building
and green businesses across the country. This will help them move a
step forward to use their dynamic leadership.
Mr. Chairman, I yield to Ms. Velazquez.
Ms. VELAZQUEZ. Mr. Chairman, we are prepared to accept the amendment.
I yield to the ranking member for any comments that he might have.
Mr. CHABOT. I thank the gentlelady for yielding. We are in a position
to accept this amendment as well, and I commend the gentleman for
offering it.
Mr. INSLEE. Mr. Chairman, I yield back the balance of our time.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from Washington (Mr. Inslee).
The amendment was agreed to.
The CHAIRMAN. The question is on the committee amendment in the
nature of a substitute, as amended.
The committee amendment in the nature of a substitute, as amended,
was agreed to.
The CHAIRMAN. Under the rule, the Committee rises.
Accordingly, the Committee rose; and the Speaker pro tempore (Ms.
DeGette) having assumed the chair, Mr. Pastor, Chairman of the
Committee of the Whole House on the state of the Union, reported that
that Committee, having had under consideration the bill (H.R. 1332) to
improve the access to capital programs of the Small Business
Administration, and for other purposes, pursuant to House Resolution
330, he reported the bill back to the
[[Page H4118]]
House with an amendment adopted by the Committee of the Whole.
The SPEAKER pro tempore. Under the rule, the previous question is
ordered.
Is a separate vote demanded on any amendment to the amendment
reported from the Committee of the Whole? If not, the question is on
the amendment.
The amendment was agreed to.
The SPEAKER pro tempore. The question is on the engrossment and third
reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.
Motion to Recommit Offered by Mr. McCrery
Mr. McCRERY. Madam Speaker, I offer a motion to recommit.
The SPEAKER pro tempore. Is the gentleman opposed to the bill?
Mr. McCRERY. In its current form.
The SPEAKER pro tempore. The Clerk will report the motion to
recommit.
The Clerk read as follows:
Mr. McCrery moves to recommit the bill, H.R. 1332, to the
Committee on Small Business, with instructions to report back
the same forthwith with the following amendments:
Page 6, after line 7, insert the following:
``(B) For purposes of subparagraph (A)(i), the
Administrator shall consider any small business concern that
can demonstrate it is adversely affected by a raise in the
Federal minimum wage to be economically disadvantaged.''.
Page 6, line 8, strike ``(B)'' and insert ``(C)''.
Page 6, line 13, strike ``(C)'' and insert ``(D)''.
Page 6, line 17, strike ``(D)'' and insert ``(E)''.
Ms. VELAZQUEZ. Madam Speaker, I reserve a point of order against the
motion.
The SPEAKER pro tempore. The point of order is reserved.
The gentleman from Louisiana is recognized for 5 minutes.
Mr. McCRERY. Madam Speaker, the motion to recommit that I am offering
makes an important point about how we treat small businesses, the
engine that drives much of our economy and creates many of our jobs in
this country.
The underlying bill makes permanent the Community Express Program,
which provides loans up to $250,000 to businesses which are owned by
certain favored groups such as women, minorities, veterans, or socially
or economically disadvantaged individuals. The measure does not define
what it means for a business owner to be ``economically
disadvantaged.''
This would require that the Small Business Administration would
consider as economically disadvantaged those business owners that can
demonstrate that they have been adversely impacted by an increase in
the Federal minimum wage.
The importance of this motion is clear in the face of the failure of
this House and the conferees on the supplemental appropriations bill
that will be considered later tonight to adequately provide tax relief
to those small businesses most impacted by an increase in the minimum
wage.
The agreement reached by the majority and inserted into the
supplemental does provide a larger dollar figure for relief than was
passed by the House earlier this year, but almost none of the added tax
revenues will provide relief to the small businesses most in need of
assistance because of the increase in the minimum wage.
For example, more than 53 percent of the tax relief is in the form of
a 44-month extension of the work opportunity tax credit. While
extending the work opportunity tax credit may be good policy, and I
happen to like that credit, more than 90 percent of the credits are
claimed by firms with gross receipts over $50 million, hardly small
businesses.
Other provisions, while well intentioned, will have little or no
impact on small businesses. The S-Corp reforms, which costs almost $1
billion, have no direct relation to firms impacted by the minimum wage.
I support the changes in the package to the low income housing tax
credit, but that $237 million in tax relief, again, does nothing
towards satisfying the stated purpose of helping small businesses cope
with the increase in the minimum wage.
While the work opportunity tax credit was expanded and was given a
longer extension than in the House-passed package, provisions to help
small businesses by increasing expensing were not given similar
treatment. Other depreciation changes included in the Senate-passed
bill that could have helped small businesses were completely left out
of the conference agreement. In fact, barely $1 billion of the total
almost $5 billion package provides relief to small businesses; and
almost half of that, $457 million of it, exists solely to protect
restaurant owners from the tax increase they would otherwise face from
a minimum wage increase. Thus, only about one-eighth of the new
benefits are targeted at small businesses.
That minimal relief for small businesses looks even smaller when
compared against the Congressional Budget Office's estimate that the
increase in the minimum wage will impose more than $16 billion in costs
on the private sector over the next 5 years.
It should come as no surprise to anyone to learn that the National
Federation of Independent Business, a small business association,
released a statement today criticizing Congress for failing to deliver
meaningful tax relief to the American small business community in the
face of a mandated Federal minimum wage hike.
I submit for printing in the Record the entire statement of NFIB.
Tax Package Tied to Minimum Wage Hike Fails To Deliver Relief for Small
Business
NFIB disappointed in diminished small-business tax relief in the
federal supplemental spending bill
Washington, D.C., April 25, 2007--Dan Danner, executive
vice president of the National Federation of Independent
Business, today made the following statement in reaction to
the reduced small-business tax-relief package contained in
the federal minimum wage increase legislation, now attached
to the Iraq spending bill.
It's truly disheartening that during National Small
Business Week Congress has decided to renege on their promise
to deliver meaningful tax relief to the American small-
business community in the face of a mandated federal minimum
wage hike.
While small businesses appreciate the increased and
extended expensing limit, the tax package as a whole simply
does not offer enough growth-oriented tax relief to allow
small businesses to invest and stay competitive. NFIB is
disappointed to see that the reduced tax package falls short
of truly offsetting the costs small businesses will be forced
to absorb as a result of a minimum wage increase.
Small-business owners have always opposed mandated wage
levels because it leaves them with fewer choices in how they
compensate their employees. But in the face of an inevitable
wage hike, the small-business community was pleased to hear
that Congress was planning to offer a tax package aimed at
helping small businesses cope with additional labor costs.
From the beginning of this debate, the accompanying tax
package was supposed to be about helping the country's small
businesses. Instead, Congress has spent more time catering to
big business demands than providing real tax relief to those
who need it most--American small-business owners.
As this debate continues, NFIB will continue its efforts to
educate members of Congress about why small businesses need
and deserve meaningful tax relief.
Last week my friend, the distinguished chairman of the Ways and Means
Committee, indicated that the tax package on the supplemental was the
final deal. I suppose he meant the final deal on taxes associated with
the minimum wage increase. And I guess he meant that, even if the
supplemental is vetoed, that we don't go back to square one, that there
will still be no renegotiation of the tax package. That is unfortunate,
and that is what brings us here today.
The majority has said it is unwilling to reconsider ways to ensure
that we provide tax relief to the businesses most in need and to
examine the shortcomings of the tax package. Thus, we must find other
ways to help small businesses continue to be the engines of job
creation in our economy. By making small businesses adversely affected
by a minimum wage increase eligible for the community express program,
Madam Speaker, we are offering the House an opportunity, a chance, to
make good on the promise to help those businesses impacted by an
increase of the minimum wage.
Madam Speaker, I urge passage of the motion.
{time} 1730
Madam Speaker, I yield back the balance of my time.
[[Page H4119]]
Ms. VELAZQUEZ. Madam Speaker, I withdraw my point of order against
the motion, and I rise in opposition to the motion to recommit.
The SPEAKER pro tempore. The gentlewoman from New York is recognized
for 5 minutes.
Ms. VELAZQUEZ. Madam Speaker, it amazes me if the gentleman from
Louisiana is so concerned about the state of small businesses in our
country, why is it that every time that I brought an amendment to any
bill to reduce the cost of the 7(a) business loan program, you voted
against that bill, against those amendments? That is the way we provide
relief to small businesses.
The problem with the gentleman from Louisiana is that he doesn't
believe that the minimum wage should be raised, and that 10 years is
not long enough. So by supporting this motion to recommit, you are
voting against providing relief to small businesses.
What we are doing with this bill is reducing up to $50,000 in fees to
borrowers in this country. That is real relief.
So I urge my colleagues to vote against this motion, and to support
the underlying bill.
Madam Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. Without objection, the previous question is
ordered on the motion to recommit.
There was no objection.
The SPEAKER pro tempore. The question is on the motion to recommit.
The question was taken; and the Speaker pro tempore announced that
the noes appeared to have it.
Mr. McCRERY. Madam Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 9 of rule XX, the Chair
will reduce to 5 minutes the minimum time for any electronic vote on
the question of passage.
The vote was taken by electronic device, and there were--yeas 197,
nays 224, not voting 11, as follows:
[Roll No. 262]
YEAS--197
Aderholt
Akin
Alexander
Bachmann
Bachus
Baker
Barrett (SC)
Barton (TX)
Biggert
Bilbray
Bilirakis
Bishop (UT)
Blackburn
Blunt
Boehner
Bonner
Bono
Boozman
Boustany
Brady (TX)
Brown (SC)
Brown-Waite, Ginny
Buchanan
Burgess
Burton (IN)
Buyer
Calvert
Camp (MI)
Campbell (CA)
Cannon
Cantor
Capito
Carney
Carter
Castle
Chabot
Coble
Cole (OK)
Conaway
Crenshaw
Culberson
Davis (KY)
Davis, David
Davis, Tom
Deal (GA)
Dent
Diaz-Balart, L.
Diaz-Balart, M.
Doolittle
Drake
Dreier
Duncan
Ehlers
Emerson
English (PA)
Everett
Fallin
Feeney
Ferguson
Flake
Forbes
Fortenberry
Fossella
Foxx
Franks (AZ)
Frelinghuysen
Gallegly
Garrett (NJ)
Gerlach
Gilchrest
Gillmor
Gingrey
Gohmert
Goode
Goodlatte
Granger
Graves
Hall (TX)
Hastert
Hastings (WA)
Hayes
Heller
Hensarling
Herger
Hobson
Hoekstra
Hulshof
Inglis (SC)
Issa
Jindal
Johnson (IL)
Johnson, Sam
Jones (NC)
Jordan
Keller
King (IA)
King (NY)
Kingston
Kirk
Kline (MN)
Knollenberg
Kuhl (NY)
LaHood
Lamborn
Latham
LaTourette
Lewis (CA)
Lewis (KY)
Linder
LoBiondo
Lucas
Lungren, Daniel E.
Mack
Manzullo
Marchant
McCarthy (CA)
McCaul (TX)
McCotter
McCrery
McHenry
McHugh
McKeon
McMorris Rodgers
Mica
Miller (FL)
Miller (MI)
Miller, Gary
Moran (KS)
Murphy, Tim
Musgrave
Myrick
Neugebauer
Nunes
Paul
Pearce
Pence
Peterson (PA)
Petri
Pickering
Pitts
Platts
Poe
Porter
Price (GA)
Pryce (OH)
Putnam
Radanovich
Ramstad
Regula
Rehberg
Reichert
Renzi
Reynolds
Rogers (AL)
Rogers (KY)
Rogers (MI)
Rohrabacher
Ros-Lehtinen
Roskam
Royce
Ryan (WI)
Sali
Saxton
Schmidt
Sensenbrenner
Sessions
Shadegg
Shays
Shimkus
Shuster
Simpson
Smith (NE)
Smith (NJ)
Smith (TX)
Souder
Space
Stearns
Sullivan
Tancredo
Terry
Thornberry
Tiahrt
Tiberi
Turner
Upton
Walberg
Walden (OR)
Walsh (NY)
Wamp
Weldon (FL)
Weller
Wicker
Wilson (NM)
Wilson (SC)
Wolf
Young (AK)
Young (FL)
NAYS--224
Abercrombie
Ackerman
Allen
Altmire
Andrews
Arcuri
Baca
Baird
Baldwin
Barrow
Bean
Becerra
Berkley
Berman
Berry
Bishop (NY)
Blumenauer
Boren
Boswell
Boucher
Boyda (KS)
Brady (PA)
Braley (IA)
Brown, Corrine
Butterfield
Capps
Capuano
Cardoza
Carnahan
Carson
Castor
Chandler
Clarke
Clay
Cleaver
Clyburn
Cohen
Conyers
Cooper
Costa
Costello
Courtney
Cramer
Crowley
Cuellar
Cummings
Davis (AL)
Davis (CA)
Davis (IL)
Davis, Lincoln
DeFazio
DeGette
Delahunt
DeLauro
Dicks
Dingell
Doggett
Donnelly
Doyle
Edwards
Ellison
Ellsworth
Emanuel
Engel
Eshoo
Etheridge
Farr
Fattah
Filner
Frank (MA)
Giffords
Gillibrand
Gonzalez
Gordon
Green, Al
Green, Gene
Grijalva
Gutierrez
Hall (NY)
Hare
Harman
Hastings (FL)
Herseth Sandlin
Higgins
Hill
Hinchey
Hinojosa
Hirono
Hodes
Holden
Holt
Honda
Hooley
Hoyer
Inslee
Israel
Jackson (IL)
Jackson-Lee (TX)
Jefferson
Johnson (GA)
Johnson, E. B.
Jones (OH)
Kagen
Kanjorski
Kennedy
Kildee
Kilpatrick
Kind
Klein (FL)
Kucinich
Langevin
Lantos
Larsen (WA)
Larson (CT)
Lee
Levin
Lewis (GA)
Lipinski
Loebsack
Lofgren, Zoe
Lowey
Lynch
Mahoney (FL)
Maloney (NY)
Markey
Marshall
Matheson
Matsui
McCarthy (NY)
McCollum (MN)
McDermott
McGovern
McNerney
McNulty
Meehan
Meek (FL)
Meeks (NY)
Melancon
Michaud
Miller (NC)
Miller, George
Mitchell
Mollohan
Moore (KS)
Moore (WI)
Moran (VA)
Murphy (CT)
Murphy, Patrick
Murtha
Nadler
Napolitano
Neal (MA)
Oberstar
Obey
Olver
Ortiz
Pallone
Pascrell
Pastor
Payne
Perlmutter
Peterson (MN)
Pomeroy
Price (NC)
Rahall
Rangel
Reyes
Rodriguez
Ross
Rothman
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Salazar
Sanchez, Linda T.
Sanchez, Loretta
Sarbanes
Schakowsky
Schiff
Schwartz
Scott (GA)
Scott (VA)
Serrano
Sestak
Shea-Porter
Sherman
Shuler
Sires
Skelton
Slaughter
Smith (WA)
Snyder
Solis
Spratt
Stark
Stupak
Sutton
Tanner
Tauscher
Taylor
Thompson (CA)
Thompson (MS)
Tierney
Towns
Udall (CO)
Udall (NM)
Van Hollen
Velazquez
Visclosky
Walz (MN)
Wasserman Schultz
Waters
Watson
Watt
Waxman
Weiner
Welch (VT)
Wexler
Wilson (OH)
Woolsey
Wu
Wynn
Yarmuth
NOT VOTING--11
Bartlett (MD)
Bishop (GA)
Boyd (FL)
Cubin
Davis, Jo Ann
Hunter
Kaptur
Lampson
McIntyre
Westmoreland
Whitfield
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore (during the vote). Members are advised there
are 2 minutes remaining to vote.
{time} 1755
Mr. MURPHY of Connecticut, Mr. KAGEN, Ms. DeLAURO, Mr. McNERNEY, Ms.
McCOLLUM of Minnesota, Mrs. GILLIBRAND, Messrs. HOYER, ALTMIRE, HILL,
and SCOTT of Virginia changed their vote from ``yea'' to ``nay.''
Mr. MORAN of Kansas and Mr. PICKERING changed their vote from ``nay''
to ``yea.''
So the motion was rejected.
The result of the vote was announced as above recorded.
Stated against:
Mr. BOYD of Florida. Madam Speaker, on rollcall No. 262, had I been
present, I would have voted ``nay.''
____________________