[Congressional Record Volume 155, Number 46 (Tuesday, March 17, 2009)]
[House]
[Pages H3468-H3469]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                SMALL BUSINESS ADMINISTRATION EXTENSION

  Ms. VELAZQUEZ. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 1541) to provide for an additional temporary extension of 
programs under the Small Business Act and the Small Business Investment 
Act of 1958, and for other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 1541

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. EXTENSION.

       (a) In General.--Section 1 of the Act entitled ``An Act to 
     extend temporarily certain authorities of the Small Business 
     Administration'', approved October 10, 2006 (Public Law 109-
     316; 120 Stat. 1742), as most recently amended by section 1 
     of Public Law 110-235 (122 Stat. 1552), is amended by 
     striking ``March 20, 2009'' in each place it appears and 
     inserting ``July 31, 2009''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on March 19, 2009.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
New York (Ms. Velazquez) and the gentleman from Missouri (Mr. Graves) 
each will control 20 minutes.
  The Chair recognizes the gentlewoman from New York.


                             General Leave

  Ms. VELAZQUEZ. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days to revise and extend their remarks and 
include extraneous material on the bill under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from New York?
  There was no objection.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I might 
consume.
  As our Nation responds to the current economic downturn, small 
businesses will be central to our recovery. They are the engine of our 
economy, producing 60 to 80 percent of new jobs, and their role is even 
more important during recessions.
  The fact is, when the job market is tight, many Americans venture 
out, launch their own enterprises. Following the recession of the early 
1990s, small firms generated 3.8 million new positions for American 
workers, a number that surpassed big business expansion by almost half 
a million.
  That kind of resilience, in the face of economic uncertainty, is a 
testament to the strength of our Nation. Times may be tough, but the 
American entrepreneurial spirit is tougher. Today, the House is 
considering legislation that will extend programs at the Small Business 
Administration into July.
  These programs play a pivotal role in our economy. The SBA guarantees 
loans that allow new ventures to start and existing firms to grow. It 
provides counseling and technical know-how to entrepreneurs, and it 
helps ensure that small firms can obtain their fair share of Federal 
contracts, something that will be more important as the Economic 
Recovery Act generates $111 billion worth of new public works projects.
  Extending these programs is important, but we must not lose sight of 
a larger goal. Later this Congress we will pass legislation to 
modernize the SBA and change the agency's culture. In these difficult 
economic times, we will need an SBA that can respond effectively. This 
will require extensive reforms.
  Already in this Congress we passed the most significant update to the 
agency in a decade. With the economic recovery legislation, we made SBA 
bank loans more affordable for entrepreneurs. We increased the amount 
of a loan that the SBA can back, further opening up affordable credit 
for small business owners.
  We established a new Small Business Stabilization Financing Program 
at the SBA, which will provide short-term loans to businesses 
struggling to meet their existing obligations. We gave the SBA tools it 
needs to begin unfreezing the secondary market for small business 
loans.

                              {time}  1430

  By reforming and updating the Small Business Investment Company 
program, we help channel new venture capital to small firms.
  Taken together, all of these initiatives will yield $21 billion in 
new investment and lending for small businesses and save or create 
600,000 new jobs.
  Earlier this week, President Obama moved to implement many of these 
changes. I applaud the administration for working quickly. However, 
this is just the start.
  Later this year, the committee will draft a comprehensive rewrite of 
the SBA. If there has ever been a time for a strong, effective SBA, 
that time is now. It will be the responsibility of every Member in this 
House to make sure that we reauthorize these programs properly so the 
SBA can help Main Street businesses weather this recession and 
contribute to our economy.
  The extension we are voting on today will give us the time to hear 
from all our colleagues and interested parties as we develop this 
legislation. I urge my colleagues to vote ``yes.''
  I reserve the balance of my time.
  Mr. GRAVES. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise today in support of the chairwoman's request to 
suspend the rules and pass H.R. 1541. The bill is very simple. It 
extends the authorization of all programs operated or authorized by the 
Small Business Act, the Small Business Investment Act, and any program 
by the Small Business Administration for which Congress has already 
appropriated funds. The extension will last until July 31 of this year.
  This extension is necessary because the authorization for various 
programs operated by the SBA ceases on March 20. The Committee has 
worked in a bipartisan fashion in the last Congress, and we reported 
out a number of bills to address programs operated by the SBA. Despite 
the efforts of the House, time in the last Congress expired before the 
legislative process could run its course.
  The work needed to help America's entrepreneurs revitalize the 
economy simply can't be accomplished by Friday of this week.
  Without the enactment of this extension, a number of vital programs 
that the SBA operates will cease to function. Given the importance that 
small businesses play, and will continue to play in the revitalization 
of the American economy, we cannot allow the SBA authorizations to run 
out.
  Enactment of this extension will enable the House and Senate to work 
in a diligent manner to address the necessary changes to SBA programs. 
I urge all of my colleagues to suspend the rules and pass H.R. 1541.
  I reserve the balance of my time.
  VELAZQUEZ. Mr. Speaker, I yield 3 minutes to the gentleman from 
Oregon (Mr. Wu).
  Mr. WU. Thank you, Madam Chair, and thank you, Mr. Speaker. As 
President Obama said recently, ``small businesses are the heart of the 
American

[[Page H3469]]

economy.'' They are responsible for half of all private-sector jobs, 
and they've created about 70 percent of all new jobs in the past 10 
years.
  We need to build our economy from the ground up, create stable jobs, 
and foster innovation that will lead to long-term growth. To do this, 
we need to support the small high-tech companies that grow our economy.
  The Federal Government supports these innovative small businesses 
through the Small Business Innovative Research program and the Small 
Business Technology Transfer Program, which help companies 
commercialize Federally funded research. The programs now distribute 
more than $2.5 billion each year and constitute the largest tech-
transfer commercialization programs that we have in the Federal 
Government.
  However, these programs must be updated to reflect the current 
innovation environment. Award sizes should be increased to reflect 
inflation and the growth of operating costs; the issue of venture 
capital participation needs to be resolved; flexibility must be 
instilled between phase one and phase two grants; and data collection 
needs to be improved so that we can better target the program and 
determine its effectiveness.
  Last year, the House overwhelmingly passed H.R. 5819, which made 
these necessary changes based on suggestions from hearings in my 
Technology and Innovation Subcommittee and in conjunction with our work 
with Chairwoman Velazquez and Ranking Member Graves. However, good 
legislation, once again, died in the other Chamber.
  Today, we find the House needing to pass an extension to keep these 
programs alive. This extension is necessary because the SBA and SBIR 
serve important purposes. But, moving forward, if we are to continue 
realizing the full value of programs like SBIR, we must reauthorize 
them with changes that reflect the evolving innovation environment, 
rather than simply extending the current authorization. It must be an 
innovation program as well as a jobs and small business program.
  At a time when credit is tight and jobs are scarce, SBIR and STTR can 
have a significant role in jump-starting our economy. The House and 
Senate need to pass legislation this year that will reauthorize these 
programs, innovate new products and services, support small businesses, 
and create well-paying jobs for decades to come.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise in strong support of 
H.R. 1541.
  The Small Business Administration (SBA) was created in 1953, and has 
a current business loan portfolio of roughly 220,000 loans worth more 
than $50 billion, which makes it the largest single financial backer of 
U.S. businesses. My district is home to these businesses, many of which 
are struggling to hang tough in this trying economy.
  In the 110th Congress, several short-term SBA authorization measures 
were enacted; the latest was signed into law on May 23, 2008. Under 
that law, authorization for SBA programs is scheduled to expire on 
March 20. I am hopeful that President Obama continues the recognition 
and support for small businesses that he demonstrated yesterday. His 
leadership, along with that of my colleague Nydia Velazquez on these 
issues could not come at a more important time.
  Small business is frequently viewed as an incubator for employment 
and economic growth, and is a continuing legislative and oversight 
concern for Congress due to its constitutional role, through the 
interstate commerce and general welfare clauses, to promote economic 
well being and prosperity.
  While many analysts believe a very significant percentage of the 
nation's jobs are created by small businesses, others note that a great 
many small businesses fail every year thereby eliminating jobs.
  The 111th Congress is likely to consider many small business issues 
as it debates reauthorization the many Small Business Administration 
(SBA) programs that are scheduled to expire in 2009. Our small business 
owners need certainty to plan for the future and I will continue to 
work hard for a more permanent solution to complement the 
authorizations that many businesses have to endure.
  A primary issue in the reauthorization is likely to be the cost to 
the government of various small business assistance programs. The Bush 
Administration had proposed that certain loan programs be cut back or 
eliminated, that borrowers in the SBA's basic loan program be charged 
higher fees, and that interest rates for disaster loans rise to market 
levels after five years. I hope that a full review of these policies is 
underway by the new administration.
  Ways to insure that small businesses benefit from economic stimulus 
programs are likely to be considered. Finding ways for small businesses 
to provide health insurance to employees could be vital in getting 
elements of the business community to be actively supporting and 
working with Congress as we press ahead with legislation on health 
care. I understand that we in Congress cannot run your businesses for 
you. I just want to be there to help fashion fair and reasonable 
legislation that affects small business.
  Mr. Speaker, this bill authorizes Small Business Administration 
programs and authority through July 31 and again it is my hope that we 
continue to engage the business community as this Congress seeks to 
move America from recession back to prosperity.
  Mr. GRAVES. I would, again, urge my colleagues to support H.R. 1541.
  I yield back the balance of my time.
  Ms. VELAZQUEZ. Mr. Speaker, I ask for a ``yes'' vote.
  I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from New York (Ms. Velazquez) that the House suspend the 
rules and pass the bill, H.R. 1541.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

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