[Congressional Record Volume 155, Number 130 (Tuesday, September 15, 2009)]
[House]
[Pages H9527-H9529]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             SIG TARP SMALL BUSINESS AWARENESS ACT OF 2009

  Mr. MOORE of Kansas. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 3179), to amend the Emergency Economic 
Stabilization Act of 2008 to require the Special Inspector

[[Page H9528]]

General for the Troubled Asset Relief Program to include the effect of 
the Troubled Asset Relief Program on small businesses in the oversight, 
audits, and reports provided by the Special Inspector General, and for 
other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 3179

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as ``SIG TARP Small Business 
     Awareness Act of 2009''.

     SEC. 2. FINDINGS.

       The Congress finds as follows:
       (1) Small businesses are going to be the driving force 
     behind revitalizing our economy.
       (2) Small financial institutions are a primary financial 
     resource for small businesses.
       (3) In a hearing of the Committee on Financial Services of 
     the House of Representatives, witnesses testified that 
     smaller financial institutions are having difficulty 
     receiving funds from the Troubled Asset Relief Program.
       (4) In a hearing of the Committee on Financial Services of 
     the House of Representatives, witnesses also testified that 
     small businesses are having trouble receiving credit and 
     financial products from banks and other financial 
     institutions.

     SEC. 3. DUTIES OF THE SPECIAL INSPECTOR GENERAL FOR THE 
                   TROUBLED ASSET RELIEF PROGRAM RELATING TO SMALL 
                   FINANCIAL INSTITUTIONS AND BUSINESSES.

       (a) In General.--Section 121(c) of the Emergency Economic 
     Stabilization Act of 2008 (12 U.S.C. 5231(c)) is amended by 
     adding at the end the following new paragraph:
       ``(5) Effects of program on small financial institutions 
     and small businesses.--
       ``(A) Small financial institutions.--In conducting audits 
     and providing oversight of the Troubled Asset Relief Program 
     in accordance with this section, the Special Inspector 
     General shall examine how smaller financial institutions are 
     being affected by--
       ``(i) expenditures under the Program (including the 
     adequacy of financial assistance provided to or on behalf of 
     such smaller financial institutions); and
       ``(ii) the considerations and determinations of--

       ``(I) the Secretary under this title; and
       ``(II) the regulators of such smaller financial 
     institutions, with respect to capital adequacy and troubled 
     assets.

       ``(B) Small businesses.--In conducting audits and providing 
     oversight of the Troubled Asset Relief Program, the Special 
     Inspector General shall examine the effects the provision of 
     financial assistance under this title has had on small 
     businesses, including both positive and negative effects and 
     the extent of such effects on small businesses generally and 
     by type and region.
       ``(C) Reports.--Any report prepared by the Special 
     Inspector General under this section shall include the 
     results of the activities of the Special Inspector General 
     under paragraphs (1) and (2).''.
       (b) Report on Inclusion and Utilization of Women and 
     Minorities.--Section 121(i) of the Emergency Economic 
     Stabilization Act of 2008 (12 U.S.C. 5231(i)) is amended by 
     adding at the end the following new paragraph:
       ``(6) Report on inclusion and utilization of women and 
     minorities.--
       ``(A) In general.--The Special Inspector General shall 
     include in each quarterly report to the Congress under 
     paragraph (1) information on the activities of the Secretary 
     and any financial institutions receiving financial assistance 
     under this title to include and utilize minorities (as such 
     term is defined in section 1204(c) of the Financial 
     Institutions Reform, Recovery, and Enforcement Act of 1989 
     (12 U.S.C. 1811 note)) and women, and minority- and women-
     owned businesses (as such terms are defined in section 
     21A(r)(4) of the Federal Home Loan Bank Act), in any 
     solicitation or contract, including any contract to asset 
     managers, servicers, property managers, and other service 
     providers or expert consultants.
       ``(B) Information to be included.--The quarterly report 
     shall include information on the levels of inclusion and 
     utilization of women, minorities, and women- and minority-
     owned businesses, including the type of such contracts or 
     solicitations, the dollar amount of such contracts or 
     solicitations, the total number of such contracts or 
     solicitations, and any other information on the activities of 
     the Secretary and any financial institutions receiving 
     financial assistance under this title to increase the 
     participation of women, minorities, and women- and minority-
     owned businesses including recommendations related to 
     increasing such participation.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Kansas (Mr. Moore) and the gentleman from Minnesota (Mr. Paulsen) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Kansas.


                             General Leave

  Mr. MOORE of Kansas. Mr. Speaker, I ask unanimous consent that all 
Members have 5 legislative days within which to revise and extend their 
remarks on this legislation and to insert extraneous material thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Kansas?
  There was no objection.
  Mr. MOORE of Kansas. I yield myself as much time as I may consume.
  Mr. Speaker, I rise today in support of H.R. 3179, the SIG TARP Small 
Business Awareness Act of 2009, drafted by my colleague from Minnesota, 
Congressman Erik Paulsen. I commend his work on this important 
legislation.
  This bill was originally offered as an amendment by Congressman 
Paulsen to S. 383, the Special Inspector General for the Troubled Asset 
Relief Program Act, that was approved by the House on April 25, 2009, 
by a vote of 423-0, and was later signed into law.
  During the markup, I commended Congressman Paulsen for offering his 
amendment, and I supported the substance of the amendment; but to get 
S. 383 quickly to the President's desk to equip the SIG TARP with the 
resources and with the authority he desperately needed, we did not add 
the amendment to the bill. I am glad Congressman Paulsen has offered 
this proposal again as a standalone bill so that the SIG TARP can 
closely monitor how TARP has affected small businesses and can report 
back to Congress.
  I urge my colleagues to support H.R. 3179.
  I reserve the balance of my time.
  Mr. PAULSEN. I yield myself as much time as I may consume.
  Mr. Speaker, I first want to thank Mr. Moore, the leader of the 
subcommittee, for his leadership on this issue as well and on the 
subcommittee in general.
  The legislation before us requires that the Special Inspector General 
report to Congress on how smaller financial institutions are faring 
under the TARP program and whether they are gaining access to needed 
funding. It would also require the Special Inspector General to examine 
the impact of TARP funding on small businesses.
  During the August recess, I met with community bankers throughout my 
district. They outlined their desire to increase their lending to local 
small businesses that have been frozen out by the credit crunch. 
Similarly, I met with dozens of small business owners who expressed 
concerns over access to credit and to capital, key components of their 
ability to create jobs.
  This problem was echoed in a recent article in the Minneapolis Star 
Tribune. The article outlined the problems that smaller financial 
institutions are having in trying to obtain TARP funds. They were 
primarily local banks that wanted to obtain TARP funds, but they had 
not received them or had not been given permission to receive them.
  Mr. Speaker, in hearings held by the Financial Services Committee, we 
heard concerns that the large institutions may not be increasing their 
lending and that it was going to be the smaller institutions that would 
ultimately help revitalize our economy. The problem is the small 
businesses are not receiving the funds they need to help maintain and 
to grow their businesses. The reason is simply that those funds are not 
available.
  When I asked about the assistance the community bankers, in 
particular, are getting from TARP, the representatives from the 
community banks responded by saying, All community banks have lost the 
trust of the Federal Government's ability to negotiate with them.
  Now, Mr. Speaker, that concerns me especially if we are looking to 
get out of the financial and economic mess that we are facing. 
Community banks make the bulk of their loans to small businesses, and 
it's the small businesses that have created two of every three net new 
jobs in the United States since the early 1970s. We need to expand 
lending so we can create jobs and can grow our economy. The 
government's ``too big to fail'' approach, which has been the guiding 
principle for a long time in Washington, also implies ``too small to 
save.''
  This premise is shortsighted; it's inaccurate and it's unfair to 
smaller institutions and to small businesses. By requiring the Special 
Inspector General to also examine now and to report the impact on 
smaller financial institutions as well as on small businesses, this 
will result in recommendations to both the U.S. Treasury and to 
Congress on how to improve the TARP program

[[Page H9529]]

so we can focus on job growth. Above all else, job growth needs to be 
our number one priority for each of us in Congress.
  I ask for support, and I urge passage of H.R. 3179.
  I reserve the balance of my time.
  Mr. MOORE of Kansas. Mr. Speaker, I wanted to also raise a point that 
Congressman Watt had raised in the committee markup in which 
Congressman Paulsen's proposal was debated.
  Congressman Watt offered an amendment that was accepted by voice vote 
to make sure that, in addition to small businesses, the SIG TARP should 
review how TARP has affected minority- and women-owned businesses. This 
is a good idea, and we should make sure TARP is being administered 
fairly and equally across the board.
  I appreciate Congressman Paulsen for working on a bipartisan basis to 
address this concern and for revising his bill to include it.
  I reserve the balance of my time.
  Mr. PAULSEN. Mr. Speaker, just to follow up again, I want to thank 
Mr. Moore for his leadership on the subcommittee.
  I want everyone to know that, with the country's current financial 
state, now more than ever we do need to help our Nation's job creators 
and small businesses.
  With that, I would urge passage of H.R. 3179.
  I yield back the balance of my time.
  Mr. MOORE of Kansas. Mr. Speaker, I urge my colleagues to support 
H.R. 3179, and I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Kansas (Mr. Moore) that the House suspend the rules and 
pass the bill, H.R. 3179, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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