[Congressional Record Volume 155, Number 197 (Monday, December 21, 2009)]
[Senate]
[Page S13699]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SPECTER:
  S. 2918. A bill to make improvements to certain loan programs under 
the Small Business Act and the Small Business Investment Act of 1958, 
and for other purposes; to the Committee on Banking, Housing, and Urban 
Affairs.
  Mr. SPECTER. Mr. President, I have sought recognition to introduce 
the Helping Small Business Succeed Act of 2009. My legislation will 
make it easier for small businesses to access credit, credit which they 
desperately need to be able to cover their costs, grow their 
businesses, and create jobs.
  Small businesses are the engine of economic growth in this country, 
responsible for 60 percent of new jobs created. The Commonwealth of 
Pennsylvania alone has 978,831 small businesses, which bring economic 
opportunities to diverse groups of people, innovate new technologies, 
and provide valuable services to their communities. Of these small 
businesses, 236,775 are small employers who represent 98.4 percent of 
Pennsylvania's employers and 49.9 percent of its private-sector 
employment. It is not an understatement to say that small businesses 
and their ability to grow are vital to the health of Pennsylvania and 
of the Nation.
  Earlier this month, the Labor Department released jobs figures 
indicating that unemployment has dropped from 10.2 percent in October 
to 10 percent in November, and that the economy shed only 11,000 jobs, 
which was well below analysts' expectations. While these numbers are 
encouraging, leading economists such as Joseph Stiglitz have stated 
that recovery will be slow unless we continue to take strong measures.
  When I voted for the stimulus, we were facing a recession that could 
well have developed into a full-fledged depression like we faced in 
1929. The stimulus provided $630 million to the Small Business 
Administration, SBA, to guarantee private sector loans to small 
businesses, which allowed the SBA to raise its loan caps, and increased 
SBA guarantees from 75-80 percent to 90 percent in its two major 
business loan programs. These provisions have proven effective in 
providing credit to small business, but more needs to be done. My 
legislation permanently increases the loan limit from $2 million to $5 
million on 7(a) loans, from $1.5 million to $5.5 million on 504 loans, 
and from $35,000 to $50,000 on microloans.
  Simply raising loan limits is not enough, however. Raising the SBA's 
guarantee will increase commercial lenders' willingness to provide 
loans because it reduces the risk undertaken by lenders. My legislation 
raises the maximum loan guarantee percentage to 97.5 percent, which 
will quickly and efficiently incentivize the existing network of 
financial institutions to make affordable loans to small business. 
Additionally, my legislation extends the waivers for the 7(a) borrower 
fees and the 504 borrower and bank fees, which were enacted as part of 
the stimulus package, until 2011.
  Finally, my legislation authorizes the SBA to declare certain 
communities ``economic disaster areas'' and to provide further 
assistance to small businesses within these areas. The economic 
situation in many towns across America has risen to emergency levels. 
Unemployment in some counties in Pennsylvania has risen as high as 12 
and 14 percent. My legislation will provide the SBA with greater 
flexibility to use its funds to target areas of the country where the 
level of unemployment exceeds the national level and where small 
businesses have been hit the hardest.
  According to the October 2009 Special Inspector General Report to 
Congress, taxpayers have seen $73 billion in TARP funds returned so far 
with a 10 percent return on their investment. As of September 30, 2009, 
$9.5 billion in interest, dividends, and other income has had been 
received by the federal government. My legislation uses this revenue, 
derived from investments made through TARP, to pay for these urgently 
needed adjustments.
  Small businesses need access to credit and they need it now more than 
ever, if they are to weather current economic conditions. I look 
forward to working with my colleagues to provide further assistance to 
the small business community and to help restore their ability to 
create jobs and stimulate our economy.
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