[Congressional Record Volume 156, Number 81 (Wednesday, May 26, 2010)]
[House]
[Pages H3842-H3843]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
NATIONAL SMALL BUSINESS WEEK
The SPEAKER pro tempore. Under a previous order of the House, the
gentlewoman from Illinois (Ms. Bean) is recognized for 5 minutes.
Ms. BEAN. Mr. Speaker, I rise this evening to recognize National
Small
[[Page H3843]]
Business Week. This year marks the 47th annual Small Business Week,
during which we honor the immense contributions of entrepreneurs, their
companies, and their workforce to our country.
Our Nation's economic rebirth relies on the ability of our community
businesses to innovate, develop, and market solutions that deliver
measurable value to their clients. Their growth and success creates up
to 80 percent of new jobs in our Nation, including 25,000 already this
month.
As a former business owner, I recognize today's many challenges,
including getting access to capital, lowering energy costs, funding
R&D, workforce training, and improving efficiencies.
When I host Small Business Federal Resource Seminars in my district,
I encourage community businesses to connect with Federal agencies whose
resources and programs could be useful to their operations, including--
I have the SBA come out and share information with our businesses about
504 and 7(a) and Express loan programs. We also talk about small
business development tools from the SBDCs.
The IRS is available to provide information about small business tax
incentives, which include 179 expense provisions and bonus
depreciation, the NOL carryback that has already refunded $2.6 billion
to small businesses that had been in the stimulus, so that as they had
been profitable in previous years, they can get those dollars back at a
time they need to cover payroll and operating expenses. There are also
tax credits for health care, which the IRS elaborates on as well.
The Commerce Department talks about export programs, and the
Department of Energy talks about Webinars and grants, tools, and
incentives for energy development and energy efficiencies.
Small firms are the engine of our U.S. innovation and
competitiveness, producing 13 times more patents for employees than
those in larger firms. And they support our communities. In addition to
goods, jobs, and services, small firms invest in local real estate.
Their suppliers grow as they grow, and they contribute to charities and
provide leadership and mentoring services to their neighbors.
To help small firms weather the recession and access the capital that
is critical to their growth, Congress and the SBA have stepped up. The
Recovery Act included $288 billion worth of tax cuts, not just to 95
percent of working Americans, our consumers, but business incentives as
well, including bonus depreciation, 179 expensing, the NOL carryback,
and capital gains exclusions for small business stock. The first-time
home buyer tax credit helped bring 700,000 new buyers back into the
market.
This broad-based stimulus went further with infrastructure investment
in roads, bridges, energy, and water projects, and included investments
in education, smart grid technology, and health IT.
We have seen a positive return. GDP growth has gone from negative 6
to positive 6 since the stimulus, and U.S. manufacturing is now growing
at its fastest pace since 2006. While these signs of recovery are
encouraging, more needs to be done.
Creditworthy businesses need to have access to working capital, and
many need to restructure their debt in the months and years ahead. When
businesses can't access financing, they delay contracts, hiring,
equipment purchases, and other expansions.
The Recovery Act provided higher guarantees and reduced fees on SBA
7(a) and 504 loans. Since its passage SBA has driven over $27 billion
in small business loans into the hands of our community businesses, yet
many are still struggling to access affordable capital. Banks are
operating under tightened lending standards and have greater risk
aversion and greater exposure to the instability of the commercial real
estate market.
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Their strained balance sheets make it difficult to continue extending
credit, where appropriate, to small businesses.
The experience of the Recovery Act has shown that the SBA guarantee
can make a difference for an entrepreneur in need of capital. When it
comes to Congress' approach to fostering recovery, every week must be
Small Business Week.
My colleagues and I will continue to address the capital access gap
with measures we move forward in the weeks ahead. Congresswoman
Dahlkemper and I have a bipartisan measure to increase the maximum loan
size and guarantee on the SBA express loan, a critical tool that
provides working capital so firms can restock inventory and make new
hires.
Today I introduced the Small Business Asset Investment and
Modernization Act, which will enhance the SBA 504 loan program for
commercial real estate, buildings, and heavy equipment.
Businesses are facing a collateral program as their loans mature and
their equity is down in value. Many small business owners obtained
loans during the bubble, getting loans at inflated appraised values on
their property or with balloon payment structures. Banks are reluctant
to restructure debt, particularly if the borrower is equity challenged
or if the bank is capital challenged.
My bill will temporarily enable business owners to refinance their
commercial real estate debt through the 504 program, addressing an
acute near-term need in that sector. Over the next few weeks, I look
forward to advancing these and other initiatives to help our growing
businesses get the capital they need.
I urge my colleagues to join us in moving forward on further programs
to support the work ethic and entrepreneurial spirit of our small
businesses, the cornerstone of our economy.
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