[Congressional Record Volume 156, Number 91 (Thursday, June 17, 2010)]
[Extensions of Remarks]
[Page E1133]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               SMALL BUSINESS JOBS AND CREDIT ACT OF 2010

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                               speech of

                       HON. ENI F.H. FALEOMAVAEGA

                           of american samoa

                    in the house of representatives

                        Wednesday, June 16, 2010

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (H.R. 5297) to 
     create the Small Business Lending Fund Program to direct the 
     Secretary of the Treasury to make capital investments in 
     eligible institutions in order to increase the availability 
     of credit for small businesses, and for other purposes:

  Mr. FALEOMAVAEGA. Mr. Chair, I rise today in strong support of H.R. 
5297, the Small Business Lending Fund Act of 2010. First I want to 
thank President Barack Obama for his foresight and recognizing the 
crucial function small businesses serve in our economy. I also want to 
thank Speaker Nancy Pelosi and the Chairman of the House Financial 
Service Committee, Mr. Barney Frank, for their leadership on this 
issue. This piece of legislation embodies a certain commitment to 
increase access to capital investments by a vital sector of the 
economy.
  As a major source of employment, increasing lending to small 
businesses is essential to achieve full economic recovery. Data shows 
that small businesses created about two out of every three new jobs 
across the country and I am pleased that small businesses in the 
Territories are eligible for the Federal programs created under H.R. 
5297.
  Under Title I of H.R. 5297, the Secretary of the Treasury is 
authorized to establish a $30 billion Small Business Lending Fund 
(fund) to make capital investments in eligible banks. Eligibility is 
limited to community banks with total assets equal or less than $10 
billion and according to the Federal Deposit Insurance Corporation 
(FDIC) call report data for banks in American Samoa, ANZ Amerika Samoa 
Bank (AS Bank), with $132.884 million in total assets is a potential 
candidate.
  Based on criteria specified in the legislation, the AS Bank is 
eligible to receive up to 5 percent of its risk-weighted assets, or 
about $5 million. Instead of the 7 percent London Interbank Offered 
Rate (LIBOR), AS Bank will pay a lesser rate of 5 percent, to be 
reduced further to 1 percent if AS Bank increases its small business 
lending by 10 percent or more.
  In addition, under Title II of H.R. 5297, the American Samoa 
Government (ASG) is eligible to apply for a grant of no less than $18 
million to create a capital access program for small businesses in the 
Territory. As part of the grant application, ASG is to submit a 
proposal to the U.S. Treasury for approval that includes designs of a 
loan program and also designate a local agency to administer the 
program.
  Mr. Speaker, as our economy continues to slump under the strains of 
unemployment and the loss of revenue, this piece of legislation will 
provide much-needed capital investments to increase lines of credit 
available to small businesses across the country.
  I am pleased that the Federal programs will inject critical capital 
into the economy for small businesses to capitalize on. This 
legislation will go a long way to open up the flow of credit for small 
businesses that will help create more jobs not only across the country 
but also in the territories.
  I urge my colleagues to pass H.R. 5297.

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