[Congressional Record Volume 156, Number 94 (Tuesday, June 22, 2010)]
[Extensions of Remarks]
[Page E1153]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               SMALL BUSINESS JOBS AND CREDIT ACT OF 2010

                                 ______
                                 

                               speech of

                          HON. JOHN D. DINGELL

                              of michigan

                    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. DINGELL. Mr. Chair, I rise in support of H.R. 5297, the Small 
Business Jobs and Credit Act. I want to thank the Chairmen of the 
Financial Services and Small Business Committees, Representatives 
Barney Frank, D-MA, and Nydia Velazquez, D-NY, respectively, for their 
leadership in bringing to bear this jobs-creating measure and 
Congressman Gary Peters, D-MI, for providing critical guidance for 
Michigan on the bill as it moved forward.
  Today, we are, voting on legislation that will encourage lending to 
small businesses and in-turn job creation. First, H.R. 5297 sets up a 
$30 billion small business lending fund for small- and medium-sized 
community banks, which could leverage up to $300 billion in lending. 
The fund encourages small business lending by decreasing the interest 
rate at which the loan is paid back when the bank expands lending to 
small businesses. Second, the bill creates a State Small Business 
Credit Initiative to be administered by the Treasury Department which 
would provide funding for new or existing state lending programs. It is 
estimated the new Credit Initiative would create an estimated $20 
billion in new lending. Finally, H.R. 5297 contains a provision to 
restart private investment to meet small businesses' evolving financing 
needs through a new SBA public-private partnership.
  While the Democratic Congress blunted the downward spiral of our 
economy that was born out of Bush administration policy, our 
unemployment rate still hovers around 9.5 percent nationwide and around 
14 percent in Michigan. It is clear that we can and must do more to 
ensure our government continues to put the economy on the path to 
recovery. In particular, small businesses must have access to capital 
so they can expand and hire workers. In the beginning of this month at 
a Federal Reserve Bank meeting in Detroit, Fed Chairman Ben Bernanke 
highlighted this need as he called on banks to lend to small businesses 
``for the safety and soundness of our banking system.'' This 
legislation fulfills the need articulated not only by Mr. Bernanke and 
other leading economists, but by small businesses in the 15th district 
such as our automotive suppliers and manufacturers, high tech start 
ups, and innovative alternative energy firms. I have listened to the 
concerns of small businesses in my district about the lack of available 
credit and with the passage of this bill we are taking action to 
address their concerns.
  The statistic has been cited many times before, but it is worth 
remembering that small businesses have created two-thirds of net new 
jobs over the past 15 years. Let's help our small businesses help grow 
our economy by passing this important legislation. I urge my colleagues 
to join me in voting ``yes'' on H.R. 5297.

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