[Congressional Record Volume 156, Number 103 (Tuesday, July 13, 2010)]
[Senate]
[Pages S5771-S5773]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          NEED FOR BOLD ACTION

  Mr. BURRIS. Thank you, Madam President.
  For the past 2 years, this country has been held in the grip of an 
unprecedented economic crisis. The housing market collapsed, the bottom 
dropped out of Wall Street, and for the first time in generations many 
Americans felt their hard-earned economic security begin to slip away.
  Here in Washington, Members of the House and Senate were faced with a 
harsh reality: For decades, regulators and policymakers alike had 
fallen short of their responsibilities. A divisive political process 
drove them to duck the tough issues and kick the can down the road time 
and time again.
  This failure of regulation and the absence of political will allowed 
Wall Street fat cats to let their greed get the better of them. They 
gambled with our economic future. They designed complicated financial 
products and placed high-stake bets against them. In short, they built 
a house of cards, and when it finally came crashing down, the American 
economy lay in ruins.
  There can be no quick fixes after a disaster of this magnitude. But 
under President Obama's leadership, our elected leaders finally took 
the bull by the horns and did what was necessary to stop the bleeding 
and set our country back on the road to recovery. I was proud to join 
many of my colleagues in supporting the American Recovery and 
Reinvestment Act--a landmark stimulus bill that helped reverse the 
rising tide of economic misfortune. Thanks to this legislation, we have 
made some significant progress, though we still have a very long way to 
go. But this is an election year, and that means partisan bickering is 
in the air and it is on the rise. So I believe my colleagues and I have 
a decision to make: We can focus on winning the next news cycle--
pitting Republicans against Democrats, and falling into the same tired 
political battles that usually consume election years in Washington--or 
we can reach for something better. We can tune out the partisan fights, 
reject the failed policies that got us into this mess, and prove to the 
American people that we have the will to make tough decisions.
  Our recovery is far from complete. I believe if we fail to continue 
the bold policies that pulled us back from the brink of disaster, if we 
shrink away from difficult decisions that will move this recovery 
forward, then we place our economy at grave risk of slipping back into 
a recession. This is a time for bold action, not pointless ideological 
battles. This is a time to move forward, not backward.
  I call upon my colleagues to seize this opportunity. Let us keep 
America on the road to recovery, and restore the hard-earned security 
of ordinary folks who have suffered because of bad decisions on Wall 
Street. It won't be easy, but it is our responsibility, and it is the 
right thing to do.

[[Page S5772]]

  We should start by increasing our support for small businesses, 
especially those disadvantaged and minority-owned businesses. These 
companies foster progress and innovation. They have the power to create 
jobs and direct investment to local communities, where it can have the 
greatest impact. Small businesses form the backbone of our economy, but 
in many ways they have suffered the most as a result of this economic 
crisis.
  That is why I have filed an amendment that will improve and expand 
the Small Business Administration's 8(a) Program. This measure would 
increase the continued eligibility amount from the current $750,000 net 
worth to $2.5 million so more small businesses could benefit from this 
assistance.
  It is no secret that minority-owned businesses, particularly those in 
poor or urban areas, have been hit hardest by the current economic 
downturn. That is why these are the areas we should target for our 
strongest support. By expanding the existing 8(a) program, we can 
increase its economic impact without having to reinvent the wheel. We 
can rely on a proven initiative to inject new life into disadvantaged 
areas.
  I ask my colleagues to support my amendment when it comes up for a 
vote, as well as the underlying Small Business Lending Act as a whole, 
which we will be debating shortly on the floor. I ask them to reject 
the tired politics that got us into this mess and embrace the spirit of 
bipartisanship that can lead us out.
  On behalf of small and minority-owned businesses, I call upon this 
body to take action in that regard. Our economic future may be 
uncertain, but with my proposal, the Small Business Lending Act, we 
have the rare opportunity to influence that future. So let's pass these 
measures to guarantee some degree of relief for the people who continue 
to suffer the most. Let's renew our investment in America's small 
businesses and rely on them to drive our economic recovery. Let's do it 
now. We need no more rhetoric, no more politics. Let's move forward and 
help small businesses in general, minority- and women-owned businesses 
in particular.

  I yield the floor and suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. UDALL of Colorado. Mr. President, I ask unanimous consent that 
the order for the quorum call be rescinded.
  The PRESIDING OFFICER (Mr. Burris). Without objection, it is so 
ordered.
  Mr. UDALL of Colorado. Mr. President, we are working here on the 
floor of the Senate to encourage a strong economic recovery, but it 
still remains clear that too many Americans are unable to find work. We 
know small businesses are the real job engines in our economy, so I am 
particularly pleased that the Senate is right now debating a small 
business lending bill.
  I rise today because I would like to further improve the bill through 
an amendment that would take a simple step to safely increase lending 
to small businesses. We do that mainly by getting government out of the 
way so that credit unions can increase their small business loan 
portfolios.
  Today, in every single State of the United States, there are credit 
unions that have cash on their balance sheets, and they are ready to 
respond with loans for more money. There are many worthy small 
businesses in communities across our country, in Colorado and Illinois, 
that need the loans, but Federal law currently prohibits Federal credit 
unions from fully helping our entrepreneurs. Especially in this 
economy, we need to change that. We know small business expansion is 
what is going to pull us out of this recession.
  Small businesses have always been the job engine of our economy. In 
the last 15 years, small businesses have generated nearly two-thirds of 
all new jobs created in our country, and they currently employ more 
than half of all Americans.
  I traveled across Colorado this year and last year, as you have in 
your State, Mr. President. I constantly visited with scores of small 
business owners, and they continually ask me: Where is the lending? I 
thought the banks were supposed to start lending again.
  I heard this. I think every Senator in the Chamber has heard this. 
But despite remaining profitable, small businesses have been unable to 
secure the loans they need to make investments in inventory, expand, 
and ultimately hire new workers. That is why I am introducing this 
amendment to allow credit unions to ramp up their small business 
lending without costing taxpayers a single dime.
  Back in December of last year, I was joined by Senators Snowe, 
Schumer, Lieberman, Boxer, Collins, Bennet of Colorado, our Majority 
Leader Reid of Nevada, Specter, Bill Nelson, Sanders, and Gillibrand in 
introducing the Small Business Lending Enhancement Act.
  The bill would have increased lending for small business by lifting 
the arbitrary cap on credit union small business loans. Why is that a 
problem and why is that a cause of concern? Right now credit unions are 
required to limit small business lending to 12.25 percent of their 
total assets. But many credit unions have run up against that cap and 
the only thing keeping them from jump-starting their local economies is 
an outmoded law I acknowledged.
  After introducing our bill last year, we heard from scores of banks 
that were concerned about the safety and soundness of allowing credit 
unions to increase their small business loan portfolios. I realize that 
dealing with banking credit unions can be like injecting yourself 
between the Hatfields and the McCoys, but I feel so strongly about 
helping small businesses and unlocking the credit markets that I am 
willing to take some lumps in the process.
  I have gone back to the banks, listened to their concerns, and we 
went to the drawing board. I spoke to the Senate Banking Committee, 
Treasury Department, and even the credit unions' own regulator, the 
National Credit Union Administration, to see if there was something we 
could all agree on.
  That work has paid off, which is why I am proud to introduce a new 
compromise that will safely and soundly increase small business lending 
by credit unions without costing Americans a dime. Best of all, this 
legislation could lead to large-scale job creation in my home State of 
Colorado and all around our great country.
  If the Members would indulge me, I wish to explain what is in the 
compromise. In response to questions about the safety and soundness of 
allowing credit unions to expand their small business lending all at 
once, our new proposal institutes strict eligibility criteria. Under 
this amendment, the credit union must first be well capitalized. 
Second, they must have offered small business loans for at least the 
last 5 years; third, proof they have sound underwriting and strong 
historical management practices; and, fourth, it must show they have 
been running up against their previous loan cap. Credit unions that 
meet all of those strict criteria then go to the NCUA, their regulator, 
and apply to increase their small business lending. Then when they are 
approved, that cap would increase slowly from the current 12.25 percent 
to a maximum of 27.5 percent, and even that transition would be 
overseen by regulators to ensure it is done in a measured and prudent 
fashion.
  Nobody can argue that this is irresponsible. I would challenge 
anybody to tell me this is not a sound and sure-fire way to grow our 
economy by increasing credit unions' capacity to lend to small 
businesses. The Credit Union National Association estimates that these 
sensible reforms would increase small business lending by over $10 
billion a year, including--and let me talk about Colorado--an increase 
of $200 million in my home State of Colorado.
  This new access to credit is also predicted conservatively to produce 
more than 100,000 new jobs nationwide. I think everybody would agree 
this is the sort of pro-business, pro-jobs policy we need.
  The small business community, led by the National Small Business 
Association, the National Association of Realtors, and even chambers of 
commerce such as those in Texas have even gotten behind our effort and 
are now asking the Congress to pass this important provision.
  We all know what shape our economy is in today. Small businesses 
continue to struggle to access credit, as large

[[Page S5773]]

banks have significantly cut back on Main Street lending.
  Mr. President, you been here the last 18 months and you have noted, I 
know, that the 22 banks that received the most funding through the 
Troubled Assets Relief Program, TARP, actually have cut their 
collective small business loan balance, and then America's community 
banks which, by and large, did not receive any Federal bailout funds, 
are still struggling to fill that Main Street credit vacuum that was 
created by these large financial institutions.
  We need to do better. Small businesses are counting on us all across 
our country. I mentioned earlier we have all met business owners. One 
Coloradan I was particularly compelled by is Stacy Hamon. Stacy is a 
small business owner in Thornton, CO, who started her own business, the 
1st Street Salon. Initially she went to a bank only to be turned away 
because credit was in short supply, not because of any problem with her 
credit history. So Stacy turned to make her dream come true to her 
local credit union, and that credit union granted her a loan through a 
second mortgage on her home. Since that time her salon has become even 
more successful. I visited her business. I was impressed. She hired 
more workers. She created real American jobs. Her story is a shining 
example of the economic expansion that awaits us if we will increase 
the amount of lending that credit unions can undertake.
  Another Coloradan, because this is about real people who are eager to 
build their business, is Lisa Herman. She e-mailed me a story about a 
loan she secured from a credit union to expand her business, called 
Happy Cakes Bakeshop. It is in the Highland Square area of Denver. She 
has been in business since 2007. Despite a tough economy, her revenue 
has been up by about 25 percent since the summer of 2008. She has 
booked over 20 weddings a month, and her retail operation has expanded 
to the point that she needed to build and move into a new shop.
  Her traditional bank lender could not expand her credit, but her 
local credit union could. She went on and expanded her business. This 
meant more jobs and more business for her community. That is the 
American way, is it not?
  As I begin to close, some would have you believe that this is about 
banks or credit unions. I mentioned the Hatfields and the McCoys 
earlier. But it is about small business; not about the banks, not about 
the credit unions, it is about small business.
  In this kind of a climate, we cannot turn away entrepreneurs such as 
Stacy and Lisa. I doubt there is a single Member of this Senate who 
wants to look a small business owner in the eye who could not get a 
loan because of an arbitrary government cap on small business lending. 
We all have an enormous responsibility to do all we can to unlock 
credit markets for small businesses in Colorado and across our country.
  This amendment is an important part of that effort. I look forward to 
working with all 98 of my colleagues to move this amendment, to add it 
to this important small business lending package and allow our Nation's 
small businesses to again set our country on a path toward job growth 
and future prosperity.
  I yield the floor and I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant bill clerk proceeded to call the roll.
  Ms. STABENOW. I ask unanimous consent that the order for the quorum 
call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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