[Congressional Record Volume 157, Number 170 (Tuesday, November 8, 2011)]
[Senate]
[Page S7193]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KERRY:
  S. 1828. A bill to increase small business lending, and for other 
purposes; to the Committee on Small Business and Entrepreneurship.
  Mr. KERRY. Mr. President, once again, too many of our Nation's small 
businesses are facing difficulty in gaining access to capital. That is 
why today I am introducing the Increasing Small Business Lending Act to 
increase access to capital for our Nation's small businesses to help 
them sustain and build their businesses, create jobs and expand our 
economy.
  In October 2008, markets froze. Credit lines were cut. A lending gap 
was created in the market. Even Small Business Administration 
guaranteed loans, that help reduce risk for lenders, were stalled. 
Congress stepped up and enacted temporary measures to help fill the 
gaps in small business lending, saving nearly 90,000 small businesses.
  One such business is LazerCraze in North Andover, Massachusetts that 
received an SBA loan to expand to a second location and purchase state-
of-the-art equipment that allowed them to hire an additional 37 full 
time employees.
  SBA, administrator Karen Mills has said that the previous temporary 
changes to the SBA loan programs were a success, ``In short, it worked. 
We engineered a turnaround in SBA lending even though conventional 
credit was, and still is to some extent, very tight. Taxpayers got a 
big bang for the buck. With just over a billion dollars in total 
subsidy, we supported about $42 billion in lending. In fact, SBA had 
its highest-ever weekly loan volume the week before Christmas when we 
supported nearly 2 billion dollars in lending, 10 billion total last 
quarter. Here is the headline: overall, that is nearly 90,000 small 
businesses that are not surviving this recession, but growing and 
creating jobs.
  Unfortunately, the temporary small business loan provisions ran out 
of funding in January 2011, ahead of the authorization which expired in 
March 2011. Since then, small business lending has declined, making it 
more difficult for small businesses to create jobs and for our economy 
to emerge from our economic downturn.
  The legislation I am introducing today is similar to the Small 
Business Lending Market Stabilization Act, which I introduced in 2008 
that was included in both the American Recovery and Reinvestment Act of 
2009, P.L. 111-5, and extended in the Small Business jobs Act, P.L. 
111-240. The Increasing Small Business Lending, Act will eliminate for 
one year the fees for 7(a) and 504 Small Business Administration loans 
and increase SBA loan guarantee of 90 percent, policies that were 
started as part of the American Recovery and Reinvestment Act and 
extended in the Small Business Jobs Act.
  According to the SBA, total small business loans outstanding, loans 
under $1 million, actually declined during the first half of 2011 after 
the temporary provisions ended. Loans outstanding to small businesses 
at the end of the second quarter totaled only $607 billion, which is 
the slowest since the economic downturn began in 2008.
  We can't afford to have our economic progress reversed by a decline 
in access to capital for small businesses. Since the increased 
guarantee and reduced fees have expired, our economic recovery could be 
impeded if we don't act to continue the policies that we know work. By 
extending key provisions to bolster access to capital, small businesses 
will have the assurance and support they need to put their innovative 
ideas into practice and get more Americans back to work.
  My legislation will complement the existing Small Business Lending 
Fund that encourages lending to small businesses through smaller 
community banks. Small businesses are the backbone of our economy and I 
ask all Senators to support job growth and small businesses by 
supporting this legislation.
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