[Congressional Record Volume 159, Number 22 (Tuesday, February 12, 2013)]
[Senate]
[Pages S660-S661]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. LANDRIEU (for herself and Mrs. Shaheen):
  S. 289. A bill to extend the low-interest refinancing provisions 
under the Local Development Business Loan Program of the Small Business 
Administration; to the Committee on Small Business and 
Entrepreneurship.
  Ms. LANDRIEU. Mr. President, I come to the floor today to discuss the 
importance of small businesses in the United States. It cannot be 
stated enough that small businesses are the economic engines of our 
country. Small businesses also represent the essence of the American 
Dream. They are creators of new jobs and innovative technologies. In 
fact, over the last 15 years, businesses employing less than 500 people 
have created 93 percent of all new jobs and employed 58.6 million 
workers. Businesses employing less than 20 people alone employed 21.3 
million workers. In my home state of Louisiana, small businesses make 
up about 98 percent of businesses. As Chair of the Senate Committee on 
Small Business and Entrepreneurship, I remain focused on the needs of 
these small businesses. That is why I am here today to introduce a bill 
that I believe will help spur job creation among small businesses.
  As you know, right now our country is only slowly recovering from the 
worst economic downturn since the Great Depression. This economic 
downturn disproportionately affected small businesses and, in turn, 
stifled their ability to generate growth for the country. Sadly, since 
November 2008, 80 percent of the job losses have come from small 
businesses. An estimated 2.16 million jobs were lost in the private 
sector from November 2008 through February 2009--nearly 40 percent from 
businesses with less than 50 employees. Ten jobs lost here and five 
jobs there add up. These are the job losses that hurt our economy, our 
communities and our families.
  With this in mind, I was proud to lead Congressional efforts to enact 
the Small Business Jobs Act of 2010, Public Law 111-240. President 
Obama signed this legislation into law on September 27, 2010. This 
legislation focused on the three ``C's'' important to small businesses: 
Capital, Contracting, and Counseling. Today I would like to focus on 
Capital and more specifically, on the Small Business Administration's 
504 Loan Refinancing Program, which unfortunately expired in September 
2012.
  The 504 loan program is a long-term financing tool for economic 
development that provides small businesses with long-term, fixed-rate 
loans to help them acquire major fixed assets and real estate for 
expansion or modernization. The Small Business Jobs Act of 2010 allowed 
small businesses to use the 504 loan program to refinance certain 
qualifying existing debt for 2 years. While loan volumes were 
relatively low in the program's first year, the SBA made a number of 
program modifications to encourage and allow more small businesses to 
take advantage of the long terms and low interest rates offered by the 
program. In fiscal year 2012, the program's second and final year, the 
SBA approved over 2,400 refinancings for over $2.2 billion to small 
businesses.
  Unfortunately, on September 27, 2012, the program expired just as it 
was gaining traction in the small business community. Over the past 
year, in my conversations with small business owners and in testimonies 
given in roundtables and hearings before the Committee on Small 
Business and Entrepreneurship, I have consistently heard the need to 
extend this portion of the 504 loan program. The bill that I am 
introducing today would extend for 5 years the provision allowing small 
business owners to use Small Business Administration, SBA, 504 loans to 
refinance existing commercial mortgages. Extending the 504 refinancing 
program is a commonsense way to help small

[[Page S661]]

businesses and create jobs. By allowing small businesses to refinance 
qualified commercial real estate debt, this program lowers their 
monthly mortgage payments at no cost to taxpayers. At a time when we 
are still facing high unemployment, this extension is one of many 
things that we should be doing to put more capital in the hands of 
America's job creators.
  I would like to reiterate that this is not a new proposal, and it has 
consistently received bipartisan support. In total, last year I filed 
this extension either as a bill or an amendment four times. The 504 
refinance provision extension was originally introduced as S. 2364 by 
Senators Snowe, Landrieu, Isakson, and Shaheen. Title II of the SUCCESS 
Act, which I introduced during the 112th Congress, also included the 
refinance provision. On July 12, 2012, the Senate voted on the SUCCESS 
Act as part of Senate Amendment 2521 to S. 2237, the Small Business 
Jobs and Tax Relief Act of 2012. Although the amendment came up short 
of the 60 votes needed to end debate, the SUCCESS Act amendment 
received a strong 57 bipartisan votes, including five of my Republican 
colleagues. Finally, I included the provision in a substitute amendment 
that I cosponsored to the JOBS Act of 2012 and offered the 504 
refinancing language as an amendment to the Veterans Jobs Bill. I urge 
my colleagues on both sides of the aisle to come together in support of 
this common-sense, cost effective program.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 289

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Commercial Real Estate and 
     Economic Development Act of 2013'' or the ``CREED Act of 
     2013''.

     SEC. 2. LOW-INTEREST REFINANCING UNDER THE LOCAL DEVELOPMENT 
                   BUSINESS LOAN PROGRAM.

       (a) Repeal.--Section 1122(b) of the Small Business Jobs Act 
     of 2010 (15 U.S.C. 696 note) is repealed.
       (b) Restoration of Low-interest Refinancing Provision.--
     Subparagraph (C) of section 502(7) of the Small Business 
     Investment Act of 1958 (15 U.S.C. 696(7)) (relating to 
     refinancing not involving expansions), as in effect on 
     September 25, 2012, shall be in effect during the period 
     beginning on the date of enactment of this Act and ending 5 
     years after that date of enactment.

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