[Congressional Record (Bound Edition), Volume 150 (2004), Part 13]
[House]
[Pages 18171-18174]
[From the U.S. Government Publishing Office, www.gpo.gov]




PROVIDING FOR TEMPORARY EXTENSION OF PROGRAMS UNDER SMALL BUSINESS ACT 
               AND SMALL BUSINESS INVESTMENT ACT OF 1958

  Mrs. CAPITO. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 5008) to provide an additional temporary extension of 
programs under the Small Business Act and the Small Business Investment 
Act of 1958 through September 30, 2004, and for other purposes.
  The Clerk read as follows:

                               H.R. 5008

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

     SECTION 1. ADDITIONAL TEMPORARY EXTENSION OF PROGRAMS UNDER 
                   SMALL BUSINESS ACT AND SMALL BUSINESS 
                   INVESTMENT ACT OF 1958.

       The authorization for any program, authority, or provision, 
     including any pilot program, that was extended through June 
     4, 2004, by section 1 of Public Law 108-217 is further 
     extended through September 30, 2004, under the same terms and 
     conditions.

     SEC. 2. TECHNICAL AMENDMENT.

       Section 2 of Public Law 108-205 is amended by striking 
     ``October 1, 2003'' and inserting ``March 15, 2004''. The 
     amendment made by the preceding sentence shall take effect as 
     if included in the enactment of the section to which it 
     relates.

     SEC. 3. COMPENSATION OF AGENTS.

       Section 5 of the Small Business Act (15 U.S.C. 634) is 
     amended--
       (1) in subsection (g)(4), by adding at the end the 
     following:
       ``(C) The Administration may contract with an agent to 
     carry out, on behalf of the Administration, the assessment 
     and collection of the annual fee established under section 
     7(a)(23). The agent may receive, as compensation for 
     services, any interest earned on the fee while in the control 
     of the agent before the time at which the agent is 
     contractually required to remit the fee to the 
     Administration.''; and
       (2) in subsection (h)--
       (A) by redesignating paragraph (2) as paragraph (3); and
       (B) by inserting after paragraph (1) the following:
       ``(2) The agent described in paragraph (1)(B) may be 
     compensated through any of the fees assessed under this 
     section and any interest earned on any funds collected by the 
     agent while such funds are in the control of the agent and 
     before the time at which the agent is contractually required 
     to transfer such funds to the Administration or to the 
     holders of the trust certificates, as appropriate.''.

  The SPEAKER pro tempore (Mr. Flake). Pursuant to the rule, the 
gentlewoman from West Virginia (Mrs. Capito) and the gentlewoman from 
New York (Ms. Velazquez) each will control 20 minutes.
  The Chair recognizes the gentlewoman from West Virginia (Mrs. 
Capito).


                             General Leave

  Mrs. CAPITO. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days within which to revise and extend their 
remarks and include extraneous material on H.R. 5008.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from West Virginia?
  There was no objection.
  Mrs. CAPITO. Mr. Speaker, I yield myself such time as I may consume.

[[Page 18172]]

  Mr. Speaker, this bill extends until September 30 the programs of the 
Small Business Administration not covered by an appropriation, 
including the Preferred Surety Bond Program, SBA's Private Sector 
Cosponsorship Authority, the Small Disadvantaged Business Procurement 
Assistance Program, the Small Business Development Center Drug-Free 
Workplace Assistance Grants Program and the Very Small Business 
Concerns Program.
  Last June, the House acted responsibly by passing H.R. 4478 to extend 
the programs of the SBA, but the other body failed to act. These 
programs have been in limbo since June 4, and it is important that they 
are extended while we continue to work on an SBA reauthorization bill.
  In addition, H.R. 5008 would help many existing Women's Business 
Centers keep their doors open. Passage of H.R. 5008 would free up the 
remaining $4 million already appropriated for the program this year to 
provide at a minimum approximately $70,000 to each Women's Business 
Center and sustainability status.
  Finally, H.R. 5008 corrects a legal problem regarding how the SBA 
pays fiscal transfer agents, who provide a vital role in the secondary 
market. For nearly 10 years, the SBA's fiscal transfer agent has been 
paid by a float on interest on the pools of securitized 7(a) guaranteed 
loans. Recently there has been some confusion as to whether or not this 
practice violates the Anti-Deficiency Act. The SBA has proposed a fix 
to this problem, and that solution is incorporated in section 3 of H.R. 
5008, which essentially codifies the existing practice.
  Passage of this legislation is needed in order to prevent the 
crippling of the SBA's 7(a) loan program, because without the liquidity 
of a secondary market banks will not make as many 7(a) loans as in the 
past.
  This bipartisan bill has the support of the ranking minority member, 
the gentlewoman from New York (Ms. Velazquez), and it has the support 
of the Bush administration. I urge my colleagues to support H.R. 5008.
  Mr. Speaker, I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, we are here today because Congress has failed to 
complete its work. Over 1 year ago, the Committee on Small Business 
unanimously reported out a bipartisan reauthorization bill. As a result 
of the failure to move this legislation, the authorization for the SBA 
expired last year and we are now forced to pass our fourth extension. 
Shamefully, the agency has been operating for 3 months without any 
authorization.
  It is clear that the Nation's job creators, small businesses, are 
struggling. The United States has lost 1.7 million jobs since 2001, and 
we are continuing to see growth rates that only keep up with inflation. 
American manufacturers are being hit hardest, with 2.7 million jobs 
lost during that period and 11,000 lost in June alone. This is clearly 
not the picture of an economy that is getting back on its feet.
  Last week, the House Committee on Small Business Democrats released a 
quarterly small business index showing that business conditions are at 
7-year lows. Skyrocketing health care and energy costs and exploding 
Federal budget deficits are but a few of the barriers small firms face 
in achieving the growth our economy needs so badly.
  At a time when we should be providing our Nation's entrepreneurs a 
leg up, this administration and the Republican Congress has 
continuously failed to provide the assistance they need by blocking 
passage of the SBA reauthorization.
  The bipartisan reauthorization bill will provide the most 
comprehensive overhaul of the SBA in over a decade. It will broaden or 
modernize the SBA loan programs so firms can access the capital they 
need. At a time when the Federal Government failed to meet the small 
business contracting goals for the fourth consecutive year, the 
Republican leadership is blocking this bill that will expand 
procurement opportunities for small companies.
  The legislation ensures small firms are given a fair chance to break 
into the Federal marketplace. By doing so, we provide the Federal 
Government a quality service at a good price. This is not just good for 
small businesses, it is good for the American taxpayer. Additionally, 
the likelihood of success for small business is nearly doubled when 
they have access to technical assistance.
  Passage of the reauthorization bill will offer the greatest expansion 
of entrepreneurial assistance programs in decades.
  Even more concerning is the possibility that our failure to act will 
actually worsen the business environment for small businesses. Small 
businesses are faced with a possible doubling of fees on SBA loans at 
the end of this month. Without immediate action, the current structure 
will lapse, leaving banks and entrepreneurs in a worse situation than 
when the program was shut down last year.
  Although the gentleman from Illinois (Chairman Manzullo), who cannot 
be here today, has tried repeatedly to bring this bill up for 
consideration, the Republican House leadership and the administration 
have blocked it.
  In today's economic climate, small businesses are more important than 
ever. We need to ensure that they have all the tools for success, as 
they are facing numerous obstacles. It is unfortunate that we are here 
today passing an extension, rather than celebrating the passage of an 
SBA reauthorization.
  These issues should not be subject to partisan politics. When our 
small businesses need us the most, our committee was able to work in a 
bipartisan manner to produce this legislation. We now ask the 
Republican leadership to recognize these efforts and pass the 
reauthorization bill that will get small businesses back creating jobs.
  Mr. Speaker, I yield 2 minutes to the gentlewoman from Guam (Ms. 
Bordallo).
  Ms. BORDALLO. Mr. Speaker, I rise today in support of H.R. 5008, and 
I would like to take this time to thank the chairman of the Committee 
on Small Business, the gentleman from Illinois (Chairman Manzullo), and 
the ranking member, the gentlewoman from New York (Ms. Velazquez), for 
their continued leadership in crafting a long-term reauthorization of 
the Small Business Administration.
  As you know, Mr. Speaker, H.R. 5008 will provide temporary 
reauthorization of the Small Business Administration. While I support 
H.R. 5008, I do share the ranking member's frustration that we still 
have not had the opportunity to vote to pass a permanent 
reauthorization of the Small Business Administration, and consequently 
this raises concerns about the future of the 7(a) loan guarantee 
program, which is often the only source of long-term financing on 
reasonable terms for small businesses, particularly those in poor, 
rural and underserved areas.
  While H.R. 5008 will maintain the current authority for the 7(a) 
program, small business owners will see a doubling of administration 
fees.
  As you know, Mr. Speaker, the Committee on Small Business approved on 
a unanimous, bipartisan basis a permanent Small Business Administration 
reauthorization, H.R. 2802. The committee marked up this bill on July 
21, 2003. H.R. 2802 would revise the 7(a) fee calculation for small 
businesses, avoiding the increase that they will otherwise face under 
the current authority.

                              {time}  1715

  These small firms represent the future of our economy, Mr. Speaker, 
as they account for 75 percent of all new jobs created in the United 
States.
  Therefore, I hope that we can work together to resolve any 
outstanding issues with respect to this bill and move this important 
legislation to the floor before we recess. In the meantime, I 
respectfully urge my colleagues to vote today in favor of the temporary 
reauthorization.
  Mrs. CAPITO. Mr. Speaker, I yield myself such time as I may consume.
  While reauthorization is extremely important, I think it would 
behoove us at this time to really think about all of the things that 
have been done and are in the process of being done for small 
businesses here and across America.

[[Page 18173]]

  Twenty-five million small business owners will receive tax relief, 
totaling $75 billion. That is real savings. The rate reductions in the 
tax benefit plan is more than 90 percent small business. We also have 
raised the small business expensing limit from $25,000 to $100,000, and 
I can tell my colleagues in my home State of West Virginia, small 
businesses are beginning to do and beginning to feel the growth effects 
of being able to hire another person, being able to buy that extra 
piece of equipment as a result of the tax incentives.
  Regulation, which is another burdensome thing on small business, this 
administration has slowed the growth of burdensome new rules by 75 
percent. Also, small businesses saved $7 billion last year in 
regulatory costs, and that is significant.
  We have worked a lot to try to incent and grow our small businesses, 
and there is always more, much more, that can be done. But in terms of 
government procurement, for the first time in many years, the Federal 
Government exceeded its small business goal by providing a record $65.5 
billion in prime contracts to small businesses. That is a significant 
increase over past years.
  So, in conclusion, I would like to say that reauthorization of SBA is 
exceedingly important to small business, and what we are doing here 
today in extending the authorization is extremely important. But much 
has been done and much needs to still continue to be done to help small 
business, which is the backbone of our American economy.
  Mr. Speaker, I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may 
consume.
  I would like to set the record straight regarding the tax cut that 
the President submitted to Congress and that Congress passed.
  The tax cuts are not helping small businesses. The President's tax 
cuts have provided little relief for small businesses. In fact, under 
the latest tax cut, over half of small businesses receive less than 
$500, despite a cost of $350 billion. And, while the President talks 
about how the top tax rate cut helps small businesses, only 1 percent 
of small business owners benefit from the reduction in the top tax 
rate. In fact, out of the 28 million small businesses, only 180,000 
benefited from the top tax rate, according to the figures presented to 
us by the Department of the Treasury. Those are your own numbers. Less 
than 5 percent of the latest 2003 Jobs and Growth package was in the 
form of targeted tax relief for small businesses.
  Mr. Speaker, I yield 3 minutes to the gentlewoman from the Virgin 
Islands (Mrs. Christensen).
  Mrs. CHRISTENSEN. Mr. Speaker, I thank the gentlewoman for yielding 
me this time.
  Although I would rather be here to support the SBA reauthorization, I 
rise today in support of H.R. 5008, which would simply, once again, 
extend the important programs under the Small Business Act and the 
Small Business Investment Act.
  Mr. Speaker, H.R. 5008 marks the fourth extension of the SBA 
programs. The House Committee on Small Business passed the extension on 
the SBA programs with bipartisan support a year ago. I want to take 
this opportunity to commend the leadership of our ranking member, the 
gentlewoman from New York (Ms. Velazquez), and our chairman for their 
strong leadership and their bipartisanship in working on that 
reauthorization.
  Yet, the House leadership has failed to bring this bill to the floor 
for a vote. Why?
  The leadership in this and the other body give a lot of lip service 
to small business. We constantly tout them as the backbone and the 
engines of our economy. Yet, on legislation as critical to their and, 
thus, our Nation's well-being as the reauthorization of programs on 
which they depend, this Congress has, once again, failed to act.
  It is getting late in the year. Our small businesses cannot wait. 
They need security now. They need the assurance that the programs they 
will need to continue will be there now. They need to know what to 
expect, and we need to stop these stop-gap measures and give them that 
security and that assurance.
  I am particularly concerned because I have heard Members ask, Why 
should we continue to fund agencies and programs that have not been 
reauthorized?
  Mr. Speaker, actions speak louder than words. Failure to act on this 
legislation is sending the message that our Nation's small businesses 
are not a priority for this administration. But they are very important 
to both the Democrats and the Republicans on the committee.
  It is also of great concern that this bill fails to address the 
current problem of high fees associated with the 7(a) program, the 
flagship lending program for the Small Business Administration. If the 
leadership fails to bring the reauthorization to a vote by the end of 
this month, the 7(a) lending program will once again be in jeopardy.
  It is a good thing that, in our districts, the agencies charged with 
supporting small businesses are doing what they need to do. On that 
positive note, I would like to take this opportunity to recognize and 
congratulate the University of the Virgin Islands Small Business 
Development Center, the university president, Dr. Laverne Ragster, and 
the SBDC director, Mr. Warren Bush, for successfully hosting its Small 
Business Innovation Research Program and Small Business Technology 
Transfer Program Orientation Conference last week.
  Finally, on a bill previously before this body today, I want to take 
this opportunity to also join my colleagues in supporting House 
Resolution 717 and belatedly extend, on behalf of all of my 
constituents in the U.S. Virgin Islands, our best wishes to President 
Bill Clinton on his 58th birthday, as well as to wish him a continued 
speedy recovery, many, many more birthdays and good health and 
happiness, and God's richest blessings on him and his family.
  Mrs. CAPITO. Mr. Speaker, I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Speaker, I yield 2 minutes to the gentleman from 
Massachusetts (Mr. Tierney).
  Mr. TIERNEY. Mr. Speaker, I thank the gentlewoman from New York, both 
for yielding me this time and for bringing this matter to the floor 
today.
  It is obviously essential that we finally take some action on this 
legislation. We need to extend critical funding to women's business 
centers across the United States. In particular, the Center for Women 
and Enterprise in Boston serves many of the constituents in my district 
and throughout the State of Massachusetts. It has been long overdue, 
and many of these centers have already suffered because of Congress's 
inaction.
  It is a bit disturbing to know that it has been 10 months since the 
Small Business Administration authorization bill has expired. And it 
continues to linger, and we need the majority to come forward and the 
White House to come forward at this point in time and bring it and put 
it on the agenda. Everybody has great rhetoric about how important 
small businesses are to our country, to our districts and to the 
economy. But now it is time to put that rhetoric into action and make 
sure we move on this bill.
  We do not have to tell people or remind them about how this economy 
is suffering: almost 2 million jobs lost in the last several years and 
still not anywhere near back to where we were in January of 2001.
  We know what a generator of jobs, what a booster of the economy small 
businesses can be, and we also know how important the Small Business 
Administration is in providing capital for these businesses. So if we 
could do the bill that is before us today but also bring forward the 
Small Business Administration reauthorization, we could deal with that 
issue of capital.
  At a time when the economy is suffering as much as it is, many 
businesses are starting to fail. They need that capital so that they 
can retool. Some need it to grow. And we need some new businesses to 
fill in where others have left. That cannot happen without this bill 
coming forward.

[[Page 18174]]

  The so-called 7(a) loans are by far the most critical capital 
vehicles that we have for small businesses: $11 billion in loans to 
small businesses every year. That aspect has to be assured to 
businesses. If we do nothing by the end of this month, fees for that 
will double, freezing out many businesses from the opportunity to get 
access to this money so that they can expand or they can start up.
  Time after time, we hear on the floor and we hear in people's 
individual districts how much they feel for small business and how 
certain they are that small businesses add to the benefit of our 
country.
  Mr. Speaker, we need to put our money where our mouth is. We need 
this measure to be brought forward. I support today's bill because it 
does a good thing, particularly with respect to the women's business 
centers across the country, but realize that we have to do more and 
move the Small Business Administration reauthorization forward.
  Mrs. CAPITO. Mr. Speaker, I continue to reserve the balance of my 
time.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, there is no disagreement that we should pass this 
extension. It is, though, embarrassing that it has come to this. We 
expect small businesses to meet their taxes, comply with Federal 
regulations and pay their employees on time. But when it comes to 
Congress, we are not held accountable for our failure to meet their 
needs.
  At a time when our economy is struggling, at a time when small 
businesses are struggling, Congress should be holding up its end of the 
deal. Passing the Small Business Administration Reauthorization Act 
must be a priority.
  Mr. Speaker, I yield back the balance of my time.
  Mrs. CAPITO. Mr. Speaker, I yield myself such time as I may consume.
  I would like to thank the gentlewoman from New York (Ms. Velazquez) 
for not only her advocacy for this bill before us today, but for her 
advocacy for small business. She is one of the staunchest cheerleaders 
for small businesses across this Nation, and I appreciate her service 
and her ability to get things done.
  I thank our chairman, the gentleman from Illinois (Chairman 
Manzullo), who is not with us today, to thank him also for his small 
business advocacy. It is good to know that we have a bipartisan opinion 
on this bill. I look forward to its passage, and I look forward to all 
of us working together to see that small business not only grows but 
thrives under this bill and also under further legislation.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Flake). The question is on the motion 
offered by the gentlewoman from West Virginia (Mrs. Capito) that the 
House suspend the rules and pass the bill, H.R. 5008.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

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