[Congressional Record (Bound Edition), Volume 150 (2004), Part 13]
[Senate]
[Pages 18322-18323]
[From the U.S. Government Publishing Office, www.gpo.gov]




          EXTENSION OF SMALL BUSINESS ADMINISTRATION PROGRAMS

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate now 
proceed to the consideration of H.R. 5008, which is at the desk.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A 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.

  There being no objection, the Senate proceeded to consider the bill.
  Ms. SNOWE. Mr. President, I rise today to address H.R. 5008, a bill 
to provide a temporary extension of programs under the Small Business 
Act and the Small Business Investment Act of 1958, and to enhance the 
operations of the Small Business Administration.
  The bill before us would extend until September 30, 2004, SBA 
programs that have expired. In addition, it would provide clarification 
as to the SBA's method of reimbursing its Fiscal and Transfer Agent, 
which assists in the operation of the SBA's vital loan programs.
  In July 2004 I introduced S. 2700, a bill that extended these same 
SBA programs and also provided this clarification regarding the Fiscal 
and Transfer Agent. The Senate unanimously approved S. 2700 on July 20, 
but unfortunately the other body failed to pass that bill, leaving many 
critical small business assistance programs unauthorized. Today, we 
have another opportunity to renew these programs and to provide this 
legislative improvement, and we should not miss the chance.
  Since 1953, nearly 20 million small business owners have received 
direct or indirect help from one of the SBA's lending or technical 
assistance programs, making the agency one of the Government's most 
cost-effective instruments for economic development. The SBA's current 
loan portfolio of more than 175,000 loans, worth more than $45 billion, 
makes it the largest single supporter of small businesses in the 
country.
  According to the SBA, the $65.5 billion awarded to small businesses 
in Federal prime and subcontracts in FY 2003 allowed small businesses 
to create or retain close to 500,000 jobs. Over the last five years the 
SBA's programs and services have helped create and retain over 6.2 
million jobs.
  The Senate agreed unanimously in September 2003 to pass a bill I 
introduced, the Small Business Administration 50th Anniversary 
Reauthorization Act of 2003, to authorize the entire SBA for a three-
year period. However, we have been unable to reauthorize the SBA 
because the other body has been stalled in its consideration of SBA 
authorization legislation. According to the SBA, reauthorizing the 
agency will result in an estimated 3.3 million jobs created or retained 
over the next 5 years, with the SBA and its programs predicted to 
support over 1 million additional jobs over that same period through 
prime contracts and subcontracts.
  In the absence of a full reauthorization of the Agency, which I am 
still working to bring about, it is vital that we extend those programs 
that can provide current assistance to small businesses. The bill 
before us, H.R. 5008, would renew the authorization for several SBA 
programs, including the Preferred Surety Bond Program. This program 
provides an essential service to small businesses by guaranteeing 
surety bonds for small business contracts, thereby permitting small 
businesses to undertake thousands of projects which would otherwise be 
out of reach.
  H.R. 5008 would also specify the manner in which the SBA may 
compensate its Fiscal and Transfer Agent. This agent administers 
payments and fee collection in the SBA's loan programs and in the 
secondary market for those loans. This legislative change, requested by 
the administration in its budget submission to Congress for Fiscal Year 
2005, would provide guidance as to the SBA's method of compensating its 
agent.
  Additionally, this legislation will preserve the operations of 
existing Women's Business Center that currently serve women 
entrepreneurs in almost every State and territory. Today, more than 
10.6 million women-owned small businesses are helping to fuel our 
economic recovery: they employ over 19 million Americans and contribute 
$2.46 trillion in revenues. In my home State of Maine, there are more 
than 63,000 women-owned firms, generating more than $9 billion in 
sales. Numbers like these speak for themselves, and are clear evidence 
of the success of the Women's Business Centers Program.
  Moreover, according to research, between 2001 and 2003, women's 
business center clients reported starting over 6,600 new firms and 
creating more than 12,000 new jobs.
  Mr. President, without this legislation, many of the Centers may be 
in jeopardy of closing their doors. This would be a significant loss, 
given that some of these Centers have proven to be powerful engines of 
economic development in communities across the Nation.
  As we work toward the larger goal of a full reauthorization of the 
SBA, I urge my colleagues to support the enactment of H.R. 5008. This 
legislation would allow essential SBA programs to continue to assist 
small businesses during the remainder of this Fiscal Year.
  (At the request of Mr. Daschle, the following statement was ordered 
to be printed in the Record.)
 Mr. KERRY. Mr. President, today I join Chair Snowe in 
supporting legislation to keep the Small Business Administration and 
its financing and counseling assistance available to small businesses. 
This bill temporarily authorizes the SBA and most of its programs 
through September 30, 2004. In addition to the temporary extension, 
this bill includes a provision necessary to bring the administration 
into compliance with a January 2003 recommendation by the SBA's 
Inspector General. This change will save the SBA hundreds of thousands 
of dollars by allowing the agency's fiscal and transfer agent for the 
7(a) loan program's secondary market program to keep the interest 
earned on fees lenders pay before they are remitted to the Government. 
Currently, the SBA does not have that authority. The committee wants 
the program to continue running smoothly and successfully, and we think 
this change should accomplish this.
  Six SBA programs were halted after S. 2700, a similar bill sponsored 
by Senate Small Business and Entrepreneurship Committee Chair Olympia 
Snowe and myself, passed the Senate on July 20 but did not pass the 
House prior to the August recess. The six programs reinstated by H.R. 
5008 are: the Women's Business Center Sustainability program, the Small 
Disadvantaged Business, SDB, program, the Preferred Surety Bond, PSB, 
Guarantee program, the Small Business Development Center, SBDC, Drug-
Free Workplace Assistance Grants program, the Very Small Business 
Concerns program, and the SBA's co-sponsorship authority.
  With passage of this bill, the committee expects the SBA to move 
forward on grants for all its programs and certification for minority 
businesses, and any other activities it has been delaying.
  And while I am pleased that this bill will extend all of SBA's 
programs and pilot programs, I am disappointed that the dire and urgent 
needs of the women's business center program have yet to be fully 
addressed. Given the abysmal job creation record of this 
administration, we must aggressively seek and support innovative ways 
to create jobs, and the women's business center program has a proven 
track record of

[[Page 18323]]

doing just that. Last year alone, the women's business center network 
helped over 100,000 female entrepreneurs grow their businesses, employ 
more people, and expand economic opportunity.
  A study recently released by the National Women's Business Council 
shows that over the past 2 years, while funding for the women's 
business center program has remained essentially flat, the number of 
clients served increased by 91 percent and the number of new businesses 
started went up 376 percent. The study also found that the businesses 
counseled by women's business centers had an economic impact of $500 
million in gross receipts, $51.4 million in profit, and created 12,719 
new jobs. With these numbers, it is clear that the women's business 
center program is a wise investment that will continue to pay dividends 
to women in business, the Government and our national economy well into 
the future.
  As many of my colleagues know, there are currently 87 women's 
business centers. Of these, 35 are in the initial grant program and 53 
have graduated to the sustainability part of the program. These 
sustainability centers make up more than half of the total women's 
business centers, but under the current funding formula are only 
allotted 30 percent of the funds. Without changing the portion reserved 
for sustainability centers to 48 percent, as the Senate-passed Snowe-
Kerry bill, S. 2267, directs, all grants to sustainability centers 
could be cut in half, or worse, more than 20 experienced centers could 
lose funding completely.
  I believe it is very important to pass H.R. 5008 and extend the pilot 
so that our most experienced centers can continue their good work for 
women-owned businesses; however, the current funding formula for the 
Women's Business Center still needs to be updated. As the author of the 
bill to establish the sustainability program, I am hopeful that my 
colleagues in Congress will soon come together to fix this problem and 
secure the women's business center network once and for all.
  I thank my colleagues for their support of small businesses and for 
considering immediate passage of this important small business 
bill.
  Mr. FRIST. Mr. President, I ask unanimous consent that the bill be 
read the third time and passed, the motion to reconsider be laid upon 
the table, and that any statements relating to the bill be printed in 
the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (H.R. 5008) was passed.

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