[Congressional Record (Bound Edition), Volume 154 (2008), Part 18]
[Senate]
[Pages 24174-24175]
[From the U.S. Government Publishing Office, www.gpo.gov]




                         ECONOMIC RECOVERY ACT

  Mr. SCHUMER. Mr. President, I rise to speak about the Economic 
Recovery Act, which is a comprehensive stimulus package. We need it. 
Our Nation needs this. It is a much needed shot in the arm for our 
ailing economy. When the economy is ailing, there are two choices: We 
can choose the path of, say, Herbert Hoover and say: Government should 
not be involved, let an ideological straitjacket tie us up--We know 
what happened then--or we can choose the course economists on the

[[Page 24175]]

left, the middle, and the right have said we should choose, which is we 
need a major stimulus package to get the economy going.
  I would have hoped we would have made the choice to help this economy 
and help the millions of Americans who are worried. Hundreds of 
thousands have lost their jobs, millions more are worried about losing 
their jobs, and tens of millions see every week that the paycheck does 
not stretch as far as it did.
  We face an economic crisis of a scale and scope that we have not 
experienced in 25 years, if not longer. By every measure we are headed 
toward a cliff. We are in the midst of the greatest housing crisis 
since the Great Depression. Unemployment has been rising rapidly and is 
expected to hit levels we have not seen at least since the early 1980s.
  States and localities face massive budget shortfalls that may force 
them to raise property taxes unless Federal assistance is delivered. 
Families are running harder just to stand still, seeing their incomes 
shrink while their costs, especially their food and energy costs, are 
far greater than they were 1 year ago.
  The credit contraction that has spread from the financial system to 
average households has pummeled American businesses in every part of 
the country, businesses big and small. Not even the most optimistic 
among us can argue that our economic problems will take care of 
themselves.
  The question before us is: What are we, as stewards of the public 
trust, going to do? I believe the answer is clear: The Federal 
Government should, it must, provide an economic stimulus to Main Street 
as we have to Wall Street. It must be significant and substantial and 
it must be targeted at our most pressing needs.
  The plan before us does that. It will prime the pump of America's job 
machine, by fast-tracking $13.5 billion of investment into our Nation's 
infrastructure which forms the bedrock of our economy. It will help the 
States avoid the difficult decision to raise property taxes; you cannot 
do that now. But some of them may have no choice because they have 
budget shortfalls. But we can avoid that terrible choice by delivering 
$40 billion in emergency fiscal aid through the FMAP.
  The stimulus package before us will jump start renewable energy 
production by making major investments in the technologies that will 
not only help America become energy independent but will make us a 
global leader in the next generation of fuel-efficient vehicles.
  Importantly, this bill will also resuscitate small business lending. 
We all know small businesses are the engine of our economy. But small 
businesses have been overlooked in the financial rescue efforts to 
date.
  So working with my friend and colleague from Massachusetts, Senator 
Kerry, we have worked to include provisions in this stimulus package 
that will throw our small businesses a life vest to weather this storm 
so they can emerge from it as leaders in job creation.
  Small businesses generally rely heavily on loans from banks to build 
inventory, meet their payroll consistently, and fuel the growth of the 
business. These loans have all but dried up, threatening the survival 
of car dealerships, mom-and-pop pharmacies, restaurants and shops all 
across the Nation.
  The Federal Reserve recently reported that 75 percent of domestic 
banks said they had tightened their lending standards for small-
business loans, 75 percent. At the same time, 70 percent of the lenders 
told the Fed that they would charge more for those loans. According to 
the New York Times in an August opinion poll, two-thirds of 
entrepreneurs told the National Small Businesses Association that their 
companies had been hurt by the credit crunch.
  Traditionally, Small Business Administration loans have filled this 
gap. But chronic underfunding of the SBA under the Bush administration 
and its outdated fee structure have greatly reduced lender 
participation and undermined the valuable function that SBA lending 
could play during this credit crisis.
  In October alone, the number of loans made under SBA's largest loan 
program dropped over 50 percent compared to the same month last year. 
So the economy desperately needs this shot in the arm.
  And SBA's loan program is cut in half. What foolishness. Why do we 
not change it? That is why Senator Kerry and I fought to include in the 
economic stimulus package provisions that will modernize the SBA and 
jump start lending to small business.
  Our bill provides $615 million to support $22.5 billion in zero-fee 
loans to small businesses under the 7A and 504 programs. Providing 
zero-fee loans will deliver needed relief to small business on Main 
Street during Wall Street's financial crisis.
  The bill also provides $1 million to support $10 million in new 
microloans for small businesses and $4 million for critical technical 
assistance for these new ``micro'' borrowers.
  In sum, our Nation needs this stimulus package, not just for the 
small businesses or the large businesses across the Nation but for the 
American families who have faced devastating hits to their wealth and 
economic security. We need to build a platform from which we can emerge 
from this credit crisis as a global leader in energy and innovation and 
high-paying job creation. I strongly urge the passage of this proposal.
  I yield the floor and suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. BARRASSO. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER (Mr. Cardin). Without objection, it is so 
ordered.
  The Senator is recognized for 10 minutes.
  Mr. BARRASSO. Thank you very much, Mr. President.

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