Small Business Administration Extension

Floor Speech

SMALL BUSINESS ADMINISTRATION EXTENSION -- (House of Representatives - March 17, 2009)

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Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise in strong support of H.R. 1541.

The Small Business Administration (SBA) was created in 1953, and has a current business loan portfolio of roughly 220,000 loans worth more than $50 billion, which makes it the largest single financial backer of U.S. businesses. My district is home to these businesses, many of which are struggling to hang tough in this trying economy.

In the 110th Congress, several short-term SBA authorization measures were enacted; the latest was signed into law on May 23, 2008. Under that law, authorization for SBA programs is scheduled to expire on March 20. I am hopeful that President Obama continues the recognition and support for small businesses that he demonstrated yesterday. His leadership, along with that of my colleague Nydia Velázquez on these issues could not come at a more important time.

Small business is frequently viewed as an incubator for employment and economic growth, and is a continuing legislative and oversight concern for Congress due to its constitutional role, through the interstate commerce and general welfare clauses, to promote economic well being and prosperity.

While many analysts believe a very significant percentage of the nation's jobs are created by small businesses, others note that a great many small businesses fail every year thereby eliminating jobs.

The 111th Congress is likely to consider many small business issues as it debates reauthorization the many Small Business Administration (SBA) programs that are scheduled to expire in 2009. Our small business owners need certainty to plan for the future and I will continue to work hard for a more permanent solution to complement the authorizations that many businesses have to endure.

A primary issue in the reauthorization is likely to be the cost to the government of various small business assistance programs. The Bush Administration had proposed that certain loan programs be cut back or eliminated, that borrowers in the SBA's basic loan program be charged higher fees, and that interest rates for disaster loans rise to market levels after five years. I hope that a full review of these policies is underway by the new administration.

Ways to insure that small businesses benefit from economic stimulus programs are likely to be considered. Finding ways for small businesses to provide health insurance to employees could be vital in getting elements of the business community to be actively supporting and working with Congress as we press ahead with legislation on health care. I understand that we in Congress cannot run your businesses for you. I just want to be there to help fashion fair and reasonable legislation that affects small business.

Mr. Speaker, this bill authorizes Small Business Administration programs and authority through July 31 and again it is my hope that we continue to engage the business community as this Congress seeks to move America from recession back to prosperity.

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