Tierney Supports Small Businesses, Job Creation

Press Release

This week, Congressman John F. Tierney (D-MA) voted in favor of the Disaster Relief and Summer Jobs Act of 2010 (H.R. 4899), which passed the House with a vote of 279-175, and now awaits action in the Senate. The legislation intends to expand this summer's youth jobs programs and continues assistance to America's small businesses under the terms established by the Recovery Act, along with ensuring that the Federal Emergency Management Agency (FEMA) is properly funded in light of the nation's record snowfalls and recent floods. This was another step forward in a series of recent measures that Tierney has supported to help strengthen our economy and create jobs.

"While we begin to recover from the deepest economic crisis since the Great Depression, it is incumbent upon us to find every avenue of relief that we can for our small businesses and potential job-seekers," said Congressman John F. Tierney. "This bill will bring real results to Massachusetts, with our local WIB Director, Mary Saris, estimating that over 4000 jobs would be created in the Commonwealth with the support of these federal funds."

Specifically, $600 million is allotted to support over 300,000 jobs for youth ages 16 to 24 through summer employment programs. This age group has some of the highest unemployment levels, 25% for those aged 16 to 19. The funding will allow local Workforce Investment Boards (WIBs) to expand successful summer jobs programs that were funded in the Recovery Act, such as those supported by North Shore WIB, which boasted over 400 additional jobs on the North Shore alone last summer because of the additional federal funding and hundreds more are expected this summer with the aid of this money.

Furthermore, $60 million will be put toward extending the Recovery Act small business lending program for another month. In the past, this funding has helped companies on the North Shore such as Rockport's 7th Wave Restaurant, which hired 15 employees when the venue opened last summer. The program eliminated the fees normally charged for loans through the Small Business Administration (SBA) 7(a) and 504 loan programs and increased the government guarantees on 7(a) loans from 75% to 90%. Thus far, the program has supported nearly $23 billion in small business lending, which helped to create or retain over 560,000 jobs, according to the SBA. These Recovery Act provisions saved the 7th Wave Restaurant $11,500 in fees on their SBA-backed loan that could be reinvested in the company.

The disaster relief funding in this bill provides $5.1 billion, to ensure that FEMA can continue its work helping communities recover from recent disasters and to ensure that they have resources to respond to future disasters. Due to lack of funds, FEMA has about $2 billion in projects on hold. Meanwhile, the National Weather Service and the Army Corps of Engineers estimate that one-third of the United States will be faced with the possibility of flooding this spring, as has already been experienced on the North Shore.

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