Congressman Steve Kagen, M.D. is working hard to create the jobs we need. Today, the House approved a Kagen sponsored amendment to the Small Business Jobs and Credit Act (H.R. 5297), providing more opportunities for small businesses to access credit so they can expand their businesses and create new higher-wage jobs in the private sector.
"Access to credit is the medicine we need now to heal our economy," said Dr. Kagen. "Privately owned small businesses are the real economic engines of our economy, and they will soon be able to gain access to credit, allowing them to create the jobs we need to work our way back into prosperity."
Access to credit has been a persistent problem for small businesses across Northeast Wisconsin and the rest of the country. This problem not only affects their ability to hire/retain employees, but often restricts their ability to do transactions with larger corporations.
"Our small businesses and the community banks they rely on didn't cause the economic mess we are in," continued Kagen, "but they're suffering from it. This measure is necessary to help them survive during tough times; it takes effect immediately, costs taxpayers nothing and will lead to job growth in the private sector."
In the 1980s, during the farm credit crisis, a similar provision was successfully utilized. Kagen's amendment, originally offered as a stand-alone bill, allows small community banks to amortize or write-down losses over a six to 10 year period, which will free up capital in banks to loan to small businesses.
Kagen's amendment is included in the Small Business Jobs and Credit Act being considered by the House this week. Reps. Ed Perlmutter (CO-07), Ron Klein (FL-22) and Luis Gutierrez (IL-04) are co-sponsors of the amendment.