Senator John Kerry today introduced legislation to make more capital available to small businesses through the Small Business Administration (SBA). The Increasing Small Business Lending Act would eliminate some SBA loan fees and increase loan guarantees to help small businesses expand, create jobs, and strengthen the economic recovery.
"These efforts to provide access to capital and loans have helped keep more than 90,000 small businesses afloat in the last two years, and we'd be shortsighted if we stopped now. This legislation will allow small businesses to keep creating jobs and contributing to the economy, and I'm hopeful that colleagues on both sides of the aisle will support it," Senator Kerry said
After credit tightened in October 2008, Congress enacted these temporary measures to help fill the gaps in small business lending. These SBA programs helped save nearly 90,000 small businesses. Unfortunately, the temporary small business loan provisions ran out of funding in January 2011, ahead of the authorization, which expired in March 2011. Since then, small business lending has declined, making it more difficult for small businesses to create jobs and for our economy to emerge from our economic downturn.
The Increasing Small Business Lending Act would:
* Eliminate fees for 7(a) and 504 Small Business Administration (SBA) loans for one year.
* Increase SBA loan guarantees to 90 percent.
Senator Kerry was instrumental in including these provisions in the American Recovery and Reinvestment Act, and they were extended in the Small Business Jobs Act of 2010. The provision to eliminate loan fees was based on the Small Business Lending Market Stabilization Act, which Senator Kerry introduced in 2008.