Today, Congresswoman Judy Chu (CA-27) introduced legislation that will help small business owners increase their access to capital, allowing them to invest in their business and expand their workforce. The Commercial Real Estate and Economic Development (CREED) Act will allow small business owners to refinance existing commercial mortgages, lowering their monthly mortgage payments to take advantage of historically low interest rates, and putting more capital in the hands of America's job creators. The CREED Act does this with no cost to taxpayers. Rep. Chu released the following statement:
"By creating two out of every three new jobs in America, small businesses truly are the heart of our economic engine. I'm introducing the CREED Act today to ensure that small business owners have the capital they need to invest in their own success. Doing so allows them to hire more workers and make new purchases. This is how our economy has come back from the brink of depression, and it is how we will continue to spread success, one small business at a time."
Congresswoman Chu is a member of the House Small Business Committee, and has been a tireless advocate for the needs of entrepreneurs and small business owners since coming to Congress in 2009.
Rep. Chu's House version of the CREED Act is the counterpart to a Senate bill with the same name, which was introduced by Senator Mary Landrieu, Chair of the Senate Committee on Small Business and Entrepreneurship, and Senator Jeanne Shaheen, a senior member of the committee. The legislation extends the 504 loan refinancing program for five years. The program will be funded entirely through fees assessed for refinancing projects. In Fiscal Year 2012, the last year of the program, over 2,400 small businesses benefited from refinancing of over $2.2 billion.