LIPINSKI VOTES TO HELP SMALL BUSINESSES OBTAIN CREDIT AND CREATE JOBS
October 29, 2009
Congressman Dan Lipinski (IL-3) voted today to make it easier for small businesses to obtain much-needed credit through the Small Business Administration. The Small Business Financing and Investment Act of 2009 (H.R. 3854) would help capital-starved small firms unlock their vast job-creating potential. The bill passed the House of Representatives by a vote of 389 to 32. Congressman Lipinski strongly supported H.R. 3854 as a member of the House Small Business Committee, voting for committee passage last week.
"Across the country and across the Third District, small and medium-sized companies are struggling to survive," Congressman Lipinski said. "Despite its enormous price tag, the Wall Street bailout failed to do enough to increase bank lending, leaving many businesses without the capital they need to grow and thrive. The Small Business Financing and Investment Act is one way to make up for the inability or unwillingness of banks to lend to small businesses. Small businesses have long been an incredibly potent source of job creation and pillars for our communities, so we need to do everything we can to make sure they remain healthy."
The bill would improve the SBA's capital access programs by removing institutional hurdles, raising the lending cap to $3 million for the popular 7(a) program, enhancing investment in early-stage small businesses in innovative industries, increasing borrowing authority for start-ups, and focusing on lending to manufacturers.
In addition to working to improve SBA lending programs, Congressman Lipinski has been working to expand access to credit for small and medium-sized manufacturing firms, which have been hit particularly hard by the recession. He recently introduced the bipartisan BUILD Manufacturing Act (H.R. 2936), which would help manufacturers create jobs by providing access to credit through a loan guarantee program at no additional cost to taxpayers.
"Manufacturing employed 13.5 million Americans in 2008 and was responsible for 13.6 percent of the United States' Gross Domestic Product in 2007," Congressman Lipinski said. "With unemployment in the sector reaching 11.9 percent, something must be done to reinvigorate this industry, which is critically important to our nation and to many communities in the Third District. The BUILD Manufacturing Act would help manufacturers up and down the supply chain to purchase new equipment, modernize facilities, expand production capacity, and hire more workers."
Under the congressman's bill, loans to qualified manufacturers would be made with an emphasis on small and medium-sized businesses. Programmatic funding for loan guarantees has already been established under the Term Asset-Backed Loan Facility. The bill would provide for guarantees of between 60 and 70 percent for loans under $50 million.
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