Small Business Programs Act of 2007

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 3866) to reauthorize certain programs under the Small Business Act for each of fiscal years 2008 and 2009, as amended.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, our economy is constantly evolving and changing. For this Nation's 27 million small firms to be successful, our economic policies must be adjusted accordingly.

While we have made great strides in this Congress to make sure the needs of small business owners are met, H.R. 3866 is the final step in reauthorizing small business assistance programs, ensuring the success and growth of small firms.

Today, entrepreneurs are faced with many challenges. They must compete in a global marketplace, deal with rising energy and health care costs, and find ways to access affordable capital. To alleviate many of these burdens, we have passed initiatives in this Congress that provide the overall tools for entrepreneurial success. We have passed legislation that lowers the cost of loans and gives minorities greater access to SBA programs.

Through H.R. 3567, SBA's investment programs were improved and a new source of equity capital was open to entrepreneurs through angel investment. Also, small business contracting programs has been modernized, accountability has been increased, and fraud has been reduced. This makes sure small firms have fair access to the Federal marketplace and allows them to continue growing their companies and creating jobs.

In the aftermath of Hurricane Katrina, entrepreneurs were faced with delays in disaster loans, overwhelming amounts of paperwork, and a lengthy application process leaving them frustrated and discouraged. The RECOVER Act ensures that the SBA is prepared, has a large, well- trained disaster response workforce, and that delays and poor service encountered by victims of hurricanes do not happen again.

While critical, these initiatives are just the first step. The Small Business Programs Act of 2007 provides the vehicle for SBA's small business assistance programs to run and meet the needs of entrepreneurs in our changing economy. Most importantly, it gives the SBA the necessary resources to continue helping small businesses start and expand.

H.R. 3866 extends SBA's small business assistance programs for the next 2 years. Also, this bill provides the necessary authority for the SBA to carry out its lending and venture capital programs, ensuring SBA's initiatives are

the premier lending tools for entrepreneurs.

The SBA and its programs are vital to assisting small businesses across this country. Along with the Small Business Development Centers, Women Business Centers, and SCORE, the SBA has worked to meet the rising demand for services at a time when their budget continues to decrease.

These programs have a proven track record of success, but they require sufficient resources to be able to evolve and modernize. Clearly, in order for small firms to adapt to changing economic conditions, small business assistance programs must be adjusted. There is no larger job creator or greater impact on local communities in this country than small firms.

H.R. 3866 arms small business assistance programs with the tools that allow entrepreneurs to continue spurring economic growth.

I strongly urge my colleagues to vote for the Small Business Programs Act of 2007.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I have no further speakers, and I am prepared to close if the gentleman is prepared to close.

Mr. Speaker, I yield myself the balance of my time.

Mr. Speaker, there is no question that today's economic environment is increasingly difficult for small firms to thrive in. We have seen record highs in gas prices, unmanageable health care costs and barriers in the way of accessing affordable capital. Now, more than ever, small businesses need assistance programs they can rely on that are well- equipped to meet their needs. With the Small Business Programs Act of 2007 that is exactly what we are giving entrepreneurs.

This legislation ensures that our Nations's 27 million entrepreneurs have access to the business development assistance that they need and deserve. These firms employ one half of our workforce, spur economic development and revitalize our communities. When their businesses are growing and flourishing, the benefits are felt across the country.

With the passage of H.R. 3866, we set program levels for SBA's entrepreneurial assistance initiatives, updating and modernizing them. The primary role of the SBA is to help entrepreneurs who have the drive but need assistance. It is clear that small firms play a crucial role in our economy. By ensuring that these businesses have current and sufficient assistance, we are investing in our communities, helping to create jobs, and benefiting the Nation as a whole.

I would like to take this opportunity to thank Ranking Member Chabot for

your collaboration for us to work together in a responsible way, to follow regular order, and I am very proud that every time that we have considered legislation, we have done so in a very inclusive, open way and we can show results. With the passage of this bill, we have passed 15 bills through the House of Representatives. I am very proud of that product. It shows the things that can be done when we respect each other despite our differences. But we show the American public that we are willing to work together on their behalf.

I also would like to take an opportunity to thank the staff that worked on this legislation from the Small Business Committee majority staff, Tim Slattery and Michael Day, and from the minority staff, Barry Pineles, Kevin Fitzpatrick and Mike Smullen. I strongly urge my colleagues to vote for H.R. 3866, the Small Business Programs Act of 2007.

General Leave

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on H.R. 3866, as amended.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, I yield myself such time as I may consume.

Today, Mr. Speaker, I rise in support of the request to suspend the rules and pass H.R. 3866, the SBA Programs Act of 2007.

I would like to thank Chairwoman Velazquez for working in a cooperative and bipartisan manner to bring this bill to the House floor today.

The bill we are considering today is a highly technical bill, but one of the Small Business Committee's legislative obligations.

The financing programs in the Small Business Act and the Small Business Investment Act of 1958 rely on lending by the private sector. Lenders are protected by guarantees issued by the SBA, promising repayment if the small business borrower fails. Congress must impose limits on the authority of the SBA to issue such guarantees. H.R. 3866 establishes limits that will enable the program to operate even if there is unexpected demand.

Given the current credit crunch, it is certainly possible that the SBA will have a spike in demand. The limits adopted in this bill will ensure that, unlike in some prior years, the program will not be the subject of operational restrictions.

I want to point out that supporting these limits will have no budgetary impact. The SBA's guaranteed loan, certified development company, and debenture small business investment company programs also operate at zero subsidy. That means the programs require no appropriation, and losses are covered by fees charged to lenders and borrowers. Maintaining this zero subsidy still enables Congress to provide for significant expansion of the authorization in order to meet demand, while protecting taxpayers.

The microloan programs, which helps entrepreneurs in many low-income areas and is a valuable job creation tool for a modest investment by the government, also receives an increase in lending authority.

Given the value of the program, I believe that the modest increase more than pays for itself in providing jobs and developing the entrepreneurial culture that continues to maintain the economic viability of this Nation.

In addition, the committee must provide authorization levels for the Small Business Development Center program. The allocation of funds to various centers is based in part on a comparison of funds appropriated to funds authorized. Without an authorization level, the funding formula cannot work. It also is important to point out that the authorization level for the SBDCs is increased by around 3\1/2\ percent. This increase takes into account inflation and the administration's request that the centers provide even more counseling. The other major entrepreneurial outreach program of the SBA, the Women's Business Center program, receives an increase of around 17 percent. Now, while this may at first seem like a lot, the authorization in this bill represents the first time in nearly 8 years that the Women's Business Center authorization levels have been set thus representing an adjustment in align with inflation.

Similarly, the PRIME program, which provides additional technical assistance to microloan borrowers, has not received an authorization level since 1999. The authorization of $20 million in this bill represents an increase of $625,000 per year, or just enough, again, to keep up with inflation. I want to point out that the SBA requested a budget increase to cover inflation including the rapid rise in the cost of energy. It is only fair to authorize a similar modest increase for SBA's entrepreneurial outreach in education programs.

Other authorizations in this bill also represent either level funding, such as the SCORE program and the drug-free workplace program or represent very modest increases from prior authorization levels such as the $400,000 increase in funding for BusinessLINC, a valuable program that helps small businesses find contracts to supply large businesses with goods and services.

Two programs received significant boosts in authorization levels, the Office of Veterans Affairs and the HUBZone programs. In time of war, it is important that we provide assistance to our veterans. That includes ensuring that they have the tools necessary to integrate into civilian life through entrepreneurship. On a percentage basis, the authorization increase for the program is significant, but the dollar value is a modest $2 million. Given the sacrifices our veterans have made, this represents only a modest down payment on the debt we owe to them, our veterans.

As for the HUBZone program, the increase arises from the efforts of the committee to ensure that only firms eligible for participation in the program receive Federal Government contracts. This requires additional onsite verification and thus represents the committee's view to the appropriators to significantly increase funding in that area.

Again, I would like to thank Chairwoman Velazquez. Although there are significant philosophical differences between Members, I think the past year has demonstrated what can happen when this body tries to work through those differences without acrimony or questioning of the motives of the other side. Much can be accomplished for the American public, and that is what the people elected us to do. So I want to, again, commend the chairwoman for her willingness to work in a bipartisan manner not only in this bill but many bills that we have dealt with in the past.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I am prepared to close. I have no other speakers.

Mr. Speaker, I yield back my time.