Providing for consideration of the bill (H.R. 3854) to amend the Small Business Act and the Small Business Investment Act of 1958 to improve programs providing access to capital under such Acts, and for other purposes.

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

Mr. Chairman, I rise in support of this bill, which will enhance the SBA's capital access programs. This bill is a bipartisan product. It has the support of 48 stakeholder groups and could not have come together without the contributions of eight different committee members, including two from the minority. It addresses a key concern for small firms and ensures they have the resources to help grow our economy.

If history is any guide, small businesses will be the key to our recovery. Since our Nation's founding, they have helped us bounce back from countless downturns, including the recession of the mid-1990s. At that time, start-up businesses generated 3.8 million new jobs. And ultimately, Mr. Chairman, that is what our recovery efforts are all about, putting Americans back to work.

Through innovation and ingenuity, small businesses have created enormous wealth for our Nation. But America's economic engine doesn't run on good ideas alone. Small firms need capital to not only get off the ground, but to operate and grow. That is why H.R. 3854 delivers better funding options to small firms at every stage of development.

For the aspiring entrepreneur, it opens new avenues for seed capital and microloans. For the mid-market venture, it provides fresh funds for investment. And for the established business, it creates room for targeted risk and innovation. And it could not have come at a more critical time.

Small business lending is declining at alarming rates. In July, a survey by the Federal Reserve found that 35 percent of banks have tightened lending to small businesses. In terms of credit cards, a popular source of funding for entrepreneurs, 79 percent have seen their lines cut radically. These are exceptional declines. And if we fail to address them, we risk losing more than our most innovative businesses. We risk losing hundreds of thousands of jobs.

Small businesses with tight profit margins do not have the luxury of simply tightening the belt. When money is short, they are often forced to lay off workers. But with unemployment at 9.8 percent, we just cannot afford more losses. That is why this bill delivers critical capital to new ventures.

To begin, it helps steer equity investment to start-ups in high- growth fields like IT and clean energy. It also enhances SBA's microloan program. Two weeks ago, my committee heard from an entrepreneur who used microloans to grow his business from a fledgling firm to a thriving enterprise with 30 employees. By improving the microloan program, imagine how many more new businesses, and new jobs, we can generate.

Ask any small business owner, and they will tell you that start-ups are not the only firms that need capital. Established ventures in fields like manufacturing, for example, need funding to adapt to the changing marketplace. By improving the 504 program, this bill gives them the flexibility to purchase new equipment and otherwise retool operations. When paired with new initiatives like the New Markets Venture Capital and Renewable Energy Capital Investment programs, these efforts will help manufacturers emerge from the downturn stronger and better poised to create new jobs.

Meanwhile, we are also delivering important lending options to our Nation's veterans, offering reduced borrower fees and increased loan guarantees. As our servicemen and -women return home from deployment abroad, we need to be sure they have access to the economic opportunities that entrepreneurship offers.

Mr. Chairman, this bill is about choices. It is about better options for the small businesses that didn't get a bailout. H.R. 3854 provides critical funding to small firms in every industry and, most importantly, generates

jobs. In fact, it will create or sustain more than 1.3 million positions nationwide.

In the 111th Congress, job creation is our number one priority. It only makes sense to support legislation that gets us there.

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

Mr. Chairman, I would like to take this opportunity to thank the staff--from both sides of the aisle--that worked so hard on this bill.

From the majority--Michael Day and Andy Jiminez; and Ethan Pittleman from Mr. Schrader's staff.

From the minority--Barry Pineles and Karen Haas; and Max Goodman from Mr. Buchanan's staff.

Their efforts to ensure the members' priorities are included in this legislation are very much appreciated.

Mr. Chairman, the Small Business Committee is not alone in its commitment to small firms. Since the downturn began, we have heard countless calls from both sides of the aisle for a new economic foundation--one that puts Main Street before Wall Street and that values entrepreneurship over corporate greed. Well, this bill does both. By empowering small businesses, it makes a direct investment in the two things our economy needs most--innovation and job creation.

Capital is a fundamental building block for small business growth. Without it, new ventures cannot get off the ground and existing companies cannot hire workers. H.R. 3854 delivers the resources small firms need to grow. For small medical practices, it makes health IT more affordable. For entrepreneurs developing the next breakthrough in clean energy, it buys time for R&D. And for veterans and rural Americans seeking economic empowerment, it puts entrepreneurship within reach. Most importantly, however, this bill keeps workers on payroll. By allowing entrepreneurs to expand their ventures, H.R. 3854 will create and sustain more than 1.3 million jobs. In other words, Mr. Chairman, a vote for this bill is a vote for job creation. If you ask me, that is something we can all get behind, Democrats and Republicans alike, and I urge adoption of this bill.

Mr. Chairman, I have an amendment at the desk.

Mr. Chairman, the manager's amendment to H.R. 3854 makes technical changes to the bill and clarifies the legislative intent for several provisions contained in the legislation. More importantly, the manager's amendment incorporates additional changes that were suggested by Members of the House that will greatly improve the working of the bill.

The amendment will improve the delivery of investment capital for veteran-owned businesses through the New Markets Venture Capital program. This language was suggested by Mr. Jason Altmire, a member of the Small Business Committee, and I was happy to include it in the amendment.

Another member of the committee, Representative Bean, also contributed language to the amendment which will improve access to the SBA's lending programs for franchise small businesses. This, too, greatly improves the bill.

Representative Connolly contributed language to study the role that the private sector has played in providing small business access to capital over the past 4 years, and provisions that will study the effect of the increased loan size limits contained in the underlying legislation was suggested by Representative Pingree.

Additionally, Representative Baird has suggested the SBA conduct a study to examine the efficacy of the ARC loan program that was established under ARRA.

Together, these provisions will significantly improve our understanding of the state of small business access to capital, and I am grateful for their contributions.

I would also extend my thanks to Representative Boswell for his suggestion to include language that will enhance the ability of small firms to use 7(a) loans to purchase unoccupied manufacturing centers and equipment. This will surely help revitalize communities that have suffered from the loss of their manufacturing industries, as will language contributed by Representative Costa which will make more loans available for communities with unemployment that exceeds prevailing State levels by 25 percent.

Together, these changes made by the manager's amendment will significantly improve the ability of H.R. 3854 to deliver capital and credit to small businesses. I thank the Members that contributed to it, and I urge its adoption.

I reserve the balance of my time.

Mr. Chairman, I yield 2 minutes to the gentleman from Iowa (Mr. Loebsack).

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

Mr. Chairman, while not opposed to the amendment, I ask unanimous consent to claim the time in opposition.

Mr. Chairman, one of the greatest challenges small firms are facing is banks' reluctance to lend. Liquidity issues are one reason for this. But equally important are the regulatory burden and capital reserves lenders are now expected to carry. As critical as it is to get capital back into the markets, we also need to be sure banks are properly regulated. At the same time, we need to increase lender confidence in SBA.

Mr. Schock's amendment gets to the heart of both issues. Increasingly, we have seen incidents in which lenders believe they are following all the agency rules only to discover that SBA won't honor its guarantees. When this happens, it compounds the chilling effect already plaguing the markets.

This amendment will make it clear to lenders that if they make a good-faith effort to perform due diligence on loans and complete SBA training programs, their guarantees will be honored. In doing so, we can increase lender confidence and open the door to improved small business lending. And we can do so in a way that mitigates risk to the taxpayers.

This is a valuable amendment, and I urge Members to support it.

I now yield to the gentleman from Missouri for any comments that he might have.

If the gentleman is prepared to yield back, we're prepared to accept the amendment.

Mr. Chairman, I urge adoption of the amendment, and I yield back the balance of my time.

Mr. Chairman, green energy presents a world of opportunity for our economy. In terms of job creation, it has already generated millions of high-wage positions for workers in fields ranging from engineering and IT to agriculture and construction. Small firms make up the lion's share of this growing sector, and they will play a key role in our Nation's efforts to reduce carbon emissions and break free from foreign oil. But they cannot do it without the capital to continue research and production.

H.R. 3854 delivers critical capital to the small businesses driving the clean energy sector. Mr. Schock's amendment enhances those efforts by adding an important element of transparency. By requiring SBA to release quarterly reports on the Renewable Energy Capital Investment Program, we can gauge the agency's progress in expanding the initiative. We can also pinpoint areas that are working and identify places in need of improvement. Meanwhile, this amendment mandates the timely establishment of program regulations. That measure should expedite the program's expansion and increase overall efficiency.

These are critical improvements, and I urge support of Mr. Schock's amendment.

I will now yield to the gentleman from Missouri for any comments that he might have.

Mr. Chairman, if the gentleman is prepared to yield back, we're prepared to accept the amendment.

Mr. Chairman, traditionally, the SBA has been vitally important to rural businesses. For many years, rural lenders served as the backbone of the Small Business Administration's lending programs, delivering capital to areas of the country that don't have the same options as other parts of our Nation.

For a range of reasons, over the last 8 years, we have seen many of the SBA rural lenders disappear. This is a troubling trend. It means that businesses on Main Street cannot find the credit they need to expand a store, build a new plant, or simply upgrade their facilities. Without a strong selection of rural lenders, we are beginning to see the emergence of a credit gap. Rural areas have the same need for jobs that the rest of America does, and it is important that they have a chance to create them.

H.R. 3854 includes a provision targeted specifically at encouraging lenders to provide credit to entrepreneurs in rural America. The Rural Lender Outreach Program helps line up lenders in this part of America to expand capital access options for businesses.

Mr. Bright's amendment addresses the other side of that coin, ensuring that businesses know these rural lenders are out there. By challenging the SBA to connect with rural businesses and requiring the SBA's district offices to engage in outreach, we can put these entrepreneurs in touch with local lenders.

Small firms' potential for job creation should not be limited to certain parts of the country. This amendment will ensure that we prevent this ``credit gap'' from growing, so that small businesses, no matter where they are located, find financing options that work for them. This is an important change to today's legislation, and I ask my colleagues to support it.

I yield to the gentleman from Missouri (Mr. Graves) for any comments he might have.

Mr. Chairman, I now yield 1\1/2\ minutes to the gentleman from Iowa (Mr. Boswell).

(Mr. BOSWELL asked and was given permission to revise and extend his remarks.)

Mr. Chairman, if the gentleman from Alabama is prepared to yield back, we are prepared to accept the amendment.

Mr. Chairman, in the 111th Congress, this body has made transparency a top priority. That is why we have adopted rule XI, which requires quarterly hearings on fraud, waste, abuse and mismanagement of Federal programs. But our commitment to good government extends beyond the committee room, which is why I am glad to accept Mr. Flake's amendment. That said, I want to point out that small business programs are not vehicles for waste. They are important avenues for economic growth, not earmarks.

I don't think there is a single person in this room who doesn't want to see small businesses succeed. After all, they create the lion's share of new American jobs, and we are counting on them to strengthen our economy.

It would not be in the best interest of this body or of our great Nation to compromise the integrity of SBA's programs. These initiatives deliver the best bang for the taxpayer's buck, and ultimately return more money to the economy than they take out. Mr. Flake's amendment is a simple affirmation of that fact, and I am willing to accept.

I now yield to the gentleman from Missouri (Mr. Graves) for any remarks he may have.

Mr. Chairman, I urge everyone to support the amendment. I reserve the balance of my time.

Mr. Chairman, I demand a recorded vote.

Mr. Chairman, growth in our economy has long depended on the progress of new industries. When our country bounced back from the recession of the 1990s, it wasn't because we simply rebuilt jobs where they once had been; it was because we created new ones entirely. And we did so in emerging industries like information technology. Today, we have a similar opportunity with growing fields like photonics, the science that uses light energy to power and improve everything from telecommunications to electrical systems.

Photonics technology touches virtually every industry. Through the leverage of public-private partnerships like SBIR, it is already sparking breakthroughs that impact our everyday lives, for example, better bar codes for scanning groceries, or less invasive forms of laser eye surgery. With new investments in this promising field, we can build the kind of innovation America needs. That is why we will be adding photonics to the roster of business sectors that can receive early-stage investment grants.

Ms. Kosmas' amendment is a valuable one, and I urge my colleagues to support it.

I now yield to the gentleman from Missouri for any comments that he might have.

Mr. Chairman, if the gentlelady is prepared to yield back, we are prepared to accept the amendment.

I urge adoption of the amendment, and I yield back the balance of my time.

Mr. Chairman, the wide-scale adoption of medical records is one of the most sweeping and most important elements of health care reform. It will improve efficiency, reduce costs and streamline communication. But like any other ground-breaking technology, it isn't cheap. For your average small medical practice, initial costs are roughly $100,000. When coupled with today's larger legislation, Mr. Gingrey's amendment will help blunt those expenses. By some estimates, the nationwide adoption of health IT will spur annual savings of $77 billion. Already many major hospitals and medical practices are enjoying these cost-cutting benefits. Small firms, however, have been reluctant to adopt it. In fact, only 13 percent of solo practitioners use the technology. The gentleman's amendment recognizes the benefits of health IT and improves the bill, and that is the reason why we are supporting this amendment.

I would now like to yield to the gentleman from Missouri for any comments that he may have.

Mr. Chairman, if the gentleman is prepared to yield back, I am prepared to accept the amendment.

Mr. Chairman, entrepreneurship has long been a popular option for America's veterans. After all, it requires many of the same traits

that military service does--hard work, ingenuity and dedication to something larger than yourself. So it is not surprising that veterans own roughly 15 percent of our Nation's small businesses. What is surprising, however, is the rate at which lending to these companies is declining. Between fiscal year 2007 and fiscal year 2008, the number of 7(a) loans to veteran-owned businesses dropped more than 22 percent. In other words, entrepreneurship is being pushed further and further out of reach for our veterans.

Earlier this year, the House passed legislation establishing new veteran entrepreneurial development programs at SBA. This legislation will mean a range of new services for veterans. One of the most important goals was helping meet veteran-owned businesses' capital needs. The amendment offered by Mr. Kratovil builds on that earlier work. His amendment will ensure that veterans not only access the capital they need but lets them do so at affordable rates. By providing higher guarantees on loans and lower costs, we can offer new opportunities for veterans who own businesses as well as those who wish to start one.

For our servicemen and -women, entrepreneurship is the tried and true path to economic empowerment. This amendment will put more veterans on that path. This is a positive change to the legislation, and I urge my colleagues to support the amendment.

I yield to the gentleman from Missouri for any comments that he may have.

Mr. Chairman, if the gentleman is ready to yield back, we are prepared to accept the amendment.

Mr. Chairman, small businesses are our Nation's most prolific innovators. Time and time again, they have pioneered new fields, developed new products and achieved important technological breakthroughs.

Today, small businesses are breaking new ground in the energy sector. As our Nation undergoes a green revolution, small businesses are leading the way in developing solar power. They are blazing the trail in the development of wind power and biodiesel, and renewable fuel industries are dominated by small businesses. Just as small firms are on the leading edge of developments in the energy sector, they also play an active role in the development of new medicines and medical devices.

The gentleman from Minnesota is suggesting that the SBA look into the feasibility of an initiative to help raise capital for entrepreneurs in the medical field. Given the important role that small firms play in this arena, at least exploring the possibility of an SBA program to assist them in capital formation seems prudent.

I urge adoption of the amendment.

I yield to the gentleman from Missouri for any comments that he might have.

Madam Chair, if the gentleman is prepared to yield back, we are prepared to accept the amendment.

Madam Chair, I urge adoption of the amendment.

I yield back the balance of my time.

Madam Chair, while not opposed to the amendment, I ask unanimous consent to claim the time in opposition.

Madam Chair, young people have been acutely affected by this recession.

Americans graduating from high school or college face one of the most challenging job markets in decades. In some communities, this problem is driving recent graduates to other parts of the country as they seek economic opportunity. This means that communities which are hard hit by the downturn will have even more difficulty as they are deprived of their next generation of workers. This drain of young talent presents additional challenges for local economies that are struggling to recover.

Entrepreneurship can provide another option for young people who are living in economically hard-hit areas. However, younger individuals also face unique challenges in starting or launching their own businesses. Finding affordable loans without an established credit history can be an obstacle. Many young people may not have the large reserves of capital that older, more established entrepreneurs have. In addition, younger entrepreneurs may not have as much experience in the job market. All of these factors present difficulties to young Americans who want to go into business for themselves.

By creating an initiative through the SBA's Microloan Program, this amendment will help overcome these problems. With appropriate guidance and assistance, many young Americans can go into business for themselves. This amendment also recognizes the capital constraints that many young entrepreneurs face. It gives a younger entrepreneur who qualifies for the Microloan more time for repayment.

Madam Chair, our Nation's greatest resource has always been our young people. They will certainly play a vital role in lifting our Nation out of the current downturn. This amendment will give more young Americans the opportunity to launch their own ventures. This is a good amendment, and I support its adoption.

I now yield to the gentleman from Missouri for any comments that he may have.

Madam Chair, we are prepared to accept this amendment, and I urge its adoption and support.

I yield back the balance of my time.

Madam Chair, virtually every sector of the economy has suffered at the hands of the downturn. The construction industry, however, has seen some of the most significant declines. According to a study by the Associated Equipment Distributors, two out of every 25 jobs lost in the recession were construction jobs. Nationwide, the industry has shed 37 percent of its workforce. Those losses are larger than either the automobile or financial sectors. Clearly, we need to be addressing this issue.

By providing better terms for 7(a) loans, this amendment will give small construction firms the flexibility to hire new workers. Allowing these businesses to defer repayment for up to 12 months also means they have greater capital for new investments. After all, equipment purchased, items such as cement mixers and bulldozers, are expensive. Most small firms rely on loans in order to buy these items.

With the housing market recovering and the new transportation bill working its way through Congress, we should see new opportunities for small construction firms. Mr. Kissell's amendment gives the resources they need to take advantage of those opportunities, and I urge my colleagues to support it.

I yield to the gentleman from Missouri for any comments that he might have.

If the gentleman is prepared to yield back, we are prepared to accept the amendment.

I yield back the balance of my time.

Certainly times are tough and many Americans are hurting because of the economic downturn. But, as they have done before, American entrepreneurs will lead us out of this downturn and begin rebuilding our economy. This amendment is about harnessing the job-creating potential that exists in communities that are suffering the worst of the downturn. It is about using the American entrepreneurial spirit to deliver hope to places that need it most.

As part of the Recovery Act, we aimed to help small businesses with short-term, interest-free loans. So far, this program has funneled $115 million to 3,500 businesses. With this amendment, we will make more of these loans available to businesses in economically distressed areas. By giving these businesses more time to start repayment, we will provide them a better chance to stay afloat and ultimately grow and create jobs.

This is a good amendment. I thank the gentleman from Michigan for offering it. I urge its adoption.

I now yield to the gentleman from Missouri for any comments that he may have.

Madam Chair, I yield 1 minute to the gentleman from Michigan (Mr. Schauer).

Madam Chair, I yield 1 minute to the gentleman from Michigan (Mr. Kildee).

Madam Chair, if the gentleman from Michigan is prepared to yield back, we are prepared to accept the amendment.

Madam Chair, we are prepared to accept the amendment if the gentlelady from Michigan is prepared to yield back.

Madam Chair, if the gentlelady from Michigan is prepared to yield back, we are prepared to accept the amendment.

Madam Chair, I strongly support this amendment and now would like to yield 2 minutes to one of the cosponsors of this amendment, the gentleman from Florida (Mr. Buchanan).

Madam Chair, I yield 1\1/2\ minutes to the gentleman from Louisiana (Mr. Cao).

Madam Chair, I yield 1 minute to the gentleman from Florida (Mr. Mario Diaz-Balart).

Madam Chair, if the gentleman from Virginia is prepared to yield back, we are prepared to accept the amendment.

Madam Chair, I urge adoption of this very important amendment, and I yield back the balance of my time.

Madam Speaker, while not opposed to the motion, I ask unanimous consent to claim the time in opposition.

While I am not opposed to the motion, I do want to make some observations. While the gentleman is interested in studying the problems, we are interested in real solutions, and the bill under consideration does that. This bill provides $44 billion in capital for our small businesses, helping address the number one issue facing small firms right now. This bill will create 1.3 million jobs. Initiatives in this legislation will be specifically targeted to veterans and businesses located in rural communities. This legislation is supported by over 50 business organizations, representing small businesses in the health care, financial services, agriculture and technology industries.

What I would like to see the gentleman add to the study is how small businesses have benefited from increased expensing limits for purchasing equipment, extended bonus depreciation, reduced capital gains rates on small business stock, and allowing businesses to carry back 5 years of losses. Let's add that to the study.

It is interesting to see how the gentleman would like to study things that haven't happened, like offsetting the reduction in capital available for such concerns resulting from an increase in tax on capital gains. Are we going to study things that haven't happened? Does the gentleman have a crystal ball? Because if he does, I would like for him to tell me who is going to win the World Series. This is a motion that does nothing to provide loans to small businesses or create jobs. But if the gentleman wants to do a study, so be it.

I yield back the balance of my time.

Madam Speaker, pursuant to the instructions of the House in the motion to recommit, I report the bill, H.R. 3854, back to the House with an amendment.

Madam Speaker, on that I demand the yeas and nays.

Mr. Speaker, I appreciate the gentlewoman yielding me the time. I yield myself such time as I may consume.

Mr. Speaker, we've just heard our good friends from the Democratic Party talk about wanting to support small business. I think it's interesting that today this bill is all about making sure the government has money available to loan to small business because we want them to be successful, and yet this committee and this Congress, under the Democrat leadership, ignores the leading four or five different items that small business would say they need the most to be successful to grow, to expand, to continue employment, which is the backbone of the economy.

High taxes, depreciation--this next week the biggest killer of them all, after we pass this bill, the health care bill is going to come on the floor which will kill small business. President Obama's own numbers say 4.7 million

jobs will be lost with the health care bill. It will tax small business. It will bring enormous rules and regulations, and yet here we are, talking about wanting to help small business today. If you really want to help, first of all, you ought to get out of the way; secondly, don't pass rules, regulation, laws, taxation that diminish small business.

So, with that said, I am delighted to be on the floor to talk about this Small Business Financing and Investment Act. In the Rules Committee, it was plain and simple that not allowing an open rule this year is where we continue. There is plenty of time for my friends on the other side of the aisle to allow for an open rule today to discuss the 42 amendments that were offered in the Rules Committee, of which only 16 were made in order.

I offered an amendment to the Rules Committee last night that was voted down by my Democrat colleagues. My amendment would have benefited small businesses by allowing them to choose the asset depreciation schedule that best suits their individual businesses. Today we have a depreciation schedule that is entirely formulated by the government, to the detriment of the free enterprise system and small businesses. The current system of asset depreciation inhibits economic growth. That's right. It forces companies to depreciate their assets over an arbitrary period of time. It competes against business, and certainly small business, by making sure the government gets their money first. Congress needs to create incentives for American businesses to reinvest in their companies, buy new equipment and hire more workers, not the opposite.

Small business employs about half of all Americans, and they are critical to our economic growth. But tax policies out of Washington by this Democratic Congress are making it harder and harder for them to do business. Also add in rules, regulations and a political agenda that will lose a net 10 million American jobs, most of them small business, just with the three biggest political agenda items that the Democratic Party has, 10 million American jobs lost, and that's the political agenda.

If this Democrat majority really wants to help small businesses, they would have allowed some commonsense amendments to come forth to the floor, by the way, amendments that small businesses ask for the most. I plan on using this opportunity to talk about our economy, the Nation's diminishing job numbers, the future of government mandates, and tax increases that will continue to stifle our economy and cut U.S. jobs. This is the Democratic Party's agenda, to kill the free enterprise system in America, and the starting blow is these three major political agendas that will lose a net 10 million American jobs.

Mr. Speaker, the Obama administration promised Americans that if Congress passed the stimulus package, that unemployment would not go above 8 percent, that it would create and save millions of jobs. Here we are 9 months later with a record 9.7 percent unemployment rate, the highest in 26 years, and more than 2 million Americans have lost their jobs since the stimulus package of $1.2 trillion.

What do we see from the White House? Lavish parties, trips to New York, just a whole lot of fun, everything but this President focusing on what any economist would say will create jobs in this country, what will keep the jobs that we have in this country. So my colleagues on the Democratic side continue to push their agenda that increases costs, increases taxes for individuals, while shrinking our Nation's workforce.

By the way, the Nation's workforce is called American jobs. By the way, those evil corporations that our friends, the Democrats, are after are called employers. Let's just put them at bay, and you will see no job employment.

In June, my friends on the other side of the aisle passed a cap-and- trade, or what is commonly called cap-and-tax, bill that will raise prices on energy, raise prices on goods, raise prices on services for every single hardworking American in this country. In my home State of Texas, the average household can now expect to spend more than $1,100 extra a year if this bill passes as a result of this legislation, and this legislation could diminish over 1.38 million manufacturing jobs.

In my book, manufacturing is small business. Just today congressional Democrats had a great big press conference that looked more like a victory lap to me, thinking that they're going to pass this bill that was 1,990 pages, a sweeping health care bill that effectively will continue to shrink the employer base. It will shrink the employer-based insurance market and force 114 million people into an unsustainable government-run program, a program where government bureaucrats will be choosing what doctors a patient can see and, further, what procedures will be paid for for that doctor.

This trillion-dollar package also raises taxes on individuals, it raises taxes on small businesses that do not participate in the government plan, and up to $800 billion will be spent, according to a model developed by the President's own economic adviser, and it will diminish between 4.7 and 5.5 million more American jobs, using the President's own figures. Most of those will come from small business.

Well, hold it. I thought we were here to help small business today. But don't worry, next week we'll go ahead and pass a bill that will diminish between 4.7 and 5.5 million more American jobs. No wonder the American public can't figure out what's going on in Washington. One week we're saying, We're trying to help you, and the next week, I'm sorry about that, but somebody else's job is more important than yours.

Earlier this month, the Treasury Department reported that the Federal budget deficit reached a record $1.1417 trillion during the month of September. The Treasury Department also reported that the national debt reached $11.9 trillion. This means that since 2007, the Obama administration and this Democrat Congress have increased the Federal deficit by over $1.25 trillion and increased the national debt by over $3 trillion. When will it stop? No wonder we're losing small business jobs. No wonder we're losing American jobs. No wonder the American people are saying, What is going on in Washington, D.C.?

The Democratic majority is taxing, spending with more rules and regulations, and the jobs--let's get this right--are leaving. They're leaving this country, and they're going somewhere else. We aren't just losing the jobs. They're going somewhere else. We've asked this administration, we've asked this Democrat majority, Where are the jobs? Where are the jobs you promised? We've spent a lot of money. Where are the jobs?

In closing, Mr. Speaker, this legislation--yeah, I would offer some assistance to small business, but I believe there are more effective ways to assist them during the economic crisis. For instance, not growing the size of government just to give them, small business, a loan. We should be doing things to improve small business by expensing, by permanently repealing the death tax, by extending tax relief, by improving regulatory reform, by not adding a cap-and-trade bill, and by golly, for sure not next week trying out and then passing a health care bill which will diminish American jobs.

Mr. Speaker, we have a lot to say. There is a lot of time today, but what we want is for the American people to become engaged in what's going on in Washington, and I think they're watching.

I will be asking for a ``no'' vote on the previous question, a ``no'' vote on the rule.

I reserve the balance of my time.

Mr. Speaker, I yield 8 minutes to a very distinguished young gentleman who is an arch supporter of not only small business but who remembers that, if we will balance the budget, the free enterprise system will grow, the gentleman from Mesa, Arizona (Mr. Flake).

Mr. Speaker, I would like to inform my colleague that I do not anticipate having any additional speakers at this time, and I would allow the gentlewoman to run down any time she has with the knowledge that, before she would close, I would do the same.

I reserve the balance of my time.

Mr. Speaker, over the last few months, the American people have written and called their Members of Congress. They've attended town hall meetings. They've been in the media, on the news, in the newspapers, and they have asked that all Members of Congress read their bills before they vote on them. The American people are outraged.

That's why, today, we will be asking for a ``no'' vote on the previous question, because we believe that this process is closed and not open to amendments that would need to be done, which the American people are asking for, including small businesses. We can see what's getting ready to happen next week when we handle the health care bill. So I will be asking for a ``no'' vote on the previous question so we can amend the rule and can allow the House to consider an open bill for H. Res. 544, a bipartisan bill by my colleagues Representatives Baird and Culberson. They have gathered together to make sure that all of the bills of interest would be allowed to be read for 72 hours.

I also ask unanimous consent to insert in the Record an amendment and extraneous materials prior to the vote on the previous question.

I yield back the balance of my time.

Madam Speaker, by direction of the Committee on Rules, I call up House Resolution 875 and ask for its immediate consideration.

Madam Speaker, for the purpose of debate only, I yield the customary 30 minutes to the gentleman from Texas (Mr. Sessions). All time yielded during consideration of the rule is for debate only.

General Leave

I ask unanimous consent that all Members be given 5 legislative days in which to revise and extend their remarks and include extraneous remarks on H. Res. 875.

I yield myself such time as I may consume.

Madam Speaker, H. Res. 875 provides for consideration of H.R. 3854, the Small Business Financing and Investment Act of 2009, under a structured rule. The rule self-executes an amendment that removes direct spending from the bill, thereby making the underlying bill PAYGO compliant. The bill makes in order 16 amendments printed in the Rules Committee report. The amendments are debatable for 10 minutes each, except for the manager's amendment which is debatable for 20 minutes.

Additionally, the rule provides authority for the Speaker to entertain motions to suspend the rules through Friday of this week for a measure addressing unemployment compensation.

Madam Speaker, today we will pass a very important piece of legislation that will directly help small businesses from around our country. H.R. 3854, the Small Business Financing and Investment Act of 2009, increases the loan limits available for small businesses through the SBA; it promotes increased private investment in small businesses; it provides increased resources for businesses working in the field of renewable energy; and it supports our veterans returning from Iraq and Afghanistan seeking the capital they need to start or to grow their businesses.

What this bill does beyond anything else is provide much-needed support for Main Street to help small entrepreneurs grow, save, and create jobs. As President Obama said last week, supporting small businesses needs to be our highest priority because when small businesses are succeeding, America succeeds.

When I return to my home State of Maine, I hear from small businesses week after week that access to capital is one of the most difficult challenges that they face. The credit market has been drying up, and small businesses have been hit hard.

Earlier this year, my office hosted an event focused specifically on connecting small businesses with capital, including SBA programs. The response was overwhelming. We had hundreds of small businesses RSVP to attend, so many that we needed to reserve an overflow room to accommodate the demand. These were businesses of all types and sizes, and many of them had driven hours to come to the workshop. They came to this meeting because they felt they had nowhere else to turn.

SBA programs have been an important resource for businesses during this economic downturn, and this bill will take important steps to increase access to and the success of these programs. I want to take a minute to give you a couple of examples from my State of how SBA loans are working to support small businesses.

A company named ALCOM was established by Tom Sturtevant and his stepson, Trapper Clark, in 2006 and is one of the largest manufacturers of aluminum trailers in the northeast. With an SBA loan under the 504 program, this business was able to construct a new, 70,000-square foot manufacturing facility with much-needed space for expansion while enhancing the flow of inventory, and they were able to hire 15 new workers. This is a family-owned business with good-paying manufacturing jobs that has been able not only to survive in the current economic climate, but grow thanks to an SBA loan.

Julia McClure opened Sweets & Meats, a market in Rockland, Maine, earlier this year, thanks to financing she received through the SBA's 7(a) program. Women-owned enterprises is the fastest growing business group, and this grocery store, specializing in local meats and produce, is a great example of how the SBA has worked to support these entrepreneurs.

Casco Bay Molding in Sanford, Maine, is an injection molding company founded by Andy Powell. After working to develop a customer relationship with Flotation Technologies, another Maine-based company and a world leader in buoyance systems, these two companies worked to design and implement a new line of proprietary, deepwater oil and gas exploration and harvesting equipment.

This new demand meant that Casco Bay Molding needed to upgrade to compete with much larger molding shops in the region. With a loan under the SBA 504 program, this small business was able to upgrade their equipment, meet the demand, and employ five additional people in their community in good-paying manufacturing jobs. Furthermore, by helping Casco Bay Molding to succeed and grow, this loan supported other local businesses, like Fiber Materials, providing them the benefits of an expert injection molding operation within close proximity to their manufacturing facility.

This is a great example of the exponential impact that investment in small businesses has in all of our communities, one that expands small businesses, creates new, good-paying jobs, rewards ingenuity, and supports Main Street through this economic downturn.

The problem is there are not enough of these success stories. Small businesses are desperate for credit to expand and grow, and SBA programs, as they currently stand, simply cannot meet this demand. That is why this bill is so important. It will expand and develop these vital programs, including the 7(a) and 504 programs, to better meet the needs of all small businesses.

Mr. Speaker, all across this country, small businesses have struggled during these difficult times through no fault of their own. They didn't cause this economic crisis, but they can help to lead us out of it, and we have to help them access the funding they need to survive, grow and to expand their businesses. The jobs they create today will bring economic growth and prosperity to our communities tomorrow if we just give them the chance.

I urge my colleagues to support this bill today and the underlying bill. As Rumery's Boatyard, another SBA loan recipient from Maine told me, it is imperative that we support our small businesses and ensure that they are ready to go once the economy fully recovers.

I reserve the balance of my time.

Mr. Speaker, before I yield to one of my colleagues, I do want to point out that while my good colleague from Texas (Mr. Sessions) has indeed stated many issues of concern to small businesses, that the amendment he proposed in the Rules Committee was nongermane and also violated the PAYGO rule. I suspect that's why my colleagues on the Democratic side voted against that particular amendment.

Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from California (Mr. Costa).

Mr. Speaker, I want to point out that the gentleman who just spoke does have one amendment in order under the rule.

I yield 2 minutes to a member of the Small Business Committee, the gentleman from Pennsylvania (Mr. Altmire).

Mr. Speaker, I yield 3 minutes to the gentleman from Wisconsin (Mr. Kind).

Mr. Speaker, I want to again highlight what we are considering here today.

This is a bill that will support small businesses when they need it most--access to the financing they need to survive, to grow, to expand, and to create the jobs that will drive our economy. I know this is essential as I have heard from businesses throughout the 125 towns in my congressional district.

In fact, I have owned small businesses for most of my adult life. For many years, I owned a business that sold our products around the country and grew to employ 10 people in a town with just 350 residents. I currently own an inn and a restaurant that uses produce grown in my community and seafood caught locally. I know what it is to be the last person to lock the doors at the end of the day, to meet a payroll, and to argue with the bank about borrowing money to expand.

Mr. Speaker, I have been lucky to own a small business which has been an important part of my community and which has provided jobs, but I never would have been able to survive without access to the investment the business has needed to grow.

When facing the economic climate that we currently do, it is vital that we do everything in our power to support the small businesses that create 64 percent of the new jobs in this country, that comprise more than 99 percent of all employer companies, and that are the backbone of the communities that we live in.

This bill is an important step in supporting those small businesses-- with $44 billion in lending that will help save or create 1.3 million jobs each year and by ensuring that small businesses have the necessary capital to stay in business and to expand as the economy recovers. This bill is more than simply an investment in small business; it is an investment in American job growth.

I urge a ``yes'' vote on the previous question and on the rule.

I yield back the balance of my time and move the previous question on the resolution.

The previous question was ordered.

Mr. Chairman, I have an amendment at the desk.

Thank you, Mr. Chairman.

First, I would like to thank Chairwoman Velazquez for her work on this very important bill and the bipartisan way in which she has carried the work of this committee out. I am truly grateful for her efforts, as well as Ranking Member Graves for his leadership on our side of the aisle to incorporate Members' ideas into this bill.

This legislation here today is intended to increase credit options for small business owners in America. I rise today to offer a simple amendment to this important legislation which will help small businesses across the country have greater access to necessary capital. Such support is needed, not only to sustain their operations but also for these small businesses to be able to expand their production capabilities and profits, and ultimately to lead to more jobs and opportunities for our citizens.

It is no secret that small businesses are the engine that drive the American economy. Currently creating seven out of the 10 new jobs in America, increasing lending options and capital for small business is vital to leading our country out of this current economic downturn.

I am glad today that this body is taking the necessary steps to help our small businesses grow, finally recognizing the significant role that small businesses will play in any economic recovery. It is no secret that one of the greatest disappointments my colleagues on this side of the aisle had in the so-called ``stimulus'' legislation was that it did not do enough for small businesses. Here today we are trying to rectify that.

That said, I am offering this simple amendment, which is backed by both the American Banking Association as well as those small independent community bankers, which I believe will help incentivize increased SBA-backed lending to small businesses from more and more banks across this country.

The legislation before us sets up important guidelines to the National Lender Training Program for banks to follow if they would like to be considered preferred lenders, thus obtaining easier access to carry SBA-guaranteed loans.

While the significance of establishing such a unified training program for lenders to follow cannot be understated, it is equally important that we reward those who complete such training with the true guarantee from the SBA on the loans that they offer to businesses. As is, the SBA currently fails to pay on claims of somewhere between 5 and 10 percent of the loans they guarantee, therefore causing fear in the minds of lenders who would otherwise offer a loan.

This amendment will ensure that the SBA will pay out on a guarantee to any lender who can demonstrate that they followed the prescribed training under the National Lender Training Program. If the SBA refuses to pay on such a claim, they must present clear and convincing evidence as to how the lender failed to meet any requirements of the training program. With this type of assurance of lender compensation for SBA- guaranteed loans in default, banks across this country will be more likely to lend to small businesses, ultimately helping to loosen credit markets, get capital flowing again, and put people back to work.

While I appreciate this legislation's efforts to extend loan guarantees from the SBA, it is equally important that we ensure the SBA pays out on those guarantees should such loans go into default. Removing the ambiguity of the SBA to decide which lenders get paid on guarantees and which do not will result in more banks being willing to participate in these programs and, ultimately, more loans being made to our Nation's small businesses.

I urge adoption of this amendment.

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

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

Mr. Chairman, I rise today to offer one more additional change to this important legislation which I believe will help obtain some of its intended goals.

While H.R. 3854 has several initiatives aimed at increasing capital access for small businesses, it additionally makes several SBA programmatic changes. One such change is intended to increase small business and small manufacturer participation in renewable fuels and green industries through an overhaul of the already established Renewable Energy Capital Investment Program.

Less than 1 month ago, the Small Business Subcommittee on Contracting and Technology held a hearing where one of my constituents from Peoria, Illinois, Dr. Peter Johnsen, testified. Dr. Johnsen shared with that committee the difficulty he was having in finding capital investments or loans for the further development of the crop known as pennycress, a winter cover crop which yields potentially as much as 115 gallons of biodiesel per acre as compared to the current 59 gallons from traditional soy-based diesel, nearly twice as much output. I'm optimistic that operating at full potential, the Renewable Energy Capital Investment Program with its matching grant contributions would be of great assistance to agricultural entrepreneurs across our country like Mr. Johnsen.

Established in 2007, the Renewable Energy Capital Investment Program, formerly known as the Renewable Fuel Capital Investment Program, has been a shadow of its promised self. In fact, to date, the SBA Administrator has failed to even issue any rules or regulations for small business participation in the program despite its establishment nearly 2 years ago. This amendment would first place specific emphasis on requiring the SBA to release regulations for program participation within 180 days of enactment of this legislation.

Additionally, the underlying legislation allows for a yearly progress report from the SBA concerning this important program. Unfortunately, this program is too important and its potential too great for Congress to simply sit by for a year and wait for the SBA to act. This amendment will require quarterly progress reports concerning the status of the Renewable Energy Capital Investment Program, what steps the SBA is taking to encourage and promote participation, and, finally, how this program is being utilized by the small business community.

No longer is the renewable fuels market dominated by those with deep research and development pockets backed by larger corporations. This important program will help ensure small businesses get equal opportunity to participate in the effort to make our country more energy efficient while also establishing new renewable fuel sources.

For these reasons, I urge adoption of this amendment.

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

Once again, I thank Chairman Velazquez for her bipartisan work on this and her leadership, and I yield back the balance of my time.

Madam Chair, I have an amendment at the desk.

Madam Chair, my intentions were to offer an amendment today that would provide an opportunity to do what I think all of us on both sides of the aisle want to do, which is to have effective programs which help our citizens in this country. However, we've discovered that there are problems with the amendment as it has been drafted, and so it is my intention to withdraw the amendment at the end of my comments.

Multiple reports from the Government Accountability Office found duplicative programs across the Federal Government. These programs included 342 economic development programs; 130 programs serving the disabled; 130 programs serving at-risk youth; 90 early childhood development programs; 75 programs funding international education, cultural, and training exchange activities; and 72 safe water programs.

These are noble goals with good intentions, but they are no excuse for Congress to abrogate its responsibility to reexamine programs that may have become wasteful or duplicative since their inception.

Just yesterday, there was an article in CongressDaily about a situation that should not exist:

``Influential Senators raised fresh concerns about the $7.2 billion broadband stimulus program during an oversight hearing Tuesday, complaining that it is divided between two Federal agencies when only one is necessary.''

`` `There shouldn't be two of you here. Only in the Federal Government would we have two people doing the same thing,' said Senator Claire McCaskill, Democrat of Missouri, in a blunt assessment of the situation, which she described as `nonsense.' ''

[From Congress Daily, Oct. 28, 2009]

Red Tape Could Hurt Broadband Program, Senators Warn

(By David Hatch)

Referring to Rural Utilities Service Administrator Jonathan

Adelstein and NTIA Chief Larry Strickling, Senator Claire

McCaskill said, ``If I could, wave a magic wand I would morph

you into one person and combine your two agencies with the

snap of fingers.''

``I don't know why it was divided up the way it was, but

that's what happens with political power around here,''

echoed Senate Commerce Chairman John (Jay) Rockefeller. He

further complained that some applicants well-positioned to

aid their communities might be dissuaded by the cumbersome

process for obtaining the stimulus funds.

Their comments reflect concerns raised by companies and

other parties about the complexities of having requests for

loans and grants reviewed by two bureaucracies--and the risks

of ending up with loans even when grants are sought.

After being inundated, with close to 2,200 requests seeking

nearly $28 billion, both agencies have fallen behind schedule

and plan to begin issuing awards in mid-December--a month

later than intended.

Rockefeller and McCaskill were among the senators who

criticized criteria that could prevent some rural areas

within 50 miles of urban centers from being eligible for the

most generous grants.

They urged the regulators to address the matter, prompting

Adelstein to assure them that ``everything is on the table''

when it comes to making adjustments. He described Rural

Utilities Service as between a rock and a hard place because

it has been criticized for diverting too much assistance to

nonrural areas.

Senate Commerce ranking member Kay Bailey Hutchison

reiterated her view that the bulk of the funding should help

regions that are unserved or ``substantially'' underserved.

During his testimony, Mark Goldstein, director of physical

infrastructure issues at GAO, warned that both agencies lack

funding for oversight of the program beyond FY10.

Adelstein and Strickling said they're doing everything they

can to maximize the impact of the grants and loans. ``I want

to ensure you today that these funds will be well-spent,''

Strickling said, noting that there have been no turf battles.

That is why I am offering this amendment which would explicitly sunset all programs contained in the bill at the end of their authorizations or within 5 years, whichever is first, while granting the administrator the authority to carry out responsibilities regarding all outstanding loans, grants, and other outstanding commitments before the authorization expiration.

As a member of the Sunset Caucus and as a cosponsor of H.R. 393, I recognize the need for regular congressional review and oversight needed to restore accountability to the multitude of Federal programs that exist and that are created every day. The amendment I had planned to offer is part of a broader effort to reaffirm the continued relevance of Federal programs and to ensure they continue to operate as intended.

With the current budget challenges facing the Federal Government and a $1.4 trillion deficit, the need for provisions that would sunset program authorizations is more pronounced now than ever. Congress constantly creates new programs with little to no thought of the amount of money that will be needed to finance what usually becomes their eternal life. This is a commonsense, prudent, and simple step that can be taken regularly to help

keep us honest and to sunset authorizations which will necessitate evaluation.

If a program is worth continuing, its purpose and effectiveness should be dependable in the future. This gives committees an opportunity to reevaluate and retool their functioning to help restore accountability. I believe committee chairmen will wholeheartedly support sunsetting provisions, as their inclusion would more regularly work toward shaping policy under their purview.

Madam Chairman, again, I have learned just prior to coming here that there is a problem with the language, but I also understand that there is a belief on the part of the chairwoman and the ranking member that this is something that should be done, and we will be able to work on that in the future.

Madam Chairman, I ask unanimous consent to withdraw my amendment.