Mr. President, I have a great deal of respect for the Senator from Iowa. He has served with such distinction in this body. However, I have to rise to say that while he is sincere in his opinion, I am very proud that 61 Senators cast a vote…
Mr. President, I have a great deal of respect for the Senator from Iowa. He has served with such distinction in this body. However, I have to rise to say that while he is sincere in his opinion, I am very proud that 61 Senators cast a vote for the opposite view; that view being that the failed policies of the past were just that, failed, and have left America wanting.
We have a very serious economic crisis that is not going to be solved by the same old tired, failed, bankrupt policies as part of what the Senator expressed continues to want to carry out--policies that give untargeted tax cuts to those at the top of the tax bracket and hope and pray that it trickles down to everyone else; policies that empower the individual at the expense of the collective effort, and other policies that have left this country wanting. That is why 61 Senators came to the floor of the Senate and rejected those old notions and set a new course. Our President, with his election and now his leadership since that election, is leading us to adopt new strategies; a collective energy, recognizing that individuals alone cannot, no matter how individually empowered, build the highways and infrastructure necessary or transform the economy in a new way that can be invigorating and hopeful to the American people who are in desperate need of a new course.
So I wished to come to the floor, though, to briefly speak about some of the things that are in the underlying bill we voted on to invoke cloture that have to do with small business: expanding it, highlighting it, focusing on small business. Before I do that with my colleague, Senator Snowe, my good friend from Maine, let me also mention it is my hope, as this bill moves through the process of conference, that the House Members and the Senate Members, along with the President and the administration, can give a bit more focus on the infrastructure portions of this bill. It is something I think the Presiding Officer, Democrats, and Republicans have said: If the bill was light in anything, it may be light on the infrastructure piece. That is not to say that not a lot of good effort has gone into that, but perhaps we could make the bill stronger, which it has gotten, in my view, stronger at every step. Whether it is highways, waterways, high-speed rail, flood control, wetlands, coastal restoration, help with sewer and water, broadband, transformation of our electric grid, and, yes, investing in the infrastructure of science and technology in this country, we are woefully behind.
So I am hoping--one final point on that and then I will get to our colloquy on small businesses in a minute--I am hoping our Governors, Republican and Democratic alike, will take this as it is intended: an opportunity to help them balance their ships of State as we move through these rocky and rough waters over the next 12 to 18 months; that they take this money in the spirit it was given: to be a partner with them and the mayors and county commissioners, and in my State, parish officials, to help keep people employed, to help target this effort to where we can create the kind of jobs people most certainly need.
One of the best parts of the debate this weekend and one of the most moving was when Barbara Boxer, and then again today Byron Dorgan, put the picture of the 1,000 people in line for 35 firefighter jobs. I wish to remind my friends on the other side that people don't want speeches, they want jobs. If 1,000 people line up for 35 firefighter jobs, that is what this bill is intended to do.
It leads me to the colloquy Senator Snowe and I wished to come to the floor to engage in about the underlying bill and some of the advantages and provisions this bill has for small business.
First, let me thank the Senator for her leadership over the years as a chair and ranking member of this important committee. Let me also acknowledge the great leadership in recent years of Senator John Kerry, the chairman of the Small Business Committee. Particularly in regards to this particular bill, working out some bipartisan provisions that we could include, I wish to thank Senator Durbin and his staff who worked closely with us.
I wish to begin my brief colloquy with a statement that might be surprising to some who are listening, that 40 percent of all the capital in the country for small business, basically, comes through or touches the Small Business Administration. That is how important this small department of only 2,000--it used to have 3,000 people--it was terribly, and unjustifiably, in my view, cut under the previous administration. I wish to acknowledge that Senator Snowe has been a fierce and effective advocate. In the case of those cuts, she argued, sometimes successfully and sometimes not, those cuts shouldn't take place. Nonetheless, the Presiding Officer has started a small business that turned into a large business, and he knows that one of the great challenges right now is access to capital and affordable capital. We are not talking about access to being able to use a credit card at 21 percent or 15 percent. That is not affordable capital. We are not talking about mortgaging your house only to watch the value fall by 50 percent. We are talking about things that could really spur the flowing of the capital markets in this country.
Briefly, in the underlying bill we voted cloture on, we have eliminated the fees associated with the 504 economic development program, the 7(a) program, and the 504 program.
Lending is down by 40 to 60 percent, depending on the State. In Louisiana, we are down 60 percent. We think by eliminating these fees, it may spur banks to lend money and borrowers to come forward for this access to capital.
For over 50 years, the SBA's lending programs provided critical financing to small business owners who could not get affordable loans in the conventional market. In the wake of the financial crisis and this recession/depression, the SBA loan programs have not filled the void left by increasingly tight markets for conventional bank loans. We hope some of the provisions in this bill will help reduce that trend.
The fee waivers supported by the U.S. Chamber of Commerce and other business groups are very encouraging by the results when we did this the last time, after the 9/11 attacks--what that might mean to spur economic growth in this country in the next few months and years to come.
Let me also mention that in the underlying bill, we specifically targeted microloans. This might also be surprising to many, but the microloan program provides very small loans--on average about $13,000 per loan. That seems to be very small, but sometimes I think we get caught up in billions and billions and we forget that sometimes $5,000, or $10,000, or $20,000 is all it takes to get a good idea off the ground and to help create jobs in America.
I want to say, since so many Government programs get a bad rap and a black eye, this program--in large measure, my colleague from Maine helped to start it in 1992--the microloan program has been one of the most successful programs to date, having just one loss in its 18-year history, just one loss. Microloans are made to the smallest of businesses, typically home-based businesses, startups, newly established or small businesses. The program has always also been a great way to meet the needs of minority women and rural small business owners.
The final part of this bill I want to mention before turning it over to my colleague is the venture capital funds that will also stimulate the flow of venture capital to emerging small businesses by providing flexibility for participants in the SBA's Small Business Investment Company programs, SBIC programs, which have been successful. The language in the underlying bill will give them the flexibility to even be more successful. The occupant of the chair knows, Virginia's economy is growing and being spurred by new investment in small business. The Chair has had, as Governor of that State, a
front-row seat. These are some of the things we have put in the underlying bill.
I will mention one final item. The good Senator from Maryland, Ben Cardin, secured on the floor of the Senate, in addition to the work we had done originally on this proposal, a surety bond amendment, which was passed by a pretty overwhelming vote in the Senate, which will help small businesses secure--particularly in the areas of construction-- those surety bonds that will enable them to be part of this new stimulus package.
I am proud of the work we have done. Again, if it can be improved in conference, I would be open to that.
I would like to turn the final part of this presentation over to the good Senator from Maine for comments about the financing portion, as well as some other portions I spoke about.
I yield the floor.
Mr. President, if my colleague will yield for a moment, I want to mention as we close, I am so happy and excited about the President's nominee for the Small Business Administration. I had the opportunity to meet her for the first time today.
I ask my colleague from Maine, who is actually very familiar with this nominee, and she is from Maine, if the Senator would share a word or two about the particular qualifications of this nominee as we get ready to start this process. Through the Chair to my friend from Maine, it is indicative of the President's focus and his interest and his understanding by giving us such a quality nominee to consider.
Mr. President, I thank the Senator for her testimony in regard to Karen Mills and will commit as the new chair of this committee to move her nomination through with dispatch.
I will say before I give closing remarks, a word to banks and credit unions, particularly community banks, that I am intent in a leadership position on this committee to have the SBA be a better partner to community banks and credit unions as we really leverage the power of the SBA. Too often in the past, it has been seen as a problem or too complicated or too bureaucratic. I am looking forward to making that a much smoother, more powerful, muscular partnership so that our small businesses in America can have a model, the best in the world. It is going to be exciting to work on.
I thank the Senator from Maine and look forward to having a very strong partnership with her in the months ahead.
Is there any further business?
Mr. President, I agree with the Senator from Maine. I was happy to join with her in a letter to the President urging him to take this step. Hopefully, he will consider that request and give it every consideration.