Floor Statements

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

(Ms. VELAZQUEZ asked and was given permission to revise and extend her remarks.)

Mr. Speaker, we are here today because Congress has failed to complete its work. Over 1 year ago, the Committee on Small Business unanimously reported out a bipartisan reauthorization bill. As a result of the failure to move this legislation, the authorization for the SBA expired last year and we are now forced to pass our fourth extension. Shamefully, the agency has been operating for 3 months without any authorization.

It is clear that the Nation's job creators, small businesses, are struggling. The United States has lost 1.7 million jobs since 2001, and we are continuing to see growth rates that only keep up with inflation. American manufacturers are being hit hardest, with 2.7 million jobs lost during that period and 11,000 lost in June alone. This is clearly not the picture of an economy that is getting back on its feet.

Last week, the House Committee on Small Business Democrats released a quarterly small business index showing that business conditions are at 7-year lows. Skyrocketing health care and energy costs and exploding Federal budget deficits are but a few of the barriers small firms face in achieving the growth our economy needs so badly.

At a time when we should be providing our Nation's entrepreneurs a leg up, this administration and the Republican Congress has continuously failed to provide the assistance they need by blocking passage of the SBA reauthorization.

The bipartisan reauthorization bill will provide the most comprehensive overhaul of the SBA in over a decade. It will broaden or modernize the SBA loan programs so firms can access the capital they need. At a time when the Federal Government failed to meet the small business contracting goals for the fourth consecutive year, the Republican leadership is blocking this bill that will expand procurement opportunities for small companies.

The legislation ensures small firms are given a fair chance to break into the Federal marketplace. By doing so, we provide the Federal Government a quality service at a good price. This is not just good for small businesses, it is good for the American taxpayer. Additionally, the likelihood of success for small business is nearly doubled when they have access to technical assistance.

Passage of the reauthorization bill will offer the greatest expansion of entrepreneurial assistance programs in decades.

Even more concerning is the possibility that our failure to act will actually worsen the business environment for small businesses. Small businesses are faced with a possible doubling of fees on SBA loans at the end of this month. Without immediate action, the current structure will lapse, leaving banks and entrepreneurs in a worse situation than when the program was shut down last year.

Although the gentleman from Illinois (Chairman Manzullo), who cannot be here today, has tried repeatedly to bring this bill up for consideration, the Republican House leadership and the administration have blocked it.

In today's economic climate, small businesses are more important than ever. We need to ensure that they have all the tools for success, as they are facing numerous obstacles. It is unfortunate that we are here today passing an extension, rather than celebrating the passage of an SBA reauthorization.

These issues should not be subject to partisan politics. When our small businesses need us the most, our committee was able to work in a bipartisan manner to produce this legislation. We now ask the Republican leadership to recognize these efforts and pass the reauthorization bill that will get small businesses back creating jobs.

Mr. Speaker, I yield 2 minutes to the gentlewoman from Guam (Ms. Bordallo).

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

I would like to set the record straight regarding the tax cut that the President submitted to Congress and that Congress passed.

The tax cuts are not helping small businesses. The President's tax cuts have provided little relief for small businesses. In fact, under the latest tax cut, over half of small businesses receive less than $500, despite a cost of $350 billion. And, while the President talks about how the top tax rate cut helps small businesses, only 1 percent of small business owners benefit from the reduction in the top tax rate. In fact, out of the 28 million small businesses, only 180,000 benefited from the top tax rate, according to the figures presented to us by the Department of the Treasury. Those are your own numbers. Less than 5 percent of the latest 2003 Jobs and Growth package was in the form of targeted tax relief for small businesses.

Mr. Speaker, I yield 3 minutes to the gentlewoman from the Virgin Islands (Mrs. Christensen).

Mr. Speaker, I yield 2 minutes to the gentleman from Massachusetts (Mr. Tierney).

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

Mr. Speaker, there is no disagreement that we should pass this extension. It is, though, embarrassing that it has come to this. We expect small businesses to meet their taxes, comply with Federal regulations and pay their employees on time. But when it comes to Congress, we are not held accountable for our failure to meet their needs.

At a time when our economy is struggling, at a time when small businesses are struggling, Congress should be holding up its end of the deal. Passing the Small Business Administration Reauthorization Act must be a priority.

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

Mr. Chairman, I would like to take this opportunity to thank the gentlewoman from Michigan (Ms. Kilpatrick) and for yielding me this time.

Mr. Chairman, today we are considering the $19 billion Foreign Operations appropriation bill. Billions of dollars of this funding will be spent on Federal contracts performed overseas. This amendment ensures that U.S. small businesses have an opportunity to compete for this work.

Large contractors in the United States are currently required to submit subcontracting plans for work performed in the United States. These plans must simply identify small business goals and demonstrate that small companies have a reasonable opportunity to compete for these subcontracts. The Kilpatrick amendment merely extends this requirement to overseas contracts.

I cannot overstate the important role of small businesses in our economy. Whether domestic projects or overseas work, our Nation's small businesses deserve access to Federal contract opportunities. The Kilpatrick amendment eliminates these double standards and gives United States small businesses a chance to compete.

Mr. Chairman, this amendment, a similar amendment like this was included in last year's appropriation bill, only to see it stripped out in conference. I hope that this is not the case this year. I urge its adoption.

Mr. Chairman, I rise in support of the amendment.

Mr. Chairman, I want to thank the ranking member, the gentleman from New York (Mr. Serrano) as well as the gentleman from Virginia (Chairman Wolf) for their work on this important legislation. The bill before us has attempted to do the most with a limited amount of dollars. One area where it falls short is the Small Business Administration.

As the ranking Democrat on the House Committee on Small Business, I always hear, during good economic times or bad, small business owners need access to affordable capital in order to be successful. That is why I always say access to capital is access to opportunity in this country.

Small business owners have told me stories of having to max out credit cards, having to borrow money from relatives, and having banks ask them to put their homes up as collateral for a $20,000 loan, all so they can afford to start a new business or expand an existing business.

The amendment I am offering today with the gentleman from Illinois (Chairman Manzullo) will restore funding for the 7(a) loan program to fiscal year 2004 levels, $79 million. This amendment offsets several programs, but keeps the funding consistent with their fiscal year 2004 level. These are the real challenges facing small enterprises, and this is the whole reason the 7(a) loan program was created.

The 7(a) program is a public and private partnership for banks, lenders and small businesses. The 7(a) program is this country's largest source of long-term small business lending for both the private and public sectors, providing 30 percent of this Nation's long-term loans.

Given its tremendous success over the years, it is unbelievable to me that this critical loan program has been under nothing but attack from the Bush administration. This is the same administration that claims to be the champion of small business. The first thing this administration did 4 years ago was to eliminate funding for the 7(a) program. Then, earlier this year, the 7(a) program was shut down, and this happened because the Bush administration ignored Congress' warning and they ignored the industry. They simply chose to ask for less funding than what this loan program requires.

Now, today, we face a new issue for the 7(a) program. This same administration wants to zero out the program's funding and let small businesses and lenders pay more. We heard small business owners say this was unfair, and we promised to do something about this. Well, that is what we are doing today, delivering that promise to our small businesses.

What is so ironic is that we are talking about a successful small business lending program here. For every 60 cents, the 7(a) program provides $100 in loans. They have continually done more with less. A decade ago, they received $300 million in the appropriations process, and now we are asking for only one-third of that. Last year alone, the 7(a) program touched over 350,000 jobs.

The most unfortunate part is that over the past 10 years, the 7(a) program has managed to do more for small firms in an environment where they were being overcharged by the government. We fixed this problem in a bipartisan manner in 2001, but the Bush administration wants to go back to the days when small businesses were taxed.

Well, let me tell you, it is not what our Nation's small businesses want and it is not what we want. President Bush travels across the country touting his small business agenda, but his talk proves to be rhetoric; his actions do not match his words.

If you vote against this amendment today, then you are voting to increase the costs facing small businesses. Our hope is that this amendment passes, which would allow the 7(a) loan program to do record volumes with the same amount of money.

It is these small business owners who use the 7(a) program that serve as anchors for our economy. The truth of the matter is, this is an outstanding loan program, and this is the right thing to do. With this amendment, we will be enabling our Nation's small businesses to continue creating the jobs that we so desperately need.

If you support our Nation's economy, if you support job creation and small business, then you will vote ``yes'' on this amendment.

Mr. Chairman, I thank the gentlewoman for yielding. A concern was raised by the gentleman from Virginia (Mr. Wolf) regarding the properness of where the amendment places the money within SBA. With all due respect, Mr. Chairman, because the SBA 7(a) program was eliminated, a program account does not exist. But I want to read from the committee's report and the gentleman says, ``The committee recommends a total of $128 million under this account for administrative expenses related to business loan programs.''

So what we have done is to operate within the constraints that the committee provided us. And regarding the concern that was raised about the

money, $10 million that had been taken from the National Endowment for Democracy, even by taking the offset of $10 million, the program remains funded at last year's level. And we do support spreading democracy, but we also support creating jobs in our country.

Mr. Chairman, will the gentleman yield?

Mr. Chairman, I thank the gentleman for yielding; but with all due respect, I sit on the Committee on Financial Services.

Mr. Chairman, will the gentleman yield?

For members of the subcommittee of Congress to be

here doing the job for a financial institution is completely wrong.

This amendment will address a Hispanic woman who goes shopping around to make a loan and is being denied a loan by commercial banks. Unless we have a loan guarantee, and my colleagues know that we hear time and time again about minority businesses, women-owned businesses who are denied loans through traditional financial institutions, this amendment helps those people who are trying to set up their businesses or expand their businesses.

Mr. Chairman, if the gentleman would further yield, we can mix oranges and apples. Microloan and 7(a) are two completely different programs.

Mr. Chairman, will the gentlewoman yield?

Mr. Chairman, in reference to the fact that this amendment takes money from homeland security, I will say that there is nothing in this amendment that will take money from homeland security. The offsets are from DOJ automation projects.

Mr. Chairman, I ask unanimous consent to yield half of my time to the gentleman from Illinois (Mr. Manzullo) and that he be permitted to control that time.

Mr. Chairman, I yield 2 minutes to the gentleman from Texas (Mr. Gonzalez).

Mr. Chairman, I yield 3 minutes to the gentleman from New Mexico (Mr. Udall).

(Mr. UDALL of New Mexico asked and was given permission to revise and extend his remarks.)

Mr. Chairman, I yield myself 30 seconds.

I would just like to respond to the fact that the gentleman was talking about the National Endowment for Democracy. The numbers do not lie. They

are right here. The National Endowment for Democracy was funded $39.5 million. The full committee provided $51 million. It is on page 77 of the bill. If we take $10 million, they still have more than $1 million from last year.

I yield to the gentleman from California.

Mr. Chairman, I yield 2 minutes to the gentlewoman from California (Ms. Pelosi), the minority leader.

Mr. Chairman, I demand a recorded vote.

Mr. Chairman, I would like to thank Chairman Lewis and Ranking Member Murtha for agreeing to include my amendment in the Managers Amendment.

Today, we are considering the $418 billion Department of Defense appropriations bill that is solely funded by American taxpayers. It is estimated that between $200 to $225 billion of this funding will be spent on Federal contracts, and at least $20 billion will be allocated for contracts performed overseas. Unfortunately, there are no requirements to ensure that American small businesses have an opportunity to compete for these overseas contracts.

The amendment I am offering today will give small businesses this chance. It will simply require that large companies submit a subcontracting plan prior to being awarded a DoD contract for work overseas--which they are currently required to do for domestic contracts.

Throughout our Nation's history, small businesses have been systematically shut out of the Federal procurement process. Government agencies continue to fail to meet statutory goals designed to ensure fair and equitable small business participation in the Federal marketplace--costing small firms billions of dollars in lost contracting opportunities.

The size of Federal contracts keeps increasing as small jobs are combined into large procurement packages, where only big corporations are capable of meeting all of the product and service requirements. As a result, small businesses that can provide some of these services cannot compete for the contract, even if they offer greater savings to the American taxpayer.

Nowhere is this more apparent than at the Defense Department, which accounts for 65 percent of the entire Federal procurement market. DoD has substantially increased its contract volume over the last several years, yet the number of small businesses receiving these contracts has significantly declined. In FR 2003, the top ten corporations receiving DoD contracts were awarded nearly half of the agency's entire procurement budget.

Clearly, small companies already face difficult obstacles when trying to do business with the DoD. And now, we are considering a multi- billion spending bill that makes it almost impossible for small businesses to have a shot at winning any part of the billions of dollars in contracts for overseas work.

We have more than 700 overseas military bases in over 40 countries across the globe. Whether providing medical equipment to Ramstein Air Force Base in Germany, office supplies for the Marine Corp's Camp Butler in Japan, designing security technology for new military installations in the Middle East and Central Asia, or planning and constructing possible new bases in West Africa and Eastern Europe--U.S. small businesses have products and services to offer and should have that opportunity.

My amendment gives small businesses access to this expanding market by ensuring that large corporations are subject to the same subcontracting requirements for international contracts, as they are for contracts here at home.

Under current law, large contractors in the U.S. are required to have a plan in place on how they will use small businesses prior to receiving contract awards. In these plans, a contractor must simply identify small business goals and demonstrate that they made every practical effort to offer subcontracts to small companies.

By providing subcontracting opportunities, we ensure that the company that can do the work for the lowest price wins the contract--whether a multinational conglomerate or a small U.S. business.

Small businesses are the backbone of our Nation's economy. They account for 97 percent of all companies, provide three-quarters of all new jobs, and make up half of our GDP. Unlike their corporate counterparts that benefit from cheap foreign labor, we can count on small businesses to create jobs in our communities.

Our small businesses are more than capable of providing services and products in the global market. In fact, 97 percent of U.S. merchandise exporters are small- and medium-sized companies.

Whether domestic projects or overseas work, our Nation's small businesses deserve access to these Federal contracting opportunities. There should be no double standard.

Again, I thank Chairman Lewis and Ranking Member Murtha for agreeing to include this critical provision in the Managers Amendment. I look forward to continuing to work with the Committee to ensure that small businesses have the opportunity to grow and expand our national economy.

Offered By: Ms. Velazquez

Amendment No. 7: At the end of the bill, add the following

new title:

Mr. Speaker, I rise today on the floor of the U.S. House of Representatives to recognize the achievements of Raymond Figueroa, an inspiration, and the executive director of Turning Point/ Discipleship Outreach Ministries located in Brooklyn, New York.

Raymond has been instrumental in the success of this organization, which provides housing, educational opportunity, substance abuse treatment and AIDS programs to some of Brooklyn's most underprivileged neighborhoods. The program reaches over 2,000 residents a year and reaches 20,000 more through outreach initiatives.

I am pleased to announce that Mr. Figueroa's dedication and work has been recognized by the Robert Wood Johnson Community Health Leadership program, as they have chosen him as one of their 10 annual recipients. Raymond has overcome many challenges to get where he is today--he was born into poverty, and grew up with a troubled childhood. Yet, his commitment to bettering our community is unwavering, and although he did not graduate from high school or receive a formal education, Mr. Figueroa is living proof that one can rise above the circumstances to achieve their goals.

Over the course of his life, Raymond has lost friends and family to violence, addiction, and AIDS. He watched his sister as she endured the stigma of living with AIDS and was victimized by a hospital staff that refused to touch her, despite her absence of tuberculosis or skin abrasions. The reality of his sister's dehumanization strengthened his drive to work in social justice.

Starting as a volunteer at the Turning Point/Discipleship Outreach Ministries in 1990, Raymond moved to a leadership position 12 years later as the only second executive director. He is truly an inspiration to his community, and reminds us that we can overcome barriers.

Therefore, Mr. Speaker, I rise today to honor Raymond Figueroa, and join with my colleagues in the House of Representatives to recognize his extraordinary work in the Brooklyn community.

Mr. Chairman, I offer an amendment.

Mr. Chairman, small businesses need opportunities. Repeatedly, small businesses have demonstrated that they can provide the government a superior product at an affordable cost to taxpayers.

Unfortunately, small businesses are seeing their opportunities dwindle as agencies place expediency over job creation in our local communities and what is best for the American taxpayers. The cost of this is the creation of mega contracts that are so big that only big businesses in corporate America can compete. What they are telling American small businesses is that the $285 billion Federal marketplace is not open to them.

When President Bush took office, he promised to change this and to open the Federal marketplace to small businesses. Even 2 years ago, during Small Business Week, he issued a small business agenda and made contract bundling his top priority. Since taking office, not only has he done nothing to change this, but this administration has failed to meet any of the small business goals set up by Congress. This is outrageous.

Today's legislation is a perfect example of that. This Department was created by the President and was supposedly to do things in a new way. What we are seeing here is business as usual. The most recent example is this regional security contract that currently is being done by small business securities firms across the country. Homeland Security is currently in the process of bundling this contract so large that probably three firms, one of them not even an American firm; so now, we are going to turn security over to foreign companies, and none of the small businesses will be able to provide the service. This will result in the loss of thousands of jobs in communities across the country at a time when job creation is still struggling.

My amendment will stop the Homeland Security from bundling contracts that will steal opportunities from small businesses and ensure that small businesses will continue to provide the services that they have done so well.

I urge the adoption of this amendment.

Mr. Chairman, will the gentleman yield?

Mr. Chairman, the problem is that I was just contacted by one of the small business firms that has provided these services who is going to go out of business, and he contacted me yesterday.

Mr. Chairman, if the gentleman will further yield, I am not prepared to do that at this point, because in the past, like in Homeland Security, I introduced an amendment where 23 percent of any monies spent by DOD in the reconstruction of Iraq will go to small businesses. During conference it was taken out. So time and time again, when we have an opportunity to help small businesses through the legislative process, they are being shut out.

Mr. Chairman, will the gentleman yield?

Mr. Chairman, it is just simply outrageous that if these securities have been performing these types of services by small businesses, that Homeland Security, despite the goals that have been set up by Congress, and despite the fact that the President made a commitment to small businesses of making contract bundling his top priority, that now Homeland Security is going to bundle this contract, putting so many small businesses out of business.

Mr. Chairman, I demand a recorded vote.

Mr. Speaker, reserving the right to object, and I do not intend to object, the legislation we are about to pass is necessary because the House still has not gotten its work done on the reauthorization of the Small Business Administration. H.R. 4478 represents the fourth extension since the Committee on Small Business unanimously passed bipartisan legislation almost a year ago, and yet the House leadership continues to block its consideration.

I am reluctantly agreeing to this because, while the legislation does extend the SBA until the end of July, it fails to address the critical needs of the 7(a) and 504 loans programs.

We need to bring the SBA reauthorization, H.R. 2802, to the floor and give small businesses the access they need to important contracting, loan, and technical assistance programs.

I hope that we do not have another extension and empty promises of action.

Mr. Speaker, I withdraw my reservation of objection.

Mr. Speaker, I thank the gentleman from New Jersey (Mr. Andrews) for yielding me this time.

Today, we should be focusing on helping small businesses address the health care problems they face. Instead, our debate is not about policy but about politics. The House has already passed this once, and it is a bit early for summer reruns. It is a good bill with broad bipartisan support. Passing it twice will not change that.

As we move forward, small businesses are facing a real health care crisis. Small firms that can afford health insurance are seeing costs rise by nearly 20 percent every single year, and many small businesses do not even have health insurance.

This is a good bill. It has strong solvency requirements and safeguards to ensure there will be no cherrypicking of healthy employees.

Critics of this legislation will cite an outdated study that examines legislation far different than the bill before us today. This has the same validity as saying Columbus should never have sailed to the New World because previous studies had shown the world was flat.

Association health plans will give small businesses the same advantages that corporate America and unions already have. I always say, if it is good enough for IBM, GM, and Lockheed Martin, it is good enough for small businesses.

But we should stop playing politics with small business. If the Bush administration was truly committed to small businesses, association health plans would already be law.

Today's debate is not going to help small businesses lower their health care costs, it is not going to help them cope with the constant fear of being just one illness away from bankruptcy. It is about time small businesses were able to afford quality health care. That is why I will encourage my Democrat colleagues to support this proposal and show as a party that we are bigger than this political gamesmanship.

I call on the Republican leadership in the Senate and President Bush to make this bill a priority and pass it. I urge a ``yes'' vote.

Mr. Speaker, I rise today on the floor of the U.S. House of Representatives to recognize the achievements of Sister Mary Paul Janchill, D.S.W., a tireless advocate for the rights of children and families, and one of the cofounders of the Center for Family Life in Sunset Park, Brooklyn.

For more than 50 years, Sister Mary Paul has been a pioneer and influential leader in child welfare. Sunset Park is a diverse, low- income neighborhood in Brooklyn, and almost a third of the population there is under the age of 18. Sister Mary Paul, a long-time advocate and leader in the fight for the rights of children and families, took her passion and strength, and cofounded the Center for Family Life.

Over the past 25 years, Sister Mary Paul has continued her work and dedication to meeting the needs of families that live in the financially distressed area of Sunset Park through her work at the center. She has continued the fight for low-income children and teenagers, especially those who are at risk of being swept into the social welfare system. The Center for Family Life offers services and advocacy to its clients, and already has two films, one of which received a 2003 Academy Award, that are based on its dedication and commitment to the community.

Sister Mary Paul, among her endless positive contributions, helped to modify the evaluation processes used by child welfare agencies and the family court system. She encourages people to view troubled teens as works in progress. Sister Mary Paul truly changes lives--individuals who have completed their programs later find themselves in leadership positions throughout the community. Her work is priceless, and is constantly felt by the significant number of youth, and families, that she reaches out to each and everyday.

Therefore, Mr. Speaker, I rise today to honor Sister Mary Paul Janchill, and join with my colleagues in the House of Representatives to recognize her extraordinary work in helping New York City's less privileged children and families.

Mr. Speaker, I rise today on the floor of the U.S. House of Representatives to recognize the achievements of Shirley V. Edwards, a visionary and the principal of EBC High School/Bushwick, Brooklyn in the 12th Congressional District.

After 25 years of blight, Bushwick is experiencing a renaissance. Despite this, it continues to suffer from a high rate of unemployment and poverty. Shirley Edwards, armed with her education specialist background, knew she had a mission to fulfill. She understood that education was the key to breaking the cycle of poverty, and she dedicated herself to the creation of EBC High School for public service and academic excellence.

For the last 10 years, Principal Edwards has called EBC High School/ Bushwick her home, serving as a mentor to both students and teachers alike. She is said to have led EBC/Bushwick down the ``road not taken,'' showing many in the community that it was possible to leave an imprint when they had lost all hope. She was instrumental in creating an array of innovative programs, leaving behind an important legacy that forms the foundation of the high school.

Principal Edwards, among her many positive contributions, introduced students to the value of public service and giving back to their community, encouraging them to make a real difference. She witnessed first-hand how drugs, crime and poverty devastated lives, and she made it her mission to empower students and to give them a second chance at earning an education and forging a better path for themselves in the future. Principal Edwards motivated students to become enthusiastic lifelong learners and responsible adults. She truly changed lives--now over 90 percent of her graduating classes are pursuing college degrees.

Therefore, Mr. Speaker, I rise today to honor Shirley V. Edwards, and join with my colleagues in the House of Representatives to recognize her extraordinary work in New York City's public education system.

Mr. Speaker, I rise today to recognize the dedicated volunteers of the Sunnyside Community Service Center located in Sunnyside, Queens, New York during National Volunteer Week.

The Sunnyside Community Service Center has done an outstanding job of providing a range of social, recreational, and educational services to over 2,000 members. Its successful volunteer program helps the center achieve its goals, reaching hundreds of senior citizens each and every day.

The center offers lunches, Meals on Wheels, and about 30 weekly activities, including special celebrations, concerts, and performances. It also offers a variety of educational programs, such as English as a Second Language, conversational Spanish, citizenship preparation, and health classes.

At the center, seniors can receive assistance including benefits counseling, entitlements--Social Security, SSI, and Medicare--mental health services, and access to various support groups. In addition, the center has a special program for homebound seniors, allowing them to participate in activities and lunch with their peers, and an Alzheimer's day program that provides much-needed support.

The Sunnyside Community Service Center volunteers are, in many ways, the lifeline of the organization. These volunteers dedicate their time, energy, and compassion to enriching people's lives each and every day at the center. Therefore, it is with great enthusiasm that I ask you to join me in recognizing the following volunteers for their dedication and commitment to service in our community:

Ana Abreu, Reginaldo Acosta, Zoraida Aguilar, Ashraf Ahmed,

Mario Alulema, Sixta Tulia Alvarez, Ana Arboleda, Clara

Baquero, Martha Barjacoba, Norma Benitez, Paul Bernaschina,

Luisa Bonete, Dikran Bostanian, Novella Busetti, Maria

Camisa, Zoila Caraballo, Margaret Carlucci, Dorothy Cavallo,

Clemencia Ceballos, Haydee Ceballos, Ellie Chen, Joli

Chowdhury, Ann Chuhran, Christine Conety, Catherine Coscia,

Michelle Cotrina, Emma Cristancho, Carrie Cunningham.

Anna Damis, Mary Davide, Stephane Dejean, Dora Delgado,

Sigrid Doleske, Don Donner, Stephanie Dosantos, Clifton

Duhaney, Alfonso Duran, Rosemary Eischeid, Headley Evans,

Letty Fabre, Francesca Ferreira, Betty Gallino, Ru-Ze Gao,

Mickey Garmendia, Ray Glantz, Paulina Gonzalez, Veronica

Gonzalez, Mary Halvey, Ni Han, Eileen Hand, Nancy Hendley,

Shyrene Hernandez, Hermilinda Hidalgo, Gloria Holder, Maggie

Houston.

Ani Janikian, Idalie Jean-Jacques, Jennie Jesse, Jose

Jimenez, Siria Jomarron, Valerie Jones, Yvonne Jones, Cierra

Knight, Rodica (Denise) Kondan, Marie Konecko, Mildred Lang,

Cecile Laroche, Tatiana Lavega, Laura Lecour, Maria Linan,

Renato Lins, Glyn Lloyd, Haleyda Lopez, Juan Lozano, Carmen

Luzarraga, Barbara Lynch, Rosa Macas, Paola Machicao, William

Madden, Maria Maldonado, Bestina Marte, Joan Marus, Eugenia

Matviyenko.

Jim McBride, Robert McCreanor, Gert McDonald, Felipa

Miranda, Rakhshinda Moeen, Grace Montes, Betty Moore, Khosrow

Moradian, Fanny Morales, Albert Mullakandov, Cortenie Murphy,

Robert Murphy, Sara Najam, Lillie Navarro, Marzana Naz, Walky

Nazon, Nga Nguyen, Ruben Nunez, Maria O'Grady, Oscar Orozco,

David Ortiz, Gizem Ozcelik, Kong Park, Ethel Parker, Dalia E.

Perez, Emilia Pineda, Bertha Power, Amalia Priore, Rosario P.

Priore.

Myriam Ramirez, Ana Restrepo, Maureen Rinaldi, Leopoldina

Rodriguez, Celina Ruiz, Julio Salcedo, Karmin Sanchez, Maria

Inez Sanchez, Mariana Sanchez, Marina Sanin, Nickola Saroff,

Frances Schaefer, Mary Sesio, Jeanette Shane, Virginia Shaw,

David Shin, Cynthia Singleton, Maria Sorenson, Juana Sosa,

Elsa Spielvogel, Lillian Stanley, Gail Sylvester, Millie

Taveras, Angeline Thayuman, Paris Torossian, Yasmin Torres,

Zoila Torres, Catherine Trochelman, Ana Urbina, Ligia

Vasquez, Abe Vilensky, Anne Walsh, Harry Werner, Maura

Wilson, Maisie Wright, Elizabeth Youngfleish, and Christopher

Zottarelli.

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

(Ms. VELAZQUEZ asked and was given permission to revise and extend her remarks.)

Mr. Speaker, I rise in support of H.R. 3170, the Increased Capital Access For Growing Businesses Act; and I want to commend my good friend and colleague, the gentlewoman from New York (Mrs. Kelly), for moving this matter so expeditiously. I also want to thank the gentleman from Ohio (Mr. Oxley) and the gentleman from Massachusetts (Mr. Frank), the ranking member, for their support in expediting the consideration of this measure.

With this legislation we have an opportunity to help more small companies access capital so that they can expand and grow their businesses. Business Development Companies are unique investment companies authorized by the 1980 Amendments to the Investment Company Act. They are publicly traded companies that invest primarily in small companies.

Since 1980, BDCs have proven to be a valuable source of funding for growing companies that do not have access to traditional sources of financing like bank lending or access to the public securities markets. At the same time, BDCs provide the investing public with an opportunity to invest in private equity, an opportunity traditionally limited to wealthy investors.

In 1980, when BDCs were first authorized by Congress, about two- thirds of all publicly held companies were eligible for BDC investment. While the securities and financial services industries evolved during the 1990s, Congress did not act to keep the BDC statute current. As a result, the number of public companies in which BDCs could invest in has been reduced drastically, effectively eliminating the option of BDC investment for many companies.

It is important to understand that just because a firm has gone public does not mean that it can access the financing necessary for growing and expanding. In the late 1990s, for instance, many companies went public that may not have been able to do so under current market conditions. As a result, after the market bubble burst, many of these companies found themselves unable to access traditional financing sources. These smaller, illiquid company stocks could have greatly benefited from financing offered by BDCs. Instead, the current statute severely restricts such investments by BDCs.

The current standard for eligibility, whether or not a company has outstanding marginable securities, has proven unworkable, as it is tied to a standard that is no longer relevant.

H.R. 3170 attempts to provide more certainty and update the law concerning permissible investments by BDCs. It creates a more workable standard to enable BDCs to provide financing to companies as originally intended by the 1980 amendments. This legislation attempts to provide a more objective standard, based on a market capitalization test, to modernize the definition of eligible portfolio companies.

H.R. 3170 modernizes U.S. securities laws to reflect changes in the marketplace. Small and growing companies are often widely regarded as engines of economic growth and job creation. Allowing BDCs to invest in more companies in need of capital will provide more opportunities, more jobs, and contribute to the economic expansion.

I urge my colleagues to support this legislation critical for small businesses and the U.S. economy.

Mr. Speaker, I have no further requests for time, and I yield back the balance of my time.

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

(Ms. VELAZQUEZ asked and was given permission to revise and extend her remarks.)

Mr. Speaker, first I would like to thank the chairman and the House leadership for their commitment and willingness to resolve this program in a bipartisan manner.

In today's jobless recovery, small businesses are more important than ever. That is because small businesses are this country's main economic driver. They are this country's main job creator, and they are this country's number one employer. They are the backbone of the American economy.

One big challenge for small businesses is access to capital. Studies have shown that too many entrepreneurs finance their great ideas with credit cards. And this puts them into debt even before they get their businesses off the ground.

That is exactly why the SBA loan programs are so critical. These programs fill a financing gap for small firms, making loans on great ideas that may not have been looked at twice or invested in it at all. In fact, last year, the SBA's 7(a) flagship loan program provided hundreds of thousands of small businesses with billions of dollars that was then pumped back into the U.S. economy.

Yet, for all the good the 7(a) program has done, it recently fell on tough times. The program was shut down at the end of last year and was later reopened but with severe restrictions in place. Just after the program hit these bad times, so did the small business owners that were trying to secure loans. Suddenly, their plans to hire employees, expand their operations or purchase new equipment were put on hold; and, as a result, job creation was put on hold for the American economy overall.

I am happy to say to all those small business owners out there who have suffered, we are going to make the 7(a) loan program whole again with the bill before us today. This program that has helped countless entrepreneurs turn their dreams of business ownership into reality is back, and hopefully it is here to stay.

In H.R. 4062, we ask lenders to shoulder greater responsibility for the program, but we are also giving them a new tool by raising the guarantee rate from $1 million to $1.5 million. In doing this, lenders will be able to guarantee more loans, more money will flow into the American economy, and small firms will be able to create more jobs.

This fix will support our small businesses that create good-paying jobs right here in the United States, unlike the large multinational corporations that move jobs overseas in search of cheap labor and lax environmental standards without even thinking twice.

Our solution will especially help small manufacturers who have been hard hit, like Elliot Moses, a small businessman from Sandy, Utah, who was left on the edge of financial ruin when the 7(a) program was closed. Now he and thousands of other manufacturers can get the loans they need to stay competitive, strengthen their operations here in the U.S. and hire more American workers.

With H.R. 4062, we pave the way to success for manufacturers and small businesses everywhere. With this bill, we make sure small businesses have access to capital. With this bill, we make sure small businesses can invest in their ventures, purchase new equipment, expand and create jobs. With this bill, we will be giving our economy the shot in the arm that it needs right now; and with this bill, we also give new hope to the 8.2 million unemployed Americans that something is being done to transform the current jobless environment into one of work and prosperity.

If my colleagues support our Nation's economy, if they support job creation, then I urge my colleagues to support H.R. 4062.

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

Mr. Speaker, I do not have any other speakers

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

By passing this bill, we will show small businesses just how important they are to the U.S. economy. We will show them that we want to make it easier for them to invest capital back into the businesses where it belongs; and, Mr. Speaker, I would like to take a moment to thank all the staff who worked hard on this solution.

I would like to thank from the administration, the staff, Jenny Mayne, Anthony Bedell and Charles Rowe. From the House leadership, I would like to thank KiKi Kless and Julie Sullivan. From the chairman's office, Barry Pineles, Matthew Szymanski and Phil Eskeland. From the Democratic Committee on Small Business staff, I would like to thank the staff director Michael Day, Adam Minehardt and Jordan Haas.

Mr. Speaker, I yield as much time as she may consume to the gentlewoman from California (Ms. Millender-McDonald).

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

I urge the adoption of H.R. 4062 and call on the Senate to act quickly on this measure so that small businesses across the country can benefit.

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

Mr. Speaker, I rise today on the floor of the U.S. House of Representatives to pay tribute to the life of Richie Perez--a longtime community activist who lived in Brooklyn.

Richie Perez was a fighter. He fought for the rights of all people, and he fought against the devastating inequities that plague our society. He fought for the poor, the disenfranchised, the downtrodden-- and gave them a voice.

His passion for activism began in the 1960s as a former member of the community-based organization for Puerto Rican empowerment called the Young Lords Party. He most recently founded the National Congress for Puerto Rican rights, acting as the co-chair of its Justice Committee, which works with families of victims of racial discrimination and police brutality.

He was a mentor to many and a hero to even more. He imparted his ideas and philosophies onto others by teaching classes on the Puerto Rican experience in New York, mass media and social policy at New York City's Hunter College. Not only was he an activist and a teacher, but he was an author as

well, publishing several groundbreaking written works.

Richie Perez was a truth-seeker. Wherever he went, he spoke the truth, lived by the truth, and inspired the truth in others. He embodied the meaning of righteousness and what is good and real in our local communities. He believed in giving people a second chance, and in fighting back against the injustices that had imperiled them.

Therefore, Mr. Speaker, I rise today to honor Richie Perez, and join with my colleagues in the House of Representatives to recognize his extraordinary life.