News From Congresswoman
Nydia M. Velázquez
Representing New York's 12th Congressional District - Brooklyn, Manhattan, Queens
Ranking Democratic Member, House Small Business Committee

For Immediate Release
July 7, 2004

CONTACT: Kate Davis, Allyson Ivins, (202) 225-4038

Velázquez Applauds Victory for Small Business Loan Program
Bipartisan amendment passes to restore funding for popular loan program

WASHINGTON - Congresswoman Nydia M. Velázquez (D-N.Y.), Ranking Member of the House Small Business Committee, Chairman Donald Manzullo (R - IL), and Congressman Jose Serrano (D - NY) successfully passed a bipartisan amendment today with a vote of 281 to 137. The amendment, which was opposed by the Bush administration, restores funding for the Small Business Administration's 7(a) loan program at last year's level of $79.1 million.

"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," Congresswoman Velázquez said. "This is the same administration who claims to be the champion of small business. This is a victory for the small business community today. This amendment will help us to protect small businesses from facing increased fees, and will instead help them to access affordable capital so they can continue to create the jobs our economy so desperately needs."

Similar to President Bush's budget, the House Appropriations Committee passed a Commerce, State and Justice (CJS) bill last week that provided no funding for the 7(a) loan program. A failure to adopt this amendment would have resulted in increased fees for both small businesses and lenders. The Bush administration proposed to eliminate funding for the program four years ago, and earlier this year the program was shut down because the administration had asked for too little funding, despite warnings from both Congress and industry leaders.

Congresswoman Velázquez and her colleagues passed the amendment to provide funding for the 7(a) loan program at last year's level which will allow them to achieve record loan volumes. The 7(a) program is the country's largest source of long-term small business lending for both the private and public sector, providing 30 percent of this nation's long term loans - and for every 60 cents, the 7(a) program provides over $100 in loans.

"It is this nation's small business owners who use the 7(a) program that serve as the anchors for our economy," Congresswoman Velázquez said. "The truth of the matter is - this is an outstanding loan program, and this amendment was the right thing to do. With this amendment, we will be enabling our nation's 23 million small businesses to continue to spur economic growth and job creation. The passage of this amendment is definitely a step in the right direction for the future of not only small business, but for our nation's economy as a whole."

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