STATEMENT
of the
Honorable Nydia M. Velázquez, Ranking Democratic
Member
on the floor of the House of Representatives
in support of her amendment to C-J-S Appropriations FY 2002
Wednesday, July 18, 2001
Mr. Chairman, our country is coming off of one of the greatest
economic growth periods in our nation's history. This phenomenal
expansion has been driven by our small businesses, which
are the engine of our economy. The contribution of American
entrepreneurs cannot be underestimated. Small businesses
employ half our workers, create new jobs 75 percent faster
than large companies, and make up half our GDP.
The SBA fuels this powerful
engine through its loan and technical assistance programs.
SBA maintains a loan portfolio of $45 billion to nearly
a half-million businesses, accounts for more than half of
all venture-capital financing, and helped secure financing
for eight of Fortune magazine's 100 Fastest Growing Firms
in 1999. The SBA has even helped launch household brand
names like FedEx, Intel, and Apple.
Unfortunately, this bill's
funding levels leave the agency short by $130 million. It
zeros-out 10 programs and under-funds another half-dozen.
This leaves our small businesses dangerously close to running
on empty. This amendment, offered by my colleague from New
York Congresswoman Kelly and myself, will restore $17 million
to the agency, allowing us to adequately fund SBA's 7(a)
loan program and maintain for PRIME and BusinessLinc, two
critical small business development programs.
Mr. Chairman, access to
capital means access to opportunity for small business owners.
The 7(a) loan program, which helps small businesses obtain
long-term capital they need for growth and expansion, directly
translates into jobs and a net return on our investment.
Last year alone, 7(a) made 43,000 loan guarantees worth
over $10.5 billion. The 7(a) program accounts for 30 percent
of all --- and I repeat ALL --- long-term small business
loans. The current 7(a) funding is almost $40 million below
last year, threatening 20,000 small business loans.
This amendment will restore
$10 million to the 7(a) loan program, bringing the level
up to $88 million --- still far below the $107 million we
provided last year for the program. With more and more reports
coming to light every day that capital is becoming increasingly
difficult for small business to obtain, having an adequately
funded 7(a) program will be critical to our nation's small
business success.
Oftentimes even before
an enterprise gets their first loan, the dice have already
been cast on whether they succeed. The PRIME initiative
gives entrepreneurs the understanding about potential business
opportunities, pitfalls, and the necessary steps to success.
Studies consistently show that entrepreneurs who receive
counseling and technical assistance are twice as likely
to succeed. This program ensures those mistakes do not happen.
Our amendment funds the program at a modest five million
to 10 million dollars less than what was funded last year.
Finally, while many areas
of this country have prospered, there are pockets of communities
that have not benefitted from the economic boom of the last
10 years. BusinessLinc helps entrepreneurs in these communities
to penetrate otherwise inaccessible national markets through
a mentoring program linking small firms with larger corporate
mentors. Our amendment provides a modest level of $2 million
to sustain BusinessLinc, still well below last year's level
of $7 million.
Our amendment is paid for
through minor cuts to the administrative accounts of the
Departments of Commerce, Justice and State. I do not anticipate
these cuts will cause any hardship, because the levels are
well above last year's. It will be a very small price to
pay for programs that deliver such strong returns.
Mr. Speaker, our amendment
is a commitment to America's small businesses, which helped
to spur and sustain our historic "long boom".
The foundation of American prosperity is built by entrepreneurs,
and in these less certain times we must provide the incentives,
knowledge and guarantees to continue their mission of success.
I encourage my colleagues
to support this amendment.
