ICBA News Release
ICBA Chief Economist and Director of Federal Tax Policy
FOR IMMEDIATE RELEASE
Small Business Wins—SBA Loan Program Funding Restored in House
ICBA Praises Rep. Velázquez and 234 Members for Winning Amendment
Washington, D.C. (June 14, 2005) - Small businesses now have a better chance of securing the financing they need to start or grow their businesses and create jobs, thanks to a winning amendment passed in the House of Representatives today. The ICBA praised House Small Business Committee Ranking Member Nydia Velázquez (D-NY) for sponsoring the amendment to preserve the Small Business Administration's most successful lending program. The amendment passed today on a 234 to 189 vote.
"Community banks widely use the SBA 7(a) guaranteed lending program to provide thousands of loans to new and growing small businesses every year," stated Camden R. Fine, ICBA president and CEO.
The 2006 budget and the SBA had given zero-funding for the 7(a) loan program. The Velázquez floor amendment to the Science, Commerce, Justice, and State departments' appropriations bill provided $79 million for the SBA's popular 7(a) loan guarantee program in FY 2006.
"This funding will be leveraged by commercial lenders to allow some $16 billion in financing for our nation's small businesses and provide continued stimulus for our local economies," Fine stated. "Supporting the SBA's 7(a) program means more small businesses will benefit from lenders making SBA loans, creating or retaining up to 500,000 jobs for hard-working Americans."
Currently, the SBA 7(a) program is successfully leveraged to provide nearly one-third of all long-term capital funding for small businesses. Without an adequate appropriation for this program, thousands of small businesses would be unable to access the capital they need to start and grow their businesses and to hire new employees. This House-approved SBA budget must still pass Senate appropriations process in the weeks ahead.