TIERNEY IN ACTION
Subscribe to my Tierney in Action RSS Feed
| Tierney Supports Small Businesses |
|
Tierney Supports Small Businesses
WASHINGTON, DC – Last night, Congressman John Tierney (D-MA) reaffirmed his support for small businesses - the engine of job creation and economic growth - in these troubled economic times and voted in favor of the Small Business Financing and Investing Act. The bill passed in the House by a vote of 389 to 32 and currently awaits action in the Senate. “With this legislation we are helping small firms find affordable sources of capital, one of the biggest challenges our entrepreneurs are telling me they face in the current economy,” said Tierney. He continued, “We get daily calls in my office from small business owners who want to know which programs are available to them. Since the Recovery Act was signed into law we have seen an average weekly loan volume in Massachusetts increase by 78% compared to January and February volumes, illustrating to us that early-stage and established small businesses are indeed looking for creative ways to stay afloat in these tough economic times.”Small businesses create an estimated 60-80% of new jobs every year, but the current economic crisis has frozen credit and made it difficult for American small businesses to get needed financing. By comprehensively updating the Small Business Administration’s capital access programs, the legislation is expected to support $44 billion in lending and investment for smaller firms. The legislation will increase loan sizes to better meet businesses’ needs. It also includes incentives to encourage local banks to lend to small businesses and reduces bureaucratic red tape, making it easier for entrepreneurs to secure credit. The bill creates a new public/private partnership to expand investments in small business startups – an important source of job creation. It also extends critical Recovery Act provisions eliminating fees on Small Business Administration loans and guaranteeing up to 90% of 7(a) loans. To foster a diverse mix of businesses, it takes steps to promote veteran-owned, women-owned, minority-owned and rural small businesses.
-30- |