Tuesday
Jun152010
Hoyer Urges Republicans To Support Small Business Fund
Tuesday, June 15, 2010 at 1:06PM
By Linn Grubbstrom - Talk Radio News Service
House Majority Leader Steny Hoyer (D-Md.) told reporters Tuesday that a $30 billion fund for small business loans currently under consideration in the House would simplify the conditions for small businesses to acquire capital and would increase their ability to hire new employees.
"All of these are designed to get more money in the hands of small businesses, to expand and to create jobs all over the country," said Hoyer.
President Barack Obama outlined the importance of the fund, as well as a number of other spending measures, in a letter sent to Congressional leaders Saturday evening, and described the fund as a "cost-effective [way] of spurring job creation."
Although there has been grumbling on the right that the legislation amounts to a bail out, Hoyer highlighted the fact that small business owners and entrepreneurs support both sides of the aisle and said that Republicans should realize that when Congress votes on the small business legislation this week.
"I hope that the Republicans will come together and support this legislation because there are Republican small businessmen and Democrat small businessmen who are not able to get capital," said Hoyer. "All small businesses are struggling to get capital."
House Majority Leader Steny Hoyer (D-Md.) told reporters Tuesday that a $30 billion fund for small business loans currently under consideration in the House would simplify the conditions for small businesses to acquire capital and would increase their ability to hire new employees.
"All of these are designed to get more money in the hands of small businesses, to expand and to create jobs all over the country," said Hoyer.
President Barack Obama outlined the importance of the fund, as well as a number of other spending measures, in a letter sent to Congressional leaders Saturday evening, and described the fund as a "cost-effective [way] of spurring job creation."
Although there has been grumbling on the right that the legislation amounts to a bail out, Hoyer highlighted the fact that small business owners and entrepreneurs support both sides of the aisle and said that Republicans should realize that when Congress votes on the small business legislation this week.
"I hope that the Republicans will come together and support this legislation because there are Republican small businessmen and Democrat small businessmen who are not able to get capital," said Hoyer. "All small businesses are struggling to get capital."
Reader Comments (1)
This legislation is critical for small business to have access to capital. Conventional lending isn't available to most businesses without the SBA government guaranty in this economic climate. I recon this is due to the loan loss reserves that are not required on the SBA guaranty portion, hence 90% guaranty is a major factor even for active SBA lenders used to the 75% guaranty. This legislation is not a bailout- it merely stimulates lending to qualified borrowers because less of the bank's capital is tied up in loan loss reserves. This is the FACT that is being overlooked. The 90% guaranty is very important right now to lenders watching capital reserves and managing delinquent loan portfolios. Congress needs to continue the 90% guaranty at least through the end of the year, increase SBA loan size and allow loan refinance for 504 loans.