WASHINGTON – U. S. Representative Mary Jo Kilroy voted today to pass the Small Business Financing and Investment Act. The legislation would provide small businesses with access to the loans and investment dollars that will help create new jobs in central Ohio. By opening up rigid credit markets that have often shut out small business owners, the Small Business Financing and Investment Act will help small businesses attain credit, grow their operations, and lead our economy out of recession.
“I have heard from many hardworking small business owners in central Ohio, and this legislation will provide valuable support to those who are really struggling to get by during this economic crisis,” said Kilroy. “Giving small businesses, the real backbone of our economy, the necessary capital to survive and grow will create and save jobs for thousands of Ohioans.”
Small businesses create 60-80% of new jobs every year, but the current economic crisis made it difficult for American small businesses to get the credit they need. By updating the Small Business Administration’s capital access programs, the Small Business Financing and Investment Act is expected to support $44 billion in lending and investment for smaller firms and estimated to create and save an estimated 1.3 million American jobs.
The legislation also will increase loan sizes to better meet businesses’ needs. It 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 also takes steps to promote veteran-owned, women-owned and rural small businesses.
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