Gordon Votes to Help Tennessee Small Businesses

October 29, 2009, WASHINGTON, D.C. – To further help Tennessee small businesses struggling to access affordable credit and investment capital, Congressman Bart Gordon voted today for bipartisan legislation that will modernize the U.S. Small Business Administration’s capital access programs for the first time in 10 years, reduce paperwork, and unlock lending for cash-strapped entrepreneurs.  The legislation also builds upon the successes of SBA programs established by the Stimulus bill to help small businesses.

“In Tennessee, more than 95% of our state’s private workforce is employed by small businesses,” said Gordon.  “Helping these businesses weather the economic climate and continue to grow is essential to getting Tennessee’s economy back on track.  This bill will do just that.”

The Small Business Financing and Investment Act (H.R. 3854) overwhelmingly passed the U.S. House of Representatives by a vote of 389 to 32.  The bill establishes a public/private partnership at the SBA that will invest in new, promising small businesses so they can create jobs.  Early-stage businesses have been found to be some of the best job creators.  For businesses that are major employers in an area, the legislation will allow them to secure loans as high as $25 million.  This will help small businesses access larger amounts of capital, especially those that are significant contributors to local employment.

“By comprehensively modernizing the SBA capital access programs, this bill is estimated to create or save 1.3 million jobs each year,” said Gordon.  “I’ve heard from a number of Middle Tennessee small business owners, who are still having trouble accessing credit, even with the new programs created by the Stimulus.  This legislation addresses many of their concerns and extends programs created by the Stimulus that have proven to be effective.”

The legislation makes it easier for both small business borrowers and lenders to access SBA loans by reducing required paperwork and establishing new training programs about the available SBA loans.  It also reauthorizes and improves the America’s Recovery Capital program, which helps small businesses experiencing financial difficulty directly related to the economic recession.  The legislation raises the ARC no-interest loan sizes from $35,000 to $50,000 for eligible small business to help them pay off existing debt.

“This bill builds on what has been shown to work and includes targeted measures to reach out to groups like veteran-owned businesses and rural business operations to let them know of assistance available through the Small Business Administration,” added Gordon.

The bill now moves to the Senate where it is expected to be considered in the next few weeks.