CONGRESSIONAL HISPANIC CAUCUS (CHC) APPLAUDS PASSAGE OF SMALL BUSINESS CAPITAL INVESTMENT BILL

June 18, 2010
Press Release
Legislation would providegreater financing options for small businesses


(Washington, DC) - Yesterday, the House of Representatives passed the “Small Business Lending Fund Act,” aimed at aiding small businesses in obtaining affordable credit through new incentive that will encourage banks to increase small business lending. HR 5297 recognizes the changing landscape in our nation’s financial markets by providing support for state lending initiatives and creating an early stage investment program to give small firms access to equity financing.

“Hispanics in the United States are starting businesses at a rate that is three times the national average,” said Rep. Nydia M. Velázquez, the Chairwoman of the House Committee on Small Business and the Congressional Hispanic Caucus. “This legislation will support the Latino community’s entrepreneurial spirit by providing the financial assistance they need.”

Under the proposal adopted small business owners who secure loans of up to $300,000 through the SBA will now receive direct support from a new barrower assistance program. The funds can be used at the entrepreneur’s discretion to reduce their interest rates, defer their loan, or cover monthly payments. The Hispanic business community nation wide could receive a total of $20 million from this new program, giving them added financial support during the economic recovery.

“Much has been done to help financial institutions, but small businesses, our most prolific job creators, have still been unable to access the credit they need. Through the borrower assistance fund we are channeling aid directly to small businesses” Velazquez added.

In many parts of the country, affordable capital remains one of key components necessary to business recovery with only 28 percent of small firms reporting that their credit needs are fully met, according to a recent survey. This legislation will help address this disparity by injecting nearly half-billion dollars of new lending into the economy.

“The Small Business Lending Fund Act takes concrete steps to meet the capital needs of entrepreneurs, ensuring their growth, and helping them create new jobs.” Velazquez said.
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