Holt Urges Congress to Provide More Reliable, Long-Term Assistance for Small Businesses
(Washington, DC) - Today, Representative Rush Holt (NJ-12) issued the following statement on the Temporary SBA Re-Authorization Bill (H.R. 5008):
"Small businesses are vital to our local economy. According to the House Small Business Committee, small businesses create 75% of all new jobs and produce half of the country's Gross Domestic Product. We can help small businesses thrive by providing tax incentives and loan guarantees on which they can plan.
"Unfortunately, the Temporary SBA Re-Authorization Bill (H.R. 5008) is a band-aid. While it prevents the Small Business Administration from closing its doors, it fails to provide long-term stability to small companies that rely on government as part of their business strategy. In central New Jersey alone, more than 230 small businesses made use of the SBA's 7(a) Loan Program in 2003. Passing a band-aid to keep the SBA open until the end of the month is better than nothing, but it is hardly the type of long-term solution we need.
"For more than a year, I have joined many of my colleagues on both sides of the aisle in demanding a multi-year solution for the SBA. Specifically, the Small Business Reauthorization and Manufacturing Revitalization Act (H.R. 2802) would provide small business start-ups and entrepreneurs with increased access to capital by modernizing and expanding SBA loan programs. To date, our efforts have been blocked, thus denying small businesses the benefit of reliable loan and technical assistance programs.
"By failing to debate and pass serious, long-term legislation to put SBA on solid footing, Congress hinders the ability of small businesses in New Jersey and around the country to do their financial planning with some reliability and predictability. As a result, it hinders the capacity of our small business sector to create jobs, develop new products and services, and maintain their profitability. We can do better."