Press Releases

Small Business Committee Reviews SBA Capital Access Programs

f t # e
Washington, February 26, 2019 | comments

Small Business Committee Reviews SBA Capital Access Programs

Washington – Today, the Committee on Small Business Subcommittee on Investigations, Oversight, and Regulations met for a hearing titled “Shutdown Lessons: SBA Capital Access Programs.”  Subcommittee Ranking Member Ross Spano (R-FL) delivered the following opening statement:

Remarks as Prepared for Delivery

Small businesses are coming off a banner year of increased optimism levels and confidence scores.  From investing in their businesses, their workers, and their communities, the nation’s smallest firms were busy in 2018. 

Positive economic news has continued in 2019, with U.S. unemployment near record lows, real wage growth, and wage gains across the nation. 

Despite these trends, small businesses, entrepreneurs, and startups still face headwinds when it comes to financing their endeavors.

Landing a conventional or traditional bank loan is often out of reach for them, thus putting their American Dream on hold.

With all other options exhausted, small businesses have the ability to turn to the Small Business Administration, and their many capital access programs, to assist with financing needs.     

Unfortunately, last month’s partial government shutdown halted many of SBA’s programs and created a buildup of loans waiting to be processed.

With SBA again up and running, I look forward to today’s hearing focusing on SBA’s Office of Capital Access.  

The Office of Capital Access administers some of SBA’s most important government guarantee programs, including the 7(a) Loan Program, the 504/CDC Loan Program, and the Microloan Program.

All three of these programs partner with financial institutions to deliver assistance to credit worthy firms that cannot access traditional or conventional lending markets.     

Due to lender fees in the programs, many of them are, and have been, running at zero cost to the American taxpayer.    

Combined, these programs support hundreds of thousands of jobs on an annual basis. 

From my home state of Florida, which has approximately 3.3 million individuals employed in the small business sector, to Ohio and beyond, these jobs are transforming the country’s economy. 

I look forward to hearing from the Associate Administrator regarding the operating plans they have in place during and after a government shutdown. 

Additionally, I am looking forward to an open discussion on other matters in SBA’s lending world in 2019.  

Congress must continue to create an environment where small businesses, entrepreneurs, and startups can flourish, grow, and create jobs. 

Simply put, when they are moving forward, so is the American economy. 

Thank you, Madam Chairwoman, and I yield back.

 

 

f t # e