Senate Jobs Bill Needs More Credit Access Provisions for Small Businesses
WASHINGTON, Feb. 17, 2010—The International Franchise Association and other small business organizations are calling on Senators to include more provisions in new job creation legislation to help small businesses access credit.
“We are concerned that if the Senate fails to listen to the needs of small businesses and address the credit crisis, a tremendous opportunity to help create new, sustainable jobs in 2010 and beyond will be lost,” 80 groups said in a letter today to all members of the Senate. “Our organizations are very disappointed that only one provision related to expanding small business access to credit is included in draft Hiring Incentives to Restore Employment Act, offered by Sens. Baucus (D-MT) and Grassley (R-IA).”
The groups said that none of the provisions aimed at improving the Small Business Administration (SBA) lending programs are currently in the latest proposal.
“We urge you to extend the SBA loan provisions of the American Recovery and Reinvestment Act (ARRA) through the end of December 2010. The depletion of funds last fall is proof that the SBA programs were, and continue to be, critically important for our nation’s credit-worthy entrepreneurs,” the groups said, adding that $354 million in appropriations is needed to fund the extension of the higher guaranty percentages and waiver of borrower fees for the balance of the fiscal year.
The groups also urged support for an IFA priority, an increase in the maximum loan size and the maximum guaranteed portion of SBA loans. Sens. Landrieu (D-LA) and Snowe (R-ME) have introduced legislation that would increase the maximum size of SBA 7(a) and 504 loans from $2 million to $5 million.
“This legislation would provide a commensurate increase in the statutory maximum guaranteed portion of SBA 7(a) loans with no impact on spending or revenue. These levels have bi-partisan support and are recommended by the Administration,” the letter said. “By including these provisions in upcoming legislation aimed at spurring new job creation, there is the potential to leverage an additional $16 billion in SBA lending in 2010 and create hundreds of thousands of new jobs.”
Investing in small businesses, particularly increasing access to credit, will create new, sustainable jobs in every local community, the groups wrote. By acting on these recommendations, the groups project that the Senate will help increase small business lending that will result in over 545,000 sustainable new jobs in the next year.
“Small businesses cannot be the engine of our economy if they continue to face unrelentingly tight credit markets,” the letter stated. “The Senate must include these important provisions in the job creation bills currently pending in order to restart the flow of credit to America’s small businesses or else these entrepreneurs will be left to sit on the sidelines.”
To view a copy of the letter,
About the International Franchise Association
The International Franchise Association, the world’s oldest and largest organization representing franchising, is the preeminent voice and acknowledged leader for the industry worldwide. Approaching a half-century of service with a growing membership of more than 1,300 franchise systems, 11,000-plus franchisees and more than 500 firms that supply goods and services to the industry, IFA protects, enhances and promotes franchising by advancing the values of integrity, respect, trust, commitment to excellence, honesty and diversity. For more information, visit the IFA Web site at