Press Release

Contact: Sabrina Siddiqui 202-226-6476

Washington, Oct 29 - Today, Congressman Dave Loebsack (D-IA) voted to create new jobs and stimulate the economy by providing small businesses with access to the loans and investment dollars they need to expand and grow their operations. The Small Business Financing and Investment Act will help open credit markets that have shut out small business owners during this economic crisis, aiding job creation and economic development. Small businesses represent 97% of Iowa employers and over half of Iowa’s private-sector employment.

“In Iowa, small businesses are the lifeblood of the economy; they are the driving force behind job creation,” said Congressman Dave Loebsack. “By helping small businesses grow, we are putting Americans back to work, supporting innovation in our economy and laying the groundwork for our future prosperity.”

Small businesses create 60-80% of new jobs every year, but the current economic crisis has frozen credit and made it difficult for small businesses to get the financing they need. By comprehensively updating the Small Business Administration’s capital access programs, the legislation is expected to support $44 billion in lending and investment for smaller firms.

Additionally, this legislation includes improvements to SBA’s Disaster Loan program such as raising disaster loan limits and the ceiling for collateral requirements, and improving repayment terms. Further, the bill creates a grant program to help the most severely affected small businesses and will provide assistance to Women and Veteran outreach centers, Small Business Development Centers, and local chambers of commerce in reaching disaster victims for case management purposes.

“Many Iowa businesses face another burden. In 2008, we experienced the worst natural disaster in our state’s history leaving 85 of 99 total counties disaster areas,” Congressman Loebsack noted. “I am especially pleased with these improvements given the disaster in Iowa and I look forward to working further to improve the SBA Disaster Loan Program given some of the problems we experienced with the disaster loan program.”

The legislation will also increase loan sizes to better meet businesses’ needs. It includes incentives to encourage local banks to lend to small businesses and reduces bureaucratic red tape, making it easier for entrepreneurs to secure credit. The bill creates a new public/private partnership to expand investments in small business startups – an important source of job creation. It also extends critical Recovery Act provisions eliminating fees on Small Business Administration loans and guaranteeing up to 90% of 7(a) loans. To foster a diverse mix of businesses, it takes steps to promote veteran-owned, women-owned and rural small businesses.