Kurt's Work

Congressman Kurt Schrader (D-OR) has spent his first 10 months in Congress working to help small businesses survive in this difficult economy. Continuing that focus, Congressman Schrader has introduced H.R. 3854, The Small Business Financing and Investment Act of 2009 which is estimated to create $44 billion in new lending.

“We’re starting to see some real signs of economic recovery but so far small businesses have been left behind because of the lack of available credit,” said Schrader. “As a small business owner I understand how critical credit is for companies to get the loans they need to make payroll and expand their businesses. This bill incentivizes lending, reduces bureaucratic red tape and increases the size of SBA loans to loosen the credit markets and get capital back into the hands of Oregon’s job creators; small businesses.” 

The provisions in the bill were drafted after several meetings with Schrader’s Small Business Advisory Board and a public hearing the Congressman held in Salem in August. During that hearing local business owners testified to their frustration with the lack of available loans and talked about possible solutions. Congressman Schrader, as Chairman of the Finance and Tax Subcommittee on Small Business, was able to work many of those ideas into H.R. 3854

Local Oregon business leaders were quick to praise Congressman Schrader’s efforts to ease the credit crunch. Nick Harville, Business Retention and Expansion Manager for SEDCOR explained:

“The almost total lack of credit to companies, especially in a small business state such as Oregon, has had a devastating effect on our economy,” said Harville. “Up and down the supply chain for goods and services, millions of dollars in sales have stopped, lines of credit frozen. This has cost hundreds if not thousands of jobs. HR 3854 has components that will help to educate lenders, reach new entrepreneurs and adjust limits to meet today’s industry needs. HR 3854 expands to help agriculture and other cooperatives.
HR 3854 will help put people back to work in stable, family wage jobs.”

Here are a couple of highlights of the bill:
• Increases the maximum gross size of 7(a) loans by 33 percent – from the current level of $2 million to $3 million.
• Provides assistance to lenders in the application, processing, and underwriting functions for 7(a) loans.
• Provides training to help encourage small banks, credit unions, and community lenders to participate in the 7(a) loan program.
• Reduces bureaucratic rep tape and paperwork burdens currently facing 7(a) loans
• Increases the maximum size of loans made under the Microloan program, both for intermediaries and borrowers
• Updates and streamlines the SBA’s largest investment program, the Small Business Investment Company (SBIC) program. H.R. 3854 seeks to increase the number and size of investments made in small firms under the program.

A full section-by-section of bill and a more in depth summary of its key provisions can be found on Congressman Schrader’s website at www.schrader.house.gov.

The bill was approved by a unanimous vote of the full Committee on Small Business and now heads to the floor for a vote of the full House of Representatives.