Kurt's Work

February 24, 2009

SCHRADER STATEMENT ON US CHAMBER OF COMMERCE SUPPORT FOR HIS VOTE ON ECONOMIC RECOVERY PACKAGE

Washington D.C. – The United States Chamber of Commerce issued a press release applauding Congressman Schrader for his support of the economic recovery package. Schrader (D-OR) released the following statement in response.

“Our economy has lost 3.6 million jobs in the past 13 months. This package throws a necessary lifeline to the American people and business leaders understand the importance of immediate job creation. As well as creating and saving around 3.5 million jobs, this package is estimated to create $21 billion in new investments and lending to small businesses alone. As a subcommittee chair and member of the House Small Business Committee, I’m proud of the critical assistance the recovery package provides for small businesses. I’m pleased to have the support of the U.S. Chamber of Commerce and I look forward to continuing to work with them and businesses leaders from across this country to put Oregonians back to work.”

Local business leaders, including the North Clackamas Chamber of Commerce, have also expressed their support for Congressman Schrader and his work on the federal recovery package.

“As a small-business owner, Kurt Schrader understands the difficulties facing Oregon small-businesses,” said Wilda Parks, Executive Director of the North Clackamas Chamber of Commerce. “Our businesses are thrilled with the support coming from the federal government. Businesses will benefit from new capital and lending as well federal investments in infrastructure and other projects slated to save or create 44,000 new jobs in Oregon. I look forward to continuing to work with Congressman Schrader to turn around our economy and revitalize Oregon businesses.”

The release issued by the U.S. Chamber of Commerce is attached. A summary of provisions benefitting small-businesses in the economic recovery package can be found on the next page.

Summary of Small Business Provisions in Economic Recovery Package

• Reduce to zero fees on SBA-backed loans.  At the urging of House Members, the conference report includes language requiring that fee reductions go to small business borrowers.
• Raise the percentage of a loan that the Small Business Administration (SBA) may guarantee from 85 percent to 90 percent, encouraging banks and private lenders to reenter the market for SBA-backed loans.
• Establish a new “Small Business Stabilization Financing Program” that will allow SBA to make no interest loans to firms that are struggling to make payments on existing debt.  
• Unfreeze the secondary market by allowing “broker-dealers” of SBA-backed loans to take out additional loans from SBA in order to purchase additional loans off banks’ books.  This will provide banks with liquidity so they can lend to small businesses again. 
• Allow SBA to guarantee existing debts in loan pools that are currently unguaranteed.  This, too, will provide liquidity in the secondary market so that banks begin lending again.
• Allow small businesses to refinance existing debts under the SBA’s 504 program.
• Streamline the Small Business Investment Company (SBIC) program to provide fast growing companies with equity capital they need to grow and create jobs.
• Ensure oversight by requiring the Government Accountability Office (GAO) to report to Congress on the implementation of the small business lending provisions in the stimulus.
• Provide $15 million to the SBA’s surety bond program, including larger bonding authority, to help small firms obtain construction related projects.