Small Business Access to Capital

 

Small business makes a distinctive and creative contribution to the American economy. For most Americans seeking economic independence, small business ownership offers the greatest opportunity. Small businesses produce a major share of business innovation. Their numbers make them the largest source of private employment and the most tangible local representation of the private enterprise system in America today. One barrier to entry into small business ownership is access to capital, especially long-term debt financing. The U.S. Chamber recognizes that ensuring the availability of financing to foster the growth and expansion of small businesses is in the best interest of the American economy.

 

The Chamber formed the Small Business Access to Capital Coalition in August 2002 to ensure that federal government– guaranteed lending programs that provide small businesses with access to capital, especially long-term capital, use the private sector to distribute funding adequately and cost-effectively to the small business community. The Chamber and the Coalition supported legislation in the 107th Congress to correct the federal government subsidy rate calculations that reduced the program funding level and overcharged for government-guaranteed loans to small businesses in FY 2003. In FY 2004, the Chamber again led legislative efforts that resulted in the lifting of restrictions on the government-guaranteed lending programs for small businesses.

 

 

The Chamber will continue to assess the adequacy of government programs that reduce the risk of private sector lending to small business. The Chamber will encourage passage of legislation to correct subsidy rate calculations and funding levels of existing programs for FY 2005 and FY 2006 to meet anticipated demand for these programs.