Chamber Applauds Passage of SBA Loan Funding Program

WASHINGTON, D.C. — The United States Chamber of Commerce applauded passage of legislation that increases the accessibility of capital for small businesses through the Small Business Administration's 7(a) program.

"Small businesses are a driving force in the American economy," said Giovanni Coratolo, Chamber director of small business policy. "During this time of economic uncertainty, it is imperative we ensure small businesses have access to the resources they need to achieve success. The Senate, and now the House, have taken a major step in support of small businesses, and the Chamber urges the President to approve this bill quickly."

The Chamber-led "Small Business Access to Capital Coalition," a coalition of 30 small businesses and banking organizations, engaged in a yearlong effort to promote greater access to capital for small businesses by increasing the fiscal year 2003 funding levels for the SBA 7(a) guaranteed lending program. The government has consistently overestimated the cost of the 7(a) program alone, reducing lending by $6 billion this year, according the General Accounting Office.

S.141, introduced by Sen. Olympia Snowe (R-Maine), requires the Office of Management and Budget to use a new econometric model to determine the cost of the program to the government. By using this model, funding for government-guaranteed small business loans will increase from $4.85 billion to more than $8 billion.

"We applaud Congress for taking this positive step to ensure entrepreneurs will have every advantage possible," Coratolo said. "Providing full support for this program is critical for small businesses and the jobs they provide."

The SBA 7(a) program accounts for 40 percent of all long-term lending to small businesses, with 44,000 loans being made annually as a result of this popular program.

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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