Chamber Hails Senate Passage of Loan Program Fix

WASHINGTON, D.C. – The United States Chamber of Commerce today applauded Senate passage of legislation that will provide expanded lending authority for two popular Small Business Administration loan programs.

"This is a big win for small businesses," said Bruce Josten, Chamber executive vice president. "It is critical to our economy to provide American entrepreneurs, the backbone of our economy, with every tool necessary to create jobs."

Following the House lead, Senate lawmakers have restored full funding to the SBA 7(a) guaranteed loan program, which plays an important role in providing an alternative means of obtaining capital for many small business owners when conventional lending methods are not available.

Due to shortfalls in the fiscal year 2004 budget, 7(a) program was operating under severe restrictions that denied entrepreneurs access to the funds required to start, grow and expand their businesses, according to the Chamber. Additionally, the Chamber praised Senator Olympia Snowe's (R-ME) effort in developing the legislative framework by which the industry and administration's compromise was made.

Also contained in this bill is an extension of the authority for fees charged to lenders and borrowers for the SBA 504 loan program. The authorization, extended until September 30, 2004, averts a shutdown of the popular loan program until permanent re-authorization can be passed this summer. The bill is now headed for the President's desk where it is expected to be signed into law early next week.

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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