U.S. Rep. Mike Castle (R-Del.) voted in favor of H.R. 3854, the Small Business Financing and Investment Act, on Thursday, Oct. 29.
This bill would provide more loans, through the Small Business Administration, and increase small business development programs in an attempt to increase access to investment capital to investment firms.
"The key to revitalizing our economy are the 26.8 million small businesses across the nation, including the over 19,000 in Delaware,” Castle said. “Therefore, it is vital that they have every opportunity to thrive and prosper.”
Small businesses account for 93.5 percent of the state's employers, he said. They are the foundation for job growth, innovation, competition and important services. Genuine, long-term economic sustainability should be encouraged with legislation to enable growth through loans as reflected in this bill but should be coupled with protection from an increased tax burden."
HR 3854, as passed by the House this week, would:
- Authorize $20 billion in fiscal years 2010 and 2011 for long-term loans for business startups, delivered through commercial lending institutions and guaranteed by the SBA
- Improve the America's Recovery Capital (ARC) program by increasing the loan size from $35,000 to $50,000 to help thousands of small businesses that are facing immediate financial difficulty
- Creates a capital backstop program at SBA to operate during a recession, whereby the SBA would accept applications from businesses if they are unable to find a lender in their area and would then attempt to find a bank nationally to make the loan. If the SBA cannot find a lender, the SBA would be authorized to make the loan
- Authorize $30 million in operational assistance grants and $1 billion in loan guarantees for each of Fiscal Years 2010 and 2011 for Renewable Energy Capital Investment Programs, created by the 2007 energy bill to allow SBICs to invest in small businesses involved in renewable fuel production.
The bill now goes on to be voted on in the U.S. Senate.
