WASHINGTON, (May 25, 2005) - Congressman Bobby L. Rush announced today his commitment to spurring entrepreneurship with the introduction of two new bills in the U.S. House of Representatives that would facilitate small businesses in obtaining larger loan amounts with lower interest rates, while also providing training and technical assistance.

 Concerned with the barriers that small businesses and startups face when attempting to access midsize loans between $35,000-200,000, H.R. 2639 – Small Business Intermediary Lending Pilot Program Act of 2005 would establish a pilot program to provide low interest loans to nonprofit, community-based lending intermediaries. Lenders would offer technical assistance to reduce the transaction costs and risk exposure of banks.  Separately, H.R. 2640 – SBA Microenterprise Improvement Act would revise the eligibility for microloan intermediaries, increase the maximum microloan small amount from $7500 to $10,000, increase technical assistance contracting to 30%, adjust the term limit for loans, and create reporting requirements that will highlight the successes of public-private partnerships.

 “Microloan programs create jobs that stay in the community, which is very important these days as we hear of increased off-shore movements by large corporations to remain competitive worldwide,” Rush said.  “These programs also foster entrepreneurship, opportunities for growth and economic independence.”

 Rep. Rush is currently seeking support from his congressional colleagues and his constituents.  Both bills are presently at the committee level.