News
From CongresswomanNydia M. Velázquez
Representing New York's 12th Congressional District - Brooklyn, Manhattan, Queens
Ranking Democratic Member, House Small Business Committee
News
From Congresswoman
Nydia M. Velázquez
Representing New York's 12th Congressional District
- Brooklyn, Manhattan, Queens
Ranking Democratic Member, House Small Business Committee
For Immediate
Release
April 26, 2005
CONTACT: Kate Davis, Allyson Ivins, 202-225-4038
MEDIA ADVISORY
Entrepreneurs
to See Lowered Costs in Accessing Capital
Legislation to be introduced to address needs of small businesses
and lenders
WASHINGTON - In observance of National Small Business Week, Congresswoman Nydia M. Velázquez (D-N.Y.), Ranking Member of the House Small Business Committee and her colleagues will introduce legislation, the Small Business Access to Capital Act. Joining them will be small businesses and lenders from across the country who will speak on the need to make capital more affordable. Access to affordable capital is key in allowing entrepreneurs to successfully start their businesses.
The Small Business Administration's (SBA) largest lending program - the 7(a) loan program, which provides 30 percent of all long-term loans - has traditionally filled this role. However, recent actions taken by the administration raised the costs for both small businesses and lenders, doubling the upfront fees anywhere from $1500 to $3000. Since the fee increase was implemented, there has been a decline each quarter in the amount of loans made through the program - loans declined by nearly $400 million in the first quarter and then an additional $140 million in the most recent quarter.
These increased fees came on top
of already skyrocketing healthcare, energy, and gas costs, increasing interest
rates and a budget deficit nearing $427 billion, which have made it difficult
for small businesses to start and expand their businesses. The Small Business
Access to Capital Act of 2005 will lower the cost to small business and lenders
using SBA's 7(a) loan program, while providing new lending tools for banks.
When and Where:
When: Wednesday, April 27, 2005, at 9:30 a.m.
Where: Capitol Building,
HC-9
Who: Rep. Nydia M.
Velázquez, Ranking Democrat, House Small Business Committee
Democratic Members of the House Small Business Committee
Small Business Owners
Lenders
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