Washington, D.C. -  Congresswoman Hilda L. Solis (CA-32) released the following statement today regarding H.R. 1424, the Emergency Economic Stabilization Act of 2008, legislation to address the crisis in the financial markets. This legislation passed by a vote of 263 - 171. To become law it must be signed by the President.

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“Today, I voted to support the H.R. 1424, the Senate-passed Emergency Economic Stabilization Act.  

“This was a difficult decision. However, the growing evidence over the past few days confirmed that the economic crisis was spreading to the access to credit for everyday citizens.  Small businesses’ access to credit to finance their payroll and everyday operations is evaporating.  Students who rely on loans to finance their education are seeing their access to credit dry up, especially minority students who often bypass college because of the high cost of tuition.  Retirement and pension plans are losing value.  State and local governments cannot make needed infrastructure investments.  California could be forced to secure a $7 billion emergency loan from the Federal government to pay teachers and other expenses in our state in just a few weeks if the credit crunch is not addressed immediately.  

“Our economy is not stable.  Unemployment is over ten percent in parts of the 32nd Congressional district.  California is home to over 3.6 million small businesses that create good jobs in their communities.  Over 870,000 of these firms are owned by women and 427,000 by Latinos.  Half of small business owners rely on mortgages for lines of credit and cannot meet their payroll.  It is these small businesses that grow our economy and employ our families, and it is these small businesses that we must support.  If small businesses continue to face obstacles in accessing credit to support their payrolls and day-to-day operations due to the crisis, California’s already-high unemployment rate of 7.7 percent will undoubtedly spike.

“The impact of widespread foreclosures on our local economy and community is devastating.  I continue to be gravely concerned about the growing foreclosure crisis in California and throughout our country. In the 32nd Congressional District, housing foreclosures have nearly tripled in the past few months, with over 2,300 homeowners currently going through the foreclosure process. This bill helps revise mortgage terms and expands eligibility for Federal assistance through programs like the Federal Housing Administration’s Hope for Homeowners program. It also extends provisions to stop tax liability on mortgage foreclosures and requires the government to steer mortgages in danger of foreclosure to loan work out programs.

“This bill also contains important tax provisions that will help to create jobs in California and throughout the country when we need them the most.  It extends tax cuts for renewable energy and energy efficiency industries, which will generates 440,000 permanent and 1.2 million temporary jobs in solar industry alone by 2016 and which will help prevent the loss of more than 100,000 jobs by the end of the year in renewable energy and energy efficiency industries.  The bill also extends the tax break for film and television production, an important component of Southern California’s economy that creates jobs.  

“This is not an easy vote. This bill is far from perfect. It could have and should have gone further to help those facing foreclosure, including changing bankruptcy law to ensure that families can renegotiate untenable mortgages. It should do more to help small businesses access credit and allow access to foreclosure assistance for small businesses with subordinated debt. It should do more to address the root of this financial crisis in order to prevent future problems, including investing in our nation’s infrastructure and funding green collar jobs training. 

“The past week has generated significant debate about the best way to address this economic crisis that helps everyday citizens.  The impact of the credit crisis on small businesses, students, pensions and state and local governments is too large to do nothing, which is why I voted to support the Emergency Economic Stabilization Act.  I know that our work to stem the foreclosure crisis is not finished.  We need to do more and I will work very hard with the new Administration and fellow Members of Congress to make the regulatory changes needed to keep Wall Street honest and families in their homes.   But today, I am voting yes because we must act now. We must help small businesses. We must restore trust in our banking institutions and cap CEO payouts.  We must restore trust in our economy.  This bill is the first step to achieving economic security.”

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