From the Office of Senator Kerry

Wednesday, September 5, 2001

WASHINGTON, D.C. - Senator John F. Kerry, Chairman of the Committee on Small Business and Entrepreneurship, along with Ranking Member Kit Bond (R-MO) and other Committee members, today held a roundtable discussion, The 7(a) Loan Guaranty Program: A Look at SBA's Flagship Program's Fees and Subsidy Rate. The meeting was held in order to examine the fees imposed on borrowers and lenders of the Small Business Administration's 7(a) Government Guaranteed loans.

Senator John F. Kerry (D-MA), who hosted today's event, had the following comment:

"This gathering today provides all of us who care about the future of small business the opportunity to examine one of the most important foundations of economic opportunity for small businesses -- 7(a) loans which provide millions of entrepreneurs with the financial support needed to start their own business. Fees imposed on lenders and passed on to borrowers must be kept at a minimum - when credit dries up from traditional lenders, the ones who suffer are women and minorities."

"Too many borrowers and lenders have been paying burdensomely high fees for these loans -- and now, faced with a sagging economy, are calling for a reduction in burdensome and needless fees that are holding back the engine of our economy, small businesses. Access to affordable credit is not an added bonus, it is necessary for the sprouting of new, successful businesses. Government Guaranteed loans provide this support small businesses need, not just for their own financial success, but for the prosperity of the nation -- and we ought to make them work for every small business that can contribute to the health of our economy."