From the Office of Senator Kerry

Friday, April 6, 2001

WASHINGTON, D.C. -The Senate today passed an amendment by Senator John F. Kerry, (D-MA) ranking member of the Senate Committee on Small Business, that restores cuts to the Small Business Administration (SBA) in the FY 2002 Senate Budget Resolution. The Bush Administration's FY 2002 budget proposal would have cut the SBA budget by 26 percent and imposed additional fees on small businesses seeking loans and capital.

Kerry said, "This vote is a clear signal that President Bush should now reverse course and begin to work with us to build on the tremendous gains achieved by small businesses over the past 8 years. The cuts and fee increases in the SBA recommended by President Bush would have seriously undermined America's small businesses, which have driven our country's remarkable economic growth. With the economy slowing, now is the time to adequately fund and support the Small Business Administration's policies and actions that have proven themselves successful to the small business who continue to be such a vital part of our nation's economy."

Kerry's amendment increases SBA funding by $264 million to fund programs which provide loans and business assistance to America's 24 million small businesses. The Kerry amendment also restores or adds $166 million for 7(a) loans, Small Business Investment Companies, Microloans, and New Markets Venture Capital funding. The amendment additionally provides $98 million for critical programs such as the Veterans Business Corporation, Small Business Development Centers, BusinessLINC, Women's Business Centers and The National Women's Business Council.

The Kerry amendment works to eliminate many of the Bush Administration's proposals to increase taxes on certain small businesses by raising fees on small businesses which need 7(a) guaranteed business loans for operating expenses.