From the Office of Senator Kerry

Thursday, June 22, 2000

WASHINGTON, DC — Senator John F. Kerry (D-MA) today joined senators on both sides of the aisle to introduce the American Community Renewal and New Markets Empowerment Act. Senator Kerry and Senators Lieberman (D-CT), Torricelli (D-NJ), Kohl (D-WI), Santorum (R-PA), Abraham (R-MI) and Hutchinson (R-AK) unveiled a plan that creates economic incentives to help close America's wealth gap. The plan includes Kerry's new markets legislation introduced last September, the Community Development and Venture Capital Act, and full funding, $93.4 million, for the Round II of Empowerment Zones — Roxbury, Dorchester and Mattapan, and their 57,000 residents.

"This plan builds on the President's and Speaker's agreement by securing the full $93.4 million in funding for Massachusetts' Empowerment Zone," said Senator Kerry. "So far, the money has dribbled in -- only $6.6 million of the $100 million authorized over ten years -- and made it impossible for the city to implement a plan for economic self-sufficiency. Some 80 public and private entities showed incredible corporate citizenship and committed to matching the EZ money, eight to one, yet the city hasn't been able to tap into that money because Congress hasn't held up its part of the bargain. I am extremely pleased that we were able to work together and find a way to provide full, steady funding to these zones. That money means education, daycare, transportation, and basic health care in areas where almost 50 percent of kids are living in poverty and nearly half the residents over 25 don't even have a high school diploma."

This bill also includes Sen. Kerry's new markets legislation. Its purpose is to stimulate economic development through public-private partnerships that invest venture capital in smaller businesses that are located in impoverished rural and urban areas (known as new markets because of the overlooked business opportunities) or that employ low-income people. Both innovative and fiscally sound, this legislation is financially structured similar to Small Business Administration (SBA)'s successful Small Business Investment Company (SBIC) program, and incorporates a technical assistance component similar to that successfully used in SBA's microloan program. However, unlike the SBIC program, which focuses solely on small businesses with high-growth potential and claims successes such as Staples and Calaway Golf, the New Markets Venture Capital program will focus on smaller businesses that show promise of financial and social returns, such as jobs -- what we call a "double bottomline."

"In this time of great prosperity, it is time that we expand investment in our neediest communities and build on the economic activity created by loans," said Senator Kerry. "I think one of the most effective ways to do that is to spur venture capital investment in our neediest communities. There is no single answer to poverty, but this legislation is a step to harnessing private sector investment in these communities."

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