Levin Calls on Small Business Administration to Help Michigan Create Jobs

WASHINGTON – Sen. Carl Levin, D-Mich., today called on the Small Business Administration to help Michigan address the state’s job losses, which have led to the highest unemployment rate in the country. Levin requested a meeting with SBA Administrator Steven Preston to discuss what the SBA can do to help Michigan small businesses create jobs.

“I’d like to know specifically what SBA is doing with its programs to address the problems in states like Michigan that are suffering from high unemployment, job losses and high foreclosure rates,” Levin wrote to Administrator Preston. “I’d also appreciate knowing what you intend to recommend to Congress for inclusion in the economic stimulus package that will help small businesses in states like Michigan. In addition to passing an economic stimulus package in a timely manner, I believe the federal government should look at how it can use all of its existing programs in a targeted way to help the states that need the most assistance, including much more aggressive marketing of its programs in Michigan.”

“When an economy is in or nearing recession, one of the first groups to be hurt is small businesses in the form of reduced access to credit,” Levin wrote. “This is where SBA’s role is so important because SBA’s programs are designed to help small businesses when the private sector may not be doing so.”

Levin’s letter to the SBA follows:

January 18, 2008

Mr. Steven C. Preston
Administrator
U.S. Small Business Administration
409 Third Street, SW
Washington, DC 20416

Dear Administrator Preston:

Michigan’s 7.4 percent unemployment rate is the highest in the country. We’ve lost 240,000 manufacturing jobs since 2001 and Michigan is one of the states hit hardest by the housing downturn. As the U.S. Congress and the administration work together to develop an economic stimulus package, I write to ask that SBA do more in Michigan to address the job losses that have occurred there.

SBA’s Office of Advocacy acknowledges that new business creation is key to increasing a state’s employment. Since small businesses are a key contributor to job creation, assisting small businesses during an economic downturn is of critical importance. Unfortunately, when an economy is in or nearing recession one of the first groups to be hurt is small businesses in the form of reduced access to credit. This is where SBA’s role is so important because SBA’s programs are designed to help small businesses when the private sector may not be doing so. For instance, a recent Urban Institute Study commissioned by the SBA determined that SBA programs help small businesses by getting credit to small businesses that cannot obtain credit elsewhere. These programs become especially important during a credit crunch or economic downturn.

I’d like to know specifically what SBA is doing with its programs to address the problems in states like Michigan that are suffering from high unemployment, job losses and high foreclosure rates. I’d also appreciate knowing what you intend to recommend to Congress for inclusion in the economic stimulus package that will help small businesses in states like Michigan. In addition to passing an economic stimulus package in a timely manner, I believe the federal government should look at how it can use all of its existing programs in a targeted way to help the states that need the most assistance, including much more aggressive marketing of its programs in Michigan.

I will be calling you to set up a meeting for next week to discuss how SBA can do more in Michigan to help small businesses create jobs. Thank you for your consideration of my request and I look forward to talking to you.

Sincerely,

Carl Levin