(WASHINGTON, DC) – Congressman Dennis Moore (Third District-KS) voted for legislation today to provide small businesses with expanded lending opportunities. The legislation, H.R. 4062, reopens the Small Business Administration’s flagship access-to-capital-program, the 7(a) loan program, which was closed earlier this year.

“The number one problem cited by America’s 23 million small businesses is gaining access to affordable capital,” said Moore. “Small businesses are the greatest job creator in this country and act as a catalyst of our economic growth. This legislation helps ensure our entrepreneurs have the resources they need to succeed.”

H.R. 4062 lifts restrictions on the program, which had lowered limits on loan size. If H.R. 4062 becomes law, small businesses would once again benefit from working export capital loans, enabling companies to grow and compete in the global community. It would remove the regulatory restriction on SBA loans being part of larger financing packages. The loan guarantee would be increased to $1.5 million, giving small businesses more lending options. The legislation also reauthorizes the SBA through June 4, and reauthorizes the 504 loan program and the SBIC program through the end of the year.

“The 7(a) loan program is the SBA’s core lending program and accounts for roughly 30 percent of all long-term lending to this country’s small businesses,” said Moore. “7(a) loans spur economic development in underserved areas and can be used to purchase land, buildings, or even new companies.”

The SBA provides small companies with access to capital through its lending programs. Over the last decade, the SBA has approved more than 424,000 loans for over $90 billion – helping to launch countless new businesses in Kansas and across the country. These loans are the only source of affordable, long-term financing for many of our nation’s small businesses.

“While this legislation is a victory for small businesses, the necessary reauthorization of the SBA remains unfinished,” said Moore. “Investing in small businesses is crucial to rebuilding our economy, and I will continue fighting for our entrepreneurs.”

Congress is required to reauthorize the SBA every three years. While the reauthorization legislation, H.R. 2802, passed unanimously out of Committee with bipartisan support in July of last year, it still has not come to the floor. The adoption would strengthen and expand the lending programs, improve entrepreneurial programs, and help small businesses gain access to the federal procurement marketplace.