Washington, DC (March 25, 2009) – The American Recovery and Reinvestment Act of 2009 that was signed into law this past February represents the largest government investment in over 60 years.  This is the beginning of a historic influx of federal funding coming to Deep South Texas that will help create more employment and educational opportunities for our communities. This is a plan that will make our local economy stronger and more competitive in the short and long term.

Part of this historic action is directed at helping small businesses.  There are over 2.1 million small businesses in Texas.  They operate in a wide array of industries: construction, retail trade, health care services, and many more.  Small businesses have been hit especially hard by the current economic downturn and lack of credit availability.  It has been harder for small businesses to maintain current staff levels, to secure new loans, or to explore new financing opportunities.  

When I worked with my family’s business, I experienced first-hand the challenges these enterprises face daily.  The current situation only compounds the problem.  That is why we needed to act in Washington to finish the debate and pass the 2010 federal budget.  We know that in these tough economic times, small businesses can help spur job growth and steer our economic situation upwards.  I believe that the road to economic recovery will be paved in large part by America’s small businesses.

With that in mind, the American Recovery and Reinvestment Act will support our small businesses providing tax incentives and financing opportunities to help them create jobs. Through the Small Business Administration, the Act will make it easier and less expensive for small businesses to get loans, give lenders new incentives to make more SBA loans, and help unfreeze the secondary markets that will boost liquidity in the credit markets.  The bill includes the following:

• $375 million for temporarily eliminating fees on SBA-backed loans and raising SBA's guarantee percentage on some loans to 90 percent.  The elimination of fees, announced on March 16, will remain in effect until the end of the calendar year or until the funding is exhausted.  The elimination of fees is retroactive to the day the Recovery Act was signed into law.
• $255 million for a new loan program to help small businesses meet existing debt payments  
• $30 million for expanding SBA’s Microloan program, enough to finance up to $50 million in new lending and $24 million in technical assistance grants to microlenders
• $20 million for technology systems to streamline SBA’s lending and oversight processes
• $15 million for expanding SBA’s Surety Bond Guarantee program
• $25 million for staffing up to meet demands for new programs
• $10 million for the Office of Inspector General

Throughout Deep South Texas, small businesses will be able to benefit from these funds to help weather the storm and start on the road to recovery.  We need to help small businesses to stand on their feet and create new jobs in our community.  

South Texas entrepreneurs have traditionally shown the ability and willingness to be relentless in their pursuit of capital and new markets.  With the help that our government is providing, this leadership can and must continue.  I plan to carry on during my seventh term in Congress being proactive, persistent, and diligent.  I will continue being a team leader and helping reduce the jobless rate to a single digit of 6% and improving the quality of life for all families.  An extraordinary amount of progress to this end has been made and it is our small business owners, through increased access to capital and new markets, who can most help achieve this goal.

- Congressman Rubén Hinojosa (TX-15)

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