(Washington, D.C.)–Congressman Jim Langevin today voted in favor of an amendment to add an additional $79 million in funding for the Small Business Administration’s (SBA) 7(a) loan program.  The 7(a) program is the most commonly used SBA loan, and backs billions in loans to small businesses each year. The amendment passed by a vote of 281 to 137. 

“Lending through the SBA loan programs currently represents a significant portion of all small business lending,” said Congressman Langevin, a former member of the Small Business Committee.  “Small businesses are often financially strapped with insurmountable debt before their companies have even had a chance to get off the ground.  Without access to financing, companies are unable to target new markets, grow, or hire new workers.”

This year, House Republicans proposed to eliminate the Microloan program and cut all funding for small business 7(a) loans.  Over the past three years, the Bush Administration created 76,000 pages of new regulation for small businesses.  They also broke their promise to open the $285 billion federal marketplace and create a fair and open federal contracting system, costing small businesses $13.8 billion in lost opportunity each year. 

In January of this year, Congressman Langevin called upon the SBA Administrator to immediately reinstate the SBA's then-bankrupt 7(a) loan program.  He also urged the SBA, White House and Congressional appropriators to ensure that sufficient resources are provided in the future to guarantee the program's solvency.

“Rhode Island small businesses are critical to our state’s economic health,” added Langevin.  “These companies account for approximately 75 percent of the net new jobs added to the economy.  Without 7(a) loans, our communities would be unable to create and maintain local jobs." 

-30-