Washington, D.C.  – U.S. Representative Charles W. Boustany, Jr., R-Lafayette, today voted to increase access to the business start-up and economic development loan programs administered by the Small Business Administration (SBA).  The Small Business Lending Improvements Act (H.R. 1332) strengthens SBA loan programs by expanding access for low and moderate-income individuals, as well as residents and medical providers in rural areas.

In Southwest Louisiana, small business owners have been the backbone of our recovery from Hurricane Rita,” said Boustany.  “By specifically targeting rural areas, this bill ensures that SBA loans will be provided to the small business entrepreneurs who need this start up funding the most.  As a physician and former small business owner, I’m particularly pleased that medical providers will have increased funding to expand their care to our rural communities in Southwest Louisiana.”

H.R. 1332, the Small Business Lending Improvements Act

• Reduces burdensome borrower and lender fees for SBA business start-up (7a) loans

• Increases lender participation in the 7(a) program, particularly by small banks and community lenders, by reducing application burdens and expediting the process

• Creates Medical Professionals in Designated Shortage Areas Program, reducing borrower and lender fees to doctors and dentists located in federally designated Health Professional Shortage Areas, and eliminates those fees and increases the guarantee for loans made to veteran owned small businesses.

• Strengthens the community ties between certain lenders and their local economies, giving them the tools they need to make the loans that are needed by area businesses.

• Provides a simplified and straightforward standard for determining small business loan eligibility.

• Provides loans of up to $250,000 for a rural lending outreach program to be carried out only through lenders located in rural areas.