WASHINGTON – Today, Senator John Kerry (D-Mass.) hosted a roundtable discussion on legislation he introduced this week to expand and improve the government's top lending programs for entrepreneurs. With access to capital regularly cited as a top concern among small business owners in Massachusetts and around the country, Kerry convened the roundtable to hear directly from small business owners, advocates, lenders and the Bush Administration.
"Just last year, small business loans helped create and retain about 22,000 jobs in Massachusetts," said Kerry. "It is those kinds of results, helping entrepreneurs and creating jobs, that show these programs are working for Bay State businesses. My bill will increase opportunities for our entrepreneurs to succeed and expand the reach of these programs to underserved communities, including minorities and women, so they will have a fair shot at getting the capital they need to achieve the American dream."
In 2006, more than 2,800 Massachusetts small businesses received $365 million in 7(a) and 504 loans, creating or retaining an estimated 21,800 jobs in the state. While these programs are effective and contribute to the economy, there is a need to improve them and reach more minorities and veterans, filling a gap left by the private sector. In Massachusetts, the percent of 7(a) loans to African Americans and women has remained stagnant while the percent of loans to veterans has decreased since 2001. The percent of 504 loans to women and veterans in Massachusetts has decreased since 2001.
The Small Business Lending Reauthorization and Improvements Act (S. 1256), cosponsored by Senators Olympia Snowe (R-Maine) and Carl Levin (D-Mich.), expands the Small Business Administration's (SBA) 7(a) and 504 loan and microloan programs which provide long-term financing that small firms could not receive through normal channels.
Western Massachusetts Enterprise Fund, Inc.'s, Executive Director Chris Sikes participated in the roundtable and spoke about the importance of the SBA's microloan and microloan technical assistance programs to Massachusetts firms.
"The microloan program has been the core of our microenterprise development program since its inception because it is the only program which marries technical assistance with lending. By linking technical assistance with the loan, a long-term partnership is established which helps move an enterprise from the start-up, early phase to a more stable, mature position," said Sikes, from Greenfield, Mass.
Newton, Mass., small business owner Joan Wasser Gish advocated for Kerry's proposal to create a pilot program to extend small business loans to non-profit child care providers.
"Early education and care supports the overall economy and non-profit providers play a very important role in low-income communities, educating children and supporting working parents and the businesses they work for. Senator Kerry's proposal could have a significant positive impact on parents, businesses and communities across Massachusetts," said Wasser Gish, who runs Policy Progress.
Specifically, the Small Business Lending Reauthorization and Improvements Act:
"Just last year, small business loans helped create and retain about 22,000 jobs in Massachusetts," said Kerry. "It is those kinds of results, helping entrepreneurs and creating jobs, that show these programs are working for Bay State businesses. My bill will increase opportunities for our entrepreneurs to succeed and expand the reach of these programs to underserved communities, including minorities and women, so they will have a fair shot at getting the capital they need to achieve the American dream."
In 2006, more than 2,800 Massachusetts small businesses received $365 million in 7(a) and 504 loans, creating or retaining an estimated 21,800 jobs in the state. While these programs are effective and contribute to the economy, there is a need to improve them and reach more minorities and veterans, filling a gap left by the private sector. In Massachusetts, the percent of 7(a) loans to African Americans and women has remained stagnant while the percent of loans to veterans has decreased since 2001. The percent of 504 loans to women and veterans in Massachusetts has decreased since 2001.
The Small Business Lending Reauthorization and Improvements Act (S. 1256), cosponsored by Senators Olympia Snowe (R-Maine) and Carl Levin (D-Mich.), expands the Small Business Administration's (SBA) 7(a) and 504 loan and microloan programs which provide long-term financing that small firms could not receive through normal channels.
Western Massachusetts Enterprise Fund, Inc.'s, Executive Director Chris Sikes participated in the roundtable and spoke about the importance of the SBA's microloan and microloan technical assistance programs to Massachusetts firms.
"The microloan program has been the core of our microenterprise development program since its inception because it is the only program which marries technical assistance with lending. By linking technical assistance with the loan, a long-term partnership is established which helps move an enterprise from the start-up, early phase to a more stable, mature position," said Sikes, from Greenfield, Mass.
Newton, Mass., small business owner Joan Wasser Gish advocated for Kerry's proposal to create a pilot program to extend small business loans to non-profit child care providers.
"Early education and care supports the overall economy and non-profit providers play a very important role in low-income communities, educating children and supporting working parents and the businesses they work for. Senator Kerry's proposal could have a significant positive impact on parents, businesses and communities across Massachusetts," said Wasser Gish, who runs Policy Progress.
Specifically, the Small Business Lending Reauthorization and Improvements Act:
