Jeff Flake: “Last week, Mr. Speaker, I introduced legislation to enhance funding opportunities to America's small businesses. H.R.…”

“Last week, Mr. Speaker, I introduced legislation to enhance funding opportunities to America's small businesses. H.R. 1258, the Small Business Capital Access Act of 1995, is designed to raise the lending cap from $500,000 to $750,000 for the Small Business Administration's [SBA] 7(a) Loan Program. H.R. 1258, with significant support from lending institutions, accomplishes the goal of raising the lending limits of the program without further Federal expenditure. Mr. Speaker, raising the lending limits of the 7(a) Program, the Federal Government is demonstrating its commitment to fostering small business growth by enabling them to more easily overcome startup impediments. These impediments are often a result of undercapitalization. The $250,000 increase is accomplished without greater financial exposure to the taxpayer. This is made possible by lowering the Federal subsidy to lenders who participate in the SBA program and reprogramming those funds to guarantee a significant portion of those higher-capped loans. The SBA currently extends a 2.74- percent subsidy for 7(a) loans in fiscal year 1995. My proposal lowers the subsidy to 1.65-percent, thereby allowing more funds to actually guarantee 7(a) loans. Mr. Speaker, I urge all of my colleagues to please join with me in supporting H.R. 1258 so we can rebuild America through the small business sector.”