Political Quotes

“I rise in support of S. 141 to improve the calculation of the federal subsidy rate with respect to certain small business loans. Although, each year the Office of Management and Budget calculates the federal cost of guaranteeing small business loans administered by the Small Business Administration. Many analysts believed the current method of calculating those costs does not take into account historical data and recent statutory and regulatory changes that have improved default rates and program performance. Therefore, they contend that the current federal cost, expressed in the form of a subsidy rate, is over-estimated, which, in turn, limits the amount of loans that can be guaranteed. The bill S. 141 would authorize the Director of the Office of Management and Budget (OMB) to calculate the Federal cost for guaranteeing small business loans under the Small Business Act during FY 2003 and to use the most recently approved subsidy cost model and methodology that would take into account economic assumptions and historical data included in the FY 2003 budget. The bill is intended to provide a new cost calculation methodology, which is expected to reduce the subsidy rate from 1.76 percent to 1.04 percent, thereby expanding the size of the program from $4.9 billion to $8.2 billion. I urge my colleagues to support S. 141.”