Seth Moulton: “I thank Ms. Velazquez for yielding. Mr. Speaker, we often say that small businesses are the engine of economic growth.…”

“I thank Ms. Velazquez for yielding. Mr. Speaker, we often say that small businesses are the engine of economic growth. That is true; and if you look at the data, new businesses--those younger than 5 years old--created nearly all of our economy's new jobs in the past two decades. In order to create the conditions for job creation, the Federal Government must increase access to capital so new entrepreneurs with a good idea can take a risk and start a new business. The Small Business Administration's microloan program fills a critical gap in the capital markets, helping underserved businesses that are too small for the banking sector yet too big to finance with a credit card or loans from friends and family. The program has provided hundreds of millions of dollars in financing and technical assistance to small businesses and entrepreneurs, but the program is in need of reform. That is why I introduced H.R. 2670, the Microloan Modernization Act of 2015, which will make a number of targeted improvements to the program so more borrowers can benefit from access to capital. First, the bill increases the loan limit cap for intermediary lenders. Many successful intermediaries have hit the current $5 million cap and, as a result, deserving small businesses are denied capital through no fault of their own. Second, the bill extends the loan repayment period for loans greater than $10,000.…”