Nydia M. Velazquez: “Mr. Chairman, my colleagues, we have spent much of this debate discussing ways to help the banks, but now it is time…”

“Mr. Chairman, my colleagues, we have spent much of this debate discussing ways to help the banks, but now it is time that we talk about helping small businesses directly. The Schrader amendment does this by providing entrepreneurs with incentives to expand their businesses. It does so by giving business owners maximum flexibility because they know best how to purchase equipment or to hire workers when they need to do so. If we have this tool now, during the early stages of the recovery, it will allow manufacturers to purchase the new machine tools they need, and it will allow retailers to hire a few more salesmen. As they have created two-thirds of the net new jobs over the past 10 years, it is absolutely critical to get small businesses off the sidelines. Unfortunately, the Federal Reserve Senior Loan Officer survey continues to report that loan demand among small firms has decreased. The most recent NFIB report also confirms this. Only 32 percent of small businesses borrowed last quarter, which is near the record low. When fewer small businesses take out loans, there is less employment and more abandoned storefronts. By giving firms access to a financial backstop, the Schrader amendment will give them the confidence to turn this around.”