Political Quotes

“I rise in support of H.R. 5763, the Main Street Parity Act. One of the key functions of the SBA is to ensure that small businesses in communities across the country have access to the capital they need to grow and scale their operations. The SBA has long served this need through its loan guarantee program, including the 504/CDC program. The 504/CDC program supports small businesses in accessing capital for the development of major fixed assets like land, buildings, equipment, and machinery. As part of the program, loans are guaranteed for so-called special use properties like amusement parks, car washes, bowling alleys, and gas stations. When the special use designation was created in 1996, Congress required businesses developing these properties to pay a special purpose penalty. The penalty requires these businesses to provide at least 15 to 20 percent equity instead of the minimum 10 percent for standard 504/CDC loans. While the additional equity requirement served an important safeguard for the program when first enacted, we have seen over time that the extra risk is not as great as anticipated.”