John Kerry (D-MA) has be a long standing supporter of small businesses and the Small Business Administration programs. He recognizes how vital small businesses are to our nation’s economy. While others in the US government are focusing their energies on helping keep the big banks and big businesses solvent, John Kerry is looking out for the little guy…..again.
Small businesses face many of the same challenges in today’s market as the big businesses do, yet the US government has done little to help out small businesses in this shrinking economy.
Legislation was recently introduced by Senator Kerry. The Small Business Lending Stimulus Act stands to temporarily reduce fees on government backed loans given to small businesses. Reducing the fees would in turn increase lending and help stimulate the economy. If the Bill were to pass, it would provide nearly $200 million so that rates can be cut for lender fees and borrower fees in the SBA’s 7(a) loan program and the 504 loan program. There would also be $12 for the microloan program.
“The credit crunch has gotten even worse,” Kerry said. “Over half of our banks have tightened their lending standards, making it harder for small businesses to expand their payrolls and invest in new equipment.”
The bill is in the first step in the legislative process. The bill will need to be deliberated, investigated and revised before it will go to general debate. Most bills do not make it out of the Senate Sub-committee. If it does make it out, it will likely be attached to another bill before it has a chance to be signed. Welcome to the American legislative process!
Hopefully, there will not be any hold up and relief will come soon to companies that need help.
