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 Even
since early colonial life in America, small business has formed a
critical thread in the fabric of our nation’s economy. As a young
budding nation, our country depended on the local store owners, the
blacksmiths, the small farmers, and the full-time brick making and
carpentry artisans of early American landscape. Today, over 200 years
later, this thread has not unraveled. Since that time, small business
has remained a constant in our nation’s economy even in the midst of the
changing times we saw in the industrial revolution, World Wars I and II,
the technology boom, and today in the wake of a floundering Wall Street.
Fundamentally, the real engine of our economy is not located in New
York, or Washington, but collectively in the towns, cities, and main
streets across America, just as it has been for centuries.
That is why during the past month I
have said that any solution to our nation’s economy needs to address the
economic circumstances of our families and small businesses first.
According to the Small Business Administration (SBA), small businesses:
▪
Employ almost half of all
private sector employees;
▪
Pay nearly 45 percent of total
U.S. private payroll;
▪
Have generated 60 to 80 percent
of net new jobs annually over the last decade;
▪
Hire 40 percent of high tech
workers (such as scientists, engineers, and computer
workers);
▪
Are 52 percent home-based; and
▪
Made up 97.3 percent of all
identified exporters and produced 28.9 percent of the known
export value in FY 2006.
Our small business leaders provide new
ideas, employ a vast number of workers, and develop innovative products
and services. By investing in their businesses, the small firm owner
makes a major contribution to the local, regional, and national
economy. Moreover, small businesses make vital contributions to their
communities by supporting the local tax base, sponsoring youth sports
teams, and participating in community-based charities and school
fundraisers.
If the government wants to get our
economy back on track, we need to turn towards the centerpiece of our
nation’s economy. We need to start by ensuring capital flow to small
businesses, putting more money back in families’ budgets through tax
cuts so they can invest in small businesses, allowing small businesses
to band together to purchase and provide health insurance for their
employees, and addressing energy costs that are taking a toll on small
business owners. These long-term solutions, many of which have been
introduced in Congress and I have supported, touch the very heart of
Main Street America and will be the solutions that rebuild our economy.
On my Web site I’ve posted some
detailed plans to achieve this, and I hope you will take some time
to read them.
Nevertheless, times of economic
uncertainty can be scary for small businesses. Small businesses often
don’t have the resources larger corporations have that enable them to
quickly adjust to every trend and issue. Even seasoned business owners
may find themselves in uncharted territory as they wade through the
current economic situation. If you are a small business owner and find
yourself in a situation where you need help, the following online
resources may be helpful to you.
The Small Business Administration Web
site,
www.sba.gov, provides tools and resources for small businesses at
many levels. Small business owners will find information on loans
available through the
Loan Guaranty program, information on tax benefits, and a host of
resources related to the current economic situation. The site also
offers information on obtaining government contracts. As any small
business owner knows, the economic challenges that each business faces
can vary from state to state. As such, the SBA provides smaller district
offices to provide information based on your specific state or region.
To contact the Virginia district office, call (804) 771-2400, email
Richmond.va@sba.gov, or view the
events calendar to see a list of free workshops and opportunities
for small business development in your area.
The SCORE Association (Service Corps of
Retired Executives) is a resource partner of the SBA dedicated to
entrepreneur education and the formation, growth and success of small
businesses nationwide. SCORE mentors are volunteers and are available to
assist business owners with counseling and training on a number of
business issues, including
how to market in a weak economy,
how to trim fuel costs, and
how
to face the next economic cycle with confidence. Visiting the SCORE
Web site,
http://www.score.org/index.html, will help you to find a mentor near
you.
We have a lot of work to do to get our
economy back on track, but we will get there sooner if we place our
focus on creating long-term solutions that provide help to the small
businesses of main street America – the true engine of our economy.
A Guide to Foreclosure Prevention
 Today,
mortgage foreclosures and delinquencies are at their highest level in
more than 30 years. As we have seen in the last year, these issues
are causing serious strain on the U.S. economy, impacting not only those
who lose their homes, but the surrounding communities as well. It is
important that individuals know the different ways they can protect
themselves and their financial futures. The House of Representatives
Financial Services Committee has created the following “Step-by-Step
Guide to Foreclosure Prevention Resources” to provide help to homeowners
who may be facing foreclosure.
Talk to your Lender or
Loan Servicer of your Current Loan
Your loan servicer is
responsible for collecting your monthly loan payments and crediting your
account. Speak to your loan servicer about refinancing options,
including the federal programs detailed below, state finance
initiatives, and any other loan modifications that are appropriate for
your financial circumstances. If you require help in identifying the
company that handles your mortgage you can use the online resource of
MERS® Servicer ID or its phone-based MERS Servicer Identification
System at 1-888-679-6377.
Talk to a Legitimate
Housing Counselor
Housing counselors can help
you understand your mortgage options, negotiate with your lender and
avoid foreclosure assistance scams. If you have worked with a qualified
housing counselor, you should contact them again. If you need help in
locating qualified a HUD-approved housing counselor in your area, call
HUD's interactive voice response system at 1-800-569-4287. Also, free
telephone counseling is available 24/7 from the national HOPE hotline at
1-888-995-4673 or
www.hpfonline.org, which connects callers with counselors from
HUD–approved housing counseling agencies.
Contact State Foreclosure
Prevention Programs
Many states through their
Housing Finance Agencies have developed programs that offer affordable
financial options for troubled homeowners. To find the Housing Finance
Agency in your state, go to
www.ncsha.org. For those homeowners who suspect that they have
been a victim of fraud, misleading information, or other deceptive
practices, they should contact their state Attorney General’s office,
which investigates complaints and sues lenders and other mortgage
originators for alleged illegal behavior.
Contact the Federal
Government About Federal Foreclosure Assistance Programs
Two federal programs -- HOPE
for Homeowners and FHA Secure -- are designed to help homeowners
refinance mortgages and avoid foreclosure. HOPE for Homeowners is
available to owner occupants who are unable to pay their existing
mortgages without adjustments to their current loan and offers 30-year,
fixed-rate mortgages insured by HUD’s Federal Housing Administration
(FHA). Borrowers seeking help should contact their current lender, an
FHA-approved lender, or a housing counselor to apply or learn more about
their options. To locate an FHA-approved lender in your area, go to the
FHA website at
www.fha.gov and enter your city, state and zip code. You can also
call HUD's interactive voice response system at 1-800-569-4287 to get
the names of HUD approved counseling entities in your state.
FHA Secure gives qualified
borrowers who have been delinquent on their existing non-FHA adjustable
rate mortgages (ARMs), the ability to refinance into a fixed-rate,
FHA-insured mortgage. Borrowers seeking help should contact their
current lender, any other qualified FHA approved lender or a housing
counselor. To locate an FHA-approved lender in your area, go to the FHA
website at
www.fha.gov and enter your city, state and zip code. You can also
call HUD's interactive voice response system at 1-800-569-4287 to get
the names of HUD approved counseling entities in your state. |
