News From the
Committee on Small Business
Nydia M. Velázquez, Chairwoman

For Immediate Release
July 19, 2007   

CONTACT: Kate Gilman/Erin Donar,  (202) 225-4038

Committee Approves Two Bills Strengthening SBA’s Micro-lending Initiatives and International Trade Programs

WASHINGTON – The House Small Business Committee today voted unanimously to reauthorize funding for two key initiatives designed to ensure entrepreneurs are able to succeed both here at home and in the growing global marketplace. The committee approved The Microloan Amendments Modernization Act of 2007, which will provide more flexibility to borrowers and lenders in technical assistance programs and The SBA Trade Programs Act of 2007 that will help small businesses become more competitive in the international trade market.

“Small businesses are the driving force behind our economy, and yet many of them are struggling to succeed and expand into new markets,” said Chairwoman Nydia M. Velázquez. “Immediate action is needed to enable entrepreneurs to overcome barriers they face in growing their businesses in both the domestic and international arenas.”

Addressing these challenges, the committee approved legislation today that modifies existing SBA initiatives, strengthening efforts to provide micro-finance and international trade assistance. The Microloan Amendments Modernization Act of 2007 makes loans through SBA’s Microloan initiative even more accessible to start-up businesses.  It will help increase participation among borrowers and lenders, by creating more options for technical assistance. The proposal also provides increased alternatives in micro-lending (such as lines of credit) and enables small firms to leverage their payment records to establish credit histories.  The SBA Trade Programs Act of 2007 will address the particular pressures facing small businesses in overseas markets for their products. This is an area that has been elusive for many entrepreneurs and staying competitive in a global market presents many unique challenges. The bill will provide a comprehensive set of resources to help business owners by establishing small business-oriented trade policies, increasing export assistance, protecting firms against unfair practices and providing adjustment assistance.   These two measures will help small businesses both domestically and globally.

“These pieces of legislation will support small businesses with two major challenges: accessing adequate financing and identifying appropriate markets to allow their businesses to grow,” said Chairwoman Velázquez. “Small firms are enthusiastic about expanding their businesses and joining the global marketplace, but they need a little help. I am confident that these two bills will give business owners the assistance they have been seeking and allow their firms to grow and prosper.”

This legislation is part of the House Small Business Committee’s ongoing work to reauthorize the SBA and its programs.  To date, the committee has passed 12 measures aimed at revamping the agency’s programs, updating them and making them more effective for this nation’s small businesses.

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