While on Air Force One, Kanjorski Provided President with Recommendations for Job Creation Initiatives

WASHINGTON - Today, Congressman Paul E. Kanjorski (PA-11) joined President Obama as the President kicked off his White House to Main Street jobs tour in Allentown.  Congressman Kanjorski flew on Air Force One with the President from Washington to Allentown.  While on Air Force One, Congressman Kanjorski personally gave the President a letter outlining recommendations for initiatives that will help create American jobs.  The letter detailed two of Congressman Kanjorski's bills.  H.R. 3380 would enable credit unions to make more small business loans and create as many as 108,000 jobs just in the first year after enactment.  H.R. 3007 would provide a needed revenue source for municipalities to aid with services for residents, infrastructure, and job creation.  Congressman Kanjorski also stated his support for providing additional federal funding for the Economic Development Administration which has a proven track record of using federal funding for local projects and creating jobs.

"I applaud President Obama's efforts to work to reduce unemployment and create American jobs," said Congressman Kanjorski.  "As Congress works on a new jobs creation package, there are specific actions that we can take to further these goals.  Today, while on Air Force One with the President, I handed him a letter detailing three initiatives that I think will help create needed jobs.  Additionally, on Wednesday, I sent a letter to Speaker Nancy Pelosi urging her to include a bill that I introduced in the jobs creation package, which would enable credit unions to make more small business loans and create thousands of jobs.  In order to effectively and efficiently create more jobs, we must take action now.  My proposals could help lead the way."

The text of Congressman Kanjorski's letter from December 4 which he personally delivered to President Obama on Air Force One follows:

Dear Mr. President:

The purpose of this letter is to share with you initiatives that I believe would help foster job creation and should be considered for inclusion in legislation to reduce unemployment in the United States.  Specifically, I request that you support increasing lending to small businesses through credit unions, provide revenue to local governments through a direct funding stream and increase funding for the Economic Development Administration.  I appreciate your attention to this matter.

Increasing Small Business Lending Through Credit Unions

Earlier this year, I introduced H.R. 3380, the Promoting Lending to America's Small Businesses Act of 2009.  As you may know, an arbitrary restriction imposed in 1998 capped credit unions' business lending at 12.25 percent of the credit union's total assets.  Prior to the enactment of this statute, credit unions had no cap on their member business lending activities.

In response, I introduced bipartisan legislation, H.R. 3380, to increase the credit union member business lending cap from 12.25 percent of a credit union's total assets to 25 percent.  In addition, H.R. 3380 would raise the de minimus level of a credit union business loan to $250,000 and would exclude loans made in underserved areas from the cap.  According to a recent analysis by the Credit Union National Association, these reforms have the potential to create as many as 108,000 jobs and make available as much as $10 billion in credit to small businesses in the first year after enactment.

Providing Fiscal Assistance to Local Governments

In June 2009, I introduced H.R. 3007, the Local Fiscal Assistance Act to provide local governments with an infusion of funds to assist them through these difficult economic times.  The program is similar to the successful General Revenue Sharing Program of the 1970s and 1980s.  H.R. 3007 authorizes $30 billion a year for the next three years in assistance to local governments.  Allocations of funds would take into account population, tax effort and income within each state and local area.  Funds would then be distributed to localities within that state.  State governments, however, would not receive payments under this program.  Providing funds directly to local governments would address pressing local needs and provide a source of revenue for undertaking job-creating infrastructure projects, maintaining public safety networks and offering social services. 

Increasing Funding for the Economic Development Administration

Finally, I support providing supplemental funding for the Economic Development Administration at least double the 2009 annual appropriation level of $273 million.  As you know, EDA provides investment to locally-developed and regional-based economic development projects in distressed areas characterized by high levels of unemployment and low per-capita income levels.  Because EDA funds are among the most flexible of any federal assistance program, I have long supported funding for this agency within the U.S. Department of Commerce, particularly EDA's Public Works and Economic Development Program. 

Many projects in my Congressional District have received funding through EDA's programs.  EDA reports that from fiscal year 2005 to fiscal year 2009, it has awarded over $5 million through its programs to projects in my Congressional District.  These federal funds have helped leverage nearly $150 million in private investment and created almost 2,000 jobs.   From my perspective, EDA's Programs have a proven track record of ensuring the federal government gets the most bang for its buck when investing in economic development projects and should receive additional funding. 

Again, thank you for your consideration of my views.  I look forward to continuing to work with you.

Sincerely,

Paul E. Kanjorski

Member of Congress

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