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Small Business
Congresswoman Grace F. Napolitano recognizes that small business is the backbone of the economy in the 38th District and throughout the nation. She was a member of the House Small Business Committee for six years, and she has been a staunch advocate for the needs of local entrepreneurs. She is extremely concerned about the recent funding crisis in the Small Business Administration’s (SBA) 7(a) loan program and the President’s proposed budget cuts for the Small Business Administration (SBA) the lead federal agency working to promote the viability of smaller firms.
7(a) Loan Program
The SBA's 7(a) loan program has been in jeopardy for several years now. Small businesses rely on this loan program, and SBA simply cannot meet their needs with the meager funding it has received. In 2003, more than 150 7(a) loans, totaling almost $55 million, were given to small businesses in the 38th district. Approximately two-thirds of those loans were given to minority entrepreneurs. Unfortunately, this year’s loan needs are now in serious jeopardy.
Currently, the 7(a) program currently guarantees 75% to 90% of all loans. At a time when our nation is still struggling to create jobs and recover from a recession, she believes that the 7(a) program needs to be expanded and strengthened, not weakened and underfunded.
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