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

For Immediate Release                                                       CONTACT:  Alex Haurek; Duncan Neasham
February 26, 2009                                                                                                         (202) 226-3636

House Votes to Boost Funding for Important Small Business Programs

WASHINGTON, D.C. — The U.S. House of Representatives has approved legislation that will bolster funding for important small business services at the Small Business Administration (SBA).  Rep. Nydia M. Velázquez (D-NY), the Chairwoman of the House Committee on Small Business, said the funding, which was increased as part of Congress’ Omnibus Appropriations bill for Fiscal Year 2009, represents a significant investment in small businesses at a time when they most need help. 

“Small businesses will be key to putting our nation back on a path to prosperity,” said Velázquez.  “The funding in this bill means more fledgling firms will receive counseling to build successful business plans, more budding entrepreneurs will have access to microloans, and more Americans who want to start their own businesses will be able to do so.”

The legislation increases funding for valuable small business counseling services.  For instance, Small Business Development Centers (SBDCs) help individuals and small businesses through a national network of easily accessible branch locations.  The bill provides $110 million for SBDCs, up from the $97.2 million that Congress approved for the previous fiscal year. 

“Entrepreneurs that take advantage of Entrepreneurial Development Programs, like Small Business Development Centers, are twice as likely to succeed,” said Velázquez.  “The increased funding for SBDCs means more counseling and technical assistance for small businesses, a greater chance of success and, ultimately, the creation of more jobs.”

Velázquez said the legislation would also make credit more available to the nation’s smallest businesses by expanding funding for the SBA’s Microloan program.  The SBA’s Microloan program provides funding for small loans used by newly established or growing small businesses.  The legislation provides a 25% increase in funding for the program, which is expected to generate $25 million in loans for small enterprises. 

“Historically, after recessions, many Americans who have lost their jobs go into business for themselves,” said Velázquez.  “This increased funding for the SBA Microloan program will provide an opportunity for new entrepreneurs to get off the ground and get credit to self-employed individuals who are looking to expand.”

Velázquez also praised the bill for targeting assistance to veteran entrepreneurs.  The bill appropriates $1 million for a new Small Business Development Center entrepreneurship pilot program that provides counseling and assistance to veteran entrepreneurs.  The legislation also boosts funding for Veterans Business Outreach Centers (VBOCs), which assist veterans interested in self-employment.  VBOCs help veteran entrepreneurs prepare and implement business plans, offer counseling and mentoring and provide specialized programs tailored to the needs of service-disabled veteran entrepreneurs.

“When our nation’s heroes return from serving in Iraq and Afghanistan and reenter civilian life, many of them will want to start their own businesses,” Velázquez said.  “These programs give them the tools to do so.”

Other important funding increases in the bill include:

• $1 million for the Small Business Sustainability Initiative, a newly created program that is aimed at providing helping small businesses become energy efficient.  
• $5 million for the Program for Investment in Microentrepreneurs (PRIME), a $2 million increase over last year’s funding.   PRIME funds not-for-profit groups that offer training to low-income entrepreneurs.

“There is no more important time than now for our nation to reinvest in our small businesses,” Velázquez added.  “The funding increases in this measure are an important step in that direction.  I will continue working with my colleagues in Congress and the Administration to see that the SBA has the proper funds and oversight to support small business growth and development.”

The FY 2009 Omnibus Appropriations bill includes the appropriations bills that were not enacted in the 110th Congress, due largely to President Bush’s threat of a veto.  The legislation now heads to the Senate for its consideration.  Once the Senate approves the measure, it will be sent to the President to be signed into law.

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