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

For Immediate Release                                                       CONTACT:  Alex Haurek; Duncan Neasham
May 22, 2009                                                                                                                 (202) 226-3636

Velázquez Works to Bring Relief to Local Businesses
New Lending, Contracting Opportunities, Entrepreneurial Training Cited

WASHINGTON, D.C. —As “National Small Business Week” wraps up and Congress leaves for the week-long Memorial Day District Work Period, Rep. Nydia M. Velázquez (D-NY), the Chairwoman of the House Small Business Committee, said that the 111th Congress has already made significant strides for the nation’s small businesses. Highlighting legislation the House passed on Wednesday to expand entrepreneurial development services, as well as the American Recovery and Reinvestment Act (ARRA), which was signed into law in February, Velázquez said that small businesses should soon see credit start flowing again, additional federal contracting opportunities, and improved support services at the Small Business Administration (SBA).

“Small businesses have led us out of previous recessions and, with the right support, they will again put our nation back on a path to prosperity,” said Velázquez. “While more still needs to be done, we’ve already taken steps to help small firms access capital and created billions of dollars in new contracting opportunities for them.”

On Wednesday, the House passed the “Job Creation through Entrepreneurship Act of 2009,” landmark legislation to update the Small Business Administration’s (SBA) entrepreneurial development (ED) programs for the first time in a decade. By providing existing businesses and prospective entrepreneurs with technical assistance and expert guidance, ED programs help small companies grow and create jobs. ED programs are credited with helping create 73,000 jobs, last year alone. The bill passed by the House this week helps dislocated workers become entrepreneurs and provides expert counseling for small businesses struggling to stay afloat.

“Studies show that small businesses that utilize entrepreneurial development programs are twice as likely to succeed,” Velázquez said. “In addition to the new initiatives, the legislation we passed on Wednesday builds on existing programs, improving access and modernizing them, so small firms get the aid they need.”

Velázquez also stressed the importance of the ARRA, saying the law will generate $21 billion in new lending and investment for small businesses and create $29.9 billion worth of infrastructure projects for small companies. By making loans less expensive and giving banks incentives to lend to small firms, the measures already appear to be improving the credit markets. The SBA reports that the volume of new SBA-backed loans has risen more than 20 percent since mid-March, with more than $1.3 billion in new loans approved.

“While it is early, we are starting to see signs of a thaw in the small business credit market,” said Velázquez. “This, coupled with the billions of dollars in new contracting opportunities and improved entrepreneurial development services, will lay the foundation for renewed small business growth.”

National Small Business Week is observed annually to honor entrepreneurs and recognize their contributions to the economy. A summary of Congress’ accomplishments for small businesses to date is available online by clicking here.

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