June 16, 2010

Washington, DC – Today, U.S. Rep. Ed Perlmutter (CO-07) provided another brick in the foundation of rebuilding small businesses and helping Main Street recover from the recent economic earthquake.

Perlmutter, a member of the House Financial Services Committee, passed an amendment (Amendment 5) to the Small Business Jobs and Credit Act (H.R. 5297) providing more opportunities for small businesses to access credit so they can hire new workers, expand their businesses and contribute to the recovery and growth of our economy.

Perlmutter said, “Last year, our economy suffered an earthquake and the aftershocks are still being felt by small businesses and community banks. Access to credit is the cement small businesses need to build a solid foundation for job growth and economic recovery.  It takes effect immediately, is necessary, costs taxpayers nothing and will lead to job growth in the private sector.”

Click here to listen to Perlmutter’s comments about the bill.

In the 1980s, during the farm credit crisis, a similar provision was successfully utilized.  Perlmutter’s amendment allows small community banks to amortize or write-down losses over a six to 10 year period, which will free up capital in banks to loan to small businesses. 

“Small businesses and banks didn’t cause the economic downturn we are in now.  This measure will help small businesses and community banks weather the storm, regain their financial footing and get to the light at the end of the tunnel.  This worked in the 1980s for the agriculture industry, and it will work now.  The banking regulators at the top level tell banks to lend, while the examiners on the ground tell banks the opposite and require more capital.  This mixed message is confusing, and it must be clear small business lending is critical to a robust economic recovery,” noted Perlmutter.

This amendment is included in the Small Business Jobs and Credit Act being considered by the House today.  Colorado Rep. Mike Coffman (CO-06), Ron Klein (FL-22) and Steve Kagan (WI-08) also spoke in support of the amendment.

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