Paulsen Introduces Bill to Strengthen Small Business

FOR IMMEDIATE RELEASE: July 10, 2009

CONTACT: Luke Friedrich (952) 405-8510 / Andrew Foxwell (202) 225-2871

WASHINGTON, D.C. – Congressman Erik Paulsen (MN-03) today introduced legislation aimed at examining the impact of federal bailout funding on small businesses.  Specifically, Paulsen’s bill will require the Special Inspector General (SIG) to examine how small businesses are being affected by spending from the Troubled Asset Relief Program (TARP).  The legislation will help identify and address the challenges that smaller financial institutions, such as community banks, are facing in competing with larger institutions who have received the funding. 

 “When it comes to the bailout, all we ever seem to hear about is the concept of “too big to fail,” but I’ve heard time and again from community banks and small businesses that are being negatively affected by this spending,” Paulsen said.  “This common sense bill will examine the impact of bailout dollars on Minnesota’s small businesses community, so that we can increase their ability to maintain and create jobs.”

The House Financial Services Committee, which Paulsen serves on, is currently examining several areas of TARP spending, including what do with some bailout dollars being repaid to the government.  In addition to examining the impact of TARP dollars on small business, Paulsen is co-sponsoring legislation that requires any bailout dollars repaid to the government be used for deficit reduction rather than new government programs. 

Paulsen was the lead Republican sponsor of the House bill creating broad authority to oversee bailout spending.  For more information on Paulsen’s work in Congress, please visit www.paulsen.house.gov.

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