FOR IMMEDIATE RELEASE

Thursday, October 29, 2009

CONTACT: MARA LEE

(202) 225-7163                                                

WASHINGTON, DC – Today, Congresswoman Doris O. Matsui (D – Sacramento) joined her colleagues in the House of Representatives in voting to create new jobs and stimulate the economy both in California and across the country by providing small businesses with access to the loans and investment dollars they need to expand and grow their operations.  As a result of the recent economic crisis, credit was virtually frozen which made it extremely difficult for local businesses to get the financing they need.  The Small Business Financing and Investment Act will help Sacramento business owners by opening tight credit markets that have shut out small business owners, and in turn creating new jobs for local men and women.

“We are all aware of the importance of small businesses in our neighborhoods and communities,” stated Matsui.  “While we rely on them to produce goods and services, we also depend on them to create and sustain jobs.  Small businesses are the engine of economic growth and innovation.  Nationally they represent more than 90 percent of all business in our country and have generated 70 percent of all new jobs over the past decade. In my home district of Sacramento, small businesses are an integral part of our economy.  In fact, most Sacramentans obtain their first job through a small business.”

The legislation will increase loan sizes to better meet businesses’ needs. It also includes incentives to encourage local banks to lend to small businesses and reduces bureaucratic red tape, making it easier for entrepreneurs to secure credit. The bill creates a new public/private partnership to expand investments in small business startups – an important source of job creation.  It also extends critical Recovery Act provisions eliminating fees on Small Business Administration loans and guaranteeing up to 90% of 7(a) loans. To foster a diverse mix of businesses, it takes steps to promote veteran-owned, women-owned and rural small businesses. Finally, it would create a new program to help small health practitioners adopt Health Information Technology, while increasing investment in small companies that are researching alternative and renewable energy solutions.

“The federal government, in partnership with the private sector, took demonstrative action today by strengthening our small businesses,” said Congresswoman Matsui.  “This bill will support $44 billion in lending and investment for smaller firm across the country, and allow small business owners in our community to provide new jobs.  With this legislation, we are helping small firms find affordable sources of capital, one of the biggest challenges entrepreneurs face in the current economy.”

Today’s vote comes at the heels of recent actions taken by Congresswoman Matsui to ensure that small engineering firms in Sacramento and throughout the country are able to flourish in today’s market.  Matsui, inspired by local business owners she encountered earlier this year during her two Small Business Workshops, co-authored a letter with Small Business Committee Chairwoman Nydia Velazquez to SBA Administrator Karen Mills urging the SBA to move quickly to consider changing the size standard applied to small engineering firms.  The letter can be found here: sba_size_standard_letter