U.S. Rep. Kathy Castor today urged her colleagues to help improve small businesses’ access to capital programs of the Small Business Administration (“SBA”) by passing H.R. 1332, the Small Business Lending Improvements Act of 2007. 

    “I am proud to support this bill today that will help all small businesses, and especially socially and economically disadvantaged small business owners in my district. This bill also includes provisions for our veterans, so both our returning and existing veterans will have improved access to capital,” said Castor. “I am pleased to be able to stand up for economic equality and support the hard-working small business owners in my district who provide 80 percent of the jobs in the Tampa Bay area.” 

    The 7(a) program is the SBA’s largest and most important loan financing program. It aims to make capital more available for small businesses by providing loan guarantees on financing for general business needs. The 504 Certified Development Company (CDC) program provides long-term, fixed rate loans to assist small businesses in acquiring major assets like real estate and large machinery. CDC’s are local non-profit corporations that work with private-sector lenders and the SBA to promote economic development in their communities. 

    The bill authorizes the SBA to use appropriated funds to reduce borrower and lender costs; establishes a rural lending outreach program; makes permanent the Community Express Program, which provides greater access to capital for socially and economically disadvantaged small business owners; provides increased capital for veteran-owned small businesses; establishes a Small Bank Outreach division to help community banks participate in the 7(a) loan program; establishes new criteria that a company must meet before being designated as a CDC under the 504 program; and streamlines the process for liquidating defaulted 504 program loans.