```

[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H. Con. Res. 85 Introduced in House (IH)]

105th CONGRESS
  1st Session
H. CON. RES. 85

Expressing the sense of Congress that the Small Business Administration 
   should appoint a commission to examine the credit needs of small 
                           business concerns.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 21, 1997

 Mr. LaFalce submitted the following concurrent resolution; which was 
              referred to the Committee on Small Business

_______________________________________________________________________

                         CONCURRENT RESOLUTION

 
Expressing the sense of Congress that the Small Business Administration 
   should appoint a commission to examine the credit needs of small 
                           business concerns.

Whereas small business concerns are a vital part of the economy and provide most 
        of the new jobs, new products, and new services created in the United 
        States;
Whereas adequate access to capital is a critical component of small business 
        formation, expansion, and success;
Whereas many small business concerns are unable to secure access to credit 
        without some type of Federal assistance;
Whereas access to capital is a particularly acute problem for minority-owned 
        businesses, women-owned businesses, small businesses in economically 
        distressed areas, and for those individuals without experience in owning 
        and operating a small business concern;
Whereas the primary credit assistance program for general purpose small business 
        financing is the 7(a) loan guarantee program of the Small Business 
        Administration (SBA);
Whereas the 7(a) loan program is now operating at a subsidy rate of 2.5 percent 
        as compared to twice that amount five years ago, primarily due to 
        quality improvement, reduced administrative costs, and the imposition of 
        higher user fees;
Whereas despite these improvements in the 7(a) program, demand exceeds the 
        annual program level permitted by the amount of Federal dollars 
        appropriated to support the program, thereby necessitating 
        administrative action to eliminate otherwise eligible loan applicants 
        twice in the past three years, including as recently as May 5, 1997;
Whereas a major source of credit assistance for plant and equipment financing by 
        small businesses is the certified development company or 504 development 
        company guarantee program of the Small Business Administration;
Whereas the 504 program is now operating at a subsidy rate of zero as compared 
        to 0.5 percent five years ago, primarily due to quality improvement, 
        reduced administrative costs, and the imposition of higher user fees;
Whereas the 504 program will cease operations at the end of this fiscal year 
        unless legislation is enacted to extend user fee charges; and
Whereas the appropriation of additional Federal monies to expand the 7(a) loan 
        program or mitigate the fees now imposed upon participants in the 504 
        program is very difficult: Now, therefore, be it
    Resolved by the House of Representatives (the Senate concurring), 
That it is the sense of the Congress--
            (1) the Administrator of the Small Business Administration 
        should appoint a blue ribbon commission to examine the small 
        business need for credit and the ability of the Federal 
        Government to assist in meeting that need, both during the 
        current fiscal year and during future fiscal years;
            (2) the commission should include individuals with 
        expertise in the delivery of financial assistance to small 
        businesses, and their associations, such as the National 
        Association of Government Guaranteed Lenders, the Independent 
        Bankers Association of America, the American Bankers 
        Association, the National Association of Development Companies, 
        and small businesses which customarily use such programs, and 
        associations which represent them or provide other assistance 
        to them, such as the National Federation of Independent 
        Business, National Small Business United, the Chamber of 
        Commerce of the United States, and the Association of Small 
        Business Development Centers;
            (3) the commission should also include representatives of 
        the Small Business Administration, but the commission should 
        not be deemed to be a Federal entity and thus should not be 
        subject to the customary restrictions imposed upon Federal 
        entities, including the conduct of meetings or the need for 
        clearance or approval by the administration;
            (4) the commission should evaluate the disparate credit 
        needs of different types of small business and their locale, 
        and should examine the broadest possible range of possible 
        solutions, and provide conclusions and recommendations thereon, 
        such as, but not limited to, (A) changes in the existing 7(a) 
        and 504 programs such as additional user fees, dollar loan 
        limitations per borrower, dollar loan limitations per 
        participating lender, limitations on the use of loan proceeds, 
        and changes in borrower qualification, (B) establishment of new 
        programs such as a government-sponsored enterprise; and
            (5) the commission should provide a written report within 
        thirty days evaluating short term solutions and within six 
        months evaluating longer range solutions.
                                 <all>
```