Congressman Mike Simpson voted in favor of H.R. 1332, the Small Business Lending Improvement Act today. The bill allows the Small Business Administration to continue the 7(a) loan program without the use of appropriations.

"Small Businesses employ half of all private sector employees, and pay more than 45 percent of the United States payroll, in a sense they are the backbone of our economy," said Simpson. "I believe we must make it easier for people to obtain loans to start a new business and that is what the 7(a) loan program does."

H.R. 1332 also reestablishes the SBA-Low-DOC loan program, but limits that to rural areas. There is a provision that requires the SBA to work with low-volume rural lenders to increase their utilization of this loan program. This will focus economic development to areas that need it most.

Medical care providers who serve low income areas will also benefit from 7(a) loans with a 90% guarantee.

"I’m pleased this bill welcomes Armed Servicemen and Women who are leaving the military to take advantage of the 7(a) loan program," said Simpson. "Recent Veterans will receive a 90% guarantee rate without regard to loan size and lender fees will be eliminated."

This bill also would make some changes in Title II in order to improve the Certified Development Company Loan Program and enable Certified Development Companies (CDC) greater opportunities to provide economic development activities to small businesses.

One of the most important fiscal responsibility tools in H.R. 1332 is the requirement that CDC’s liquidate their own loans. This improves the return that the government receives on foreclosed properties.

For more information about the 7(a) loan program or other small business questions visit the Small Business Administration’s website at www.sba.gov.