Congressman Applauds President’s Small Business Initiative and Proposes Further Legislation
Washington, DC — Congressman Steve Kagen, M.D. today restated his determination to assist small businesses in Northeast Wisconsin and throughout the nation obtain the credit they need to generate jobs and rebuild our economy. The Congressman was present at the White House today as the President revealed his plan to guarantee that small businesses have access to the credit they need to support the economic recovery.
“We need to offer small businesses on Main Street the same treatment the past administration gave their friends on Wall Street,” said Kagen. “I applaud the President’s efforts to unlock secondary credit markets for small businesses that provide nearly 80% of new jobs and generate 50% of our gross domestic product. Small businesses are the economic engines of America and they need our help.”
Kagen will soon file a piece of legislation which would give the Small Business Administration (SBA) the authority to pay for most, if not all, of the interest on loans to qualified small businesses for at least two years: the Small Business Stimulus Act. The net effect would be to make loans available at 0% interest. The suggested bill would also allow the use of previously appropriated funds in the Troubled Asset Recovery Program (TARP) or Term Asset-Backed Securities Loan Facility (TALF) to buy loans in secondary markets. This would free up credit markets for small businesses across the nation.
Kagen also backed the recently-enacted American Recovery and Reinvestment Act which increased funding to be put towards reducing fees for SBA loans. Credit is the lifeblood of America’s economy and its small businesses, so President Obama announced immediate action to ensure that the credit starts flowing to entrepreneurs and business owners again.
“I am working hard to help small businesses grow our economy,” said Kagen.
Kagen criticized the recent reports of AIG executives – who had been part of decisions that led to that company’s near-collapse – receiving some $165 million in taxpayer-funded bonuses. The Congressman said he welcomed the President’s determination to get that money back.
“Outrageous. That is the only word that comes to mind. We must catch all the crooks and punish them publicly” said Kagen. “It’s unpatriotic to ask the government for help and then turn around and give bonuses to people who were responsible for getting us into the current mess. We cannot allow them to get away with this.”
