The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.
“SMALL BUSINESS INTERMEDIARY LENDING PILOT PROGRAM ACT OF 2005” mentioning the U.S. Dept of Agriculture was published in the Extensions of Remarks section on pages E1088 on May 25, 2005.
The publication is reproduced in full below:
SMALL BUSINESS INTERMEDIARY LENDING PILOT PROGRAM ACT OF 2005
______
HON. BOBBY L. RUSH
of illinois
in the house of representatives
Wednesday, May 25, 2005
Mr. RUSH. Mr. Speaker, I rise today to introduce the ``Small Business Intermediary Lending Pilot Program Act of 2005'' (SBILPP). This bill would establish a pilot program to provide low interest loans to nonprofit, community-based lending intermediaries. The program would also provide midsize loans for small businesses.
Small businesses and startups continue to face barriers when accessing midsize loans between $35,000 and $200,000, with affordable terms and conditions. With all of the banking industry consolidation, the method by which banks make small business credit decisions has changed to the disadvantage of small or startup businesses. Nonprofit intermediary lenders, including community development corporations, are in a better position to provide financial support to small businesses.
These nonprofit intermediary lenders provide riskier, up front capital to small businesses, with more flexible terms and underwriting procedures. These lenders also offer technical assistance to reduce the transaction costs and risk exposure of banks. The effectiveness of these types of programs has been demonstrated by several Federal programs, including the Microloan Program under the Small Business Act, and the Intermediary Relending Program in the Department of Agriculture. There are more than 1,000 nonprofit intermediaries around the country that are addressing the needs of small businesses by providing financial and technical assistance, leveraging additional capital for borrowers, and creating employment opportunities for low income individuals through their lending and business development activities.
This bill would establish a midsize loan pilot program, providing loans averaging $150,000 to eligible intermediaries, particularly for startup, newly established, or growing small businesses. The bill would also assess the effectiveness of nonprofit intermediaries, and determine the feasibility of implementing a midsize loan program nationwide.
I hope my colleagues will join me to support this initiative.
____________________
