Hearing on the Small Businesss Administration's Fiscal Year 1994 Budget
Excerpt from Hearing on the Small Businesss Administration's Fiscal Year 1994 Budget: Hearing Before the Committee on Small Business, United States Senate, One Hundred Third Congress, First Session July 22, 1993 U.S. Senate, Committee on Small Business, Washington, DC. The Committee met, pursuant to notice, at 2:30 p.m., in room SR-428A, Russell Senate Office Building, Hon. Dale Bumpers (Chairman of the Committee), presiding. Opening Statement Of Hon. Dale Bumpers, A U.S. Senator From The State Of Arkansas The Chairman. The Committee meets today to hear testimony on the administrations budget proposal for the SBA and, perhaps more importantly, to hear the views of our new administrator on several other options which I propose to reduce the cost of SBA's largest loan program, the section 7(a) loan program. Yesterday, I introduced S. 1274, the Small Business Credit Reform Act of 1993. While I realize that Administrator Bowles has not had the opportunity to review the bill in detail, it contains several proposals similar or related to those in the administrations budget and is the product of extensive discussions between the committee staff and SBA staff. Initially, I believe that the administrations budget proposal, which calls for a reduction in the 7(a) subsidy rate from 4.92 to 2.37 percent, was overly ambitious. However, my bill reduces the cost of the program even further than the Presidents budget to 2.21 percent, while providing over $500 million more in program level funding than the administration budget. The bill just introduced will allow for slightly over $7 billion in 7(a) loans in 1994, even under the lower appropriations figure which the Senate Appropriations Committee is considering. As everybody in the room knows, the SBA 7(a) lending program has been under enormous pressure for more than 2 years. There are thousands of business owners who had never considered going to SBA for help before and have been so referred by their bankers. It was only after great effort that Congress was able to approve my amendment to the recently enacted supplemental appropriations bill, which puts the program back in operation. In the future we cannot depend on emergency supplemental. This program and those who need it cannot stand 2-month shutdowns. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.