Washington, D.C.-   Small businesses in Southwest Washington could soon find it easier to access capital and survive the current tough economic times, thanks to the work of Congressman Brian Baird (D-WA-03).   Today, an overwhelming bipartisan majority passed the Small Business Financing and Investment Act (H.R. 3854) which included a key provision championed by Congressman Baird, and Congressman Rick Larsen (D-WA-02).  Because of this language, small businesses could have greater access to interest free loans through the Small Business Administration.

"Many small businesses in Southwest Washington that have been viable for years are struggling through these tough economic times," said Congressman Baird.   "Until this downturn passes, we need to find ways to give these business owners better access to the short term, interest free loan program created by the Recovery Act."

The American Recovery and Reinvestment Act created the America's Recovery Capital Loan Program, for short-term relief to small businesses facing immediate financial hardship.  It provides interest-free loans to small business, with repayment deferred for 12 months after the last loan disbursement.   Unfortunately, the program has not been widely utilized due to numerous bureaucratic hurdles.  In fact, only 46 of these loans have been approved in Washington State.   The provision passed today by Congressman Baird and Congressman Larsen will commission a study on the best ways to remove many of these hurdles, and allow easier access to the loans.

"This was a classic case of a good program being unnecessarily weighed down by red tape," said Congressman Baird. "I have long been a leader in searching ways to simplify programs to make sure they better serve the people they're intended to reach.  Passing these provisions will help make sure the America's Recovery Capital Loan Program will achieve its full potential, and help as many small businesses as possible in Southwest Washington."

Small businesses create as much as 80% of new jobs in America every year. However, the current economic crisis has frozen credit and made it difficult for small businesses to get the financing they need. By comprehensively updating the Small Business Administration's capital access programs for the first time in 10 years, the Small Business Financing and Investment Act is expected to support $44 billion in lending and investment for smaller firms.

 "Small businesses are the backbone of the American economy, and they will be the force that brings our economy back," said Congressman Baird.  "By helping small businesses in Southwest Washington grow, we are saving jobs, creating new ones, and laying the groundwork for future prosperity."

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