C Shaffstall

The Small Business Financing and Investment Act of 2009 has just passed the House of Representatives by a 389-to-32 majority vote. As a small-business owner, what exactly can this mean to your company?

This act amends the Small Business Act and the Small Business Investment Act of 1958. It either adds or revises specific provisions that can mean different things depending on what your business is, where your company is located, and whether or not you intend to borrow money.

It’s often difficult to find plain speak in the midst of bills before congress, but according to GOP.gov H.R. 3854 is a combination of eight bills that would extend some stimulus programs and allow SBA to increase loans, provide capital to low-income areas and renewable-energy industries, and make loan guarantees to small healthcare firms purchasing health-information technology.

The SBA, created in 1953, has a loan portfolio of about 220,000 loans worth over $50 billion. The SBA operates several financing programs that are intended to bridge the gap in the conventional markets that small businesses encounter in trying to secure access to capital.

In a blog posting at Reuters.com, Geri Westphal, the owner of Ciao Bella Day Spa, which she opened in September 2008 in Littleton, Colorado, is quoted as saying, “You can’t get past the monkey at the gate.” Westphal attempted to get SBA financing through a half dozen banks before she resolved to bootstrap her business with personal savings and home equity. “It has to be the banks that change and really become reasonable,” said Westphal, who added her spa was close to posting break-even results when she sought government financing. “What I’m asking for is a small amount of money.” This act is designed to remove barriers and make money more available to the small businesses that need it.

Other bills before congress would provide for additional help:

• H.R. 3614 (sponsored by Rep. Velázquez, Nydia M): additional temporary extension of programs under the Small Business Act and the Small Business Investment Act of 1958
• H.R. 1807 (sponsored by Rep. Thompson, Glenn): Educating Entrepreneurs through Today’s Technology Act
• H.R. 1803 (sponsored by Rep. Nye, Glenn C.): Veterans Business Center Act of 2009
• Amendments to H.R. 2965: Enhancing Small Business Research and Innovation Act of 2009
• H.R. 2965 Amendments (sponsored by Rep. Altmire, Jason)

According to the SBA web site, the U.S. Small Business Administration (SBA) was created in 1953 as an independent agency of the federal government to aid, counsel, assist, and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation. The SBA helps Americans start, build, and grow businesses. Through an extensive network of field offices and partnerships with public and private organizations, SBA delivers its services to people throughout the United States, Puerto Rico, the U. S. Virgin Islands and Guam.