RSC Members in the Media
Rep. Royce Blog Post: A Key Bill for Small Business Growth, Job Creation
Rep. Ed Royce (CA-40)
Under a Republican majority, the focus of the 112th Congress has been jobs, and rightly so, the percentage of working age adults participating in the work force has, since 2009, slid to a new 30-year low of 63.8%.
I'm proud of the legislative accomplishments, 27 to be exact, we mustered through the House with my support - each tackling these hard to swallow unemployment numbers. But, when one chamber produces 27 job related bills and, like a bad series of sequels, those bills are stymied in the other chamber, the efforts become fruitless.
Last I checked, the House and the Senate serve the same constituency. Reviving America's economy is a bi-cameral endeavor.
To that effect, I have authored legislation that's gaining heavy steam on both sides of the Capitol. It's called the Small Business Lending Enhancement Act and from the title you should be able to deduce the premise.
America's small businesses are the engine that will drive our economic growth. Without fuel (i.e. business capital) that engine doesn’t produce.
My bill provides small businesses access to credit they desperately seek by safely raising the member business lending cap set on credit unions. Many of our country's local businesses turn to local financial institutions, which are often times credit unions. Nothing beats the peace of mind coming from the familiarity through proximity.
A 'ma and pa' flower shop looking to expand into e-commerce - creating possible employment for delivery drivers and packers - would turn to their neighborhood institution first before anywhere else.
Why not give these credit unions, so heavily relied on by local small businesses, the ability to safely supply the demand for credit?
Credit unions already have the required expertise, they have only been hampered by the low cap limit of 12.25%. Raising the cap to 27.5% would provide additional capital that small businesses need to stay afloat, remain competitive, and ramp up hiring.
In order to qualify for the revised higher cap, my legislation spells out detailed eligibility guidelines - mitigating any possible scenarios where safety and soundness could be comprised. Moreover, unlike a majority of the Administration’s jobs initiatives, not one dime of federal spending would be required.
Reports indicate the Senate Majority leader has promised a vote on the Senate companion bill of my legislation. A promise in this city must be taken with a grain of salt, but nonetheless it's still a reassuring step. On the House side, we have over 120 bipartisan co-sponsors, with more coming onboard each day.
The pieces are in place, on both sides of the Capitol, to help America's small businesses and provide a much needed boost to the job market.
We just have to avoid the status quo and see both pieces of legislation through to the end.