Just two weeks ago we urged business interests to put up a fight to save the federal 7(a) loan program.
U.S. Rep. Jim Langevin deserves credit for doing just that.
The 7(a) loan program is in trouble. President Bush’s most recent budget proposal would effectively reduce the U.S. Small Business Administration’s program by about 50 percent. According to the National Association of Government Guaranteed Lenders, that "could leave an already weak small business sector crippled…."
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Rhode Island is in an especially precarious situation should the 7(a) loan program be reduced. A state of small businesses, we rely heavily on the SBA program. Last year, the SBA guaranteed $94 million in loans to 961 Rhode Island businesses.
Last week, Langevin, a member of the House Small Business Committee, testified at a committee hearing in favor of small business assistance programs, including the 7(a) program.
"The Administration continues to overestimate the credit subsidy cost of the 7(a) loan program, forcing both borrowers and lenders to pay unnecessarily high fees," he said.
Langevin also reminded his fellow committee members that small businesses account for approximately 98 percent of the jobs in the Ocean State.
"Many of these small businesses rely on the valuable loan assistance, technical training and grant programs offered by the SBA," he said.
Again, we urge business interests to continue following this issue closely and to keep fighting for the 7(a) loan program. Congressman Langevin is off to a good start.
