10.15.01

Cantwell Applauds Passage of Bill to Aid Small Businesses

WASHINGTON, DC - U.S. Senator Maria Cantwell (D-WA) today applauded passage of the American Small Business Emergency Relief and Recovery Act, emergency legislation that will strengthen and expand access to the Small Business Administration's (SBA) loans and management counseling to help small businesses adversely affected by the terrorist attacks on September 11. Cantwell, a cosponsor of the bill, is a member of the Senate Small Business Committee.

"We can't allow our nation's small businesses to be the next victims of terrorism," Cantwell said. "Many of America's 25 million small businesses have been hit particularly hard by economic fallout from the terrorist attacks on September 11. Many of them may not survive without federal assistance."

Cantwell, a former executive at a software company, said the purpose of the emergency legislation is to help small businesses adversely affected by terrorism get the help they need to meet their payments on existing debts, finance their businesses, maintain and create jobs, and provide stability for the U.S. economy. The legislation will help small businesses in three categories:

Small businesses directly affected by terrorism, because they are physically located in or near the buildings or areas attacked or that have been closed for security reasons. Small businesses not physically damaged or destroyed, or in the vicinity of such businesses, but directly or indirectly affected because they are a supplier, service provider or complementary industry to any affected industry, especially the financial, hospitality, travel and tour industries, or because they are dependent upon a closed or suspended business or sector. Small businesses in need of capital and investment financing, procurement assistance or management counseling in the economic aftermath of September 11th. In addition to provisions to mitigate bankruptcies, business closures and layoffs related to the terrorist attacks, Cantwell said the bill addresses the shrinking availability of credit and venture capital to small businesses through traditional lenders and investors, which has been exacerbated by the attacks. The bill includes changes to two of the SBA's main non-disaster lending programs, which is expected to encourage borrowing and lending for new and expanding small businesses that may otherwise be reluctant to start or expand their businesses in the post-September 11th economy. Cantwell said the bill also includes provisions to aid federal contractors, who are facing increased costs due to tighter security at federal facilities where they have existing contracts.

"Small businesses have much tighter operating margins than larger businesses, so they suffer disproportionately when the economy falters temporarily," Cantwell said. "Small businesses are the cornerstone of the U.S. economy, employing more than half of all working Americans, so ensuring their vitality is a national priority."