USHCC Commends White House Moves to Bolster Small Business Lending
Actions aimed at reinvigorating the flow of credit to small businesses across the country.
Washington, D.C. -
The United States Hispanic Chamber of Commerce (USHCC), the national advocate for Hispanic-owned businesses, commended President Obama and his economic team on their plans to help reenergize the flow of credit to small businesses across America. The USHCC’s President & CEO, Augustine Martinez, was among the business leaders attending the public announcement at the White House. In particular, the actions as first described in the Financial Stability Plan (FSP) last February, will result in direct purchases by the Treasury Department of securities backed by Small Business Administration (SBA) loans. These actions should ultimately help increase potential credit and reduce loan fees. “The United States Hispanic Chamber of Commerce is pleased that President Obama and his team have announced several actions to jumpstart lending to small businesses,” said David C. Lizárraga, USHCC Chairman of the Board. “This could not have come at a more critical time for our small business owners and entrepreneurs. For over a year, we have been calling on our elected officials to take substantive action that would break the choke hold that lack of credit has had on our small businesses. The actions laid out today should make both the SBA’s 7(a) and 504 Loan programs more palatable to lending institutions, and more accessible to our business owners,” he concluded. President Obama’s team has developed a multifaceted approach to expand credit to small businesses. This includes purchasing up to $15 billion in securities backed by loans from the SBA, temporarily raising guarantees up to 90 percent for 7(a) loans, temporarily eliminating SBA loan fees for both 7(a) and 504 Loans, and providing several tax incentives to small businesses and entrepreneurial enterprises to make it more affordable to do businesses and make necessary investments in their operations. “The USHCC believes these actions should help small businesses start to regain access to credit and make important business decisions that can ultimately help restart our economy,”Chairman Lizárraga added. “As the Obama team works through these and many other policies to help small businesses, the USHCC will continue to work with them and Members of Congress to provide insights into the concerns of Hispanic business owners as they relate to our ability to operate,” he concluded.
About the United States Hispanic Chamber of Commerce
Founded in 1979, the USHCC actively promotes the economic growth and development of Hispanic entrepreneurs and represents the interests of almost 3 million Hispanic-owned businesses in the United States that generate nearly $400 billion annually. It also serves as the umbrella organization for 200 local Hispanic chambers in the United States, Puerto Rico, Canada, Mexico, Bolivia and Uruguay.
