April 6, 2004 CONGRESSIONAL RECORD — SENATE S3785 Nation’s most critical priorities, the graphic location, disability or sexual this coming Monday. I will also get a need to address health disparities. orientation. chance to thank some of the members The first NIH Working Group on Again, I commend the American Pub- of Operation Enduring Love personally. Health Disparities defined health and lic Health Association for focusing the However, I wanted to take this oppor- health care disparities as ‘‘differences Nation’s attention on this important tunity to tell this inspiring story here in the incidence, prevalence, mortality, issue and for serving to increase the on the Senate floor, and record for pos- and burden of diseases and other ad- dialogue to rid the country of these in- terity the names of those businesses verse health conditions that exist equities. I hope my colleagues offer and performers who have participated. among specific population groups in their support to this important effort They are: the United States.’’ I take a moment to as well. L’Eglise, Inc. of Abbeville, Let’s Talk Din- highlight just a few of these dif- f ner Personal Chef Service of Lafayette, Crys- ferences. tal Weddings of Lafayette, Occasions Cake Statistics from the Department of OPERATION ENDURING LOVE Boutique of New Iberia, Sugar Art Wedding Health and Human Services Report en- Ms. LANDRIEU. Mr. President, we Cake, American Legion Post 69 988–0799 of titled ‘‘National Health Care Dispari- all know that the war in Iraq is not Lafayette, Viet Nam Veterans of America, ties’’ bear out that minorities are less without its controversies or detractors. Acadiana Chapter No. 141 of Fontenot, Mary Ellen’s Tux Shop of Lafayette, Antoinette’s likely to be given appropriate cardiac But it is also important to note that Bridals & Formals of Lafayette, Chef Bobby medications or to undergo bypass sur- the spirit of the American people is & Dot’s Le Bon Manger Catering of Kaplan, gery, and are less likely to receive kid- transcendent. Whether you supported Sugar Art, A La Carte of Lafayette, Tsunami ney dialysis or transplants. The same the war in Iraq, as I did, or whether of Lafayette, Schilling Distributing Co Inc. study has shown that minorities are you opposed it, the people of this Na- of Lafayette, Glazer’s Companies of Lafay- less likely to receive the most sophisti- tion are very conscious of the sacrifice ette, Quality Brands Inc. of Lafayette, Inte- cated treatments for HIV infection, that our military men and women are rior Plant Services of New Iberia, Paul’s which could forestall the onset of making for us all are grateful. I rise Jewelry of Lafayette, Spedale Spedale’s of Lafayette, Beyond Flowers of Lafayette. AIDS. Our minority communities are today to give one small example of the Cajun Cottage Gifts of Erath, Flowerland instead more likely to receive less de- American people’s spirit from Lafay- of Lafayette, The Gardenaire at River Ranch sirable, non state-of-the-art proce- ette, LA. of Lafayette, Steve’s Flowers of Lafayette, dures, such as lower limb amputations The soldiers of the 256th Army Na- Floral Design Classes of ULL of Lafayette, for diabetes and other conditions. tional Guard Infantry Brigade were re- Flower’s Etc. of Lafayette, Sam’s Club—Flo- These disparities also put our chil- cently put on alert and notified that ral Dept. of Lafayette, Louisiana Wholesale dren at significant risk. In my own they could be heading to Iraq soon. As Florists, Aveda Institute of Lafayette, JM State of Maryland, the Infant Mor- for any Guard unit, such deployments French Skin Care Line of Rayne, Studio One 2 One of Lafayette, Royal Day Spa & Salon tality rate for African Americans is mean a tremendous disruption in the of Lafayette, The Client Salon & Day Spa of two times higher than for Caucasian lives of the citizen soldiers who make Abbeville, Creative Memories Photography, Americans. up this brigade. They miss work, they Robin May Photography of Lafayette, Ken And these disparities do not only miss graduations, they miss birthdays, Romero Photographer, Shane Falgout, Pho- occur along racial lines. Healthy Peo- they miss reunions, and sadly, for tographer, Dominick Cross Photography, ple 2010 and the National Health Care some, they miss weddings. Fast Forward Multi-Media of Lafayette, Re- Disparities Report show that those who When the announcement went out gent Broadcasting of Lafayette. live in our more rural communities that the 256th could be deploying, Spec. Dr. Paul Baker, Beth Fontenot, Mike Vidallier, Lynn Broussard and Company, face similar inequitable treatment. Jeremy Meyers and his fiancee, Amy Kurt Boudreaux, Tommy Benoit String Rural community residents have less Glorioso, decided that they needed to Quartet, Limousines Limited of Lafayette, contact and fewer visits with physi- move up their wedding date. But as ev- Diamond Limousine Inc. of Lafayette, Gabri- cians, even though these residents tend eryone knows, weddings are expensive, el’s Jewelers, WHC, Inc., Shady Acres of to have a heightened need for health and food, flowers, and venues have to Abbeville, Crystal Cottage of Lafayette, care. Indeed, injury rates in rural com- be reserved and paid for months in ad- Armentor Jewelers of Abbeville, Jean’s Brid- munities are 40 percent higher than in vance. Changes to wedding dates can al Accessories of Patterson, Jolie Mariee urban areas. mean thousands of dollars in additional ‘‘Weddings By Anne,’’ Best Western Hotel Acadiana of Lafayette, Right Angle of Lafay- Women are 20 times more likely than costs. ette, Special T Ice Company of Abbeville, men to die from a heart attack. Statis- But thanks to the organization and and Pictage, Inc. of Torrance, CA. tics from the Agency for Health Care drive of Merilyn Crain, the owner of f Research and Quality reflect that L’Eglise in Vermilion Parish, and the women receive less aggressive treat- patriotism and dedication of businesses ADDITIONAL STATEMENTS ment for heart related ailments than throughout the Lafayette region, seven men, and are less likely to receive life couples will enjoy their dream wed- (At the request of Mr. DASCHLE, the saving drugs such as lidocaine, beta- dings—earlier than planned—and for following statement was ordered to be blockers and aspirin for heart attacks. free. printed in the RECORD.) Persons with disabilities face signifi- This act of generosity is the perfect cant disparities in the care they are af- symbol of the deep appreciation and TEMPORARY EXTENSION OF PRO- forded as do the indigent; the list goes love that all Americans feel for their GRAMS UNDER THE SMALL on and on. These are just a few exam- soldiers, sailors, airmen, and marines. BUSINESS ACT AND THE SMALL ples of how this inequity affects our The people of the Lafeyette region, and BUSINESS INVESTMENT ACT population. all of Louisiana should be proud of the ∑ Mr. KERRY. Mr. President, I want to The State of Maryland has engaged example they have set in rallying make a statement about a small busi- in a number of statewide and local ini- around the men and women of the ness bill that the Senate passed last tiatives to address health care dispari- 256th. As the Bible teaches us, ‘‘No week. I am referring to H.R. 4062, ties in our communities. At the Fed- greater love hath any man than this, which, among other things, provides a eral level, I have cosponsored S. 1833, that he should lay his life down for an- temporary solution to the administra- the Healthcare Equality and Account- other.’’ It is therefore appropriate that tion’s self-created funding crisis for the ability Act, which seeks to eliminate we should repay the debt we owe our SBA’s largest small-business lending racial and ethnic health disparities in military, by assisting them with cere- program, commonly referred to as the health care. I hope we can use the mo- monies that celebrate the love between 7(a) Loan program. In many ways, the mentum created by this week and re- two people. bill is similar to legislation I intro- double our efforts to ensure com- Mr. President, I congratulate the duced four weeks ago, S. 2186. For ex- prehensive quality health care for all businesses and individuals whose gen- ample, it adopts my provision to keep of America’s citizen’s regardless of erosity made these efforts possible. I the 504 program operating through the their race, ethnicity, socioeconomic will have the privilege of meeting the rest of this fiscal year instead of sub- status, gender, education level, geo- members of the 256th and their families jecting the 504 borrowers and lenders to

VerDate Mar 15 2010 21:42 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00051 Fmt 4637 Sfmt 0634 E:\2004SENATE\S06AP4.REC S06AP4 mmaher on DSKCGSP4G1 with SOCIALSECURITY S3786 CONGRESSIONAL RECORD — SENATE April 6, 2004 another series of disruptive temporary The administration contends that term Band-Aid. The ICBA continues to extensions. Similar to my bill, it also the pilot expansion would only be vol- oppose the SBA’s efforts to squeeze the lifts the $750,000 cap on loans, lifts the untary and therefore harmless if not 7(a) program out of existence and hopes restriction on combination or piggy- used. While SBAExpress has worked a genuine good faith resolution can be back loans, gets loans to those small well for relatively small loans, those part of the FY 2005 budget.’’ businesses denied 7(a) loans since the averaging around $150,000, lenders have The American Bankers Association program shutdown in January, and ex- testified before our Committee that as quoted in the ‘‘American Banker’’ tends the operation of the SBA overall, SBA Express is not workable for all on April 1, 2004: ‘‘The need to avoid an including the Small Disadvantaged sizes of loans and that the volume of even lower loan-size cap is why the Business Program and the Surety Bond SBAExpress loans is not likely to in- ABA supported the compromise, de- program. crease. In fact, the smallest SBA lend- spite having serious reservations about In general, H.R. 4062 is a step in the ers, community banks, have testified the expansion of the SBAExpress and right direction and I commend Con- that to mandate SBAExpress would the additional fees on lenders. ‘We are gressman MANZULLO and Congress- drive virtually all community banks not totally pleased with it, but we’re woman VELA´ ZQUEZ for their work. I do, from the program. Yet the administra- not going to write a letter opposing it’, however, have some concerns about the tion argues this voluntary authority is said Mr. [James] Ballentine [Director bill, concerns shared by many in the necessary because, when combined of Community Development]. ‘We be- small business community, and I regret with other program changes, it would lieve the lenders bent over backwards that the Senate Republicans blocked a reduce the subsidy rate, thereby to restart this program, and we’ve seen bi-partisan Snowe-Kerry amendment to stretching the 7(a) loan funding, get- very little movement on the part of the address those concerns. ting the program closer to their latest Agency.’’’ For example, H.R. 4062 did not ad- program volume projections. Mr. President, we are all glad that dress the pressing need to correct the This can only be true, however, if the the program is back in business for the outdated funding formula for the SBA’s volume of SBAExpress loans increase. rest of the year, particularly for the Women’s Business Centers program. To date, the administration has not small businesses that have been hung The law needed to be changed before produced any documentation sup- out to dry since the January shutdown the Agency awards this year’s grants porting that contention, and the small of the program. The delays imposed on because more than 50 Centers around business lenders fear that the adminis- the FY2004 fix for the 7(a) loan program the country are at risk of losing their tration will circumvent the require- were unnecessary. There were several opportunities—bills or amendments— matching federal money. I had been ad- ment that this be strictly voluntary by since March 10th to mitigate the fund- vocating for this change since I intro- showing preferential treatment to ing shortfall or all together fix it, but duced S. 2186 on March 9, and the lenders who use the SBAExpress pro- they’ve been blocked or stalled. Snowe-Kerry amendment included my gram. They believe this will occur in Mr. President, waiting has a price. provision. Unfortunately, one or two order to steer loans away from the reg- Not only to the qualified small busi- Senate Republicans objected to the ular program, which has a higher guar- nesses waiting for needed loans and for provision and blocked its passage. antee of 75 percent to 85 percent. Con- those who had been promised loans in ´ As for the 7(a) Loan Program, I am gresswoman VELAZQUEZ held strong to January only to have the administra- concerned about the extent of the fee including very good provisions aimed tion abruptly impose a crippling loan increases, the lack of data justifying at protecting the loan program from cap, but also to the taxpayer. If either the increases, the rapid expansion of such tinkering, and she is to be com- of the changes Senator SNOWE and I the SBAExpress pilot program, and the mended for her effective advocacy. Un- had proposed in our bills, S. 2186 and S. precedent that these changes will have fortunately, even with these safe- 2193, had been enacted as part of H.R. on developing a workable approach to guards, I believe it was premature to 3195 in mid-March, we could have saved next year’s 7(a) funding problem cre- enact the administration’s SBAExpress more than $100,000 a day, leveraging at ated by the President’s request for zero proposal until better data could be ob- least another $150 million in small funding for fiscal year 2005. The Snowe- tained and analyzed. Further, since business loans in this fiscal year. These Kerry amendment took a much more H.R. 4062 is a temporary extension of delays are fiscally irresponsible. measured approach to the fee in- SBA’s authority until June 4th, 2004, The Republican obstructionists will creases, adopting the levels supported there would have been time for this justify their delay tactics by arguing in S. 2186 and S. 2193, with flexibility and other proposals to be properly vet- that the earlier bills did not solve the for the SBA to increase the fees up to ted and, if appropriate, adopted. entire funding problem for the rest of the levels in the House bill should the Extreme changes like expanding the the year. However, there are numerous need arise to keep the program running SBAExpress program 700 percent were problems with such a claim. One, time for the remainder of the year without driven by the administration. The was of the essence for the small busi- restrictions. For example, instead of groups agreed to live with them only nesses that had been shutout since temporarily charging a lender fee on because it was better than the alter- January. Two, no one knows if the ad- the commercial portion of a combina- natives—further reducing the loan cap ministration’s estimates are accurate tion or piggyback loan of .5 percent, from $750,000 to $500,000, another shut- and the confidence in the econometric H.R. 4062 charges 40 percent more, im- down, or the administration’s proposal model that predicts future program posing a fee of .7 percent. Senator to mandate all loans be made through costs has gone down as a result of the SNOWE devised the discretionary stair- the 50 percent guarantee SBAExpress SBA’s latest estimates. For example, step compromise in our amendment program. Let me read to you a few how could imposing a fee on piggyback and it was preferred by the lending quotes by the small business commu- loans of .5 percent, a fee that will gen- community. It is unfortunate that the nity that reflect the feelings of many erate new income for the program, not lenders may be required to pay higher expressed to this Committee: offset the costs at all? And, if that is fees than necessary to reach the goal: The Independent Community Bank- true, how could additional savings Congress seeks to keep access to 7(a) ers of America: ‘‘The ICBA did not op- from increasing that fee by 40 percent, loans available to small businesses for pose a short-term fix bill that would to .7 percent be only one one-hundredth the rest of this year, fiscal year 2004. open up much needed lending to small of one percent? I don’t know of one The Snowe-Kerry amendment also businesses, but only because the alter- lender who believes that claim. Three, took a more measured approach in ex- native pushed by the SBA was far it would have been better to take a panding the SBAExpress program. H.R. worse and would have choked off lend- step in the right direction and imme- 4062 includes a controversial provision ers’ ability to continue making SBA diately reduce the cost of the program proposed by the administration that loans. We didn’t want to punish small to the extent possible in order to would expand the current SBAExpress business because of the unwillingness stretch the lending dollars. This option reduced guarantee pilot program from of the SBA to ask for the funds they would have allowed for future refine- loans of $150,000 to $2 million. An in- knew were needed to keep the 7(a) pro- ments while saving precious appro- crease of 700 percent. gram viable. This bill is only a short priated dollars in the process. Four,

VerDate Mar 15 2010 21:42 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00052 Fmt 4637 Sfmt 0634 E:\2004SENATE\S06AP4.REC S06AP4 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 6, 2004 CONGRESSIONAL RECORD — SENATE S3787 there would have been (and still are) sense and has long been their practice. NATIONAL ASSOCIATION OF several other opportunities to make We all appreciate their work to fix GOVERNMENT GUARANTEED LENDERS, adjustments later in the fiscal year. these problems, and for the contribu- Stillwater, OK, March 10, 2004. With respect to the other important tion they make to cultivating small Re SBA 7(a) funding crisis and S. 2186. provisions of H.R. 4062, I am glad that startup and growing small businesses Hon. JOHN F. KERRY, the bill includes my measure from S. in our communities. Russell Senate Office Building, 2186 that allows the 504 Loan Guar- Washington, DC. Mr. President, I ask that several let- DEAR SENATOR KERRY: As Congress con- antee Program to operate through the ters addressing the issue at hand be siders how to solve the ongoing SBA 7(a) pro- rest of the fiscal year; however, I am printed in the RECORD. I thank my col- gram funding crisis, we are writing to ex- very disappointed that, despite bipar- leagues for their support of small busi- press our support for S. 2186, which includes tisan support, the Republican leader- nesses and for considering immediate provisions that both Small Business Com- ship refused to include a Snowe-Kerry passage of this bill. mittees and the 7(a) industry have already amendment to promote women in busi- The letters follow. agreed are equitable. ness and safeguard one of their only While NAGGL is generally opposed to pro- MARCH 10, 2004. grammatic fee increases, the 2004 budget for dedicated resources of support: the na- DEAR REPRESENTATIVE: Today, as the the 7(a) program has made his concession tionwide network of women’s business House prepares to vote on H.R. 3915, we are necessary. NAGGL testified in 2003 that 2004 centers. The Republicans that blocked writing to express our concerns with this program demand would be nearly $12 billion, our amendment—in support of the ad- legislation. We are very disappointed that it but the Administration adamantly disagreed ministration’s policy to eliminate ex- does not include a SBA 7(a) program solu- with our estimate, providing program level perienced, efficient and effective wom- tion. Without a solution the 7(a) program of only $9.5 billion. The Administration has will not be allowed to create much needed en’s business centers in favor of new also failed to reprogram any additional jobs to help our economy. money to the 7(a) program or offer a supple- and untested centers—are potentially The SBA’s flagship 7(a) loan program, the mental appropriations request. depriving thousands of women in busi- single largest provider of long-term start-up As a result, the SBA’s flagship 7(a) loan ness access to much-needed assistance. and expansion loans to America’s small busi- program, the single largest provider of long- The Snowe-Kerry amendment, like S. nesses, has been crippled since the beginning term start-up and expansion loans to Ameri- 2267, would have made a small adjust- of this fiscal year, when the SBA tempo- can’s small businesses, has been crippled ment to the Women’s Business Center rarily shut it down due to a funding short- since the beginning of this fiscal year, when program that corrects an outdated fall. When the Agency reopened the program the SBA temporarily shut it down due to a a week later, it implemented an artificial funding formula, without added cost to funding shortfall. When the Agency reopened loan cap of $70,000—a reduction of more than the program a week later, it implemented an the Treasury. The adjustment would 50% of the program’s statutory loan limit of artificial loan cap of $750,000—a reduction of have changed the portion of funding al- $2 million—and a prohibition on piggyback more than 50% of the program’s statutory lowed for women’s business centers in loans, which would have allowed lenders to loan limit of $2 million—and a prohibition on the sustainability part of the program make loans in excess of a loan cap. piggyback loans, which would have allowed to keep up with the increasing number Businesses who had already submitted ap- lenders to make loans in excess of a loan cap. of centers that will need funding this plications for loans in excess of the new cap Businesses who had already submitted ap- fiscal year. Without it, all grants to were then told their deals would not qualify plications for loans in excess of the new cap for the program. These applicants had gone were then told their deals would not qualify sustainability centers in 39 States through months of financial planning and for the program. These applicants had gone could be cut in half—or worse, 23 expe- had been promised their loans would be ap- through months of financial planning and rienced centers could lose funding com- proved. Many had already begun purchasing had been promised their loans would be ap- pletely. Our amendment was a bipar- equipment and hiring employees. If their proved. Many had already begun purchasing tisan compromise intended to maintain deals do not get done, many will lose earnest equipment and hiring employees. And if an effective women’s business center money they had taken from personal savings their deals don’t get done, many will lose network; a compromise that was and retirement plans to inject into these earnest money they had taken from personal loans. savings and retirement plans to inject into agreed to by Chair SNOWE, myself, and Other potential applicants who would ordi- these loans. the bipartisan leadership of the House narily qualify for the 7(a) program have Other potential applicants who would ordi- Small Business Committee. It was sup- since been told there is no alternative to fi- narily qualify for the 7(a) program have ported by women’s groups across the nance their start-up or expansion. The net since been told there is no alternative to fi- country, and it is my sincere hope that result to these small businesses is a loss of nance their start-up or expansion. The net my colleagues in Congress will support faith in the U.S. government. The net result result to these small businesses is a loss of this change in the very near future. to the economy is a loss of jobs. faith in the U.S. government. The net result I thank the broad coalition of small A solution to this lingering problem does to the economy is a loss of jobs. The provisions of S. 2186 fix this problem, business trade associations that have exist and it has been communicated to the House Small Business Committee. This pro- and the bill has NAGGL’s full support. As worked on the various bills and sup- posal has bipartisan support on the Small the trade association representing lenders ported the provisions in my bill, S. Business Committee, as well as the support who make over 80% of loans in the 7(a) pro- 2186: The trade association of Women of banking and small business trade groups. gram every year, we can attest to the fact Impacting Public Policy (WIPP) and The proposed solution would increase fees for that the minimal fee increases in S. 2186 are the National Association of Women’s lenders to ensure that there is no budget im- ones that lenders will pay and will not be Business Owners (NAWBO), the Na- pact. It would maintain the 7(a) program. passed along to borrowers. We also continue tional Association of Government However, H.R. 3915 ignores this solution. to oppose the SBA’s legislative proposal to reduce the guarantee on all 7(a) loans to 50% Guaranteed Lenders (NAGGL), the Without a 7(a) solution, approximately $3 billion in loans will remain unavailable to and allow the legislation that provided for American Bankers Association, the small businesses for the remainder of FY lender and borrower fee decreases through Independent Community Bankers Asso- 2004—a net loss of approximately 90,000 jobs. the end of this fiscal year to simply sunset. ciation and the U.S. Chamber of Com- We also fear that if a swift and equitable so- Without the provisions of S. 2186, $3 billion merce for endorsing the provisions re- lution is not enacted, many 7(a) lenders will in loans will remain unavailable to small lating to the 7(a) Loan Guarantee Pro- flee the program, leaving a void in avail- businesses for the remainder of FY 2004—a gram; WIPP, NAWBO, and the Associa- ability of the long-term financing that is so net loss of approximately 90,000 jobs. We also tion of Women’s Business Centers for crucial to small businesses’ success. fear that if a swift and equitable solution is We request that Congress bolster economic not enacted, many 7(a) lenders will flee the fully supporting the provisions relating recovery and the small businesses that drive program, leaving a void in availability of the to the Women’s Business Centers pro- it by enacting a 7(a) program solution that long-term financing that is so crucial to gram, as well as the cosponsors of S. has the full support of Congress and the in- small businesses’ success. This will be occur- 2186. I think anyone who knows of dustry. ring at a time when our economy is in des- these groups, their members and their Sincerely, perate need of a shot in the arm. leadership, knows that they work very American Bankers Association. We request that you press for swift passage well with both sides of the aisle and America’s Community Bankers. of S. 2186 to bolster economic recovery and Independent Community Bankers of Amer- the small businesses that can drive it. Thank with the leadership of our Committee ica. you in advance for your consideration. and also the House Committee on National Association of Government Guar- Sincerely, Small Business. Working cooperatively anteed Lenders. TONY WILKINSON, in a bipartisan fashion makes good The Financial Services Roundtable. President and CEO.

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CRYSTAL COLLECTION, est SBA 7(a) lender, is a strong supporter of ment and Budget to reopen the 7(a) loan Suwanee, GA, April 5, 2004. the Senate and House bill that is also sup- guarantee program and remove the $750,000 Hon. JOHN KERRY, ported by the ‘‘Access to Capital Coalition loan cap as soon as possible. Ranking Member, Committee on Small Business Organization,’’ which will permit the reopen- Sincerely, and Entrepreneurship, Russell Senate Office ing of a viable 7(a) loan program in America. DONALD WILSON, Building, Washington, DC. This means once law, SBA would be required President. DEAR SENATOR KERRY: Please support the to drop the prohibition against ‘‘piggyback 7a loan so more small business can succeed. loans’’ and eliminate the current loan cap. COMPASS BANK, The following suggestions from the National As most every 7(a) lending organization has Houston, TX, January 12, 2004. Association of Women Business Owners indicated since early January 2004, it is abso- Senator JOHN KERRY, (NAWBO): lutely critical that these 7(a) program im- Russell Senate Office Building, Allow piggyback loans, but charge 0.50 per- pediments be dropped at the earliest possible Washington, DC. cent lender fee for each; date. As you are aware, no knowledgeable DEAR SENATOR KERRY: I am writing to Raise Lender Fees by 0.10 percent; and trade organization or 7(a) lending entity sup- alert you to an economic crisis that should For loans that are under $150,000, have ports a mandatory 50% maximum loan guar- have been avoided but can still be remedied. lenders pass the SBA the 0.25 percent fee anty, as it would represent a slow death of The U.S. Small Business Administration that lenders currently keep for themselves. the 7(a) loan program. Most every commu- (SBA) claims it has run out of money for its This only applies to these small loans. nity in America utilizes the 7(a) loan pro- flagship 7(a) loan program. This is because Thank you for your support. gram as a major part of their economic de- the Administration did not request adequate Sincerely, velopment/job creating/job retention pro- funds for the program for fiscal year 2004. SHELLY BLOOM, gram. If one removed from our economy all The Administration only requested a pro- President. businesses and the jobs they create directly gram level of $9.3 billion, even though the and indirectly, who at one time or another program did $11.3 billion last year, even with LINDEN INTERNATIONAL, received 7(a) loan assistance, this would be a a $500,000 loan cap in place for nearly half of Wayne, PA. totally different country. To assist the re- the fiscal year. NAGGL estimated that de- Hon. JOHN KERRY, covery of our economy and the retention and mand would be $12.5 billion beginning with Ranking Member, Senate Committee on Small creation of jobs, it is absolutely essential our budget testimonies in February 2003. Business and Entrepreneurship, Russell that the 7(a) loan program be returned to its Loan volume for the first three months of Senate Office Building, Washington, DC. prior dynamic status. Thank you for your fiscal year 2004 was $3.137 billion, a level of DEAR SENATOR KERRY: I would greatly ap- leadership in this matter. Please encourage demand that clearly supports NAGGL’s esti- preciate your support for the 7a program the Administration and your colleagues to mates of demand. ‘‘rescue’’. I favor the following to help me support the House and the Senate bill that Because the Administration did not seek and many other small businesses rebound would solve this current dilemma! sufficient program level, the SBA has now and re-grow: Respectfully submitted, shut down the 7(a) program until further no- 1. Allow piggyback loans, and charge a 0.50 DERYL K. SCHUSTER, tice, depriving small businesses of the cap- percent lender fee; Executive Vice President, ital they need in order to expand their busi- 2. Raise lender fees by 0.10 percent; and Director, Governmental Affairs. nesses, hire new people, and aid the Amer- 3. For loans under $150,000, have lenders ican economic recovery. The shutdown oc- pay the SBA the 0.25 percent fee that the ASSOCIATION OF SMALL BUSINESS curred just a few weeks after SBA Adminis- lender now keeps for themselves. DEVELOPMENT CENTERS, trator Barreto told the NAGGL Annual Con- We are all keening for help to re-establish Burke, VA, January 9, 2004. ferees that the ‘‘program would not be shut- ourselves and assure a firm foundation for Hon. JOHN KERRY, down, and that the $9.3 billion program re- the future of small businesses in the US. U.S. Senate. quest would be sufficient.’’ Sincere thanks. DEAR SENATOR KERRY: I am writing about In unprecedented fashion, the SBA is now Very truly yours, the recent decision by the U.S. Small Busi- rejecting and returning all loan applications. MARY KAY HAMM, ness Administration (SBA) to suspend mak- During previous funding shortages, the SBA President and CEO. ing loan guarantees for small businesses continued to accept and process loan appli- under the 7(a) loan program. cations. The loans would then be funded PROACTIVE SOLUTIONS INC., As you know, the SBA announced on De- when loan funds became available. The Plantation, FL, March 24, 2004. cember 23rd that it would begin imposing a SBA’s action, to make small businesses pay Hon. JOHN KERRY, $750,000 cap on 7(a) loan guarantees effective for its own mismanagement, is unconscion- Ranking Member, Committee on Small Business January 8th, even though Congress has au- able. and Entrepreneurship, Russell Senate Office thorized loan guarantees up to $2 million. Because small businesses are the chief en- Building, Washington, DC. The SBA’s announcement led small busi- gine of economic recovery, America can ill DEAR SENATOR KERRY: My name is Sheila nesses with loan applications for more than afford a halt in funding to small businesses Tobier and I am the president elect of $750,000 to submit their applications before in this time when the economy is just re- NAWBO (National Association of Women the announcement deadline. As a result, the gaining steam. Business Owners). We ask the following from SBA experienced a significant increase in Though the SBA has been implored by the committee. 7(a) loan applications and suspended the pro- members of both major political parties to Absent the SBA asking Congress for addi- gram until further announcement, on the immediately seek an equitable solution, the tional funding, NAWBO supports increasing grounds that the increase in loan applica- Administration has thus far not come for- fees on lenders as an approach to adequately tions had led to a shortfall in funding. ward with any positive solutions. The Ad- funding the SBA 7(a) program and lifting re- Small businesses throughout the country ministration has thus far responded only strictions. have seen their loans put in jeopardy as a with loan caps, program shutdowns, and ex- Specifically, NAWBO would like the pro- consequence of this decision, and applicants cuses why this is Congress’ fault. gram to: for loans above $750,000 may be unable to ob- One conclusion could be that the Adminis- Allow piggyback loans, but charge a 0.50 tain loan guarantees—or be forced to re- tration desires to either dismantle or signifi- percent lender fee for each; apply—even if the 7(a) loan program is re- cantly change the SBA and the 7(a) program. Raise lender fees by 0.10 percent; and opened. The ASBDC is hearing from Small I’m asking you not to let this happen. For loans that are under $150,000, have Business Development Center (SBDC) coun- The Administration should either request lenders pay the SBA the 0.25 percent fee that selors in the field that the decision to sus- a reprogramming of funds or submit a sup- lenders currently keep for themselves. This pend the 7(a) loan program could pose a se- plemental appropriation request sufficient to only applies to these small loans. vere hardship for many SBDC clients. fund the 7(a) program to $12.5 billion this Thank you for assisting us in this endeav- In the past three years, the 7(a) loan guar- year. The SBA should be required to lift both or. antee program has helped make financing the current program freeze and the artificial Sincerely, available to more than 40,000 start-up small $750,000 cap it has put in place to restrict SHEILA TOBIER, businesses and 99,000 existing small busi- small business access to capital. The SBA President. nesses—leading to the creation of more than should be required to stop the budget gim- one million new jobs. Suspending this vital micks and put forward a credible budget re- BUSINESS LOAN EXPRESS, small business lending program at this crit- quest that ensures this program is funded Wichita, KS, March 5, 2004. ical stage of the economy’s recovery from properly in fiscal year 2005 and beyond with- Hon. JOHN F. KERRY, the recession will prevent the start-up and out fee increases to borrowers and lenders. Ranking Minority Member, Committee on Small the expansion of small businesses through- Don’t let this Administration dismantle a Business, U.S. Senate, Russell Senate Office out the country, and stymie the economy’s program that has served small businesses so Building, Washington, DC. creation of new jobs. well for so long. DEAR MR. KERRY: Please be advised that I appreciate all that you do to support Sincerely, Business Loan Center, LLC, aka Business small business. I urge you to continue to HARRIET BOSHAW, Loan Express, LLC, the nation’s third larg- work with the SBA and the Office of Manage- SBA Lending Department.∑

VerDate Mar 15 2010 21:42 Jan 29, 2014 Jkt 081600 PO 00000 Frm 00054 Fmt 4637 Sfmt 0634 E:\2004SENATE\S06AP4.REC S06AP4 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 6, 2004 CONGRESSIONAL RECORD — SENATE S3789 COMMEMORATING HENRY MANCINI and fellow composer, Jack Elliott. The added an additional $101 million for re- ∑ Mrs. FEINSTEIN. Mr. President, it is Henry Mancini Institute’s mission is to search, a 25 percent increase. my pleasure to honor Henry Mancini, a nurture the future of music by pro- Now that the CARES process is wrap- fine composer, conductor, and ar- viding comprehensive professional ping up, VA can begin new construc- ranger. Mr. Mancini was one of the training and multilevel outreach pro- tion projects. We will be watching to most versatile musical talents and one grams that make a direct impact in make sure the Secretary carefully con- of America’s most celebrated musi- people’s lives. Mr. Mancini himself es- siders all proposed closings. I look for- cians of the twentieth century. He lent tablished scholarships and fellowships ward to seeing new hospitals and clin- his talents to many films and tele- at the Nation’s top music schools. ics opened in Kentucky and around the vision series, the themes and melodies Many of tomorrow’s composers, con- Nation. Last year I told the Secretary that of which are recognizable to listeners ductors, and arrangers have benefited VA had come a long way in fixing its the world over, even if they are unfa- from Mancini programs at New York’s problems but there was still a long way miliar with the name of the composer. Julliard School of Music his alma April 16 would have been Henry mater, and in Los Angeles at USC and to go. I am glad to say that the system Mancini’s 80th birthday. Even though UCLA. is stronger this year, but we must not Mr. Mancini passed away in 1994 after a I would also like to recognize the let up. We must keep working to make long battle with cancer, his contribu- Mancini family, who has gracefully sure our veterans receive the assist- tion to music and the arts has not been embraced Henry’s legacy and allowed ance they need in a timely and conven- ient manner. I am committed to doing forgotten. for future generations of musicians to The United States Postal Service will celebrate his accomplishments and just that. Finally, I recognize all the Kentucky unveil the Henry Mancini commemora- contributions. My good friend Ginny veterans in the hearing room. I had a tive stamp next week. The unveiling Mancini, whom he married in 1947, has good visit with some of you in my of- ceremony on April 13 will take place at relentlessly worked to bring about the fice earlier this week. Thank you for the Music Center Plaza in Los Angeles creation of this stamp, as have their making the trip today and thank you and will be hosted by our distinguished children: Christopher, Monica, and for your service to our Nation and your former colleague, John Glenn, a long- Felice. fellow veterans.∑ time friend of Mancini. Senator Glenn, Honoring Henry Mancini with this it might be added, took a recording of commemorative stamp will serve as a f Mancini’s timeless classic, ‘‘Moon lasting tribute, just as his music is a MESSAGES FROM THE PRESIDENT ∑ River,’’ on his return to space in Octo- lasting gift to the world. Messages from the President of the ber 1998. f United States were communicated to In his lifetime, Henry Mancini’s mas- COMMITTEE ON VETERANS’ the Senate by Mr. Williams, one of his terful talents were recognized with 72 AFFAIRS secretaries. Grammy Award nominations and 20 Grammy wins, eighteen Academy ∑ Mr. BUNNING. Mr. President, it is a f Award nominations and four Oscar pleasure to be here today with our col- EXECUTIVE MESSAGES REFERRED wins, and a Golden Globe. leagues from the House Veterans Af- As in executive session the Presiding While awards are a notable measure fairs Committee and the members of Officer laid before the Senate messages of talent, the scope of Mr. Mancini’s the Veterans of Foreign Wars. The from the President of the United work is more impressive than the VFW has a rich tradition in enhancing States submitting sundry nominations nominations he received for that work. the lives of millions through its com- which were referred to the appropriate During the 1950s, Mr. Mancini had a munity service programs and special committees. hand in the scores of over 100 films pro- projects, and I am proud to have their (The nominations received today are duced by Universal-International Stu- services in the Commonwealth of Ken- printed at the end of the Senate pro- dios. It was also at Universal that Mr. tucky. ceedings.) The work of our committees is as im- Mancini met Blake Edwards, and to- f gether they worked on 26 films over 30 portant as ever because of the thou- years. These collaborations produced sands of new wartime veterans leaving EXECUTIVE AND OTHER some of Mancini’s most popular and the service and the increasing needs of COMMUNICATIONS award-winning compositions, including our aging veterans. We owe all our vet- The following communications were the ‘‘Peter Gunn’’ television series, erans a debt of gratitude and I am com- laid before the Senate, together with ‘‘Breakfast at Tiffany’s,’’ ‘‘The Pink mitted to making sure we provide them accompanying papers, reports, and doc- Panther’’ films, and ‘‘Victor/Victoria.’’ with ample benefits and quality med- uments, and were referred as indicated: In all, over 500 of Mr. Mancini’s ical care. EC–6984. A communication from the Sec- works were published. Mr. Mancini re- President Bush has proposed signifi- retary of Agriculture, transmitting, a draft corded over 90 albums with styles from cant increases in spending for our vet- of proposed legislation relative to pre- jazz to classical, including eight al- erans, but it is important to keep in scribing, adjusting, and collecting fees in- bums certified gold by the Recording mind that his budget is only a starting curred for activities under the Animal Wel- Industry Association of America. As an point. Each year he has requested in- fare Act; to the Committee on Agriculture, Nutrition, and Forestry. in-demand concert performer, he creases in funding for the VA and Con- EC–6985. A communication from the Execu- logged over 600 symphony perform- gress has provided even more beyond tive Director, Commodity Futures Trading ances, and conducted such symphony those requests. Commission, transmitting, pursuant to law, orchestras as the London Symphony The last 2 years Congress has pro- the report of a rule entitled ‘‘17 CFR Part 1, Orchestra, the Israel Philharmonic, the vided unprecedented increases in fund- Investment of Customer Funds (69 FR 6140, Los Angeles Philharmonic, and the ing for VA health care. I support an- February 10, 2004)’’ (RIN3038–AC01) received Royal Philharmonic Orchestra. other substantial increase for VA on April 5, 2004; to the Committee on Agri- culture, Nutrition, and Forestry. Andy Williams said at Mancini’s 70th health care this year and I am con- EC–6986. A communication from the Prin- birthday celebration: ‘‘The wonders of fident we will deliver. In fact, the budg- cipal Deputy, Office of the Under Secretary Henry Mancini will be heard in every et resolution currently before the Sen- of Defense for Personnel and Readiness, De- corner of the world right up to the ate provides for an extra $1.3 billion for partment of Defense, transmitting, pursuant minute this planet cools and shrinks to the VA and rejects the proposed co-pay to law, the report of the authorization of of- the size of an eighth note.’’ But it is increases and enrollment fees. ficers to wear the insignia of brigadier gen- more than the music he composed that VA conducts some of the most spe- eral; to the Committee on Armed Services. cialized medical research in our Na- EC–6987. A communication from the Reg- will be Henry Mancini’s legacy. ister Liaison Officer, Department of Defense, In honor of Mancini’s dedication to tion. That research is especially impor- transmitting, pursuant to law, the report of educating young musicians, the Henry tant to disabled veterans. I oppose the a rule entitled ‘‘Appeals and Hearings Proce- Mancini Institute was founded in Los proposed cut in VA research. The Budg- dures’’ (RIN0729–AA74) received on April 5, Angeles in 1997 by his longtime friend et Committee rejected that cut and I 2004; to the Committee on Armed Services.

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