Printer Friendly Page

       

---------------

REPUBLICAN PRESS RELEASE

March 15, 2007

SEN. CRAIG SEEKS TO PROTECT JOBS OF GUARD AND RESERVE

Bipartisan bill would increase the amount of loans available for small businesses

Media contact: Jeff Schrade (202)224-9093

(Washington, DC) Small businesses which employ members of the National Guard and Reserve could benefit under legislation introduced Thursday by three U.S. Senators.

"In states across the nation, members of the Guard and Reserve have been called from their employment at America’s small businesses to serve our country in the War on Terror. Whether they are owners or critical employees, the mobilization of these members of the Guard and Reserve may have devastating consequences on those small businesses – leaving some of them with no employer or no small business to return to after their deployment," said Sen. Craig, the ranking member of the U.S. Senate Committee on Veterans’ Affairs.

"For the brave men and women of the Guard and Reserve who are called to active duty, we must do what we can to ensure that their sacrifices do not place them in financial harm's way when they return home," said Sen. Craig.

"That’s why I believe we should do more to help small businesses in coping with the financial hardships of frequent and lengthy mobilizations of its employees or owners during the war on terrorism, and our legislation does just that."

The "Veterans Small Business Opportunity Act of 2007" would increase the amount of loans available to eligible small businesses when an essential employee is called-up to active duty. The bill is sponsored by U.S. Senator Olympia Snowe (R-Maine), and co-sponsored by Sens. Larry Craig (R-Idaho) and Mark Pryor (D-Arkansas).

The legislation would allow the U.S. Small Business Administration to raise the current maximum military reservist loan amount from $1.5 million to $2 million – a $500,000 increase. It would also allow the SBA, by direct loan or through banks, to offer unsecured loans of up to $25,000 – a substantial increase from the current $5,000 limit.

A small business may qualify for the loans if an employee or owner who has been called up for active duty has managerial or technical expertise that is critical to the successful day-to-day operations of the small business.

Small businesses that obtain these loans do have to repay the money in a repayment period ranging from 3 to 30 years, but by law the interest charge on the loans can be no more than four percent – the current rate.

---------------

Larry Scott

Click here to make VA Watchdog dot Org your homepage