Welch unveils bill intended to increase access to credit for small businesses
Rep. Peter Welch unveiled legislation Monday morning aimed at freeing up credit to small businesses by expanding a successful Small Business Administration loan program.
At Burlington's Chittenden Bank, Welch and members of Vermont's business and banking communities outlined details of Welch's bill, which is intended to bolster the popular SBA Express Loan Program. By increasing the SBA Express program's current cap of $350,000 to $2 million, the legislation would significantly increase access to credit for Vermont's small businesses. Welch will introduce his bill in the House this week.
Small business owners throughout Vermont have struggled since the start of the current economic crisis with securing and retaining lines of credit. At a small business roundtable in Bennington last month, business owners told Welch that the tight credit environment was the single greatest difficulty they faced in expanding their businesses.
"Vermont small businesses need access to credit in order to weather this economic storm - and right now, they don't have that," Welch said. "By expanding the highly successful SBA Express Loan Program, I believe we can give our small businesses a key tool to survive these difficult economic times."
Established in 1995 to increase the effectiveness and efficiency of SBA's lending programs, SBA Express reduces the amount of required paperwork and accelerates the approval process for small businesses. Because it significantly reduces costs for lending institutions, SBA Express has thrived during the economic crisis, even as other lending programs have not. The program's current loan cap of $350,000, however, has constrained the potential of SBA Express, experts agree.
Bennington Chamber of Commerce Executive Director Joanne Erenhouse and Chittenden Bank SBA Loan Officer Robin Shanahan joined Welch at Monday's event to reiterate the importance - for both small businesses and lenders - of expanding SBA Express. Franklin County Regional Development Corporation Executive Director Tim Smith and Rutland Economic Development Corporation Executive Director Jamie Stewart also attended the event.