Miami-Dade Legislative Item
File Number: 090514
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File Number: 090514 File Type: Resolution Status: Adopted
Version: 0 Reference: R-301-09 Control: Board of County Commissioners
File Name: IMPROVE ACCESS TO CAPITAL FOR SMALL BUSINESSES Introduced: 2/25/2009
Requester: NONE Cost: Final Action: 3/17/2009
Agenda Date: 3/17/2009 Agenda Item Number: 11A11
Notes: Title: RESOLUTION URGING PRESIDENT OBAMA’S ADMINISTRATION TO QUICKLY IMPLEMENT PROVISIONS IN THE AMERICAN REINVESTMENT AND RECOVERY ACT THAT WOULD IMPROVE ACCESS TO CAPITAL FOR SMALL BUSINESSES; HELP SMALL BUSINESSES THAT ARE STRUGGLING WITH EXISTING DEBT, AND SPUR INVESTMENT IN SMALL, HIGH-GROWTH FIRMS
Indexes: SMALL BUSINESS PROGRAMS
Sponsors: Dennis C. Moss, Prime Sponsor
  Dorrin D. Rolle, Co-Sponsor
  Natacha Seijas, Co-Sponsor
  Audrey M. Edmonson, Co-Sponsor
Sunset Provision: No Effective Date: Expiration Date:
Registered Lobbyist: None Listed


Legislative History

Acting Body Date Agenda Item Action Sent To Due Date Returned Pass/Fail

Board of County Commissioners 3/17/2009 11A11 Adopted P

Budget, Planning and Sustainability Committee 3/10/2009 2AA Forwarded to the BCC by the BCC Chairperson with a favorable recommendation P
REPORT: SPECIAL NOTE: Chairwomen Sorenson submitted a memorandum requesting that the Board of County Commissioners (BCC) Chairman Dennis C. Moss waive the Board's Rules and Procedures to allow the foregoing proposed resolution to be heard at the March 17, 2009 BCC meeting.

County Attorney 2/25/2009 Referred Budget, Planning and Sustainability Committee 3/10/2009

County Attorney 2/25/2009 Assigned Jess M. McCarty 3/4/2009

Legislative Text


TITLE
RESOLUTION URGING PRESIDENT OBAMA’S ADMINISTRATION TO QUICKLY IMPLEMENT PROVISIONS IN THE AMERICAN REINVESTMENT AND RECOVERY ACT THAT WOULD IMPROVE ACCESS TO CAPITAL FOR SMALL BUSINESSES; HELP SMALL BUSINESSES THAT ARE STRUGGLING WITH EXISTING DEBT, AND SPUR INVESTMENT IN SMALL, HIGH-GROWTH FIRMS

BODY
WHEREAS, small businesses generated between 60 and 80 percent of all new U.S. jobs over the past 10 years, and employ nearly 50 percent of all workers in the U.S. economy; and
WHEREAS, the recent tight credit market has particularly hurt small businesses; and
WHEREAS, as such, one of the most important components of the economic recovery plan should be to improve access to capital for small businesses by increasing federal lending authority and funding for small businesses, including a strong and vibrant guaranteed loan program and micro-loan program administered by the Small Business Administration (SBA) which provide startup and long-tern financing for small business that cannot obtain financing anywhere else; and
WHEREAS, on February 13, 2009, Congress passed the Conference Report on the American Reinvestment and Recovery Act of 2009 (Conference Report to H.R. 1)(ARRA); and
WHEREAS, the ARRA includes provisions intended to help small businesses in three ways: (i) by making affordable credit available to small businesses; (ii) by helping small firms that are struggling with existing debt; and (iii) by spurring investment in small, high-growth firms; and
WHEREAS, the ARRA includes the following provisions specifically related to assisting small businesses:
* Reduce to zero fees on loans backed by the Small Business Administration (SBA), with fee reductions going directly to small business borrowers;
* Raise the percentage of a loan that the SBA may guarantee from 85 percent to 90 percent, encouraging banks and private lenders to reenter the market for SBA-backed loans;
* Establish a new “Small Business Stabilization Financing Program” that will allow the SBA to make no interest loans to firms that are struggling to make payments on existing debt;  
* Unfreeze the secondary market by allowing “broker-dealers” of SBA-backed loans to take out additional loans from the SBA in order to purchase additional loans off banks’ books, which will provide banks with liquidity so they can lend to small businesses again; 
* Allow the SBA to guarantee existing debts in loan pools that are currently unguaranteed, providing liquidity in the secondary market so that banks begin lending again;
* Allow small businesses to refinance existing debts under the SBA’s 504 program;
* Streamline the Small Business Investment Company (SBIC) program to provide fast growing companies with equity capital they need to grow and create jobs;
* Ensure oversight by requiring the Government Accountability Office (GAO) to report to Congress on the implementation of the small business lending provisions in the stimulus package;
* Provide $15 million to the SBA’s surety bond program, including larger bonding authority, to help small firms obtain construction-related projects;
* Provide $30 million for the SBA’s microloan program, which provides loans and technical assistance for low income entrepreneurs and laid-off workers who are starting their own business; and
WHEREAS, the ARRA is anticipated to yield nearly $21 billion in new loans and investment for small businesses and it is estimated that the small business provisions of the ARRA will spur the creation of approximately 634,000 jobs; and
WHEREAS, the SBA should act quickly to implement the provisions of the ARRA related to small businesses so as to assist existing small businesses that are struggling, encourage new small business start-ups, and facilitate overall economic development in our community, 
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board:
Section 1. Urges President Obama’s Administration to quickly implement the provisions in the American Reinvestment and Recovery Act that would improve access to capital for small businesses; help small businesses that are struggling with existing debt, and spur investment in small, high-growth firms.
Section 2. Directs the Clerk of the Board to transmit a certified copy of this resolution to the members of the Florida Congressional Delegation, the Administrator of the Small Business Administration.
Section 3. Directs the County's federal lobbying team to advocate for the legislation set forth in Section 1 above, and authorizes and directs that the 2009 Federal Legislative Package be amended to include this item.



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