Larry Toney POSC 100 Professor Shurtz 15 November 2010

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The purpose of this bill is to optimize the ability for a small business to remain lucrative, and increase the incentive for maintaining such a business, by increasing the availability of 504 loans.

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The American economy is in the depths of an economic recession. This bill set forth combats the failing foundation by supporting 504 loans for small business endeavors. Small businesses are the foundation to a healthy economy because of the desire of an average American to own his business even as it fails, until it is absolute that he can no longer keep it. More money means the addition of supply from bigger businesses, as well as his expanding in order to gain an edge. This bill supports the availability of credit to businesseses. o Currently, the Small Business Administration is limited by legislation to have set limits on who can get loans, and how much money they can receive, for the purpose of expanding their business.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, that:

Section 1: Main effect of legislation

o To permanently increase 504 limits from $2 million to $5 million (for manufacturers in 504 loan program. 504 loans are loans that deal with the expanding of businesses. businesses cannot accept more than one loan and must prove eligibility.y Higher Loan limits to significantly increase maximum loan sizes in loan programs. they cannot be worth more than $15 million dollars. and to increase microloan limits from $35. taking loans to pay for loans. Section 2: Limitations and restrictions y y y Businesses are restricted by size. up to $5. helping larger entrepreneurs with start-up costs and small business owners in maintaining business among hard communities. y Businesses found to be worth more than $15 million dollars. Businesses are limited on the monetary amounts that they can be lent Finally. or seeking loans worth more . y Increased length of time and increments for the repayment of loans o To allow for greater flexibility towards the use of the loan. respectively. will be investigated and be subjected to a fine of $10. y Alternative Size Standards so more small businesses are eligible to get SBA loans o To expand the number of small businesses eligible for loans by increasing the size standard to those with less than $15 million in net worth and $5 million in average net income.000 to $50. Section 3: Penalties or Fines y Businesses found to be looping loans.5 million).000. and the ability for greater profit to be rendered.000 dollars. increase the standard length of loans and stretch their repayment increments by 40% and 20%.

will be denied and forced to seek funds elsewhere. to be used solely for the purpose of 504 loans . the Secretary of the Treasury must allow no more than $30 billion dollars.than $5 million dollars. Section 4: Costs y For the purpose of having money to lend.

This also applies to businesses which are failing and are desperate in their need for financial assistance. Also. and furthermore. buy products. So we increase the important of small businesses by allowing more 504 loans. as well as allow for a more significant expansion. this law shall end the "Competitiveness Demonstration" program. There would be no need for a business to search for loans after the current maximum of $2 million dollars. Though this recession applies to the whole world. improve the spectator appeal. regarding more Opportunities for Small Businesses. the limit is $2 million dollars. therefore big businesses that produce loans and other commodities cannot live. so this program is looped about already to prevent abuse of the system. 504 loans mainly deal with the expansion of businesses. big businesses are entitled to be multi-national.I believe that this bill will support the American economy through this recession. small businesses cannot attain more supply with which to sell. It can be assumed that the money won¶t be abused since it all has to be paid back in full. Such businesses would take out a 504 loan from the Small Business Administration. while small businesses usually revolve around a community setting. The law reaffirms parity among federal small-business contracting programs. according to a similar bill passed in 2009. the low interest rates are ideal for the growth of such a small business. When awarding contracts that are set aside for small businesses. This bill in whole will promote entrepreneurship and the maintenance of a failing business. which . and from there have a larger pool with which to expand. and advertise with. By changing to $5 million dollars. it can significantly save a failing business and provide a fountain of surplus. Currently. It allows for a businessman¶s ingenuity to not be marred by the availability of funds. While communities do not spend. The first section of this bill deals with 504 loans. contracting officers are currently free to choose among businesses owned by women and service-disabled veterans.

The law makes it harder for agencies to "bundle" contracts. such as in construction and landscaping.now limits opportunities for small contractors in industries where they excelled. a practice that makes it more difficult for small businesses to compete. It also would hold large contractors more accountable to their own contracts by requiring written justification when plans aren¶t met and when small business contractors aren¶t paid on time with their loans . The law will put in place a legal standing of "presumption of loss" when a business misrepresents its ownership status or size in winning a government contract.

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