August  2004      Vol. 13, No. 8  REAP HOME PAGE  A publication of the Center for Rural Affairs    
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Small Business Administration Microloan Budget Status
House of Representatives restores SBA Microloan Program funding at reduced levels. Senate action looks to be stalled indefinitely.

There is GOOD NEWS regarding the SBA Microloan Program! On July 7, the House of Representatives passed an amendment by Commerce-Justice-State Chairman Frank Wolf and Ranking Member Jose Serrano to restore funding for the Microloan Program at $13 million for Technical Assistance and $10.5 million in lending capital.

While this is not the level of funding requested, it is an incredibly important step in the right direction. The House of Representatives has let it be known loud and clear they want the SBA Microloan Program in the FY 2005 budget.

Thanks to everyone who participated in this effort by making phone calls and/or sending letters to your representative. Your voice was heard and made a huge difference.

Next Steps in the Senate
We now turn to the Senate, where the appropriations bill has yet to be drafted. Movement on the bill in the Senate has been stalled indefinitely.

This will give us more time to send letters, faxes, and to make phone calls. You can send a letter today in support of the SBA Microloan Program by going to http://www.microenterpriseworks.org and entering your zip code.

For over 10 years, the SBA Microloan Program has successfully served communities across America, specifically those areas suffering from a lack of credit due to economic downturn. In 2003 the Microloan program provided over 2,400 loans.

These are loans to individuals who, despite facing challenges to successful business ownership, strike out to make better lives for themselves, their families, and their communities.

These borrowers are unique to the Microloan program and are not adequately served by alternate government programs, as suggested in the Administrationís 2005 Budget Proposal. REAP has been an SBA Micro-loan Intermediary since the program began in 1992.


Contact: REAP Program Director Jeff Reynolds, 402.656.3091 or jeffr@alltel.net  if you have any questions or comments.
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