Chairman Graves Statement on Sec. Geithner’s Defense of the Small Business Jobs Act of 2010
Oct 18, 2011 -
Chairman Graves Statement on Sec. Geithner’s Senate Small Business Committee Testimony on the Small Business Jobs Act of 2010
WASHINGTON— House Small Business Committee Chairman Sam Graves (R-MO) today issued the following statement on Treasury Secretary Timothy Geithner’s testimony before the Senate Small Business and Entrepreneurship Committee on the Small Business Jobs Act of 2010 and the Small Business Lending Fund (SBLF):
“During debate of the Small Business Jobs Act of 2010, Secretary Geithner and the Obama administration claimed that it would create 500,000 jobs through leveraging $300 billion of private sector lending. However, because of bureaucracy and red tape, that clearly has not happened. Only about $4 billion of the $30 billion Small Business Lending Fund was used before the program ended in September, and at the time of my Committee’s hearing in June, no funding had gone to any banks, nine months after the law’s enactment. The performance of this program was atrocious, however this shouldn’t be a surprise. There were warning signs and red flags before the passage of this stimulus-like spending program, but it was rushed through just as many other bills were during the last session of Congress.
“Many Republicans & Democrats did not vote for the Small Business Jobs Act of 2010 because they were concerned that this deficit-deepening spending program would not actually generate sufficient new lending to true small businesses—as proved to be true. Let this be yet another lesson to Washington as we move forward in debating ways to help our nation’s job creators. Temporary quick-fix bursts of government spending will not solve our unemployment crisis and help our small businesses, but instead they need tax reform and relief from unnecessary regulations to bring about long-term certainty.”
Secretary Geithner testified before Chairman Graves and the House Small Business Committee on June 22, 2011. The hearing focused on the SBLF, which was created by the Small Business Jobs Act of 2010 as passed by the Democrat-controlled Congress last year.