Washington, DC – Today, Congressman Raúl M. Grijalva voted to create new jobs and drive economic growth, with the Job Creation through Entrepreneurship Act (H.R. 2352). This bipartisan legislation gives small businesses and entrepreneurs more of the tools and resources they need to succeed and thrive.
“Small businesses are the backbone of our economy,” said Grijalva. “And I am deeply committed to supporting the spirit of entrepreneurship that propels our small businesses. The legislation we passed today is crucial to getting us out of this financial downturn.”
The legislation, part of our agenda to create jobs, marks the first major overhaul of the Small Business Administration’s entrepreneurial development programs in a decade. It expands and improves some of the most successful programs, such as Small Business Development Centers (SBDCs), Women’s Business Centers (WBCs), and the Service Corps of Retired Executives (SCORE). The bill also creates new online learning programs and establishes grant programs to assist small firms in securing capital and credit.
The legislation also establishes, for the first time, a nationwide network of Veterans Business Centers to provide specialized entrepreneurial training and counseling to our nation’s veterans
In addition, the bill creates a grant program for SBDCs specifically designed to assist small firms in securing capital such as the new small business lending generated under the American Reinvestment and Recovery Act (ARRA). The ARRA contains numerous provisions to generate new small business lending, such as increasing from 85% to 90% the amount of an SBA-backed loan that the government guarantees – with estimates that the Act will generate $21 billion in new lending and investment for small businesses.
Entrepreneurial development programs are a wise investment in our economy. It has been estimated that for every $1 spent on these programs, there is a $2.87 return to the Treasury. Entrepreneurial development programs also helped create 73,000 jobs, in 2008 alone.