SBLF Bill Is Spelled T-A-R-P

The latest Obama spending bill to get voted out of the Congress and headed for Obama’s ceremonial signing is H.R. 5297, the Small Business Loan Fund (SBLF). CBO estimates that implementing H.R. 5297 would cost about $3.3 billion over the 2011-2015 period. The Senate amended the bill and on September 16th, by a 61-38 vote, it was returned to the House for a vote on the amended bill. You can see the details of this roll call vote here. Notice that only 2 retiring GOP Senators, Voinovich and LeMieux voted yea with the Ds. LeMieux got his amendment approved to pull him in. I do not know Voinovich’s deal. Here is what Louisiana Senator Mary Landrieu said on the Senate floor. I think were it not for Babs Boxer that Landrieu would be considered the dimmest bulb in the Senate.

Photo of Landrieu  The Republicans have made sure when they go to their credit card companies, they have to pay pretty high rates and they can’t get help. Now when we offer them good loans at reasonable rates for their businesses through their own community banks they know, the Republican leadership tells us no. Maybe it is because they don’t want this recession to end so they can blame President Obama and the Democrats for everything, and they can try to win the election. I hope that is not the case because small businesses should not be a pawn in the next election. We should be doing everything we can to help them.

We bailed out the big banks. We bailed out the derivatives folks. We bailed out the swap kings and queens. This is for the small banks. The only way you can even be in this program is if you have less than $10 billion. This is for the small banks. There are 7,500 community banks out there and somebody should stand up for them. I know their PACs aren’t as big. I know they don’t give as many contributions. They don’t have as much money as the big banks do.

Really Sen. Landrieu? So anyone who votes nay just doesn’t want this recession to end so they can blame President Obama? So anyone who votes nay is using small businesses as a pawn? I would enjoy seeing you walk up to Rep. Nydia Velazquez from New York’s 12th congressional district and tell her that to her face. You see when this amended bill was voted on in the House on September 23rd, Nydia and 12 of her D colleagues in the House voted nay with all but one GOP House member. You can see the results of this House roll-call vote here. The reason I think Rep. Velazquez’s nay vote is noteworthy is because she is Chairwoman of the House Small Business Committee. Here is what Nydia Velazquez and Jeb Hensarling said on the House floor.

nvphoto   Today, small firms face different challenges than in the past. As a result, there will be different solutions. The policies that we adopt today must be carefully crafted to meet entrepreneurs’s current needs. Unfortunately, the legislation we are considering today do not provide the protections that we need to make sure that small businesses have access to affordable capital.

Now, more than ever, we need to make sure that the environment is conducive to the success of both new and established businesses. For some, this means reducing the regulatory burden or providing tax relief. For others, it requires greater access to affordable capital or entrepreneurial assistance. Most important, we must get this mix right and avoid enacting policies that do not meet entrepreneurs’ needs.

Whatever policies we choose, whether it be the legislation under consideration today or future proposals, it is crucial that we continue to embrace the power of our Nation’s small businesses. Doing so will create badly needed jobs in the short term, while laying the framework for a long-term, sustainable period of growth.

Photo of Hensarling  Now, I know that the authors of this bill have called it SBLF, but to many of us it reads like T-A-R-P. This is TARP pure and simple. It is the capital purchase program under a different name. I will admit they have added an incentive to lend; but again, to lend to whom? Whatever this bill does theoretically to help small business, they take it away. They take it away, Madam Speaker, with the cost and uncertainty of their health care bill. They take it away with the cost and uncertainty of their financial regulatory bill. They take it away with the cost and the uncertainty that is threatened through the national energy tax that is known as cap-and-trade, and certainly from the national debt that all small business people sooner or later are going to be called upon to pay.

So whatever pennies they are trying to drop into the small business coffer today, they are going to take away dollars and dollars and dollars, which is one of the reasons, Madam Speaker, under this President and this Congress, we continue to be mired in almost double-digit unemployment 16 months in a row–worst in a generation–with no hope in sight. And this, again, is more of the same–more spending, more TARP, more of the failed policies that have brought us the unemployment and misery that we see today.

If you want to help small business, the first thing you can do is to ensure that you do not increase their taxes by increasing the marginal income tax rate on the top two brackets, which is already being threatened by the Speaker today, which we know in the Joint Committee on Taxation says half of all small business income would be hit by that tax increase.

Reject this bill.

I did not write this diary to blow Nydia a kiss. I wrote it so you can attack any of the D candidates that try and promote as a good thing their vote for SBLF. You can ask them the same questions I put to Mary Landrieu, and watch them stutter. Earlier there was a front pager noting how RedState is a winner in the 2010 election cycle. On the right side of the graphic it showed some TARP voters who were among the losers in this same cycle. We need to remain vigilant and remind the voters what actions and votes have taken place by supporters of Obama, Pelosi, and Reid.

Cross-posted at The Minority Report