The Kennebec Journal

WASHINGTON

July 30

Snowe rips Democrats for delaying lending plan for small business

She then joins Republicans in voting to stall the legislation

By Rebekah Metzler rmetzler@mainetoday.com
MaineToday Media State House Writer

AUGUSTA -- U.S. Sen. Olympia Snowe blasted Democratic leadership on the Senate floor Thursday, accusing them of delaying a small business lending package just to score political points.

Snowe then voted with fellow Republicans to stall the legislation.

As the top Republican on the Senate Small Business and Entrepreneurship Committee, Snowe helped write much of the legislation, H.R. 5297, a version of which has already been passed by the U.S. House of Representatives.

In a 13-minute floor speech, Snowe chided Democrats for dawdling on the bill and then trying to "ram it" through before the August recess, thereby scoring political points by painting the Republicans as obstructionist.

"Why don't we take as long as it requires to do what's right to try to get the best policy to create jobs in America instead of facing this figurative legislative brick wall that's artificially contrived?" Snowe said. "It's all political theater; it's not about legislating anymore."

"I've walked across the political aisle here; I wish more would do it on both sides -- look at the policy and see what's right and what works. The American people know. They know it. They can see through this masquerade," she said.

The Senate version of the bill would provide more than $10 billion in tax breaks for small businesses, an extension of U.S. Small Business Administration guaranteed lending, regulatory reform to help make lending easier, as well as a new grant program to support small business exports -- all things Snowe supports.

Maine's senior senator, however, opposes a new $30 billion fund contained in the legislation to ease lending to small businesses through community banks.

Snowe has said she prefers seeing capital become available through existing, vetted SBA programs instead a creating a new, untested program.

Democrats responded to Snowe by saying it was the Republicans who were playing partisan games with the small business measure.

"I do compliment the senator from Maine for standing with us on some very tough votes," said U.S. Sen. Barbara Boxer, D-Calif. on the floor. "But I have to say, she's asking for a bipartisan bill. I have to say of all the bills we've brought up, this is the most bipartisan. I think to make a process argument now is really a shame."

Local bankers and small business leaders both said they support the bill and are hoping Congress can be successful in passing it.

"It seems like the merit of the bill versus the politics of the day have taken two separate distinct paths," said Chris Pinkham, president of the Maine Association of Community Banks.

Pinkham said his group supports the $30 billion fund that Snowe opposes.

"What's different about this, is that it's actually a way to put capital into small banks and allow them to leverage that up and make that available in their community," said Pinkham. "As the economy improves, we think there will be a stronger demand for small business lending and we have no guarantee that there will be deposits in our banks to support that."

Jeanne Hulit, the SBA regional administrator in New England, said the Obama administration supports both the fund and the overall bill.

"We're in favor of passage," she said. "The particular provision that we're very interested in is the extension of the recovery act provision that increased our loan guarantee to 90 percent and eliminated our fees."

Hulit said Snowe has been a strong supporter of the extension of the enhanced SBA loans, which have proven to boost lending to small businesses.

"In Maine, there has been a 92 percent increase in the dollar loans of SBA guarantees in 2009 and also a 57 percent increase in our loan volume over 2008, which was before the credit loan crisis," she said.

Groups such as the U.S. Chamber of Commerce and the National Federation of Independent Businesses also support the bill.

Senate leaders said they would continue to negotiate a compromise and maintained a goal of voting on the measure before they adjourn in about a week's time for their recess.

Rebekah Metzler -- 620-7016

rmetzler@mainetoday.com