by Congressman Rick Larsen
Rebuilding our economy is job number one. That means creating jobs, supporting small businesses and putting in place commonsense rules to protect consumers. Last week, Congress and the Obama Administration took action to help small businesses succeed and to help consumers get a fair deal from their credit card company and a fair mortgage on their home.
Help for small businesses
As I have met with constituents in Arlington and across the 2nd Congressional District, I have heard from many local business owners who are struggling to get the capital they need to succeed and create jobs.
Help is on the way. If you own a small business or are looking to start one, you may be eligible for a loan from the Small Business Administration (SBA). President Obama’s recovery plan increases credit for small businesses, temporarily eliminates fees on SBA-backed loans, raises SBA’s guarantee percentage on some loans to 90 percent, and creates a new loan program to help small businesses meet existing debt payments.
Thanks to a temporary rule change announced by the Obama Administration to help get credit flowing, as many as 70,000 more small businesses could now be eligible for SBA 7(a) loans. This change could help 300 businesses in the 2nd Congressional District, including auto and RV dealerships and auto industry suppliers, succeed and sustain 4,000 local jobs, according to Tom Dorr with Western Washington University’s Center for Economic Vitality.
To help local small businesses connect with available resources, my staff will host a small business workshop in the 2nd Congressional District during the month of June. If you are interested in participating, please email rsvp.larsen@mail.house.gov or call my Everett office at 425-252-3188 or 800-562-1385. You can also visit the SBA’s website at http://www.sba.gov/recovery/information/index.html for more information about help for small businesses.
The Credit Cardholder Bill of Rights
Consumers who play by the rules deserve to be treated fairly by their credit card companies. That is why I voted to put in place common-sense rules to ban unfair practices and protect consumers. I am pleased that the Credit Cardholder’s Bill of Rights passed the House with bipartisan support.
The Credit Cardholders’ Bill of Rights protects cardholders against arbitrary and retroactive interest rate increases, empowers them to set limits on their credit, and requires card companies to fairly credit and allocate payments. It also bans companies from charging fees just to pay a bill by phone, charging over-the-limit fees unless a consumer opts-in in advance, and issuing credit cards to minors.
This important bill needs to pass the Senate before it can be signed into law. With more American families struggling to make ends meet, consumers who are working hard to pay off their debt deserve a fair deal.
Fair mortgages for homeowners
Action is needed to prevent predatory lending and help ensure fair mortgages for homeowners. This quarter, three times as many homes in Snohomish County are in foreclosure compared to just two years ago. Foreclosure rates across the country have reached the highest level in 25 years.
That is why I voted for the Mortgage Reform and Anti-Predatory Lending Act, legislation to help ensure fair mortgages for homeowners and ban industry practices that have fueled to the boom in subprime lending. This bill passed the House on May 7, and must pass the Senate before it can become law.
The Mortgage Reform and Anti-Predatory Lending Act bans mortgage lenders from steering borrowers into higher cost loans and creates a simple standard for all home loans: institutions must ensure that borrowers can repay the loans they are sold. For mortgage refinancings, the bill requires that all loans provide a real benefit to the consumer. And for the first time ever, the secondary mortgage market would be held accountable for meeting these standards when they buy loans and turn them into securities.
Help for small businesses, a credit cardholder bill of rights, and common-sense mortgage reform: three important steps to strengthen our economy and help prevent a crisis like the current one from ever happening again. Please visit www.house.gov/larsen for more information about economic recovery and to share your thoughts. I appreciate hearing from you.
