Legislation Will Grow Renewable Energy Industry, Cut Red Tape for New Investment
WASHINGTON, D.C. - In these tough economic times, many small businesses are struggling to acquire the financial resources they need to succeed and grow. Representative Ann Kirkpatrick, a member of the House Small Business Committee, is working hard to help them during the downturn and has introduced a bill to make it easier for them to access investment capital. A hearing was held today on H.R. 3722, which will reform two critical Small Business Administration (SBA) programs to more effectively serve our entrepreneurs.
The Congresswoman has made developing our renewable energy economy a key part of her recovery efforts, and she has included measures in the bill to encourage small businesses in this growing field. The Renewable Energy Capital Initiative will free up investment dollars for clean energy entrepreneurs through grants to private investment firms and guaranteeing loans those firms make. H.R 3722 will expand the program, helping small businesses get ahead in the industry at a time when it has huge potential for expansion.
"Arizona can be a world leader in renewable energy, and with projects like the Dry Lake wind farm we are already seeing its benefits for our communities," said Rep. Kirkpatrick. "Providing new opportunities for small business entrepreneurs in this field will re-energize our economy and create jobs in the state for years to come."
Companies like Southwest Windpower and Northern Arizona Wind and Sun are among those in Arizona that could gain from a stronger Renewable Energy Capital Initiative.
Rep. Kirkpatrick's legislation will also drive financial resources to areas where economic development where it is needed most. The New Markets Venture Capital Initiative provides grants to private investment companies working in low-income areas. While it has had notable successes, applications to participate in the program are often caught up in red tape. This bill will help speed up the application process and provide starter funds while the firms are awaiting final approval.
This would address obstacles like those faced by Arizona's Southwest Development Fund. In 2001, the fund filed the paperwork to be a New Market Venture Capital company and received conditional approval from the SBA. But final approval was not obtained before the agency's deadline expired, and as a result a promising source of investment dollars for Arizona businesses never got off the ground.
"People in my district are working hard to make ends meet, and we need the economic engine that small businesses provide to get folks back to work," said Rep. Kirkpatrick. "We cannot allow Washington bureaucracy to stand in the way of economic recovery.
"By streamlining the process, we can be sure that we use our resources effectively instead of letting them get lost in the system. This will bring jobs to communities hit hard by the downturn sooner rather than later."
H.R. 3722 has been approved by the Small Business Subcommittee on Finance and Tax and will next be considered by the Committee.
Rep. Kirkpatrick has been a leader in helping small businesses thrive even as they weather the economic downturn. She introduced a bill to increase the assistance available to Native American small business owners, which passed the House as part of the Job Creation Through Entrepreneurship Act. The Congresswoman is also co-sponsoring the nonpartisan Small Business Formation and Job Creation Act, which will cut taxes on small business start-ups to make it easier for them to succeed.
Contact:
Joe Katz, (202) 225-2315
Kyle McNally, (520) 437-9478
