CREED Act Update

Senator Shaheen Brings CREED Act to the Senate Floor

Senator Shaheen

WASHINGTON, D.C. – Sen. Jeanne Shaheen (D-N.H.) took to the Senate floor calling on legislators to support American small business owners by turning the bipartisan Commercial Real Estate Economic Development (CREED) Act into law.

“There are many strong and differing opinions in the Senate, but when it comes to providing our nation’s small businesses with affordable financing, we’ve found significant common ground,” said Shaheen. “This legislation is an opportunity to address one of the biggest challenges facing small businesses – getting access to credit so they can live up to their full potential. There is small business demand for this program and both sides of the aisle agree that this is a common sense proposal. The one objection to this legislation comes at the expense of small business growth and job creation.”

Enacting the CREED Act into law would permanently reauthorize the Small Business Administration’s (SBA) 504 refinancing program, specifically providing small business owners access to long-term, fixed-rate loans for purchasing real estate and equipment assets, which in turn, enhances economic growth and job creation.

According to the SBA, the 504 program has been an essential supporter of growth despite a sluggish national economic recovery by helping participating small-business owners create and save more than 66,744 jobs in fiscal year 2014 alone.

“The ability to refinance with the SBA 504 loan will allow thousands of small businesses to lower interest payments so that they can use that savings to reinvest into their businesses and communities,” said Barbara A. Vohryzek, President and CEO of the National Association of Development Companies (NADCO). “I urge any objecting senator to allow this bipartisan, no cost bill to advance immediately.”

An advocacy and trade association of largely nonprofit lenders, NADCO, and its nearly 240 certified development company (CDC) members in all 50 states, collaborate with the SBA to help entrepreneurs and small business owners create jobs, expand their businesses and improve economic development in their communities and regions using the 504 lending program.