April 29, 2005

Denver, CO – Despite the fact that Congresswoman Marilyn Musgrave touts support for small business, her voting record tells a different story.

During this week Republicans in Washington have been spreading pro-business rhetoric, in recognition of Small Business Week. But, that rhetoric seems to be nothing more than empty promises.

Congresswoman Marilyn Musgrave represents the State of Colorado on the Small Business Committee. Colorado’s small business owners rely on Musgrave to ensure legislation is passed that will support small business.

In recent votes, Representative Musgrave showed little regard for protecting Colorado’s entrepreneurs when she voted against providing billions in loans to small businesses and opposed efforts to lower fees to secure capital for investments.

In April 2005, Congresswoman Musgrave voted against an amendment offered by Representative Melissa Bean, D-Ill, to restore $79 million in cuts by the Bush Administration to the 7(a) loan program.

The 7(a) loan program provides 30 percent of all long-term small business loans. It is estimated that the $79 million cut to this program will equate to a reduction of $20 billion in loans to small businesses. Banks will not receive the same incentive for loaning money to small businesses that they received in the past.

“The 7(a) loan program is important to many small business owners in the State of Colorado,” said Pat Waak, Chair of the Colorado Democratic Party. “In 2004 alone over 1,575 Coloradoans received funds for their businesses from the 7(a) loan program. I would hope Musgrave would consider the importance of small business in the state when voting in committee on these important issues.”

Additionally, in March of 2005, Congresswoman Musgrave voted against an amendment to the Job Training Improvement Act that would have allowed small businesses to offset new fees imposed on the Small Business Administration’s 7(a) loan program.

These higher fees hinder opportunities for small business owners in Colorado. Fees for start-up loans have increased anywhere from $1,500 to $3,000 under the Bush Administration. Considering that there are over 480,000 small businesses in Colorado these fees impact many businesses in the state.

“Democrats understand the important role small business has on both our state economy and our national economy,” said Waak. “We will continue to advocate for the support of small businesses in our communities and in our national policies.”

Congresswoman Marilyn Musgrave must decide whether she is a friend or foe to small business. It is clear from her recent votes in the Small Business Committee that she is not fighting for small businesses in Colorado.