For Immediate Release:

December 7, 2009

Contact:

Erikka Knuti, 202-228-6317

A press release from the office of U.S. Sen. Amy Klobuchar, DFL-Minn.:

WASHINGTON -– In a letter to President Obama, U.S. Senator Amy Klobuchar today called for a focus on small businesses to be included in the Administration’s job proposals. In her letter, Klobuchar requested a targeted lending program that would provide up to $50 billion to increase the flow of credit to small businesses and provide additional resources to help small businesses expand into new markets and export their products overseas.

“The American economy won’t recover until our small businesses recover,” said Klobuchar. “Small businesses are the engines that drive job creation in this country. Opening up credit and expanding into new markets will spur economic growth and strengthen our economy.”

The letter calls for consideration of a proposal which creates a loan pool for small business lending through a combination of TARP funds and private sector investment. Klobuchar recently chaired a Joint Economic Committee hearing and pushed for the idea with Treasury Secretary Tim Geithner.

Klobuchar’s letter also encouraged the promotion of small business exports through restoring the staff at the U.S. Commercial Service and removing other regulatory and financial hurdles that impede small businesses’ ability to export overseas. The U.S. Commercial Service consists of Commerce Department officials who help connect U.S. businesses with customers abroad. It has been reduced by more than 200 people over the past five years.

Senator Klobuchar is the Chairman of the Commerce Committee’s Subcommittee on Competitiveness, Innovation and Export Promotion and recently held summits in Minneapolis, Moorhead, and Sioux Falls to talk to businesses about the government’s export promotion resources.

The text of the letter is below:

December 7, 2009

President Barack Obama

The White House

1600 Pennsylvania Avenue

Washington, DC 20500

Dear Mr. President:

As you gather proposals to further stabilize our nation’s economy, I ask that you include a strong focus on small and medium-sized businesses. Small businesses are the engines that drive job creation in this country. Over the past fifteen years, small businesses have created 64 percent of net new jobs nationally and have employed more than 50 percent of American workers.

As a short term measure, I ask that you consider a proposal to establish a targeted lending program that Senator Warner, I, and several other senators recently addressed with National Economic Council Director Larry Summers. This proposal would pool $40 billion in TARP funds and leverage an additional $5 to $10 billion contributed by participating banks. The result would be as much as $50 billion in available credit for small business, enabling them to invest in inventory, employees, or growth.

In the longer term, as Chairman of the Senate Subcommittee on Competitiveness, Innovation and Export Promotion, I know that there is an untapped market out there for small and medium-sized U.S. businesses, particularly those that have never before considered exporting. In fact, more than 95 percent of the worlds’ customers are located outside of the United States.

Access to new markets can make the difference between job growth and stagnation for a small and developing business. However, the workforce at the U.S. Commercial Service – the Commerce Department officials who help connect U.S. businesses with customers abroad – has been reduced by more than 200 people over the past five years. We need to restore full staffing levels at the U.S. Commercial Service and remove other regulatory and financial hurdles that impede small and medium-sized businesses’ ability to export overseas and create jobs here at home.

Sincerely,

Amy Klobuchar

United States Senator