velazquez: mr. chairman, i yield myself such time as i may consume. the chair: the gentlelady is recognized. ms. velazquez: and i want to use this time to respond to those who are making the assessment that this money, that there is no safeguards in this legislation to make sure that the money goes to small businesses. first, banks must apply to the treasury to receive funds with a detailed plan on how to increase small business lending at their institution. this language was included at my insistence that we need to make sure that small businesses will get the benefit of this legislation. second, this capital, repayment of the government loans will be at a deepening rate starting at 5% per year. this rate will be lowered by 1% for every 2.5% increase in small business lending over 2010 levels. -- 2009 levels. it can go to 1% if the bank increases its business lending by 10% or more, incentivizing banks to do the right thing, to ensure that banks actually use the federal funding they receive, the ra

velazquez velazquez thank you, madam chair -- ms. velazquez: thank you, madam chair. american small businesses have always tightened economic fields and sectors. today small businesses continue to be some of our most creative innovators. as our nation shifts away from fossil fuels and seeks clean resources of energy, entrepreneurs are leading the way. today small businesses, 90% of those companies operating in the renewable and energy efficiency industries. small firms are also making important contributions in the arm sciences and biomess sid -- biomedicine. technologies used in our nation's national defense are also being advanced by small businesses. components of the predator drone, for instance, were developed by small firms. and small businesses are helping develop new information technology and digital media services that better connect our world. the united states must continue to lead in all these areas if our economy's to remain strong in the long-term. this type of innovation creates good-paying, highly skilled jobs. however, before this business can develo

velazquez: thank you, mr. chairman, small businesses which rely on 99.7% are the key to the recovery of the u.s. economy. so innovation and hard work they are able to not only create jobs but also build the foundation for future growth. we saw this after the desession of the early 1990's and as we emerge from the latest downturn, small firms again will lead the way. these downturns have affected every facet of the global economy. most of the focus has been on repairing the residential housing market and homeowners in particular. it is important to note that these have greatly impacted small businesses as well. through the recovery act, we were able to help them, providing more than $28 billion in assistance through the s.b.a. h.r. 5297 builds on this by establishing additional lending initiatives that will give small businesses even greater financing options. this legislation, mr. chairman, also recognizes that capital markets are changing dramatically. credit standards are stricter and small businesses now ar

velazquez: thank you. i want to thank the gentleman for yielding. mr. chairman, since the financial crisis happened in 2007, much is being done to help banks and financial institutions stay solvent. those steps were necessary. i firmly believe that without them the financial crisis would have deepened. unemployment would have been higher, more americans would have suffered and our economic recovery may have been delayed for many years. despite these efforts, our entrepreneurs are still struggling to tap into the credit that they need. as we look at this problem once more, it's vital that we ensure that the benefits of this bill reach small businesses. that is the intent of this legislation, but without the right safeguards, this would be another attempt that fails to address the underlying problem of small businesses' access to capital. if this measure is not crafted properly, loans that gos to small businesses could -- under the program. so, mr. chairman, i support this amendment. i yield back the balance of my time. the chair: the gentleman from texas

velazquez, said that those of us on this side of the aisle wanted to keep tarp going. let's go back to the record here. i didn't get a chance to respond then. tarp was supposed to expire on december 31, 2009. and there was strong support for allowing tarp to expire. in fact more than 100 of us on this side of the aisle sent a letter to treasury secretary geithner that urged him to let tarp expire. in fact we introduced legislation to force the expiration of tarp. we voted against the majority's legislation to divert tarp funds for other spending. but the treasury secretary extended tarp to this october and the majority did nothing to stop it. just as we are again getting close to having tarp expire, the majority brings up a bill that creates what is essentially a second tarp program and it will last for years. so who wants to keep tarp going? rather than doing something that creates more certainty for small businesses to grow and add jobs to this economy, the majority is repeating the same failed initiatives that helped grow our national debt to over $13 billion -- tri

velazquez: thank you, mr. chairman. i thank the gentleman for yielding. my colleagues, we have spent much of this debate discussing ways to help the banks. but now it is a time that we talk about helping small businesses. the schrader amendment does that by providing entrepreneurs with incentive to expand their business. it does so by giving business owners maximum flexibility to contain those debts, to purchase equipment, hire workers when they need to do so. if we add this amount during the early stages of their recovery, a manufacturer will be able to purchase a new machine, tools it needs, and could hire a few more salesmen. it is absolutely critical to get small businesses off the sidelines and take -- as they create 2/3 of net new jobs over the past 10 years. unfortunately the federal reserve senior office survey continues to report that demand among small firms has decreased. the most recent nfib report also confirms this. only 32% of small business borrowed last quarter which is near the record low. when small business take out loans, there is les

velazquez, messrs. shuler and graves. the speaker pro tempore: for what purpose does the gentlewoman from california rise? ms. waters: mr. speaker, i ask unanimous consent that all members may have five legislative days to revise and extend their remarks on h.r. 5072 and to insert extraneous material thereon. e speaker pro tempore: without objection. pursuant to house resolution 1424 and rule 18, the chair declares the house in the committee of the whole house on the state of the union for the consideration of h.r. 5072. the chair appoints the gentlewoman from illinois, mrs. halvorson, to preside over the committee of the whole. the chair: the house is in the committee of the whole house on the state of the union for the consideration of h.r. 5072 by the clerk will report by title. the clerk: h.r. a bill to improve the financial safety and soundness of the f.h.a. mortgage insurance program. the chair: pursuant to the rule, the bill is considered as read the first time. the gentlewoman from california, ms. waters, and the

velazquez votes aye by proxy. >> the clerk will go to the republicans. >> mr. back as the votes no, mr. royce boats no, mrs. capito boats no, mr. hensheling votes no. mr. barton votes no by proxy, mr. smith the its no proxy. mr. issa boats and no by proxy. >> madame clerk, i have a proxy for mr. schumer and evokes aye by proxy -- and he votes aye by proxy. there are 20 ayes and 11 nays. >> the house send you its approval of a financial reform bill. >> thank you very much, chairman frank and let me thank you on a traffic job. house members will vote on the senate side and all those in favor said aye debate ayes appear to have it. [laughter] i will ask the clerk to call the roll them mr. chairman, aye, mr. johnson aye, mr. reid, aye, mr. schumer aye by proxy. . licoln aye, mr leahy aye, mr. ahrkin aye by proxy, proxycorker no, mr. greg no. the votes are seven ayes, 5 nays, the bill is passed. >> i thank my colleagues immensely. [applause] >> conferees in favor of passage of the bill, i declare the bill passed and a conference committee is now adjourned. [applause

velazquez: mr. chairman, i didn't know that the other side liked tarp so much that you want to keep it going. we have put safeguards, penalties, restrictions, oversight in place. this is another bureaucratic layer that will hinder the myth of small businesses to access capital. mr. frank: what our friends on the other side have for political reasons is a severe case of tarp separation envy. it's going away, they haven't had their president tell us to do it, they're going to miss it. but we're not going to deal with that in this bill. and kill the bill. i hope the recommittle is defeated -- recommital is defeated. the speaker pro tempore: without objection, the previous question is ordered on the motion to recommit. the question is on the motion to recommit. those in favor say aye. those opposed, no. in the opinion of the chair, the noes have it. the gentleman from texas. mr. neugebauer: mr. speaker, i ask for a record vote on tarp 2. the speaker pro tempore: a recorded vote is requested. all those i