Businesses of all sizes have been battered by the recession, but small businesses—the engines of economic growth—have been especially hard hit. They've faced a double whammy—a huge reduction in business due to the recession and severely restricted access to credit due to the banking crisis.

Affordable and abundant credit is the lifeblood of all businesses, but credit is especially important to small businesses that have fewer financing options than larger companies. That's why the U.S. Chamber has made helping small businesses obtain credit and stay afloat during these difficult times a top priority. Last week, the Obama administration proved it was listening and took a major step in the right direction.
 
The White House announced plans to reduce the Small Business Administration's (SBA's) 7(a) and 504 lender and user fees, which will incentivize banks to lend and make funds more affordable for small businesses  to borrow. The administration  also called for an increase in  the government-guaranteed percentage of the SBA 7(a) loans and changes that would allow banks to more easily sell the guaranteed portion of the SBA 7(a) and 504 loans on the secondary markets. Finally, banks will be required to meet new reporting requirements to help monitor lending to small businesses.

Along with a provision in the stimulus bill that will allow small businesses to carry back their losses over the last five tax years (effectively, a tax refund), this proposal amounts to a mini-stimulus package for small business owners.

While we applaud the administration's plan to get credit back in the hands of small businesses, it's also important that it not implement policies that will hurt them. Raising taxes would be a huge mistake. The proposed increase of marginal tax rates for those earning more than $250,000 a year would adversely impact many small firms, as $2 out of every $3 dollars in small business profits is taxed at the individual household level.

Saddling small businesses with an expensive health care mandate and more burdensome workplace regulations will only delay economic recovery and undermine our nation's long-term growth.

Small businesses need credit to meet payroll, purchase supplies, hire workers, and—in a deep recession—to simply keep the lights on. Don't forget, small businesses employ approximately half of all private sector workers and generate 60% to 80% of net new job growth. Investing in these companies is a down payment toward economic recovery and a brighter future for America.