With the national unemployment rate at 8.1 percent, the highest in a quarter-century, working families and small businesses need our immediate attention. Our constituents are not immune: California’s unemployment rate already has reached a devastating 10.1 percent, and the tight credit market has crippled the rebuilding of post-Katrina New Orleans.
To keep our economy from spiraling, we must invest in the following three sectors: small businesses crucial to job creation; financial services for families facing foreclosure; and educational opportunities for our youth to promote long-term economic growth. As members of Congress and the Congressional Asian Pacific American Caucus, we believe investing in these key areas is critical to keeping the American dream alive.
{mosads}Small businesses are crucial to our nation’s economic recovery. In our home states of California and Louisiana, small businesses represent over 97.5 percent of all employers, and over 52 percent of private sector employment. In particular, minority businesses have experienced tremendous growth in the past decade and provide economic opportunities that might not otherwise exist in underserved communities. These entrepreneurs, many of whom are immigrants, are contributing to our economies in ways that are often invisible in the public debate. From the Chinese and Indian foreign-born in Silicon Valley who helped drive the technology and engineering sectors, to the Vietnamese shrimpers, among the first to return to the Gulf Coast to rebuild the post-Katrina economy, the entrepreneurial spirit of first-generation immigrants has helped revitalize communities throughout our country.
To help these entrepreneurs create jobs, we supported the fiscal 2009 Omnibus Appropriations Act that included $110 million for Small Business Development Centers to provide free or low-cost management assistance to small businesses and an additional $22.5 million for small-business micro-loans. The legislation also provides close to $30 million for the Minority Business Development Agency (MBDA), which is celebrating its 40th anniversary of creating jobs through minority business development.
Families facing foreclosure also need immediate attention. CNN recently reported that more than 11 percent of all mortgages are either delinquent or close to foreclosure. California tops the chart for the number foreclosure filings, and Louisiana was among the top five in the last quarter with the sharpest increases in loans delinquent 90 days or more. The Center for Responsible Lending recently reported that, nationally, a home is foreclosed every 13 seconds.
To get our economy back on track, we must help our struggling families keep their homes. The omnibus appropriations bill includes $181 million for the Neighborhood Reinvestment Corporation to counsel families at risk of foreclosure. In addition to assisting families facing immediate loss of their homes, preventative measures must be part of a holistic response to the foreclosure crisis. Financial literacy programs that combat predatory lending will be an important part of this response, such as those in Treasury’s Office of Financial Education and those supported by the Community Development Financial Institutions Fund. These programs provide working families with the tools they need to make smart financial decisions.
Achievement gaps at all levels of our education system must be addressed early on. Increased investments in Head Start’s preschool services for low-income children will help establish a level playing field, and Title I grants for elementary and secondary schools will provide more resources to disadvantaged students. The omnibus bill provides boosts to these programs and also expands access to higher education by increasing funding for Pell Grants. This will help 6.9 million low-income families pay for college tuition, and another 1.4 million students will be able to attend college through additional student financial aid programs.
Our nation is facing a tough economic landscape and the hardworking families and small businesses of California and Louisiana are feeling the crunch. At a time of pressing need, Congress must rightly refocus its commitment to domestic priorities.
Honda, D-Calif., is a member of the House Appropriations Committee and chairs the Congressional Asian Pacific American Caucus. Cao, R-La., is an executive board member of the caucus.