Small business lending still searching for pick-me-up

{mosads}However, she also touted the overall efforts of the SBA, pointing out in her testimony that it helped line up over $30 billion in lending to 60,000 businesses in the last fiscal year — an all-time record for the agency.

But private sector lending is still lagging, and SBA efforts to help by streamlining paperwork have not completely addressed the problem.

“It will take the banks coming back to that area,” Mills said.

She faced several critiques from GOP lawmakers, as they argued that heightened regulations were keeping banks from lending.

“I’m convinced that you’ve heard the same thing most of us have heard from small community banks, that they are suffocating right now,” said Rep. Joe Walsh (R-Ill.). “Their hands are tied.”

Mills also used her appearance to tout the president’s $447 billion jobs proposal. While facing staunch GOP opposition, Mills argued the bill was popular with the small business community, due in large part to an expansion to the payroll tax cut that would lower employers’ tax bills.

“Small businesses are looking for that cash from the payroll tax cut in their pocket,” she said.