By Sen. Jim Butterworth
There is no greater boost to our economy than giving small business the room and flexibility they need to grow, expand and manage their business. Earning and spending money in the state will ensure that small businesses, the foundation of Georgia’s economy, keep growing and remain afloat in a troubled economy. The state legislature is proactively fighting for small businesses that are unfairly treated in this economy. I sponsored House Bill 926 (HB 926) in the Senate as a small win in our ultimate battle.
HB 926, simply put, allows state banks to renew loans in good standing. The economy, declining property values, and other loan losses have caused locally owned, reliable businesses, in good standing with their bank, to have trouble renewing their loans. This forces them to look for another credit lender in a very bad market.
How can we punish people for doing the right thing? It goes against everything we were raised to believe. I sponsored this legislation because it puts a stop to punishing good customers for living in a bad economy and allow borrowers that have made all their payments on time, even if the market value of the asset has declined, to renew their loan and continue day to day operation. Customers benefit by not having to search for another lender and banks benefit by keeping healthy lending relationships.
This bill passed with overwhelming support in the House. It received unanimous support in the Senate Banking Committee as well as on the Senate Floor. It was the first piece of legislation to get to the governor’s desk and obtain his signature this year. It became law immediately.
So, what results can we expect to see because of this legislation? Experts predict that private citizens, real estate developers, large borrowers and state banks will benefit – all entities that need every economic boost available, especially in Northeast Georgia, especially in this economy.
Small businesses are at the very core of our economy. Our corner of the state is composed of small, family-run, locally owned businesses that benefit from legislation like HB 926. I was proud to carry this bill, the first bill signed by the governor this session, in the Senate and be part of the process that produces helpful legislation for the betterment of Georgia.
If you have any comments, concerns or would like your voice heard, please feel free to contact me anytime. If you need contact information you can go to the Georgia General Assembly website or simply send an e-mail to jim@jimbutterworth.net.
Sen. Jim Butterworth represents the 50th Senate District which includes Towns, Rabun, Habersham, Stephens, Banks, Franklin, and Hart counties along with a portion of White County. He can be reached by phone at 404.463.5257 or by email at jim.butterworth@senate.ga.gov.
COLUMN
For Immediate Release:
February 15, 2010
For Information Contact:
Raegan Weber, Director
Katie Wright, Communications Associate
katie.wright@senate.ga.gov
404.656.0028