U.S. Rep. Kathy Dahlkemper, D-3rd, said legislation she has introduced will make it easier for small businesses to get loans.

She spoke Thursday at a news conference at the office of the Community Development Corporation of Butler County.

Dahlkemper outlined changes to the Small Business Administration's express loans program that will increase the amount businesses can borrow from $350,000 to $1 million per loan, while protecting banks from loan defaulters.

The Express Loans Improvement Act would increase the SBA's loan guarantee from 50 percent to 75 percent during the first two years, with a 60 percent guarantee in subsequent years.

Dahlkemper referred to the economic recession as a "perfect storm" of obstacles that needs small business-friendly legislation to create jobs and to keep a strong economic foundation.

SBA loans account for 40 percent of small business loans nationwide, but only 18,885 businesses took advantage of them last fiscal year, down from 39,877 in fiscal year 2008, Dahlkemper said.

More than 99 percent of private employer firms are small businesses, Dahlkemper said.

Diane Sheets, executive director of the CDC, hopes the legislation will move forward in Congress.

Sheets said 60 percent of Butler County employers have four or fewer workers, and 98 percent of county businesses have fewer than 100 employees.

Sheets said 80 percent of local economic growth comes from existing businesses.

"It is important to foster small businesses so they can grow," Sheets said.

The new legislation will help Butler entrepreneurs who create jobs, she said.

Cynthia Closkey, president of Big Big Design, a Butler company that specializes in Web site design and social media programs, said access to capital is critical to the survival of businesses like hers. For small businesses, capital means loans, Closkey said.

"SBA programs need to change with the times," Closkey said.

The updated express loans will be versatile and will allow banks to use their own paperwork, which translates to less government involvement and a faster turnaround for approval, Dahlkemper said.

The changes proposed in this legislation are similar to changes made earlier this year that caused a 79 percent increase in weekly loan volumes for two of the SBA's loan programs, according to a news release.

The congresswoman expects bipartisan support in passing the legislation.

Endorsing the Express Loans Improvement Act are the U.S. Chamber of Commerce, The American Small Business League, the Independent Community Bankers of America, the National Association of Government Guaranteed Lenders, Small Business Council of America, and the American Bankers Association, according to a news release.

There are 50 co-sponsors of the legislation, six of whom are Republicans. Of those six, three are from Pennsylvania, including Glenn Thompson, R-5th, who is a member of the House Small Business Committee from Howard Township, Centre County.

On another topic, Dahlkemper said much of the initial hostility has subsided in reaction to the recently passed federal health care reform act.

Her offices have received fewer threats in the weeks since the controversial bill passed.

Many of the threats she received have been turned over to the FBI, who will look for patterns among individuals who made the calls, Dahlkemper said.

The congresswoman also expects a congressional hearing regarding mine safety in light of this week's mine tragedy in West Virginia, but she has not yet heard as to when that might be.