Laserfiche WebLink
<br /> Page 2 <br /> *The SIDB program is now targeted to smaller manufacturers. Small <br /> manufactuJ¡'ing accounted for 87% of manufacturing jobs growth from <br /> 1976-82 and produced a disproportionately high level of product <br /> innovations. The manufacturing sector has traditionally been the <br /> mainstay of America's economic growth. <br /> *The SIDB program helps small businesses remain competitive in the <br /> international economy. High costs of capital and foreign government <br /> subsidies have made small businesses particularly vulnerable to foreign <br /> competition. SIDBs help American businesses hold their own in the <br /> world marketplace. <br /> *Volume limitations imposed on SIDBs have ~reat1y reduced federal <br /> tax expenditures while fostering better allocation decisions for <br /> tax-exempt finance. The volume of newly issued SIDBs has fallen from a <br /> peak of $17.3 billion in 1984 to less than $3 billion in 1988. <br /> *IDBs enable small business to obtain capital at rates competitive <br /> with those charged to large corporations. Without SIDBs small <br /> borrowers commonly must pay as much as two percentage points more than <br /> the prime rate for financing. <br /> *Targeting to manufacturing firms has effectively eliminated any <br /> remaining abuses in the program by channeling investment directly to <br /> projects representing economic growth potential. <br /> <br /> *The SIDB pro¡ram. which operates with no direct federal <br /> expenditures. offers a low-cost and efficient means of providing <br /> federal support for a growth sector of the economy. The SIDB state and <br /> local issuing system is already .in place and can provide a quick <br /> infusion of low-cost capital during a time of economic downturn. <br />