The U.S. House of Representatives has approved legislation that will bolster funding for small business services at the Small Business Administration (SBA).

Rep. Nydia M. Velázquez (D-N.Y.), the chairwoman of the House Committee on Small Business, said the funding, which was increased as part of Congress' omnibus appropriations bill for fiscal year 2009, represents a significant investment in small businesses at a time when they most need help. 

"Small businesses will be key to putting our nation back on a path to prosperity," Velázquez said. "The funding in this bill means more fledgling firms will receive counseling to build successful business plans, more budding entrepreneurs will have access to microloans, and more Americans who want to start their own businesses will be able to do so."

The legislation increases funding for small business counseling services. For instance, Small Business Development Centers (SBDCs) help individuals and small businesses through a national network of easily accessible branch locations. The bill provides $110 million for SBDCs, up from the $97.2 million that Congress approved for the previous fiscal year.

"Entrepreneurs that take advantage of Entrepreneurial Development Programs, like Small Business Development Centers, are twice as likely to succeed," Velázquez said. "The increased funding for SBDCs means more counseling and technical assistance for small businesses, a greater chance of success and, ultimately, the creation of more jobs."

Velázquez said the legislation would also make credit more available to the nation's smallest businesses by expanding funding for the SBA's microloan program, which provides funding for small loans used by newly established or growing small businesses.  The legislation provides a 25-percent increase in funding for the program, which is expected to generate $25 million in loans for small enterprises.

"Historically, after recessions, many Americans who have lost their jobs go into business for themselves," Velázquez said. "This increased funding for the SBA microloan program will provide an opportunity for new entrepreneurs to get off the ground and get credit to self-employed individuals who are looking to expand."

The bill appropriates $1 million for a new Small Business Development Center entrepreneurship pilot program that provides counseling and assistance to veterans of military service who return home to become entrepreneurs. The legislation boosts funding for Veterans Business Outreach Centers (VBOCs).

"When our nation's heroes return from serving in Iraq and Afghanistan and reenter civilian life, many of them will want to start their own businesses," Velázquez said. "These programs give them the tools to do so."

The legislation now heads to the US. Senate for consideration. Former President George W. Bush had threatened to veto the additional SBA funding. President Barack Obama has indicated he will approve it.