Monday, February 04, 2008

Bush Budget a Bust for America's 27 Million Small Businesses

Today, Sen. John Kerry [D-Mass.] said the president's proposed budget cuts critical small-business programs and falls short of repairing the deep cuts to the agency over the last seven years. Excluding disaster loan funding, the proposed budget for next year represents a 28 percent cut for the Small Business Administration [SBA] since President Bush took over in 2001 – the largest cut of all the federal agencies – and a three percent cut from 2008 appropriations. The president's request of $657 million, including disaster loan program funds, for the SBA is only 0.02 percent of the entire $3.1 trillion budget.

"Unfortunately, this budget is more of the same from the Bush administration for America’s 27 million small businesses," said Kerry, chairman of the Committee on Small Business and Entrepreneurship. "The Bush budget fails to provide the critical investment to finance startups and grow existing businesses.

"Last year, nearly 900,000 jobs were created or retained due to government-backed loans and venture-capital deals to small businesses. But we’re already seeing these loans on the decline this year as a result of the mortgage crisis, so we need to do everything we can to boost these programs. This is not the time to be making cuts."

Once again, the Bush administration proposes no funding for small-business loan programs, and deeply cuts counseling and outreach programs; e.g., Small Business Development Centers [SBDCs], Women's Business Centers [WBCs], and technical assistance programs.

"The significant proposed cuts to business counseling programs will have a detrimental impact on our ability to help small businesses succeed," Kerry noted. "I will work with my colleagues in a bipartisan way to reverse the severe Bush administration cuts -- just as the Democratic-led Congress did last year, when we restored $40 million to core small-business programs."

Specifically, the proposed 2009 budget:

* Lacks funding for loans and venture capital programs. The budget yet again provides no funding for the SBA’s largest loan programs – 7[a] and 504 – and provides no increase in the authority to back new loans. The president has recommended a program level of $17.5 billion for 7[a] loans, and $7.5 billion for the 504 program — the same as his last two budget proposals. There is no money for the Small Business Investment Company [SBIC] debenture program, and the president has recommended the same program level of $3 billion for the last six years. Last year, nearly 100,000 businesses received 7[a] loans -- a $14 billion investment in the economy, which created or retained over 624,000 jobs. Nearly 200,000 jobs were created or retained from the 504 loan program, which lent nearly 11,000 small businesses more than $6 billion in loans. The SBIC program helped create or retain almost 63,000 jobs in 2007.

* Eliminates all funding for the Microloan Program and Microloan Technical Assistance. This year’s proposed budget increases the program level for the microloan program from $21 million to $25 million, but doesn’t fund it. It continues shifting the cost to the lenders. This is the second consecutive year that the president has made this proposal; for the previous three consecutive years, he sought to eliminate the SBA’s microloan program altogether. Microloans proportionately help more women and minorities than other programs. The proposal also eliminates the counseling assistance program, Microloan Technical Assistance, which is essential to help microentrepreneurs succeed and repay their loans. Last year, 2,437 small businesses received more than $31 million in microloans nationwide.

* Eliminates low-income capital program. President Bush requested no new funding for the New Markets Venture Capital program.

* Cuts funding for key counseling programs. The President's budget proposal makes significant cuts to grants for Small Business Development Centers and Women's Business Centers, reducing their proposed budgets by $10 million and more than $1 million, respectively. Over the last seven years, SBDCs and WBCs have essentially been flat-funded, which equals real cuts for these centers due to their funding level not keeping up with inflation. In addition, with the elimination of the Microloan Technical Assistance program, the president proposes that SBDCs and WBCs would pick up the slack, despite already reduced funding. Last year, SBDCs assisted 600,665 businesses, and WBCs assisted 147,000 businesses. The Program for Investment in Micro-entrepreneurs [PRIME], which provides counseling to low-income entrepreneurs, has also been eliminated.

* Provides no new funding for Procurement Center Representatives [PCRs]. The proposed budget provides no new funding to hire additional PCRs. Currently there are about 57 PCRs -- although only around 30 have full-time PCR duties -- to monitor contract bundling and breakout contracts for small firms. This falls far short of the 100 PCRs that Congress has been calling for to oversee nearly $400 billion in federal contracts.

* Cuts funding for critical assistance programs, and eliminates line-item transparency. President Bush continues to propose cuts to funding for the 7[j], HUBZone and Native American outreach programs, as well as roll the funding into the overall agency operating budget. This reduces transparency and creates uncertainty as to how much funding the programs will receive.

GoodBiz113's take: While President Bush has repeatedly declared his support of small businesses -- most notably, during annual press conferences kicking off April's National Small Business Week -- his actions don't support his spirited words. America's 27 million small businesses are fortunate to have Sen. Kerry advocating for us in a bipartisan manner, and for holding the Bush administration accountable for the deleterious ramifications of its truly unfortunate funding choices.

SOURCES: U.S. Senate Committee on Small Business and Entrepreneurship, U.S. Small Business Administration

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Saturday, February 02, 2008

Taste of the NFL XVII to Be Broadcast on Martha Stewart Living Radio; Nick Lachey Emcees

"To address the needs of the hungry and homeless by raising awareness and money through special events and programs." -- Taste of the NFL mission statement

Tonight, on the eve of Super Bowl XLII, thousands of good-hearted and fun- and football-loving folks will gather at the Phoenix Convention Center to nosh on some of the nation's finest food, sip great wines, and rub elbows with NFL players past and present. The charitable event is Taste of the NFL XVII, and could very well raise a half-million dollars to help tackle hunger in Arizona -- where food banks were first conceived some 40-plus years ago -- and in communities throughout the U.S.

Last year at this time, GoodBiz113 introduced its readers to Taste of the NFL [TNFL], a quintessential win-win-win fundraising initiative that kicked off in 1992, when Minnesota's Twin Cities hosted Super Bowl XXVI ["Cuisine Concepts at Heart of Taste of the NFL -- AKA 'Super Bowl Party...With a Purpose' -- to Tackle Hunger in America"]. Via its annual Super Bowl Eve event, plus local team-sponsored food- and wine-tasting events featuring top chefs and libations, TNFL has raised a total of $6.8 million for hunger-related charities in NFL cities from coast to coast.

Since publishing our first GoodBiz113 small-biz profile of Cuisine Concepts, TNFL has raised approximately $1.3 million -- including $200,000 for Daily Bread Food Bank of South Florida, where Super Bowl XLI was held. During the year, nearly $1.1 million was raised at eight local TNFL events hosted by the New York Jets, Dallas Cowboys, Jacksonville Jaguars, Cleveland Browns, Cincinnati Bengals, Minnesota Vikings and the St. Louis Rams.

In fact, TNFL's most recent newcomer -- none other than the New York Giants, this season's NFC champions -- contributed $70,000 raised from its very first gala to the ShopRite Partners in Caring Fund, a nonprofit program that helps feed hungry kids and adults throughout the New York metropolitan area. How's that for great karma?!

Among this year's recipients of TNFL/Super Bowl-related monies raised -- e.g., via ticket sales, auction items, purchases from the online TNFL Store:
* St. Mary's Food Bank Alliance
* United Food Bank
* America's Second Harvest
* Community Kitchen
* The Campus Kitchens Project
* Food Research & Action Center

Kostroski Recruits Top Chefs, Scores Celebrity Coups
Each year, Wayne Kostroski [pictured], co-founder of Cuisine Concepts, and founder and executive director of Taste of the NFL [AKA Hunger Related Events], recruits chefs from the leading restaurants in TNFL host cities to come to the Super Bowl and collaborate for the season's premier fundraising event. TNFL covers each chef's airfare and lodging, and they show up -- ready and rarin' to prepare and serve their signature dishes to some 3,000 guests, each of whom has paid $500 to $600 per ticket. [Corporate tables for 10 are priced at $5,000.]

"Tickets to our annual event have been sold on eBay for as much as $2,000," Kostroski told GoodBiz113. "Besides the Super Bowl, of course, it's always the hottest ticket in town."

Since we interviewed him last year, the effervescent restaurateur/altruist/sought-after speaker has scored some major coups. Besides adding the New York Giants to TNFL's calendar of local events, he also won several months' worth of free publicity from the far-reaching likes of Martha Stewart Living Radio, SIRIUS channel 112.

Starting last November, Martha Stewart Living Radio has broadcast twice-weekly interviews with chefs, each of whom discusses his or her signature TNFL dish, takes calls from listeners, and shares colorful anecdotes about their favorite NFL players and hometown teams. This evening, the program will broadcast live from TNFL.

"Martha Stewart Living Radio also ran a 'Recipe Bowl' contest, in conjunction with," beamed Kostroski. "The winner was a woman from Henderson, Nev., whose husband happens to be a high-school football coach. They both get free airfare, lodging, meals and tickets to prime Super Bowl seats. Plus, she gets to cook with one of the sous chefs participating in Taste of the NFL."

Tonight's gala event showcases great wine from Gallo, dishes prepared by chefs from 36 restaurants in all 32 NFL cities, and TNFL and Pro Bowl events. Guests will also get to sample dishes from seven hand-selected "Flavor of the Valley" restaurants that represent some of the best cuisine in the Phoenix/Scottsdale region:
* Cowboy Ciao
* Furio
* Michael's Catering
* Tradiciones
* Roaring Fork
* Eddie V's Edgewater Grille
* Wildfish Seafood Grille

Following dinner, pop star/actor/sports team owner Nick Lachey will emcee auction-related events -- including the presentation of checks to St. Mary's Food Alliance, and United Food Bank. He'll also introduce the evening's entertainment: 1970s rock band, Cheap Trick.

TNFL Serves Up Camaraderie, Not Competition
The food-service industry is rife with seering competition. Refreshingly, TNFL is a bastion of cooperation -- in the kitchen, at the serving tables and behind the scenes.

"You wouldn't believe the camaraderie among our chefs," said Kostroski. "Before Taste of the NFL, we have a Friday night huddle for NFL players, their spouses/partners and the chefs. We present awards to those who have contributed their talents and time to their communities, and do some other fun and special things, too."

After Hurricane Katrina, several New Orleans restaurants closed their doors forever. Not the French Quarter's Bayona Restaurant, whose star chef and co-founder, Susan Spicer, has been a loyal team player since TNFL's early years. To help see Spicer and her displaced employees through the disastrous post-Katrina days, weeks and months, the TNFL "family" took up a collection and sent her a check for nearly $9,000.

"The bottom line to me, in life, is that most people will step up, when asked, to do what they do best," Kostroski noted. "Taste of the NFL reminds people to check your pulse to see how you're feeling, and then to consider what you can do to help others -- whether you're a chef, plumber, electrician, whatever."

On March 6, Kostroski is a featured speaker in the prestigious "Meet The Culinary Entrepreneurs" lecture series, sponsored by New York's Institute of Culinary Education [ICE®]. What will his message be to the ICE® audience of would-be restaurateurs? "To engage people of all talents and backgrounds in order to serve the greater good," he replied.

"Taste of the NFL is another way to be inclusive," Kostroski added. "If someone wants to help us tackle hunger by driving a truck or delivering stuff on a Schwinn, we'll figure it out... Once they come on board, though, we've got 'em forever."

To become involved in TNFL -- as a restaurateur, chef, volunteer, sponsor, etc. -- contact Wayne Kostroski. Phone: 952.926.7478; E-mail:

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