Small Businesses Win a Record $97.95 Billion in Federal Prime Contracts

After reviewing the Small Business Administration’s fifth annual Small Business Procurement Scorecard, United States Senate Committee on Small Business and Entrepreneurship Chair Mary L. Landrieu [D-La., pictured] and Ranking Member Olympia J. Snowe [R-Maine] today commented on the federal government’s effort to increase federal contracting opportunities among small businesses.

According to the most recent scorecard, in fiscal year 2010, small businesses won nearly $100 billion in federal prime contracts -- an increase of more than $1 billion from 2009. Small businesses were awarded 22.66 percent of all federal spending in FY2010 -- less than half a percentage point shy of the statutory 23 percent goal.

"Over the course of one year, we saw nearly $100 billion go into the hands of America’s small businesses, and I am pleased to see the ever-increasing role of small businesses in the federal government contracting process," said Sen. Landrieu. "With the passage of the Small Business Jobs Act of 2010 last fall, we put in place ways to significantly improve these numbers, and I hope this report will be the last steppingstone to reaching our small-business contracting goals.

"The report confirmed an overall increase in small-business contracting for the second consecutive year, but the federal government still fell short of meeting their goal in many categories -- including prime contracting awards for women-owned small businesses, service-disabled veteran-owned small business, and Historically Underutilized Business Zones [HUBZones]. We continue to see room for improvement, and I am confident they are on the right track to reaching and surpassing these goals."

"Small businesses are the primary job creators in this country, responsible for more than two-thirds of all new jobs created," noted Sen. Snowe. "At a time when a staggering and seemingly intractable unemployment rate of over nine percent has become the norm -- with 22 million Americans unemployed or underemployed, and when we are experiencing the longest period of long-term unemployment in American history since data collection started in 1948 -- I remain dismayed that, yet again, the federal government has failed to meet its statutory government-wide goal -- not just for small business, but for women, HUBZones, and service-disabled veteran-owned small businesses.

"Reports show that small businesses lost an estimated $2 trillion in profits and asset valuation since the recession started in December 2007, while larger companies have been less affected and are recovering more quickly. Given these statistics, it is all the more paramount that small businesses have the opportunity to contract with federal agencies, and anything other than meeting these goals is simply unacceptable.

"For small firms that are struggling to stay afloat and maintain their workforce, federal contracting can be an instrumental part of a larger strategy for broadening their customer base and creating jobs and, although the numbers have improved, this Administration can, and must, do better."

About SBA's Small Business Procurement Scorecard

The FY2010 Scorecard calculated the amount of federal spending for prime contracting and subcontracting to small businesses for fiscal year 2010 [Oct. 1, 2009-Sept. 30, 2010], and evaluated agencies to ensure these firms remain an integral part of the federal contracting process.

SBA graded 24 agencies on each of the individual prime contracting goals established by Congress, and used an "A+" through "F" letter-grade system.

The federal government scored an overall average of 99.2 percent -- with 99.73 percent prime contracting achievement, and 94.50 percent subcontracting achievement.

Ten agencies’ grades increased from FY 2009, 10 agencies’ grades stayed the same, and four agencies’ grades decreased. The agency breakdown is as follows:
* 13 agencies received an "A"
* Five agencies received a "B"
* Four agencies received a "C"
* Two agencies received a "D"

Overall, SBA Administrator Karen Mills was optimistic about the Scorecard results. "When the federal government gets contracts into the hands of small businesses, it is a 'win-win' situation," she noted. "Small businesses have the opportunity to grow and create jobs, and the federal government gets access to some of the most innovative and nimble entrepreneurs.

"We are proud of the achievement the government has made [in small-business procurement], but are determined that the government will meet and exceed the goal. SBA is focused on a number of key initiatives to help increase small-business contracting opportunities, as well as combat fraud, waste or abuse. These efforts will ensure the benefits of our programs continue to go to the intended recipients."

The SBA's full Small Business Procurement Scorecard can be viewed here: http://1.usa.gov/ScorecardsSBA.

SOURCES: U.S. Senate Committee on Small Business and Entrepreneurship, U.S. Small Business Administration
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Landrieu Urges Participation in New SBA Teaming Pilot Program to Help Stimulate Economic Development

Today, U.S. Senate Committee on Small Business and Entrepreneurship Chair Mary L. Landrieu [D-La., pictured] urged organizations to participate in the Small Business Teaming Pilot Program, established with the enactment of the Small Business Jobs Act of 2010.

"Too often, small businesses are shut out of the federal contracting process," said Sen. Landrieu. "The Teaming Pilot Program will create another lifeline for small-business owners by giving them an avenue to seek guidance and receive answers to business development questions. Through these efforts, we hope to spark a cooperative effort among small businesses to compete for bundled contracts.

"We are reaffirming our commitment to the entrepreneurs of America. Programs, like the Teaming Pilot Program, will help stimulate economic growth and help Main Street businesses expand."

This week, the Small Business Administration [SBA] announced that it is accepting grant applications from eligible and well-established organizations interested in providing technical assistance and resources for small businesses.

According to the SBA, eligible applicants must:

* Be a private, non-profit or for-profit entity
* Have been in existence continually for the past three years
* Have experience dealing with issues relating to small business on a national level
* Demonstrate that it has the capacity to provide assistance to small businesses

With the implementation of this new program, the SBA anticipates awarding 10 to 20 grants in the range of $250,000-$500,000 -- totaling up to $5 million for fiscal year 2011. All applications must be submitted electronically via the government-wide Grants.gov financial assistance portal, http://www.grants.gov/, no later than Feb. 25, 2011.

SOURCE: U.S. Senate Committee on Small Business and Entrepreneurship
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New Jobs Act Helps SBA Put More Capital, Assistance Behind Small-Business Exporting

Export-related loans to small businesses approved under the Jobs Act provisions have reached nearly $110 million as of Dec. 31, the U.S. Small Business Administration announced today.

"The Jobs Act builds on the efforts already underway through the National Export Initiative by providing SBA with additional tools to help small businesses tap into the global market," said SBA Administrator Karen Mills [pictured]. "We know that, to take that next step to begin exporting or expand into a new market, a small business often needs both financial and counseling resources.

"The Jobs Act strengthened SBA’s ability to provide assistance in both those areas by enhancing our export loan programs, and also making counseling and technical assistance more accessible. Already, we’re seeing these tools put to use by small businesses that are in a position to grow and create good-paying jobs in their communities.'

The Jobs Act, signed into law on Sept. 27, 2010, raised SBA 7[a] export-related loan limits to $5 million. SBA helps small-business exporters through three different export loan programs: Export Express, Export Working Capital Loan, and International Trade Loan. The Jobs Act greatly enhances the tools the SBA has to help small-business exporters grow.

The Jobs Act
* Helps provide sufficient capital for small businesses looking to start or expand their exporting efforts. The law increased the maximum size of 7[a] International Trade Loans and Export Working Capital Loans to $5 million -- up from $2 million -- both with 90 percent guaranties.
* Makes the agency’s Export Express loan, which offers a streamlined application process, permanent -- with a 90 percent guaranty for loans up to $350,000, and 75 percent for loans between $350,000 and $500,000.
* Provides $90 million in grants over three years beginning in mid-2011 for states, to help small-business owners start or grow their exporting efforts.
* Makes counseling and technical assistance more accessible by increasing the SBA’s staff and other resources available to small business.

For a list of current SBA export lenders, visit http://bit.ly/ExportLenders.

President Obama has called for doubling the nation’s exports to support creating two million jobs in the next five years. SBA has taken target steps to strengthen its partnership with other federal agencies involved in international trade, creating new tools to help small businesses both begin exporting and grow their exports, and making loans to exporters more accessible.

The National Export Initiative also called for the creation of a new Cabinet-level focus on exports; expanding export financing [which, in part, is fulfilled by the new SBA loan limits]; prioritizing government advocacy on behalf of U.S. exporters; and providing new resources to U.S. businesses seeking to export, among other things.

For more information on export services for small businesses, or to find local counseling and technical assistance resources, please visit http://www.export.gov/.

SOURCE: U.S. Small Business Administration
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IRS Outlines New Tax Incentives Available to Small Businesses in 2010

This week, the Internal Revenue Service [IRS] released the Tax Changes for Small Businesses fact sheet. Last year, the Small Business Jobs Act of 2010, along with the Patient Protection and Affordable Care Act, provided key tax incentives for small businesses and self-employed individuals.

The IRS fact sheet highlights 2010 tax changes and details how taxpayers claim benefits.

"Through reforms in our nation’s troubling health-care system and by providing more than $12 billion in immediate, targeted tax incentives to small businesses, the last two years have been about supporting American’s small businesses," said Sen. Mary L. Landrieu [D-La., pictured], chair of the U.S. Senate Committee on Small Business and Entrepreneurship, and a lead sponsor of the Small Business Jobs Act of 2010. "As chair of the Senate Small Business and Entrepreneurship Committee, it has been my priority to find avenues to improve our nation’s economy and put dollars back into the pockets of America’s entrepreneurs.

"With tax season upon us, the IRS is making sure taxpayers are aware of these important deductions available to them. As we convene the 112th Congress, I will continue to fight for these small businesses to ensure that they continue to receive the tax incentives they need to drive our economy."

The IRS fact sheet breaks down the tax portions of the Small Business Jobs Act of 2010 and the Patient Protection and Affordable Care Act that are available to eligible small businesses in 2010. The document details the self-employed health insurance deduction, which allows self-employed individuals to deduct their health-care costs for payroll tax purposes.

In addition, the 2010 fact sheet outlines ways for small businesses to take advantage of the Small Business Health Care Tax Credit and the General Business Credit for Employers, as well as higher expensing and depreciating limits for small businesses.

The complete fact sheet, with the tax incentives available for small businesses for the 2010 tax year, is available on the "Resources" page of the Small Business Committee website at http://sbc.senate.gov/.

SOURCES: Internal Revenue Service, U.S. Senate Committee on Small Business and Entrepreneurship
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In Just Three Months, 2010 Jobs Act Supported More Than $12 Billion in SBA Lending to Small Businesses

Today, SBA Administrator Karen Mills [pictured] announced that, as of Dec. 31, the agency had approved more than $10.3 billion in loan guarantees, which supported more than $12 billion in lending to small businesses since President Obama signed the Small Business Jobs Act of 2010 on Sept. 27. The Jobs Act included an extension of reduced fees and higher-guarantee loan enhancements in the agency’s two largest loan programs.

In a just-released statement, Mills noted that SBA moved quickly to get these critical loan dollars in the hands of small businesses and, just three months later, all of the $505 million in subsidy provided in the Jobs Act to support the loan enhancements has been utilized by the agency’s national network of lending partners. In light of that, the SBA has activated the SBA Loan Queue to ensure that any remaining funds that result from loan cancellations in the coming weeks are redirected to new Jobs Act loans.

Following is the full statement from Mills:

"In just three months since the Small Business Jobs Act was signed into law, SBA supported more than $12 billion in lending to small businesses and entrepreneurs across the country. SBA is on the front lines with small-business owners and our lending partners every single day. I’m very proud that, as a result of those close relationships and partnerships, we were able to quickly put this significant amount of capital into the hands of our nation’s largest job-creation engine.

"The loan enhancements of higher guarantees and reduced fees first implemented as part of the Recovery Act have been a vital resource for tens of thousands of small businesses at a critical time when lending markets had dried up. Beginning in February 2009, these loan enhancements engineered a significant turnaround in SBA lending -- including driving record-high levels of SBA lending in recent weeks. The end result is that the agency helped put more than $42 billion in the hands of small businesses through the Recovery Act and Jobs Act combined.

"These enhancements have been a key piece of the Obama Administration’s efforts to help small businesses drive our nation’s economic recovery. As we transition back to our standard guarantees and fee rates, SBA loan programs will continue to play an important role -- as they have for decades -- in helping entrepreneurs and small-business owners start or grow their businesses and create jobs.

"The Small Business Jobs Act is the most consequential piece of legislation affecting small businesses enacted in more than a decade. While we are proud of how quickly SBA could provide $12 billion in capital to small businesses, we remain focused on implementing other key provisions of this law that will continue to expand access to capital; help small businesses compete for federal contracting dollars; strengthen small-business exports; and provide other critical support."

During the quarter, SBA approved nearly 22,000 small-business loans for $10.47 billion, supporting a total of $12.16 billion in lending. The amounts are greater than the volume for Jobs Act loans over the same period because they exclude some loans that were not eligible for one or more Jobs Act enhancements.

Background on SBA Loan Enhancements
SBA expands access to capital for small businesses by providing government guarantees on loans made by commercial lenders. The Small Business Jobs Act extended higher guarantees and reduced fees on its two most popular loan programs -- enhancements first enacted in the American Recovery and Reinvestment Act of 2009.

From Feb. 17, 2009 -- when the Recovery Act was signed -- through Sept. 30, 2010, the SBA approved more than $22.5 billion in loan guarantees, which supported more than $30 billion in lending to small businesses, due to the loan enhancements put in place by the Act. The enhancements were funded with approximately $680 million in subsidy funds provided during the period.

Following the extension of the enhancements in the Jobs Act, SBA approved an additional $10.3 billion in loan guarantees -- supporting more than $12 billion in lending to small businesses from Sept. 27 through Dec. 31, funded by just $505 million in subsidy funds.

The three-month extension of the loan enhancements under the Jobs Act financed the highest volume in a fiscal year’s first quarter than at any time in the agency’s history. During the week of Dec. 18-24 alone, SBA supported a record-high $1.95 billion in small-business loans -- the highest dollar volume since the agency began tracking its weekly loan volumes.

SBA Loan Queue
Authority to continue the loan enhancements was extended through March 4 by Congress last month. While there is no additional appropriation of subsidy funds to support the loan enhancements, the extended authority does allow the agency to redirect -- through the SBA Loan Queue -- any dollars that come available from loan cancellations in the coming weeks to new loans with the enhancements.

It is typical that some previously approved loans are later cancelled by the borrower or lender and never disbursed for a variety of reasons. The queue takes this into account and will allow eligible small businesses, in consultation with their lenders, to choose to be placed in the queue for possible approval for a Jobs Act loan if funding becomes available.

Small-business owners and lenders will have transparent access to the queue via http://www.sba.gov/ and will be able to remove themselves from the queue at any time to be considered for a non-Jobs Act SBA-backed loan with all applicable fees and, for 7[a] loans, standard guarantee levels.

Small Business Jobs Act of 2010
The Small Business Jobs Act included an array of provisions aimed at helping small businesses gain access to capital, compete for federal contracting opportunities, expand exporting opportunities, and obtain other assistance to help them grow and create jobs. More information on the Jobs Act can be found at www.sba.gov/jobsact.

SOURCE: U.S. Small Business Administration
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Bipartisan Landrieu-LeMieux Letter to Treasury Secretary Geithner Urges Swift Implementation of Small-Business Lending Initiatives

Yesterday, United States Senators Mary L. Landrieu [D-La., pictured], chair of the Senate Committee on Small Business and Entrepreneurship, and George LeMieux [R-Fla.] sent a letter to Secretary of the Treasury Timothy Geithner requesting swift implementation of the Small Business Lending Fund [SBLF] and the State Small Business Credit Initiative, two provisions in the Small Business Jobs Act of 2010.

Sens. Landrieu and LeMieux were instrumental in including the SBLF in the Small Business Jobs Act of 2010 -- legislation that has created a $30 billion strategic partnership with community banks to boost lending to small firms.

"As you know, community banks participate disproportionately in small-business lending compared to large banks," Sens. Landrieu and LeMieux wrote in the letter. "With this in mind, it is imperative that we do all we can to assist these community banks in increasing small-business lending. The thoughtfully designed programs in the Act are crucial for community banks across the country. Thoughtful and prudent implementation is also necessary, and we ask that you act as quickly as possible. We urge you to retain small-business access to capital as your top priority in implementing provisions of the Act.

"For months during the crafting of the underlying bill, we heard from bank after bank that would benefit from the Small Business Lending Fund, as well as from the State Small Business Credit Initiative. Since the bill was signed into law on Sept. 27, 2010, our offices have heard from countless additional banks that are eager to access these important programs. Banks who participate will have economic incentives to increase their small-business lending. In turn, this will provide vital support to our small businesses in these difficult economic times."

The Small Business Lending Fund would inject $30 billion through community banks into the small-business economy. This provision is estimated to save taxpayers $1.1 billion over 10 years.

SBLF was endorsed by several organizations, including the Independent Community Bankers of America, American Bankers Association, National Small Business Association, National Association for the Self-Employed, Small Business Majority, National Bankers Association, and the Conference of State Bank Supervisors, among others.

The State Small Business Credit Initiative provides $1.5 billion in grants to support at least $15 billion in new small-business lending through already-successful state-run programs. Many of these state-run programs are facing cutbacks due to budget shortfalls, and this initiative will allow states to build upon successful models for state small-business programs, including Capital Access Programs [CAPs], collateral support programs, and loan guarantee programs -- including those targeted at rural and agricultural small businesses.

To view the full text of the letter sent to the Treasury Department, go to: http://bit.ly/LandrieuLeMieuxLetter.

GoodBiz113's Take
Who says that Washington is devoid of bipartisanship? This is a prime example of how Democrats and Republicans can actually work together -- in this case, on behalf of small businesses.

Kudos to Sens. Landrieu and LeMieux for doing what Americans want our elected officials to do: cooperate and collaborate for the greater win-win-win good.

SOURCES: OpenCongress, U.S. Senate Committee on Small Business and Entrepreneurship, U.S. Small Business Administration, The White House
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5,000-Plus Small Business Jobs Act Loans Approved in First Month

This morning, Karen Mills [pictured], who heads the U.S. Small Business Administration, announced some of the impressive effects that the Small Business Jobs Act of 2010 has yielded thus far.

"Just one month after the President signed the Small Business Jobs Act, SBA has supported nearly $3 billion in loans to more than 5,000 small businesses across the country," Mills noted. "That’s more than 5,000 small-business owners who’ve felt firsthand, within one month, the impact this new law is having on our economy."

Two examples cited by Administrator Mills:

* Peabody Engineering, a tank and fiberglass manufacturer in Southern California, that is using a Jobs Act loan to hire 10 more workers; and

* Caudill Web Inc., based in Washington, D.C., who will use their Jobs Act loan to hire more programmers to meet increased demand.

"So, how did we do it?" Mills asked. "With the Recovery Act, we learned that raising the guarantee and waiving the fees in SBA’s top two loan programs was a formula for success. With the Recovery Act funding and extensions of funding from Congress, we turned just $680 million in taxpayer dollars into nearly $30 billion in lending support through our lending partners.

"That’s a big bang for the taxpayer buck. The Jobs Act builds on that success by extending those same loan enhancements.

"This is a critical investment in America’s biggest job creators and in the strongest engine of economic recovery: entrepreneurs and small-business owners. By unlocking loans for these small businesses, we are providing them with the tools they need to grow their business and create new jobs in their local communities.

"In all, we estimate the $505 million provided in the Jobs Act for these loan enhancements will support about $14 billion in small-business loans. That’s a $14 billion boost for America’s small businesses and just one of the reasons that the passage of this new law was a top priority for President Obama.

"The Jobs Act also includes $12 billion in tax credits targeted specifically to small businesses, and a $30 billion lending fund that will help small, community banks increase their lending to local small-business owners and entrepreneurs.

"As the President has said, government can’t guarantee the success of a small business, but it can knock down some of the barriers that stand in the way and help create the conditions where small businesses can grow and hire. The Small Business Jobs Act is a critical tool to help us do just that, and we are already seeing its impact with the loans SBA approves every day."

To learn more facts about how small businesses are benefiting from the Small Business Jobs Act, visit http://www.sba.gov/jobsact.

* * *

GoodBiz113's Take: Regardless of the relentlessly negative and downright deceitful rhetoric of those who want to see President Barack Obama and his Administration fail, statistics prove that his policies are gradually boosting small-business interests and getting people back to work.

To folks on both sides of the political aisle, and anywhere in-between, we advise: Be patient. Remember that President Obama has only been in the White House for 21 months -- and he had one helluva mess to clean up when he arrived there.

Signing the Small Business Jobs Act of 2010 was just one of countless positive steps that this Administration has taken thus far in order to get all of America moving forward again. If naysaying members of Congress would simply check their politics, egos and inertia at the door, and actually work with their do-something colleagues for the greater win-win-win good, then our nation can continue on the productive course that President Obama and his truly dedicated and apt Administration and Cabinet members have only just begun to chart.

SOURCES: U.S. Small Business Administration, The White House
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SBA Finalizes Revisions of Size Standards to Expand Opportunities for Small Business

Today, the U.S. Small Business Administration published a package of revised size definitions for three broad commercial sectors affecting businesses in retail trades, accommodations and food services, and other services.

The changes were proposed on Oct. 21, 2009, and will broaden small-business eligibility, and help them gain access to SBA’s financial assistance, contracting and other programs. The agency estimates as many as 17,000 additional firms will become eligible for SBA programs as a result of the revised size standards.

"These increases in the size standards mean more of America’s small businesses will be eligible for, and can access, the resources and services the SBA and other federal agencies have available," said SBA Administrator Karen G. Mills [pictured]. "This comprehensive review is aimed at making sure the factors that determine eligibility are aligned with current economic and industry indicators, and ensure that small businesses across the country have the tools they need to drive economic growth and create jobs."

Last year, SBA began the process of reviewing and updating size standards based on industry-specific data. Before this comprehensive review, the last overall review of size standards occurred more than 25 years ago. Since then, most reviews of size standards have been limited to in-depth analyses of specific industries at the request of the public and federal agencies.

The SBA also makes periodic inflation adjustments to its dollar-denominated size standards. The latest inflation adjustment to size standards was published in the Federal Register on July 18, 2008.

Under provisions in the Small Business Jobs Act of 2010, SBA will continue its comprehensive review of all size standards for the next several years, as the law specifies.

The three final rules will affect the following industries:

Sector 44-45, Retail Trade [RIN: 3245-AF69]
In retail trade, a change in the new-car dealer industry from a revenue-based standard of $29 million in average annual receipts to an employee-based standard of 200 employees, will allow 5,700 additional new-car dealers to become eligible for small-business programs and services. Also, size standards were increased for 46 industries under retail trade. SBA estimates that more than 14,400 retail firms will become eligible for small-business programs and services.

Sector 72, Accommodation and Food Services [RIN: 3245-AF71]
Size standards were increased for five industries. SBA estimates 2,050 additional firms will become eligible for small-business programs and services.

Sector 81, Other Services [RIN: 3245-AF70]
Size standards were increased for 18 industries. SBA estimates more than 1,400 additional firms will become eligible for small-business programs and services.

For more information about SBA’s revisions to its small-business size standards, visit http://www.sba.gov/size and click on "What’s New."

SOURCES: Library of Congress, U.S. Small Business Administration
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