President Obama Proclaims National Small Business Week 2010, Highlights Small-Business Growth and Job Creation

Calling small business the backbone of the nation’s economy, President Barack Obama [pictured] stressed his Administration’s commitment "to helping small businesses drive our economy toward recovery and long-term growth" in his proclamation of the week of May 23-29 as National Small Business Week.

The President’s proclamation was issued yesterday, prior to the U.S. Small Business Administration’s 47th annual observance of National Small Business Week in Washington, D.C. [May 23-25]. The event honors the nation’s most outstanding entrepreneurs, and features the announcement of the National Small Business Person of the Year for 2010 from among the 53 state small-business winners, including the District of Columbia, Puerto Rico and Guam.

President Obama will meet with Small Business Week 2010 award winners at the White House on Tuesday, May 25.

"Small-business owners embody the spirit of entrepreneurship and strong work ethic that lie at the heart of the American dream," President Obama proclaimed. "They are the backbone of our Nation's economy, they employ tens of millions of workers, and, in the past 15 years, they have created the majority of new private-sector jobs. During Small Business Week, we reaffirm our support for America's small businesses and celebrate the proud tradition of private enterprise they represent.

"Our Nation is still emerging from one of the worst recessions in our history, and small businesses were among the hardest hit. From mom-and-pop stores to high-tech start-ups, countless small businesses have been forced to lay off employees or shut their doors entirely. In these difficult times, we must do all we can to help these firms recover from the recession and put Americans back to work. Our Government cannot guarantee a company's success, but it can help create market conditions that allow small businesses to thrive.

"My Administration is committed to helping small businesses drive our economy toward recovery and long-term growth. The American Recovery and Reinvestment Act has supported billions of dollars in loans and federal contracts for small businesses across the country. The Affordable Care Act makes it easier for small-business owners to provide health insurance to their employees, and gives entrepreneurs the security they need to innovate and take risks. We have also enacted new tax cuts and tax credits for small firms. Still, we must do more to empower these companies.

"In this year's State of the Union Address, I proposed creating a $30 billion lending fund to help increase the flow of credit to small businesses, and I call on the Congress to pass this legislation quickly. My Administration is also working to extend and enhance Small Business Administration programs that have helped small-business owners acquire loans and hire workers.

"This week, we celebrate the role of entrepreneurs and small businesses in our national life. They are the engine of our prosperity and a proud reflection of our character. A healthy small-business sector will give us vibrant communities, cutting-edge technology, and an American economy that can compete and win in the 21st century."

National Small Business Week 2010 will begin with two-and-a-half days of events in Washington, D.C., at the Mandarin Oriental Hotel, where more than 100 outstanding business owners from across the country will be recognized. In addition to the State Small Business Persons of the Year, men and women involved in disaster recovery, government contracting, small-business champions, as well as SBA partners in financial and entrepreneurial development, will be honored.

A keynote address by SBA Administrator Karen Mills will highlight Monday morning’s agenda, followed by Mills hosting a town hall meeting entitled "Small Business: Driving America’s Economy." Also featured are a series of executive panel forums on innovation, exporting and social media.

Among the featured speakers confirmed are The Honorable Janet Napolitano, Secretary of the U.S. Department of Homeland Security, and The Honorable RayLaHood, Secretary of Transportation. A list of other outstanding speakers -- including prominent business leaders, CEOs and politicos -- are listed with the week's full agenda at http://www.nationalsmallbusinessweek.com/.

The public can "attend" Small Business Week events virtually, via the SBA’s streaming video on the Web at http://www.NationalSmallBusinessWeek.com/.

Small Business Week 2010 sponsors and co-sponsors include: Sam’s Club, Visa, Ford, ADP, Raytheon, Cbeyond, UPS, Intuit, Google, eBay, AT&T, Northrop Grumman, Lockheed Martin, D&B, Verio, Nomadic Display, ASBDC, NADCO, NAGGL, NASE, NSBA, WIPP and SCORE.

The full text of President Obama’s Small Business Week proclamation can be found at: http://bit.ly/Proclamation2010.

To learn about Small Business Week events in your area, go to: http://bit.ly/SmallBizRegion.

To view highlights of National Small Business Week 2009 events, visit: http://bit.ly/SmallBizWeek2009.

To stay informed about SBA's efforts to simultaneously promote entrepreneurship and economic recovery, bookmark the following URL: http://bit.ly/RecoverySBA.

SOURCES: U.S. Small Business Administration, The White House
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President Obama Announces New Small-Business Lending Initiatives

This afternoon, President Barack Obama [pictured above with Treasury Secretary Tim Geithner and SBA Administrator Karen Mills], announced his proposal to boost lending support of small businesses, so as to promote even further business expansion and job creation.

Speaking from Metropolitan Archives, a small records-storage business based in Landover, Md., President Obama reflected on the heretofore impact of the American Recovery and Reinvestment Act of 2009; outlined specifics of his proposed lending initiatives; and provided a sneak preview of a small-biz-focused conference that Geithner and Mills will convene in the near future.

"Over the past decade and a half, America's small businesses have created 65 percent of all new jobs in the country," Obama noted. "And more than half of all Americans working in the private sector are either employed by a small business or own one -- more than half. These companies are the engine of job growth in America. They fuel our prosperity. And that's why they have to be at the forefront of our recovery.

"The problem is, our small businesses have been some of the hardest hit by this recession. From the middle of 2007 through the end of 2008, small businesses lost 2.4 million jobs. And, because banks shrunk from lending in the midst of the financial crisis, it's been difficult for entrepreneurs to take out the loans they need to start a business. For those who do own a small business, it's been difficult to finance inventories and make payroll, or expand if things are going well.

"And that's why we made sure the Recovery Act focused on helping small businesses expand and create jobs. In it, we temporarily reduced or eliminated fees on SBA loans -- loans that give small businesses more money to reinvest in their own futures. And we guaranteed some of these loans by up to 90 percent, which has given local banks and credit unions the confidence they need to lend.

"In the last eight months, these steps have made a real difference for small businesses across America. So far, the Recovery Act has supported over 33,000 loans to small businesses that have already helped save or create nearly tens of thousands of jobs -- nearly $13 billion in new lending -- $13 billion. And more than 1,200 banks and credit unions that had stopped issuing SBA loans when the financial crisis hit are lending again today. And more than $4.3 billion in federal contracts are now going to small businesses.

"We're also providing tax relief to small businesses under the Recovery Act -- relief that will give these businesses back over $5 billion this year. And we're giving tax cuts directly to 95 percent of working Americans, which includes the vast majority of small-business owners and their employees.

"So there's no question that our Recovery Act has given a boost to every American who works at a small business, or owns one, or aspires to own one. There's no question that the steps we've taken have improved the overall climate for small business across the country.

"But there's also no question that we've got a long way to go. There's still too little credit flowing to our small businesses. There's still too many entrepreneurs who can't get the loans they need to open up their doors and start hiring. There's still too many who are struggling to make payroll and to stay open. And there's still too many successful small businesses that want to expand further and hire more but just don't have the capital to do it."

Specifically, President Obama called for:

* Increasing the size of SBA’s 7[a] loan from $2 million to $5 million;

* Increasing the size of SBA’s 504 loan from $2 million to $5 million for standard borrowers [supporting a total project of $12.5 million], and from $4 million to $5.5 million for manufacturers [supporting a total project of $13.75 million]; and

* Increasing the size of SBA’s Microloan from $35,000 to $50,000.

"Finally," President Obama added, "I've asked Tim Geithner and Karen Mills to convene a conference in the coming weeks that will bring together regulators, congressional leaders, lenders and small businesses to determine what additional steps we can take to get credit flowing to small businesses that want to expand and create more jobs.

"Of all the steps we're taking to move this economy from recession to recovery, I continue to believe that the success of our small businesses will be a foundation upon which our future prosperity is built. So we will continue to do whatever we can to help these businesses grow and thrive. And I'm confident that the steps we announced today will do that for small-business owners across the country -- men and women we hear from every day."

Administrator Mills Comments on President Obama’s Proposal to Raise SBA Loan Limits
Following President Obama's announcement to raise the maximum loan size for SBA-backed loans to small business, SBA Administrator Mills issued the following statement:

"America’s 29 million small businesses have been hard-hit in this recession. Nine months ago, President Obama sent small businesses a lifeline: the American Recovery and Reinvestment Act. Since then, the SBA has supported more than 33,000 loans for a total of almost $13 billion in small-business lending. This has helped save or create tens of thousands of jobs.

"But there is much more work to be done, which is why President Obama today pledged his support for legislation that would increase the maximum size of some SBA loans. Increasing maximum loan sizes will allow the SBA to ensure that more small-business owners and entrepreneurs can get access to the credit they need to expand their operations and create jobs.

"The President also announced additional support from the Treasury Department for smaller community lenders that are committed to increasing their lending to small businesses. Secretary Geithner and I will host a conference on small-business lending with members of Congress, regulators, lenders and the small-business community. The conference will discuss additional efforts that can be taken to provide small businesses with access to credit. These steps, coupled with SBA’s ongoing efforts, will help small businesses grow and create jobs throughout America."

Rep. Velázquez Applauds, Looks Forward to "Swiftly Moving" Small-Business Lending Legislation
Shortly after President Obama's speech, Rep. Nydia M. Velázquez [D-NY], chairwoman of the U.S. House Committee on Small Business, commented on the Administration's plan for helping small businesses access credit:

"I applaud the President for reaffirming his support for our nation's small businesses and recognizing their importance to the economic recovery. With the Administration's March announcement, and again today, the President has made clear that he is committed to getting entrepreneurs the help that they need. As the Administration refines the details of this plan, I am sure they will closely consult lenders, the small-business community and Congress, and I look forward to participating in that dialogue.

"In working to increase access to capital, it is important to pursue policies that will open doors for, and enhance the opportunities, of small firms. Duplicating existing programs or instilling initiatives that only benefit the lenders does nothing to help grow our economy.

"The ultimate goal is to get affordable capital into the hands of small businesses. That is why the Committee today approved bipartisan legislation to comprehensively modernize the SBA's capital-access initiatives. This bill is expected to support $44 billion in small-business lending every year, helping to save or create 1.3 million jobs annually. I look forward to swiftly moving this legislation through the House and working with my colleagues to get this bill to the President for his signature."

To view the video of President Obama's speech, go to: http://bit.ly/ObamaVideoSmallBiz

The full text of President Obama's remarks can be found here: http://bit.ly/ObamaRemarksSmallBiz

A fact sheet on President Obama's proposal to increase SBA loan size can be found at: http://bit.ly/ObamaFactsSmallBiz

A fact sheet on FinancialStability.gov's Small Business and Community Lending Initiative, titled "Unlocking Credit for Small Businesses," is available at: http://bit.ly/FinancialStabilitySmallBiz

To track Recovery Act-related developments, go to: http://www.recovery.gov/

For information about federal contracting opportunities, go to: http://www.fedbizopps.gov/

SOURCES: U.S. Department of the Treasury, U.S. House Committee on Small Business, U.S. Small Business Administration, White House [photo by Pete Souza]
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