Before Spring Recess, U.S. Senate Committee Takes Bold, Bipartisan Steps on Behalf of Small Businesses

Before adjourning last Friday for a one-week spring vacation, the U.S. Senate Committee on Small Business and Entrepreneurship had taken bold, bipartisan steps to help small-business owners grow and, in some cases, recover their enterprises.

Kerry, Snowe Add Nearly $100 Million to SBA Budget
On March 23, Senators John Kerry [D-Mass.] and Olympia J. Snowe [R-Maine] -- the committee's chairman and ranking member, respectively -- secured $97 million above President Bush’s FY 2008 budget request for the Small Business Administration [SBA].

The Kerry-Snowe amendment to the Congressional Budget Resolution, cosponsored by Senators Joe Lieberman [I-D-Conn.], Mike Enzi [R-Wyo.], Maria Cantwell [D-Wash.], and Mark Pryor [D-Ark.], unanimously passed the Senate. Representing a 21% increase over the Administration’s proposal of $464 million, the amendment increases funding for:
* Veterans Programs to $2 million [from $743,000 in President Bush’s budget request];
* 7[j] Technical Assistance Program to $3 million [from $1.5 million];
* Small Business Development Centers to $110 million [from $87 million];
* SCORE Program to $7 million [from $4.95 million];
* Women’s Business Centers to $16.5 million [from $11.9 million];
* Native American Outreach to $2 million [from $772,000];
* U.S. Export Assistance Centers to $7 million [from $5.2 million];
* Microloan Technical Assistance to $20 million [the President’s budget proposal sought to eliminate this program];
* Microloans to $3.2 million [from zero];
* Program for the Investment in Microentrepreneurs to $5 million [the President’s budget proposal sought to eliminate this program];
* Hiring 100 Procurement Center Representatives [oversee federal contracting] to $10 million [from $900,000];
* New Markets Venture Capital to $5 million [from zero];
* New Markets Technical Assistance to $5 million [from zero];
* HUBZones to $10 million [from $2 million]; and
* Small Business Innovation Research [SBIR] outreach programs to $6 million [from zero]

“Small-business programs have been on a starvation diet for too many years and we’re trying to reverse that,” said Kerry. “I am pleased to have worked across the aisle with Sen. Snowe to restore funding to small-business programs that are critical to helping America’s entrepreneurs succeed. Our amendment demonstrates our commitment to expanding business opportunities in all sectors of our society -- especially for minorities, women and veterans.”

“In Maine and across this country, small businesses are the backbone of our economy," Snowe noted. "Working together with my good friend Sen. Kerry, we have shaped a bipartisan measure that specifically strengthens the ability of minority, women, and veteran-owned small businesses to compete, succeed and create jobs for our families and future generations of Americans."

Bill to Overhaul Disaster Loan Program Clears Committee
In 2005, in the aftermath of hurricanes Katrina and Rita, the government's Disaster Loan Program was mismanaged and ineffective. Although some improvements have been made to the program over the last six months, the Administration requires additional tools to be able to swiftly and effectively respond in the aftermath of a disaster.

Last Thursday, the comprehensive legislation -- sponsored by Senators Kerry, Snowe, Mary Landrieu [D-La.], and David Vitter [R-La.] -- that passed Kerry's committee will improve the government’s loan program and ensure disaster victims receive timely assistance.

“Hurricanes Katrina and Rita impacted 125,000 small and medium-sized businesses Gulfwide, and in Louisiana alone, more than 18,000 businesses were totally destroyed," said Landrieu. "The federal government has an important role in helping businesses get back on their feet. This bill provides significant reforms to ensure that SBA is better prepared to deal with future disasters, be they natural or manmade."

Her Louisiana colleague agreed. “Small businesses are the backbone of Louisiana’s economy, and this legislation provides critical improvements in the SBA’s ability to provide timely assistance,” Vitter noted. “Specifically, I believe the Private Disaster Loan program, which allows banks to make SBA-guaranteed loans directly to victims, is needed to streamline the recovery process and quickly get our small businesses back on their feet.”

According to the U.S. Chamber of Commerce, over 125,000 businesses were disrupted by hurricanes Katrina and Rita in 2005. In Louisiana alone, more than 81,000 small businesses were damaged or economically impacted, with 18,000 businesses catastrophically destroyed by the storms.

For example, in St. Bernard Parish, one of the Louisiana parishes hardest-hit by Hurricane Katrina, only 370 businesses have reopened – far below the total of 1,400 businesses in operation there before Katrina. In addition, according to state statistics, only 38% of the pre-Katrina population has returned to the parish.

The House Small Business Committee passed legislation earlier last month to improve the Disaster Loan Program. Now, both bills are headed to consideration by the full Senate and House.

Kerry-Hagel Amendment Improves Reservist Loan Program in Supplemental Bill
The U.S. Senate unanimously adopted an amendment authored by Kerry and Sen. Chuck Hagel [R-Neb.] that will improve a loan program for reservists who face economic hardship after a deployment. Included in the emergency supplemental appropriations bill, which cleared the Senate last Thursday, the measure gives reservists up to one year to apply for a Military Reservist Economic Injury Disaster Loan after they return from active duty and allows reservists to apply for low-interest loans before they are deployed.

"We shouldn’t just say thank-you to the men and women who fought to protect this country; we should show them we’re grateful and help them get back on their feet,” said Kerry. “This provision is a key step towards addressing the financial sacrifice being made by many reservists and their families, and the economic struggle they face when they return home.”

"The men and women of our armed forces perform the ultimate job of protecting this country," said Hagel. "It is our obligation to provide these men and women with ample opportunities when seeking civilian employment. This provision would improve opportunities for reservists to establish and maintain successful small businesses."

The Kerry-Hagel amendment:
* Extends from 90 days to one year from the date of discharge the deadline for a reservist-dependent small business to apply for a loan;
* Directs the SBA to create a pre-consideration process for reservist-dependent small businesses, so that they can receive loans immediately upon the reservist being called to active duty;
* Establishes a coordinated, proactive marketing plan to be conducted by the SBA, the Veterans Administration and the Department of Defense to more effectively get information in the hands of reservists and their families; and
* Requires the SBA to report back to the Small Business Committees of the Senate and the House of Representatives on the status of this program, as well as additional steps that may be taken to improve it.

Since 2002, fewer than 300 loans have been made through this program to reservist-dependent businesses, despite increasing numbers of reservists being deployed. The Kerry-Hagel amendment is also a provision in legislation they introduced last Wednesday to expand veteran and reservist entrepreneurship.

The Military Reservist and Veteran Small Business Reauthorization Act [S. 1005] would expand loan programs for veterans and reservists, and create a grant program for reservist-dependent firms that are unable to take on additional debt contingent upon the business providing a viable business plan. For more information on S. 1005, please visit: http://sbc.senate.gov/record.cfm?id\u003d271489.
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Recycline Marks Partnership Milestones With Special-Edition Toothbrush; Stonyfield Farm CEO Promotes 2007 Farm Bill

As of last October, when GoodBiz113 featured Recycline's innovative partnership with Stonyfield Farm, the world's leading producer of organic yogurt ["Recycline-Stonyfield Farm Partnership Milks Resources to Benefit the Environment, Consumers and Each Other"], just more than 1 million yogurt cups had been recycled into Recycline's eco-friendly Preserve® brand of consumer products [e.g., toothbrushes, razors].

This morning, Recycline announced that it's given new life to more than 2 million Stonyfield Farm yogurt cups. The company is marking that milestone -- and the five-year anniversary of its recycling partnership, and shared commitment to educating consumers about healthy product choices and preserving the environment -- by introducing a special-edition toothbrush. This toothbrush -- in Stonyfield Farm's signature rich-blue hue, no less -- features a unique insert about the partnership of these forward-thinking New England companies, and is being sold at retail stores throughout 2007.

Recycline uses recycled plastics to manufacture some of its its Preserve® brand products. Since Stonyfield Farm uses polypropylene [#5] plastic for some of its yogurt-cup material, the recycling partnership with Recycline is a natural fit.

“Sourcing recycled materials for a consumer product -- instead of using virgin resources -- is a great way to support natural-resource conservation and reduce dependence on foreign fuels,” states Recycline’s president and founder Eric Hudson. “Many people don’t realize that, since plastics are made with valuable resources like natural gas and oil, using recycled materials is one very important step in reducing our reliance on foreign oil and gas.

“Using recycled materials also reduces the cost to our environment caused by the exploration, mining, reprocessing and transportation of these precious resources. In fact, the Natural Resources Defense Council reports that making products from recycled plastics vs. non-recycled plastics reduces pollution and energy usage by 70%-80%."

Preserve® Brand Expands
Recycline’s Preserve brand includes the Preserve® Toothbrush, the Preserve® Jr Toothbrush, the Preserve® Razor, Preserve® Tongue Cleaners, and Preserve® Flavored Toothpicks made from sustainably harvested and locally grown white birch wood. In 2005, Recycline expanded into the kitchenware market with the launch of its Preserve Tableware line, which includes Preserve® Plateware, Preserve® Cutlery and Preserve® Tumblers -- all of which are reusable and recyclable plates, forks, knives, spoons and cups made from recycled plastic and offered in stylish colors.

The Preserve® Razor Triple is the latest addition to the Preserve brand. This new razor is the first environment-friendly alternative for high-performance shaving products.

Handles of Recycline’s products are made from 100% recycled plastics -- much of which comes from recycled Stonyfield Farm yogurt cups. And the recycling story doesn’t end there, as the handles are also completely recyclable through community recycling programs that accept #5 plastics, or by using Recycline’s unique postage-paid recycling mailer [enclosed with products]. All returned Preserve products and packaging are then recycled into plastic lumber, which is used to make picnic tables, decks, boardwalks and other durable products.

Recycline’s mission is to help consumers conserve – to develop products with improved function that are also responsible to the Earth. The Preserve brand’s key message is, “Preserve your Health, Preserve the Earth.”

Stonyfield Farm Takes the Lead -- Environmentally, Socially and Politically
Stonyfield Farm donates 10% of its profits to environmental causes. It was America’s first manufacturer to offset 100 percent of its CO2 emissions from its facility energy use, and recently installed the largest solar array in New Hampshire to help power its production plant -- all efforts to reduce global warming.

Through recycling initiatives, Stonyfield Farm has kept more than 10 million pounds of waste out of landfills and incinerators. As a result, the company is widely known as a national leader in environmentally and socially sound business practices.

"Stonyfield Farm has been educating consumers on key environmental issues and motivating them to take action for over 20 years," says Gary Hirshberg [pictured above], president and CEO [AKA CE-Yo] of Stonyfield Farm. “Our ongoing partnership with Recycline has made possible the recycling of more than 2 million yogurt cups into useful, new planet-friendly products like the Preserve® toothbrushes and, now, the Preserve Razor Triple. This project demonstrates what companies can do to take responsibility for their products -- from design to disposal."

Celebrating its 24th year, Stonyfield Farm is the world’s leading organic yogurt maker, and produces all-natural and organic yogurt, smoothies, cultured soy, frozen yogurt, ice cream, milk and the new Shift™ energy drink. The company advocates that healthy food can only come from a healthy planet.

Hirshberg: Farm Bill Affects Us All
Stonyfield Farm was the nation’s first dairy processor to pay farmers not to treat cows with the synthetic bovine growth hormone rBST, and is universally respected for its strong partnerships with regional family farmers. In fact, just last week, Hirshberg issued a heartfelt plea to citizens/voters and elected officials to support the 2007 Farm Bill that both houses of the 110th Congress are considering:

"You may have heard that Congress is now reshaping our nation’s Farm Bill in preparation for its September renewal," Hirshberg wrote in his company's "Moosletter" to Stonyfield customers, employees, friends, etc. "But you may not know how profoundly it could affect your life and the lives of future generations.

"I’m especially concerned about the impact the new Farm Bill will have on our nation’s family farms. The U.S. is currently losing farmland to development at a rate of two acres per minute! And, as they say, asphalt is the final crop; once you lose farmland to development, you almost never get it back.

"Our local sources of fruits, vegetables and dairy are at risk. According to Environmental Defense, more than 80% of our fruits and vegetables, and more than 60% of our dairy products, are produced in areas threatened by sprawl. Our communities are losing wildlife habitat, and scenic and cultural landscapes. And all at a rate of more than a million acres per year!

"Small to medium-sized farms make up 40% of U.S. farm and ranch land. Yet our current Farm Bill sends about 73% of all farm subsidies to the largest 10% of farms in the country. With the new Farm Bill, we could fix this inequity and do much more to help smaller farms survive.

"A proposed part of the 2007 Farm Bill -- the Healthy Farms, Fuels and Food Act -- is bipartisan legislation that could give family farmers access to the conservation, renewable energy, and other programs that send about $20 billion in subsidies to U.S. farmers each year. It would also provide financial assistance to help family farmers make the costly transition to organic production methods.

"Last week, I met with Sen. Tom Harkin [D-Iowa], who chairs the Senate Agriculture, Nutrition and Forestry Committee, and will, thus, be the principal architect and leader of the 2007 Farm Bill’s drafting and passage. Sen. Harkin emphatically stressed to me the important role that Stonyfield consumers could play by letting Congress know where they stand. Particularly, with a very significant election coming up in 2008, senators and Congress people are acutely sensitive to constituents’ calls and e-mails.

"Congress renews the Farm Bill only once every five to seven years, so this opportunity won’t come again soon. Now’s the time to let your Congressperson know that you support the Healthy Farms, Foods and Fuels Act. To learn more about this legislation and how you can support it, click here."

Next Steps
Both Recycline and Stonyfield Farm serve the estimated 63 million U.S. consumers who strongly consider the environmental impact of their purchasing decisions, and the retailers that sell natural products to these consumers. The companies' products are available nationwide in thousands of natural health food stores and supermarket chains.
To learn more about Recycline and the Preserve brand, please visit http://www.recycline.com/, or call 1-888-354-7296.

For more information about Stonyfield Farm, its products and initiatives, visit http://www.stonyfield.com/AboutUs, or call 1-800-PRO-COWS.

Contact your senators and representatives.
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Kerry: Gulf Coast Needs More than Empty Promises; Calls for Reviews of Disaster-Recovery Contracting Practices

Last Thursday, after President Bush's Gulf Coast visit, Sen. John Kerry [D-Mass.] had some harsh words. Kerry, chair of the U.S. Senate Committee on Small Business and Entrepreneurship, is the lead sponsor of bipartisan legislation to overhaul the government's disaster loan program, which the Bush Administration has been blocking since September 2005.

"Long-term recovery for the Gulf Coast requires a whole lot more than 18 months of empty promises," said Kerry. "Businesses that were once the heart of the Gulf Coast economy are now hanging on by a thread. Yet the bipartisan proposals in Congress to get these businesses back up and running have been blocked by the Bush Administration at every turn.

"On his last visit to the Gulf Coast, the President predicted a bright future for the region's entrepreneurs. Yet, in the six months since that visit, nothing's changed. While the Go Zone legislation represented a good first step, we still need fundamental reform of the government's disaster loan program to permanentlyremove delays and red tape that have prevented businesses from getting timely financial assistance."

The Small Business Disaster Response and Loan Improvements Act of 2007 [S.163], sponsored by Kerry and cosponsored by Sen. Mary Landrieu [D-La.], Sen. Olympia Snowe [R-Maine] and Sen. David Vitter [D-La.], would:
* Establish a Private Disaster Loan [PDL] program that allows banks to make loans directly to victims after meeting Small Business Administration [SBA] criteria. The SBA will provide an 85 percent guarantee for these loans;

* Require the SBA to draft rules within one year that would create a new "expedited disaster assistance business loan program." These short-term loans would have low interest rates similar to regular disaster loans. This would provide businesses with short-term assistance while they await other forms of federal assistance or insurance payouts following future disasters. It specifically addresses one of the major issues following Hurricanes Katrina and Rita -- a lack of access to immediate capital to keep businesses afloat;

* Create a new presidential declaration of "Catastrophic National Disaster," which will allow the SBA to issue nationwide economic-injury disaster loans to small businesses affected by a large-scale disaster;

* Allow the SBA to provide relief to fuel-dependent small businesses when energy prices increase at extraordinarily high rates.

* Provide key tools for processing disaster loan applications more quickly by authorizing the SBA to enter into agreements with qualified private contractors to process disaster loans, and requiring the SBA to analyze and report to Congress on how the disaster loan application process can be improved; and

* Increase the maximum size of an SBA disaster loan from $1.5 million to $5 million, and allow non-profit groups to be eligible for disaster loans.

Sen. Kerry also called on major federal agencies awarding contracts after disasters to issue and enforce contracting plans, to ensure small firms and disadvantaged businesses receive their fair share of contracts.

A Government Accountability Report released today found that there needs to be better transparency and enforcement at agencies responsible for 94 percent of federal disaster recovery contracts after Hurricane Katrina. Those agencies are the Departments of Homeland Security [DHS] and Defense [DOD], the General Services Administration [GSA], and the Army Corps of Engineers [Corps].

"All the presidential photo opportunities in the world haven't resulted in more small and local business participation in rebuilding communities devastated by Hurricane Katrina," said Kerry. "This GAO report reveals a severe gap in the information we need to ensure small businesses are afforded every opportunity to win contracts and help recover after a disaster. We need more information and better oversight to ensure the government is following the law."

Kerry sent a letter to the heads of DHS, DOD, GSA and the Corps, calling on the agencies to implement the GAO's recommendations to: 1] issue guidance to key personnel reinforcing the importance of subcontracting plan requirements; and 2] consider requesting that the agencies' Inspectors General review compliance with this guidance.

To read the GAO report, visit: http://www.gao.gov/new.items/d07205.pdf.

To read the text of the letter, click here.

Sources: Library of Congress [via THOMAS], U.S. Senate Committee on Small Business and Entrepreneurship
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