It's Time to Put American Families and Small Businesses in Control of Their Own Health Care

According to a report released yesterday by the nonpartisan Congressional Budget Office, President Obama's proposal for health insurance reform will provide insurance for 32,000,000 Americans -- more than the populations of Arizona, Kentucky, Ohio and Virginia combined -- thus guaranteeing that 95 percent of working Americans will be covered.

President Obama's health insurance reform plan will:

* Make health insurance affordable for middle-class households and small businesses -- including the largest middle-class tax cuts for health care in history -- reducing premiums and out-of-pocket costs.

* Strengthen consumer protections and reins in insurance-company abuses.

* Give millions of Americans the same types of private insurance choices that members of Congress will have -- through a new, competitive health insurance market that keeps costs down.

* Hold insurance companies accountable to keep premiums down and prevent denials of care and coverage, including for pre-existing conditions.

* Improve Medicare benefits -- with lower prescription drug costs for those in the "donut hole," better chronic care, free preventive care, and nearly a decade more of solvency for Medicare.

* Trim the federal deficit by $130 billion over next 10 years, and $1.2 trillion dollars over the following decade -- reining in waste, fraud and abuse; overpayments to insurance companies; and by paying for quality over quantity of care.

As President Obama says, "We must act now" and put American families and small businesses -- not health insurance companies -- in control of their own health care.

For more information, go to:

* Americans for Stable Quality Care: http://www.stablequalitycare.org/

* CNN/Health Care in America: http://bit.ly/HealthCareInAmerica

* HealthReform.gov: http://www.healthreform.gov/

* Kaiser Family Foundation: http://healthreform.kff.org/

By all accounts, the final-stretch vote on health insurance reform will happen as soon as this Sunday [March 21]. To encourage your U.S. senators and representatives in Congress to pass this historic health reform legislation, please visit the following website for contact info: http://bit.ly/ElectedOfficials

SOURCES: Congressional Budget Office, Politico, U.S. Census Bureau, USA.gov, 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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Verbatim: President Obama Clarifies How Health Insurance Reform Plan Will Benefit All Americans

Last evening, President Barack Obama told a joint session of Congress and the American people just how he wants to bring peace of mind to U.S. citizens who have health insurance, and affordable coverage to those who don't. He clearly articulated the three key points of his comprehensive health insurance reform plan:

1] It will provide more security and stability to those who have health insurance.

2] It will provide insurance to those who don't.

3] And it will lower the cost of health care for our families, our businesses, and our government.

After President Obama declared, "The time for bickering is over... Now is the time to deliver," countless people of all political stripes and backgrounds immediately weighed in on the President's plan. Here's a select sampling of how some people -- e.g., medical professionals, politicos, pundits -- think his health insurance reform plan will serve America's individuals, households and small businesses...


"I think it was a very good speech. [Obama] made it quite clear this is a very important priority for him and the American people. He also made it quite clear that he is going to 'call out' those who make false statements and use scare techniques...

"I think he was clear that he wants individual mandates, employer mandates/pay or play, critical insurance reforms including guaranteed issue [of insurance], no pre-existing condition exclusion, [and] some type of meaningful public plan, ... but [he] didn't seem committed to that solution. These are all good." -- Dr. Patty Gabow, M.D., CEO, Denver Health [Denver Business Journal, 09/09/2009]

* * *

"I think they go back to committee, they find out what the Senate [Finance] Committee is going to report, then they hammer a bill out.

"I think this is a president that's under no illusion that he's going to get a lot of Republican support. He may get one Republican senator, if he's lucky, but I think that he's hoping that this talk of fiscal responsibility is going to keep some of those moderate, conservative Democrats with him in the House. He took something from Hillary Clinton, he took something from medical malpractice from the Republicans -- to the disdain of lots of liberal Democrats. So there was something in there for everybody." -- Gloria Borger, CNN senior political analyst [CNN.com, 09/09/2009]

* * *

"Over the last month, we’ve watched the debate over health insurance reform get off track, thanks to special interests that benefit from the broken insurance system we have now. In his speech today, President Obama dispelled the myths and misunderstandings that have been swirling around this issue. And he brought back into focus how important it is to all Americans that we reform our broken health insurance system...

"We’ve entered a new phase of the debate marked by this historic speech. My colleagues and I are more determined than ever to put the best ideas -- from Democrats and Republicans -- on the table, so we can pass a meaningful health insurance reform bill that lowers costs and improves coverage for Coloradans and all Americans. The time to act is now." -- U.S. Sen. Mark Udall, D-Col. [Denver Business Journal, 09/09/2009]

* * *

"Democracy Corps, a nonprofit liberal group, was doing some focus groups tonight with dials, and I was checking in with them as they were doing those. Obviously, most of what [Obama] said was way up with Democrats. And that matters because, ultimately, this is in the hands of the Democrats.

"But he scored very well with independents, as well. And it is those Blue Dog Democrats who care about fiscal issues that he was really speaking to -- both at home and in the hall. And when he said the Bush tax cut, the war in Iraq, and the prescription drug plan exploded the deficit, he was talking to them -- because a lot of them voted for that. So he's going to be able to take them behind a closed door now and say, 'Hey, bud. You jacked up the deficit under the last president. You gotta help me now.' And I think that's going to be a powerful argument behind closed doors. He said it very politely in public tonight." -- Paul Begala, Democratic strategist [CNN.com, 09/09/2009]

* * *

"Tonight, President Obama reminded us of exactly what is at stake in the health care debate, and of why we owe it to the American people to enact reform that makes a meaningful departure from a status quo that isn’t working for families and small businesses." -- U.S. Sen. Michael Bennet, D-Col. [Denver Business Journal, 09/09/2009]

* * *

"My sense is he very much endorsed the [Sen. Max] Baucus plan tonight -- the moderate Democratic plan. He had very little to nothing about taxation in here... He didn't come out four-square for the public option. I think this is very much what they're trying to build in the Senate side.

"My sense of the speech is whether it reversed the tide, which I think was the real test. Had he given this speech three months ago, when there was a glow about his presidency, I think he could have swept the country. It was a very well-crafted speech. But now, given everything that's happened, millions of Americans that voted for him will say tonight: 'We saw the Obama we elected.' They will be really excited by this speech. But for a lot of others, I don't think it moved them very much. I'm not sure it will heal the divide. Maybe it will move some of the independents, like Paul [Begala] said. But we're so dug in, I'm not sure it ultimately moved the people he needed to move to reverse the tide." -- David Gergen, senior political analyst [CNN.com, 09/09/2009]

* * *

"I agree with the president that consumers do better when there is choice and competition. The best way to achieve this is by offering a strong public option that will not only bring down rising costs, but will also ensure competition and transparency among private companies within the insurance exchange. No one will be forced into the public option, but they will have that choice as an affordable alternative." -- U.S. Rep. Diana DeGette, D-Denver [Denver Business Journal, 09/09/2009]

* * *

"I think he clearly laid out his objectives. This was his goal. There are two lines here I want to repeat: 'While there remain some significant details to be ironed out...' That's what was missing tonight. The other thing, to the point about the Medicare, he talks about how to reduce the waste and inefficiency in Medicaid and Medicare to pay for most of his plan. And the proposal will cost $900 billion... I think he did not quiet the little anguish that'll go on among those senior citizens.

"Now, the key thing here is he laid out his goals. He laid out his objectives. The details will come from Congress. There's a lot in this thing that could be challenged tonight." -- Ed Rollins, Republican strategist [09/09/2009]

* * *

"Skyrocketing health care costs are breaking the budgets of hard-working families, small businesses and states. Too many Coloradans are one illness away from bankruptcy. President Obama is right: the status quo is unacceptable. Fixing our economy requires responsible, moderate reform that will provide security and stability for those who have health care and access to affordable insurance for those who do not." -- Colorado Gov. Bill Ritter, a Democrat [Denver Business Journal, 09/09/2009]

* * *

"Overall, we support his call for health care reform. I think he showed good leadership on the issue. I think he did a good job on calling on both parties to pass meaningful reform." -- Jeff Korsmo, executive director, Mayo Clinic Health Policy Center [Post-Bulletin, 09/10/2009]

* * *

"It was very clear that [the president] wasn’t just talking to the people in that chamber; he was talking to the people of this country. What I liked about the speech is it really put a blueprint out there for what needs to be done, and he dispelled a lot of the myths surrounding the debate." -- U.S. Sen. Amy Klobuchar, D-Minn. [Post-Bulletin, 09/10/2009]

* * *

"I've talked to thousands of Minnesotans as I traveled the state during August, and no matter which end of the political spectrum they're on, people want real reform. I think we heard the same message from the president tonight that I have heard from my constituents: Now is the time to fix our broken health insurance system to lower costs, improve quality, and ensure choice of health plans." -- U.S. Sen. Al Franken, D-Minn. [Post-Bulletin, 09/10/2009]

* * *

"I'm pleased that the president came out tonight and told Americans the three basic goals his plan meets, how it meets those goals, and what it will mean to them. Time is of the essence -- Americans have waited decades and they can wait no longer for reform. The cost is too high for our families, our businesses, our health care providers and our communities to bear any longer." -- U.S. Rep. Tim Walz, D-Minn. [Post-Bulletin, 09/10/2009]


The public is invited to attend a rally on health insurance reform with President Obama this Saturday, Sept. 12, at Target Center in downtown Minneapolis. The event is free and open to the public. Space is available on a first-come, first-serve basis. No ticket is required. Doors open at 9:30 a.m.; program begins at 12:30 p.m.

To read the full text of President Obama's remarks to Congress, go to: http://budurl.com/SupportHealthReform.

In May 2009, shortly after he was told that his illness was terminal, the late Sen. Ted Kennedy [D-Mass.] -- who devoted his 37-year career in the U.S. Senate to championing health care for all -- wrote a letter to President Obama and asked that it be delivered upon his death. To read that letter, referenced during Obama's speech to Congress, go to: http://budurl.com/KennedyLetter.

To read President Obama's full plan for health insurance reform, go to: http://budurl.com/HealthReformPlanFull.

To download a concise, printable version of President Obama's plan [PDF], go to: http://budurl.com/HealthReformPlanPDF.

To learn about HealthierUS, a new national initiative to improve people's lives, prevent and reduce the costs of disease, and promote community health and wellness, go to: http://www.healthierus.gov/.

Want to know exactly how health insurance reform will benefit you? Take the "What's in Reform for You?" quiz: http://budurl.com/RealityCheckQuiz

For information and updates regarding health insurance reform, click on these sources:
* AARP: Myths vs. Facts About Health Care Reform
* American Cancer Society: Access to Health Care
* American Medical Association
* American Nurses Association
* Americans for Stable Quality Care
* CNN.com: Health Care in America
* Doctors for America
* FactCheck.org
* FactsAboutReform.org
* Families USA
* Federation of American Hospitals
* Health Care for America Now!
* Health Insurance Reform and Medicare
* Health Insurance Reform Reality Check
* HealthActionNow.org
* HealthReform.gov
* Kaiser Family Foundation
* Main Street Alliance
* NOW on PBS/Health Care Reform
* PhRMA
* Setting the Record Straight
* Urban Institute's Health Policy Center

SOURCES: CNN.com, Denver Business Journal, Post-Bulletin, The White House [photo by Pete Souza]
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Record Volunteer Turnout Expected for Today's National King Day of Service

President-elect Barack Obama’s call for Americans to join in service to honor Dr. Martin Luther King Jr. on the King Holiday has had an electrifying effect -- with a record number of 12,000-plus projects taking place in communities across America today.

Community and nonprofit groups across the country are thrilled about the large and enthusiastic response to the President-elect’s call to service, and hope that volunteers who serve today will make an ongoing commitment to serve throughout the year, as President-elect Obama has called for.

In 1994, Congress passed legislation encouraging that the King Federal Holiday be a national day of service, and charged the Corporation for National and Community Service [CNCS], a federal agency, with leading this national effort. Participation has grown every year since, but has taken a quantum leap this year with President-elect Obama’s call to service.

As of 2:00 p.m. yesterday, the Presidential Inauguration Committee [PIC] reported that more than 12,100 service projects have been registered on the USAService.org website. This number is more than double the record set last year, when 500,000 Americans served through 5,000 projects on the King Day of Service.

“In this time of economic distress, we need citizen service more than ever,” said Stephen Goldsmith, the Corporation’s board chair. “Service is a solution that can bring us closer to Dr. King’s dream of a better America.

“While our nation has made great progress, we still have much work to do. Service is a powerful way for every American to bring us closer to meeting our challenges and fulfilling the promise of America.”

Another driver of this year’s record turnout is the Internet. Americans can find volunteer opportunities at USAService.org or MLK Day.gov; get ideas for do-it-yourself volunteer projects at America Serves MLK Challenge; join the MLK Day Facebook Cause; or get real-time photos at Flickr and project reports on Twitter.

“Through President-elect Obama’s call to service, the hard work and planning by thousands of community groups, and the savvy use of the Internet, we will see an extraordinary demonstration of the power of citizen action across America tomorrow,” said Nicola Goren, acting CEO of the Corporation. “We are thrilled that President-elect Obama has made service a centerpiece of his inauguration and will make it a central cause of his administration.”

A wide variety of projects are being planned, including: delivering meals, refurbishing schools and community centers, collecting food and clothing, removing graffiti, reading to children, and more. Many organizations use the day as a springboard for year-round civic action, such as signing up mentors or tutors, or youth taking pledges of nonviolence.

Below, are some highlights:

* Thousands of volunteers will gather at Robert F. Kennedy Memorial Stadium, in Washington, D.C., to assemble more than 75,000 care packages to send to our troops for the "Day of Service for Our Military" project, sponsored by Mayor Adrian M. Fenty and Serve DC, in partnership with Operation Gratitude and Target.

* More than 65,000 volunteers will serve in 900 projects in the 14th annual Greater Philadelphia Martin Luther King Day of Service, the largest in the country. Organizers are using the day to launch MLK365, a new year-round initiative promoting sustainable civic engagement and volunteer opportunities

* The Points of Light Institute and its Hands On Network will engage more than 100,000 volunteers in projects across the country that are expected to serve more than one million Americans.

* Yesterday, the National Alliance of Faith and Justice recruited mentors for children of prisoners and other at-risk youth at more than 425 places of worship as part of Justice Sunday.

* More than 600 Boys & Girls Clubs are participating in the King Day of Service, engaging members in community clean-ups, writing letters to soldiers, organizing food drives, visiting senior centers, and creating care packages for sick children.

* The American Red Cross is teaming up with HOPE worldwide to engage volunteers in 25 cities to canvass door-to-door and provide vital fire safety information to help residents prevent home fires, protect their loved ones, and strengthen their community.

* Many major U.S. corporations are participating in King Day by encouraging their employees to serve and supporting local projects. Examples include Shell, Target, Best Buy, Kaiser Permanente, and Walmart.

* More than 16,000 college students from 130 campuses in 28 states will engage in King Day service projects organized by Campus Compact -- with projects ranging from neighborhood clean-ups, to preparing and serving meals to hospice patients.

* In Buffalo, N.Y., several hundred members of the Western New York AmeriCorps program will supervise 4,000 volunteers for projects -- including boarding up the windows of dangerous condemned houses, to teaching community members how to run their own community garden.

* At colleges across the U.S., The Campus Kitchens Project will engage college students and community volunteers in leading hunger relief programs to share on-campus kitchen space, recover unused food from campus cafeterias, and deliver meals to low-income neighborhoods.

* Children for Children, in New York City, will engage 3,000 elementary and middle-school students in a day of hands-on service projects honoring Dr. King at two schools in Midtown and Harlem.

* Youth Service America has launched Semester of Service to encourage students, ages 5-25, to engage in service-learning starting on King Day and culminating on Global Youth Service Day [April 24-26, 2009].

The seven national strategic partners for the 2009 King Day of Service include the Points of Light Institute, The Corps Network, North Carolina Campus Compact, Youth Service America, Service for Peace, Campus Kitchens Project, and the National Alliance of Faith and Justice.

National nonprofit partners include the AARP, American Association of State Colleges and Universities, American Red Cross, The American Society for the Prevention of Cruelty to Animals [ASPCA], America's Promise Alliance, Big Brothers Big Sisters, Breakthrough Collaborative, Causecast, City Year, Do Something, First Book, Habitat for Humanity International, HOPE worldwide, The King Memorial Foundation, Lutheran Social Services, MENTOR, National Marrow Donor Program, ServiceNation, Student Conservation Association, United Way of America, VolunteerMatch, and YouthBuild USA.

Corporate partners include Cargill, Clear Channel, Comcast, Shell Oil Company, Starbucks, Target, and UPS.

A complete list of partners is at http://www.mlkday.gov/about/partners/index.asp.

The Corporation for National and Community Service improves lives, strengthens communities, and fosters civic engagement through service and volunteering. Each year, the Corporation provides opportunities for four million Americans of all ages and backgrounds to serve their communities and country through Senior Corps, AmeriCorps, and Learn and Serve America. For more information, go to http://www.nationalservice.gov/.

GoodBiz113's take: Opportunities abound for businesses of all sizes to serve -- with time, energy, leadership, products, services, money, etc. Answer President-elect Barack Obama's call now to get involved at the local, state, regional and/or national level. The ROI will be greater than your fiscal year-end bottom line could even begin to quantify.

SOURCE: Corporation for National and Community Service
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Franken Demands Immediate Congressional Hearings re Banks' Abuse of $700 Billion Bailout

Minnesota DFL candidate Al Franken -- the only U.S. Senate candidate who opposed the $700 billion Wall Street bailout -- today called for immediate hearings in light of reports indicating that banks may not be using those funds to unfreeze credit markets but, rather, for other purposes -- with the encouragement of the Treasury Department.

"Washington sprung into immediate action when Wall Street was in trouble, but there's been no help for struggling homeowners on Main Street and no solutions for middle-class families and small businesses hurt by the failed economic policies of the last eight years," said Franken. "And now we find that the $700 billion bailout is being used not to solve the problem, but to handpick winners and losers on Wall Street. That's an outrage.

"Taxpayer dollars should be helping taxpayers, not going to pad the bottom lines of the Wall Street bankers whose bad bets got us into this mess. This is exactly why we should never have passed this bill without proper accountability. And it's time for Congress to take action."

Earlier this month, the Bush administration announced that it would use bailout funds to inject capital directly into banks. They claimed that this would allow credit to start flowing again as banks lent that money to other entities. But recent reports indicate that, instead, the banks receiving these funds are using them to buy up other, smaller banks. And the Treasury Department, according to a column by New York Times financial columnist Joe Nocera, is encouraging the practice.

Meanwhile, Wall Street financial institutions like Morgan Stanley and Merrill Lynch continue to pay out billions in bonuses, despite receiving bailout funds.

This morning, during his statewide "For The Middle Class, For A Change" bus tour, Franken stopped at Bouquets by Carolyn, a small business located in St. Paul, Minn. There, he called for:
* Immediate hearings into potential abuses of the $700 billion bailout by Wall Street banks
* Straight answers from the Bush administration on its real plans for these taxpayer dollars
* An administration guarantee that banks receiving bailout funds will use them to lend
* A revocation of U.S. Treasury Department Secretary Henry Paulson's authority to implement the bailout if he cannot explain how his plan is serving taxpayers

In an editorial today, the New York Times wrote, "Shortly after the bailout was enacted, The Times's Mark Landler reported that Treasury officials also wanted to steer the bailout billions to banks that would use the money to buy up other banks. Now, lo and behold, with $250 billion in bailout funds committed to dozens of large and regional banks, it turns out that many of the recipients of this investment from taxpayers are not all that interested in making loans. And it appears that Mr. Paulson is not so bothered by their reluctance."

Case in point: Merrill Lynch. Two days ago, Bloomberg reported that, while Merrill Lynch is laying off employees, the financial institution is paying out billions in bonuses. According to Bloomberg, "Five straight quarters of losses and a 70 percent slide in its stock this year haven't stopped Merrill Lynch & Co. from allocating about $6.7 billion to pay bonuses ... The money Merrill has set aside for bonuses equates to an average $110,000 for each of its 60,900 people, up from $108,000 a year ago because more than 3,000 jobs have been cut."

Apparently, Merrill Lynch isn't the only bailout recipient that's utilizing taxpayer funds to reward its employees. Bloomberg also reported that Morgan Stanley and Lehman are both setting aside billions for bonus payments. According to Bloomberg, "Even some employees at Lehman Brothers Holdings Inc., which declared the biggest bankruptcy in U.S. history last month, will get the same bonus they received a year ago ... Morgan Stanley, the second-biggest securities firm until it also converted to a bank, has $6.44 billion for bonuses, or $138,700 per person, down 20 percent from last year."

GoodBiz113's take: Al Franken is right: Congressional oversight is needed, post-haste, to hold the Wall Street bailout recipients accountable for seeing that taxpayer funds are used to help fuel America's economy [e.g., small businesses, homeowners, working families], as intended -- not to lavishly reward their own fat-cat executives and employees.

SOURCES: Al Franken for U.S. Senate, Bloomberg, New York Times
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Sens. Durbin, Harkin Hold Hearing on Oil Market Oversight; Durbin Promises More Resources to Fight Excessive Oil Speculation and Market Manipulation

U.S. Senators Dick Durbin [D-IL, pictured] and Tom Harkin [D-IA] chaired a hearing today to investigate how excessive speculation in the oil market may be contributing to the historic run on oil and gas prices.

Durbin is the chairman of the Appropriations Subcommittee on Financial Services and General Government, the subcommittee responsible for overseeing the budget of the U.S. Commodity Futures Trading Commission [CFTC]. Last month, Durbin chaired a hearing on the budget request for the CFTC.

Last week, at a hearing before the Senate Agriculture Committee, the agency charged with oversight of the agency, CFTC officials testified that additional resources, including more staff, are needed to help this agency carry out this mission.

Today's hearing, held jointly before the Senate Appropriations Subcommittee on Financial Services and General Government, and the Senate Committee on Agriculture, Nutrition, and Forestry, probed the CFTC's role in regulating the market and what tools and resources the agency needs to ensure it is able to be a robust market watchdog.

"With the economy in a tailspin and with the average price for a gallon of gas topping $4 across the country, people are asking ‘Why is this happening?'" Assistant Majority Leader Durbin said. "Is excessive speculation taking place, or is it simply supply and demand? The answer is that no one knows, and the CFTC lacks the information, resources and, in some cases, the legal authority to tell us."

Testifying before today’s joint panel were the chief executives of the New York Mercantile Exchange [NYMEX] and Chicago Mercantile Exchange [CME], as well as the vice president of IntercontinentalExchange [NYSE: ICE]. Also testifying were representatives of the Consumer Federation of America and the Air Transport Association.

“In the past year, gas costs have risen 30 percent," said Harkin. "Consumers are seeing the results of this increase in rising costs for everything -- from the gas they put in their vehicles, to the loaf of bread at the grocery store. We deserve to know why.

"We rely on the CFTC to tell us whether our commodity markets are working, or whether manipulation or distortion of markets by excessive speculation is causing price bubbles that should be addressed. With CFTC officials testifying previously that additional resources, including staff, are needed to carry out their oversight responsibilities, Congress has a responsibility to provide them with the resources and authorities they need to do their job. We addressed some of this in the Farm Bill, but further resources may be needed."

CFTC is the nation’s leading regulator of futures markets. However, a lack of resources and weakened authorities have prevented them from being able to gather information and effectively monitor the full breadth of the oil market.

Currently, CFTC is only able to monitor the activity that takes place on U.S.-based exchanges – a fraction of the total market for oil transactions. They are unable to gather information about trades which take place on global markets, like ICE, or on over-the-counter exchanges between firms.

In addition, trading in commodity markets has exploded from nearly 500 million trades in 2000 to over 3 billion trades in 2007. CFTC’s staffing levels, however, have not kept pace. Full-time employee [FTE] levels have dropped over that same period of time, from 546 in 2000 to 437 last year – nearly a 21 percent decline. "CTFC simply doesn’t have enough cops on the beat," Durbin noted.

To address these shortcomings, Durbin introduced the Increasing Transparency and Accountability in Oil Prices Act of 2008, which:

*Authorizes new resources, including staff and better information technology, for the CFTC. These 100 new employees would immediately address the staffing shortfalls at the agency, and the technology funding would help the agency update woefully antiquated monitoring and analysis systems. "We could hire 100 people and put them to work tomorrow, given the inflow of trading volume," CFTC Chairman Walter Lukken said just two weeks ago. "We are doing the best we can in difficult circumstances."

* Improves transparency in market. CFTC currently has limited visibility of trades that take place on NYMEX, and very little visibility of over-the-counter trades -- such as trades from one hedge fund to another, or those that take place on ICE in London. Durbin’s legislation would close the so-called “London Loophole” by requiring all U.S. traders on oil futures markets to report transactions in a detailed manner to the CFTC. The bill also directs the CFTC to investigate the impact of these trades on the price of oil.

* Finally, the legislation would move the CFTC’s Inspector General’s office out from under the office of the agency’s chairman, giving it clear independence.

Durbin Promises More Market Oversight Staff and Computer Technology to CFTC to Fight Excessive Oil Speculation
After hearing Lukken's testimony today, Sen. Durbin released the following statement:

"Increasing evidence shows that the run-up in crude oil prices and gasoline is being driven by larger trader banks, pension and hedge funds. Speculation may have as much, if not more, to do with high gas prices than any Saudi sheik.

"The announcement at our hearing that CFTC it is now going to require more complete disclosure of speculative trading information is critical to stopping the excessive speculation and market manipulation that is driving up gasoline prices.

"Now, we need to give this agency the professionals and computer tools they need to stop any market manipulation. As chairman of the Appropriations Subcommittee which oversees the agency’s budget, I will work to secure a substantial increase in CFTC’s funding to make sure it has the resources to keep excessive oil speculation in check."

GoodBiz113's take: Now that gas has topped the $4-per-gallon tipping point in many U.S. markets, the oversight efforts of Sens. Dick Durbin and Tom Harkin are greatly needed and appreciated -- by consumers, small-business owners [e.g., farmers, independent truckers], air transport carriers, plus countless other entities. We applaud the senators for investigating the roles that CFTC and other entities play during this unprecedented run on oil and gas prices [oh, and the fattest paychecks that Big Oil CEOs have ever received], and for taking action to halt the excessive speculation and market manipulation that's driven those prices sky-high.
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Bush Administration Failing to Safeguard Taxpayer Dollars Targeted to Small Businesses

Today, Sen. John Kerry [D-Mass., pictured] called on the Bush administration to protect taxpayer investments in government-backed small-business loans, and reinstate a program that uses lenders to recoup losses from defaulted loans.

There is currently an estimated $404 million in fixed asset loans through the U.S. Small Business Administration’s [SBA] CDC/504 Program in default. Yet, the Bush administration has failed to request $2 million to fund the program that reimburses 504 lenders for loan-recovery costs and, last Friday, the Bush administration announced it intends to suspend the program.

“The Bush administration’s willingness to stick taxpayers with a $400 million bill is just bad business,” said Sen. Kerry, chairman of the Committee on Small Business and Entrepreneurship. “The choice is clear: Spend $2 million today to help recover up to $404 million in defaulted loans, or continue on the current course of failed oversight and inadequate liquidation staff.”

Last week, the Bush administration admitted it made a mistake in the agency’s 2008 and 2009 budgets to cover costs incurred by Certified Development Companies [CDCs] that liquidate the defaulted 504 loans. However, instead of working with Congress to reprogram funds or seek additional funding in the budget, the SBA has changed the rules for lenders currently liquidating loans, and is working to get rid of the program. At the same time, the agency does not have enough resources to liquidate almost 1,000 defaulted 504 loans worth an estimated $404 million, currently in some stage of liquidation.

In 2000, Congress passed a law to delegate liquidation authority to CDCs because the SBA did not have a good track record for maximizing recoveries. After seven years, the SBA finally established reimbursement rates in April 2007. Then, on Friday, April 4, 2008, the SBA announced it would no longer provide those incentives to CDCs for future liquidations, and would reduce the reimbursement rate for CDCs for loans they were in the process of liquidating.

In 2003, SBA eliminated almost 200 staff from across the country who were responsible for overseeing loan liquidation, leaving only about eight full-time staff to oversee 504 loans in default.

Last year, Sen. Kerry introduced bipartisan legislation that would strengthen liquidation aspects of the 504 loan program. The Small Business Lending Reauthorization and Improvements Act, S. 1256, passed out of the committee, but Republican leadership in the Senate has blocked full Senate consideration.


Below, are Senator Kerry’s two letters to the Small Business Administration:

April 7, 2008

The Honorable Steven C. Preston
Administrator
U.S. Small Business Administration
409 Third Street, S.W.
Washington, D.C. 20416

Dear Administrator Preston:

Last week I wrote to you and asked if you would delay publishing a notice in the Federal Register that would interfere with the liquidation of defaulted 504 loans. The notice is controversial, and I wanted to work with you to pursue what I believed, in talking to the SBA and the SBA’s lending partners, would be a better solution to address your lack of funding for reimbursements and the overall liquidation problem. Unfortunately, you went forward and published the notice despite my objections.

Because the underlying problem was caused by the SBA’s accounting error, I have a hard time understanding why the Administration has refused the Committee’s suggestion to seek a reprogramming or amend its budget request in order to correct the agency’s own mistake. Moreover, preservation of the 504 liquidation reimbursement program will save the SBA money in the long run.

If SBA estimates it will need about $2 million for reimbursements, that seems like a wise investment -- as opposed to continuing with the current liquidation system, in which SBA has let more than 200 of the almost 1,000 defaulted loans languish for so long that, in SBA’s words, there is “little or no remaining residual value” to recover, and therefore expects to charge them off.

The Committee has been told those loans are worth as much as $100 million. If the reimbursements were to continue, and CDCs were to continue to liquidate loans, even if they recovered a mere $4 million, the SBA would still be ahead.

Please provide the Committee with the total number and dollar amount of 504 loans to be charged off, and how that will affect the subsidy rate and fees on the borrowers and lenders who pay to participate in the 504 Loan Guaranty Program.

Please also provide the Committee with the estimated funding SBA would need to continue the reimbursements, instead of permanently suspending the practice, and explain why you will not pursue the funding in order to reimburse CDCs for their liquidation efforts and help protect the SBA’s 504 loan program.

I ask that you please provide the Committee with a response by Monday, April 14, 2008.

Sincerely,

John F. Kerry
Chairman

***

April 3, 2008

The Honorable Steven C. Preston
Administrator
U.S. Small Business Administration
409 Third Street, S.W.
Washington, D.C. 20416

Re: Compensation to CDCs for 504 Loan Liquidation Expenses

Dear Administrator Preston:

I am writing to urge the Small Business Administration to delay publishing a notice in the Federal Register that would interfere with the liquidation of defaulted 504 loans. Specifically, I am referring to the Agency’s intention to publish a notice tomorrow that would reduce the compensation rates for costs incurred by authorized Certified Development Companies to liquidate defaulted 504 loans, and then 90 days after the publication of that notice to suspend all compensation for any 504 loan debenture not yet purchased.

I understand that the Agency made a mistake in not requesting funding to reimburse authorized Certified Development Companies for these purposes in its FY2008 and FY2009 budgets, and I appreciate your leadership in admitting that mistake to our Committee. Nevertheless, I do not believe the solution is suspending reimbursements, which will exacerbate SBA’s liquidation problems.

We are told that SBA has nearly 1,000 loans, worth about $404 million, in some state of liquidation spread among the Little Rock, Fresno and district offices -- with only about eight staff dedicated to 504 liquidation, supported by district counsel who have many responsibilities. The growing number of loans in liquidation validates my concern and opposition to the Agency’s elimination of the almost 200 liquidation staff in the districts more than four years ago.

If the Agency stops compensating authorized Certified Development Companies that are currently helping liquidate defaulted loans, it will reduce their activities and exacerbate the SBA’s existing problems.

A better solution is for the Agency to right its budget mistake by seeking permission from the appropriators to reprogram funding to cover the estimated amounts needed -- a modest $1 million or $2 million by SBA’s estimates -- or send up an amended budget request for FY2009, as the President did in July 2005 for the FY2006 budget, requesting the appropriate funding. Otherwise, the longer SBA takes to liquidate loans, the less ability it has to recover funds through the property or from the guarantors, increasing the risk of writing off loans that average about $500,000.

It would be far more cost-effective to seek the modest amounts for compensation than to increase the number of loans SBA must write off. The Administration should also consider requesting additional funding for the now obvious shortage of liquidation staff.

Further, there is a question as to whether the SBA even has the right to change the maximum compensation rates that were published in the final rule on April 12, 2007, without putting the change out for public comment.

We understand from conversations with staff that the SBA is relying upon a provision in the Administrative Procedures Act to take the action in question. Before publishing this notice, please submit to the Committee an explanation, in detail, with statutory and regulatory references, of what legal justification the Agency is relying upon to suspend the notice and comment procedure its proposed action would normally require.

Last, my staff sought information from the SBA regarding this issue a month ago, on February 29th, 2008. The Agency never responded until it requested a briefing for yesterday, in which the Committee was informed that the Agency would publish the notice in less than 48 hours. Given the Agency’s silence for a month, and then the very short notice, I would hope that you would delay publication of the changed and suspended compensation fees, at the very least until the Committee receives the Agency’s legal justification for moving forward.

Sincerely,

John F. Kerry
Chairman


GoodBiz113's take: Once again, Sen. Kerry has stepped up to speak truth to power, to protect small-business owners' interests. We're fortunate to have his advocacy -- especially, during these challenging economic times.

SOURCES: GovTrack.us, U.S. Senate Committee on Small Business and Entrepreneurship
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Committee Announces Investigation of Veterans Business Center Funding Management

Sens. John Kerry [D-Mass.] and Olympia J. Snowe [R-Maine], chairman and ranking member of the Senate Small Business and Entrepreneurship Committee, today announced that they are investigating the management of the National Veterans Business Development Corporation [Veterans Corporation], a nonprofit organization created by Congress in 1999.

The purpose of the Veterans Corporation was to “. . . establish and maintain a network of information and assistance centers for use by veterans and the public.” However, despite receiving enough money to fund three veterans business resource centers in St. Louis, Mo., Boston, Mass., and Flint, Mich., the Veterans Corporation has failed to provide adequate center funding. As a result, the St. Louis center announced today that it expects to close its doors in April.

Sens. Kerry and Snowe have been pressing the Veterans Corporation to fund veterans business resource centers since September, and began investigating the group in December.

In fiscal year 2007, the Veterans Corporation was funded at $1.5 million, from which the three centers received a total of $470,000. In fiscal year 2008, the Veterans Corporation received $1.4 million, yet only granted a total of $135,000 to the St. Louis and Flint centers – not enough for them to remain operational.

“We are determined to continue the fight for economic opportunity for veterans who have made tremendous sacrifices for our country,” Kerry and Snowe said in a joint statement. “Congress created the Veterans Corporation nine years ago to establish and maintain veterans business resource centers that would help our veterans start or expand businesses. The closing of the center in St. Louis underscores our deep concern that the Veterans Corporation has abandoned their mission.

"We have been pressing the Veterans Corporation to fund veterans business resource centers since September. As the leaders of the committee with jurisdiction over the Veterans Corporation, we began collecting information in December, and will announce the results of our investigation later this year.”

Below are letters to the Veterans Corporation from Sens. Kerry and Snowe:

* February 11, 2008: http://www.sbc.senate.gov/lettersout/080211-NVBDCBlackwell-FY08grant.pdf

* December 21, 2007: http://www.sbc.senate.gov/lettersout/071219-NVBDCBlackwell-TVCfunds.pdf

* September 21, 2007: http://www.sbc.senate.gov/lettersout/070921-BlackwellVeteransBDCgrants.pdf

GoodBiz113's take: We need, and deserve, more bipartisan efforts such as this to hold all federal agencies and their funded entities accountable for U.S. taxpayers' dollars.

Source: U.S. Senate Committee on Small Business and Entrepreneurship
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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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House Approves Bill to Improve Contracting Opportunities for Small Firms

Today, the House of Representatives passed the Small Business Contracting Program Improvements Act [H.R. 3867] by a margin of 334 to 80. Small Business Committee Chairwoman Nydia M. Velázquez [D-N.Y.] gave the following opening statement:

"In recent years, the federal marketplace has seen phenomenal growth. However, while procurement opportunities are increasing, agencies are failing to meet their small-business-, women-, service-disabled veterans-, minority- and low-income contracting goals. This has not only cost small businesses billions in lost opportunities, but deprives the government of a valuable supplier.

"Our nation’s entrepreneurs play an important role in the procurement system, providing diversity, competition, and ensuring we get the best value for the taxpayer dollar. To help them get a start, there is an array of contracting programs offering technical assistance, purchasing flexibility, and targeted benefits.

"Unfortunately, due to legislative neglect, underfunding and mismanagement by several administrations, the programs have fallen far short of their full potential, leaving many small businesses outside of the federal marketplace. The Small Business Contracting Program Improvements Act, introduced by myself and Rep. Mary Fallin [R-Okla.], will change that by making important improvements to women, minority, HUBZone, and service-disabled veteran contracting programs.

"H.R. 3867 will immediately implement the Women’s Procurement Program that has languished in the current administration’s endless delays. It also updates the economic criteria for the 8[a] program, reflecting current fiscal realities. The last time Congress addressed the 8[a] program was almost 20 years ago, when a gallon of gas was 90 cents and the average cost of a home was less than $90,000. For too long, we have forced minority businesses to operate under antiquated financial standards that, in many cases, were simply setting them up to fail.

"Most importantly, this legislation will give our service-disabled veterans top priority when it comes to contracting opportunities. For those men and women returning from Iraq and Afghanistan -- many with life-altering injuries -- this bill will provide the tools to start a new endeavor and begin a new life. These changes will go a long way to addressing many of the program shortcomings that have frustrated our nation’s small-business owners.

"H.R. 3867 also fights fraud in the federal marketplace. Contracting opportunities are a privilege, not a right; the Small Business Contracting Improvements Act makes that clear. For the first time, we are imposing a business code of conduct on all participants, requiring the federal government to verify that individuals are who they claim, and empower small firms to police their own programs. This will restore integrity to these critical programs.

"Through modernizing programs and increasing accountability, H.R. 3867 brings SBA’s contracting programs into the 21st century. It is for this reason that this legislation has attracted remarkably broad support -- including the National Federation of Independent Business, Associated General Contractors, American Legion, Veterans of Foreign Wars, United States Hispanic Chamber of Commerce, National Black Chamber of Commerce, U.S. Women's Chamber of Commerce, International Franchise Association, as well as the National Defense Industrial Association and the Aerospace Industries Association.

"This is a measured approach that balances the need to give program flexibility within the realities of current agency buying strategies. It is good for small business, good for the agencies and, most importantly, good for the taxpayers."

GoodBiz113's take: Thank you, Reps. Velázquez and Fallin, for leading House efforts to level the playing field for all small businesses and holding agencies accountable for how, exactly, federal procurement dollars are spent. This bipartisan legislation offers great promise to any of our nation's small businesses -- 26.8 million and counting -- that choose to play the government contracting game and spread the win-win-win wealth.

Source: GovTrack.us, PBS [file photo], U.S. House Small Business Committee
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Bush Vetoes Bipartisan SCHIP Bill; 72% of Americans Favor Increased Children's Health Insurance Funding

One week after the U.S. Senate passed bipartisan legislation that will improve accessibility of the State Children’s Health Insurance Program [SCHIP] program -- a plan that provides health insurance for millions of kids who wouldn't otherwise have health care -- President Bush vetoed the bill to increase funding by $35 billion.

Why should GoodBiz113 readers care? First off, SCHIP is simply good, solid, humane legislation. Secondly, because Sens. John Kerry [D-Mass.] and Olympia Snowe [R-Maine], both of whom devotedly serve on the Committee for Small Business and Entrepreneurship, had attached an amendment to the legislation to enroll more children in the program -- i.e., children of small-business owners, their employeees, self-employed people, and entrepreneurs.

Bush's proposal of a mere $5 billion funding increase would not have even kept pace with inflation and spiraling medical costs. Further, for a president whose generous tax cuts for the wealthy, and whose administration has erased a budget surplus, crying for frugality now seems unconscionably incongruent.

Recent polls have shown that an overwhelming majority of people -- 72%, according to a Washington Post-ABC News survey -- favor the proposed SCHIP funding measure. Fully 86% of the American people support reauthorizing SCHIP.

More specifically, as GoodBiz113 reported last week ["OPEN: Small-Business Owners Hold the Line on Hiring, Remain Focused on Growth in Uncertain Economy"], nearly early eight in 10 [79%] small businesses would consider proposed health-care policy solutions as a way to make health care accessible. More than half support a plan that would "ensure every child in the U.S. has health insurance" [58%], or "provide tax credits to low-income workers to help pay for health care" [54%].

Still, the president stubbornly refuses to acknowledge the will of Americans on this issue -- just as he does on the war in Iraq, which he contends is key to our nation's security. He fails to recognize that security of the nation's children also is in jeopardy when it comes to lack of health care.

"If government-supported health care is good enough for President Bush, why isn’t it good enough for America’s children?" poses senior Sen. Ted Kennedy [D-Mass., pictured above], who introduced SCHIP legislation 10 years ago. "We can be a voice for the nation's children -- a voice that every member of Congress needs to hear. If government-supported health care is good enough for Congress, it’s good enough for America’s children."

Exercise Your Voice
On Oct. 18, Congress will vote on overriding Bush's veto. If you'd like to voice your views to your elected officials before then, please do so at your earliest possible opportunity.

You can find your U.S. Senators here: http://www.senate.gov/

You can locate your U.S. House representative via this link: http://www.house.gov/

Sources: ABC News, OPEN from American Express, Washington Post
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Sen. Kerry Expresses Posthumous Praise for Former Congressman Parren James Mitchell, Champion of Civil Rights and Minority Entrepreneurship

Yesterday, Sen. John Kerry [D-Mass.], chairman of the Committee on Small Business and Entrepreneurship, issued the following statement on the passing of former Congressman Parren James Mitchell [April 29, 1922-May 28, 2007], who died last week of complications from pneumonia:

“With the passing of Congressman Parren Mitchell, our country has lost one of its legendary advocates for minority business owners, a giant who knew that the struggle for civil rights and equal opportunity would be decided in America’s board rooms as well as its voting booths and lunch counters.

“Congressman Mitchell fought with heart, grit, integrity, and determination to level the playing field so more minority firms could do business with the federal government. He didn’t just serve as chairman of the House Small Business Committee, he served as Congress’s conscience.

"His life was an incredible story. From breaking racial barriers at the University of Maryland, to serving as chairman of Minority Business Enterprise Legal Defense and Education Fund, Parren Mitchell was a pioneer in the fight to ensure equal rights for minorities.

“In the Senate Committee on Small Business and Entrepreneurship, we will honor his work and preserve his ideals by passing laws that continue to expand opportunity for all Americans who have been shut out or left behind.”

Sources: U.S. Senate Committee on Small Business and Entrepreneurship, Washington Post, Wikipedia [photo]
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House Committee Approves Bill to Help Small Business Cope With Rising Energy Costs

Rising energy costs have hit small businesses especially hard over the past few years, impacting their daily operations and forcing many to alter their business models. To help small businesses cope with climbing energy prices, the House Small Business Committee approved legislation, H.R. 2389, the Small Energy Efficient Business Act [SEEBA], to provide loans, education, and investment to small firms for energy efficient buildings, fixtures, equipment and technology.

"Small businesses nationwide are struggling as energy becomes increasingly expensive," said Chairwoman Nydia M. Velázquez [D-N.Y.]. "It is clear that swift action is needed to help firms deal with the record gas and energy prices. One way to do this is ensuring entrepreneurs are educated and aware of the assistance available to them, as well as helping them to remain the top producers of alternative sources of energy."

Addressing these challenges, the committee approved legislation yesterday that modifies existing Small Business Administration [SBA] programs to better assist small companies with adapting to today's changing energy environment. SEEBA, introduced by Congressman Heath Shuler [D-N.C.], gives small firms that are acquiring or developing energy efficient technologies more flexible loan terms.

SEEBA requires SBA to develop a strategy for educating small firms about energy efficiency, and establishes an energy efficiency program for the Small Business Development Centers [SBDCs]. The bill effectively spurs investment in the production of alternative sources, such as biofuels.

H.R. 2389 also promotes development of energy efficient technology by expanding the Small Business Investment Company [SBIC] program, increasing investment in small producers. Creation of the Renewable Fuel Capital Investment [RFCI] program, an initiative designed to help small firms develop renewable energy sources and new technologies, is also included.

Collectively, these measures benefit consumers and producers, thus reducing costs and increasing competition in the market for energy efficient goods and services.

"Small businesses are the first to be affected by rising energy prices, and small businesses will be the first to find the solutions," said Shuler, chairman of the Subcommittee on Rural and Urban Entrepreneurship. "This bill gives them the tools they need to lead our nation to energy efficiency and independence."

SEEBA will make new, energy efficient technology more affordable and accessible. As consumption grows an anticipated one percent annually over the next 25 years, costs for traditional energy sources will continue to increase.

H.R. 2389 will provide technical assistance to help small business owners implement strategies to mitigate energy costs. It also launches a comprehensive plan to disseminate energy efficiency information through programs that are already positioned around the country.

SEEBA will not only help small businesses cope with rising costs, but will also increase investment in small firms that are developing renewable energy solutions, recognizing the leadership of entrepreneurs in the alternative-energy sector.

This bill provides both business development resources and injections of capital that will contribute to creating the next generation of technologies. Simply put, SEEBA is essential to helping small firms cope with rising energy costs and, thus, reducing the nation's dependence on foreign oil.

"Small businesses have proven themselves to be flexible and nimble, adapting to changing to market conditions," said Chairwoman Velázquez. "The legislation approved gives entrepreneurs the tools to implement energy efficient strategies and develop renewable-energy technologies."

H.R. 2389 has garnered support from a wide array of small-business organizations, including: Independent Electrical Contractors, Air Conditioning Contractors of America, National Roofing Contractors Association, Plumbing-Heating-Cooling Contractors Association, National Small Business Association, and Small Business Majority.

GoodBiz113's take: Four months into his new job in Congress, former NFL quarterback Heath Shuler is already scoring on behalf of small businesses -- and everyone else who seeks sustainable energy technologies and energy independence. He's to be commended for taking far-reaching initiative. Congresswoman Velázquez deserves kudos, too, for empowering him to, well, "run with the ball."

Sources: Library of Congress, PBS [photo], U.S. House Small Business Committee
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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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