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

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

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

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

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

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

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

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

About SBA's Small Business Procurement Scorecard

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

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

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

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

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

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

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

SOURCES: U.S. Senate Committee on Small Business and Entrepreneurship, U.S. Small Business Administration
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Landrieu Votes Against Snowe Regulatory Amendment, Citing Lack of Congressional Review

Today, United States Sen. Mary L. Landrieu [D-La., pictured], chair of the Senate Committee on Small Business and Entrepreneurship, voted against a regulatory reform amendment by Sen. Olympia J. Snowe [R-Maine], ranking member of the Small Business Committee.

The Freedom from Restrictive Excessive Executive Demands and Onerous Mandates Act of 2011, S. AMDT 390, reforms the regulatory process to ensure that small businesses are free to compete and to create jobs, and for other purposes. It was opposed by numerous Senate committees because of the lack of congressional input in the ongoing efforts to provide regulatory relief for small businesses.

"Every day, small-business owners come to my office asking for regulatory relief, and I am committed to removing unnecessary burdens that get in the way of the day-to-day operations of businesses," said Landrieu. "This amendment, however, has yet to have a single Congressional hearing. Because Sen. Snowe’s amendment reaches so far outside of the realm of small business, it seems irresponsible for us to move forward unless it goes through the entire process.

"There have been at least four other regulatory reform bills filed this Congress, and I know the chair of the committee of jurisdiction is doing everything he can to schedule a full hearing in the near future.

"I recognize that some federal regulations are a burden on small businesses. I agree it is important to streamline them -- but there is a time and a place to deal with that issue.

"I have tried to be helpful to my colleague. Last summer, when the Small Business Jobs Act was pending here in the Senate, I personally worked with my ranking member to include several of her provisions on regulatory relief into that bill, now law."

Snowe filed a similar amendment to S. 493, the SBIR/STTR Reauthorization Act of 2011. During negotiations of S. 493, Landrieu offered to hold a hearing on Sen. Snowe’s regulatory reform amendment through the Small Business Committee, but Snowe declined. After five weeks of debate and 150 filed amendments, efforts to end debate and pass the long-term reauthorization of this important small-business program failed.

SOURCES: GovTrack.us, Library of Congress, U.S. Senate Committee on Small Business and Entrepreneurship, U.S. Small Business Administration
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Sens. Landrieu, Snowe Honor Entrepreneurial Spirit in America

Late yesterday, the U.S. Senate passed a resolution introduced by Senators Mary L. Landrieu [D-La., pictured] and Olympia Snowe [R-Maine], chair and ranking member of the Senate Committee on Small Business and Entrepreneurship, respectively, highlighting the critical role that small businesses play in our nation’s economy.

The President signed a proclamation declaring the week of May 15, 2011, as National Small Business Week, honoring our country’s 27.2 million small businesses, and the owners and employees of these firms.

"During National Small Business Week, we honor the nation’s small businesses and entrepreneurs who take risks and start their own businesses," said Landrieu. "It has been a challenging, exciting and, in some ways, promising two years for small businesses, but our work in Congress cannot stop.

"America’s entrepreneurs deserve the recognition of our nation and need the support of Congress to boost job creation and economic growth. As we reflect on the contribution small businesses have made to our economy, I encourage all Americans to celebrate entrepreneurs across America and take a moment to visit your town’s small businesses.”

"National Small Business Week is a time to recognize the extraordinary contributions that small businesses make to the health and vitality of our economy," Snowe noted. "With nearly 30 million small businesses nationwide -- and 150,000 in Maine alone -- these firms are the engines of our economy, and our lifeline to emerge from this economic downturn.

"I hope my colleagues in Congress will join me in celebrating small businesses every week of the year, by reflecting on the countless contributions these firms make to our nation, and focusing on initiatives that enhance -- not inhibit -- their ability to prosper, innovate and create well-paying jobs for Americans."

National Small Business Week Marks 48 Years

Every year since 1963, the President has recognized entrepreneurs by proclaiming National Small Business Week. This resolution expresses the Senate’s appreciation of the efforts and achievements on the part of small-business owners and employees, whose hard work and commitment to excellence have made these firms a key part of the economic vitality of the United States.

According to the Small Business Administration, small firms constitute 99.7 percent of all U.S. employers, and account for roughly half of the nation’s private-sector jobs.

To see the complete resolution, please click here.

SOURCES: U.S. Senate Committee on Small Business and Entrepreneurship, U.S. Small Business Administration
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Senators Introduce Bipartisan Legislation to Fight Fraud in Government Contracting Programs

Senators Olympia J. Snowe [R-Maine, pictured], Mary Landrieu [D- La.], Scott P. Brown [R-Mass.], Jeff Merkley [D-Ore.], and Mike Enzi [R-Wyo.], have introduced bipartisan legislation to combat contracting fraud at the U.S. Small Business Administration [SBA]. Their initiative comes on the heels of several vulnerabilities and abuses in nearly all of SBA’s contracting programs, as identified in multiple reports by the nonpartisan Government Accountability Office [GAO].

"Exercising thorough oversight to ensure SBA’s contracting programs are efficient, effective, and accountable is a top priority," said Sen. Snowe, ranking member of the U.S. Senate Committee on Small Business and Entrepreneurship. "This legislation is a critical step towards ensuring all of our nation’s small businesses compete fairly in the federal marketplace."

Citing a March 12 Washington Post report that "Government officials were not monitoring contracts for compliance with rules," Sen. Snowe called SBA’s current oversight efforts deficient. "As I told the deputy administrator of the SBA at a recent Small Business Committee hearing," she noted, "the ultimate authority for monitoring fraud lies with the SBA when it comes to government management of hard-earned taxpayer dollars."

"When ineligible firms are awarded federal government contracts through fraudulent means," declared Senate Small Business Committee Chair Sen. Landrieu, "this reduces the number of opportunities available to honest, qualified small businesses.

"Government contracts are perhaps one of the easiest and most inexpensive ways the federal government can help immediately increase sales for America’s entrepreneurs, giving them the tools they need to keep our economy strong and create jobs. This legislation gives the SBA and the inspector general the tools necessary to combat fraud. We intend for the SBA to hold firms accountable."

"With our nation facing record debt and deficits, it is absolutely critical that taxpayer dollars are used judiciously to ensure that small-business contracting programs benefit the rightful recipients," said Sen. Brown, a member of the Senate Small Business Committee. "This bipartisan legislation is a strong step toward ensuring that our contracting programs are operating effectively and efficiently."

"Small businesses are the backbone of our community and the drivers of economic growth," said Sen. Merkley. "The programs that support and assist them should not be diverted or diluted because of waste, fraud of abuse. This bill will help refocus SBA programs like a laser on the needs of our small-business owners."

"We have a situation now where bad actors are snapping up opportunities that would greatly benefit legitimate small businesses," added Sen. Enzi. "This bill would help ensure that those who provide real jobs and quality goods and services are the ones getting the contracts."

Specifically, the Small Business Contracting Fraud Prevention Act of 2011 [S. 633] would provide a comprehensive oversight framework within SBA to execute effective certification, surveillance and monitoring, as well as robust enforcement of its entire contracting portfolio. The bill would also increase criminal penalties for businesses awarded contracts through fraudulent means.

SOURCES: GovTrack.us, U.S. Senate Committee on Small Business and Entrepreneurship
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Landrieu Praises Extension of Important Recovery Act Lending Provisions to Benefit Small Businesses

Late last evening, United States Senator Mary L. Landrieu [D-La., pictured], chair of the Senate Committee on Small Business and Entrepreneurship, commented on passage of the extension of several American Recovery and Reinvestment Act [ARRA] provisions that were set to expire on April 30, 2010. The extension provided $80 million to extend the higher guaranty for 7[a] loans, plus fee waivers for borrowers of 7[a] and 504 Small Business Administration [SBA] loans.

These measures complement recently enacted small-business tax incentives included in the HIRE Act -- such as the new-hire payroll tax exemption, and the extended section 179 small-business expensing provision. The Senate voted 59-38 to extend the provisions that eliminated borrower fees for small businesses looking to grow their companies through May 31, 2010.

"The Recovery Act provisions extended tonight will continue to free up credit for small businesses looking to expand, hire new workers or upgrade equipment," said Sen. Landrieu. "I applaud my colleagues in Congress for recognizing the success of these lending programs, and thank them for their continued support of small businesses across the country. Ranking Member Olympia Snowe [R-Maine] has shown her commitment to true bipartisanship for the good of small businesses still struggling to stay afloat.

"As we continue to support America’s entrepreneurs, we must continue to look at a longer-term extension of these provisions to continue this country’s small-business growth. The Small Business Committee has a package of proposals that have passed the Committee by wide, bipartisan margins, and we will continue to work on their inclusion in the next jobs bill debated by the Senate and urge their swift adoption."

SOURCES: Internal Revenue Service, U.S. Senate Committee on Small Business and Entrepreneurship, U.S. Small Business Administration
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Sens. Landrieu, Snowe Call for GAO Investigation Into Small-Business Hurricane Recovery Efforts

U.S. Senate Committee on Small Business and Entrepreneurship Chair Mary Landrieu [D-La.] and Ranking Member Olympia J. Snowe [R-Maine] today wrote to Gene L. Dodaro [pictured], acting comptroller general of the U.S. Government Accountability Office, requesting a progress report on Gulf Coast small-business recovery efforts. The senators expect that the investigation will be completed ahead of the fifth anniversaries of hurricanes Katrina, Rita and Wilma in August 2010.

After the 2005 storms, "The region’s small businesses experienced massive losses that caused great harm to those businesses’ owners, employees and customers," Sens. Landrieu and Snowe wrote. "Federal assistance to small businesses has been, and continues to be, imperative for the region’s economic recovery."

The investigation is meant to focus on the Small Business Administration’s disaster loan program and state-administered business assistance programs funded by Department of Housing and Urban Development’s community development block grants. The senators also requested details on federal recovery contracts received by small businesses in the Gulf Coast region.

"We would also like you to provide information on the current state, and improvements in, the region’s small-business economy," the senators wrote.

For further details of the request, please view the letter here: http://bit.ly/7DeAT.

SOURCES: U.S. Government Accountability Office [photo], U.S. Senate Committee on Small Business and Entrepreneurship, Wikipedia
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Verbatim: Influencers on Sotomayor, Small-Biz Lending, Broadband, New Native American Leadership, National Cybersecurity, Net Neutrality

As often as possible, GoodBiz113 presents diverse perspectives on small business and entrepreneurship from those who help shape small-business policies and practices, as well as those who report on small-biz-related developments. Here's what some folks said last week...

"...Generally speaking, Sotomayor is also considered pretty moderate, at least when it comes to other issues businesses care about, such as limiting class action lawsuits and pre-empting state laws with federal laws, several attorneys said. She has ruled for investors and companies in many different types of cases..." -- CNNMoney.com senior writer Jennifer Liberto, comparing U.S. Supreme Court nominee Sonia Sotomayor [pictured] to outgoing Justice David Souter. [May 26, "Sotomayor: Important Business Awaits," CNNMoney.com]

* * *

"In the current financial climate, it’s especially critical for small firms to know which banks and financial institutions have been the most likely to make small and microbusiness loans." -- SBA Office of Advocacy economist Victoria Williams, upon release of a study that ranks banks on small-business lending and provides hints about current financial trends.

According to the latest edition of the Office of Advocacy’s annual study of lending to small firms, Williams and co-author Charles Ou, a senior economist, found that the growth of small and microbusiness lending remained positive during the first half of 2008, although the expansion was slower than in the previous year. Their new report, "Small Business and Micro Business Lending in the United States for Data Years 2007-2008," gives a detailed account of small-business lending overall, plus state-by-state totals and totals for individual lenders. The full study, including expanded state-by-state tables, is available online at: http://tinyurl.com/n2okmh.

The U.S. Small Business Administration's Office of Advocacy, the "small-business watchdog" of the federal government, examines the role and status of small business in the economy and independently represents the views of small business to federal agencies, Congress, and the President. It is the source for small-business statistics presented in user-friendly formats, and funds research into small-business issues. [May 26, SBA Office of Advocacy]

* * *

"Ensuring that every American has access to broadband services is an important policy goal for the new Administration. With the passage of the American Recovery and Reinvestment Act of 2009, Congress and the Administration directed a number of federal agencies, including the Federal Communications Commission [FCC], to work toward this goal...

"Because small businesses are the heart of the American economy, they are critical to driving an economic recovery. However, access to modern technologies, including broadband, is critical to allow small businesses to grow. At the same time, small broadband providers will supply the competition and innovation necessary to expand advanced telecommunications services to all Americans. The Office of Advocacy will continue to play a leading role in ensuring that the needs of all small businesses are represented in the federal government throughout this process." -- Shawne McGibbon, acting chief counsel for SBA's Office of Advocacy, reporting that the FCC has launched a 13-month effort to develop a national broadband strategy to be presented to Congress by Feb. 17, 2010 [May 27, "Got Broadband? A National Broadband Strategy for Small Business," The Small Business Advocate]

* * *

“The SBA’s plan to offer floor-plan loans to America’s dealerships will help small businesses stay open in this uncertain economy... These loans will enable dealerships to maintain their inventory and save jobs. The provisions that the Small Business and Entrepreneurship Committee secured in the Recovery Act will also make floor-plan financing more affordable by eliminating borrower fees on the loans. This is another critical step toward increasing access to capital for America’s small businesses.” -- Sens. Mary Landrieu [D-La.] and Olympia Snowe [R-Maine], chair and ranking member, respectively, of the U.S. Senate Committee on Small Business and Entrepreneurship, commenting on the SBA's announcement that the agency will waive its floor-plan lending prohibition that is currently part of the 7[a] loan guarantee program.

The policy change will allow the SBA to guarantee up to 75 percent of floor-plan loans to dealerships to purchase cars, RVs, manufactured homes, boats and motorcycles. Floor-plan loans will be available for a minimum of $500,000 up to the $2 million allowable under the 7[a] program, and have a maximum repayment term of five years.

Floor-plan financing is a line of credit that allows dealers to borrow against their inventory, and then repay that debt as they sell their inventory or borrow against the line of credit again to add new inventory. Under the new program, the SBA will provide loan guarantees for lines of credit through its 7[a] program. These loans will be made through SBA lenders only for titled inventory. The pilot program will begin July 1 and will be available through Sept. 30, 2010, at which time the SBA will make the determination of whether or not to extend the program. [May 28, U.S. Senate Committee on Small Business and Entrepreneurship]

* * *

“I am pleased to have Clara Pratte joining our team at the SBA in this vital post... Clara’s background and experience will be an asset as we strengthen our efforts at the SBA to support the growth and development of small businesses and the economic opportunities they provide for Native Americans.” -- SBA Administrator Karen G. Mills announcing the appointment of Clara Pratte as national director for the agency’s Office of Native American Affairs.

As national director, Pratte will help to ensure that American Indians, Native Alaskans and Native Hawaiians seeking to create, develop and expand small businesses have full access to the necessary tools available through the SBA’s entrepreneurial development, lending and procurement programs. [May 29, U.S. Small Business Administration]

* * *

"[The President] committed to protect the Internet from those who would sacrifice the openness and freedom of the Internet for their own parochial interests when he said he 'remained firmly committed to net neutrality'... This makes sense in an announcement on the nation’s cyber infrastructure, because having Internet traffic content neutral is what everyone -- from the small-business owners to venture capitalists Obama mentioned in his speech -- rely on daily to do their jobs.” -- Ed Black, president of the Computer & Communications Industry Association, after President Barack Obama announced that he will soon name a national cybersecurity coordinator to protect America's communications and information infrastructure, and that the government is going to start treating the nation's digital infrastructure, broadband networks and computers as strategic national assets that should be "open and free." [May 29, "Obama Committed to Network Neutrality," Broadcasting & Cable]

SOURCES: Broadcasting & Cable, CNNMoney.com, The Small Business Advocate, U.S. Senate Committee on Small Business and Entrepreneurship, U.S. Small Business Administration, The White House [photo]
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Karen Gordon Mills Unanimously Confirmed as SBA Administrator By U.S. Senate

The U.S. Senate unanimously confirmed late last night President Barack Obama’s nomination of Karen Gordon Mills [pictured] as the 23rd Administrator of the U.S. Small Business Administration.

“Small business is the backbone of the American economy,” Mills said upon her confirmation. “The SBA has a vital role to play in supporting our nation’s small businesses, so that they can be the key driver in getting our economy moving again. I look forward to leading this critical agency at this important time.

“I want to thank President Obama for this opportunity to serve as a voice for our nation’s small-business owners and entrepreneurs. I would also like to express my appreciation to Darryl Hairston for his leadership as Acting Administrator during this transition, along with everyone at the SBA, for the hard work they are doing to implement the important programs of the Recovery Act.”

In testimony on April 1 before the Senate Committee on Small Business and Entrepreneurship, Mills discussed her hands-on experience managing and helping to grow small businesses.

“I was there on the factory floor in Arkansas and Ohio, working to weather the recession of the early ‘90s,” she said. “Those experiences give me a deep understanding of what our small businesses need today to survive this downturn and to prosper in the years ahead. Since then, I have helped grow companies in organic food and women’s media, and spent time in rural Maine working with our boat builders and composite technology to help them compete throughout the globe.

“The sum of my experience is this: I am a believer in American small business. I am a believer in America’s ability to manufacture goods and services that are world-class, and I am a believer in America’s spirit of entrepreneurship. This spirit is one of our country’s greatest assets, and we need to cultivate it today more than ever.”

“The unanimous confirmation of Karen Mills to serve as SBA Administrator further shows that she is the right person to lead the agency at this crucial time,” said Sen. Mary Landrieu [D-La.], chair of the Small Business Committee, which unanimously reported Mills' nomination to the full Senate. “Ms. Mills’ background as an entrepreneur and community leader, coupled with her vast experience and education, put her in the right position to assume the reigns of the SBA. I am confident that, under her leadership, the agency will be better equipped to assist small businesses throughout the country.”

“I am thrilled that the Senate has approved Karen Mills’ nomination unanimously,” said Sen. Olympia Snowe [R-Maine], ranking member of the Small Business Committee. “Karen is a talented and intelligent entrepreneur, and she will bring her vast experience, remarkable intellect, and exceptional creativity to the SBA as a strong and passionate advocate for America’s 27 million small businesses.

“I was so proud to have recommended to the President that Ms. Mills, a fellow Mainer, serve as our next administrator of the SBA, and I look forward to partnering with her on bold initiatives to tackle America’s economic problems.”

As Administrator of the SBA, Mills will direct a federal agency with more than 2,000 fulltime employees, with a leading role in helping small-business owners and entrepreneurs secure financing, technical assistance and training, and federal contracts. SBA also plays a leading role in disaster recovery by making low-interest loans.

Mills, of Brunswick, Maine, was president of MMP Group and has a 25-year career of investing in, and growing, small businesses. In 2007, she was appointed by Maine Gov. John Baldacci as chair of the state’s Council on Competitiveness and the Economy, where she focused on attracting investment in rural and regional development initiatives. She also co-authored a Brookings Institution paper on competitive clusters.

Mills is also a member of the Council on Foreign Relations and has served as vice chairman of the Harvard Overseers. She holds a degree in economics from Harvard University and an MBA from Harvard Business School, where she was a Baker Scholar. Mills and her husband, Barry Mills, president of Bowdoin College in Brunswick, Maine, have three sons.

More information from the confirmation hearing of Karen Gordon Mills as SBA Administrator is available online at: http://tinyurl.com/c6x5kj.

You can link to Mills’ written statement to the Senate Committee on Small Business and Entrepreneurship here: http://tinyurl.com/co3o99.

GoodBiz113's take: Indeed, having a Harvard Business School alum, venture capitalist, and thoughtful and compassionate visionary at SBA's helm is just what America -- and the world -- needs right now. We wish SBA Administrator Mills the very best.

SOURCES: Harvard Business School [photo], SBA Press Office, U.S. Senate Committee on Small Business & Entrepreneurship
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Sens. Landrieu, Snowe Enthusiastic About White House Plan to Unlock Frozen Credit Market and Stimulate SBA Lending

Yesterday, U.S. Senate Committee on Small Business and Entrepreneurship Chair Mary Landrieu [D-La.] and Ranking Member Olympia J. Snowe [R-Maine, pictured] commented on President Barack Obama’s ambitious new plan to increase access to capital for small businesses.

Chair Landrieu and Ranking Member Snowe joined Congressional lawmakers, business leaders and community bankers in a meeting with President Barack Obama yesterday morning to discuss the plan, which will take immediate steps to unlock frozen credit markets, and temporarily roll back lending fees and bolster bank liquidity to ensure that small firms can have continued access to credit.

“President Obama and Secretary Geithner have laid out a bold, ambitious agenda aimed at encouraging lending to small businesses -- the engines of economic recovery,” Sen. Landrieu said. “The financial crisis has hit small businesses where it hurts the most: drying up access to capital as banks are becoming more hesitant to lend.

“The frozen secondary market for SBA-backed 7[a] and 504 loans has discouraged new lending to small businesses, but the Obama administration’s plan to purchase SBA-backed 7[a] and 504 loans will allow banks to leverage existing SBA loans to provide new loans to entrepreneurs looking to grow and create more jobs. By increasing the SBA loan guarantee to 90 percent and temporarily eliminating fees on 7[a] and 504 loans, President Obama’s plan will reduce the risk that lenders face when they make new loans, while making those loans more affordable to small business owners.

“I was proud to work with my colleagues on the Appropriations Committee to get these provisions included in the American Recovery and Reinvestment Act. By getting capital flowing again to small businesses, we will help get the country out of the economic crisis. Washington must focus on small businesses.

“I look forward to chairing a hearing of the Small Business Committee on Thursday that will look into the factors that have caused many entrepreneurs to be shut out of vital credit markets. The President’s announcement proves that he also understands the importance of small businesses to our economy.”

Sen. Snowe was also enthusiastic about the White House economic-stimulus plan. “I am pleased that President Obama called today’s summit to address the credit crisis that is preventing our nation’s small businesses from accessing the capital that's so vital to maintaining and expanding their operations,” she said. “Today’s implementation of critical provisions that Sen. Landrieu and I fought to include in the American Reinvestment and Recovery Act -- to provide fee relief to borrowers and lenders in the SBA’s 7[a] and 504 loan programs, as well as an increased guarantee rate for 7[a] loans -- comes not a moment too soon.

“The President’s willingness to use TARP funds to directly purchase SBA loan pools, which I have expressed my support for with the Administration, is a much-welcome step that will provide liquidity into secondary markets and generate additional financing dollars for small businesses nationwide.”

SOURCES: Politico, U.S. Senate Committee on Small Business & Entrepreneurship
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Sens. Kerry, Snowe Press SBA on Energy Efficiency to Ease Crisis

Yesterday, Sens. John F. Kerry [D-Mass.] and Olympia J. Snowe [R-Maine] urged the Small Business Administration to implement several energy initiatives aimed at helping small businesses through the current energy crisis. With rising energy prices topping the list of concerns of small-business owners, the senators requested that the SBA redouble their efforts to implement programs passed as part of the Energy Independence and Security Act of 2007.

“Small businesses are hurting, and the SBA can help alleviate the strain of the current energy crisis,” said Kerry. “Small businesses account for more than half of our fuel consumption, and we should give them the tools to become more energy-efficient -- whether it's loans to purchase renewable energy systems, or effective telecommuting programs. Every drop of oil or kilowatt of electricity saved is more money in a company’s bottom line.”

“With over three quarters of small-business owners reporting an inability to cope with exorbitant energy prices,” Snowe noted, “it is vital that the SBA swiftly implement the provisions that Chairman Kerry and I included in last year’s Energy Independence and Security Act.”

“The SBA has the opportunity and the responsibility to play a leading role in combating climate change and curbing skyrocketing energy prices. I hope that the SBA will fully implement the critical provisions to make loans for energy-efficiency improvements, promote small-business energy audits, and establish a priority for energy-efficiency projects under the Small Business Innovation Research program. With energy prices where they are today, the SBA cannot afford to drag its feet and stand by while the American economy suffers.”

In a July 31st letter, Sens. Kerry and Snowe, chairman and ranking member of the U.S. Senate Committee on Small Business and Entrepreneurship, respectively, called on Acting SBA Administrator Jovita Carranza [pictured] to implement a number of initiatives passed as part of the Energy Independence and Security Act of 2007, which became public law 110-140 in December of 2007. Specifically, the bill calls for the SBA to develop and implement programs to do the following:

* Establish an energy clearinghouse program that works with the EPA’s Energy Star program to help educate small businesses on energy efficiency;

* Create a small-business energy-efficiency pilot grant program that would offer grants to Small Businesses Development Centers to conduct energy audits of small businesses and help them reduce their energy consumption;

* Encourage innovation in the field of energy efficiency by requiring federal agencies to give priority to SBIR/STTR program solicitations by small businesses that participate in, or conduct energy efficiency or renewable energy system research and development;

* Allows loans to be made through the SBA’s Express Loan program for the purpose of purchasing a renewable-energy system or financing of energy-efficiency projects;

* Establish a renewable-fuel capital investment company program designed to promote the research, development, production, and marketing of renewable energy resources;

* Initiate the small-business telecommuting pilot program, authorized in the Energy Bill, to provide information regarding telecommuting options to small-business owners and their employees.

***

Here's the full text of their letter:


July 31, 2008

The Honorable Jovita Carranza
Acting Administrator
U.S. Small Business Administration
409 Third Street, SW
Washington, D.C. 20416

Dear Acting Administrator Carranza:

There are nearly 26 million small businesses in this country, representing nearly 26 million business owners that are focused on keeping their doors open and putting food on the table for their families. The National Small Business Association’s recently released 2008 survey of small- and mid-sized business reported that spikes in energy costs have negatively impacted 77 percent of small-business owners.

In response to rising costs, 37 percent of businesses have increased their prices, 33 percent have reduced their business travel, 11 percent have cut their production schedule, and 10 percent have reduced their workforce. It is clear that, along with health-care costs and global competitiveness, energy prices are at the forefront of challenges confronting America’s small businesses.

In fact, according to a 2008 National Federation of Independent Business [NFIB] survey entitled, “Small Business Problems and Priorities,” NFIB members ranked the cost of natural gas, propane, gasoline, diesel and fuel oil as their second-greatest concern -- behind access to affordable health insurance -- with 42 percent of NFIB members surveyed indicating that this problem is “critical.”

As you may know, the Senate Committee on Small Business and Entrepreneurship recently held a hearing to examine the dramatic increase in home heating oil prices. This was the fourth hearing our Committee has held on rising energy prices this Congress. With gas prices in New England averaging over $4.00 per gallon, and heating oil prices approaching $5.00 per gallon, it is clear that we are facing an energy crisis where short and long-term solutions must be put on the front burner.

As Chairman and Ranking Member of this Committee, and as longstanding stewards of the environment, we firmly believe that small businesses should play a leading role in forging a solution to global climate change and rising energy prices. That is why we introduced small-business energy-efficiency legislation that was included as a title in the Energy Independence and Security Act [H.R. 6], which became public law on December 19, 2007. This title will not only help protect the environment by incentivizing small businesses to make a smaller carbon footprint, but will also significantly lower the energy costs for cash-strapped small businesses.

The SBA has had adequate time to review the small-business requirements included in this law and make plans for carrying them out. We request that the SBA provide the Committee a progress report on implementing these vital provisions. Please provide a list of concrete steps SBA has taken to implement these, as well as what specific steps you will take within the near future to complete implementation.

The small-business requirements contained in H.R. 6 include:

* Ensure that the SBA completes its requirements under the Energy Policy Act of 2005 [Sec. 1203]. Within 90 days of enactment, the SBA must complete all of its requirements under the Energy Policy Act, including setting up an Energy Clearinghouse that builds on the Environmental Protection Agency’s Energy Star program. Has this program been fully implemented? What specific steps, in addition to establishing a website link, has SBA taken to complete these requirements? What furthers steps will SBA take on this matter?

* Create a Small Business Energy Efficiency Pilot Grant Program [Sec. 1203]. This pilot competitive grant program would be administered through the national network of Small Business Development Centers [SBDCs], which would provide energy audits to small businesses to enhance their energy-efficiency practices, as well as providing access to information and resources on energy-efficiency practices, including on-bill financing options. Has this program been fully implemented? Why or why not?

* Encourage Innovation in Energy Efficiency [Sec. 1203]. Federal agencies shall give priority to Small Business Innovation Research [SBIR] and Small Business Technology Transfer [STTR] program solicitations by small businesses that participate in, or conduct energy efficiency or renewable energy system research and development. SBA will issue guidelines to assist federal agencies and departments in determining whether priority has been given. Has SBA issued these guidelines yet? Why or why not?

* Allowing SBA Express Loans for Renewable Energy and Energy Efficiency [S. 1201: Clean Power Act of 2007]. The bill allows loans under the SBA’s Express Loan program to be made for purpose of purchasing a renewable-energy system, or financing an energy-efficiency project for an existing small business. How many small businesses have taken advantage of this key initiative? How can we increase the amount? How is the SBA conducting outreach of these loans?

* Establishes a Renewable Fuel Capital Investment Company program. The purposes of this Renewable Fuel Capital Investment Company are: 1] to promote the research, development, production and bringing to market of renewable energy sources; 2] establish a venture capital program to address the unmet investment needs of small businesses engaged in the production and distribution of renewable energy sources; and 3] to make grants to the Renewable Fuel Capital Investment Companies. Has this program been implemented? Why or why not? Please provide a detailed update on SBA’s specific actions to implement this program.

* Small Business Telecommuting. The bill instructed SBA to initiate a telecommuting pilot program to provide information regarding telecommuting to employers that are small-business concerns and to encourage such employers to offer telecommuting options to employees. Which regions have been selected, and what was this selection based upon? What steps have been taken thus far to implement the telecommuting program? Have their thus far been any success stories?

These vital provisions are even more necessary at this critical juncture, as there is no doubt that our country’s current rising gas and energy costs are hurting the competitiveness of America’s small businesses. With small businesses accounting for over half of our fuel consumption, this bill puts small businesses in the driver’s seat in the fight for a cleaner, greener future.

Through efforts to increase energy efficiency, small businesses can contribute to America’s energy security, help to combat global warming, and add to their bottom line all at the same time. Please provide the Committee with the information requested above within one month from the date of this letter. We believe that the SBA can play a significant role in assisting small businesses to become more energy-efficient, and implementing the requirements of this law is a crucial example.

Should you have any questions, please do not hesitate to contact me or have a member of your staff contact Jeremy Marcus [Senator Kerry] or Alex Hecht [Senator Snowe] on the Senate Small Business Committee at [202] 224-5175.

Sincerely,

John F. Kerry
Chairman

Olympia J. Snowe
Ranking Member


GoodBiz113's take: The innovative initiatives proposed by Sens. Kerry and Snowe, and passed by Congress, promise to deliver far-reaching, win-win-win results for small businesses, the U.S. economy, and the environment. SBA needs to act swiftly to see that these bipartisan initiatives are fully enacted, post-haste, to help small businesses prosper and be good environmental stewards.

SOURCES: GovTrack.us, Library of Congress, 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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Kerry, Snowe Lead Push for Energy Efficiency Funding for Small Businesses

Yesterday, Sens. John Kerry [D-Mass.] and Olympia Snowe [R-Maine], chairman and ranking member of the Committee on Small Business and Entrepreneurship, urged the Bush administration to invest more resources to help small businesses become more energy efficient and reduce their greenhouse gas emissions.

Although small businesses represent half of the nation’s economy and are responsible for half of the country’s energy consumption, the government spends less than two percent of the ENERGY STAR® program’s $50 million annual budget reaching out to help small businesses. Sens. Joe Lieberman [I/D-Conn.], Mary Landrieu [D-La.], Maria Cantwell [D-Wash.], Norm Coleman [R-Minn.], and Jon Tester [D-Mont.] joined Kerry and Snowe in calling for a larger commitment to helping small firms.

“There’s no greater threat to the Earth than global climate change, but by leaving small businesses out of the solution, the Bush administration shows they’re not serious about tackling the problem,” said Kerry. “Small businesses can lead the way toward a cleaner, greener future, so the least the federal government can do is dedicate $2 million -- just 4 percent -- of ENERGY STAR® funds to help entrepreneurs reduce their energy costs and foster green innovation.”

“As the ranking Republican on the Senate Committee on Small Business and Entrepreneurship and as a longstanding steward of the environment,” said Sen. Snowe, “I am alarmed by the administration's lack of commitment to promoting small-business energy efficiency.

“According to a National Small Business Association [NSBA] survey, 40 percent of small businesses are still not familiar with the ENERGY STAR® product label and technical support programs that are available. And at a Committee hearing last year, the Environmental Protection Agency testified that it has only two full-time employees devoted to the ENERGY STAR® for Small Business program. I am pleased to join my bipartisan colleagues in urging the Administration to properly fund the EPA’s ENERGY STAR® small-business program.”

In a letter sent to the Environmental Protection Agency [EPA], which implements the ENERGY STAR® program, the senators urged the Bush administration to increase funding for the ENERGY STAR® small-business program to $2 million a year, in order to provide technical assistance and resources necessary to small businesses.

Sens. Kerry and Snowe successfully secured provisions to aid small firms in becoming more energy efficient in the energy bill that the Senate will vote on in the near future. The provisions will:
* Require the Small Business Administration [SBA] to implement within 90 days an energy efficiency program that was mandated in the Energy Policy Act of 2005;
* Establish an audit program to increase energy efficiency, using Small Business Development Centers [SBDCs];
* Promote financing agreements between small businesses and utility companies to increase energy efficiency;
* Create a telecommuting pilot program at the SBA responsible for educational materials and outreach to small businesses on the benefits of telecommuting;
* Allow small businesses conducting energy efficiency or renewable energy research and development to be given priority consideration in the Small Business Innovation Research [SBIR] and Small Business Technology Transfer [STTR] programs; and
* Establish loans for small firms to invest in use of renewable sources of energy in their business.

***

The full text of the letter to EPA Administrator Steve Johnson follows:

January 2, 2008

The Honorable Stephen L. Johnson
Administrator
Environmental Protection Agency
1200 Pennsylvania Avenue, NW
Washington, DC 20004

Dear Administrator Johnson:

The issue of climate change has moved front and center in the national dialogue about our environment, our security, and our economy. CEOs from several Fortune 500 companies are bringing big business into the discussion, joining with environmental groups and urging the federal government to pass legislation and require significant reductions in greenhouse gas emissions. We believe that small businesses, which represent 50 percent of the nation’s economy, have just as big a stake in contributing to climate change solutions.

This year, the Senate Committee on Small Business and Entrepreneurship has paid particular attention to the effects of climate change and escalating fuel costs on small businesses, and the role America’s entrepreneurs can play in affecting change in these areas. Our committee has already devoted two hearings during the 110th Congress to these subjects.

According to a recent survey conducted by the National Small Business Association, 75 percent of small businesses believe that energy efficiency can make a significant contribution to reducing greenhouse gas emissions. At the same time, only 33 percent of those had successfully invested in energy efficiency programs for their businesses. In fact, only 60 percent of the respondents to the survey reported being familiar with the ENERGY STAR® for Small Business program at the Environmental Protection Agency.

We need to significantly improve energy efficiency investment by small businesses. To that end, we worked to include provisions in the Clean Energy Act of 2006 that take great strides in this direction. These provisions promote financing agreements between small businesses and utility companies to increase energy efficiency; allow small businesses conducting energy efficiency or renewable energy research and development to be given priority consideration in the Small Business Innovation Research [SBIR] program; and establish loans for small firms to invest in use of renewable sources of energy in their business.

The 26 million small businesses in the United States comprise 99.7 percent of all domestic employer firms, and consume approximately half of all the commercial and industrial energy in the United States. In each of the last five years, the ENERGY STAR® program has received approximately $50 million in annual funding.

Regrettably, of this $50 million appropriation, less than two percent has been allocated to the ENERGY STAR® for Small Business program, which is responsible for reaching the entire small-business community. Clearly, this inadequate percentage grossly underestimates the critically important role small businesses could play in improving our nation’s energy efficiency and reducing our carbon footprint.

We believe that the time has come for small businesses to play a leading role in combating climate change and reducing our carbon footprint in the future. To achieve these results, we urge the administration to fund the EPA’s ENERGY STAR® for Small Business program at a minimum of $2 million annually. This would provide small businesses with the funding, technical assistance, and resources necessary to improve small-business energy efficiency.

Sincerely,

John F. Kerry
Olympia J. Snowe
Joseph Lieberman
Mary Landrieu
Maria Cantwell
Norm Coleman
Jon Tester


GoodBiz113's take: Bravo! As the issue of climate change finally takes center stage -- environmentally, economically, socially and geopolitically -- we applaud Sen. John Kerry's Committee on Small Business and Entrepreneurship for its bold move to press the EPA and Bush administration for ENERGY STAR® program funding that incentivizes America's 26.8 million small businesses to do our fair share in optimizing global energy resources.

SOURCES: Library of Congress, U.S. Senate Committee on Small Business and Entrepreneurship
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Kerry, Snowe and Velázquez Praise SEC's Extension for Small-Biz Compliance With Sarbanes-Oxley Section 404

After nearly a year of urging from Senators John Kerry [D-Mass.] and Olympia J. Snowe [R-Maine], as well as Rep. Nydia M. Velázquez [D-N.Y.], today the U.S. Securities and Exchange Commission [SEC] agreed to provide small businesses with an additional one-year extension to comply with Sarbanes-Oxley Section 404 [b] for the country’s smallest public companies.

In the wake of major corporate scandals, the Sarbanes-Oxley Act of 2002 [H.R. 3763] was passed in an effort to prevent accounting fraud and rebuilt shareholder trust. However, some of its provisions -- most notably, Section 404 -- disproportionately impact smaller public companies.

These firms are currently facing increased regulatory and paperwork burdens, as well as higher costs from legal and auditing fees. As small companies operate on slimmer profit margins than do their larger counterparts, this represents a major expense. However, until today, the SEC had not acknowledged these added challenges.

Senate Small-Biz Committee Presses for More Time for SOX 404 Compliance
Earlier this year, Kerry and Snowe held a hearing focusing on the impact of Sarbanes-Oxley regulations on small businesses, and wrote three letters to the SEC seeking additional time for small firms to comply while preserving the intent of the 2002 law.

“It took too long and it required too much pressure, but it seems the SEC will finally provide small businesses a little extra time to comply with the Sarbanes-Oxley reforms,” said Sen. Kerry, chairman of the Committee on Small Business and Entrepreneurship. “Sen. Snowe and I strongly urged the SEC to take this action because smaller firms face higher costs to comply with Sarbanes-Oxley. This will help ease the burden on small firms and help encourage more small businesses to become public companies – while still ensuring transparency and honest accounting.”

"I commend Chairman Cox [pictured] and the Securities and Exchange Commission for implementing this delay," said Sen. Snowe, ranking member on the Committee on Small Business and Entrepreneurship. "Doing so will give these small firms time to successfully meet Sarbanes-Oxley’s requirements and enable the SEC to fully consider the economic impacts on small, publicly traded companies."

Small firms worth less than $75 million face a higher burden than larger firms in complying with the Sarbanes-Oxley regulations. In 2006, restatements of financial results for large companies decreased by 20 percent, while restatements for the smaller firms increased by 42 percent, due to the disproportionately higher cost and time needed to comply.

"Small, public firms believe in strong, internal controls," Snowe noted. "Sen. Kerry and I will continue to vigilantly work to assure that Sarbanes-Oxley promotes corporate responsibility without driving small, public companies out of the U.S. stock market."

Click on the following links to read the letters Sens. Kerry and Snowe sent on Feb. 23, May 8 and June 6.

Velázquez Voices Her Praise of SEC's SOX 404-Related Postponement
During the past year, House Small Business Committee Chairwoman Velázquez has also made repeated calls to postpone enforcement of SOX 404 regulations.

“Today’s decision is a major victory for those small companies struggling to deal with the costs of SOX 404,” said Velázquez. “This delay will help reduce the regulatory burden on small firms, and will give the SEC adequate time to more thoroughly understand its impact and to make any necessary changes.

“I have repeatedly called on the SEC to provide a hard-dollar estimate on compliance costs for small firms, but these requests – until today’s hearing – fell on deaf ears. Without solid data, we cannot truly understand the possible effects these regulations will have on small public companies and on the economy.”

At the chairwoman’s recommendation, a coalition of small-business groups stepped in and performed their own analysis. The survey found that, although SOX 404 [b] is more than a year away, 66 percent of firms have already engaged an outside auditor. This figure is a major break with the SEC’s original estimate that companies would not incur significant costs until well into 2008.

Additionally, companies reported that SOX 404 [a] compliance costs will represent more than three percent of their net income. In light of this new information, the SEC will conduct their own research as to the effects of SOX 404 compliance on small firms.

“While this delay will help ease undue burdens on small firms, it is by no means the final stage of this fight,” Velázquez noted. “I will continue to press the SEC to collect this data in a timely manner, and make certain that everything is done to ensure that SOX 404 does not undermine the competitiveness of the U.S. economy.”

SOURCES: Library of Congress, U.S. House Small Business Committee, U.S. Senate Committee on Small Business and Entrepreneurship
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Sens. Kerry and Harkin Secure Additional Small-Business Research Funding for Inclusion in Rep. Murtha's Defense Bill

In a victory for small-business innovation, this week, $85 million in additional funding for the Small Business Innovation Research [SBIR] program was signed into law. Sens. John Kerry [D-Mass.] and Tom Harkin [D-Iowa] pushed for this funding to be included in the final version of the Department of Defense Appropriations Act [H.R. 3222], which Congressman John Murtha [D-Pa., pictured] secured in the House bill. The funding will allow the military to increase the use of small, high-tech businesses to help the military develop the best technologies, diversify the supply base, and reduce costs.

“Investing in small-business research pays off, both for our national security and our economic security,” noted Sen. Kerry, chairman of the Committee on Small Business and Entrepreneurship. “In my home state of Massachusetts, which has received the second-most SBIR grants in the country, small businesses are helping the military cut shipbuilding costs and develop more effective unmanned transportation systems. This increased funding will help ensure that our troops have access to the best technology America has to offer.”

“This partnership between small businesses and the Department of Defense allows Iowa’s innovative technology market to support our national security endeavors,” explained Sen. Harkin, a senior member of Kerry's committee. “In past years, local businesses have helped our military members by equipping them with improved sonar capabilities and developing technologies to reduce flight-deck noise and protect against hearing loss. I am eager to see how the Iowa workforce puts these newly secured funds to good use in developing cutting-edge technologies in the coming years.”

The additional funding will be used to support the transition of SBIR technologies at the DoD: $20 million will be allocated to the Army’s Future Combat Systems; $40 million for the Navy’s surface ship and submarine development activities; and $25 million for the Joint Strike Fighter program.

Kerry and Harkin, working with Sen. Olympia Snowe [R-Maine], ranking member of the committee, will be working on comprehensive legislation to renew the small-business research program next year.

On Oct. 1, 2007, the Senate passed an amendment to temporarily extend the SBIR program through 2010 and prevent a shutdown or funding delays when the program expires in September 2008. The Senate also passed an amendment to extend a DoD pilot program that helps firms transition their projects to the marketplace.

Sources: Library of Congress, OpenCongress, U.S. Senate Committee on Small Business and Entrepreneurship
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Small Businesses Gain More Access to Federal Contracting Opportunities Under Kerry, Snowe Legislation

Today, by a vote of 19-0, the Senate Committee on Small Business and Entrepreneurship passed bipartisan legislation which will make it easier for small businesses to obtain federal contracts.

The Small Business Contracting Revitalization Act [S. 2300] improves the oversight of unbundling contracts for small firms, increases enforcement of protections for subcontractors, and expands opportunities for minority, women and service-disabled entrepreneurs.

“Passing this legislation out of committee is just the first step towards making sure that small businesses -- especially those owned by minorities, women, and veterans -- are treated fairly in the contracting process,” declared Sen. John Kerry [D-Mass.], chairman of the Committee on Small Business and Entrepreneurship.

“This legislation will help ensure that the Bush administration identifies opportunities for small businesses to compete for contracts, and gives small businesses that subcontract with a large firm more recourse if they are mistreated,” Kerry noted. "Small businesses are the lifeblood of America, and we need to eliminate all barriers that stand in the way of their success in order to keep the American economy healthy.”

“The Federal government is not aggressive enough in fulfilling its statutory small-business contracting goaling requirements and in assisting small businesses to access federal contracting dollars,” said Sen. Olympia Snowe, [R-Maine], ranking member of the Committee on Small Business and Entrepreneurship.

“Currently, small businesses are eligible for $340 billion in federal contracting dollars, yet they receive only $77 billion,” Snowe explained. “The legislation the committee approved today will help ensure that small businesses no longer miss out on billions of dollars in contracting opportunities by taking steps to provide the federal government with additional tools it needs to consistently meet, and exceed, its small-business contracting goals. I look forward to the enactment of this bipartisan, small-business contracting legislation.”

The bill was drafted by Sens. Kerry and Snowe, and cosponsored by Sen. Benjamin L. Cardin [D-Md.]. Specifically, the bill addresses challenges faced by small businesses by:

* Reducing contract bundling by improving oversight of bundling regulation compliance by the Small Business Administration [SBA];

* Preventing misrepresentations in subcontracting by prime contractors by increasing oversight and establishing enforcement mechanisms;

* Helping service-disabled, veteran-owned small businesses gain government contract and subcontract opportunities by expanding the authority for sole-source awards;

* Directing the SBA to implement the women-owned small business program – enacted into law in 2000, but which the Bush administration has failed to implement – within 90 days;

* Strengthening the government’s ability to enforce the size and status standards for small business certification.

* Extending the 8[a] contracting program through 2012, and improving it, by:
1] Allowing the Small Disadvantaged Business [SDB] certifications issued by other agencies to be accepted by the SBA;
2] Adjusting for inflation the personal income and net worth requirements for 8[a] program participants; and
3] Prohibiting qualified retirement plans from being used by the SBA to determine an individual’s net worth.

GoodBiz113's take: This bipartisan legislation is most impressive and far-reaching across diverse demographics. S. 2300 deserves to be passed by the full U.S. Senate and Congress ASAP -- to benefit all small businesses and our stakeholders. Once again: Hats off to the do-something 110th Congress!

Sources: Library of Congress, U.S. Senate Committee on Small Business and Entrepreneurship
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Snowe and Kerry Introduce SBA Lender Oversight Legislation

U.S. Senate Small Business and Entrepreneurship Committee Ranking Member Olympia J. Snowe [R-Maine, right] and Chairman John F. Kerry [D-Mass.] today introduced the Small Business Lending Oversight and Program Performance Improvements Act of 2007 to measure the economic outcomes and improve oversight of the Small Business Administration’s signature 7[a] and 504 lending programs. The legislation will ensure that the SBA will assess the quality and performance of these loan programs, so that they benefit small businesses to the maximum degree possible.

“The 7[a] and 504 lending programs will not survive if we cannot prove to taxpayers that the money spent to guarantee small-business loans actually produces economic vitality, opportunity, and new jobs for our nation,” Sen. Snowe declared. “The only way to protect these vital programs and prove their effectiveness is through oversight and concrete measurements. The legislation we are introducing today is necessary for the SBA’s lending programs to expand and reach all of the small businesses that need access to capital.”

“Access to capital remains one of the top concerns for America’s entrepreneurs, so I am pleased to work with Sen. Snowe to ensure the government’s vital small-business lending programs remain strong,” said Sen. Kerry. “This bill will protect the integrity of the programs by establishing tangible performance measures, provide oversight transparency, and mitigate fraudulent lending. Ultimately, these improvements will get loans to the businesses that need them and provide us with details about the return on investment in these small firms.”

Based, in part, on recommendations made by the U.S. Government Accountability Office in a July 2007 report, Small Business Administration: Additional Measures Needed to Assess 7[a] Loan Program’s Performance, the bill would:

* Require a report on borrowers’ economic performance. Currently, the SBA estimates job creation, but the GAO recommends further measurements to demonstrate the economic growth that companies create after securing 7[a] and 504 loans. This will help the SBA and Congress measure the return on investment;

* Increase the transparency of lenders’ portfolio quality. The SBA’s lender monitoring system does not explain how some measurements determine a lender’s risk rating or where there are problems, so that lenders can act proactively to mitigate defaults or losses. Codifying portfolio quality principals will enable all lenders to understand the standards to which they are held. This will help to protect the programs’ performance;

* Create a 7[a] and 504 portfolio default rate that can be compared directly to commercial lenders’ default rates. At this time, the SBA does not calculate a portfolio default rate that is directly comparable to commercial lenders’ default rates, which makes it hard for Congress and the public to accurately track the programs’ performance; and

* Require the SBA to follow cost containment and cost control practices to hold down lender oversight fees and enable banks to use their capital for lending.

In May, Kerry and Snowe passed their bipartisan legislation to expand the 7[a] and 504 loan programs out of committee. The Small Business Lending Reauthorization and Improvements Act [S. 1256] now awaits consideration by the full Senate.

Sources: GovTrack.us, U.S. Government Accountability Office, U.S. Senate Committee on Small Business and Entrepreneurship
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Kerry Honored for Work on Green Business Solutions

Sen. John Kerry [D-Mass.], chairman of the Committee on Small Business and Entrepreneurship, received an award this week from Small Business California [SB-Cal] for his efforts to harness the power of America’s small businesses to protect the environment and help curb climate change.

“I am honored to receive this award from Small Business California,” said Kerry. “More importantly, I want to thank them for all their work on behalf of California’s and America’s entrepreneurs.

“Small Business California’s leadership in advocating for energy solutions for small businesses and demonstrating how small businesses can help us win the fight against climate change, is changing the dialogue in this country. Although we’re far from the finish line, working together we’ll create a cleaner, greener America.”

Kerry is leading efforts to provide incentives for small businesses to develop green technologies, and provide resources to help them become more energy-efficient.

In March, Kerry chaired a committee hearing focusing on small-business solutions to combat global warming.

In June, working with Sen. Olympia Snowe [R-Maine], Kerry secured amendments to the CLEAN Energy Act [H.R. 6] that help small businesses increase their energy efficiency and hold the Bush administration accountable for failing to provide tools that will help small businesses reduce their dependence on fossil fuels. Currently, the House and the Senate are negotiating differences in the energy bill.

Sen. Snowe, ranking member of the Committee on Small Business and Entrepreneurship, and Congresswoman Nydia Velázquez [D-N.Y.], chair of the House Committee on Small Business, were also recognized by SB-Cal.

Source: GovTrack.us, Small Business California, U.S. Senate Committee on Small Business and Entrepreneurship
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Sens. Kerry, Snowe Demand Timeline for Implementation of Women’s Contracting Program

Yesterday, Sens. John Kerry [D-Mass.] and Olympia J. Snowe [R-Maine, pictured], chairman and ranking member of the Committee on Small Business and Entrepreneurship, demanded that the Bush administration provide a timeline for implementing a 2000 law which requires that women-owned small businesses receive 5% of federal government contracts. For seven years, the Bush administration has failed to create the Women’s Procurement Program, which mandates that women have equal access to federal contracts. In 2006, only 3.4% of federal contracts were awarded to female-owned businesses -- far short of the federal requirement, costing women-owned businesses an estimated $6 billion in potential revenue.

“When it comes to leveling the contracting playing field for women entrepreneurs, Congress threw the first pitch in 2000, but the Bush administration still refuses to step up to the plate,” Sen. Kerry declared. “After seven years of delays, I am tired of listening to excuses. Sen. Snowe and I want to see a timeline for implementing this program now, so that women small business owners aren’t denied another $6 billion in contracts.”

“The end of Fiscal Year 2007 has come and gone, and the Women’s Contracting Set-Aside Program has not been implemented as promised,” said Sen. Snowe. “Our nation’s women-owned small businesses have waited long enough, and I call on the SBA to set this program in motion as expeditiously as possible.”

The Bush administration testified at a July 2007 hearing that the Women’s Procurement Program would be implemented by Sept. 30, 2007. When it became apparent that the deadline would not be met, Sens. Kerry and Snowe pressed the administration in a hearing in September to provide a time frame for implementation. After seven years of delays, the administration again refused to commit to implementing the program within a certain period of time.

***

Following, is the full text of the letter sent to Small Business Administration [SBA] chief Steven C. Preston:

October 17, 2007

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

Dear Administrator Preston:

As chairman and ranking member of the Senate Committee on Small Business and Entrepreneurship, we would like to express our deep concerns about the long-delayed implementation of the Women’s Contracting Set-Aside Program. The Small Business Administration [SBA] recently released Fiscal Year 2006 small-business “goaling” results that continue to illustrate just how far the government is from reaching its women-owned and agencywide small-business goals. Women-owned small businesses only achieved 3.4% of the 5% statutory goal.

The women’s set-aside program enacted in December 2000 authorized, on a discretionary basis, contracting officers to “set aside” competition for federal contracts to women-owned small businesses. The program required SBA to conduct a study determining which industries would be characterized as underrepresented. The study was finally completed and made available to the public in April of this year. Regrettably, nearly seven years after enactment, women-owned small businesses are still waiting for the program to be implemented.

During a committee hearing on July 18th, the SBA pledged to implement the women set-aside program by the “end of this fiscal year.” Also, in a September 20th hearing on expanding federal contracting opportunities for women business owners, we strongly urged you to follow through on your earlier commitment to implement the program by the end of the fiscal year. The end of Fiscal Year 2007 has come and gone, and the program has not been implemented, as promised. We hope that you would agree that women-owned small businesses have waited long enough.

We cannot emphasize enough the importance of your immediate attention to this vital issue. Please provide a response with a specific timeline for implementation of the women’s contracting set-aside program within 10 working days of receipt of this letter.

Sincerely,

John F. Kerry
Olympia J. Snowe

Source: U.S. Senate Committee on Small Business and Entrepreneurship
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