Sens. Landrieu, Kerry Introduce Legislation to Boost Broadband Internet Access for Small Business

United States Senators Mary L. Landrieu [D-La.], chair of the Senate Committee on Small Business and Entrepreneurship, and John F. Kerry, [D-Mass., pictured] introduced legislation to better assist small-business owners in accessing broadband Internet technology.

The "Small Business Broadband and Emerging Technology Enhancement Act of 2010" [S. 3506] addresses many of the recommendations from the Federal Communications Commission’s [FCC] March 2010 report -- entitled "Connecting America: The National Broadband Plan" -- which calls for increased broadband access for rural small businesses.

"Improving access to technology for small businesses, particularly in rural areas, is an important component to economic recovery," said Sen. Landrieu. "With access to broadband Internet, a small firm that once was confined to a single town has the ability to reach a new customer base on the opposite side of the world. Louisiana is home to some of the most rural, underserved areas in the country. By assisting rural firms in upgrading their technology, I am committed to making these small businesses play an active role in jump-starting local economies.

"The FCC has done an extensive evaluation of the effects of advanced technology on small-business growth. The adoption of many of the recommendations of this report will support small businesses interested in expanding their operations. The Small Business Committee is dedicated to providing added assistance to these small businesses, and this legislation puts us on the path to doing so."

Sen. Kerry, a member of the Small Business Committee and its former chair, noted that the legislation will serve his constituents well. "Universal broadband access will empower small businesses across Massachusetts," he said. "It means greater connectivity for employees, while giving local businesses global access, allowing a shop in Western Massachusetts to make sales in Western Europe.

"Today, broadband is essential to the success of our small businesses. I commend Sen. Landrieu for championing the effort to connect them."

The legislation introduced by Sens. Landrieu and Kerry would:

* Create a Broadband and Emerging Technology Coordinator within the SBA to better coordinate agency programs that assist small businesses in adopting, making innovations in, and using, broadband and other emerging technologies;

* Amend the mission of Small Business Development Centers [SBDCs] to include assisting small businesses in accessing broadband and other emerging technologies;

* Amend the mission of the Women’s Business Centers [WBCs] to include assisting women-owned small businesses in accessing broadband and other emerging technologies;

* Allows SBA 7[a], 504, and Microloan programs to include upgrading broadband technology under eligible uses;

* Create the "Rural Small Business Technology Pilot Program" to provide excess government-owned computers each year to qualified small businesses at little or no cost; and

* Require the SBA administrator, in consultation with the administrator of General Services, to submit a report to the committee on opportunities at SBA, through deployment of technology in its district offices, to assist with the development of broadband and wireless technology for local small businesses.

In April, the Small Business Committee held a hearing to discuss efforts to increase broadband accessibility. The hearing specifically highlight the FCC National Broadband Plan, which included several Landrieu recommendations. Yos can view information from the hearing at: http://bit.ly/BroadbandHearing.

Resources
To view the complete text of the "Small Business Broadband and Emerging Technology Enhancement Act of 2010," S. 3506, please go to: http://bit.ly/SmallBizBroadband2010.

To keep apprised of national broadband-related developments and events, please visit: http://www.broadband.gov/.

To read the complete text of the FCC's National Broadband Plan, please go to: http://www.broadband.gov/plan/.

SOURCES: Federal Communications Commission, Library of Congress, U.S. Senate Committee on Small Business and Entrepreneurship
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Landrieu Urges Applications for Broadband Internet Grants; Deadline to Apply for Grants Is March 15

United States Senate Committee on Small Business and Entrepreneurship Chair Mary L. Landrieu [D-La., pictured] today released two grant guides for small businesses interested in applying for the nearly $4 billion in American Recovery and Reinvestment Act [ARRA] grants to bring broadband Internet service to unserved, underserved and rural communities across the nation. Applications for this second round of Recovery Act funding for broadband infrastructure are being accepted through March 15, 2010.

"Louisiana businesses have received millions of dollars from the grant program to expand broadband Internet service," Sen. Landrieu said. "These funds are being put into the hands of businesses dedicated to expanding this advanced technology to some of the most rural parts of the country.

"Increasing access to broadband Internet service will help to bridge the technological divide between rural businesses and competing companies that have long benefitted from access to high-speed Internet service. I encourage small-business owners to apply for these competitive grants. This is an historic opportunity to both improve our communities and U.S. competitiveness."

In June of 2009, Sen. Landrieu sent a letter to Commerce Secretary Gary Locke, Department of Agriculture Secretary Tom Vilsack, and others supporting their efforts to expand access to broadband technology for the benefit of small businesses. In the same letter, Sen. Landrieu asked that priority be given to applications deploying broadband in unserved rural areas.

The senator has been a longtime advocate for the expansion of broadband technology, and co-sponsored the Broadband Data Improvement Act that became law in October 2008. The law encourages the deployment of high-speed Internet access to areas that need it most, and authorized the Small Business Administration’s Office of Advocacy to conduct a two-year report on broadband access and affordability for small businesses.

Sen. Landrieu's committee is monitoring the implementation of Recovery Act funding and the progress of the Advocacy report. In her June 2009 letter to Locke and Vilsack, Landrieu indicated that she plans to invite federal agencies before her committee to testify on the impact of Recovery Act broadband funds on small-business growth. To view a copy of that letter, go to: http://bit.ly/BroadbandLetter.

To view the guide for the U.S. Department of Commerce Broadband Technology Opportunity Program [BTOP], please go to: http://bit.ly/SenateSmallBizBTOP.

To view the guide for the U.S. Department of Agriculture’s Broadband Initiatives Program [BIP], visit: http://bit.ly/SenateSmallBizBIP.

SOURCES: GovTrack.us, Recovery.gov, U.S. Senate Committee on Small Business and Entrepreneurship
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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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Verbatim: It's the Economy [and Green Energy, Infrastructure Needs and Can-Do Spirit], Stupid

Every week, GoodBiz113 features comments made by politicos and other influencers who are propelling the interests of small-business owners, entrepreneurs, consultants, self-employed folks, artists, etc.

* "Economists from across the political spectrum agree that if we don't act swiftly and boldly, we could see a much deeper economic downturn. That's why we need an American Recovery and Reinvestment Plan that not only creates jobs in the short term, but spurs economic growth and competitiveness in the long term... I am optimistic that if we come together to seek solutions that advance not the interests of any party, or the agenda of any one group, but the aspirations of all Americans, then we will meet the challenges of our time, just as previous generations have met the challenges of theirs." -- President-elect Barack Obama, launching his campaign for a massive economic-stimulus package -- including roughly $300 billion in tax cuts for individuals and businesses, small-business write-offs, plus a new credit for businesses that either create jobs in the United States or avoid layoffs -- aimed at reviving an economy mired in recession [CNNMoney.com, Jan. 5, 2009]

* "...President-elect Obama has already nominated his administrator for SBA: Karen Mills, a venture capitalist from Maine with an impressive resume. That is a big improvement from President George W. Bush, who took over six months to fill the position... Big business is not going to be the salvation for the economic development of our communities. It is going to be the growth of small business, and we need an SBA that can do the job it once did – provide capital access, technical assistance and procurement opportunities for ready and willing small businesses throughout the land. May President Obama lead us on to better days." -- Harry C. Alford [pictured above], National Black Chamber of Commerce [NBCC] president, CEO and co-founder [Toledo Journal, Jan. 6, 2009]

* “Their presence in Washington, D.C., may provide some comfort to small-business owners who, according to a recent poll by the National Association for the Self-Employed [NASE], overwhelmingly believe their needs are not being represented in Congress." -- SBA's Office of Advocacy, reporting that a whopping 24 incoming members of the new111th Congress [out of a total of 61] bring small-business expertise to Capitol Hill [The Wall Street Journal, Jan. 6, 2009]

" "I don't like spending taxpayers' dollars, but I do like it if we're going to do something to create jobs for people and resulting in...new highways and bridges and schools... I think the average citizen out there would really love to pay less taxes." -- Freshman U.S. House Rep. Bobby Bright [D-Ala.], regarding the economic stimulus package expected to include money for road and bridge projects, tax breaks for individuals and businesses, and aid to drooping state budgets [Montgomery Adviser, Jan. 7, 2009]

* "To finally spark the creation of a clean-energy economy, we will double the production of alternative energy in the next three years. We will modernize more than 75% of federal buildings and improve the energy efficiency of two million American homes, saving consumers and taxpayers billions on our energy bills. In the process, we will put Americans to work in new jobs that pay well and can’t be outsourced – jobs building solar panels and wind turbines; constructing fuel-efficient cars and buildings; and developing the new energy technologies that will lead to even more jobs, more savings, and a cleaner, safer planet in the bargain... To build an economy that can lead this future, we will begin to rebuild America. Yes, we’ll put people to work repairing crumbling roads, bridges, and schools by eliminating the backlog of well-planned, worthy and needed infrastructure projects. But we’ll also do more to retrofit America for a global economy. That means updating the way we get our electricity by starting to build a new smart grid that will save us money, protect our power sources from blackout or attack, and deliver clean, alternative forms of energy to every corner of our nation. It means expanding broadband lines across America, so that a small business in a rural town can connect and compete with their counterparts anywhere in the world. And, it means investing in the science, research, and technology that will lead to new medical breakthroughs, new discoveries, and entire new industries." -- President-elect Barack Obama, articulating his intent to "spark a green-energy economy" [Boston Globe, Jan. 8, 2009]

* "It [2009] will be a pretty tough year. I think you will see a return to the old-school methodology where things that have value will do well, and people will be selling things that are genuine necessities. It will be difficult to scramble out of the situation we’re in now, and people will be looking to the federal government and new administration to provide economic stimulus. In the mortgage industry, we’re on the cusp of rates being lowered. So, a refinance boom could occur, but that’s not necessarily a good indicator for the overall economy. Businesses in Palo Alto, the region and the nation will need to work very hard together to get out of the economic downturn by 2010." -- Tommy Fehrenbach, a loan officer at Palo Alto's Stern Mortgage Company, and chairman of the board of the 650-member Palo Alto Chamber of Commerce [Silicon Valley/San Jose Business Journal, Jan. 8, 2009]

* "I see a bumpy ride ahead next year [2009]. I’m hopeful the federal government infrastructure economic stimulus package that President-elect Barack Obama is supposed to introduce will provide an infusion of capital into local communities that will help reverse the economic slide we’re in. We’re seeing a softening of the retail market, which affects our city’s sales tax revenue that, in turn, reduces the amount of money available for city services and programs. I hope the infrastructure package can help reverse the softening of the employment market and, perhaps, restore consumer confidence." -- Daren Fields, economic development director, City of Fremont, Cal. [Silicon Valley/San Jose Business Journal, Jan. 8, 2009]

* “Our country is in the midst of one of the worse economic downturns of our time, and the year ahead will be difficult... Although we have a lot of work ahead of us, my colleagues and I are already working to find the best policy solutions to get our country back on track. I plan to implement an agenda for the 111th Congress that will tackle the housing crisis, help to create jobs, aid our schools and bolster our struggling small businesses.” -- Rep. Yvette D. Clarke [D-N.Y.] said in a published statement, just one day after being sworn into the 111th Congress. Clarke, the youngest African-American woman serving in Congress, was re-elected in November with 94 percent of the vote, and was also sworn in as whip of the Congressional Black Caucus on Tuesday. As a member of the Small Business Committee, she plans to advocate and lead efforts on improving the U.S. Small Business Administration’s [SBA] special contracting programs, to allow small businesses owned by disadvantaged individuals or located in impoverished areas to compete for government contracts -- including those identified as minority- and women-owned businesses. She also said she will seek to reintroduce H.R. 7087, which amends the Small Business Act to direct the SBA administrator to establish a grant program with funds available to state and local governments. Such funds would be used to assist eligible small businesses in building their capacity and access to contracting opportunities -- in particular, women and socially and economically disadvantaged enterprises. [Brooklyn Daily Eagle, Jan. 9, 2009]

* "The report confirms that our plan will likely save or create three to four million jobs... Ninety percent of these jobs will be created in the private sector. The remaining 10 percent are mainly public-sector jobs we save, like the teachers, police officers, firefighters and others who provide vital services in our communities... These made-in-America jobs building solar panels and wind turbines, developing fuel-efficient cars and new energy technologies pay well, and they can't be outsourced... Recovery won't happen overnight, and it's likely that things will get worse before they get better... We have come through moments like this before ... And I am confident that if we come together and summon that great American spirit once again, we will meet the challenges of our time and write the next great chapter in our American story." -- President-elect Barack Obama, during Saturday's weekly radio address, in which he discussed a 14-page analysis of his proposed $775 billion economic stimulus plan, designed to revive the ailing U.S. economy [AFP, Jan. 11, 2009]

GoodBiz113's take: The either/or days of yore -- i.e., that we have to choose between creating a sustainably healthy economy or a clean environment -- are long gone. President-elect Barack Obama and Vice President-elect Joe Biden have proposed an ambitious plan that effectively serves the interests of all Americans and the global environment. Now, regardless of our political stripes, we need to muster up an optimistic spirit and collaborate for the greater long-term good. To quote a win-win-winning campaign slogan: "Yes, We Can."

SOURCES: AFP, Boston Globe, Brooklyn Daily Eagle, CNNMoney.com, Library of Congress, Montgomery Adviser, Silicon Valley/San Jose Business Journal, Toledo Journal, U.S. Small Business Administration, Wall Street Journal
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Small Producers Outline Priorities for 2007 Farm Bill

The House Small Business Committee today brought together a broad cross-section of agriculture producers and rural organizations to examine the needs of small family farms and rural entrepreneurs in the upcoming debate on the 2007 Farm Bill.

Among the groups represented during the hearing:
* National Rural Electric Cooperative Association
* National Farmers Union
* National Corn Growers Association
* National Association of Wheat Growers

More than 70 percent of the nation's 2 million farms are small businesses-entrepreneurs that contribute to rural economies, and support their local communities by using the goods and services of thousands of other small firms.

"Small family farms are a critical part of rural communities, creating long-term stability and supporting entrepreneurship in the communities around them," said Chairwoman Nydia Velázquez. "We need to increase opportunity in rural areas, develop local resources, and sustain economic growth."

Many rural communities are coping with declining populations and wages, heightening the need for a comprehensive policy that creates new, more diverse economic opportunities. At the hearing, witnesses emphasized the need for high-quality economic growth. By creating an environment where small firms flourish, communities can maintain capital assets and create jobs that support rural families, including farmers.

These economic-development challenges are at the heart of the 2007 Farm Bill. It will address a wide range of issues -- such as rising energy costs, access to new markets, price supports and rural development -- that impact family farms and agribusinesses today.

Producers representing a variety of sectors within the industry discussed their priorities for the upcoming Farm Bill. Changes to the bill's commodity programs -- affecting the scope and size -- could have far-reaching effects on the competitiveness of farmers across the industry. Witnesses emphasized fruits and vegetables as potential new markets for small producers and, therefore, jobs and economic activity.

In addition to commodity programs, energy initiatives have assisted small producers, whose crops are fueling an expanding renewable energy sector. Small companies urged support for alternatives like cellulosic ethanol, and for infrastructure to further develop this booming industry where small businesses have taken the lead.

Infrastructure and other durable community resources may play a larger role in rural development discussions. Modifications to regulatory requirements, as well as the loans available in rural communities are a necessity to assisting small family farmers. These changes have the ability to create new opportunities and growth throughout rural America.

"In this year's Farm Bill, the stakes are high for small producers and agribusinesses, and it is critical that they are involved in this debate," Velázquez asserted. "Expanding markets and spurring opportunities for family farmers will help create a sustainable, prosperous future for rural areas nationwide."

The committee's assessment of the Farm Bill's impact on small producers is part of its ongoing work to promote economic development and entrepreneurship in rural America.

Last month, the committee passed the Small Energy Efficient Business Act of 2007, which offers assistance for the purchase and development of new energy technologies -- including biofuels -- through loans, education, and investment.

More than 20 agriculture trade organizations gathered at a recent Small Business Committee roundtable to discuss policies impacting small farmers and rural small businesses. The Subcommittee on Rural and Urban Entrepreneurship has also examined the ability of broadband to promote rural economic development.

To watch video highlights from today's Farm Bill hearing on YouTube, click here.
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Freshman Rep. Heath Shuler: Broadband Critical to Rural Economic Development

As broadband reaches more areas of the country, rural and agriculture-based communities are searching for better ways to maximize its local economic development potential. On Wednesday [May 9], providers and consumers of rural telecommunications services told the U.S. House Small Business Subcommittee on Rural & Urban Entrepreneurship that, while these technologies can increase investment and employment in their communities, they are not yet being used to their full potential.

"Many rural communities across the country are struggling to remain competitive," said subcommittee Chairman Heath Shuler [D-N.C.], elected to the 110th Congress last Nov. 7. "By harnessing new technologies, we can create new opportunities, improving the way businesses -- especially, farms -- operate, and reverse this trend."

Broadband technologies have proven to be a key component of rural communities' growth and prosperity, facilitating partnerships, creating online infrastructure, and expanding the market for goods and services.

For farmers, high-speed Internet technology that helps control costs and optimize production -- such as remote temperature monitoring -- can be especially important, because the industry operates with low profit margins. Broadband can also be instrumental in creating networks of entrepreneurs that can increase employment and spur additional investment.

Although this technology has reached 99 percent of ZIP codes, these benefits are only beginning to emerge in rural America.

"As today's economy changes, so do the needs of this nation's entrepreneurs," Chairman Shuler said. "Expanding the economic benefits of broadband is one way to help this nation's farmers and rural small businesses, increase the efficiency of their operations, and, in turn, support economic growth."

During the hearing, suppliers and consumers of rural broadband outlined strategies that use this technology to expand rural economic development. These innovative community partnerships, industry co-ops and economic synergies use broadband to accelerate economic activities in creative, scalable ways.

Furthermore, witnesses identified policies that can help more areas implement these programs -- including strengthening of the Universal Service Fund and Broadband Utility Service. By reducing costs and speeding the uptake of emerging technologies, these steps will promote the expansion of community and economic development initiatives.

"As today's discussion demonstrated, broadband can transform rural communities by bringing entrepreneurs together, and connecting small-business owners to customers," said Chairman Shuler. "This technology is exciting because we are still creating the new ways to use broadband for development in districts like mine. More needs to be invested to ensure this innovation and the development it encourages to reach all Americans."

Wednesday's hearing continues the committee's examination of rural economic development issues. Last week, the committee began a series on renewable fuels, with a look at how those technologies are encouraging development in rural America.

Click here to read to prepared testimony from Wednesday's hearing.
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