Affordable Care Act's One-Year Anniversary Marks Better Benefits, Better Health for Small Businesses

This week, as the U.S. Department of Health & Human Services [HHS] marks the one-year anniversary of enactment of the Affordable Care Act, it also kicks off its Better Benefits, Better Health Initiative. This initiative will highlight the important information that consumers, families and businesses need in order to optimize the far-reaching benefits of reform.

HHS is kicking off the initiative by highlighting some important information for small-business owners. Small-business owners and their employees have always gotten the short end of the stick, paying an average of 18% more for insurance that often covers less than the policies sold to their larger competitors. And small businesses lack the purchasing power that larger employers have.

That's all changing, thanks to the health-care law signed by President Obama one year ago. Thankfully, the Affordable Care Act is helping small-business owners get quality, affordable coverage for their families and their employees.

Here are some important things to know:

* If you own a small business with fewer than 25 fulltime-equivalent employees, you may qualify for a small-business tax credit to help offset the costs of covering your employees. Small-business owners can visit www.irs.gov/sbhtc to learn more.

* HHS estimates that up to 4 million small businesses could be eligible to receive these tax credits to make employees’ health coverage more affordable. And the tax credits will be worth a combined total of $40 billion over ten years.

* Employer-based plans that provide health insurance to retirees ages 55-64 can get financial help through the Early Retiree Reinsurance Program. This program is designed to maintain health coverage for retirees, workers, and employers. Visit http://www.errp.gov/ to learn more.

* If one of your workers has been uninsured because of a pre-existing condition, he or she may be eligible to join the Pre-Existing Condition Insurance Plan. To find out about plans available in your state, please visit: http://www.pcip.gov/.

* If you are in a new insurance plan, insurance companies cannot charge you or your workers a deductible or copays for recommended preventive services; e.g., mammograms, flu shots. Click here to find a list of preventive services that will be covered without copays.

In addition, insurance companies are prohibited from capping the dollar amount of care that you or your employees can receive in a lifetime, or dropping coverage due to an honest mistake on an application when someone gets sick. And they have to spend at least 80% of your premium dollars on health care and quality improvements, instead of overhead, salaries or administrative expenses -- or provide you and your workers a rebate.

To learn more about the specific provisions of the Affordable Care Act, visit: http://1.usa.gov/ProvisionsACA.

SOURCES: HealthCare.gov [photo], IRS.gov, U.S. Department of Health & Human Services, White House
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Bureau of Labor Statistics: U.S. Job Market Improved in December

The unemployment rate fell by 0.4 percentage point to 9.4 percent in December 2010 -- the lowest in months -- and nonfarm payroll employment increased by 103,000, the U.S. Bureau of Labor Statistics reported today.

"From a recent low point in December 2009, payroll employment has risen by 1.1 million -- or an average of 94,000 jobs per month," said BLS Commissioner Keith Hall [pictured], in a statement released early this morning. "In December, employment increased in leisure and hospitality and in health care, but was little changed in other major industries."

To read the complete text of the monthly jobs report, go to: http://bit.ly/DecemberJobs2010.

SOURCE: U.S. Bureau of Labor Statistics
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IRS Outlines New Tax Incentives Available to Small Businesses in 2010

This week, the Internal Revenue Service [IRS] released the Tax Changes for Small Businesses fact sheet. Last year, the Small Business Jobs Act of 2010, along with the Patient Protection and Affordable Care Act, provided key tax incentives for small businesses and self-employed individuals.

The IRS fact sheet highlights 2010 tax changes and details how taxpayers claim benefits.

"Through reforms in our nation’s troubling health-care system and by providing more than $12 billion in immediate, targeted tax incentives to small businesses, the last two years have been about supporting American’s small businesses," said Sen. Mary L. Landrieu [D-La., pictured], chair of the U.S. Senate Committee on Small Business and Entrepreneurship, and a lead sponsor of the Small Business Jobs Act of 2010. "As chair of the Senate Small Business and Entrepreneurship Committee, it has been my priority to find avenues to improve our nation’s economy and put dollars back into the pockets of America’s entrepreneurs.

"With tax season upon us, the IRS is making sure taxpayers are aware of these important deductions available to them. As we convene the 112th Congress, I will continue to fight for these small businesses to ensure that they continue to receive the tax incentives they need to drive our economy."

The IRS fact sheet breaks down the tax portions of the Small Business Jobs Act of 2010 and the Patient Protection and Affordable Care Act that are available to eligible small businesses in 2010. The document details the self-employed health insurance deduction, which allows self-employed individuals to deduct their health-care costs for payroll tax purposes.

In addition, the 2010 fact sheet outlines ways for small businesses to take advantage of the Small Business Health Care Tax Credit and the General Business Credit for Employers, as well as higher expensing and depreciating limits for small businesses.

The complete fact sheet, with the tax incentives available for small businesses for the 2010 tax year, is available on the "Resources" page of the Small Business Committee website at http://sbc.senate.gov/.

SOURCES: Internal Revenue Service, U.S. Senate Committee on Small Business and Entrepreneurship
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SBA Chief Announces One-Page Form for Claiming Small-Biz Health-Care Tax Credit

SBA Administrator Karen Mills [pictured] just released an open letter to small-business owners, announcing a simple one-page form that we can use to claim the health-care tax credit for 2010. Following, is the text of her letter:

* * *

December 2, 2010

Dear Small-Business Owner,

As I've traveled the country this year, I have heard from many of you who are looking forward to the new tax credits, health insurance exchanges, and other tools that will help you provide health insurance coverage to your employees as a result of the Affordable Care Act.

The most immediate benefit of the new law is a tax credit that will help America’s smallest employers and nonprofit organizations [fewer than 25 fulltime equivalent employees with average annual wages below $50,000] who have been hit hardest by premium increases in recent years. Today, I'm pleased to announce that the Administration is releasing a one-page form and instructions [available at http://bit.ly/SmallEmployers] on how to claim this credit for the 2010 tax year.

In addition, new guidance released today answers questions that many of you have asked related to: your current contribution arrangements, eligibility for certain religious institutions, and participation by multi-employer health and welfare plans. In each case, the Administration has worked to ensure that a broad range of small businesses can qualify.

These credits are available for tax years 2010 through 2013, and for any two years after that. Through 2013, the maximum tax credit is 35 percent of premiums paid by small employers, and 25 percent for eligible tax-exempt organizations. Beginning in 2014, those levels increase to 50 percent and 35 percent, respectively.

Importantly, these credits are just one of many benefits in the Affordable Care Act. Most notably, in 2014, firms with up to 100 workers will be able to pool their buying power and reduce their administrative costs by purchasing coverage through a health insurance exchange.

Finally, the new law strengthens America’s entrepreneurial spirit, overall. For example, it outlaws discrimination against those with pre-existing conditions, giving more Americans the ability to break out of "job lock" and start their own companies. The new law also prohibits insurance companies from dramatically increasing premiums for a small business just because one worker gets sick.

Overall, the Affordable Care Act is a critical tool that will help millions of small-business owners provide health insurance to people who you often consider to be members of your extended family -- your employees. As a nation, we owe you nothing less as you work to grow, create jobs, and lead us toward full economic recovery.

Warm regards,

Karen Mills
SBA Administrator

* * *

GoodBiz113's Take
This latest move effectively underscores the Affordable Care Act's profound import to small businesses' short- and long-term financial and tax-reporting interests. Once again, the Obama Administration has demonstrated that it truly believes in the power of small businesses to propel America's economy, and has delivered on its promise to promote entrepreneurship and affordable access to health care.

SOURCE: HealthCare.gov, Internal Revenue Service, U.S. Small Business Administration
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SBA Administrator Explains Important Health Care Tax Credit Info for Small Businesses

Administrator Karen Mills [pictured], of the U.S. Small Business Administration [SBA], has just written an open letter to small-business owners across the United States, explaining the immediate benefits available to small businesses as part of the Affordable Care Act.

Following, is the full text of her letter:

* * *

Dear Small-Business Owner,

For decades, access to affordable health insurance has been the No. 1 concern of small-business owners. To help you address that concern and provide quality, affordable coverage for your employees, the new Affordable Care Act gives you a number of new tools and benefits.

The most immediate benefit you should know about is the tax credit to help you pay for up to 35 percent of your employee premiums starting this tax year. An estimated 4 million small businesses may qualify for these tax credits, totaling about $40 billion over the next 10 years. Go here to learn more about the tax credit, including new information that explains how this federal credit is in addition to state-level credits you might receive, and how dental and vision coverage are also eligible for the federal credit.

The Affordable Care Act also included reporting requirements if you pay another business $600 or more, starting with 2013 filings. Small-business groups have voiced concerns about the possible burden this places on people like you. That’s why the IRS is already planning to exempt from this requirement your transactions that use credit and debit cards.

Also, the IRS, SBA and others in the Administration are looking for additional ways to minimize burdens and avoid duplicative reporting. We welcome your comments and input as we move forward together to address implementation issues under the new law.

Over the last 16 months, this Administration has taken steps to provide tax relief that puts more money in the hands of small-business owners like you -- including write-offs for new equipment, credits for hiring unemployed workers, and capital-gains exclusions for small-business investors. We know that sensible tax relief like this will help you grow your business, create new jobs, and continue drive America’s economic recovery.

With warm regards,

Karen Mills

* * *

For detailed information about the new Small Business Health Care Tax Credit, visit IRS.gov: http://bit.ly/SmallBizTaxCredit.

SOURCES: Internal Revenue Service, U.S. Small Business Administration, The White House
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Sen. Landrieu: Economy Improving, But More Help Is Needed for America's Small Businesses

Late yesterday, just hours after the U.S. Department of Labor's Bureau of Labor Statistics announced that approximately 162,000 Americans were put back to work in the month of March, United States Senator Mary L. Landrieu [D-La., pictured], chair of the Senate Committee on Small Business and Entrepreneurship, issued the following statement:

"Last month, approximately 162,000 Americans were put back to work -- a sign that the measures Congress is taking to improve the economic climate are working," said Landrieu. "While I am encouraged by the number of jobs that were created, there is still much work to be done to support the nation's small businesses and those Americans still out of work.

"To build on the successful recovery loan initiatives -- higher guarantees and fee waivers on borrowers of Small Business Administration loans -- I urge my colleagues in the Senate to work to adopt the provisions coming out of the Small Business Committee. With small business accounting for 65 percent of all new jobs, these proposals are aimed at creating jobs and spurring small-business growth, and have passed this Committee with bipartisan support."

Sen. Landrieu has proposed five measures to be included in the next jobs bill to be debated on the Senate floor. The measures include:

* Small Business Job Creation and Access to Capital Act of 2009 [S. 2869]: Raises the cap on small-business loans to increase lending by $5 billion the first year, and refinances commercial real estate debt into long-term, fixed-rate loans -- provisions that are expected to be budget neutral and could create/save 200,000 jobs;

* Small Business Export Enhancement and International Trade Act of 2009 [S.2862]: Boosts small businesses’ exporting potential by improving access to loans, counseling programs and coordination of existing federal export assistance resources, while injecting more than $1 billion in capital for small businesses and saving/creating as many as 50,000 jobs;

* Small Business Contracting Revitalization Act of 2010 [S. 2989]: Removes the red tape and closes loopholes that too often put government work into the hands of multinational corporations instead of Main Street businesses. Increasing contracts to small businesses by just 1 percent can create more than 100,000 jobs;

* Small Business Community Partner Relief Act of 2010 [S. 3165]: Strengthens SBA women’s business and microloan programs to ensure they have the funds and manpower needed to be successful resource partners and help small-business owners get the assistance they need; and

* SBIR/STTR Reauthorization Act of 2009 [S. 1233]: Encourages small businesses to develop new technologies in fields from health care and defense, to clean energy. These competitive grants are the largest source of federal R&D funding for small, high-tech firms. Twenty-percent of SBIR participants say they started their company in part because of a prospective SBIR award, creating thousands of jobs.

This week, Sen. Landrieu sent a letter to her Senate colleagues requesting their support for this legislation. To view a copy of the letter, please go to: http://bit.ly/LandrieuLetterJobsBill.

Detailed information on each proposal can be found here: http://bit.ly/SmallBizJobCreation.

SOURCES: GovTrack.us, U.S. Senate Committee on Small Business & Entrepreneurship
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March 17: Secretary Sebelius Takes Questions About Health Reform Via Yahoo! News and Ustream at 5:15 p.m. ET

Today, as our nation enters the home stretch on health reform, Health and Human Services Secretary Kathleen Sebelius will take your questions via Yahoo! News and Ustream. You can e-mail your questions to news-editorial@yahoo-inc.com, and then join the chat at 5:15 p.m. ET. The entire event will stream via White House Live.

"President Obama's health insurance reform plan will make our insurance system work for families, small-business owners, and individuals," Sebelius wrote in an op-ed piece published in today's Yahoo! News.

"First, it will protect families by ending the worst insurance practices," Sebelius explained. "It will outlaw the practice of arbitrarily canceling someone’s coverage and eliminate caps on benefits. It will also forbid insurance companies from denying you coverage because of a pre-existing condition like high blood pressure. So for the first time ever, every American will be able to get an insurance policy.

"Second, it will give self-employed workers and small-business owners the same private insurance choices as members of Congress by creating a new, consumer-friendly insurance marketplace called an exchange. Because this marketplace will allow consumers to band together to negotiate lower rates, it's estimated that premiums for many consumers will go down 14 to 20 percent for comparable coverage. And it will provide tax credits to help middle-class Americans and small-business owners buy insurance.

"Third, the president's plan will bring down costs for families, businesses, and government with the broadest package of health care cost-cutting measures that has ever come before Congress. A report from the Business Roundtable [an association of CEOs from leading U.S. companies] says these reforms could lower costs by as much as $3,000 per employee. According to the Congressional Budget Office, the president's plan will lower the federal deficit by about $100 billion over the next 10 years.

"Collectively, these changes will help give Americans control of their health care choices..."

To learn about what President Obama's proposal for health insurance reform specifically means to you, go directly to the following sites:

* Own a small business? http://bit.ly/SmallBizOwnersFAQ

* Have insurance through work? http://bit.ly/ThroughWorkFAQ

* Have Medicare coverage? http://bit.ly/MedicareFAQ

* Don't have any insurance? http://bit.ly/NoInsuranceFAQ

* Buy your own insurance? http://bit.ly/BuyOwnInsuranceFAQ

GoodBiz113's take: Health reform deserves everyone's full attention and understanding. Make time to learn about how President Obama's proposal for health reform will benefit you, your family, and/or small business. Then, contact your senator and/or representative in Congress ASAP, and ask them to vote for the triple-win plan this week: http://bit.ly/ElectedOfficials

SOURCES: Congressional Budget Office, HealthReform.gov, USA.gov, The White House [photo], Yahoo! News
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Healthcare Overhaul Could Save Money and Boost Jobs, Researchers Say

Health insurance reform will do more than provide coverage to millions, make health insurance more affordable, and slow long-term growth. It will also create jobs. According to two new studies, reform will slow cost increases for businesses, and free up money for raises and new jobs.

Following is an excerpt from a story by Duke Helfand, published in today's "Los Angeles Times":

“National healthcare legislation in Congress could slow the growth of medical costs, allowing employers to create 250,000 to 400,000 new jobs a year over the next decade, economists from Harvard University and USC are predicting.

"Wading into the hotly debated issue of whether the legislation is a job creator or a job killer, researchers from the two universities say that the reforms under consideration would slow the rate of cost increases and free up money for companies to raise wages and hire more workers.

"Specifically, healthcare savings could be achieved through proposals for greater competition in insurance markets, better coordination of care and shrinking administrative expenses, they said in a report to be released today. With those changes, employers could then reallocate money now spent on ever-growing premiums to other business priorities.”

To read the full story, go to: http://bit.ly/HealthcareOverhaul

GoodBiz113 Tools
* President Obama's Plan for Health Insurance Reform: http://www.whitehouse.gov/issues/health-care

* President Obama’s Weekly Address, "Health Insurance Reform, Small Business and Your Questions" [07/24/2009]: http://bit.ly/WeeklyHealthReformSmallBiz

* Health Insurance Reform Reality Check: http://bit.ly/HealthReformRealityCheck

* How Health Insurance Reform Will Help Small Business: http://bit.ly/SmallBizHealthReform

* Video: "Health Reform Will Benefit Small Business -- Not Burden It": http://bit.ly/RealityCheckSmallBizVideo

* Report: "The Economic Case for Health Care Reform": http://bit.ly/EconomicCase

* Report: "Helping the Bottom Line: Health Reform and Small Business": http://bit.ly/HelpingTheBottomLine

* Report: "Insurance at Risk: Small Business Employees Risk Losing Coverage": http://bit.ly/InsuranceAtRisk

* Report: "Lower Premiums, Stronger Businesses: How Health Insurance Reform Will Bring Down Costs for Small Businesses": http://bit.ly/StrongerBusinesses

* Report: "The Economic Effects of Health Care Reform on Small Businesses and Their Employees": http://bit.ly/EconomicEffects

SOURCES: Council of Economic Advisers, HealthReform.gov, Los Angeles Times, WhiteHouse.gov
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Verbatim: President Obama Clarifies How Health Insurance Reform Plan Will Benefit All Americans

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

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

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

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

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


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

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

* * *

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

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

* * *

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

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

* * *

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

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

* * *

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

* * *

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

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

* * *

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

* * *

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

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

* * *

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

* * *

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

* * *

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

* * *

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

* * *

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


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

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

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

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

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

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

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

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

SOURCES: CNN.com, Denver Business Journal, Post-Bulletin, The White House [photo by Pete Souza]
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CEA Chair Christina Romer, Ph.D.: Health Insurance Reform Will Benefit Small Business -- Not Burden It

"Whether or not you have health insurance right now, the reforms we seek will bring stability and security that you don't have today. This isn't about politics. This is about people's lives. This is about people's businesses. This is about our future." -- President Barack Obama

As misinformation about health-care-reform proposals virally spews from the shameless likes of the National Federation of Independent Business, U.S. Chamber of Commerce and other counterproductive entities so intent on maintaining the inert status quo, the White House has released a Health Insurance Reform Reality Check. The website features videos of eight key people providing personal, professional and, above all, factual accounts of just how, exactly, health insurance reform will truly benefit Americans.

While all of the videotaped accounts are credible, concise and well worth anyone's time in gleaning valuable firsthand information about proposed health insurance reform, GoodBiz113 readers will likely be most interested in the segment featuring Christina Romer, Ph.D., chair of the Council of Economic Advisers [CEA].

In her three-minute testimonial, Dr. Romer debunks the myth that health insurance reform will hurt small businesses. To the contrary, she notes, reform will ease the burdens on small businesses and help level the playing field with big firms who pay much less to cover their employees on average.

To watch Dr. Romer's videotaped account and/or read the transcript, go to: http://www.whitehouse.gov/realitycheck/21.

Get the facts about the stability and security you get from health insurance reform: http://www.whitehouse.gov/realitycheck/.
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President Obama: Health Insurance Reform Will Strengthen Small Businesses

In his weekly address, President Barack Obama [pictured] cited a report released this morning by the Council of Economic Advisers in explaining how health insurance reform will strengthen small businesses in America. With small businesses paying up to 18 percent more for health insurance than large businesses, too many small businesses are forced to cut benefits, law off workers, or close down entirely. Health insurance reform will support small businesses by allowing them purchase plans through an insurance exchange and by providing tax credits to help them provide benefits.

* * *

Following, is the full text of President Obama's remarks:

I recently heard from a small-business owner from New Jersey who wrote that he employs eight people and provides health insurance for all of them. But his policy goes up at least 20 percent each year, and today, it costs almost $1,400 per family per month -- his highest business expense besides his employees’ salaries. He’s already had to let two of them go, and he may be forced to eliminate health insurance altogether.

He wrote, simply: "I am not looking for free health care. I would just like to get my premiums reduced enough to be able to afford it."

Day after day, I hear from people just like him. Workers worried they may lose their coverage if they become too sick, or lose their job, or change jobs. Families who fear they may not be able to get insurance, or change insurance, if someone in their family has a pre-existing condition. And small-business owners trying to make a living and do right by the people they employ.

These are the mom-and-pop stores and restaurants, beauty shops and construction companies that support families and sustain communities. They’re the tiny startups with big ideas, hoping to become the next Google or Apple or HP. And, as shown in a new report released today by the White House Council of Economic Advisers, right now they are getting crushed by skyrocketing health care costs.

Because they lack the bargaining power that large businesses have and face higher administrative costs per person, small businesses pay up to 18 percent more for the very same health insurance plans -- costs that eat into their profits and get passed on to their employees.

As a result, small businesses are much less likely to offer health insurance. Those that do tend to have less generous plans. In a recent survey, one-third of small businesses reported cutting benefits. Many have dropped coverage altogether. And many have shed jobs, or shut their doors entirely.

This is unsustainable, it’s unacceptable, and it’s going to change when I sign health insurance reform into law.

Under the reform plans in Congress, small businesses will be able to purchase health insurance through an "insurance exchange" -- a marketplace where they can compare the price, quality and services of a wide variety of plans, many of which will provide better coverage at lower costs than the plans they have now. They can then pick the one that works best for them and their employees.

Small businesses that choose to insure their employees will also receive a tax credit to help them pay for it. If a small business chooses not to provide coverage, its employees can purchase high-quality, affordable coverage through the insurance exchange on their own. Low-income workers -- folks who are more likely to be working at small businesses -- will qualify for a subsidy to help them cover the costs.

And, no matter how you get your insurance, insurance companies will no longer be allowed to deny you coverage because of a pre-existing condition. They won’t be able to drop your coverage if you get too sick, or lose your job, or change jobs. And we’ll limit the amount your insurance company can force you to pay out of your own pocket.

To view the new report and learn more about how health insurance reform will help small businesses, go to WhiteHouse.gov, and send us your questions and comments. We’ll answer as many of them as we can later this week.

Over the past few months, I’ve been pushing hard to make sure we finally address the need for health insurance reform, which has been deferred year after year, decade after decade. And today, after a lot of hard work in Congress, we are closer than ever before to finally passing reform that will reduce costs, expand coverage, and provide more choices for our families and businesses.

It has taken months to reach this point, and once this legislation passes, we’ll need to move thoughtfully and deliberately to implement these reforms over a period of several years. That is why I feel such a sense of urgency about moving this process forward.

Now, I know there are those who are urging us to delay reform. And some of them have actually admitted that this is a tactic designed to stop any reform at all. Some have even suggested that, regardless of its merits, health care reform should be stopped as a way to inflict political damage on my Administration. I’ll leave it to them to explain that to the American people.

What I’m concerned about is the damage that’s being done right now to the health of our families, the success of our businesses, and the long-term fiscal stability of our government. I’m concerned about hard-working folks who want nothing more than the security that comes with knowing they can get the care they need, when they need it. I’m concerned about the small-business owners who are asking for nothing more than a chance to seize their piece of the American Dream. I’m concerned about our children and grandchildren who will be saddled with deficits that will continue piling up year after year unless we pass reform.

This debate is not a political game for these Americans, and they cannot afford to keep waiting for reform. We owe it to them to finally get it done -- and to get it done this year. Thank you.

* * *

To read and/or download the Council of Economic Advisers' report, "The Economic Effects of Health Care Reform on Small Businesses and Their Employees," go directly to: http://budurl.com/HealthReformSmallBiz.

SOURCES: Council of Economic Advisors, The White House
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Verbatim: Diverse Voices Address Small-Biz Need for Health Care Reform

As often as possible, GoodBiz113 presents diverse perspectives on small business and entrepreneurship from those who help shape policies and practices that impact us. Here's what some folks have been saying these past couple of weeks about the hot-button subject of health care reform...

"Health care expenditures in the United States are currently about 18 percent of GDP, and this share is projected to rise sharply. If health care costs continue to grow at historical rates, the share of GDP devoted to health care in the United States is projected to reach 34 percent by 2040. For households with employer-sponsored health insurance, this trend implies that a progressively smaller fraction of their total compensation will be in the form of take-home pay and a progressively larger fraction will take the form of employer-provided health insurance.

"The rising share of health expenditures also has dire implications for government budgets. Almost half of current health care spending is covered by Federal, state, and local governments. If health care costs continue to grow at historical rates, Medicare and Medicaid spending [both federal and state] will rise to nearly 15 percent of GDP in 2040. Of this increase, roughly one-quarter is estimated to be due to the aging of the population and other demographic effects, and three-quarters is due to rising health care costs.

"Perhaps the most visible sign of the need for health care reform is the 46 million Americans currently without health insurance. CEA projections suggest that this number will rise to about 72 million in 2040 in the absence of reform. A key factor driving this trend is the tendency of small firms not to provide coverage due to the rising cost of health care." -- Council of Economic Advisers [CEA], chaired by Christina Romer [pictured], "The Economic Case for Health Care Reform" [June 2, Executive Office of the President]

* * *

"Nobody supports the status quo. We absolutely have to have reform... If this thing gets derailed, it's going to be bad for everybody." -- James Gelfand, senior manager of health policy, U.S. Chamber of Commerce, noting that a government plan wouldn't be needed if insurance market reforms, such as prohibiting insurers from denying coverage for pre-existing conditions, were enacted. He hopes the larger goal of health care reform -- lowering costs so more people can afford coverage -- doesn't get lost in battles over public plans and employer mandates. [June 8, "Business Warily Awaits Health Care Reform," Washington Business Journal]

* * *

"...At the individual level, the average American spends about $7,900 per year on health care. Despite that huge outlay, a recent study found that medical problems contributed to 62 percent of all bankruptcies in 2007. From a business perspective, General Motors spends more on health care per automobile than on steel while small-business owners are forced to divert hard-earned profits into health coverage for their employees -- rather than new business investments. And, because of rising costs, many businesses are cutting back drastically on their level of health care coverage or are doing away with it entirely..." -- Sen. Bernie Sanders [I-Vt., pictured], "Health Care Is a Right, Not a Privilege" [June 9, The Huffington Post]

* * *

"It's not tax supported like Medicare; it will be financed by premiums just like regular insurance, except for people who can't afford it. If you have coverage that works, you continue to have coverage that works. The only change will be now the coverage will have to be good. The other change is that your company will be required to provide good coverage or help pay for it. So, for most Americans, nothing's going to change. But for people who don't get coverage that works -- the self-employed, people with several part-time jobs, small business -- they will be able to go into a new health insurance marketplace called the Exchange, a national public insurance company financed by premiums. Unless they make below a certain level, four times poverty, and then they'll be subsidized." -- Richard Kirsch, national campaign manager, Health Care for America Now [HCAN], a national grassroots campaign of more than 1,000 organizations in 46 states -- representing 30 million people -- dedicated to winning comprehensive, quality, affordable health care that we can all count on in 2009. [June 9, "What's the Deal With Obama's Public Health-Care Plan?" Esquire]

* * *

"...The cost of health care has helped leave big corporations like GM and Chrysler at a competitive disadvantage with their foreign counterparts. For small businesses, it’s even worse. One month, they’re forced to cut back on health care benefits. The next month, they've got to drop coverage. The month after that, they have no choice but to start laying off workers...

"I know that there are millions of Americans who are happy, who are content with their health care coverage -- they like their plan, they value their relationship with their doctor. And no matter how we reform health care, I intend to keep this promise: If you like your doctor, you'll be able to keep your doctor; if you like your health care plan, you'll be able to keep your health care plan.

"So don't let people scare you. If you like what you've got, we're not going to make you change. But in order to preserve what's best about our health care system, we have to fix what doesn't work. For we've reached the point where doing nothing about the cost of health care is no longer an option. The status quo is unsustainable. If we don't act, and act soon to bring down costs, it will jeopardize everybody's health care. If we don't act, every American will feel the consequences in higher premiums -- which, by the way, means lower take-home pay, because it's not as if those costs are all borne by your employer; that's money that could have gone to giving you a raise -- in lost jobs and shuttered businesses, in a rising number of uninsured and a rising debt that our children and their children will be paying off for decades..." -- President Barack Obama, during remarks made at a town hall meeting in Green Bay, Wis., on health care and his vision for a Health Insurance Exchange. [June 11, Executive Office of the President]

* * *

"Small businesses in the United States are suffering great harm under our current health care system, and will likely fare far better under a substantially reformed system along the lines of what is currently being debated in Washington -- as long as such a system offers appropriate levels of assistance to small businesses in meeting their health care obligations." -- Small Business Majority, a national nonprofit nonpartisan organization, founded and run by small-business owners, that brings the voice of America's 27 million small businesses to the public-policy table. [June 11, "The Economic Impact of Healthcare Reform on Small Business"]

* * *

"A national health insurance exchange would offer an array of competing private plans and a new public health insurance plan, helping to improve coverage for 138 million currently insured individuals through more choices, better benefits, and/or more affordable premiums, which would be 20 to 30 percent lower than those now charged in the individual and small-business markets for comparable benefits and enrollees. Savings would be realized by employers and households at every income level." -- The Commonwealth Fund, who co-sponsored a report with Consumers Union, suggesting that a comprehensive and high-quality health care system can be established with a mixed public-private insurance system, a requirement for all employers to offer or contribute to coverage of their workers, and an individual coverage mandate. [June 11, "Front and Center: Ensuring That Health Reform Puts People First"]

GoodBiz113's take: Health care is not a Democatic issue nor a Republican issue; it's a very human issue that deserves to be remedied now. Naysayers need to put their politics and egos aside, and embrace President Obama's far-reaching plan that aims to deliver high-quality care at relatively low cost, and provides health insurance for all Americans.

SOURCES: The Commonwealth Fund, Council of Economic Advisers, Esquire, Huffington Post, Small Business Majority, U.S. Department of Health and Human Services, Washington Business Journal, The White House, Wikipedia
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HHS Secretary Sebelius: Women and Small Businesses Pay 'Particularly High Price' Under Current Health Care System

Health and Human Services [HHS] Secretary Kathleen Sebelius and Tina Tchen, director of the White House Office of Public Engagement and executive director of the White House Council on Women and Girls, hosted a roundtable discussion yesterday with women small-business owners and discussed the urgent need for health care reform.

At the meeting, Sebelius also released a new report, "Roadblocks to Health Care: Why the Current Health Care System Does Not Work For Women." The report shows how our current system is leaving millions of women without the affordable, quality care they need and can be read at http://www.HealthReform.gov/. The new report and roundtable came as America celebrates National Women’s Health Week.

"All Americans are suffering under the current system, but women and small businesses are paying a particularly heavy price," said Secretary Sebelius. "Millions of women are uninsured, and small businesses are struggling to give their workers the care they need and deserve. We can’t wait to pass comprehensive health care reform and give women -- and all Americans – the health care system we need."

According to the just-released "Roadblocks to Health Care" report:

* 21 million women and girls are uninsured;

* In the individual insurance market, women are often charged higher premiums than men during their reproductive years. Holding other factors constant, a 22-year-old woman can be charged one and-a-half times the premium of a 22-year-old man; and

* In a recent national survey, more than half of women [52 percent] reported delaying or avoiding needed care because of cost, compared with 39 percent of men.

"Across the country, women and girls are going without care or paying too much for inadequate coverage," added Director Tchen. "President Obama and the White House Council on Women and Girls are committed to improving the health of all women, and we know that health care reform is essential to achieving our goal."

At the roundtable, Sebelius and Tchen also discussed the difficulties that small businesses face when attempting to provide health benefits to their employees. Nearly three-quarters of small businesses that do not offer benefits cite high premiums as the reason. Small businesses that do offer health benefits are suffering. Forty percent of businesses that provide health care coverage say health costs have had a negative impact on other parts of their business.

"Skyrocketing costs are making it difficult, if not impossible, for businesses to give their employees the benefits they deserve," added Sebelius. "Real reform will ease the burden on small business and help businesses stay competitive."

The roundtable discussion was held at Stitch DC, a knitting store owned by Nora and Marie Connolly, who participated in the discussion. Other participants included: Denise D’Amour, co-owner, Capitol Hill Bikes; Laurie Morin, co-owner, Capitol Hill Bikes; Erin Mara, co-owner, Homebody; Leah Daniels, co-owner, Hill’s Kitchen; and Angela Bradley, owner, BTI Security.

SOURCES: Centers for Disease Control and Prevention, U.S. Department of Health and Human Services
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Verbatim: Leaders Advocate Small-Business Outreach, Lending, Health Care, Micro-Credit, Optimism and Passion

Periodically, GoodBiz113 presents diverse views on small business and entrepreneurship -- directly from those who help shape small-business policies and practices. Here's what some key influencers said last week.

“We’ve received very positive feedback from entrepreneurs throughout the state who have attended recent Small Business Committee outreach conferences... These events have helped Louisianians learn how to get SBA-backed loans, secure federal contracts, and create new jobs for Louisiana’s workers. I look forward to another successful outreach conference in Baton Rouge to help our local small business owners manage a business that will add new jobs for the state and help get our economy back on track.” -- Sen. Mary Landrieu [D-La.], chair of the U.S. Senate Committee on Small Business and Entrepreneurship, announcing that that the committee will host a Small Business Outreach Conference on Friday, May 15, from 10 a.m. to 2 p.m., at the Baton Rouge River Center in Baton Rouge, La., for small-business owners looking to utilize federal and state small-business assistance programs.

Sen. Landrieu's committee will work with the U.S. Small Business Administration [SBA] and Louisiana Economic Development [LED] to provide brief overviews of SBA lending programs, federal contracting opportunities, LED’s Small and Emerging Business Development Program, plus other programs to help small businesses maintain and grow their businesses in this tough economic climate. The committee held several similar outreach conferences in Lafayette, Lake Charles and Shreveport, La., and plans to hold additional outreach conferences throughout the state in the coming months. [May 4, U.S. Senate Committee on Small Business and Entrepreneurship]

* * *

"It's a bit of progress. Is it going to be sustainable? I don't know. The key is whether or not you can convince small businesses that now is the time to invest, given the historic low interest rates and fee reductions available through SBA financing." -- Kurt Chilcott, president of CDC Small Business Finance, a San Diego, Cal., lender of SBA-backed 504 loans. It approved $20.3 million in loans in April, up from $11.6 million in March. [May 5, The Wall Street Journal]

* * *

"Lack of access to affordable health-care coverage is a huge crisis for the small-business community in Maine and across the country. If we exclude action to address dysfunctional small group insurance markets from health-reform legislation, then we are going to leave 52 percent of the uninsured behind... The simple truth is that reform is going to require we realize savings – both to reduce the high burden of health-care costs and to enable us to assist those who truly need help to access care. We must not ignore promising measures such as SHOP, which can make fundamental improvement in coverage without increasing deficits. This is simply a common sense reform." -- Sen. Olympia Snowe [R-Maine], ranking member of the U.S. Senate Committee on Small Business and Entrepreneurship, and a member of the Senate Finance Committee.

In a May 5 roundtable discussion with the Senate Finance Committee, Sen. Snowe argued that limiting health-care coverage to firms with 10 or fewer employees will result in the failure to cover the 26 million uninsured Americans who work for firms with fewer than 100 employees. She is now moving to reintroduce the Small Business Health Options Program [aka SHOP Act], which permits small businesses and the self-employed to work together, across state lines, to secure affordable coverage and find ways to reduce administrative costs. [May 6, The Exception Magazine]

* * *

"To get out of this recession, we need to do all that we can to help established small businesses and prospective entrepreneurs succeed and create new jobs... Just as they have in the past, small firms promise the surest path to a recovery, and these initiatives give them the right tools and support they need to prosper." -- Rep. Nydia M. Velázquez [D-NY], chairwoman of the House Small Business Committee, during a committee hearing to examine a bipartisan legislative package that would update key entrepreneurial development programs within the SBA.

On May 6, Velázquez' committee reviewed a print of the Job Creation Through Entrepreneurship Act of 2009. If enacted, the legislation would mark the first overhaul of the SBA's entrepreneurial development programs in a decade. The measure expands specific programs, such as Small Business Development Centers [SBDCs], Women's Business Centers [WBCs] and the Service Corps of Retired Executives [SCORE]. The bill also creates new support programs for veteran-owned and Native American-owned small businesses; improves cross-program coordination to maximize use of program resources; and creates 21st century online learning initiatives for entrepreneurs. In addition, the bill creates a grant program for SBDCs, specifically designed to assist small firms in securing capital and credit. [May 7, U.S. House Committee on Small Business]

* * *

"Micro-credit has been one area where there has been no impact of the current banking crisis. It is still as robust as ever... The micro-credit system will play an important role in the recovery process, because people are losing jobs and the banks are not giving loans. The micro-credit system will help in creating self-employment by giving small loans, which in turn will help the economy." -- Professor Mohammad Yunus, an economist who won the 2006 Nobel Peace Prize 30 years after launching the innovative Grameen Bank project in Bangladesh in 1976.

In January 2008, the bank opened its first branch, Grameen America, in the Jackson Heights area of Queens in New York. In its first year, it lent a total of $1.5 million to more than 700 people to start small businesses or grow existing enterprises. [May 7, BBC News]

* * *

"The president made a commitment that we will stand behind the auto companies and workers... Clearly, the problems that we face, and the challenges that we face today, didn't occur overnight and they're not going to be solved overnight. We need to get the economy growing. We need to get people buying automobiles again." -- Ed Montgomery, President Barack Obama's Director of Recovery for Auto Communities and Workers, during a two-day swing through Michigan to listen to pleas for help from local officials and workers in cities stretching from Grand Rapids to Detroit. [May 8, Chicago Tribune]

* * *

"...I have little doubt that there will be various interests -- vocal and powerful -- who will oppose different aspects of this budget. Change is never easy. However, I believe that after an era of profound irresponsibility, Americans are ready to embrace the shared responsibilities we have to each other and to generations to come. They want to put old arguments and the divisions of the past behind us, put problem-solving ahead of point-scoring, and reconstruct an economy that is built on a solid new foundation. If we do that, America once again will teem with new industry and commerce, hum with the energy of new discoveries and inventions, and be a place where anyone with a good idea and the will to work can live their dreams..." -- President Barack Obama [pictured above, with Office of Management and Budget [OMB] Director Peter Orszag, left, and Deputy Director Robert Nabors], upon presenting his Budget of the United States Government for Fiscal Year 2010 to the 111th Congress. [May 8, Office of Management and Budget]

* * *

"Step by step, we are beginning to make progress. Of course, that is no solace for those who have lost their jobs, or to the small-business owners whose hearts break at letting longtime employees go." -- President Barack Obama, shortly after the government announced that the unemployment rate rose to a 25-year high of 8.9 percent in April. Labor Department figures show that 539,000 Americans lost their jobs last month, compared to more than 600,000 in March. [May 8, Voice of America]

* * *

"You will succeed, and your success will define you and the future of America... Passion is the driver of America's successful small businesses. It is the basis for our country's entrepreneurial spirit. And I strongly believe that this class has both an opportunity -- and a responsibility -- to discover and pursue your passion." -- SBA Administrator Karen G. Mills, addressing approximately 1,871 University of Maine Class of 2009 graduates at two ceremonies on Saturday, May 9.

Mills, whose career is characterized by notable successes in managing various kinds of businesses and in raising capital to support entrepreneurs, delivered an upbeat message for graduates entering the job market during difficult economic times. She pointed to passion as the defining characteristic of successful business owners, particularly in the context of small-business operations, and noted that small businesses are responsible for half of private-sector jobs and that they have created 70 percent of new jobs in the past decade. [May 9, The University of Maine]

SOURCES: BBC News, Chicago Tribune, Library of Congress, Office of Management and Budget, U.S. House Committee on Small Business, U.S. Senate Committee on Small Business and Entrepreneurship, U.S. Small Business Administration, The University of Maine, Voice of America, The Wall Street Journal, The White House
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President Obama's First 100 Days Include $730 Million Jump-Start for America's Small Businesses

Today, as the nation marks President Barack Obama's first 100 days in office, small businesses can celebrate the strides that Obama has made on our behalf -- primarily, via the landmark American Recovery and Reinvestment Act of 2009 [Recovery Act], which he signed into law on Feb. 17, 2009. It is an unprecedented effort to jump-start America's economy; create or save millions of jobs; and put a down payment on addressing long-neglected challenges, so that our country can thrive in the 21st century.

The economic stimulus bill is an extraordinary response to a crisis unlike any since the Great Depression, and includes measures to modernize our nation's infrastructure; enhance energy independence; expand educational opportunities; preserve and improve affordable health care; provide tax relief; and protect those in greatest need.

Recovery Act Provides $730 Million to SBA
According to the U.S. Small Business Administration [SBA], the Recovery Act will have a significant impact on small businesses and on the credit crunch, providing tax incentives and financing opportunities that will help us create jobs.

The Recovery Act makes SBA part of the solution, providing it with specific tools to make it easier and less expensive for small businesses to get loans, give lenders new incentives to make more small business loans, and help unfreeze the secondary markets to boost liquidity in the credit markets.

More details on implementation will be coming during the next few weeks. For now, though, take note that the bill provides $730 million to SBA, and makes changes to the agency’s lending and investment programs so that they can reach more small businesses that need help.

The funding includes $375 million for temporarily eliminating fees on SBA-backed loans and raising SBA's guarantee percentage on some loans to 90 percent. The elimination of fees, announced on March 16, will remain in effect until the end of the calendar year or until the funding is exhausted. The elimination of fees is retroactive to the day the Recovery Act was signed into law.

Additional funding provisions include:

* $255 million for a new loan program to help small businesses meet existing debt payments

* $30 million for expanding SBA’s Microloan program -- enough to finance up to $50 million in new lending and $24 million in technical assistance grants to microlenders

* $20 million for technology systems to streamline SBA’s lending and oversight processes

* $15 million for expanding SBA’s Surety Bond Guarantee program

* $25 million for staffing up to meet demands for new programs

* $10 million for the SBA's Office of Inspector General

For more information about how SBA intends to implement Recovery Act funding, go to: http://www.sba.gov/recovery/information/index.html.

Next Steps
President Obama will conduct a prime-time news conference tonight on CBS, ABC, NBC, CNN, MSNBC and CNBC at 7 p.m. CST. In case you miss watching and/or recording the live event, CNN will rebroadcast the news conference at 12 a.m. CST.

TIME photographer Callie Shell has compiled a fascinating collection of photos depicting President Obama's first 100 days in the Oval Office. Several are published in the May 4 issue of TIME magazine. You can also view the entire photo essay online at http://time.com/100days.

SOURCES: U.S. Small Business Administration, White House
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Verbatim: Small Business and Loans, Youth, Credit Cards, Health Care, Plus New and Effective Leadership [Finally!]

Periodically, GoodBiz113 presents diverse views on small business and entrepreneurship -- directly from those who shape small-business policies and practices. Here's what some key influencers said last week...

"I want Minnesotans to be able to rely on me for assistance with the federal government. Whether it's a Social Security check, a small-business loan, or help for a returning veteran, my office will be there for the people of our state, following the examples set by Sen. Klobuchar, our fine congressional delegation, and those who came before us. That's the Minnesota way, and nobody is better at it than Alana. Drawing on her wealth of experience and her ability to reach out to every constituency in Minnesota, when I have the privilege of being certified, she'll work with me to ensure that we hit the ground running on Day One." -- U.S. Senator-elect Al Franken [D-Minn., pictured], announcing that Alana Petersen has agreed to serve as his Minnesota State Director, citing his commitment to continuing Minnesota's tradition of excellent constituent services

Petersen is a life-long resident of Minnesota who has spent the last five years working in outreach and organizing for Rep. Jim Oberstar. [April 20, Al Franken for Senate]

* * *

"The uncertain economy has forced many Americans to turn to part-time jobs once held by teenagers. This has pushed the number of teens employed to the lowest it's been in at least 10 years. Now, unable to find part-time and summer jobs, some teens are turning their passions into small businesses... Not only is starting a small business becoming a necessary way for many to earn money, it's also a way for young people to tap into their talents and use them to build a business they can be proud of. Creating a business teaches young people the importance of hard work, dedication and having a strong work ethic -- all habits that will help to carry them through a successful life." -- Sen. Mary Landrieu [D-La.], chair of the U.S. Senate Committee on Small Business and Entrepreneurship

Landrieu hosted a simulated hearing for a youth group, entitled "Tomorrow's Entrepreneurs: Why Young People are Starting Small Businesses." The hearing was part of last Monday's Take Our Daughters and Sons to Work Day on Capitol Hill, and was designed to inspire youth to turn their creative passions into successful businesses. [April 23, U.S. Senate Committee on Small Business and Entrepreneurship]

* * *

"We want to preserve the credit card market, but we also want to do so in way that eliminates some of the abuses and some of the problems that a lot of people are familiar with... People find themselves starting out with a low rate and the next thing they know, the rate has doubled and fees they didn't know about are tacked on." -- President Barack Obama, after meeting with executives of the 13 leading credit card companies, whose "anytime, any-reason rate hikes and late-fees traps," he said, hurt individuals and small businesses

Obama said he will be working with Congress on new regulations for the industry. Reforms, he noted, should include strong protection for consumers and agreements that are written in clear and simple language. [April 23, USA Today]

* * *

"San Francisco takes great pride in being home to over 95,000 small and new startup businesses -- the dreamers and doers who really add such richness to our city... Despite facing economic challenges, San Francisco, with its metropolitan setting and world-class culture, continues to be an ideal location for startup business ventures because we recognize the small-business sector as being the backbone of San Francisco’s economic landscape." -- San Francisco Mayor Gavin Newsom, a small-business owner himself [PlumpJack Wines]

Last week, Newsom announced that his office will partner with the U.S. Small Business Administration's San Francisco District Office, the San Francisco Small Business Commission, Wells Fargo, PG&E, Comcast, FirstStep Marketing, the San Francisco Chamber of Commerce, and the San Francisco Small Business Development Center to present events around the Bay Area to celebrate National Small Business Week, May 16-23, 2009. [April 24, SBA's San Francisco District Office]

* * *

"Director of the White House's National Economic Council, Larry Summers, also took part in the discussion. He stressed that small businesses are the backbone of the American economy: 'There’s never been a big business which didn’t start as a small business.' He noted that providing health care coverage for employees is especially costly for small businesses, and 'as a country, we can do much, much better than we are.' Health care reform, he said, is both a moral issue for our children and a deeply practical issue – and this year, we have a good chance to make this right." -- Excerpt from a White House blog post by Rebecca Adelman, U.S. Department of Health and Human Services [HHS], recapping an April 24 meeting hosted by Nancy-Ann DeParle, director of the newly established White House Office of Health Reform

The meeting included 20 representatives from small businesses across the country, who affirmed findings in the just-released HHS report, "Helping the Bottom Line: Health Reform and Small Business" -- i.e., that small businesses are uniquely feeling the impact of skyrocketing health care costs. Last Friday's event was part of the Obama administration’s continuing series of White House Health Care Stakeholder Discussions.

* * *

"I look forward to working with Ms. Mills in coming months. After seeing SBA underfunded and mismanaged for the last eight years, it is fair to say she will certainly have her work cut out for her. Small businesses need an effective SBA now more than ever, and that starts with new leadership. It is my hope that Ms. Mills will bring the necessary fresh thinking and vigor to renew and strengthen this agency, so that it better serves entrepreneurs' needs." -- Rep. Nydia Velázquez [D-N.Y.], U.S. House Small Business Committee chair, after the Senate late last night confirmed Karen Gordon Mills as the next administrator to lead the SBA. [April 27, U.S. House Small Business Committee]

SOURCES: Al Franken for Senate, HHS, SBA, U.S. House Small Business Committee, U.S. Senate Committee on Small Business and Entrepreneurship, USA Today, White House
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