Landrieu Votes Against Snowe Regulatory Amendment, Citing Lack of Congressional Review

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

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

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

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

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

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

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

SOURCES: GovTrack.us, Library of Congress, U.S. Senate Committee on Small Business and Entrepreneurship, U.S. Small Business Administration
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Sen. Landrieu: Small-Business Innovation Now in Jeopardy

Sen. Mary L. Landrieu [D-La., pictured], chair of the Senate Committee on Small Business and Entrepreneurship, made the following statement after this morning’s cloture vote on the SBIR/STTR Reauthorization Act of 2011:

"Today was our last chance to reauthorize these important programs and provide some continuity to the small businesses that depend on them," Sen. Landrieu said. "I have to thank the many groups that went out of their way to support this bill, and who offered concessions during our negotiations to ensure a long-term reauthorization was possible.

"This bill, which reauthorizes the federal government’s largest research-and-development programs for small businesses, passed out of our committee with nearly unanimous support, but wound up hitting a brick wall when it reached the Senate floor.

"Unfortunately, some senators chose to stonewall in a self-serving effort to get their way on unrelated issues instead of letting every U.S. Senate committee do their due diligence with regulatory reform.

"Despite having so much bipartisan support going into this debate, not one Republican voted for this job-creating small-business bill -- even those senators in states like Massachusetts, Texas, Pennsylvania and Florida, where almost 23,000 small businesses have gotten billions in SBIR and STTR projects.

"The door may have shut today for reauthorization of programs that have given us companies that are the envy of the world -- like Qualcomm, Sonicare and iRobot. But rest assured, at some point, we will find a way get this done."

SOURCES: GovTrack.us, U.S. Senate Committee on Small Business and Entrepreneurship
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Senators Reid, Landrieu Discuss Impact of Jobs Bill to Boost Innovation by Small Businesses

Nevada Senator Harry Reid [pictured] and Louisiana Senator Mary Landrieu, chair of the Committee on Small Business and Entrepreneurship, today discussed the U.S. Senate’s third jobs bill: Reauthorization of the Small Business Innovation Research [SBIR] and Small Business Technical Transfer [STTR] programs.

First passed under President Ronald Reagan in 1983, these initiatives have awarded more than 89,000 research and development grants worth more than $28 billion to help thousands of small businesses across the country expand and hire new workers.

The senators were joined on the call by Dr. Kenneth Eilertsen, Vice President and Chief Scientific Officer of Louisiana-based NuPotential Inc., and Jim Hodge, Chief Technical Officer of southern Nevada-based K2 Energy Solutions Inc. Both companies have taken advantage of the SBIR and STTR programs.

"Tens of thousands of small businesses like Nevada-based K2 Energy Solutions have taken advantage of these innovation grants to create jobs and discover the exciting, new products that will keep America competitive in a 21st century global economy," Reid said. "These grants have a highly successful track record. They have helped launch new ideas -- everything from the electric toothbrush, to satellite antennae that helped first responders in Haiti, to technologies that keep our food safe and our military’s tanks from overheating in the desert.

"The only way to turn our economy around is to continue investing in the small businesses in Nevada, and across our country, that are come up with the next brilliant technological advancement that will put people back to work."

"We have already created the formula to get the best return on our investment in small, high-technology firms," said Sen. Landrieu. "Businesses like Mezzo Technologies in Louisiana, which began with only two employees, now has an annual payroll of $1.2 million. That’s putting Americans back to work with cost-effective investments in America’s entrepreneurs through programs like SBIR and STTR.

"In addition to the good return on investment from Mezzo, we’ve got the undeniable success of Qualcomm. With roughly $1.5 billion in SBIR awards, Qualcomm now pays more than $1 billion in annual taxes -- essentially paying for half of the SBIR and STTR programs each year.

"Clearly, there is a plan of action in place. Now it’s time for to execute, and I hope my colleagues will join me in supporting America’s innovators and job creators."

Since the SBIR and STTR programs began 28 years ago, Louisiana has received nearly $60 million and 239 grant awards for its small-business community. Louisiana-based NuPotential received more than $550,000 in STTR grants in collaboration with Louisiana State University to improve cattle somatic cell nuclear transfer [cloning] using NuPotential technology.

Over the last three decades, Nevada has received more than $76 million in grants -- 224 awards, with an average of $341,549 per award -- placing Nevada seventh among all states in dollars-per-award average and well above the national average of $316,341 per award per state.

The Henderson, Nev.-based company, K2 Energy Solutions -- one of the nation’s leaders of rechargeable battery technology -- has received nearly $140,000 in SBIR grants to create an updated BB-2590 battery for the U.S. Army that is three times as powerful, can be used longer, is lighter-weight, capable of a faster recharge, and costs less than the original. Such improvements will drastically reduce the number of batteries that troops must carry in the field, and save weight and logistics needed to transport the battery to the field.

After 10 short-term reauthorizations since 2008, the Senate will soon vote to give stability to the SBIR and STTR programs, so that they can continue to support America’s small businesses. Stay tuned...

SOURCES: GovTrack.us, U.S. Committee on Small Business and Entrepreneurship
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Snowe and Kerry Introduce SBA Lender Oversight Legislation

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

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

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

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

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

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

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

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

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

Sources: GovTrack.us, U.S. Government Accountability Office, U.S. Senate Committee on Small Business and Entrepreneurship
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