To Prevent Shutdown, Sen. Landrieu Files Extension of SBIR and STTR Programs

United States Senator Mary L. Landrieu [D-La., pictured], chair of the Senate Committee on Small Business and Entrepreneurship, today filed a one-year extension of the Small Business Innovation Research [SBIR] and Small Business Technical Transfer [STTR] programs.

After five weeks on the floor, the federal government’s two largest research-and-development programs for small businesses failed to pass a crucial vote last week. Long-term reauthorization is now stuck, and the current extension of these programs is set to expire on May 31, 2011.

"After years of negotiations, and with so much support from my colleagues and the small-business community, it is extremely unfortunate that we are right back where we started," said Landrieu. "To ensure that the SBIR and STTR programs do not end completely, I am filing a one-year, clean extension.

"There are too many businesses across the country with great ideas that are working with our government to develop technologies to improve national security; better the diagnosis, treatment and cure of diseases; and move us closer towards energy independence and efficiency. They would be left in the dark if these programs were to stop. We’d lose so much good technology and important investments.

"To avoid that, it is necessary to make sure the programs don’t shut down or slow down. I hope that we can provide, if only for one year, some sense of certainty for the businesses that partner with the government, and I urge my colleagues to support its continuation."

The SBIR and STTR Reauthorization Act of 2011, S. 493, passed out of the Committee on March 9, 2011, by a nearly unanimous vote of 18-1. Last week, the Senate held a cloture vote to end debate on S. 493, but the motion failed by a vote of 52-44.

To view the text of the extension, please click here.

SOURCES: GovTrack.us, U.S. Senate Committee on Small Business and Entrepreneurship
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DOE's New 'America's Next Top Energy Innovator' Program Challenges Entrepreneurs to Commercialize Technologies Developed by National Laboratories

As part of the Obama Administration's Startup America Initiative, U.S. Department of Energy [DOE] Secretary Steven Chu [pictured] today announced the "America's Next Top Energy Innovator" challenge, which will give startup companies the opportunity to license groundbreaking technologies developed by the National Laboratories for $1,000 and build successful businesses.

As part of this effort, DOE is reducing both the cost and paperwork requirements for startup companies to obtain an option agreement to license some of the 15,000 patents and patent applications held by its 17 National Laboratories.

"America's entrepreneurs and innovators are the best in the world," said Secretary Chu. "Today, we're challenging them to create new businesses based on discoveries made by our world-leading National Laboratories.

"Because we've cut the upfront fees and reduced the paperwork, we'll make it easier for startup companies to succeed and create the new jobs our economy needs. Our goal is simple: unleash America's innovation machine and win the global race for the clean-energy jobs of the future."

Currently, only about 10 percent of federal patents have been licensed to be commercialized. This initiative aims to double the number of startup companies coming out of the National Laboratories.

Specifically, as part of "America's Next Top Energy Innovator":

1. On Monday, May 2, 2011, DOE will kick off the challenge by posting a streamlined template option agreement online for entrepreneurs to submit to Laboratories. Entrepreneurs must identify the technology of interest and submit a business plan to be considered for the program. Participants will have until Dec. 15 to make their submission to the Laboratory.

2. Any of the 15,000 unlicensed patents and patent applications held by the National Laboratories will be available for licensing by startup companies

3. From May 2 to Dec. 15, the Department will reduce the total upfront cost of licensing DOE patents in a specific technology to a $1,000 upfront fee for portfolios of up to three patents. This represents a savings of $10,000 to $50,000 on average in upfront fees.

4. Other license terms, such as equity and royalties, will be negotiated on a case-by-case basis, and will typically be due once the company grows and achieves wide-scale commercial success. These fees help support DOE's continuing research activities to develop new technologies.

5. DOE will simplify the licensing process and establish a standard set of terms for startups, who generally lack the resources, time or expertise to negotiate individual licensing agreements. This will significantly reduce both the time and cost required to process the license, allowing faster access to the Department's patents and enabling DOE to process more licenses in a shorter amount of time.

6. Entrepreneurs who complete the process and demonstrate progress toward executing their business plan and commercializing the technology will have the opportunity to be showcased at the 3rd Annual ARPA-E Energy Innovation Summit in 2012, which brings together leading technology startups and clean-energy investors from around the country.

In addition to these steps, DOE is making it easier for companies to use the world-leading facilities at its National Laboratories to conduct collaborative research-and-development activities.

Previously, companies had to make an upfront payment covering the first 90 days of research work -- a requirement that was often difficult for start-ups to meet. Today, DOE is lowering the advance payment requirement to 60 days. This change will benefit all companies -- not just startups -- but could be valuable for those participating in the "America's Next Top Energy Innovator" challenge.

Entrepreneurs interested in participating can already view the available technologies on DOE's Energy Innovation Portal.

Some of the promising innovations currently available for licensing and featured on the portal include:

* Solar Energy Storage, Transportation and Conversion -- available from DOE's Lawrence Berkeley National Laboratory. Researchers at Berkeley Lab have developed a system for converting solar energy to chemical energy and, subsequently, to thermal energy. The system includes a light-harvesting station, a storage station, and a thermal energy release station that enables transportation of stored energy over long distances. Here's the marketing summary.

* Grid-Friendly Appliance Controller -- available from DOE's Pacific Northwest National Laboratory. The Grid-Friendly Appliance Controller senses grid conditions by monitoring system frequency and provides automatic demand response in times of disruption. This simple computer chip can be installed in household appliances and can turn them off for a few minutes or even a few seconds to allow the grid to stabilize and prevent blackouts. Interested? Read the marketing summary.

* Growth of Lattice Matched III-V Semiconductor Materials -- available from DOE's National Renewable Energy Laboratory [NREL]. High-performance semiconductor materials have a broad range of potential applications -- including high-efficiency solar cells, solid-state lighting, and high-speed transistors. This portfolio allows for the use of low-cost, scalable, and reusable substrates to dramatically reduce production costs for these materials. Click here for the marketing summary.

* New Catalyst Can Reduce Nitrogen Oxide Emissions From Diesel Engines by 80-85% -- available from DOE's Argonne National Laboratory. The diesel DeNOx catalyst removes 80-85% of nitrogen oxide [NOx] emissions from diesel fuel combustion by converting NOx to nitrogen. With its lower expected manufacturing and installation costs, ease of use, and significant market potential, the Argonne catalyst is positioned to deliver the environmental and economical benefits needed to reduce our global industrial "footprint." Here's the technology marketing summary.

Read some recent examples [PDF - 162 kb] of established companies and startups that have commercialized DOE technologies.

Startup America is an important element of the Obama Administration's national innovation strategy. For more information about the steps announced today, plus the 15,000-plus technology opportunities currently available, visit DOE's Energy Innovation Portal.

GoodBiz113's Take
This new Department of Energy program has significant potential for propelling entrepreneurship and innovation, creating jobs, and realizing the Obama Administration's aims to promote clean energy and energy independence. America's current and would-be entrepreneurs -- and all its citizens, for that matter -- are fortunate to have someone as smart, creative and enterprising as Steven Chu at DOE's helm.

SOURCES: U.S. Department of Energy, The White House
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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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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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Google, SBA Launch 'Tools for Online Success' Partnership; Free Small-Business Marketing Tips Offered

Today, the U.S. Small Business Administration [SBA] and Google announced a new partnership and unveiled "Tools for Online Success" -- an array of online resources and training designed to help small-business owners harness technology to grow their businesses.

The "Tools for Online Success" site [http://www.google.com/help/sba] features tutorials, video testimonials, and tips from savvy small-business people who have leveraged the Web to become more efficient, more cost-effective, and more successful.

"The SBA is pleased to partner with Google to put these important tools in the hands of small businesses across the country," said SBA Administrator Karen Mills. "As the Web evolves and consumers adapt accordingly, we know that more customers are finding traditional 'Main Street' businesses online. With these tools for online success, we can ensure that these small businesses reach new markets and customers, so they can continue to create jobs."

"One-fifth of searches on Google are related to location, which shows that people are looking to the Internet to make decisions about where to go and what to do in their daily lives," said John Hanke [pictured], vice president of product management, Google. "We want to connect our users with the businesses that provide the goods and services they need. But the first step is for those businesses to have an online presence. We're excited to team up with the SBA to make that process easier for business owners across the country."

Google and the SBA unveiled the partnership during a forum held today at the SBA’s national headquarters in Washington, D.C., and broadcast live online to press and small-business owners across the nation. Susan Holt, principal and owner of CulinAerie, a recreational cooking school in downtown D.C., shared her experiences working with the SBA, and explained how she has used online tools like Google Places and search engine optimization [SEO] to attract more aspiring cooks.

Holt is just one of the many small-business owners from across the U.S. who are sharing how they've used online tools to reach new customers. Many are featured in the video testimonials found at the Google/SBA "Tools for Online Success" site. Each video documents the unique success stories that these small businesses have created using online technology:

* Masha Hleap-Hershkovitz, owner of Fuego Mundo in Sandy Springs, Ga., uses social media to request feedback from restaurant customers for improvement. Ms. Hleap-Hershkovitz even used social media to name her restaurant. "We bounced back and forth with a potential name for months, and we were kind of bottlenecked," she says. "We put it out there [on social media], and it came back 70 percent 'Fuego Mundo.'" Visit http://www.fuegomundo.com/.

* Sean Vahey, owner of Humphry Slocombe Ice Cream in San Francisco, uses social media and Google Places to launch new menu items and cultivate a worldwide following for his company’s unique ice cream flavors. "I don’t have a lot of time do marketing," Mr. Vahey says. "I don’t have a lot of time to sit down and reach out to people. I’m able to get on the computer and, two minutes later, I’ve gotten the word out… Our Google Places page is important, because it’s got all of our information in one spot -- our website, our phone number. You can see where we are on a map, and you can even get directions." Visit http://www.humphryslocombe.com/.

* Sumul Shah, owner of Lumus Construction in Woburn, Mass., uses its website and online maps to research projects all over the United States, and to show potential customers examples of its past work. According to Mr. Shah, "Customers can see and visualize the types of projects, and the complexity of the work we do… In the future, our website will not only talk about how much renewable energy we’re building, but we’ll actually quantify it. We’ll be able to take live data coming from all the wind turbines and solar panels that we’ve installed, simulate it, and be able to report not only how much energy we’re producing, but also what the environmental benefits are." Visit http://www.lumusinc.com/.

* Aliyyah Baylor, owner of Make My Cake in Harlem, New York City, redesigned her website to display vivid imagery of its baked goods. Make My Cake is family-owned and operated, and Ms. Baylor says, "Our website is an extension of our business when it’s too busy for someone to answer the phone. It’s our virtual salesperson, and that is very key." Visit http://www.makemycake.com/.

* Mandy Scott, owner of Mandy Scott Flowers in San Francisco, uses highly targeted online advertising to help her premium flower boutique compete with national brands on a small marketing budget. She says, "We are tiny compared to the big players. I can’t hope to compete with them on any kind of national scale, but I feel that, locally, we do very well. Showing up in both natural and paid search results is important for us, because we want to be on a level playing field with the big guns." Visit http://www.mandyscottflowers.com/.

* Jessica Soler, owner of Salon Red in Decatur, Ga., uses a website and local online listings to help her customers find salon locations and to book appointments. She says, "A great example of how the Web helps Salon Red is, we were nominated with one of the local papers to be a 'Best Of' salon in Atlanta, and tons of people went online to vote for all of our locations. We just were flooded with business, and it all came from online." Visit http://www.salonred.com/.

* Christopher Bartlett, owner of Skaters Landing in West Hartford, Conn., uses online videos to teach customers from all over the world how to properly shop for, and use, ice skating products. "We really were able to reach out to new markets," says Mr. Bartlett. "I don’t look at [our online efforts] as a place to go to and hard-sell, but to really talk with people and answer some of the questions that people might have." Visit http://www.skaterslanding.com/.

* Louis Rossetto, CEO of TCHO in San Francisco, brings a start-up mentality to his company’s premium chocolate production. TCHO uses Web analytics to constantly improve its website's layout, ensuring consumers are engaging with its products in the most effective way possible. "You can’t be a modern company without using modern tools, and online is just fundamental to being in business today," says Rossetto. "Our website represents our direct link to our customers. We use it to explain who we are, engage our community, and it’s certainly a storefront for us. You’re inviting the whole world into your store if you do that online." Visit http://www.tcho.com/.

Continued success stories like these are the goal of the Google/SBA partnership. Visit the "Tools for Online Success" website for a full rundown.

Tips for Small-Business Marketing Online
Here are a few easy tips that all small-business owners should be using in order to optimize the free and low-cost marketing power of the Internet:

* Establish your online presence. One out of five searches on Google are related to location. Most local online listings such as Google Places are free, and if your business doesn’t have a website, there are ready-made site templates and free hosting services that make establishing an online presence easy.

* Use free marketing to reach customers. You can build a fan base with free services -- e.g., YouTube, Facebook and Twitter -- that keep your customers in-the-know about new products or specials, and aware of promotions. These services are great "word-of-mouth" platforms -- where a customer following you might tell their friends about your business.

* Know your customers. Easy-to-use Web analytics tools -- e.g., Google Analytics -- can tell you a lot about your customers -- by analyzing what search term brought them to your website, or what they look at while they are there. This information can help you make smart decisions about what you feature and what search terms you should run search ads on.

* Keep an eye on the latest trends. The growing popularity of smart phones means that more and more customers are searching for local information on the go. This makes it all the more important that a business’s online presence be accurate and up-to-date. For example, you can link to your menu, give users driving directions, and even post digital coupons. Oh, and be sure to bookmark Google Trends, too: http://www.google.com/trends.

SOURCES: Google [photo], U.S. Small Business Administration
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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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White House Announces New Cybersecurity Coordinator; Tips for Protecting Yourself Online

Today, the White House announced President Barack Obama’s new White House Cybersecurity Coordinator, Howard A. Schmidt. With some 40 years of experience in government, business and law enforcement, Schmidt brings a unique and deep experience to this important issue.

Following, is the full text of the announcement e-mail sent to the White House e-mail list by John Brennan [pictured], Assistant to the President for Homeland Security and Counterterrorism:

* * *

Dear Friend,

Cybersecurity matters to all of us. Protecting the Internet is critical to our national security, public safety, and our personal privacy and civil liberties. It’s also vital to President Obama’s efforts to strengthen our country -- from the modernization of our health care system, to the high-tech job creation central to our economic recovery.

The very e-mail you are reading underscores our dependence on information technologies in this digital age, which is why it seemed like a fitting way to announce that the President has chosen Howard Schmidt to be the White House Cybersecurity Coordinator. Howard will have the important responsibility of orchestrating the many important cybersecurity activities across the government.

Howard is one of the world’s leading authorities on computer security, with some 40 years of experience in government, business and law enforcement. Learn more about Howard's background and approach to cybersecurity here.

Howard will have regular access to the President and serve as a key member of his National Security staff. He will also work closely with his economic team to ensure that our cybersecurity efforts keep the Nation secure and prosperous.

Moving forward we will use WhiteHouse.gov, this e-mail program, and our other communications tools to keep you posted about our progress in this important area.

Sincerely,

John O. Brennan
Assistant to the President for Homeland Security and Counterterrorism

P.S. You can play an important role in cybersecurity as well. Learn more about the issue and steps you can take to ensure your own security.

* * *

Tips for Protecting Yourself Online
Cybersecurity matters to all of us – and it’s our shared responsibility to mitigate the threats in this space. You can take cybersecurity into your own hands with these tips for protecting yourself online:

* Keep your security software and operating system up-to-date. At a minimum, your computer should have current anti-virus and anti-spyware software and a firewall to protect yourself from hackers and malicious software that can steal sensitive personal information. Hackers also take advantage of Web browsers and operating system software that do not have the latest security updates. Operating-system companies issue security patches for flaws that they find in their systems, so it is important to set your operating system and Web browser software to download and install security patches automatically.

* Protect your personal information online. Millions of people become victims of identity theft each year. One way that cyber criminals convince computer users to divulge their confidential personal information is through fake "phishing" e-mails, which are often cleverly disguised to look like authentic e-mails. Be wary of clicking on links in e-mails that are unfamiliar, and be very cautious about providing personal information online; e.g., your password, financial information, or Social Security number.

* Know who you are dealing with. It is remarkably simple for online scammers to impersonate a legitimate business, so you need to know who you are dealing with. If you are thinking about shopping on an unfamiliar website, do some independent research before you buy. Similarly, before you download software, be sure that the software developer is trustworthy. Cyber criminals will often embed the capability to steal passwords and files into free software.

* Learn what to do if something goes wrong. If your computer gets hacked, the effects may be obvious [e.g., deleted or corrupted files]; or, they may be subtle [e.g., slow computing performance]. As a first step, you should scan your computer with updated anti-virus software. You may wish to get professional assistance through your computer’s manufacturer, computer retail store, or local computer technician. You can also alert the appropriate authorities by contacting your Internet service provider [ISP] or the Internet Crime Complaint Center. The Federal Trade Commission [FTC] can assist if you are subject to identity theft. You can also forward spam or phishing e-mails to the FTC at spam@uce.gov.

SOURCES: FTC, The White House, Wikipedia
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Senate Unanimously Passes Kerry Small-Business Innovation and Technology Funding Plan

Senator John Kerry [D-Mass.], a senior member of the U.S. Senate Committee on Small Business and Entrepreneurship, applauded yesterday's unanimous Senate passage of two small-business research programs that Kerry originally sponsored as the committee’s former chairman.

The Small Business Innovation Research [SBIR] and Small Business Technology Transfer [STTR] programs, administered under the Small Business Administration [SBA], offer competitive awards to innovative small businesses. Reflecting Kerry’s original legislation, yesterday’s vote will reauthorize the SBIR and STTR programs for eight years, making the new sunset date for both programs Sept. 30, 2017.

"This is a shot in the arm for small businesses in Massachusetts and throughout the country," said Kerry. "This vote ensures that these programs do not lapse, so that small, high-tech firms, from Springfield to Newburyport, can continue to utilize them to develop technologies to keep our military strong, advance medical breakthroughs, and develop energy sources that are renewable and clean."

Small businesses awarded funding through SBIR or STTR work through three incremental phases. Yesterday’s legislation will increase the awards from $100,000 to $150,000 for Phase I, and from $750,000 to $1 million for Phase II.

SOURCES: Library of Congress, Sen. John Kerry's Online Office, U.S. Small Business Administration
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Franken Proposes Bold Economic Solutions for Middle Class, Main Street

DFL U.S. Senate candidate Al Franken today addressed the Humphrey Institute 2008 Candidate Forum at the University of Minnesota. In his remarks, Franken called for bold action to help Minnesota's middle class: cutting taxes on working families; ending giveaways to special interests and companies that outsource; creating jobs by investing in short-term infrastructure projects; and helping small businesses find credit in an uncertain economy.

Franken also reiterated his opposition to the $700 billion Wall Street bailout, describing his concerns with the lack of oversight for the financial-services industry and the failure of Washington to address the housing crisis that sparked the economic downturn.

"We have got to change the way Washington handles the economy," Franken told the audience. "There are too many people there who believe that wealth comes from the top -- that what drives our economy is when a CEO gets a big tax cut and builds, oh, I don't know, a seventh house.

"Well, I guess that does create a few jobs, especially if it's a really fancy house. But I grew up in a middle-class family in St. Louis Park [Minn.]. And I know that it's the middle class that is the engine of prosperity in America. And what drives our economy is when everyone has a good job, and makes a decent wage, and we're building millions of homes.

"So, I believe that if we're going to re-build our economy in the wake of this massive collapse, it's going to start with re-building the middle class. That means stopping the giveaways to the special interests and putting more money in middle-class family budgets. And it means creating and protecting good jobs that offer people a chance to get ahead.

"This bailout was the exclamation point on eight years of economic mismanagement. Now is the time for us to change fundamentally the ways of Washington, so that at least it might, indeed, be the end of the sentence.

"And if we make that change, we'll be alright. We are Americans. We are the country that beat communism and beat fascism, and we can beat this crisis.

"But the people who will get our economy moving again don't work on Wall Street. They work here on Payne Avenue and in every city and town in this country. They own body shops and hair salons, and they sell bicycles and lawnmowers and homemade cookies. And, you know what? They need help. They need it now. And it's time Washington got to work."

SOLUTIONS FOR THE MIDDLE-CLASS ECONOMY: AL FRANKEN'S PLAN TO CREATE JOBS IN MINNESOTA

Al Franken believes that we need fundamental change from the policies that have put our economic security at risk. But the best way to emerge from the current economic downturn is by creating and protecting middle-class jobs here in Minnesota.

A Lifeline for Minnesota Small Businesses
Minnesota's small businesses -- which create four out of every five jobs in our state -- are paying the price for the mess on Wall Street. They are finding it harder and harder to obtain the credit they need to cover start-up costs, expand their operations, or hire new employees. To help them, Al Franken will work to unfreeze the credit market.

* Expand the Small Business Administration's Loan Guaranty Program by $1 billion, and make another $4 billion available for direct loans to small businesses.

* Simplify the loan approval process and eliminate fees for lenders and borrowers, and expand the network of lenders to increase liquidity and help small businesses get better loan rates.

Create Jobs by Investing in Infrastructure
According to the Department of Transportation, each $1 billion invested in transportation development creates over 47,500 jobs and over $1.3 billion in worker income -- and up to $6 billion in additional gross domestic product. Right now, there are projects ready to be started -- and Minnesotans ready to do this important work.

* Create nearly 150,000 jobs by investing $2 billion to pay for deferred infrastructure repair projects, and another $1 billion for capital costs of facilities and equipment needed to improve multi-modal transportation options like the Midwest Regional Rail Initiative.

An Apollo Program to Create Green Jobs
Our energy crisis could be a huge opportunity for Minnesota. With an Apollo program for renewable energy and energy efficiency, we can end our dependence on foreign oil, make our nation more secure, improve our environment -- and create "green" jobs by making Minnesota the epicenter and the engine of a new energy economy.

* Invest in research and development into new and existing renewable energy technologies: wind, solar, biofuels, carbon sequestration, and more.

* Support U.S. House Transportation & Infrastructure Committee Chairman Jim Oberstar's work to make increased availability and use of rail -- light rail, commuter rail, inter-city passenger rail -- a reality.

* Work with entrepreneurs in Minnesota to support energy-efficient technologies, such as windows and other "green building" initiatives.

End Tax Breaks for Companies That Ship Jobs Overseas
We've lost over 600,000 jobs in America just this year. Now, Minnesota's unemployment rate is the highest it's been in 22 years -- with 170,000 people unable to find work. Part of the problem is that we've seen our tax code changed to encourage companies to ship American jobs overseas. Al Franken will work to reverse that.

* Strip companies of the nearly $40 billion in tax breaks they received to ship American jobs overseas, and use that money to promote domestic manufacturing.

* Support worker re-training programs that help those whose jobs have been lost.

GoodBiz113's take: Al Franken's proposed solutions are bold -- and very much needed in order to help get small businesses, and our nation, moving again. Kudos to Al Franken for having the vision and guts to conceive and articulate such a far-reaching strategy.

SOURCE: Al Franken for U.S. Senate, U.S. Census Bureau, U.S. Department of Transportation, U.S. Small Business Administration
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Sens. Kerry and Harkin Secure Additional Small-Business Research Funding for Inclusion in Rep. Murtha's Defense Bill

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

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

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

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

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

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

Sources: Library of Congress, OpenCongress, U.S. Senate Committee on Small Business and Entrepreneurship
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Kerry, Levin Extend Small Business Innovation Program

Late yesterday, the Senate passed the Department of Defense authorization bill, with provisions secured by Sens. John Kerry [D-Mass.] and Carl Levin [D-Mich., pictured] to extend the Small Business Innovation Research [SBIR] program through 2010, and to increase the transition and commercialization of products developed by small firms that participate in the program.

Kerry is the chairman of the Committee on Small Business and Entrepreneurship, and Levin chairs the Committee on Armed Services. The SBIR program is set to expire on September 30, 2008.

“The SBIR program is critical to our national security and our country’s competitiveness in a global economy,” said Kerry. “Technologies developed through the program are helping to keep our troops safe on the battleground, improving our health care, and expanding our ability to combat global warming.

“We need to keep this program strong, avoid any contracting delays or shut-downs, and provide more resources to rapidly transition the most promising technologies into weapons systems or on the market quickly. I thank Sen. Levin and all the members of the Armed Services Committee for their leadership on these amendments and their support of this program.”

“The SBIR program creates jobs, increases our capacity for technological innovation and boosts our international competitiveness,” explained Levin, who also serves on Kerry's committee. “The program has demonstrated that federal agencies can work with small businesses to develop and commercialize technologies in a cost-effective way.”

The Committee on Small Business and Entrepreneurship will be working on legislation to reauthorize the SBIR program next year. Kerry and Levin worked to include this extension as part of the defense bill to prevent a shut-down or delay of this important research and development program when it expires next year. Eight years ago, the program shut down because the program was not renewed in a timely way. This temporary extension will provide time that lawmakers need to develop bipartisan legislation that will be signed into law.

The Senate also passed an amendment to build upon a pilot program that Sens. Kerry and Olympia Snowe [R-Maine] created in 2005 to help firms transition their projects into commercialized products. The amendment, sponsored by Kerry and Snowe, and supported by Levin, extends the pilot program through 2012 to help small firms bring their products and innovations into the marketplace.

Source: U.S. Senate Committee on Small Business and Entrepreneurship
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OPEN: Small-Business Owners Hold the Line on Hiring, Remain Focused on Growth in Uncertain Economy

Hiring plans among small-business owners are at their second-lowest point in the seven-year history of the OPEN from American Express® Small Business Monitor, a semi-annual survey of business owners. This fall, hiring plans among business owners have dropped, with three in 10 [31%] business owners reporting plans to hire full- and/or part-time staff in the next six months. That is down from 34% in fall 2006; 37% in fall 2005; 35% in fall 2004; 34% in fall 2003; and 26% in fall 2002.

Health care is cited by one in five small-business owners [21%] as the issue that will most sway their decision on the next president of the United States, followed closely by homeland security [cited by 19%].

Despite a lack of robust hiring plans, growth remains a top priority for entrepreneurs. More than one-third [37%] of small-business owners report growing their business as their company's single most important priority over the next six months -- on par with 35% last fall. In fact, more than half [57%] of business owners are willing to take on risk in order to grow their business -- unchanged from 2006.

"Small-business owners are on the front lines -- dealing with issues like health care, the housing market and interest rates -- so they know firsthand where we are as a country," said Susan Sobbott, president of OPEN from American Express. "It says a lot about the attitude of small-business owners that they remain optimistic in the face of this difficult environment, as evidenced by their plans for growth and investment."

Entrepreneurs Adjust to Energy Prices, but Economy and Rising Costs Present a Challenge
According to the survey, business owners are adjusting to higher energy and gas costs. A much fewer number report having lost sales as a result of higher energy costs [17%] -- down sharply from fall 2006 [31%]. Fewer entrepreneurs also report having to pay rising costs for the materials and products they need as a result of higher costs [65% -- down from 71% in fall 2006]. One-third of businesses in the South [31%] report rising gas and energy costs as having little impact on their business.

More business owners believe the downturn in the housing market and rising interest rates have negatively impacted their business. The survey found a 5% rise in the number of business owners who believe that the downturn in the housing market has had a negative affect on their business, compared to this spring. Half of all business owners believe rising interest rates have negatively impacted their business.

Rising costs and uncertain economic conditions [each 20%] are the biggest challenges entrepreneurs face in growing their business. Finding the right staff [19%] and being too busy satisfying existing customers [17%] present additional challenges.

Entrepreneurs are not letting the economy dictate their plans for growth. Over the next six months, nearly half [48%] of business owners expect their business to grow, regardless of the economy. Nearly three out of 10 [28%] of business owners report the economy as the greatest determinant in growing their business.

Business Owners Plan to Invest in Technology and Marketing
Entrepreneurs plan to make capital investments as an avenue to business growth. The percentage of small-business owners planning to make capital investments over the next six months remains on par with the previous fall [59% vs. 56%].

Business owners will invest most heavily in the area of technology [45%]. More are planning to make their next purchase in mid-priced equipment -- e.g., desktops, laptops and printers -- than a year ago [53% vs. 47%]. Nearly one in five (19%) plans on making more substantial investments in major technology infrastructure -- such as software, servers or telephone systems. Slightly fewer [17%] plan to invest in modestly priced items, such as PDAs or smart phones.

Besides technology, other investment areas include office equipment [21%], real estate [15%], manufacturing/production equipment [14%] and office furnishings [13%].

In addition to capital investments, business owners plan to invest marketing dollars as a way to grow. Entrepreneurs are taking advantage of online marketing techniques -- with the company website being the most-utilized online marketing method [55%].

Nearly seven in 10 [69%] business owners believe their marketing dollars are well-spent. Almost half [46%] of business owners report seeing a direct uptick in sales when spending money on marketing. Male business owners are more likely to agree that marketing dollars have a direct positive impact on sales [47% vs. 32% female owners].

Those with Hiring Plans Center on Growth; Males Most Likely to Hire to Increase Business
Although hiring plans over the next six months are near record lows, among those businesses that plan to hire, three-quarters [75%] say they need to hire to handle their growing business. Two-thirds [65%] will hire to help increase business volume. This number is greater among male business owners, as seven out of 10 plan to hire for this reason [71% vs. 46% of female owners].

Two out of five [43%] will hire because they have a new business venture. One in three say they will hire because they have finally found the right candidate for the position [33%], or need seasonal help [28%].

Business owners do not believe the increase in minimum wage is offset by small-business tax breaks included in the law. Four in 10 business owners [44%] disagree that the increase in minimum wage passed by Congress is offset by small-business tax breaks included in the law. This number was even higher among male business owners [59% vs. 35% of female owners].

Health Care Remains Top of Mind
The rising costs of doing business have not overridden the importance of employee well-being. Seven out of 10 bosses [69%] agree it is important to offer health-care coverage to their employees. The number of businesses offering health-care benefits to employees remains unchanged from last fall [71%].

Business owners are looking for ways to make health-care coverage more accessible to their employees. Nearly eight in 10 [79%] small businesses would consider proposed health-care policy solutions as a way to make health care accessible.

About two out of three [65%] support the solution to "create purchasing cooperatives for small businesses to make heath insurance affordable." More than half support a plan that would "ensure every child in the U.S. has health insurance" [58%], or "provide tax credits to low-income workers to help pay for health care" [54%].

Fewer than half would support the proposed solution of a "universal health-care system" [42%], or an "additional tax on tobacco and alcohol" to fund health care [38%]. Three-quarters [75%] of business owners believe health-care coverage will be a problem for the next generation of entrepreneurs.

Cash Flow Issues Keep Entrepreneurs Up At Night
Business issues are a cause for entrepreneurs' insomnia. One in four [26%] entrepreneurs cited cash-flow issues as what "keeps them up at night," followed by ideas for growth [23%], customer service [16%], staff [15%] and competition [9%]. Among those businesses in the North, 32% are kept up by ideas for growth.

Cash flow remains a constant concern for business owners. The number of entrepreneurs experiencing cash-flow issues remains on par with the previous fall [49% vs. 47%]. Among small businesses with cash-flow concerns, 22% will access their personal or private funds, while others will obtain and use line of credit [20%], put off purchases [14%], or use a credit card [12%] or short-term loan [10%] in order to address these concerns.

Business owners' handle on accounts receivable is not as good as they think. Nearly eight in 10 [79%] entrepreneurs do not believe their accounts receivable are too high. Yet, to improve cash flow, 25% are most likely to get aggressive in collecting accounts receivables. Others will look for special payment terms [13%], raise prices [12%], or offer customer discounts for early payment [11%] in order to improve cash flow.

On average, small-business owners are able to project cash on hand five months out. Business owners in the South are in the ideal situation, with the ability to project cash on hand more than six months out.

"It is not surprising that tightening purse strings put greater emphasis on cash flow," said Sobbott. "Anecdotally, we see small-business owners becoming more sophisticated in dealing with cash-flow issues, pursuing solutions such as special payment terms like trade terms."

Prosperity Signifies Growth; More Male than Female Entrepreneurs Have Plans to Grow
The majority of entrepreneurs plan to grow over the next six months. However, views on growth diverge regionally and among the sexes.

According to the survey, three-quarters of business owners plan for growth over the next six months. However, more male than female business owners have a plan to grow [82% and 64%, respectively].

Overall, three out of 10 [30%] small businesses measure growth by their profits. One out of five [22%] measure growth by the number of customers; this number jumps to nearly one in three [32%] in the West. One-third [35%] of owners agree that "growth" can be signified by prosperity; significantly fewer associate growth with achieving balance/wellness [23%], the freedom to choose [20%], and popularity [15%].

Being an Entrepreneur is as Fulfilling as Expected
Business concerns do not weigh on business owners' sense of fulfillment. Despite an uncertain economy and concerns over cash flow, three out of four [74%] owners of small businesses find that being an entrepreneur is fulfilling, while only 46% agree that being an entrepreneur is harder than expected; this number rises to 53% in the West.

Four out of ten [42%] agree they are an entrepreneur because they are a born leader. But leaving a lasting impression is what appears to matter most to entrepreneurs, as two out of three [68%] claim their business is an important part of their legacy. The vast majority of business owners [89%] in the North report this sentiment to be true.

More than Half of Entrepreneurs on Track for Retirement; Males Require More Money
Business owners are on track to meet retirement goals, although goals differ between the sexes. The average net worth business owners believe they need to retire is $1,286,000. Male small business owners desire an average of $1.5 million net worth in order to retire, compared to $1.2 million among female business owners.

According to the survey, more than half [55%] of business owners report they are on track to save the funds they need for retirement -- unchanged from last fall. However, six out of 10 say they are worried about their ability to save for the retirement they want -- on par with last fall [60% vs. 57%]. Business owners in the South are in the best shape for retirement; nearly half [49%] are not at all worried about their ability to save for the retirement they want.

Entrepreneurs Show Concern for the Environment
Even as the impact of rising energy costs diminishes, business owners' concern for the environment is still an action item. The majority of small-business owners/managers [87%] have taken steps to make their business environmentally friendly.

Half of business owners have taken steps to recycle waste products [51%] or follow environmental recommendations within their industry [48%]. Less than half [46%] buy and use recycled products, or offer eco-friendly products and services to customers [24%]. Most agree that it is important to give back their community [87%], and take actions in business to reflect concern for the environment [79%].

Additional survey results are available by contacting OPEN from American Express.

Survey Methodology
The OPEN from American Express Small Business Monitor, released each spring and fall, is based on a nationally representative sample of 627 small-business owners/managers of companies with fewer than 100 employees. The survey was conducted via telephone by International Communications Research from Aug. 20-Aug. 31, 2007. The poll has a margin of error of +/-3.9%.

About OPEN from American Express
OPEN is the American Express team dedicated exclusively to the success of small-business owners and their companies. The OPEN Team supports business owners with unparalleled service. With tailored products and services, the team delivers purchasing power, flexibility, control and rewards to help customers run their business.

Specifically, business-owner customers can leverage an enhanced set of products, tools, services and savings -- including charge and credit cards, convenient access to working capital, robust online account management capabilities, and savings on business services from an expanded lineup of partners. To obtain more information about OPEN, visit OPEN.com; or, call 1-800-NOW-OPEN to apply for a Card or loan. Terms and conditions apply.

GoodBiz113 ad partner American Express Company [www.americanexpress.com] is a leading global payments, network and travel company founded in 1850.

SOURCE: OPEN from American Express
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Committee Examines Workforce Issues for Small Businesses in Renewable Energy

Instability in oil-producing regions and rising energy prices have made it clear that America needs to move towards energy independence. To meet this demand, the renewable-energy sector is increasing rapidly, with small businesses at the forefront of this expansion. Just last year, biodiesel production reached 225 million gallons. Today, with 148 biodiesel plants in operation, and close to 100 factories under construction, this industry is expected only to grow.

During yesterday's hearing, the House Committee on Small Business reviewed the state of the renewable-energy industry, and potential barriers that could limit its expansion -- including access to a well-trained, skilled workforce, and possible solutions to these obstacles. A bill introduced by committee member Bruce Braley [D-Iowa, pictured] provides funding for bioenergy workforce education.

"This field is still in its infancy -- but it is having significant economic impact," said Rep. Braley, chairman of the Subcommittee on Contracting and Technology. "The potential for new business and job creation is huge.

"Without a qualified workforce, the renewable energy industry will have difficulty filling open positions and will run the risk of falling short of its full potential. That's why new training programs are crucial."

Many small producers don't have the capacity to conduct adequate onsite training, yet a skilled workforce is essential for their survival. To surmount this obstacle and encourage continued growth in renewable energy, Braley has introduced the National Endowment for Workforce Education in Renewables and Agriculture [NEW ERA] Act of 2007, which will provide funding and programs to expand the renewable-energy workforce.

Under the bill, grants would be awarded to community colleges to create renewable-energy workforce education and training programs, allowing for increased investment in human capital. These initiatives will provide a new set of bioenergy workers, ensuring that the expansion of the renewable-fuel industry will have adequate support from skilled professionals equipped with the tools to stay competitive in the field.

"In order for this growing industry to truly flourish, our workforce must have the skills and knowledge necessary to stay on the cutting edge of new technologies," Braley noted. "Proper training will ensure that the renewable-energy sector will continue to develop in a sustainable way."

The renewable-energy industry not only serves as a strong alternative source of energy, but it also creates thousands of jobs nationwide. In 2006 alone, the ethanol industry created over 160,000 new, good-paying jobs -- many of which included retirement and healthcare benefits. The industry's growth also helps to replace some of the 3.1 million manufacturing jobs that have been lost in the U.S. since 2000.

During the hearing, committee members examined ways to ensure that there is "smart growth" within the industry -- including implementation of the NEW ERA Act. Members also heard expert testimony on the importance of ensuring the availability of a strong workforce, and viable ways to go about doing so.

"With the vast potential for renewable-energy production right here in the heart of our own country, we have the critical opportunity to reduce our dependence on foreign oil while creating jobs; it's a win-win situation," Braley said. "For the security and prosperity of our nation, it's time to shift our energy dependence from the Middle East to the Midwest."

You can view parts of yesterday's hearing by visiting YouTube: http://www.youtube.com/view_play_list?p=B90F9338F9143970.

Sources: Congress Merge, GovTrack.us, U.S. House Committee on Small Business

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House Opens Federal Marketplace to More Small Business Participation, Helps Fight Fraud in Contracting System

As small businesses continue to struggle to access the $340 billion federal marketplace, the House last Wednesday [May 9] passed the most comprehensive reform of the contracting system for entrepreneurs in over a decade. H.R. 1873, the Small Business Fairness in Contracting Act, which increases small business access to federal contracts, offers protections against contract bundling, and prevents large businesses from receiving small-business contracts, passed by a wide margin of 409 to 13.

"For many entrepreneurs, access to federal contracts provides an important step in developing and expanding a business," said Rep. Nydia M. Velázquez [D-N.Y.], chairwoman of the U.S. House Committee on Small Business. "Today, the House passed legislation that ensures small business owners are competing on a level playing field. This is a major, and long overdue, step forward for entrepreneurs."

Over the past several years, small businesses' federal contracting opportunities have not kept pace with the expanding federal marketplace or small firms' growing share of the economy. Small companies confront numerous obstacles when attempting to access federal contracts, as the government continues to combine work into contracts too large for entrepreneurs to bid on, making the projects less accessible to small businesses.

In the past few years, small businesses have also lost out on opportunities, as contracts intended for small businesses were awarded to large corporations. There are currently few penalties for agencies and companies that misrepresent larges businesses as small.

The combination of barriers such as these has resulted in billions of dollars in lost contracting opportunity each year for this nation's small businesses.

"Awarding federal contracts to small businesses creates jobs, develops companies, promotes competition and yields the best value for the taxpayer dollar," said Chairwoman Velázquez. "Congress acted today to guarantee that our entrepreneurs get the opportunities they deserve and to hold the federal government more accountable for how taxpayer money is spent."

H.R. 1873, introduced by freshman Rep. Bruce Braley [D-Iowa], chairman of the Subcommittee on Contracting and Technology, makes more contracts available to small firms. During consideration of the bill, several measures also passed that raise the level of federal commitment to contracting with small businesses, ensure small firms can compete for overseas contracts, strengthen requirements for agencies to review the economic impacts of large contracts, and provide greater protections for small business subcontractors. These additions enhance improvements for small firms in H.R. 1873 that will allow for greater small business participation in the federal marketplace.

"I am proud that my first bill to pass the House is one that will help small businesses compete," Congressman Braley said. "The Small Business Fairness in Contracting Act ensures that small businesses have the same opportunities as large corporations to earn government business.

"When government contracts are awarded through huge super-contracts, small businesses just can't compete on a level playing field. By forcing government agencies to be held accountable for awarding these so-called 'bundled contracts,' more small businesses will have the opportunity to benefit from earning government business. Furthermore, by providing for the enforcement of these new provisions, this bill will have the teeth to make sure government agencies are following the law. At the end of the day, this means expanded opportunities for small business."

This legislation is part of the committee's ongoing work to restructure how small businesses interact with the federal procurement system. The Small Business Fairness in Contracting Act is the first piece of legislation to address problems outlined in the committee's annual scorecard on federal contracting.

GoodBiz113's take: Little by little, it seems, our rants/wish-list items [e.g., "Welcome to GoodBiz113!" "GoodBiz113 Drafts Small-Biz Wish List for 110th Congress," "GoodBiz113 Issues Open Memo to Leaders of Congressional Small Business Committees"] are helping to attract productive results for small businesses and entrepreneurs. Hats off to U.S. House members for forcing federal agencies to do the right thing for all concerned.
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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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