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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House Committee Calls for Sweeping Reforms to SBIR Program; Velázquez Critiques President Bush's Final State of the Union Address

As the specter of a recession looms, small-business innovation becomes an increasingly vital asset to our economy. It was technology startups, after all, that led the way back to growth during our last slowdown.

During a hearing on the Small Business Innovation and Research [SBIR] program today, witnesses underscored its importance in ensuring American competitiveness. They also offered compelling evidence of a need to reform various parts of the initiative.

"SBIR is the largest government-wide research and development program, and it has helped turn some of the nation’s best ideas into tangible market realities," said Rep. Nydia Velázquez [D-N.Y.], chairwoman of the House Committee on Small Business. "Unfortunately, many entrepreneurs are still not getting the access to the R&D funds they need. That puts them at great disadvantage and robs our economy of the type of innovation we require most."

The SBIR was created by Congress in 1982, and is scheduled to sunset on Sept. 30, 2008. Throughout its history, the program has used small firms to help federal agencies meet their R&D goals. It has also fostered considerable technological innovation and prompted the commercialization of resulting products and services. However, as technology and national priorities change, the initiative is failing to keep pace.

"Even in a challenging economy, SBIR has helped small firms create jobs and wealth. We must continue to strengthen this program and align its focus with today’s technological realities," said Velázquez.

When the SBIR Reauthorization Act of 2000 was passed, technologies such as wireless communications, high definition television and hybrid cars were still in relative infancy. While that law made several modifications, the program is in need of further modernization. Witnesses also pointed to a need for increasing SBIR grants; suggested streamlining the application process; and called for greater flexibility to allow participating firms to leverage private-sector funds.

"One sure way to keep the American economy on the right track is to reform this initiative with an emphasis on providing resources for economically viable technologies," Velázquez noted. "We should increase competition within SBIR, ensure that awards go to projects that will produce the greatest return for taxpayers, and do everything possible to help today’s small firms bring forth tomorrow’s goods and services."

Click link for video clips of today's full committee hearing.

For the list of witnesses and their testimonies, click here.

Velázquez: President Bush’s Final State of the Union Speech Falls Short on Proposals to Help Small Firms Spur the Economy

President George W. Bush delivered his final State of the Union address last night, and spoke about the bipartisan economic stimulus plan that Democrats negotiated on behalf of America’s entrepreneurs and working families. The $147 billion stimulus package is meant to spur the lagging economy, and includes short-term provisions to help small businesses. These include a one-year doubling of the capital expensing limit from $125,000 to $250,000, and an opportunity to write off 50 percent of depreciation for certain equipment purchases in 2008.

All are steps in the right direction, Velázquez observed, but President Bush needed to have spoken about long-term support for the 26.8 million small firms that comprise the economic engine of the United States. He mentioned small businesses only once, and those who tuned into his speech were left wondering if the final 50 weeks of his administration will be just like his first seven years—full of empty promises.

"The president has missed yet another opportunity to address the long-term concerns of small-business owners," said Velázquez. "In the face of a recession, it is clear that it is Democrats who will do whatever is necessary to help American entrepreneurs."

Several of the top concerns of small firms were particularly suspect in their absence from the president’s speech. He failed to adequately broach such items as health care, energy costs and the need for affordable capital.

"Everyone is feeling the credit crunch and rising costs, but entrepreneurs are being hit particularly hard," Velázquez noted. "That harms their ability to grow their businesses, and robs the economy of their full contributions.

"The president said we should empower people to grow the economy. Unfortunately, his State of the Union address failed to lay out a vision to do that."

SOURCES: Library of Congress, U.S. House Committee on Small Business, U.S. Small Business Administration, The White House [photo]

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