Small businesses represent more than the American dream - they represent the American economy. Small businesses account for 95 percent of all employers, create half of our gross domestic product, and provide three out of four new jobs in this country.

Health Care
Small business owners need help to pay for health insurance for themselves and their employees. The cost of health insurance shot up almost 50 percent over the last four years, and 45 million Americans are now uninsured. High health care costs for small business owners and their employees is a major expense that eats into funds that could otherwise be used to expand a business, offer more goods, and hire more workers.

That's why House Democrats support the Small Business Health Insurance Promotion Act.  This act will aid small businesses with a 50 percent tax credit to create health insurance choices for their workers.

Access to Capital and Assistance
Small business growth means economic growth for the nation. But to keep this segment of our economy thriving, entrepreneurs need access to loans. Through loans, small business owners can expand their businesses, hire more workers and provide more goods and services. The Small Business Administration (SBA), a federal organization that aids small businesses with loan and development programs, is a key provider of support to small businesses. The SBA’s main loan program accounts for 30 percent of all long-term small business borrowing in America.

But the Administration wants to cut support for the SBA by $79 million, eliminate funding for its loan programs and pass the costs of running those loan programs onto small business owners who are asking for financial help. Instead of federal support for the SBA’s main loan program, the Republican plan counts on small businesses that need loan assistance to pay higher fees.

That's why Democrats are fighting for increased funding for the SBA, including support for loan programs that create jobs and fuel the economy. Higher fees for the SBA’s loan program will mean fewer businesses can afford loans, which will lead to less growth and fewer new jobs. Recently, House Democrats were able to restore funding to the SBA’s main loan program for small businesses for 2005. And Democrats will continue to protect loan programs that will create and expand American small businesses.

Democrats also want small business owners to fully realize their potential. That is why Democrats support SBA’s entrepreneurial development programs, including the Small Business Development Center and Women’s Business Center programs. These initiatives provide counseling in a variety of critical areas, including business plan development, finance, and marketing.  Further, Democrats support investing in the highly successful Manufacturing Extension Partnership (MEP) Program, which offers services to help small U.S. manufacturers stay competitive.  These measures are important to keeping jobs here at home, and helping American small business prosper.

Open the Federal Marketplace
We need to help small businesses keep up with their big business competition. Right now, the federal marketplace favors big businesses and corporations. Small businesses have lost an estimated $13.8 billion in business opportunity because they could not fairly compete for federal contracts because larger companies are allowed to bundle contracts - the practice of accepting “mega-contracts” for large jobs that only they have the resources to handle on the condition that they receive smaller contracts that could have been given out to small businesses. For every 100 bundled contracts, 106 individual contracts are no longer available to small businesses. For every $100 awarded on a “bundled” contract, there is a $33 decrease to small businesses.

Small businesses deserve a fair shot at federal contracts. Democrats will open the $285 billion federal marketplace to them. We have already won small businesses the chance to compete for overseas contracts with the Department of Defense as well as access to international contracts with the United States Agency for International Development. In addition, we will work to modernize key contracting developmental programs designed to increase opportunities for women, minorities and low-income individuals. These actions will reduce the current barriers and ensure small businesses have access to perform federal contracts. This can save taxpayer dollars, because the increased competition for government contracts will lead to better prices and better quality.

Friendlier Regulations
Federal regulations are an added burden for small businesses struggling to compete. The Administration has published 250,000 pages of new regulations, notices, rulings and proposals, and the Government Accountability Office has reported that Americans spend 720 million more hours per year filling out federal paperwork than they did three years ago. This added red tape puts small businesses at a disadvantage -- for businesses with fewer than 20 employees, regulatory costs are 60 percent higher than for firms with more than 500 employees.

The government needs to make it easier - not harder -- for small business to operate. Democrats will make regulations friendlier to small business by cutting down on the paperwork burdening them.

Tax Incentives
Federal budget deficits also strongly impact loans for small businesses. Large deficits drive up interest rates, which makes it expensive for people to expand their small businesses or to start new ones. The Administration has pursued huge tax cuts that bury the country deeper in debt while raising interest rates. Meanwhile these tax cuts, which the Administration claims are meant to stimulate the economy, only apply to the top four percent of small business owners.

Democrats are pushing for responsible tax cuts that keep the federal budget in check and help small businesses across the board. Through our plan we will cut taxes for domestic small businesses and use a pay-as-you-go system that balances spending expenses with cuts in other areas - like fewer tax cuts for large corporations that outsource American jobs. This will keep small businesses competitive and lower interest rates, promote growth and create jobs.

Democrats also want to end tax incentives for companies that ship their jobs overseas, rather than create them here. Currently companies that ship jobs to other countries receive federal tax breaks to give them an edge against foreign competition. This means that the current tax code encourages companies to move their production centers out of the U.S. to save money. It also gives them an unfair advantage in competing against small businesses that employ American workers and make their goods here.

While the Administration supports this strategy, Democrats want to end those tax breaks and cut taxes instead for companies and small businesses that keep American jobs here. We successfully introduced an Economic Stimulus Plan that allowed small businesses to immediately write-off the cost of new investments in equipment and get tax relief for their expenses. We have also proposed a new jobs tax credit that would give businesses $3,000 for every job created in the next two years by American manufacturers, small businesses and other industries affected by outsourcing. These cuts will reward small businesses that invest in American workers and give them the capital they need to grow and fuel our economy.

Open New Markets
House Democrats are committed to providing the technical assistance and necessary tools small businesses need to break into new markets and sell their products abroad. We would also pursue fair trade strategies that open markets, ensure a level playing field for American workers and businesses, and strengthen critical domestic industries, such as our manufacturing, intellectual property, and technology sectors. We would enforce existing trade obligations by pursuing well-documented cases in the WTO and would press other countries to end unfair trade practices like currency manipulation, which makes it harder for U.S. companies to stay competitive. We want fair trade policies that keep jobs here and provide opportunities for American small businesses and their employees.

Small business owners are leaders in innovation, creative business operations and new technologies and products. With the help and support of House Democrats, they can lead our economic recovery.