News From the
Committee on Small Business
Nydia M. Velázquez, Chairwoman

For Immediate Release
May 23, 2007

CONTACT: Kate Gilman/ Austin Bonner,  (202) 225-4038

Committee Approves Bill to Help Small Business Cope with Rising Energy Costs

WASHINGTON – Rising energy costs have hit small businesses especially hard over the past few years, impacting their daily operations and forcing many to alter their business models. To help small businesses cope with climbing energy prices, the House Small Business Committee approved legislation, H.R. 2389, The Small Energy Efficient Business Act (SEEBA), to provide loans, education, and investment to small firms.  

“Small businesses nationwide are struggling as energy becomes increasingly expensive,” said Chairwoman Nydia M. Velázquez. “It is clear that swift action is needed to help firms deal with the record gas and energy prices.  One way to do this is ensuring entrepreneurs are educated and aware of the assistance available to them, as well as helping them to remain the top producers of alternative sources of energy.”

Addressing these challenges, the committee approved legislation today that modifies existing Small Business Administration (SBA) programs to better assist small companies with adapting to today’s changing energy environment. The Small Energy Efficient Business Act, introduced by Congressman Heath Shuler, gives small firms that are acquiring or developing energy efficient technologies more flexible loan terms. SEEBA requires SBA to develop a strategy for educating small firms about energy efficiency, and establishes an energy efficiency program for the Small Business Development Centers (SBDCs). The bill spurs investment in the production of alternative sources, such as biofuels, and the development of energy efficient technology by expanding the Small Business Investment Corporation (SBIC), increasing investment in small producers.  Also included is the creation of the Renewable Fuel Capital Investment (RFCI) program, an initiative designed to help small firms develop renewable energy sources and new technologies.  These measures benefit consumer and producers, reducing costs and increasing competition in the market for energy efficient goods and services.

“Small businesses are the first to be affected by rising energy prices and small businesses will be the first to find the solutions,” said Congressman Heath Shuler, chairman of Subcommittee on Rural and Urban Entrepreneurship. “This bill gives them the tools they need to lead our nation to energy efficiency and independence.”  

SEEBA will make new energy efficient technology more affordable and accessible.  As consumption grows an anticipated one percent annually over the next 25 years, costs for traditional energy sources will continue to increase.  This bill will provide technical assistance to help small business owners implement strategies to mitigate energy costs.  It also launches a comprehensive plan to disseminate energy efficiency information through programs that are already positioned around the country.  SEEBA will not only help small businesses cope with rising costs, but will also increase investment in small firms that are developing renewable energy solutions, recognizing the leadership of entrepreneurs in the alternative energy sector. This bill provides both business development resources and injections of capital that will contribute to creating the next generation of technologies.  SEEBA is essential to helping small firms cope with rising energy costs, reducing the nation’s dependence on foreign oil.   

“Small businesses have proven themselves to be flexible and nimble, adapting to changing to market conditions.” said Chairwoman Velázquez. “The legislation approved today gives entrepreneurs the tools to implement energy efficient strategies and develop renewable energy technologies.”

H.R. 2389 has garnered support from a wide array of small business organizations, including the Independent Electrical Contractors, Air Conditioning Contractors of America, the National Roofing Contractors Association, the Plumbing-Heating-Cooling Contractors Association, the National Small Business Association, and Small Business Majority.

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