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

For Immediate Release                                                       CONTACT:  Alex Haurek; Duncan Neasham
May 20, 2009                                                                                                                 (202) 226-3636

House Approves Jobs Creating Small Business Bill
Entrepreneurial Initiatives Passed as Nation Observes National Small Business Week

WASHINGTON, D.C. —As the country observes “National Small Business Week,” the U.S. House of Representatives today passed bipartisan legislation giving small businesses additional resources to thrive and create jobs. Rep. Nydia M. Velázquez (D-NY), Chairwoman of the House Small Business Committee, praised passage of H.R. 2352, the “Job Creation Through Entrepreneurship Act of 2009,” saying the bill aggressively expands entrepreneurial development (ED) programs at the Small Business Administration (SBA).

“Entrepreneurial development programs have a proven track record, not only helping small businesses flourish, but in assisting out-of-work Americans who want to launch their own ventures and make entrepreneurship their next career step,” Velázquez said. “Given the current state of the economy, we need these initiatives now, more than ever.”

The legislation marks the first overhaul of the Small Business Administration’s (SBA) entrepreneurial development programs in a decade, expanding a portfolio of proven services. Through ED programs, small businesses and prospective entrepreneurs receive technical assistance and training on a range of topics important to running a business. The legislation also creates new support services for veteran-owned and Native American-owned small businesses. Further, the bill establishes a green entrepreneurial development program, providing classes and instruction in starting a business in the fields of energy efficiency and green technology.

“Studies have shown that small businesses that take advantage of entrepreneurial development services are twice as likely to succeed,” Velázquez said. “This legislation improves access to the existing programs that we know work, and creates new initiatives to further foster entrepreneurship.”

Lawmakers said the bill specifically targets ED resources toward addressing the economic downturn. With small businesses facing extraordinarily tight credit markets, entrepreneurs will benefit from a new grant program designed to help them secure capital. The bill will also assist dislocated workers interested in starting their own business; establish survival tools that small companies can access via the Internet; and offer expert consulting and education to assist troubled small businesses. During debate, the House approved nine amendments offered by other Members of the House. Those measures include provisions to prepare active-duty service members for careers in entrepreneurship once they leave the military, as well as increases in funding for the new Veterans Business Centers. Other amendments approved by the House would establish a network of “microenterprise” training centers in low income communities, as well as help small manufacturers retool to adjust to the challenging economy.

“Times are tough and it is important that entrepreneurial development programs provide relevant services to struggling small business owners,” Velázquez said. “Previous downturns produced some of our most innovative entrepreneurs, and fostering that same enterprising spirit will help bring our economy back on track.”

The connection between economic growth and entrepreneurial development is clear: in 2008 alone, the SBA’s entrepreneurial development programs helped generate 73,000 new jobs and infused $7.2 billion into the economy. In addition, economists estimate that every dollar invested in these initiatives returns $2.87 to the Treasury. The legislation passed the House with strong bipartisan support by a vote of 406 to 15. It now heads to the Senate for consideration.

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