Recent Press Releases

  • Dec 06 2012

    Senators Outline Ways SBA Can Improve Assistance to Small Businesses Affected by Hurricane Sandy

    WASHINGTON Senator Mary L. Landrieu, D-La., Chair of the U.S. Committee on Small Business and Entrepreneurship, today outlined several ways in which the United States Small Business Administration (SBA) could improve its disaster programs to assist small businesses affected by Hurricane Sandy.  In a letter to SBA administrator Karen Mills, Sen. Landrieu addressed issues such as current disaster funding, assistance to aquaculture business and regional marketing/outreach by the agency as areas of continued focus during the ongoing recovery from the storm.

    Sen. Landrieu was joined on the letter by seven other senators from states impacted by Hurricane Sandy:  Sens. Richard Blumenthtal, D-Conn.; Kay Hagan, D-N.C.; Frank Lautenberg, D-N.J.;  Charles Schumer, D-N.Y.; Kirsten Gillibrand, D-N.Y.; Joseph Lieberman, D-Conn.; and Robert Menendez, D-N.J.

    “By all accounts, the SBA was better prepared and deployed staff quickly following Sandy – a marked difference than its sluggish and ineffective response following Hurricanes Katrina and Rita of 2005,” the letter stated.  “As of November 30th, your agency had already deployed over 369 staff to the impacted states.  The SBA has also begun opening 31 Business Recovery Centers (BRCs) run by the local Small Business Development Centers (SBDCs) and State/local officials.  These centers provide a wide range of services to assist businesses impacted by the hurricane.  While there have been major improvements to the SBA’s disaster programs since the 2005 hurricanes, we believe there are key areas that still require attention.  These areas are critical to ensuring SBA’s disaster programs are efficient and responsive to the victims of Hurricane Sandy.”

    The letter specifically highlighted the following issues:

    • Disaster Funding:  As of November 26th, the SBA had approximately $100 million in administrative funding and $330 million in subsidy for the disaster loan program.  The senators encouraged the SBA to work closely with the Congress to ensure there is appropriate funding for these disaster accounts as well as for Small Business Development Centers in the disaster area.

     

    • Coastal Barrier Resources Act Prohibition:  The Coastal Barrier Resources Act prohibits Federal financial assistance, including SBA disaster loans, to applicants located in the Coastal Barrier System.  The senators noted that they appreciate the SBA’s ongoing coordination with relevant Federal agencies, such as the U.S. Fish and Wildlife Service, to establish clear guidance and maps for distribution.  This coordination and aggressive outreach needs to continue as the vast majority of disaster loan applicants resulting from Sandy do not live in Coastal Barrier areas.

     

    • Aquaculture Business Assistance:  The Small Business Jobs Act of 2010 (P.L. 111-240) included a provision that allowed aquaculture businesses to apply for SBA Economic Injury Disaster Loans (EIDLs), so long as disaster assistance is not provided by other Federal agencies.  The senators encouraged the SBA to review its ability to provide disaster assistance to small aquaculture businesses impacted by Sandy. 

     

    • Duplication of Benefits:  After Hurricane Katrina, the SBA deducted Louisiana Road Home recovery grant proceeds (funded via U.S. Department of Housing & Urban Development Community Development Block Grants) before they were awarded to borrowers.  According to the SBA, these actions were taken to address “duplication of benefits (DOB)” between Road Home grants and SBA disaster home loans made to the borrowers.  Deducted grant proceeds were used to pay down balances on SBA disaster home loans.  In many instances, this left disaster victims without sufficient funds to rebuild their homes or to address needs that arose subsequent to the disaster (such as contractor fraud, increases in building costs, or additional damage to partially repaired homes).  The senators noted that late last year HUD and the SBA signed an agreement that improves agency coordination on this issue.  The letter requested an update on this agreement and how it includes provisions ensuring assistance after disasters such as Sandy for borrowers with unmet needs.

     

    • Regional Outreach and Marketing of SBA Disaster Programs:  The Small Business Disaster Response and Loan Improvements Act of 2008 (P.L. 110-246) required the creation of a marketing and outreach plan, including regional marketing ahead of disasters likely to occur in each area of the country.  The senators noted that while SBA disaster loans are universal for every disaster, each disaster impacts regions/businesses differently.  Just as disaster victims must prepare differently for each disaster, the SBA must tailor its outreach for different disasters that may impact certain parts of the country – including targeted outreach before annual disaster seasons.  The letter requested that the SBA provide an update on regional disaster outreach in the East Coast this year and prominently feature hurricane-related information in future agency disaster outreach in this region.

     

    • Guaranteed Disaster Loan Pilot Programs:  The Small Business Disaster Response and Loan Improvements Act of 2008 (P.L. 110-246) also created two Guaranteed Disaster Loan Pilot Programs (a $25,000 Immediate Disaster Assistance Program and a $150,000 Business Expedited Disaster Loan Program).  In subsequent Appropriations cycles, Congress has provided the SBA with the necessary funds to test these programs with local lenders.  In the event that these programs may be activated for Hurricane Sandy, the senators requested an update on the SBA’s piloting of these programs, its review of lessons learned, and the promulgating of final regulations. 

     

    Click here to read the full letter.

     

  • Dec 04 2012

    Bipartisan Women’s Contracting Amendment Unanimously Approved as Part of Defense Bill

    A bipartisan group of United States Senators led by Olympia J. Snowe (R-Maine) and Mary L. Landrieu (D-Louisiana) were successful in adding an amendment to bolster contracting opportunities for women-owned small businesses (WOSBs) to the National Defense Authorization Act for FY 2013 (S. 3254).   The measure would eliminate a current-law restriction on the dollar amount of a contract that women-owned small businesses can compete for, putting them on a level playing field with the other federal small business socio-economic contracting programs.  The federal government has consistently failed to meet its annual women’s contracting goal of five percent, and this provision will assist in satisfying, if not exceeding that goal.  The amendment was cosponsored by Senators Kirsten Gillibrand (D-New York), Scott P. Brown (R-Massachusetts), Barbara Mikulski (D-Maryland), Mark Kirk (R-Illinois), and Bob Casey (D-Pennsylvania). 

    “Simply put, women-owned small businesses have yet to receive their fair share of federal contracting dollars, and as the fastest growing segment of our economy, women-owned small businesses will play a critical role in helping our nation recover from the recent recession,” the Senators said.  “This inequity was the impetus behind the women’s contracting program that Congress authorized on December 21, 2000, and over a decade later, the program was finally implemented by the SBA.  While we applaud this Administration’s efforts to finally put in place a functioning program, the unfortunate fact is that women-owned small businesses will still face a disadvantage when compared to HUBZone, 8(a), and service-disabled veteran-owned businesses.  Our amendment will help put women-owned firms on a level playing field with these other socio-economic groups to ensure their maximum participation in the federal contracting process.”

    Women-owned small business advocates and leaders praised the news.

    “This is a very important step toward bridging the gap for women entrepreneurs who wish to do business with the world’s largest consumer - the federal government,” said Barbara Kasoff, President of Women Impacting Public Policy.  “We would like to thank Senator Olympia Snowe and her colleagues for their commitment to building a better partnership between government and the women-owned small business community.”

    “Implementing a women-owned small business procurement program but limiting the size of the awards was akin to opening the door of opportunity only part-way,” said Julie R. Weeks, chair of the board of the Association of Women’s Business Centers and president & CEO of Womenable.  “This amendment not only will provide more opportunities for WOSB contractors, it will increase competition and provide greater value to federal agencies.”

    “We congratulate this bipartisan group of Senators on their leadership moving forward the first of the several modifications that are needed to improve the effectiveness of the Women’s Procurement Program,” said Margot Dorfman, Chief Executive Officer of the U.S. Women’s Chamber of Commerce.  “Removing the cap on federal contracts for women is an important first step to bring parity to the set aside programs. We hope that Congress will build on the Senators’ efforts to bring the rest of the needed changes to provide fair access to federal contracts for women-owned firms.”

    BACKGROUND: Currently, WOSBs may only receive awards up to $5 million for manufacturing and $3 million for all other industry codes when competing for Federal contracting opportunities.  The amendment removes the limit on the anticipated award amount and provides WOSBs the ability to vie for Federal contracts regardless of the contract dollar amount.   Other Small Business Administration (SBA) contracting programs, such as the 8(a), Service-Disabled Veteran Owned Small Business (SDVOSB), and HUBZone programs, allow business to receive reserved awards at any dollar amount.

    The amendment also requires a study and report to be conducted every five years to update the North American Industry Classification System (NAICS) codes in which women are considered under-represented and may therefore participate in the women-owned small business contracting program.  The SBA’s proposed women’s rule identifies 83 industry codes in which women are identified as underrepresented and are therefore able to receive Federal contracts reserved for WOSBs in those industries.

Recent Articles

  • Nov 16 2011

    Senate Legislation Protects Small Business from Job-Crushing Health Insurance Tax

    Senators Barrasso, Hatch, Snowe Introduce Bill to Repeal HIT

    FOR IMMEDIATE RELEASE

    Contact: Jennifer Cooper, (202) 406-4425 or Jennifer.Cooper@NFIB.org

    Senate Legislation Protects Small Business from Job-Crushing Health Insurance Tax
    Senators Barrasso, Hatch, Snowe Introduce Bill to Repeal HIT 

    WASHINGTON, D.C., November 16, 2011 — United States Senators John Barrasso (R-WY), Orrin Hatch (R-UT), and Olympia Snowe (R-ME) today introduced legislation, The Jobs and Premium Protection Act, to repeal the onerous Health Insurance Tax (HIT) which takes $87 billion away from small business by the end of the decade, resulting in a job-loss of 125,000 to 249,000 jobs in the private sector in 2021, according to a study released by the National Federation of Independent Business Research Foundation; small business will shoulder 59 percent of this job-loss burden. 

    “The Health Insurance Tax is a Washington policy that will have a devastating impact on our nation’s job creators,” said Susan Eckerly, Senior Vice President of Public Policy. “The stark reality is that the country’s economy is still reeling, and every single job matters; the last thing people in the unemployment line want to hear is that one less job will be created and even more will be shed as a result of the HIT.  Because of the leadership of Senators Barrasso, Hatch and Snowe, small-business owners now have bipartisan and bicameral legislation that will repeal this tax and protect their ability to continue to create vital jobs.”

    “Our legislation repeals this unfair, hidden tax on America’s job creators, and will save thousands of jobs across the country,” said United States Senator John Barrasso.  “This tax is just another example of how the President’s trillion dollar health spending law is only making things worse for small businesses and their workers. With 9 percent unemployment, hardworking Americans cannot afford to be hit hard by even higher premiums.  We need to stop the HIT on our economy now – before it starts.”

    “Chock full of tax hikes, mandates and government overreach, the President’s $2.6 trillion health spending law is an anchor around our economy’s neck,” said United States Senator Orrin Hatch.  “The health law’s insurance tax is especially damaging, undercutting our economic recovery by increasing the cost of health coverage.  Money that could go to higher wages, new workers, or investment will instead go to pay this new tax.  With insurance premiums already skyrocketing and unemployment hovering at 9 percent, this tax makes no sense.  The President is demanding jobs legislation; he should start by supporting the repeal of this tax.”

    “Preventing the new health insurance tax is critical, especially in the current economic environment,” said United States Senator Olympia J. Snowe.  “As the cost of health insurance continues to rise unabated – another 9 percent on average this year – individuals and small businesses are struggling to afford coverage.  Meanwhile, the Democrats’ health care law is set to impose this $60 billion tax and the Director of the Congressional Budget Office has confirmed this tax will be paid by the individuals and small businesses who buy health insurance.  This tax could increase the cost of health insurance by 15 percent for small businesses, and kill hundreds of thousands of jobs.  I am proud to be a sponsor of the Jobs and Premium Protection Act, and remain committed to repealing the job-killing health care law, as well as to repealing its worst pieces.”

    The Health Insurance Tax, which goes into effect in 2014, will cost small-business owners, their employees and the self-employed, $87 billion in the first ten years and $208 billion in the following ten years; the tax impacts 2 million small businesses, 12 million employees and the self-employed who purchase in the individual market and 26 million employees who are covered by their employer, resulting in a cost of nearly $5,000 per family over a decade.

    The NFIB Research Foundation’s BSIM (Business Size Impact Module) model suggests that such a price increase will reduce private sector employment by 125,000 to 249,000 jobs in 2021, with 59 percent of those losses falling on small business. The BSIM is a dynamic, multi-region forecasting model that analyzes the impact of policy “shocks” on the economy.  The BSIM is unique in ability among models to forecast the economic impact of policy on U.S. businesses differentiated by the size of the firm; in this case, small business is defined as those firms with less than 500 employees (Small Business Association definition).

    Representative Charles Boustany (R-LA) has introduced legislation in the House, HR 1370, to repeal the Health Insurance Tax and his legislation currently has 78 bipartisan cosponsors, leading the way for a bicameral and bipartisan repeal of the Health Insurance Tax. 

    ###

    NFIB is the nation’s leading small business association, with offices in Washington, D.C. and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small and independent business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists send their views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system. NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses. More information is available online at www.NFIB.com/newsroom.

  • Oct 18 2011

    Small Business Lending Fund, Part Two?

    by Kent Hoover
    Portfolio.com

     

    Most folks consider the Small Business Lending Fund a disappointment.

    Designed to provide up to $30 billion in cheap capital to community banks for use in making small business loans, the program only provided $4 billion. Most of the banks that applied for this capital were rejected.

    So given this record, what does Senator Mary Landrieu want to do? She wants to give the program another shot.

    Landrieu, the Louisiana Democrat who chairs the Senate Small Business and Entrepreneurship Committee, announced today that she wants to develop a Small Business Lending Fund II.

    “Until this recession is at a distance in the rear-view mirror, I believe that this committee has an obligation to turn out time-tested as well as new and innovative programs to get capital into the hands of small businesses throughout our country,” Landrieu said.

    Treasury Secretary Timothy Geithner, whose department handled the SBLF, told Landrieu that he’d be happy to work with her on this.

    Geithner was the only witness at the committee’s hearing today, which focused on the Small Business Lending Fund and the State Small Business Credit Initiative. That program provided $1.2 billion in federal funds to state efforts to boost lending to small businesses.

    Both Geithner and Landrieu, who sponsored the bill that created the Small Business Lending Fund, defended the program against Republican attacks.

    Geithner said the 332 banks that received SBLF capital will leverage that money into $9 billion of additional lending to small businesses by the end of 2014. The State Business Credit Initiative will produce an additional $15 billion in lending, he said.

    Landrieu said the amount of capital delivered to banks through the Small Business Lending Fund was not “as much as we had hoped,” but called it a “welcome start to getting capital to small businesses.”

    Republicans, however, noted that community banks used all but $1.8 billion of the $4 billion in SBLF capital they received to pay off their Troubled Asset Relief Program obligations. These banks essentially paid off one taxpayer-provided credit card with another taxpayer-provided credit card that had lower interest rates, said Republican Senator Olympia Snowe.

    “There’s no surprise in these numbers,” Geithner replied.

    Banks that used SBLF capital to pay off TARP will still have an incentive to increase their small business lending because they’ll have to pay back the federal government more for this money if their loan volume doesn’t increase, he said.

    “Despite the TARP repayments, we will see more lending to small business,” Landrieu said.

    But Snowe, who is the ranking Republican on the small business committee, said more than half of the banks that got SBLF capital had already increased small business lending before getting this money. There is no evidence, she said, that the program was going to have any impact on job creation.

    Snowe told Geithner it’s time to stop President Barack Obama’s “trial and error era” of trying one program after another to jump-start the economy.

    “It’s not working, and people are hurting,” she said.

    What’s needed, Snowe said, was fundamental tax reform and a reduction in the regulatory burden on business.

    Geithner said he agreed that tax reform is needed, but contended the cumulative regulatory burden under Obama is no greater than it was under President George W. Bush.

    “The most important thing we can do today is to help small businesses thrive and hire is pursue policies that result in a sustained period of stronger economic growth,” Geithner said.

    What are those policies? No surprise here—Geithner said they’re the combination of tax breaks, infrastructure investments and aid to states included in the president’s proposed jobs plan.

    Snowe wasn’t buying it. Your primary job, she told Geithner, is to craft economic policy.

    “At this point, it simply isn’t working,” she said.


    Source: http://www.portfolio.com/views/blogs/capital/2011/10/18/landrieu-seeks-second-chance-for-small-business-lending-fund#ixzz1bAXxFeR9