CUTTING TAXES, HELPING STARTUPS, AND GETTING MAINE BUSINESSES MORE AFFORDABLE CAPITAL

Mike made major improvements to the Small Business Jobs Act in order to help Maine businesses. The bill, which passed in 2010, leverages up to $300 billion in private sector lending for small businesses. Mike worked to pass a provision to update SBA small business loans and eliminate some burdensome fees – actions that are credited with dramatically boosting loan volumes in Maine and increasing access to capital for small businesses.

Mike also passed an amendment to the bill that in 2011 spurred $132 million in small business lending in Maine. His amendment ensured that state financing programs like Maine’s FAME are eligible for the Small Business Credit Initiative (SSBCI) funding as long as they use the new funding to lend to small firms. In September 2011, the U.S. Treasury Department announced that it had approved a $13.2 million SSBCI allocation for Maine. This funding is targeted to support the business development missions of Maine’s Small Enterprise Growth Fund, 14 regional economic development agencies, and FAME’s Economic Recovery Loan Program. States must demonstrate that a minimum of $10 in new private lending will result from every $1 in federal funding, which is why this federal investment is expected to spur more than $132 million in small business lending in Maine overall.

In addition to these critical access to capital provisions, the Small Business Jobs Act also:

• doubled and enhanced small business expensing and extended bonus depreciation
• doubled the tax deduction for start-up expenditures
• allowed self-employed taxpayers to deduct health costs for payroll tax purposes  
• allowed for 100% exclusion of capital gains on investments in small business

IMPROVING HOW GOVERNMENT WORKS WITH SMALL BUSINESSES

Mike joined with his fellow Blue Dog Coalition members to roll out a plan aimed at providing small business owners the resources they need to grow their businesses and hire new workers. Specifically, the small business plan seeks to promote job growth by providing small businesses with increased access to capital through streamlined approval processes, lower interest rates on SBAExpress loans, increased access to government contracts, and the opportunity to lock in long-term, stable financing.

REDUCING REGULATORY BURDENS

Small businesses today face an array of challenges that weigh on them more heavily than their corporate counterparts. While larger businesses are able to hire regulatory staff, small business owners, who are already putting in long hours to keep their businesses afloat, find themselves with the additional burden of ensuring their businesses are compliant with various federal regulations. Unfortunately, all too often federal agencies use a one-size-fits-all approach that disproportionately burdens small firms. It is crucial that the regulatory requirements do not outweigh the benefits.

Throughout his time in Congress, Mike has supported measures that would require federal agencies to more thoroughly analyze the impact of regulations on small businesses. In a variety of different meetings with constituents, Mike has heard that the regulations required by some federal programs have discouraged numerous small businesses and lenders from utilizing available funds.  Ultimately, if small businesses are less burdened by government rules, they will be in a better position to grow our local economies and create jobs.

Mike has long supported reducing paperwork burdens and ensuring that regulations are issued in plain English so lawyers aren’t needed to figure out how to follow rules. In addition, Mike introduced the IRS Rulemaking Fairness Act of 2011, a bipartisan bill that would require the IRS to analyze the effect of new tax regulations on small businesses. Tax regulations, just like other rules, should be drafted to limit their negative impacts on small businesses. Mike’s bill would ensure that smaller businesses aren’t disproportionately burdened by new rules.

Mike also strongly supported legislation to repeal a rule that would have required the federal government, as well as state and local governments, to withhold 3 percent of most payments made to government contractors. The rule was originally scheduled to go into effect in December 2010, but it has been delayed by Congress and most recently by the IRS, which set an effective date of January 2013. Maine contractors have told Mike directly that this rule was not only unnecessary, but would have disrupted revenue streams, increased the cost of projects, and hurt their ability to hire more workers.  

MAINE MANUFACTURING TOUR

As he conducts his tour of Maine’s manufacturers to highlight the great work they are doing, nearly all of the companies he is seeing are small businesses. Although he visits manufacturers and small business all year round, the tour provides an opportunity to spend a full week listening to the unique challenges and hurdles small manufacturers face and to take those comments back to Washington to encourage his colleagues in Congress to pursue legislation that will boost our manufacturing sector and all of the indirect jobs and small businesses supported by that industry.

EXPORT-IMPORT BANK

Mike led a bipartisan effort to reauthorize the Export-Import Bank before the Bank hit its lending limit. The Bank provides export financing to American companies to help them ship their products overseas. Since 2007 more than $250 million of export sales by Maine companies have been supported by the Bank’s financing. More than 60% of these businesses were small businesses. In addition to reauthorizing the Bank, Mike wants to increase the number of Maine businesses that take advantage of its services and send more of their products overseas.  

PATENT REFORM

Mike led the effort in Congress to oppose the 2007 patent reform bill that would have weakened the U.S. patent system, and he pushed for changes to the America Invents Act that would protect American manufacturing and promote innovation. Mike’s changes were included in the final bill that was signed into law. As a result of the law, the patent backlog will be addressed and the patent application process will be improved, providing more certainty for small businesses who want to protect their intellectual property. The reforms are also critical for the economic recovery, since three to four jobs are created for every patent awarded.  

SBIR EXTENTION

Mike is a strong supporter of the Small Business Innovation Research (SBIR) program. SBIR is highly competitive and encourages small businesses to conduct research and development that has the potential for commercialization. Mike pushed Congress to renew this important program before it expired, resulting in its extension through September 30, 2017.  

SBA MICROLOAN PROGRAM

Mike has always been a strong supporter of the SBA Microloan Program, which provides small, short-term loans to small businesses. He has urged Congress to fully fund the program because it is a vital source of financial and technical support for self-employed entrepreneurs and small businesses in Maine. Sufficient funding is particularly important because the demand for SBA microloans has increased as other sources of credit have dried up.

INCREASING ACCESS TO CAPITAL

Mike is a long-standing supporter of the Small Business Lending Enhancement Act, a bill that would raise the credit union member business lending cap from the current 12.25 percent of total assets to 27.5 percent for eligible credit unions. Allowing credit unions to raise this lending cap would provide more credit opportunities for small businesses, especially for those who have found it hard to get access to capital during the economic downturn. This legislation would have no cost to taxpayers but would provide a big boost to Maine small businesses. Mike continues to push for this legislation to be considered on the House floor.

ASSISTING VETERAN BUSINESS OWNERS

In addition to authoring language which would increase access to capital for veterans, Mike also supported passage of the Military Reservist and Veteran Small Business Reauthorization and Opportunity Act of 2008. This bill, which became law, increased funding for the SBA’s Office of Veteran Business Development. This office works to maximize the availability of small business programs for veterans, service-disabled veterans, reserve members, and their dependents or survivors.

Mike also authored language which was included H.R.1361, the RECOVER Act, that would extend the time period by which a returning reservist may apply for assistance in restarting a small business that they were forced to leave behind when being called up for duty. While the Senate never acted on this bill, similar language was included in H.R. 4253, the Military Reservist and Veteran Small Business Reauthorization and Opportunity Act of 2008, which became law on February 14, 2008.

Additionally, Mike is working to ensure that SBA programs intended to help veterans are run efficiently and effectively, and that contracts and jobs go to the intended recipients. As a former member of the Small Business Committee and current Ranking Member of the Subcommittee on Veterans’ Health, Mike strongly believes that entrepreneurship opportunities for veterans is a vital part of Congress’ mission and must continue to be included in the role of the SBA.

PROMOTING MAINE’S SMALL BUSINESS RESOURCE PROVIDERS

While access to capital and tax relief remains important priorities, more and more small businesses are calling for attention to additional support resources to help them develop plans that will allow them to weather these tough times.

Mike helped pass a bill in the House to modernize key job-creating entrepreneurial development programs within the SBA, expanding proven programs like the Small Business Development Centers (SBDC), Women’s Business Centers (WBC) and the Service Corps of Retired Executives (SCORE) and improving cross-program coordination for maximum benefit. These programs are very active in Maine and have great track records.

Maine’s small business resource providers offer a great support system for both existing and start up businesses. The dedicated individuals working at Maine SBA, SBDC, WBC and SCORE all offer advice, mentoring and business planning skills for small business owners. Maine Business Works, a project of the Maine SBDC and other resource partners, is a great resource that offers information on assistance that is currently available to entrepreneurs in Maine. Mike has held a number of roundtable discussions in order to help connect small business owners with these resource providers. If you would like to be contacted regarding future forums please email Mike.