News from the
House Committee on Small Business
Nydia M. Velázquez, Chairwoman
May 7, 2009 (202) 226-3636
Job Creating Small Business Bill Prepped
Committee Hearing Examines New, Existing Entrepreneurial Development Programs
"To get out of this recession we need to do all that we can to help established small businesses and prospective entrepreneurs succeed and create new jobs," said Rep. Nydia M. Velázquez (D-NY), the Chairwoman of the House Small Business Committee. "Just as they have in the past, small firms promise the surest path to a recovery, and these initiatives give them the right tools and support they need to prosper."
The Committee reviewed a print of the Job Creation through Entrepreneurship Act of 2009. If enacted, the legislation would mark the first overhaul of the SBA's entrepreneurial development programs in a decade. The measure expands specific programs, such as Small Business Development Centers (SBDCs), Women's Business Centers (WBCs) and the Service Corps of Retired Executives (SCORE). The bill also creates new support programs for veteran-owned and Native American-owned small businesses, improves cross-program coordination to maximize use of program resources, and creates 21st century online learning initiatives for entrepreneurs. In addition, the bill creates a grant program for Small Business Development Centers, specifically designed to assist small firms in securing capital and credit.
"The single biggest challenge facing small firms right now is the ability to access credit," Velázquez said. "The Recovery Act that the President signed into law in February will result $21 billion in new lending for small businesses. However, small firms need to know how to access these loans, and this bill will educate them on strategies for meeting their capital needs."
During the hearing, lawmakers frequently commented on how investment in entrepreneurial development programs yields strong returns in terms of economic growth. In 2008 alone, the SBA's entrepreneurial development programs helped generate 73,000 new jobs and infused $7.2 billion into the economy. Some economists have estimated that every dollar invested in these initiatives returns $2.87 to our economy and helps these small businesses thrive.
"This legislation enjoys widespread bipartisan support and it should, given what a strong return on investment entrepreneurial development programs offer to taxpayers," Chairwoman Velázquez said. "
The legislative package is comprised of seven measures that were approved by the Committee's Subcommittee on Rural Development, Entrepreneurship and Trade last week. Those bills, sponsored by five Republicans and two Democrats, include:
Velázquez said that the Committee intended to swiftly move the larger legislative package through the full Committee and to the House floor.
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Click here to view video of the hearing.
IF YOU HAVE QUESTIONS, CALL 202-226-3636.