Small Business | JoeSestak.com

SMALL BUSINESS

As Vice-Chairman of the House Small Business Committee, Joe Sestak believes in supporting and strengthening small businesses in our community and in this country. In recent months, small businesses-- which comprise 99 percent of American industry and employ half of the private sector workforce-- have struggled with plunging consumer demand, while also finding that needed credit has been shut off in frozen financial markets. To address these conditions, Joe Sestak believes we must provide with new authorities to the Small Business Administration, targeted tax relief for small businesses, and access to credit, among other efforts.

HIGHLIGHTS OF RECENT ACTION TO SUPPORT SMALL BUSINESSES

VICE CHAIRMAN OF THE HOUSE SMALL BUSINESS COMMITTEE

AUTHORED THE SMALL BUSINESS LENDING PROMOTION ACT OF 2009: Makes the Small Business Administration’s (SBA) Community Express Lending Program permanent. Doing so will lift the program’s 14 year status as one of SBA’s most successful pilot programs and thereby remove artificial caps on the number of Community Express loans that may be issued. Community Express represents approximately 12% of current SBA loans and 25.6% of all SBA loans to minorities and socially or economically disadvantaged entrepreneurs.

AUTHORED THE SMALL BUSINESS ENTREPRENEURIAL DEVELOPMENT PROGRAMS ACT: Would have enhanced two critical SBA Entrepreneurial Development programs: Small Business Development Centers (SBDCs), including Women Business Development Centers, and the Service Corps for Retired Executives (SCORE).

AUTHORED THE SBA TRADE PROGRAMS ACT: Would have helped entrepreneurs overcome dislocations due to global trends through outreach centers, including Women’s Business Center.

AUTHORED AMENDMENTS TO THE SMALL BUSINESS FAIRNESS IN CONTRACTING ACT

1. Requires large federal mega-contracts to undergo a bundling analysis to create more

opportunities for small businesses;

Requires market research for Department of Defense contracts greater than $1 million in value.

AUTHORED TRANSPARENCY AMENDMENTS FOR SMALL BUSINESSES: Amendment to the Small Business Innovation Research (SBIR)/ Small Business Technology Transfer (STTR) Reauthorization Act provided for an explanation to SBIR and STTR applicants who are denied an award.

AUTHORED AMENDMENT TO REPEAL COMP DEMO: The repeal of Comp Demo will improve small business prime and subcontracting opportunities through re-establishment of small business set-asides in government procurement. Repealing this legislation would also simplify contract data collection and reporting requirements, and eliminate the administrative effort necessary to carry out Comp Demo.

VOTED FOR SMALL BUSINESS PROVISIONS IN EMERGENCY ECONOMIC RECOVERY ACT (STIMULUS): Puts fresh capital in the hands of small business owners, which will result in the creation or retention of approximately 400,000 jobs, more than 15 percent of the jobs the economy shed last year; and also targets $25 billion in tax relief to small businesses, which will also helps spur growth.

VOTED FOR TARP REFORM AND ACCOUNTABILITY ACT: This bill will amend the Troubled Assets Relief Program (TARP) provisions of the Emergency Economic Stabilization Act of 2008 (EESA) to strengthen accountability, close loopholes, increase transparency, and require Treasury to take

significant steps on foreclosure mitigation. It also requires that Treasury act promptly to permit the smaller community financial institutions and small businesses that have been shut out so far to participate on the same terms as the large institutions that have already received funds.

VOTED FOR H.R. 3567, THE SMALL BUSINESS INVESTMENT EXPANSION ACT, WHICH ESTABLISHES THE OFFICE OF ANGEL INVESTMENT WITHIN THE SBA.: Would have amended the Small Business Investment Act of 1958 to increase the maximum amounts of outstanding leverage made available by the SBA to: (1) any one small business investment company (SBIC) which provides loans to small businesses; and (2) two or more SBICs that are commonly controlled. Would have increased the total amount of debentures and participating securities issued by an SBIC that may be guaranteed by the SBA in the case of an SBIC that certifies that not less than 50% of its aggregate investments will be made in small businesses that are either: (1) majority owned by socially or economically disadvantaged individuals, veterans, or current or former members of the National Guard or reserves; or (2) located in a low-income geographic area.

CO-SPONSORED THE SMALL ENERGY EFFICIENT BUSINESSES ACT: Amends the Small Business Investment Act of 1958 to: (1) authorize financial assistance through the Small Business Administration (SBA) to state and local development companies for projects that reduce energy consumption by at least 10%, reduce the use of non-renewable energy sources, or generate renewable energy sources; and (2) provide loan limits for such projects. Amends the Small Business Act to direct the SBA Administrator to make small business loans to purchase energy efficient equipment or fixtures, or to reduce the borrower's energy consumption. Authorizes a small business development center to carry out a small business sustainability initiative (support to small businesses to evaluate their energy efficiency and achieve increased efficiency).

CO-SPONSORED THE SMALL BUSINESS REGULATORY IMPROVEMENT ACT: Would have revised the Regulatory Flexibility Act. Defines the "economic impact" of a rule to include any direct or indirect economic effects on small entities. And would have required initial regulatory flexibility analyses of a proposed rule to contain a detailed statement describing the type of small entities to which the proposed rule will apply, among many other provisions.

CO-SPONSORED THE JOB CREATION THROUGH ENTREPRENEURSHIP ACT OF 2009: Amends the Small Business Act to direct the Administrator of the SBA to establish a Veterans Business Center Program to provide entrepreneurial training and counseling to veterans. Requires the Program to be headed by a Director, who shall establish a process to designate entities as veterans business centers. Provides funding for such centers. Requires each center to provide veterans' entrepreneurial development, counseling of veteran-owned small businesses, and government procurement assistance to veterans. Targets for such centers areas where the population of veterans, and the population of veterans of Operations Iraqi Freedom or Enduring Freedom, exceed the national median. Authorizes appropriations.

CO-SPONSORED THE SBIR/STTR REAUTHORIZATION ACT: Amends the Small Business Act to extend through FY2010 (currently scheduled to expire at the end of FY2008) the SBIR and STTR programs of the SBA. Increases, for both the SBIR and STTR programs, the individual small business award levels from: (1) $100,000 to $300,000, for participation at a Phase One level; and (2) $750,000 to $2.2 million, for participation at a Phase Two level. Allows participating federal agencies (agencies) to exceed such award levels if such agencies notify, and provide annual reports concerning such increase to, the congressional small business committees.

SUPPORTED HR 578, THE ACCESS TO CAPITAL FOR ENTREPRENEURS ACT to provide a tax credit for 25% of equity investments made in small businesses. Would have amended the Internal Revenue Code to allow angel investors a business tax credit for 25% of equity investments made in small businesses, up to an annual limit of $500,000; and terminated such credit after 2011.

SUPPORTED HR 2803, THE ANGELS NURTURE GROWING ENTREPRENEURS INTO LONG-TERM SUCCESSES ACT: Provides a small business investment tax credit of 20% of the amount paid or incurred for qualified small business investment.

SUMMARY OF FUTURE INITIATIVES

Strengthen small business programs targeting women, veterans, and minorities: Make permanent the Small Business Administration’s Community Express Lending Program, which represents nearly one quarter of all women and minority small business loans and provides small business loans of as little as $25,000. Despite the program’s success, it has remained a pilot program for the last 14 years.

Reinstate expanded federal procurement set asides for small businesses: Repeal the mislabeled Small Business Competitiveness Demonstration Program (COMPDEMO) and implement government-wide setasides.

Ensure a nationwide emergency lending program: During the ongoing economic downturn, establish an office within the SBA that can provide emergency liquidity to small businesses that are facing limited credit availability to meet such basic necessities as payroll.

Encourage increased small business lending: Provide enhanced tax incentives for individuals and private companies to make investments in small businesses. Also raise SBA loan guarantees.

Extend and expand tax incentives for small businesses to create jobs.

Support the development of public-private business development centers: Increase funding for SBA programs that provide entrepreneurial skills to develop small business and create a network of public-private funding avenues for small business start ups.