Republican Small Business Committee RSS Articles

Small Biz Straight Talk (11/20/09)

Fri, 20 Nov 2009 05:00:00 GMT

Friday, November 20, 2009

News from Ranking Member Sam Graves and Committee Republicans:
(Please send any member media activity to angela.landers@mail.house.gov)

• Ranking Member Sam Graves (R-MO) in Government Executive: “GAO finds extensive fraud in disabled veteran-owned small biz program”

• Ranking Member Sam Graves (R-MO) in The Hill: “Lawmakers say broadband grants should be more accessible to small firms”

• Ranking Member Sam Graves (R-MO) and Committee Member Rep. Glenn Thompson (R-PA) sent a letter to the House Committee on Education and Labor “Small Business Owners Could Be Mandated to Pay Employees H1N1 Sick Leave” Read the letter here.

• Ranking Member Sam Graves (R-MO) and Members of the House Small Business Committee wrote a letter to the National Telecommunications and Information Agency (NTIA) and Rural Utilities Service (RUS) “Lawmakers Call Upon Agencies to Cut Red Tape on Recovery Act Broadband Expansion Grants for Small Biz” Read the letter here.

• Ranking Member Sam Graves (R-MO) in Broadcasting & Cable: “House Small Business Committee Backs Focus on Broadband Funding For Remote Areas”

• Rep. Vern Buchanan (R-FL): “Bill to Help Small Business Passes House”

• Rep. Vern Buchanan (R-FL) spoke out on the House Floor about small businesses and jobs.

• Rep. Blaine Luetkemeyer (R-MO): “Takes to House Floor in Support of His Bill to Help Small Business”

• Rep. Aaron Schock (R-IL) in The Hill: “Innovative bill would temporarily suspend small-business payroll tax”

Must-Reads from the Week:

• Time Magazine: Small Business, Key to Recovery, Is Still Hurting

• Wall Street Journal: Small Businesses Turn to Goldman

• CNN Money: Small biz lending freefall in spotlight

Administration and the SBA:

• Earlier this week, President Obama said he wanted to work towards approving a trade deal with South Korea in 2010. A trade pact with South Korea would represent the largest one since the North American Free Trade Agreement; however, groups such as labor unions and auto manufacturers remain opposed over barriers to U.S. auto exports. The South Korean deal represents one of three remaining pacts signed by former President George W. Bush that has yet to be approved by Congress. The other two trade pacts that remain include Panama and Columbia.

• This week the U.S. Department of the Treasury and the SBA held a small business financing forum with banks and small business owners to discuss the credit crunch and ways to improve access to capital to small business owners. Treasury Secretary Timothy Geithner and SBA Administrator Karen Mills discussed ideas to improve the flow of capital to small businesses. At the forum, small businesses and banks were quick to point out that technical obstacles, such as time consuming paperwork requirements and regulatory hurdles, have slowed the flow of small business loans.

Review of House Activity:

• On Wednesday, the House passed H.R. 3791, the Fire Grants Reauthorization Act of 2009, by a vote of 395-31. The legislation authorizes $2.2 billion through FY 2014 for the Assistance to Firefighters Grant program and the Staffing for Adequate Fire and Emergency Response (SAFER) program. These grants are used by fire departments and other emergency organizations to purchase equipment and hire/retain personnel.

• On Thursday, the House passed H.R. 3961, the Democrats’ Medicare “Doc Fix” by a 243-183 margin. This legislation provides a permanent adjustment to Medicare physician reimbursements. According to the CBO, H.R. 3961 would raise seniors' Medicare premiums by nearly $50 billion over ten years. These premium increases would be on top of the 20 percent increase in Part D prescription drug premiums as a result of the Pelosi health care bill, according to the House Republican Conference.

• On Thursday, the House passed H.R. 2781 by a 292-133 margin. This legislation designates 21.3 miles of the Molalla River in Oregon as “wild and scenic” within the National Wild and Scenic Rivers System. Conservatives have general concerns over designating lands under the “wild and scenic” system, including land acquisition authority and land use restrictions.

• The House passed five small business related bills this week aimed at improving business conditions for smaller firms. The legislation, all of which were approved by the House earlier this year, would provide loans for doctors in small practices to purchase health information technology; investment capital for targeted industries such as agriculture research and health information technology; expand the SCORE mentoring program for entrepreneurs; require the SBA to collect data on its entrepreneurial development programs; and establish an office within the SBA to specifically assist businesses owned by Native Americans. The bills are:

HR 1839 – To amend the Small Business Act to improve SCORE
HR 1834 – Native America Business Development Enhancement Act
HR 1842 – Expanding Entrepreneurship Act
HR 3738 – Small Business Early-Stage Investment Act
HR 3014 – Small Business Health Information Technology Financing Act

• On Tuesday, the House Education and Labor Committee conducted a hearing examining legislation that would impose new costly mandates on small business owners. The legislation, H.R. 3991 the Emergency Influenza Containment Act, would require employers with as few as 15 employees to provide five days of paid sick leave per 12 month period to all full or part time workers who are sent home by their employer or directed to stay home by their employer because of contagious illness, such as the H1N1 virus. One witness, Bruce Clark, President and CEO of Capital Associated Industries, Inc., representing the National Association of Manufacturers said “it’s important that Congressional activity not threaten employers' ability to creatively design programs that meet the unique needs and constraints of their workforce. Such requirements applied to the broad, diverse industries that make up our nation's economy negatively impact all employers, especially small businesses, and limit our ability to retain and create new jobs.” The Small Business Committee will continue to monitor this legislation.

Legislation and Letters Circulating Around the House:
(If you would like to publicize your small business effort in Congress, please email Paul Sass at Paul.Sass@mail.house.gov)

• Rep. Doc Hastings (R-WA) Seeks Co-Signers for Letter to Pelosi Encouraging a Vote on the Colombia Trade Promotion Agreement - November 22nd marks the third anniversary of the signing of the United States-Colombia Trade Promotion Agreement, which levels the playing field and gives the United States the same access to Colombian markets that they currently enjoy to ours. While the agreement was sent to Congress last year, the House of Representatives has not yet voted on legislation to implement this important agreement. With unemployment rates in double digits, signing this agreement will create jobs in the United States without spending more taxpayer money. Please join Congressman Doc Hastings in encouraging Speaker Nancy Pelosi to allow a vote on the U.S.-Colombia Trade Promotion Agreement, which will bring billions in new revenue for American families and businesses and create new jobs at a time when our country needs them the most. Please contact Kate Woods at 5-5816 or kate.woods@mail.house.gov for additional information or if you would like to sign on. The deadline is COB on Friday, November 20th.

Review of Senate Activity:

• On Tuesday, the Senate passed the FY10 Military Construction-VA spending measure by a vote of 100-0. The legislation now heads to conference where differences will be worked out with the House-passed version. The Senate bill provides $133.9 billion for the Department of Veterans Affairs and military construction and housing. The Military Construction-VA measure is the 9th of 12 spending bills to pass the Senate. The House has completed work on all 12 appropriations bills.

• On Wednesday, Senate Majority Leader Harry Reid finally unveiled his 10-year $848 billion health care bill. The legislation has major differences with the House version, including how taxes, abortion coverage, and a public option are addressed. News reports suggest that there will be a possible vote on Saturday, and 60 votes will be needed to proceed to a floor debate.

• On Thursday, the Senate passed S. 1963, the Caregivers and Veterans Omnibus Health Services Act of 2009 by a 98-0 margin. The bill authorizes $3.7 billion to provide monthly stipends and medical benefits to family members who stay home to care for severely injured veterans of the wars in Iraq and Afghanistan. Also included in the legislation are provisions that reimburse caregivers for travel expenses and training, improve health services for women veterans and rural areas, and nearly $1 billion for veterans medical facilities.

House Small Business Committee hearing summary this week:

• On Thursday, November 19, the House Small Business Committee held a hearing entitled, “Oversight of the Small Business Administration and its Programs.”

The witnesses at the hearing were: The Honorable Karen Mills, Administrator, United States Small Business Administration (SBA),Washington, DC; and Gregory Kutz, Managing Director, Forensic Audits and Special Investigations, Government Accountability Office (GAO), Washington, DC.

Administrator Mills praised the efforts of the Administration in trying to stimulate economic recovery by providing increased capital to small business owners. Administrator Mills noted an increase in lending since the enactment of the stimulus. The Administrator also noted her commitment to ensuring a transparent use of funds allocated in the stimulus. She also commented that there was no room for fraud or abuse in Small Business Administration programs, including the Service-Disabled Veteran-Owned Small Business (SDVOSB) Contracting Program.

Mr. Kutz reported on GAO’s investigation into fraud in the SDVOSB program. He noted that it was a self-certification program without any checks or valid fraud prevention techniques. He recommended that SBA implement changes to ensure that firms ineligible firms no longer receive contracts under the SDVOSB program.

The Chair and Ranking Member promised to take legislative action if fraud in the SDVOSB program was not eliminated forthwith.

View the release here.

Other Small Business News off the Hill:

• The NFIB released its November 2009 Small Business Economic Trends

Looking Forward:
House Small Business Committee hearing next week:
Congress is expected to be in recess next week; therefore, Ranking Member Sam Graves’ Small Biz Straight Talk will be released next on December 4.

"Oversight of the SBA and its Programs"

Thu, 19 Nov 2009 05:00:00 GMT

Opening Statement for Hearing on
Oversight of the Small Business Administration and its Programs
Sam Graves
Ranking Member
Committee on Small Business
United States House of Representatives
Washington, DC
November 19, 2009

I would like to thank the Chairwoman for holding this important hearing today on Oversight of the Small Business Administration and its programs. I look forward to hearing the insight of all the witnesses about these programs, especially the Service-Disabled Veterans Small Business Contracting Program.

The Small Business Administration oversees a variety of programs, including procurement initiatives, designed to increase growth of small businesses. This Committee has responsibility to ensure that these programs operate to the benefit of small businesses, including the ones directed at specific groups, such as service-disabled veterans.

The Small Business Act requires that small businesses receive their fair share of opportunities to provide goods and services in the 434 billion dollar federal contracting marketplace. Congress then decided that within the segment of small businesses, those owned by service-disabled veterans deserve extra assistance for the sacrifices that they have made to defend the country. No one can deny that this assistance is deserved.

It is then troubling to find out that the program is subject to fraud. The investigation that will be discussed at this hearing reveals that some firms are not performing the contracts; instead they are having the goods or services supplied by large businesses. In other cases, businesses are not owned by service-disabled veterans. The underlying problem, as it was with the HUBZone program, is the ability of a small business to self-certify eligibility for the program without any independent checks by the SBA.

By itself, the fraud would be problematic. However, it is more troubling that firms ineligible for the program then deny firms that are eligible for contracts. The firms denied contracts are those owned by individuals who made a significant sacrifice in defending our country. And that is simply unacceptable.

I look forward to hearing testimony of our witnesses today and learning about the steps they are taking to address the problems of fraud. If those actions do not prove successful in ensuring that service-disabled veteran small business owners benefit from the program, I will take aggressive legislative action to do so.

Again I thank the Chairwoman for holding this important hearing and look forward to suggestions on how to rid the program of fraud and abuse.

OVERSIGHT HEARING CATCHES $100 MILLION OF FRAUD IN SMALL BUSINESS VETERAN’S PROGRAM

Thu, 19 Nov 2009 05:00:00 GMT

OVERSIGHT HEARING CATCHES $100 MILLION OF FRAUD IN SMALL BUSINESS VETERAN’S PROGRAM

WASHINGTON, DC – Today the Government Accountability Office (GAO) released a report that uncovered over $100 million of fraud and abuse in the Service-Disabled Veteran-Owned Small Business (SDVOSB) contracting program at the Small Business Administration (SBA). This morning the House Small Business Committee held an oversight hearing to review the report’s findings. Karen Mills, Administrator of the SBA, and Gregory Kutz, Managing Director of Forensic Audits and Special Investigations at the Government Accountability Office (GAO) testified before the Committee.

The SBVOSB program’s goal is to provide procurement assistance to small businesses owned by service-disabled veterans. Legislation enacted by Congress in 1999 established a government-wide goal that at least 3 percent of the total value of all federal prime and subcontracting dollars be awarded to small businesses owned by service-disabled veterans. Eligibility for the program lies with the Administrator of the SBA and the Department of Veterans Affairs (VA). The law requires that at least 51 percent of the small firm be owned and controlled by one or more service-disabled veterans, and the VA to determine whether the applicant is service-disabled.

According to the GAO report, in 2008, only 1.5% of all government contract dollars were awarded to SDVOSBs, falling short of the 3% goal. In addition, the report found over 100 allegations of fraud and abuse in the program. Of the 10 case studies in GAO’s report, none met SDVOSB program eligibility requirements.

Committee Ranking Member Sam Graves (R-MO) said, “I am outraged that fraud in this federal program, intended to benefit our brave soldiers, means that fewer opportunities are available to our service-disabled veterans. If the SBA and VA do not move expeditiously to ensure that veteran small business owners benefit from SDVOSB program, then I will take aggressive legislative action.”

###
To view the hearing on YouTube click here.

Lawmakers Call Upon Agencies to Cut Red Tape on Recovery Act Broadband Expansion Grants for Small Businesses

Tue, 17 Nov 2009 05:00:00 GMT

Lawmakers Call Upon Agencies to Cut Red Tape on Recovery Act Broadband Expansion Grants for Small Businesses

WASHINGTON, D.C. — A bipartisan group of 21 lawmakers on the House Small Business Committee wrote the National Telecommunications and Information Agency (NTIA) and Rural Utilities Service (RUS) today, asking the agencies to lower barriers so small businesses can participate in the American Recovery and Reinvestment Act’s broadband expansion initiatives.

The letter, signed by both Rep. Nydia M. Velázquez (D-NY), the Chairwoman of the House Committee on Small Business, and Rep. Sam Graves (R-MO), the Ranking Member of the Committee, calls on the agencies to strengthen the program’s economic growth and job creation potential by addressing entrepreneur’s concerns.

The text of the letter is below:

November 16, 2009

The Honorable Lawrence E. Strickling
Assistant Secretary for Communications and Information
National Telecommunications and Information Administration (NTIA)
U.S. Department of Commerce
1401 Constitution Ave., N.W.
Washington, DC 20230

The Honorable Jonathan Adelstein
Administrator
Rural Utilities Service (RUS)
U.S. Department of Agriculture
1400 Independence Ave., S.W.
Room 5135-S
Washington, DC 20250

Dear Assistant Secretary Strickling and Administrator Adelstein:

The Small Business Committee appreciated the testimony provided during the October 28, 2009 hearing on “The Recovery Act and Broadband: Evaluation of Broadband Investments on Small Businesses and Job Creation.” Your remarks offered critical insight into the importance of broadband for small businesses. The testimony also allowed the Committee to more clearly understand the role of broadband in stimulating the economy and creating jobs.

The strong applicant interest in both the Broadband Initiatives Program (BIP) and the Broadband Technology Opportunities Program (BTOP) suggests that these American Recovery and Reinvestment Act programs offer significant opportunities for expanding broadband throughout the country. However, despite the interest expressed in these programs, many concerns have been raised by small businesses with respect to their implementation. As NTIA and RUS complete the first round of funding and seek comment on the second round rules, we ask that the following recommendations be considered.

Advancing the Recovery Act Objectives and Goals

To ensure that new infrastructure projects reach communities with the greatest need, prioritization should be given to areas without access to broadband. It is the Committee’s recommendation that funds should be targeted to areas which are first “unserved” and only then to “underserved” areas, if funding remains.

Second, the Committee urges improvements to the website used to display applications and receive comments from the public, including existing service providers. It is our understanding that the procedures for using this website are confusing and time/resource consuming, particularly for small businesses. Without such changes, the Committee is concerned that awards will be issued with an inaccurate or incomplete picture of existing service.

Additionally, as was raised during the Committee’s hearing, Members are concerned by the process that existing service providers must undergo to demonstrate where broadband service is already provided. A formal process should be implemented to reconcile conflicting data received from an applicant and from existing service providers. This will ensure fairness and accuracy for all parties involved.

Challenges Associated with Program Requirements

The nature of the BTOP/BIP application process has created many barriers to small business participation. Among the greatest challenges include the following: the complex application process, a 10-year limitation on the sale of award funded facilities, a matching contribution requirement, and a first lien rule. Before a second round Notice of Funds Availability or NOFA is issued, the Committee suggests that revisions be made to maximize participation among small firms.

It is the Committee’s recommendation that NTIA and RUS should examine the challenges associated with the current application process. The significant paperwork and data collection requirements have made the application process very expensive for many small firms. As James Gleason, President and CEO of NewWave Communications testified, the up-front costs included $50,000 to support the data requested in the application and $30,000 to defend his company’s existing service territory. These investments come without any guarantee of receiving a grant or loan award.

In addition, the 10-year limitation on the sale or lease of award funded facilities creates a significant barrier for small firms. To ensure that firms can continue to grow and innovate, the Committee believes this provision should be modified. Applicants should also have greater flexibility to use revenue generated through a BTOP/BIP award. The rules currently limit an award recipient from using subscriber revenues to cover expenses such as technician installation costs, marketing costs, advertising costs, and other expenses associated with running a business during the initial three years. This serves as a disincentive for many small firms to apply. We hope the agencies will modify this provision to, at the very least, clarify that program income refers to profits and not gross income.

A high matching contribution requirement also seems to serve as a barrier for participation among small firms. Applicants to BTOP are required to provide a matching contribution of at least 20 percent towards the total project cost. The Committee urges NTIA to consider a formal waiver process for small firms, so that the matching requirements could be lowered or eliminated.

Furthermore, the requirement that RUS hold an exclusive first lien on applicant’s assets may present a conflict for some firms. The Committee recommends revising this requirement to ensure that an applicant can participate without violating the terms of already existing loan agreements. During the first round of funding, this requirement prevented many companies from participating.

Definition of a Remote Area

The high cost associated with providing service in the most remote parts of the United States is a significant roadblock to many small telecommunications firms. Such costs may be difficult for these companies to justify given the limited return. To address this concern, Congress appropriated funding to support the expansion of telecommunications service into rural America. Under the first round of funding, “remote” is defined as “an unserved, rural area 50 miles from the limits of a non-rural area.” Any rural area not meeting the definition of “remote” is eligible for at best, a 50 percent grant and 50 percent loan combination.

As written, the definition of “remote” and the BIP loan/grant cost structure limits the amount of grant funding available to rural providers. The Committee recommends that the rules established in a subsequent round of funding modify or remove the definition of “remote.”

The Committee appreciates the willingness of both agencies to address the concerns of small businesses. As NTIA and RUS move forward with the process, we ask that these recommendations be considered as a way to strengthen the program and support the needs of small businesses. Furthermore, the Committee requests that your agencies provide updated statistics on small business participation and once available, data on how much funding is awarded to small businesses.

Sincerely,

Nydia M. Velázquez (D-NY), Chairwoman
Dennis Moore (D-KS)
Heath Shuler (D-NC)
Kathy Dahlkemper (D-PA)
Ann Kirkpatrick (D-AZ)
Bobby Bright (D-AL)
Deborah Halvorson (D-IL)
Kurt Schrader (D-OR)
Yvette Clarke (D-NY)
Joe Sestak (D-PA)
Jason Altmire (D-PA)
Glenn Nye (D-VA)

Sam Graves (R-MO), Ranking Member
Roscoe Bartlett (R-MD)
Todd Akin (R-MO)
Steve King (R-IA)
Mary Fallin (R-OK)
Blaine Luetkemeyer (R-MO)
Aaron Schock (R-IL)
Glenn Thompson (R-PA)
Mike Coffman (R-CO)

# # #

SMALL BUSINESS OWNERS COULD BE MANDATED TO PAY EMPLOYEES H1N1 SICK LEAVE

Mon, 16 Nov 2009 05:00:00 GMT

SMALL BUSINESS OWNERS COULD BE MANDATED TO PAY EMPLOYEES H1N1 SICK LEAVE

WASHINGTON, DC – Today, Ranking Member of the House Small Business Committee Sam Graves (R-MO) and House Small Business Committee Member Glenn Thompson (R-PA) sent a letter to Chairman George Miller (D-CA) and Ranking Member John Kline (R-MN) of the Education and Labor Committee expressing their concerns about mandating paid leave for H1N1. The Education and Labor Committee will hold a hearing tomorrow to discuss H1N1, which will likely examine proposals such as H.R. 3991, the Emergency Influenza Containment Act.

The Emergency Influenza Containment Act would require employers with as few as 15 employees to provide five days of paid sick leave per 12 month period to all full or part time workers who are sent home by their employer or directed to stay home by their employer because of contagious illness, such as the H1N1 virus.

“At a time when our nation is facing a 10.2% unemployment rate, the last thing our small businesses need is another mandate. I hope Chairman Miller will take our concerns with this bill seriously and fight for our job creators,” said Ranking Member Graves.

Below is the full text of the letter:

Dear Chairman Miller and Ranking Member Kline:

We are writing to express concerns about legislation that would impose yet another new mandate on small businesses, our nation’s strongest job creators, in a very difficult economy.

We understand that the Committee on Education and Labor is expected to hold a hearing on H1N1, which we understand will likely examine proposals such as H.R. 3991, the Emergency Influenza Containment Act, on November 17, 2009. As you know, this legislation would require that employers with as few as 15 employees provide five days of paid sick leave per 12 month period to all full or part time employees who are sent home by their employer or directed to stay home by their employer because of a contagious illness, such as the H1N1 virus. There are civil and criminal penalties for a violation of this Act.

On September 9, 2009, the Committee on Small Business held a hearing on the impact of the H1N1 influenza virus on small firms. Small business owners want to keep their workplaces healthy during the flu season. Witnesses testified that through diligent preparedness and communication, they will work to keep their companies functioning and craft flexible work and employee schedules.

Our entrepreneurs are already saddled with innumerable taxes, mandates, regulations and paperwork burdens. They are being threatened with even higher taxes, additional mandates and the prospect of having to lay off workers if H.R. 2454, the American Clean Energy and Security Act, and H.R 3962, the Affordable Health Care for America Act, become law. All this while they struggle to generate 70% of the new jobs in the economic recovery.

As Members of the House Committee on Small Business, we are concerned that imposing this additional mandate on small businesses will destroy the very financial viability and flexibility that allows them to respond to the market. While small business owners certainly want to protect their employees and customers from exposure to illness, they should not have to put their businesses at financial risk by compensating employees for sick leave. In addition, an employer and employee should have the freedom to negotiate the benefit structure that works best for them. Some employers who currently offer paid vacation may not be able to afford to do so if they are required to offer paid H1N1 leave. This bill does not address employment situations such as teleworking, flextime, or companies that offer a single bank of leave combining vacation, sick and personal leave. It does not take into account specialized industries such as construction, which build leave policies around the timing and cycles of their businesses. A new mandate will almost certainly require compliance with additional regulations, certifications and paperwork, all of which disproportionately affect small firms, are costly and take time away from running the business and creating jobs.

At a time when our nation’s unemployment rate is 10.2 percent, we should be helping small businesses to increase employment. Imposing a mandate requiring paid sick leave is the wrong thing to do. Such a requirement could instead result in employers eliminating jobs or other employee benefits.

We urge you to consider the negative consequences of this legislation on small businesses in an unprecedented economic environment.

Sincerely,

/s

Rep. Sam Graves
Ranking Republican
Committee on Small Business

/s

Rep. Glenn Thompson
Member
Committee on Education and Labor
Committee on Small Business

###

To view the letter online click here.

SPEAKER PELOSI’S HEALTH CARE PASSES; SMALL BUSINESSES BRACE FOR HIGHER TAXES, MANDATES

Mon, 09 Nov 2009 05:00:00 GMT

SPEAKER PELOSI’S HEALTH CARE PASSES;
SMALL BUSINESSES BRACE FOR HIGHER TAXES, MANDATES

WASHINGTON, DC – This evening, H.R. 3962, Speaker Pelosi’s health care bill, passed by a vote of 220 to 215. According to the Joint Committee on Taxation, one-third of the total estimated cost of the bill will be paid for by increasing taxes on businesses.

Ranking Member Sam Graves (R-MO) of the House Small Business Committee offered an amendment to strike the employer mandate on businesses, yet the amendment was not made in order by the House Rules Committee for floor consideration. His remarks on the House floor today:

(Remarks as prepared)

Mr./Madam Speaker:

I rise today in opposition to this rule and the underlying bill.

Small businesses have struggled for years to obtain affordable health insurance for their employees.

However, rather than embrace solutions that enjoy the unanimous support of the small business community, this bill takes a government heavy approach that fails in its goal to make health insurance more affordable.

What is more unfortunate is that the bulk of funding for the health care bill is balanced on the backs of small business owners and entrepreneurs.

I offered an amendment to the Rules Committee to provide relief to these jobs creators by striking the mandate and tax on employers, but my fight fell on deaf ears.

The tax increases included in this bill are job killers, pure and simple.

At a time when the nation’s unemployment rate exceeds 10% for the first time in 26 years, the first goal of this body should be improving the economy and creating jobs.

Real solutions exist to the problem of affordable health care. This bill is not that solution. I urge all my colleagues to vote against this rule and the underlying bill.

###

UNEMPLOYMENT HITS HIGHEST RATE SINCE 1983; SMALL BUSINESS JOBS ON STEADY DECLINE

Fri, 06 Nov 2009 05:00:00 GMT

UNEMPLOYMENT HITS HIGHEST RATE SINCE 1983;
SMALL BUSINESS JOBS ON STEADY DECLINE

WASHINGTON, DC – The U.S. Department of Labor reported that unemployment in the U.S. rose to 10.2%, with 190,000 Americans losing their jobs in October. In addition to the Department of Labor’s data, Automatic Data Processing (ADP) released a report on Wednesday showing that businesses with less than 50 employees shed 75,000 private sector jobs in October.

Ranking Member Sam Graves (R-MO) of the House Small Business Committee commented:

“The unemployment rate released today is unacceptable. The White House and Speaker Pelosi have got to wake up and realize the situation our nation is in. The stimulus wasted taxpayer dollars, and tomorrow Congress will vote on a government-run health care plan that, according to the Joint Committee on Taxation, will raise taxes on small businesses by $150 billion and surely destroy more small business jobs. The Congressional Budget Office says the Republican health care plan will lower costs by 10 percent and decrease the deficit by $68 billion. It’s time to start listening to what Americans really need, quality health insurance that our country can afford.”

###

Ranking Member Sam Graves “H.R. 3962 Fails Small Businesses”

Fri, 06 Nov 2009 05:00:00 GMT

Ranking Member Sam Graves “H.R. 3962 Fails Small Businesses”
From: The Committee on Small Business-Minority Staff

Sent By: Angela.Landers@mail.house.gov
Bill: H.R. 3962
Date: 11/6/2009

Dear Colleague:

Below are some additional important considerations to take into account when deciding your vote for or against the anti-small business provisions contained in H.R. 3962.

5.5 Million Jobs Lost in the Worst Economy in Generations: Not only will H.R. 3962 increase health insurance premiums for small businesses and their workers, but it imposes more than $136 billion in taxes on businesses that can’t afford government approved insurance for their workers.

President Obama’s Chair of the Council of Economic Advisors found this employer mandate will kill more than 5.5 million jobs during a time of growing unemployment.

A Tax Burden Higher Than Fortune 500 Corporations: CBO and JTC found that up to 1/3 of the revenues raised by Speaker Pelosi’s surtax will come from business sources, including small businesses.

The surtax proposal in H.R. 3962 would impose a tax rate on small businesses that is 10% higher than the tax imposed on the largest Fortune 500 corporations (45% versus 35%).

Two New AMTs: The Democrat bill fails to index both the employer mandate and the surtax to inflation. As a result, more and more businesses will be subject to both the “pay-or-play” tax included in H.R. 3962 and the surtax on “high-income” earners. According to the nonpartisan Tax Policy Center, the number of individuals and small businesses subjected to the surtax will double between 2011 and 2019.

Ignores Proven Methods to Lower Health Care Costs and Premiums: Under this bill and its companion in the Senate, health insurance premiums for small businesses and individuals are expected to rise. This is not the health reform promised to the American people.

The Republican Substitute Is the Only Proposal That Would Lower Health Care Costs for Small Businesses: CBO found that under the Republican Substitute, the average premium paid for small business health insurance declines between 7% to 10%. It accomplishes this goal without $1.3 trillion in new spending; without imposing more than $750 billion in new taxes on individuals, small businesses and medical devices; and without raiding our seniors’ Medicare.

Sincerely,

Sam Graves
Ranking Member
House Committee on Small Business

Small Biz Straight Talk (11/6/09)

Fri, 06 Nov 2009 05:00:00 GMT

Friday, November 6, 2009

News from Ranking Member Sam Graves and Committee Republicans:
(Please send any member media activity to angela.landers@mail.house.gov)

• Rep. Mike Coffman (R-CO), Rep. Aaron Schock (R-IL), Rep. Mary Fallin (R-OK), Rep. Roscoe Bartlett (R-MD), Rep. Glenn Thompson (R-PA), Rep. Blaine Luetkemeyer (R-MO), Rep. Louie Gohmert (R-TX), and Rep. Lynn Westmoreland (R-GA) all spoke out on the House Floor on Speaker Pelosi’s Health Care bill. View the clips here.

• Ranking Member Sam Graves (R-MO): “Opposes Speaker Pelosi’s Government-Run Health Care Plan” Click here to listen to the radio actuality.

• Ranking Member Sam Graves’ (R-MO) on H.R. 3737 - Small Business Microlending Expansion Act of 2009

• Ranking Member Sam Graves (R-MO) “Unemployment Hits Highest Rate Since 1983; Small Business Jobs on Steady Decline”

• Ranking Member Sam Graves (R-MO) Dear Colleague Letter: “H.R. 3962 Fails Small Businesses”

• Rep. Louie Gohmert (R-TX) in the New York Times: “On the Hill, Protesters Chant ‘Kill the Bill’ ”

• Rep. Steve King (R-IA): “Beware tax hikes on small businesses”

• Rep. Blaine Luetkemeyer (R-MO): “Pelosi's Health Care Bill is Wrong Prescription for American Families”

• Rep. Vern Buchanan (R-FL): “Supports Health Bill that Reduces Costs Without Expanding Government”

• Rep. Glenn Thompson (R-PA): “Reads the Pelosi Health Care Bill”

• Rep. Mike Coffman (R-CO): “Congressman Coffman Participates in Health Reform Legislation Reading Room”

• Rep. Mary Fallin (R-OK): House Republicans Speak out on Speaker Pelosi’s Health Care Bill

• Rep. Mary Fallin (R-OK) on H.R. 1838 - To amend the Small Business Act to modify certain provisions relating to women's business centers

• Rep. Mary Fallin (R-OK) speaks out on the House Floor on health care and jobs

• Rep. Aaron Schock (R-IL) on H.R. 1845 Small Business Development Centers Modernization Act of 2009

Must-Reads from the Week:

• New York Post: Biggest loser of 'reform': small biz

• Reuters: Survey Finds 74 Percent of Small Business Owners Have No Plans to Increase Employee Headcount

• Wall Street Journal: For CIT Customers, An Uncertain Future Looms

Administration and the SBA:

• President Barack Obama met with his Presidential Economic Recovery Advisory Board (PERAB) on Monday to discuss the economy. President Obama was quoted as saying, “we've got a long way to go” towards reversing the increasing number of unemployed. Bracing for another disappointing jobs report on Friday, President Obama and his economic advisory team discussed how to grow exports, build infrastructure, and increase the number of green jobs in the U.S. as ways to stunt unemployment claims and put people back to work.

Review of House Activity:

• Sweeping health care legislation is expected to be considered by the House of Representatives this Saturday in a rare weekend session. The Rules Committee is scheduled to meet at 2:00pm today to establish the framework for the debate. Reports indicate that not one House Republican will support the legislation and that many conservative Democrats still have serious concerns over abortion services, illegal immigrants, taxes, and the overall cost. Some notable Democrat Committee Chairmen are expected to vote against the health care bill include Armed Service Chairman Ike Skelton (D-MO), Science and Technology Chairman Bart Gordon (D-TN), and Agriculture Chairman Collin Peterson (D-MN).

• On Friday, the House considered H.R. 2868, the Chemical Facility Anti-Terrorism Act. The legislation imposes new regulations on the security practices at chemical facilities. Republicans expressed concerns over how these new government mandates would impact an industry that has already been hit hard by the recession. Additionally, more regulations never result in lower costs, particularly for small businesses who often have higher regulation compliance costs than their larger counterparts.

• The House of Representatives passed legislation Wednesday that would move up the effective date of new requirements on credit card issuers. The legislation passed 331-92 and provides that H.R. 627, Credit Card Accountability Responsibility and Disclosure Act of 2009, which was signed into law in May, will be effective on December 1, 2009.

Legislation and Letters Circulating Around the House:
(If you would like to publicize your small business effort in Congress, please email Paul Sass at Paul.Sass@mail.house.gov)

• Rep. Granger Seeks Co-Sponsors on the Affordable Health Care Expansion Act (H.R. 879) - Rep. Granger is seeking co-sponsors for the Affordable Health Care Expansion Act. Nearly 52% of uninsured Americans say that they do not have health insurance because it is too expensive. That’s why Congresswoman Granger has introduced the Affordable Health Care Expansion Act, which provides individuals with a refundable, pre-payable tax credit toward the purchase of health insurance. The amounts of the credits are as follows: $1,000 per individual / $2,000 per married couple / $500 per child / $3,000 per family, PLUS 50 PERCENT OF ANY ADDITIONAL PREMIUMS ON TOP OF THESE AMOUNTS. If we are going to fix our health care system, we need to find a way to make sure that every single American has access to health care in a way that is affordable, and in a system the country can afford. If you would like to cosponsor the Affordable Health Care Expansion Act, please contact Theresa Vawter at 5-5071 or theresa.vawter@mail.house.gov.

Review of Senate Activity:

• On Wednesday, the Senate approved H.R. 3548 as amended, an extension of unemployment insurance and tax breaks for homebuyers and businesses. The total cost of the package is $24 billion. The Senate’s unemployment extension would allow workers in all 50 states to draw 14 weeks of federal unemployment benefits after exhausting their regular 26 weeks of state compensation. It would provide an additional six weeks in states with unemployment rates of at least 8.5 percent. Moreover, the Senate bill extends the homebuyer tax credit beyond its current November 30th expiration date and broadens its eligibility. The bill would extend the $8,000 credit for first-time homebuyers who enter sales contracts by April 30, 2010, and close within 60 days. The bill would also allow businesses to use net operating losses from 2008 and 2009 to offset profits from five previous years, up from two years. The measure passed by the House on Thursday by a vote of 403-12.

• The Senate passed the FY10 Commerce-Justice-Science appropriation measure Thursday night by a vote of 71-28. The legislation now goes to conference with the House. The Senate bill represents a 13 percent increase from FY09 levels, larger than what the President requested, and provides $64.9 billion in discretionary funding. Besides funding the Department of Commerce, Department of Justice, and the National Science Foundation, this legislation funds the Census Bureau, NASA, and makes substantial cuts to the State Criminal Alien Assistance Program.

House Small Business Committee hearing summary this week:

• On Wednesday, November 4, 2009, the House Committee on Small Business met in Room 2360 of the Rayburn Building for a hearing entitled, “Small Businesses and the Estate Tax: Identifying Reforms to Meet the Needs of Small Firms and Family Farmers.” Witnesses included Mr. Christy Spoa, Sr., President, Ellwood City Sav-A-Lot, Ellwood City, PA, representing the Food Marketing Institute; Ms. Meredith Mayes, Digital Solutions Manager, ColorCraft of Virginia, Sterling, Virginia, on behalf of the Printing Industries Association; Mr. Arthur Uhl, Uhl, Fitzsimmons & Jewett, San Antonio, Texas, representing the National Cattlemen’s Beef Association; and Ms. Terry Neese, Distinguished Fellow, National Center for Policy Analysis, Dallas, TX.

The hearing’s focus was the phase out of the federal estate tax. Current law, which will phase out completely for those who die in 2010 only, is scheduled to sunset on January 1, 2011. If Congress does not act, a top rate of 55% and an exemption of just $3 million would again take effect in 2011. Small businesses and family farms are especially vulnerable to the estate tax. They may have valuable assets – such as equipment or land – that are not liquid. If, after the death of a family member, the heirs must sell those assets to pay the estate tax, the business could be inoperable.

Ms. Mayes testified that her father has spent over $730,000 on estate tax planning to ensure that the company he built is passed on to his heirs. She said the business has printing presses worth $1 million each, which could not be sold if the business were to continue. Mr. Spoa said that he is forced to carry a life insurance policy to ensure that his family’s 91-year-old grocery is run by his children. Mr. Uhl emphasized that the estate tax often breaks up family farms and ranches, displacing family generational farms and expediting their sale for commercial purposes. Ms. Neese, the owner of a small business and farm that has been in her family for generations, noted that the estate tax reduces capital formation, productivity, wages and employment. Each of the witnesses supported certainty in the law. Ranking Member Graves said, “Death should not be a taxable event. The notion that the federal government is owed anything upon the death of a family member is outrageous.”

The House and Senate are expected to act on the estate tax before the end of the year. It is uncertain which legislative proposal will be considered.

View Release here.

Other Small Business News off the Hill:

• The NFIB released the top 15 reasons it opposes H.R. 3962, the “Affordable Health Care for America Act.”

• The US Chamber has a newly updated website focusing on small business.

Looking Forward:
House Small Business Committee hearing next week:

Congress is expected to be in recess next week; therefore, Ranking Member Sam Graves’ Small Biz Straight Talk will be released next on November 20.

###

DEATH TAX LOOMS OVER SMALL BUSINESSES

Wed, 04 Nov 2009 05:00:00 GMT

DEATH TAX LOOMS OVER SMALL BUSINESSES

WASHINGTON, DC – Members of the House Small Business Committee today heard testimony from leaders in the small business community on the estate tax, or death tax. Without action from Congress before 2011, family farms and entrepreneurs may find their companies at risk.

Current law, which would phase out the estate tax for those who die in 2010 only, is scheduled to sunset on January 1, 2011. If Congress does nothing, a top marginal estate tax rate of 55%, and an exemption of just $1 million, would again take effect in 2011. Often times, small businesses and firms are operated by families, and transferred from one generation to the next.

Committee Ranking Member Sam Graves (R-MO) said, “Death should not be a taxable event. The notion that the federal government is owed anything upon the death of a family member is outrageous.”

Terry Neese, testifying on behalf of the National Center for Policy Analysis and as a small business owner, said, “The uncertainty is one of the biggest problems. We need a permanent fix, and one that will help all small business owners. It will help us create more jobs and the burden that will be released would be a huge one for us.”

Ranking Member Graves has introduced legislation, H.R. 664, to make the 2001 and 2003 tax relief, including the estate tax phase out, permanent.

To view the hearing on YouTube click here