Friday, June 12, 2009

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

• Ranking Member Graves introduces bill to Help Small Business Innovators
• Ranking Member Graves  American Clean Energy and Security Act Testimony Heard

Must-Reads from the Week:
• The Dallas Morning News: Stimulus Funds Fuel SBA Loan Volume

• CNN Money: Government Readies Emergency Small Biz Loans

Administration and the SBA:
• On Monday, President Barack Obama and Vice President Joe Biden announced plans to accelerate the roll out of the economic stimulus package.  This comes shortly after the Department of Labor released unemployment numbers topping 9.4%.  New opinion polls show that Mr. Obama is losing confidence among Americans for his handling of the economy.  Four months after President Obama signed the $787 billion stimulus package into law, the economy continues to shed jobs. “When they passed this spending plan, Democrats said it would immediately create jobs, yet nearly four months later unemployment has continued to climb and none of their rosy predictions have come true,” House Minority Leader John Boehner (R-Ohio) said. “These policies are harming middle-class families when they can least afford it, and adding to the massive debt we’re passing on to future generations.”

Review of House Activity:
• On Tuesday, the House passed H.R. 2751, the Consumer Assistance to Recycle and Save (CARS) Act (aka Cash for Clunkers).  This legislation establishes a new one year program that will provide individuals with up to $4,500 to purchase newer fuel efficient vehicles if they trade in older, less fuel efficient ones.  The bill authorizes $4 billion over one year for the new program.  This bill passed 298-119-2.

• On Wednesday, the House passed H.R. 2410, the Foreign Relations Authorization Act through 2011.  The bill authorizes funds for the State Department and other diplomatic agencies well above the levels previous years.  Conservatives raised concerns regarding several social issues addressed in this legislation.   H.R. 2410 passed by a vote of 235-187.

• On Thursday, the House passed H.R. 1886, the Pakistan Enduring Assistance and Cooperation Enhancement Act of 2009.  The bill provides $1.5 billion in U.S. economic assistance to Pakistan annually.  Republicans expressed concerns with some conditions that were attached to the bill that could hamper the ability of Pakistani generals to carry out their duties effectively.  This legislation passed 234-185. 

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

• Rep. Thompson (R-PA) Seeks cosponsors for H.R. 2203, the Telephone Excise Tax Repeal Act of 2009- The Telephone Excise Tax is a deceptive tax on local telephone service.  Many Americans would be surprised to learn that they are paying a three percent federal excise tax on local phone service. As an excise tax, there is no direct payment made to the government, the tax is collected by the phone companies and remitted to the Treasury.  The tax is antiquated, a remnant of an earlier era and was originally used to finance the Spanish American War.  Cellular phone and long distance landline telephone services were exempted from the tax in 2006. This regressive tax often affects those least able to afford it - lower income, disabled or older individuals and families who rely solely on landlines for communication.  As we continue to weather this current economic recession, now is the time for us to do the right thing.  With the elimination of the telephone excise tax, we can provide real tax relief to American families.  For more information or to co-sponsor H.R. 2203, please email Matthew Brennan in Rep. Thompson’s office.

• Republican Leadership seeks cosponsors for the American Energy Act- The American Energy Act will increase production of American-made energy in an environmentally sound manner and promote new, clean and renewable sources of energy such as nuclear, clean-coal-technology, wind and solar energy.  The legislation encourages greater efficiency and conservation by extending tax incentives for energy efficiency and rewarding development of conservation techniques and new energy sources.  Finally, the American Energy Act cuts red tape and reduces frivolous litigation that hinders energy production.  Please email Adam Hepburn to list your boss as a co-sponsor.

• Rep. Shadegg (R-AZ) seeks cosponsors for Letter to President Obama Asking him to Reject Proposals that Tax Employer-Provided Health Benefits- Approximately 180 million Americans receive health coverage through their employer.  More than 8 in 10 Americans are happy with their current health care plan.  Despite these facts, Congress is strongly considering proposals to tax employer-sponsored coverage to pay for a government takeover of health care.  My letter asks the President to affirm his campaign promise to let Americans keep their health care plan if they like it, and asks him to reject proposals to tax employer-sponsored coverage in the midst of a recession.  The deadline for signing this letter is COB Monday.  For more information on this letter, please contact Paul Edattel at x5-3361 or Paul.Edattel@mail.house.gov.

Review of Senate Activity:

• On Thursday, the Senate passed H.R. 1256, the Family Smoking Prevention and Tobacco Control Act with an amendment by a vote of 79-17.  The legislation would allow the FDA to regulate nicotine levels, bar flavor additives in tobacco products, and require tough new warning labels on cigarette packages and advertising.  The measure as amended passed the House today and President Obama is expected to sign the bill into law shortly.

• This week, the Senate Committee on Small Business and Entrepreneurship conducted a roundtable on investing in small businesses.  Participants included representatives from the U.S. Small Business Administration, Chamber of Commerce, American Legion, Association of Women’s Business Centers and Association of Small Business Development Centers.  The Senate Committee also followed the lead of the House Small Business Committee by introducing legislation to improve entrepreneurial development programs within the SBA and legislation reauthorizing the Small Business Innovative Research (SBIR) and Small Business Technology Transfer (STTR) programs, which are set to expire later this year.  In addition, the Senate Committee Chairwoman Mary Landrieu introduced a bill aimed at improving small businesses trade opportunities.  To read more about legislation recently introduce in the Senate Small business and Entrepreneurship Committee visit http://sbc.senate.gov/.      

House Small Business Committee hearing summary this week:
• This week, the House Committee on Small Business held a hearing entitled, “Laying the Groundwork for Economic Recovery: Expanding Small Business Access to Capital.”  The witnesses on the first panel were: Cynthia Blankenship, Vice Chairman & COO, Bank of the West, Grapevine, TX for the Independent Community Bankers of America; Jean Wojtowicz, Founder, Cambridge Capital Management Corp., Indianapolis, IN for the National Association of Development Companies; Roger Heacock, President & COO, Black Hills Federal Credit Union, Rapid City, SD for the Credit Union National Association; Hollis Huels, Senior Vice President, Capital for Business, St. Louis, MO for the National Association of Small Business Investment Companies; and Michael McGannon, Senior Vice President & Chief Lending Officer, Country Club Bank, Kansas City, MO for the American Bankers Association.  The witnesses for the second panel were: Douglas A. Doerfler, President & CEO, MaxCyte, Inc., Gaithersburg, MD for the Biotechnology Industry Organization; Lawrence Cohen, CFE, President, Doc & Associates, Ltd., Tomball, TX for the International Franchise Association; Tim Watters, President & CEO, Hoffman Equipment, Piscataway, NJ for the Associated Equipment Distributors; and Dave Bofill, President Dave Bofill Marine, Inc., Hamptons Bays, NY for the National Marine Manufacturers Association. 

The hearing focused on the issues arising from the operation of programs overseen by the Small Business Administration (SBA) to provide the lifeblood of American business – capital.  The first panel described the operation of three major SBA programs – the 7(a) business guaranteed loan program; the certified development company or “504” loan program; and the small business investment company program.  All the witnesses on the first panel said that they are ready to make more capital available to small businesses but regulatory barriers and obstacles at the SBA must be removed.  The second panel, consisting of small business owners, noted that they all were having difficulty in obtaining capital for their businesses.  Some needed patient equity capital so they could develop products while others needed more working capital to purchase inventory.  The hearing represented the opening of the Committee efforts to ensure that gaps in the commercial capital markets are filled so small businesses can obtain sufficient equity and debt capital to expand and assist in short and long-term economic recovery. 

Other Small Business off the Hill:

• Equifax released data showing small business bankruptcy filings increased in March.

• The Employee Benefit Research Institute released a Health Confidence Survey.

• The NFIB released its June report on Small Business Economic Trends

Looking Forward:
House Small Business Committee hearings next week:
• Full Committee Hearing, June 17, 2009, 10:00 am entitled, “Legislative Initiatives to
      Strengthen and Modernize the SBIR and STTR programs.” 2360 Rayburn House Office Building