By Emily Maltby, Wall Street Journal

Reactions to President Barack Obama's State of the Union Address on Tuesday night were mixed in the small-business community.

Mr. Obama highlighted the important role small businesses play in the economy, singling out several small firms in particular, but didn't announce many proposals that are specific to them.

Broadly, Mr. Obama asked for a simplified tax code and fewer regulatory burdens. He referred to a provision in the health-care reform law—a rule that would force firms to file 1099 tax forms each time they buy more than $600 in goods or services, starting next year—as a "flaw" that needs to be corrected.

In separate statements, the National Small Business Association and the National Federation of Independent Business welcomed the president's assessment of the 1099 provision. Several bills have been introduced in Congress to repeal the measure, which the groups say would put too heavy of a paperwork burden on small businesses, although none have passed.

NSBA expressed worry, however, that another proposal that Mr. Obama mentioned, to reduce the corporate tax rate, wouldn't go far enough to help small firms because many report business income on their individual tax returns.

A critical NFIB had a more negative reaction to Mr. Obama's speech, saying its constituents were "left with the feeling that the president doesn't 'get' small business." NFIB was also disappointed that the President didn't suggest lowering individual taxes.

The group was pleased that Mr. Obama wants to reduce regulatory burdens but cautioned that "small businesses don't want lip service," said Chris Walters, NFIB's manager for legislative affairs. "We would have liked to see … a way to measure what the impact is, and if they are too heavy on small businesses, to make them go away. We didn't hear much detail about that."

Last year Mr. Obama unleashed a slew of ideas in his State of the Union address that directly impacted small firms, including an assortment of tax breaks and initiatives to boost access to capital. Congress ultimately passed several of those measures, including a hiring tax credit and September's Small Business Jobs Act, with a $30 billion lending fund.

This time around, there was no mention of the credit markets, which NSBA spokeswoman Molly Brogan believes was an oversight. "Lending still remains a huge issue for small businesses—more than a third are still unable to garner adequate financing for their business," she said. "Certainly things are a little better than they were six months ago, but we're a long way from where we need to be."