Sign up for email updates from SBAReceive helpful business tips and upcoming events in your area.


Privacy Policy
Log in to SBA.gov:
Enter your SBA.gov username.
Enter the password that accompanies your username.

Community Header Banner

Making Government Work Better for Entrepreneurs and Small Business Owners
Karen Mills
Post date: 01/13/2012 - 17:31

 

Today was an important day for America's small businesses.  President Obama asked Congress for the authority to reorganize and modernize government and he elevated my position as the SBA Administrator to Cabinet-level status.

These actions are a reflection of the importance he places on small business, economic growth, and job creation.

He asked Congress for the authority that Presidents from Hoover to Reagan have had to reorganize and modernize the federal government.  This authority lapsed in 1984, but, today, the federal government needs to be updated to ensure that it meets the demands of entrepreneurs and small business owners in the 21st century.

The President’s first proposal under this authority would be to create a unified department focused on economic growth and job creation, so that we can be more effective at helping businesses do what they do best – create jobs.

For the entrepreneurs and small business owners that SBA and other agencies serve, this is very good news.  A more integrated approach would ensure that small businesses would have access to all of the federal government’s programs in a more seamless, coordinated, and coherent way.

I’m honored to become a member of the President’s Cabinet, and I’ll continue to provide input to the President on how we can grow the economy and empower entrepreneurs and small business owners.  At the SBA, we will work to build on the accomplishments we’ve made over the past three years, such as the record $30.5 billion in SBA lending support we provided to over 60,000 small businesses last year.

It is important for Congress to act quickly to provide the President the authority he needs to make government work better and to help America’s businesses as they drive innovation and competitiveness, grow our economy, and create jobs.

$2.5-Billion Small Business Innovation Research (SBIR) Program for Small R&D Firms Extended 6 Years
Karen Mills
Post date: 01/03/2012 - 10:50

Last week, President Obama signed a bill reauthorizing the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs for another six years.  This long-term reauthorization is good news for the innovative small businesses that these programs support.  SBIR and STTR invest about $2.5 billion a year in America’s most promising small research and development companies.  Through SBIR and STTR, federal agencies with large R&D budgets provide competitive awards to help small businesses bring their best innovations from the drawing board to the marketplace.  SBIR and STTR operate in three phases, providing support for research, development, and commercialization.

 
Over the years, SBIR and STTR have played a role in the growth of firms like Qualcomm, Symantec, and others.  From 2002 to 2006, about 25% of R&D Magazine’s top 100 annual innovations came from companies that had received an SBIR grant at some point in their history.
 
Despite this track record, the future of SBIR and STTR had been subject to repeated short-term funding from Congress over the past ten years.  This new, long-term reauthorization provides certainty and stability for the small businesses that leverage these programs to create jobs.  In fact, it strengthens SBIR and STTR, proving more funding for small businesses to drive innovation, create jobs, and grow our economy.  It increases the amount these programs can award to small businesses, shortens the timeline for award decisions, and improves the focus on commercializing the innovative products that will change the world.
 
SBIR and STTR are a win-win.  Federal agencies are able to meet their R&D needs, while small businesses get the chance to bring their innovations into the marketplace.  The reauthorization ensures that small businesses will have access to much needed investments.  Money from these programs will go directly to small businesses to help them drive innovation, strengthen U.S. competitiveness, and create good jobs.  

What $40 Means to Small Business Owners, Employees, and Customers: The Importance of Extending the Payroll Tax Cut
Karen Mills
Post date: 12/22/2011 - 15:36

Yesterday, I spoke with Zalmi Duchman, the founder and owner of The Fresh Diet in Florida.  His business cooks and delivers freshly prepared, healthy meals directly to customer doors each day.   

He talked about how, if Congress doesn’t act, a tax increase will hurt both his hardworking employees and small businesses, like his, that rely on consumers to have money to buy their goods and services.  He said that when his employees open their paycheck and see that it got lower, they’ll turn to him and ask why.

That really struck me.  I’ve traveled around the country talking with small business owners, and I know he’s not alone.  Small business owners think of their employees as part of their own family.  They know that an extra $1,000 a year means a lot to working families. 

Over the past two days, over 30,000 Americans have told the White House what $40 less per paycheck would mean to them, including many of the more-than-half of Americans who own or work for a small business.

Let’s be clear about what is happening in Washington.  The President called for this tax cut extension about four months ago.  Senate and House leaders finally came to an agreement last week, and the Senate passed a bipartisan bill – with 89 of 100 Senators in support – to extend the tax cuts.  And now, after the Senate has left, House Republicans are backtracking, causing uncertainty among America’s 27 million small businesses as they put the final touches on their business plans for 2012.

Next month, the Administration will continue to work with Congress to extend the tax cut through the rest of 2012.  But right now, the House needs to pass the two-month extension and provide a stable environment for small businesses.

I encourage you to tell what $40 means to you at www.whitehouse.gov/40dollars or tweet @WhiteHouse with the hashtag #40dollars.   That’s money that Americans could otherwise be spending on Main Street, giving a boost to our small businesses which create two of every three new jobs.

As we move into 2012, small business owners need the wind at their back, not in their face.  It’s unacceptable that Congress hasn’t acted on this to give them the certainty they need right now. 

America’s small businesses and their employees deserve better.

Helping Job Creators Get the Capital They Need
Karen Mills
Post date: 12/08/2011 - 12:51

This article is co-authored by Gene Sperling, Director of the National Economic Council, and cross-posted on the White House blog.

Today, we can do more to increase the amount of capital that flows into the hands of entrepreneurs at every stage in the growth of their companies. 
 
Helping these businesses grow is a top priority for the Obama Administration, as we know that small businesses create most of net new jobs that are added to the economy each year.  We have an economic imperative to make sure we support these firms through creating an environment where they have access to capital markets to help facilitate growth at every stage.
 
Over the past three years, we have made great progress in helping small businesses.  The President has signed into law 17 tax cuts for small businesses, from greater expensing provisions to the President’s signature call to eliminate capital gains taxes on certain investments in small businesses as well as two new small business lending funds.  SBA loans also had an all-time record year. Right now, the President continues to call on Congress to cut payroll taxes in half for nearly 6 million small businesses, providing even more incentives for them to hire and grow. 
 
Startups and high-growth firms – the biggest job creators – have different capital needs than other small businesses.  That’s why almost a year ago, we launched Startup America, a White House initiative to create the best possible climate for high-growth entrepreneurs across the country. Today, at the Startup America Partnership board meeting hosted at the White House, we are announcing two important initiatives that show how we are working to specifically address the needs of startup businesses.  And the President is calling on Congress to do more.
 
First, today we’re announcing that the Administration has taken action to create a new Early Stage Innovation Fund through SBA’s existing Small Business Investment Company (SBIC) program.  We’re making $1 billion available over the next 5 years to match private capital in funds that invest in early-stage, high growth-potential startup companies. SBA’s existing SBIC program just had a record year of helping over 1,000 businesses get $2.6 billion in capital, and created new vehicles like SBA’s first Impact Investment Fund, which recently launched in Michigan.
 
At the same time, the independent Startup America Partnership has mobilized commitments from more than 50 private-sector partners to deliver over $1 billion in value – from free software to free consulting and legal services – to 100,000 startups over the next three years.
 
And there’s more action we can take.  In September, when the President announced his American Jobs Act, he called on Congress to take specific steps to help small businesses raise the funds they need to innovate and grow.  Consistent with this call to action, the President is urging Congress to work on a bipartisan basis to develop these ideas by passing legislation related to:
  • Crowdfunding:  Nonprofits have already harnessed the power of online fundraising and social media to help meet their mission.  In a similar way, we can create an appropriate regulatory framework for small businesses and startups to raise the capital they need from many small-dollar investors, while ensuring investor protections.
  • Regulation A “Mini-Offerings”:  For small businesses seeking to raise less than $5 million, there is an existing exemption from certain SEC requirements.  But very few businesses are taking advantage of this “Regulation A” exemption today.  The President has called for raising that limit to up to $50 million, making it easier for small companies to raise the capital they need to grow.
  • Creating an On-Ramp for Emerging Growth Companies:  For emerging growth companies, the vast majority of new jobs are typically created after they “go public.”  Yet from 1995 to 2010, listings on U.S. exchanges shrank from 8,000 to 5,000 while listings on non-U.S. exchanges grew from 23,000 to 40,000.  In March, after we held an Access to Capital conference, entrepreneurs and other private sector stakeholders formed an “IPO task force” and reported back to the Treasury Department with recommendations to help scale regulations for emerging growth companies while providing strong investor protections. Some of these ideas are being explored by Congress and the Administration right now.
While moving quickly to pass these initiatives, Congress must develop these proposals in ways that will continue to protect American investors. Over the past few months, we have begun to make real progress.  Members on both sides of the aisle have supported legislation consistent with the ideas that the President called for.  Legislation has passed the House of Representatives with overwhelming bipartisan support. And last week, these issues were highlighted at a Senate Banking Committee hearing where Chairman Tim Johnson noted “This is an issue where I believe there is real potential for bipartisan cooperation.” 
 
Overall, efforts like these could help improve liquidity for entrepreneurs, and help jump-start the innovative American companies of tomorrow.  At the same time, we need to ensure that as we develop these initiatives we are taking necessary measures to ensure that investors are protected – and the Administration will continue working with Congress to achieve this outcome.
 
The President, both of us, and leaders across the private sector understand that “one size doesn’t fit all” when it comes to helping small businesses, especially startups and high-growth firms.  Let’s make sure they can get access to the kinds of capital they need to grow and create the jobs we need now. 
 
Karen Mills is the SBA Administrator and Gene Sperling is the Director of the National Economic Council
Support Your Local Businesses on “Small Business Saturday”
Karen Mills
Post date: 11/23/2011 - 11:36

You’ve heard of Black Friday.  And Cyber Monday.  But did you know that this Saturday is Small Business Saturday?  We’re encouraging everyone to visit a small business to do some holiday shopping this Saturday.

As President Obama said in a message out to all Small Business Saturday supporters:

From the mom-and-pop storefront shops that anchor Main Street to the high-tech startups that keep America on the cutting edge, small businesses are the backbone of our economy and the cornerstones of our Nation’s promise.  These businesses create two out of every three new jobs in America, helping spur economic development in communities across our country and giving millions of families and individuals the opportunity to achieve the American dream.  Through events such as Small Business Saturday, we keep our local economies strong and help maintain an American economy that can compete and win in the 21st century.

When you walk down Main Street in any city in America, you can often find great restaurants, service providers, and handcrafted, Made-in-America products from local shops.  It’s wonderful to simply go in and visit with local business owners and hear what’s happening in the community. 

There are many people in my life that appreciate a unique gift from a local business, like the blueberry jam I pick up at the Farmers’ Market in my hometown of Brunswick, Maine. This Saturday, I’m planning to go back to that market early in the morning, and then I will travel to Roslindale, Massachusetts, to celebrate Small Business Saturday with Boston Mayor Tom Menino.  Many other top-level officials throughout the Administration are also “shopping small” this Saturday.

Everyone knows that your dollar goes a long way at when you buy a product or service from a small business.  That money goes right back into the local economy.  And that’s important, because half of working Americans either own or work for a small business, and small businesses create two out of every three new jobs.

It’s great to find the perfect gift from a small business.  Often, when you carry it to the counter, you can see the business owner’s eyes light up.  They tell a story about how that gift was made.  Or where it came from.  Or how it’s a one-of-a-kind.  And the gift immediately becomes even more meaningful and special.  Moments like that are what makes the holidays magical.

In addition to our support for Small Business Saturday, the SBA is working hard to make sure even more small businesses can keep growing.  For example, we had an all-time record for SBA loans this year, with over $30 billion in lending support that helped about 60,000 small businesses buy a new building, get more equipment, or hire more workers.  And, right now, the President is calling on Congress to cut in half the payroll taxes for small businesses as part of the American Jobs Act.

Let’s all do our part to support America’s small businesses as they continue to strengthen our economy and create jobs.  Happy Thanksgiving, Happy Small Business Saturday, and Happy Holidays. 

Ed. Note - This blog is cross posted on the White House Blog.