Legislative Updates
DC Council Passes Legislation to Bolster Small Businesses in Tough Economic Times

March 5, 2010

This week, the DC Council passed legislation that will help small businesses survive in tough economic times.  The “Small Business Stabilization and Job Creation Strategy Act,” authored by At-Large Councilmember Kwame R. Brown, tasks the Department of Small and Local Business Development (DSLBD) with providing stabilization services to small businesses and creating a mentoring program, amongst other initiatives.

“The laws we’re passing now will have a positive impact on small businesses and employment for years to come,” said Councilmember Brown.  “Residents are counting on us to make smart, tough decisions and to take a comprehensive approach to solving our economic challenges.  We’re facing this head on.”

According to the Small Business Administration, small businesses account for “99.7% of all employer firms” and have “generated 64% of net new jobs over the past 15 years.”  That was one of the reasons Councilmember Brown authored the “Small Business Stabilization and Job Creation Strategy Act.”  He believes that small business growth and job training for adults are keys to long-term economic stability.

The legislation will help fuel small business growth and create jobs by:

  • Providing specialized programs to assist Certified Business Enterprises (CBEs) in securing capital and repairing damaged credit;
  • Establishing informational seminars on securing credit and loans;
  • Providing one-on-one small business counseling with potential borrowers to improve financial presentations to lenders;
  • Increasing access to traditional and non-traditional financing sources; and
  • Helping build the green economy by preparing businesses to access new markets.

In addition, on Friday, March 12th, the Committee on Finance and Revenue chaired by Councilmember Jack Evans will hold a public hearing on the “DC Job Growth Incentive Act of 2010.” Councilmember Brown introduced the legislation to address the District’s unemployment crisis.  During the month of December, the District’s unemployment rate rose to 12.1%, the highest on record.  The legislation grants a business franchise tax credit to businesses that create at least 10 new jobs in the District.  To qualify for the credit, businesses must retain the positions for at least one year.  Businesses that create jobs in any industry are eligible for the credit.

Here are some more of Councilmember Brown’s small business and job initiatives, which are now law:

  • Secured 100 New Jobs for DC Residents: An amendment to the agreement to attract Co-Star to DC, which requires 100 new jobs for DC residents before the company receives any incentives.  Learn more.
  • Get DC Residents Training for Jobs Now Act: Provided $1.1 million for adult job training and three existing District facilities.  Training started last fall.  Learn more.
  • Created the Workforce Competitiveness Taskforce: This month, the taskforce released a major report on how to create a skilled labor force called “Closing the Gaps to Build the Future.”  Learn more.
  • The Stimulus Accountability Act: Required the mayor to post all jobs created by District stimulus dollars online.  Learn more.
  • The DSLBD Amendment Act of 2009: Redefines how the District grows small businesses while putting teeth in the Certified Business Enterprise laws.  Learn more.

For more information or to interview Councilmember Brown, please contact Press Secretary Michael Price at 202-445-4510 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
 
March 23, 2010 - President Obama signed the health care reform bill into law on the afternoon of Tuesday, March 23, 2010: a historic day.  Since the President took office in January of 2009, and through days and evenings of debates, on Sunday, March 21, 2010, the House of Representatives voted to pass the Senate's health care bill with a vote of 219-212. These are specific implicatons of the bill for business owners:


Healthcare Reform Bill


Health Insurance Exchanges:

  • The uninsured and self-employed would be able to purchase insurance through state-based exchanges with subsidies available to individuals and families with income between the 133 percent and 400 percent of poverty level.
  • Separate exchanges would be created for small businesses to purchase coverage -- effective 2014.
  • Funding available to states to establish exchanges within one year of enactment and until January 1, 2015.
Paying for the Plan:
  • Medicare Payroll tax on investment income -- Starting in 2012, the Medicare Payroll Tax will be expanded to include unearned income. That will be a 3.8 percent tax on investment income for families making more than $250,000 per year ($200,000 for individuals).
  • Excise Tax -- Beginning in 2018, insurance companies will pay a 40 percent excise tax on so-called "Cadillac" high-end insurance plans worth over $27,500 for families ($10,200 for individuals). Dental and vision plans are exempt and will not be counted in the total cost of a family's plan.
  • Tanning Tax -- 10 percent excise tax on indoor tanning services.

Individual Mandate:

  • In 2014, everyone must purchase health insurance or face a $695 annual fine. There are some exceptions for low-income people.

Employer Mandate:

  • Technically, there is no employer mandate. Employers with more than 50 employees must provide health insurance or pay a fine of $2000 per worker each year if any worker receives federal subsidies to purchase health insurance. Fines applied to entire number of employees minus some allowances.

Immigration:

  • Illegal immigrants will not be allowed to buy health insurance in the exchanges -- even if they pay completely with their own money.
 

Winter Legislative Updates:

 


By Carolou Goodridge
Government Affairs
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March 2010 - After a slight hiatus, we’re back with legislative updates that are important to you. Meanwhile, Congress has been hard at work…we promise. The operative word here is “work,” as in Jobs, Jobs, Jobs!

More specifically, Congress has passed the Jobs for Main Street Act of 2010 or the “Jobs Bill,” which among many advances, directs $354 million, fully offset, for the Small Business Administration (SBA) to continue two temporary loan guarantee authorities through the end of fiscal year 2010 to make loans more attractive to borrowers and lenders and to free up capital. Small businesses represent a major engine for the U.S. economy, but many small business owners have had a difficult time securing needed loans in these tight economic times. Read Chairman of the House Education and Labor Committee, Rep. George Miller’s statement on the passage of the Jobs Bill here.

Appropriations Update:

The Honorable Hilda Solis, Secretary of Labor Testifies before the House Labor HHS Appropriations Subcommittee: http://appropriations.house.gov/Witness_testimony/LHHS/Hilda_Solis_05_12_09.pdf

House Labor HHS Appropriations Subcommittee FY 2010 Bill Summary: http://appropriations.house.gov/pdf/LH_FY10_FC_Summary_as_amended_07-17-09.pdf

House Labor HHS Appropriations Subcommittee Earmarks: http://appropriations.house.gov/pdf/2010_LH_Sub_Disclosure.pdf

House Financial Services Appropriations Subcommittee FY 2010 Bill Summary: http://appropriations.house.gov/pdf/FY10_FS_Conference_Summary.pdf


Hearings, Statements, and Press Releases:

House Budget Committee releases President Obama’s FY2011 U.S. Budget: http://budget.house.gov/pres_budgets/fy2011/budgetfy2011.pdf

Landrieu, Snowe Letter to President Requests Support for Small Business Proposals

Administration Announces New $30 Billion Small Business Lending Fund: http://sbc.senate.gov/public/index.cfm?a=Files.Serve&File_id=f8172172-953d-4d95-ab20-801eb810722b

Velázquez Praises President’s Agenda Helping Small Businesses: http://www.house.gov/smbiz/PressReleases/2010/pr-1-27-10-SOTU.html

Velázquez on Legislation Extending Expiring SBA Programs : http://www.house.gov/smbiz/PressReleases/2009/pr-9-23-09-SBA-extension.html

House Approves Legislation Expanding Small Business Access to Capital: http://www.house.gov/smbiz/PressReleases/2009/pr-10-29-09-hr3854.html

Velázquez Comments on Small Business Administration Budget for Fiscal Year 2011: http://www.house.gov/smbiz/PressReleases/2010/pr-2-2-10-SBA-budget.html

“Oversight of the Small Business Administration and its Programs” http://www.house.gov/smbiz/Statements/2009/SBA-SDVOSB-oversight.html

““Tax Extenders: How to Ensure Small Business Growth and Continue Economic Recovery” http://www.house.gov/smbiz/democrats/Statements/2009/expiring-tax-incentives.html

“Condition of Small Business and Commercial Real Estate Lending in Local Markets” http://www.house.gov/smbiz/democrats/Statements/2010/small-business-lending.html

Senators Introduce Legislation to Improve HUBZone Program by Implementing GAO Recommendations

Landrieu, Snowe Introduce Bill to Boost Small Business Contracts

Snowe urges SBA to start contracting program for women

Working to level the playing field for women-owned businesses

The Subcommittee on Commerce, Trade, and Consumer Protection held a hearing titled, ‘Stimulating the Economy through Trade: Examining the Role of Export Promotion.’ The hearing examined the role of exports in U.S. economic growth, the impact of export promotion programs sponsored by the federal government, and the assistance available to help U.S. businesses expand markets for U.S. products. Read hearing testimonies here.

Statement for Introduction of the Small Business Trade Representation Act of 2009

Statement for Introduction of the Small Business Export Enhancement and International Trade Act of 2009
 
Legislative Updates
Written by Carolou Goodridge   

SUMMER 2009 LEGISLATIVE UPDATES

 

District of Columbia City Council Legislative Updates:

Department of Small and Local Business Development Amendment Act of 2009

 

Small Business Loan Authority Act of 2009

 

Stimulus Accountability Act of 2009

 

Senate Committee Hearing Updates:

Committee on Banking Housing and Urban Affairs

The U.S. as Global Competitor: What are the Elements of a National Manufacturing Strategy?

View webcast and written testimonies here.

Committee on Small Business Administration

Keeping America Competitive: Federal Programs that Promote Small Business Exporting

View hearing details and written testimonies here.

Markup of SBA Reauthorization Bills

Read Chairwoman Mary Landrieu's Opening Statement here.

 

 

House Committee Updates:

Labor, Health and Human Services, and Education Appropriations Bill Summary Passed by Full Committee

Labor, Health and Human Services, and Education Program Cuts and Terminations

Summary and Analysis of the President's Detailed FY2010 Budget Request

 

 

House Subcommittee Hearings Update:

The Subcommittee on Communications, Technology and the Internet and the Subcommittee on Commerce, Trade, and Consumer Protection are holding a joint hearing titled, "Behavioral Advertising:  Industry Practices and Consumers' Expectations" on Thursday, June 18, 2009, in 2123 Rayburn House Office Building.  The hearing will examine the potential privacy implications of behavioral advertising. Read hearing details here.

The Subcommittee on Commerce, Trade, and Consumer Protection held a hearing entitled "The Proposed Consumer Financial Protection Agency:  Implications for Consumers and FTC" on Wednesday, July 8, 2009, in room 2123 Rayburn House Office Building.  The hearing examined the Administration's proposal to create a new agency responsible for consumer protection with regard to financial products and services. Read hearing details here.

The Subcommittee on Commerce, Trade, and Consumer Protection held a hearing titled, "It's Too Easy Being Green:  Defining Fair Green Marketing Practices" on Tuesday June 9, 2009, in 2123 Rayburn House Office Building.  The hearing examined "green" marketing claims, their interpretation by consumers, and the role of the Federal Trade Commission (FTC) in establishing guidelines for fair and effective green marketing practices. Read hearing details here.

The Subcommittee on Commerce, Trade, and Consumer Protection held a hearing titled, "Examining the Status of U.S. Trade with Cuba and its Impact on Economic Growth" on Monday, April 27, 2009, in 2123 Rayburn House Office Building.  The hearing examined the economic embargo against Cuba in the context of the global financial downturn and explore the potential economic impact of normalizing U.S.-Cuba trade relations. Read hearing details here.

The Subcommittee on Commerce, Trade, and Consumer Protection held a hearing titled, 'Stimulating the Economy through Trade: Examining the Role of Export Promotion' at 10:00 a.m. on Tuesday, March 17, 2009, in 2322 Rayburn House Office Building. The hearing examined the role of exports in U.S. economic growth, the impact of export promotion programs sponsored by the federal government, and the assistance available to help U.S. businesses expand markets for U.S. products. Read hearing details here.

Economic Recovery: Tax Stimulus Items that Benefitted Small Business with a Look Ahead
The Committee analyzed how the tax provisions contained in the stimulus package have helped small businesses and how future policies can further meet their needs. The Committee heard testimony from a wide array of industries including those in manufacturing and retail. Read Chairwoman Nydia Velazquez's Opening Remarks here: http://www.house.gov/smbiz/Statements/2009/tax-stimulus-items.html

 

House Small Business Administration Statements & Press Releases:

Velázquez Works to Bring Relief to Local Businesses

Addressing Small Business Needs Key to Health Care Reform

Smuggled Textiles, Clothing Products Undercutting U.S. Producers, Costing Jobs

Committee Examines Legislation Updating Small Business Research Programs

Velázquez Hails Arrival of New Recovery Loans

House Panel Passes Legislation Updating Small Business Research Programs

In Midst of Recession, Small Firms Struggle to Find Credit

House Panel Examines Legislation to Update Small Business Research Programs

House Approves Job Creating Small Business Research Bill

House Passes Funding Boost for Small Business Administration

Statement on Legislative Initiatives to Strengthen and Modernize the SBIR and STTR Programs

Statement on the Economic Recovery: Tax Stimulus Items that Benefitted Small Businesses with a Look Ahead

 

MAY

Congressional Legislative Updates

On Wednesday, May 13, 2009, the House Committee on Small Business marked-up "The Job Creation through Entrepreneurship Act of 2009" (HR 2352). It would be the first major revision of entrepreneurial development programs in ten years, if enacted. Entrepreneurial development programs provide established small business owners and prospective entrepreneurs with business counseling and technical guidance to assist them in their business development. Chairwoman of the House Small Business Committee, Nydia Velazquez, expressed the importance of expanding resources available to small businesses that will "spur job creation and economic growth."Given these uncertain times, access to technical assistance is especially critical. In some cases, it can mean the difference between a business' success, and its failure," says Velazquez. 

Reports and Releases

House Committee on Small Business Report: Small Business Economic Outlook: Assesing Current Conditions and Challenges to Growth.    

Velázquez Calls for More Small Business Input in Regulatory Reform

Easing Small Business Tax Burden Would Spur Jobs

Statement of Senator John F. Kerry on Business Start-up Hurdles in Underserved Communities: Access to Venture Capital and Entrepreneurship Training

APRIL

GWFCC on Capitol Hill

On Wednesday, April 15, 2009, GWFCC president Christine Brooks-Cropper and government affairs associate Carolou Goodridge met with Representative Charles Rangel's office to discuss creating a national Fashion Business Caucus on Capitol Hill and establishing Fashion Business Incubators across the country. We will continue to work with his office in these efforts as well as secure support from other Members of Congress. We will be sure to update you on our progress.

Congressional Legislative Updates

H.R. 1807 - Educating Entrepreneurs through Today's Technology Act of 2009- To provide distance learning to potential and existing entrepreneurs.

H.R. 1838 - The Women's Business Centers Improvements Act of 2009- To amend the Small Business Act to modify certain provisions relating to women's business centers.

H.R. 1842 - The Expanding Entrepreneurship Act of 2009- To amend the Small Business Act to improve the Small Business Administration's entrepreneurial development programs.

H.R. 1845 - The Small Business Development Centers Modernization Act of 2009- To amend the Small Business Act to modernize Small Business Development Centers.

HR 2196: The Design Piracy Prohibition Act (DPPA) is bipartisan legislation which provides copyright protections and creates a  three-year term of protection for fashion designs. Every design that has been available for sale prior to enactment will be considered by the DPPA to be in the public domain; only unique and original designs from then on would be protected from fashion piracy. Read the Council of Fashion Designers of America (CFDA) statement of the bill here.

To keep up with the latest in co-sponsorship and legislative action on HR 2196, check here periodically.

DC City Council Legislation and Agenda

  • Small Business Loan Authority Act of 2009: To authorize the loan of money to, and equity investment in, the Neighborhood Economic Development Corporation (NEDCO) by the District. NEDCO was established for the purpose of stimulating economic development in District neighborhoods, creating additional employment opportunities for residents of the District, and providing financial and technical assistance to small and minority business enterprises within the District.
  • Small Business Streetscape Construction Real Property Tax Deferral Emergency Act of 2009: To declare the existence of an emergency with respect to the need to grant tax deferral relief to small businesses located along specific streetscape corridors undergoing active construction. This tax deferral will not reduce the amount of taxes owed the city but will simply spread payment out and allow maximum cash flow for affected small businesses.

Trade and Commerce Updates