Snowe Stresses Importance of Programs to Help Small Businesses

WASHINGTON, D.C. – The Senate Committee on Small Business and Entrepreneurship unanimously approved two pieces of legislation today critical to small businesses throughout the country and Maine.

“Today, we turn our focus to helping the future entrepreneurs and small business owners,” said Senator Olympia J. Snowe (R-Maine), Ranking Member of the Committee. “These programs provide investment dollars and management assistance to small businesses, particularly during their growth stages. They also offer counseling, assistance, and educational programs to 1.2 million prospective and existing business owners. Household names like FedEx and Apple Computers received this funding before they became well-known, and I hope the SBICs will continue to invest in the successful companies in the future.”

The first bill, the Small Business Venture Capital Act of 2007, reauthorizes two Small Business Administration programs critical to small business owners: the Small Business Investment Company (SBIC) and New Markets Venture Capital (NMVC).

The SBIC and NMVC programs have successfully leveraged private investment with additional funds supported by SBA guarantees. Each year, this financing allows small businesses to create or retain thousands of jobs. For instance, during the 2006 Fiscal year, the SBIC program invested nearly $2.9 billion in 2,121 small businesses. Since its beginning in 1958, the SBIC program has provided approximately $48 billion of long-term debt and equity capital to more than 100,000 small businesses. This bill not only reauthorizes the SBIC program, but it also makes good on past funding commitments in the Participating Securities program. This will ensure that Participating Securities SBICs will have sufficient leverage to meet their portfolio’s investment plan.

“If we don’t reauthorize these programs this year, entrepreneurs will not have sufficient access to investment dollars to start new businesses,” said Senator Snowe. “This, in turn, will lead to fewer high-paying jobs and slower long-term economic growth, particularly in under-invested urban and rural areas.”

The Entrepreneurial Development Act of 2007 was the second bill unanimously approved by the committee, and it included several of Senator Snowe’s priorities. Notably, it provides the SBA with key resources to help small businesses continue expanding in overseas markets. By creating new statutory requirements within the SBA’s Office of International Trade, small businesses will continue to be represented during international trade negotiations. Also, this legislation would reauthorize Women’s Business Centers (WBCs) to help women entrepreneurs grow.

“Women entrepreneurs are one of the most rapidly expanding segments of the economy, accounting for 30 percent of all business in the country,” Senator Snowe said. “To help propel this growth, this bill directs the SBA to help women entrepreneurs address technology, financing, manufacturing, and international trade issues.”

Additionally, the Entrepreneurial Development Act contained a provision that would address the small business health insurance crisis -- the number one issue facing small businesses today.

This provision is based on the Small Business Health Insurance Options Act (S. 1690), which Senator Snowe introduced on Monday with Senators John Kerry (D-Mass.) and Bob Bennett (R-Utah). This bipartisan measure that would establish a pilot, competitive matching grant program for Small Business Development Centers (SBDCs) to provide counseling and educational materials to small businesses designed to increase awareness regarding health insurance options available in their areas.

This measure is based on research conducted by the non-partisan Healthcare Leadership Council which found that following a brief educational and counseling session, small businesses are up to 33 percent more likely to offer health insurance to their employees.

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