Mr. Chairman, I yield myself as much time as I may consume. Mr. Chairman, I rise in support of this measure which will update and improve the SBA's ED programs. This bill is a bipartisan product and…
Mr. Chairman, I yield myself as much time as I may consume.
Mr. Chairman, I rise in support of this measure which will update and improve the SBA's ED programs. This bill is a bipartisan product and will not only strengthen small firms but will help them create new jobs for American workers.
This week, we are honoring our Nation's job creators, the entrepreneurs who generate roughly 70 percent of all new positions. As we celebrate Small Business Week this year, we find ourselves in a different place than in celebrations past. The economic landscape has changed considerably, and in the face of an historic recession, small firms cannot always go it alone. After all, starting and running a small business is no easy lift, even when times are good. That is why the Job Creation Through Entrepreneurship Act is so important. It revs up the engine of our economy, the entrepreneurs who are creating jobs and changing the way our country does business.
This bill gives small firms the tools they need to flourish. By enhancing SBA's entrepreneurial development programs, it will help existing businesses grow and allow aspiring entrepreneurs to get off the ground. These resources are critical. In fact, small firms that use them are twice as likely to succeed than those that don't. But unfortunately, many of these initiatives are outdated and underfunded. Today, we will take important steps to ensure they are running at full capacity.
Despite declines in corporate America, the entrepreneurial spirit is alive and well. Every month, 400,000 new businesses start up across the country. Imagine if each of those firms had access to resources like business development training. Through H.R. 2352 they will. This bill provides entrepreneurs with the tools they need to do everything from draft a business plan to secure equity capital. These services put small firms on a level playing field, allowing them to compete in virtually any sector, including the Federal marketplace.
Although most industries are struggling, the Federal marketplace is booming. With billions of stimulus dollars now in play, that sector presents
enormous opportunity for entrepreneurs. But before they can crack the industry, small firms will need to know its ins and outs. H.R. 2352 provides the training they need to do so. It also offers the necessary technology.
In order to adapt to new markets, many entrepreneurs will need to retool their operations. Through cutting-edge technology programs, this bill allows entrepreneurs everywhere to access the information they need. In doing so, it encourages entrepreneurship in places where it might not otherwise grow. For struggling rural regions and inner cities, H.R. 2352 will be an economic catalyst. It will also reflect the changing face of American business. More and more, women, veterans, and Native Americans are starting their own firms. For these people, entrepreneurship is more than a means of employment; it is a path to economic independence.
From rejuvenating rural regions to promoting entrepreneurship in underrepresented communities, ED makes good economic sense. And in fact, every $1 put into the program puts another $2.87 into the Treasury. If you ask me, that's a pretty good return on investment. By modernizing and enhancing the program, the returns will only get better. Because at the end of the day, strengthening entrepreneurial development programs empowers small businesses, allowing them to grow and, perhaps most importantly, create new jobs for American workers.
I reserve the balance of my time.
Mr. Chairman, I have no further speakers if the ranking member is prepared to close.
Mr. Chairman, I would like to take this opportunity to commend the work of Mr. Shuler and Mr. Luetkemeyer in putting together this bill. I would also like to commend the other members of the committee--Mr. Nye, Mr. Buchanan, Mr. Schock, Mr. Thompson, Mrs. Kirkpatrick, Ms. Fallin, and particularly the ranking member, Mr. Graves--for all of their efforts and contributions in putting together this bipartisan product.
Entrepreneurs have much talent for job creation. In the last few months, much has been made of that ability and with good reason. As employment continues to climb, we need to be investing in the businesses that can put Americans back to work. The Job Creation Through Entrepreneurship Act of 2009 will do just that. That is why this bill is supported by groups as diverse as the American Legion, the Association for Enterprise Opportunity, the International Franchise Association, the National Association for the Self-Employed, the National Black Chamber of Commerce, the National Center for American Indian Enterprise Development, the U.S. Hispanic Chamber of Commerce, the U.S. Women's Chamber of Commerce, and the Veterans of Foreign Wars.
Already, the SBA's entrepreneurial development programs help small firms do everything from draft business plans to accessing capital. These services have been an invaluable resource for countless entrepreneurs, and they have led to the creation of hundreds of thousands of jobs. In fact, entrepreneurial development helped generate 73,000 new positions in 2008 alone.
Despite the program's inherent value, it is in sore need of modernization. Today, we are going to begin the process of turning it around. In doing so, we will ensure that small firms have the tools they need to spark a sustained recovery. What better time to reinforce the backbone of our economy than during Small Business Week. We can do more than celebrate our entrepreneurs. We can empower them and can help them play their unique role as an economic catalyst.
I will now yield to the gentlewoman from Illinois as much time as she may consume.
Mr. Chairman, I yield back the balance of my time.
Mr. Chairman, I have an amendment at the desk.
Thank you, Mr. Chairman. I yield myself such time as I may consume.
The manager's amendment makes technical and conforming changes to the underlying legislation. It also incorporates several important amendments offered by Ms. Markey, Mr. Carney, Mr. Polis, Ms. Pingree, and Mr. Cardoza.
Across all areas of the legislation, these amendments sharpen the provisions, making them more effective in assisting our entrepreneurs. In particular, these amendments strengthen provisions dealing with veterans, rural entrepreneurs, women entrepreneurs, and green technology.
I would like to thank my colleagues who contributed these changes and allowed them to be included in the manager's amendment. Ultimately, we have a manager's amendment that will improve this legislation and, more importantly, foster entrepreneurship and job growth.
Mr. Chairman, I strongly encourage my colleagues to support this amendment.
I reserve the balance of my time.
Mr. Chairman, while not opposed to the amendment, I ask to claim the time in opposition.
Mr. Chairman, as our Nation transitions to a green economy, America's entrepreneurs are leading the way. Entrepreneurs make up 90 percent of the renewable energy sector that is harnessing wind and solar power, as well as producing biofuels. Small companies are also dominant in the field of energy efficiency, and they're finding better, cleaner ways to use existing fuel sources.
The renewable energy and efficiency sectors are leading a new way for growth. They are expected to account for one out of every four jobs by 2030. Small businesses are also instrumental in efforts promoting energy efficiency in both existing and new buildings.
The amendment offered by the gentlelady from Colorado will build on this role. It clarifies that Women's Business Centers may utilize their resources to promote cost-saving energy techniques. That is a valuable change to the legislation, and I urge my colleagues to support this amendment.
I now yield to the gentleman from Missouri for any comments that he might have.
Mr. Chairman, while not opposed to the amendment, I ask unanimous consent to claim the time in opposition.
I thank the gentleman from Minnesota for offering this amendment. All of us on both sides of the aisle want to make sure that these programs meet the needs of our entrepreneurs. I think we're doing good work with this legislation. But, as with many government programs, we must ensure there is sufficient oversight.
It is important that we carefully monitor how taxpayer dollars are spent and what effect they're having. Most of all, we must be sure that these programs accomplish what Congress intended.
The amendment in question will provide this oversight. It requires the Government Accountability Office to report on the effectiveness of ED programs for veterans.
I welcome this additional oversight. If Congress is going to ensure veterans are receiving the help they need from the SBA, we must make sure these new programs are functioning correctly. I will encourage my colleagues to vote for this amendment.
Now I yield to the gentleman from Missouri for any comments that he may have.
We are prepared to accept the amendment.
I yield back the balance of my time.
I thank the gentleman from Ohio for his amendment. The legislation on the floor today places a high priority on helping veterans who wish to transition from the military to entrepreneurship. As I have noted, this bill for the first time creates a nationwide network of Veterans Business Centers. As our servicemen and -women return home from Afghanistan and Iraq, many of them will look to launch their own businesses as the next step in their careers. This network of Veterans Business Centers will aid them as they make that move. For many veterans, entrepreneurship is a logical next step. Already today, veterans comprise 14 percent of self-employed people. Service-disabled veterans make up 7 percent of small businesses. The underlying legislation would help these veterans who own their own firms as well as assist veterans seeking to start their own enterprises. The amendment before us helps to refine and improve the veterans provisions contained in this bill.
Specifically, the amendment requires that the new veterans centers offer specialized services to help unemployed veterans. In addition, the amendment will help the SBA improve outreach and education to veterans in high unemployment areas, and it would mean that the SBA will dedicate resources to assist those veterans who need help the most. In short, this amendment will do right by those who have served our Nation.
I now yield to the ranking member, the gentleman from Missouri, for any comments that he may have.
Mr. Chairman, I reserve the balance of my time.
If the gentleman is prepared to yield back, we are prepared to accept the amendment.
I urge adoption of the amendment, and I yield back the balance of my time.
Mr. Chairman, let me thank the gentleman from Connecticut for this great amendment.
We often hear discussion of the concept of ``welfare to work.'' Well, the amendment before us will move many Americans from ``welfare to entrepreneurship.'' Studies consistently demonstrate that entrepreneurship provides a path out of poverty for many Americans. In particular, we have seen that for many impoverished women, launching their own small business can mean a chance at a bright future. This amendment will provide entrepreneurial development resources to those communities that have been hardest hit by this recession by creating Microenterprise Training Centers. These centers will let Americans interested in starting a very small business, such as a home-based business, access valuable classes, one-on-one instruction and other guidance. These resources will help launch the smallest small businesses, those with six or less employees and that start with $40,000 or less in capital. Under the amendment, the SBA will establish these training centers. The administrator is instructed to place them in parts of the country that have a high proportion of low-income and unemployed individuals.
Mr. Chairman, when economic downturns like the current one hit, those communities that are already hurting often carry the brunt of the pain. Those areas already struggling with high unemployment suffer the most when jobs become even more scarce. The amendment before us will provide additional options for Americans living in these communities. It will mean that those living in poverty will have a better chance to secure their economic independence and build a better life for themselves. The Microloans Program is a program that lends to businesses and those who want to start up a business. These are microenterprises that will provide technical assistance and guidance for those who want to start up a business. It's different.
I commend the gentleman for offering this amendment.
Mr. Chairman, the amendment offered by the gentleman from Maryland will greatly expand the reach of entrepreneurial development programs. Too often small business owners or prospective entrepreneurs cannot access these programs because they live in a rural or remote area. For those small businesses in these parts of America, the nearest Small Business Development Center or Women's Business Center is often many miles away. This can prevent small businesses from accessing the services that we are improving and reauthorizing in the underlying bill.
The amendment offered by the gentleman from Maryland will further ensure that the SBA pays attention to the needs of rural America. Specifically, it creates a rural entrepreneurship advisory council at the Small Business Administration. Drawing from the expertise of the Department of Agriculture and the Department of Commerce, this panel will see to it that ED services provided by the SBA are effective for rural small businesses.
In many rural areas, many small businesses are particularly important. Often they are the community's largest employer. This amendment will ensure that the SBA's entrepreneurial development programs are meeting the needs of rural America.
I urge the adoption of the amendment.
And I now yield to the gentleman from Missouri for any remarks that he might have.
Mr. Chairman, I thank the gentleman from New York for offering this amendment, as I believe it will help to improve the bill. As we all know, and we have seen and we heard that veteran entrepreneurship is on the rise, meaning that these services are in greater and greater demand.
The existing Veterans Business Outreach Centers have seen a 61 percent increase in veterans' requests for their services. Women's Business Centers report a 103 percent increase in veterans' requests. Clearly there is a hunger out there for these type of initiatives. And as more of our men and women return from Iraq and Afghanistan, the need for veterans' entrepreneurial development programs can be expected to grow.
By increasing the resources that are available for our former servicemen and -women, this amendment will help many of them launch their own businesses.
I will now yield to the gentleman from Missouri (Mr. Graves) for any comments that he wishes to make.
Mr. Chairman, if the gentleman is prepared to yield back, we are prepared to accept this amendment.
Mr. Chairman, I urge the adoption of this amendment, and I yield back the balance of my time.
Mr. Chairman, let me start by saying that the gentleman from Virginia has been enormously helpful in crafting this legislation. He authored the bill on which title I is based. That measure establishes a portfolio of entrepreneurial development services for our Nation's veterans.
The amendment that he is now offering will go even further. As we have already noted, members of our Armed Forces are natural candidates for entrepreneurship. They exhibit the dedication, resolve and leadership skills that it takes to launch a new enterprise. In many cases, they make excellent Federal contractors as they are familiar with the procurement process or are in fields in high demand by the government.
This amendment takes a very proactive approach by reaching out to members of the military before they are discharged easing their transition back into civilian life.
Today, too many Americans who have worn the uniform of our Nation find themselves unemployed after separating from the service. With this amendment, we create another option, another career path for members of our military.
I thank the gentleman from Virginia for offering this amendment and for all of his work on this bill.
And I now yield to the ranking member from Missouri for any comments that he might have.
I urge the adoption of the amendment, and I yield back the balance of my time.
Mr. Chairman, I am not opposed to the amendment. I ask unanimous consent to claim the time in opposition.
The amendment offered by the gentleman from Michigan is a well-thought-out proposal. In fact, earlier this month, the House Small Business Committee conducted a hearing regarding how small parts suppliers and manufacturers are coping given the current problems in the automobile industry. What we heard is troubling. Experts predict that half of the Nation's auto suppliers will be shut down by 2012. Many have already closed their doors.
These factories are vital not just to the automotive sector but to our overall economy. Parts suppliers alone employ 3.2 million workers. We know that the three big car manufacturers are suffering, but these are the smaller of the smaller, and they need our help. So it is very important what this amendment will do.
In the past, these manufacturers have supplied the American automobile industry, and I believe they can continue to have a bright future. By modernizing their facilities and entering new markets, they can keep offering good-paying jobs to millions of Americans while maintaining a strong manufacturing base in this country.
If we have learned any one thing from the current economic crisis, it is that economic stability starts from the bottom up, not the other way around. By stabilizing small manufacturers and part suppliers, we can help the larger firms in the automotive industry. In that process, we will protect millions of jobs. The amendment before us will further this goal.
I urge its adoption, and I yield to the gentleman from Missouri (Mr. Graves) for any comments he wishes to make.
If the gentleman is prepared to yield back.
Mr. Chairman, I move that the Committee do now rise.