Mr. Speaker, I yield myself as much time as I may consume. I rise today in support of H.R. 1838, the SBA Women's Business Centers Improvements Act. This important legislation rearranges the distribution of funding to women's business…
Mr. Speaker, I yield myself as much time as I may consume.
I rise today in support of H.R. 1838, the SBA Women's Business Centers Improvements Act. This important legislation rearranges the distribution of funding to women's business centers to offer temporary assistance for new businesses and startups for women's business centers rather than empower and make permanent dependency on the Federal Government with our current system. I want to just say thank you to Chairwoman Velazquez for all her help on this piece of legislation. It has been a great pleasure to work with her.
Mr. Speaker, small businesses create seven out of 10 new jobs in the United States, and they are the economic engine of our economy. Further, women-owned businesses contribute nearly $3 trillion to our national economy and create or maintain 23 million jobs and employ or generate 16 percent of the jobs in our Nation's economy.
Women's business centers are an important part of the grant programs that are funded by the Small Business Administration. Today, women's business centers across the country are providing women entrepreneurs with much-needed education, with training, with technical assistance and access to capital in startup and operating their small businesses.
Women's business centers serve over 100,000 women and tens of thousands of businesses each year. In the mid-1990s, the Federal Government began awarding grants to women's business centers that were operating as nonprofit organizations in conjunction with institutions of higher learning. Originally these grants were intended to be awarded to business centers in their first 5 years with the understanding that after this 5-year period had ended, the center would be financially self-sustaining.
Although many women's business centers did make this goal, some have not, and for a variety of reasons. As a result, a greater percentage of the funding of this program has been consumed by the operating costs of potentially unviable centers, rather than the intended purpose of helping to establish new business centers. The result is a drag on the system, unviable business centers that are not truly serving an unmet need in their communities. This, of course, jeopardizes the effectiveness and the viability of the entire program.
The SBA Women's Business Centers Improvements Act of 2009 will restore the original purpose held by the Federal Government when this program was created. By offering a three-tiered system of funding and lower caps on spending for older business centers, we can ensure a balanced approach and a balanced percentage of funding is used to support both new and existing business centers.
Modernizing the SBA entrepreneurial development programs will ensure small businesses have the opportunity to lead our Nation out of this recession into economic prosperity. The SBA Women's Business Centers Improvements Act is a huge step in the right direction and provides a much-needed helping hand to help our Nation's small businesses and our women's business centers.
Mr. Speaker, I reserve the balance of my time.
I don't have any other speakers, but I do have some further comments, Mr. Speaker.
Mr. Speaker, I want to talk about a few issues today as I finish up here and that is about the Department of Labor and how they have announced the national unemployment rate, which has reached 10.2 percent during the month of October. Another report shows that businesses with less than 50 employees lost 75,000 private sector jobs in the month of October, also. Small businesses and individuals and families have been devastated by this 26-year high unemployment rate.
Here we are, Mr. Speaker, during this important debate in our Nation about
health care reform, talking about raising taxes on small business during this recession. Mr. Speaker, I personally believe, and I think the majority of us believe, that small businesses are the economic engines in our communities and in our States and are the way that we can help lead our Nation out of this recession.
Yet as we look at the health care reform bill that we're getting ready to take up, and you look at different sections of it and how it will affect small businesses and job creation and unemployment, I am deeply concerned about several sections of this piece of legislation.
An example is page 297. Section 501 would impose a 2.5 percent tax on all individuals who do not purchase bureaucrat-approved health insurance. This tax would apply to individuals with incomes under $250,000, thus breaking a central promise of President Obama's Presidential campaign that we would not be taxing people under $250,000. Section 512 under page 313 imposes an 8 percent tax on jobs for firms that cannot afford to purchase the bureaucrat-approved health coverage. And according to an analysis by a Harvard professor, such a tax would place millions of people at risk for unemployment; and a majority of those workers could be minorities who, we believe, would lose their jobs at twice the rate of their white counterparts.
Section 551, page 336 imposes additional job-killing taxes in the form of a $500 billion surcharge, more than half of which will hit small businesses, according to a model developed by President Obama's senior economic adviser, which could increase taxes and cost us another 5.5 million jobs. Of course we know that this piece of legislation also adds $729 billion in new taxes on small businesses and on individuals who cannot afford health insurance coverage and employers who cannot afford to even provide that health insurance.
And of course another $1 trillion in new Federal spending on expanded health care insurance coverage over 10 years is some of the projections of this health care bill that we're getting ready to take up. We've had several different groups express concern about small businesses, about the unemployment rate, about the cost of this proposed health care plan. The NFIB has estimated that 1.5 million jobs will be lost due to the employer mandate on small businesses. The nearly one-third of uninsured workers who earn within $3 of the minimum wage will be put at risk of unemployment if their employers are required to offer insurance when one in 10 Americans are unemployed already.
It is a bad time to be mandating these new tax increases on our small businesses. We know that the pay-or-play provision could reduce the hiring of low-income workers and that those wages could fall even more because of required mandates on health insurance.
This bill that we're talking about for health care is going to leave, we believe, 34 million Americans without health insurance because of expansion of Medicaid, and millions of Americans will lose their current health care coverage if the private sector market is driven out of the marketplace that offers insurance.
According to a 2009 study by the National Federation of Independent Business, the cost of health insurance is the number one concern to small business owners. Small businesses create seven out of 10 new jobs in the U.S. and should be able to provide their employees with health benefits and should be able to provide it at a reasonable rate that helps these small businesses be competitive, be one of the vital benefits that they can provide to their employees, which is small businesses.
The Kaiser Family Foundation reports that health insurance premiums for single workers rose 74 percent for small businesses between the period of 2001 and 2008; and administrative expenses for small group plans account for 25 to 27 percent of premiums compared to that of 5 to 10 percent for large businesses.
So, Mr. Speaker, what we know is that if we impose more taxes, more mandates, more surcharges on our small businesses at a time when our unemployment rate just hit a record high for 26 years, over 10 percent, then our small businesses are going to be further devastated by any type of health care reform proposal that has a government mandate, that has new surcharges, new taxes, huge new taxes on small businesses.
Mr. Speaker, I am very concerned because small businesses are the economic engine of our local economies. They are the way that we can lead ourselves out of this recession, and that is why I will be opposed to the current health care proposal by Speaker Pelosi.
Mr. Speaker, I urge passage of this bill.
I yield back the balance of my time.