[Congressional Record Volume 158, Number 103 (Wednesday, July 11, 2012)]
[Extensions of Remarks]
[Pages E1229-E1230]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 IN SUPPORT OF SMALL BUSINESS TAX CUTS

                                 ______
                                 

                         HON. LAURA RICHARDSON

                             of california

                    in the house of representatives

                        Wednesday, July 11, 2012

  Ms. RICHARDSON. Mr. Speaker, I rise today to applaud the 
Administration for the immediate executive actions that will accelerate 
our nation's small business growth. There are 28.6 million small 
businesses in the U.S. and small businesses create two out of every 
three jobs in the country. In the state of California small businesses 
employ more than 50 percent of the state's 16 million workers and 
represent 90% of job growth for high-paying jobs. The statistics are 
clear, small businesses are the key to economic recovery and continued 
growth.
  Ameliorating the burdens of small businesses stabilizes uncertainty 
and encourages critical job growth. Five of these initiatives are 
immediate executive actions that will accelerate Federal payments, 
reduce paperwork, and make it easier for small firms to access loans 
and tax credits, and one is a legislative proposal to raise the amount 
of investment small businesses can expense next year.
  Mr. Speaker, let me briefly highlight some of the key initiatives:
  (1) Accelerate payments to small business subcontractors: Through the 
Office of Management and Budget, agencies will be directed to make 
contract payments along an accelerated timeline to all prime 
contractors for the next year (typically 15 days after receipt of 
proper documentation, as opposed to 30 days), with the understanding 
that those prime contractors will similarly accelerate payments to 
their small business subcontractors.
  (2) Announce support for Section 179 expensing at $250,000 for one 
year: President Obama is calling on Congress to write legislation to 
allow small businesses to write off up to $250,000 in capital 
investments in 2013, such as machinery and equipment, to drive 
productivity. Without an act from Congress, the expensing limit for 
small businesses is scheduled to decline to only $25,000 in 2013.
  (3) Increase access to capital through SBA's Small Loan Advantage 
(SLA) 2.0: SBA is re-launching Small Loan Advantage, one of its key 
small dollar loan products, as SLA 2.0. This revamped program raises 
the maximum loan amount from $250,000 to $350,000, streamlines the loan 
process, and makes it easier for lenders to extend loans to small 
businesses across America.
  (4) Launch ``Quick App'' for surety bond guarantees under $250,000: 
SBA is launching ``Quick App,'' a streamlined application that will 
eliminate the need for contractors to complete five unnecessary forms 
to apply for surety bonds. Providing small firms, particularly in the 
construction industry, streamlined access to these bonds will make it 
easier for them to compete for and win additional business, which is 
important to allowing them to expand and create jobs.
  (5) Reduce paperwork for SBA's Disaster Loan Program: Cutting the 
online application from 80 screens to three or four screens (depending 
on loan type) will allow families and businesses easier and quicker 
access to support for rebuilding after a disaster.
  (6) Align New Markets Tax Credit with the needs of investors in 
growing small firms: Reforms the existing New Markets Tax Credit that 
will make it easier for community development entities (CDEs) to 
attract private sector funds for investment in startups and small 
businesses operating in lower-income communities. The regulations are 
designed to encourage CDEs to invest in other types of small local 
businesses by relaxing the reinvestment requirements for CDEs investing 
in certain operating businesses. The Treasury Department is also 
considering regulatory reforms that would further simplify the 
requirements for these CDEs and intends to publish these for comment in 
the future.

[[Page E1230]]

  Entrepreneurs and small businesses are engines of innovation and 
economic growth; the small businesses in my district are at the 
forefront of innovation. The diverse innovation of small businesses in 
my district from aerospace to healthcare will be able to expand market 
share with the support of these six key initiatives. I will continue to 
fight for legislation that will support the approximately 16,300 small 
businesses in my district.
  Mr. Speaker, I would like to commend the Administration for taking 
the necessary steps to help small businesses expand their export 
programs and alleviate potential layoffs. I urge my colleagues to build 
upon the Administration's executive actions and provide more support 
for small businesses.

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