[Congressional Record (Bound Edition), Volume 157 (2011), Part 14]
[House]
[Page 19103]
[From the U.S. Government Publishing Office, www.gpo.gov]




                    ENTREPRENEUR STARTUP GROWTH ACT

  The SPEAKER pro tempore. The Chair recognizes the gentlewoman from 
California (Ms. Chu) for 5 minutes.
  Ms. CHU. America doesn't have a small business problem; it has a 
startup problem. That was the title of a recent Washington Post 
article. It pointed to the fact that self-employed startup businesses 
have been the chosen alternative for millions of Americans, but we must 
do more to help them. Today, one out of every three new jobs is created 
by self-employed startup businesses.

                              {time}  1110

  But we can do better. Compared to other wealthy countries, the U.S. 
ranks 23rd in new businesses formed per thousand working adults. These 
entrepreneurs take risks to make it on their own, but they could do 
better if we help them be competitive. That is why yesterday I 
introduced the Entrepreneur Startup Growth Act.
  One of the most intimidating times of the year for new owners is tax 
season, as they learn and navigate the different tax standards for 
businesses. My bill turns this tough time into an opportunity by 
offering not only affordable business tax assistance but business 
development services so that these companies can get the advice they 
need in order to grow.
  This bill builds on the Self-Employment Tax Initiative launched by 
CFED, the Corporation for Enterprise Development, a nonprofit economic 
opportunity organization. According to CFED, nearly two-thirds of all 
self-employed people are operating business startups.
  Self-employed startups in their first year of existence create an 
average of 3 million jobs per year. In fact, without business startups, 
there would be no net job growth in the U.S. economy. Nearly all net 
job creation since 1980 has occurred in self-employed startups less 
than 5 years old. They are critical to our economy.
  In my bill, community-based organizations, local governments, and 
higher education institutions are eligible to apply for grants up to 
$75,000 to operate this program. The IRS will work with the Small 
Business Administration to ensure that the operators of the program 
have expertise in both tax assistance and business development 
assistance.
  This is a program that works. With such a modest investment in this 
assistance, 62 percent of businesses were able to get refundable tax 
credits such as EITC and Making Work Pay, refunds that they might 
otherwise have missed out on. The Entrepreneur Startup Growth Act will 
help businesses grow and help low-income households build the assets 
that they need in order to survive. They will get the economic security 
they desire. With this, we will be able to help people climb up that 
ladder of opportunity and reach for that American Dream.

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