President Bush Offers Words but No Action to Help this Nation's Enterpreneurs

President Bush Offers Words but No Action to Help this Nation's Entrepreneurs

Administration's failures to provide help to small businesses highlighted

WASHINGTON - As the nation recognizes the contributions of entrepreneurs during Small Business Week (April 9 - April 15), Congresswoman Nydia M. Velázquez, Ranking Democrat on the House Small Business Committee, called President Bush's remarks at today's small business event, "long on rhetoric, and short on action - again." Unfortunately, the Bush administration's small business record has been filled with an array of promises - but little progress toward reaching an improved state for this nation's 23 million small businesses.

Terminating and under-funding vital small business lending programs:
Entrepreneurs, who traditionally have a difficult time qualifying for financing, rely heavily on alternative sources of affordable capital to start and expand their business. One of the main places they turn to is lending through the Small Business Administration (SBA); however, under the current administration, a number of the agency's lending programs have either been severely under-funded or even shut down. These shortfalls have resulted in a higher cost of capital for small businesses, entrepreneurs receiving less financing, and uncertainty surrounding the future viability of many of these programs - all of which hinder small business' ability to grow their firms and provide much needed job creation.

Failing to deliver immediate assistance following Hurricanes Katrina, Rita and Wilma:
Following the aftermath of devastation brought on by the 2005 Gulf Coast hurricanes, victims turned to SBA's disaster loan program for receiving the assistance needed to rebuild their businesses and lives. However, victims were hit with massive delays, backlogs and unprecedented low approval rates - well below the approval rates under previous Republican and Democratic administrations. As a result, thousands of individuals have been left without the assistance they so desperately need.

Lack of oversight resulting in missed contracting opportunities for small businesses:
For the past five years, the federal government has failed to provide small businesses with their fair share of contracting opportunities - costing small businesses $1.6 billion in lost opportunity in FY 2004 alone. Reiterating this concern are a number of GAO, SBA IG and SBA's own Office of Advocacy reports that have been released showing the agency's lack of accountability. In fact, a 2004 Advocacy report found that $2 billion in contracts had actually been awarded to large firms but recorded as small business awards. The administration's loose controls over contracting practices were also evident following Hurricane Katrina when few, if any, of the rebuilding contracts were awarded to small businesses - including those that resided in the impacted areas. The failure to exert proper oversight over contracting initiatives has cost not only this nation's entrepreneurs billions in lost opportunity - but it also deprives the federal government of the highest quality products and services, for the best value of the taxpayer dollar.

Five years later and still no health care solution for small businesses:
Access to affordable health care ranks at the top of the list of concerns for entrepreneurs. Today, 27 million working people are uninsured and a disproportionate 63 percent are either a small business owner, an employee of a small business, or a family member. President Bush came into office promising to help small businesses with the health care crisis, but he has failed to show leadership in delivering a solution for this nation's entrepreneurs. As a result, millions of small business owners still have no health care benefits and those that do are paying skyrocketing premiums.

Lack of tax assistance and an increasing complexity for small businesses to comply:
Under the Bush administration, small businesses have seen very little savings yielded from tax cuts - in fact, only 1 percent of all small firms have seen any benefit from the top rate cut. What small businesses have experienced from the Bush tax policies are increased complexities in the tax code. Yet, rather than provide solutions to simplify the tax code, the administration has instead stepped up its audits of small businesses. This has left many entrepreneurs facing increased costs and time requirements to comply with the existing tax code - forcing them to spend more funds on hiring accountants and attorneys, and leaving them with less time and money to invest back into their firms and create jobs.

Cut 75 percent of small business programs government-wide:
Small firms from all sectors of the economy rely heavily on an array of federal programs for assistance in starting and running their businesses. However, massive cuts and eliminations have been proposed for small business programs in the President's FY 2007 budget request. Seventy-five out of 100 programs government-wide that aid small businesses - from rural to urban areas, to high tech firms, to entrepreneurial development and tax assistance programs - have all been slated for cuts or termination. In addition, the budget for SBA has been cut nearly in half since the President took office - forcing the agency to scale back and even terminate vital programs. These massive cuts make it increasingly difficult for small businesses to serve as the driver of the economy.

"The President can talk all he wants about how important small businesses are, but the bottom line here is that this administration is failing to support policies that aid entrepreneurs," Congresswoman Velázquez said. "This administration's record on small business shows that words alone aren't going to allow small businesses to access affordable health care, or help an aspiring entrepreneur to afford a loan. They won't assist small businesses in receiving a contract that they did not get the first few times around, and they won't assist small business owners in navigating the ever increasingly complex tax code. At some point, the Bush administration needs to stop talking and start acting for small business, so this nation's entrepreneurs can move forward and finally receive the assistance and opportunity they so rightfully deserve."

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