Committee Approves Peters And Ehlers' Bill To Protect Small Businesses

Press Release

The House Committee on Science and Technology this evening approved legislation introduced by Representatives Gary Peters and Vern Ehlers to support small businesses throughout Michigan. Peters and Ehlers' bill (H.R. 4393) will help Michigan small businesses continue to participate in the Manufacturing Extension Partnership (MEP), a highly efficient program proven to help small and medium-sized businesses find new markets and create jobs.

The MEP requires matching investments from states and voluntarily participating small businesses, but as a long and deep recession continues to take its toll, states like Michigan and many businesses have found it increasingly difficult to continue to participate in the program. Peters and Ehlers' legislation would lower participation costs for states and businesses to allow businesses to remain active in the program, an initiative which has spurred 57,000 jobs and $10.5 billion in sales per year recently.

"Small businesses will be the main driver of Michigan's economic recovery and we need to fight relentlessly to lower their costs and help them grow," said Congressman Peters. "Reducing small businesses' costs and continuing an effort proven to create jobs makes good sense. I am very grateful to my friend Congressman Ehlers for partnering with me in introducing this bipartisan legislation."

"Small businesses in Michigan have had an especially hard time during this downturn in the economy, particularly those who are manufacturers. Since small businesses are the cornerstone of our economy, it is more important than ever to help them cut costs and remain competitive so that they can lead us into recovery," said Congressman Ehlers. "I thank Congressman Peters for allowing me to join him in introducing this important bill to help manufacturers in Michigan and around the country improve efficiency, train workers, and reduce waste."

For the past 20 years, MEP has provided technical and business assistance to small and mid-sized manufacturers, helping Michigan companies make improvements in the short term and become more globally competitive in the long term. Currently the federal government shares one-third of the cost of MEP with state governments and participating businesses, but the recession has strained many state budgets and at least 23 state MEP centers nationwide reported a decrease or elimination of state MEP funding in 2009, meaning companies must pick up a greater share of the tab. Peters and Ehlers' bill reduces the state and participant match from 66 percent to 50 percent and gives the Secretary of Commerce the authority to reduce the match further if circumstances necessitate such action. An adjustment to the federal cost share will greatly alleviate the burden on state budgets and small businesses and preserve MEP's ability to provide critical services and create jobs in Michigan.

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