Peters and Ehlers' Bill to Protect Small Businesses Passes House

Press Release

The House of Representatives approved legislation today introduced by Representatives Peters and Ehlers to support small businesses throughout Michigan. Peters and Ehlers' bill (H.R. 4393) passed as part of the America COMPETES Act, a larger bill incorporating a variety of ideas to promote U.S. manufacturing, support new hi-tech R&D and improve science and math education. Peters and Ehlers' measure will help Michigan small businesses continue to participate in the Manufacturing Extension Partnership (MEP), a highly efficient program proven to help small businesses find new markets and create jobs.

The MEP requires matching investments from the state and voluntarily participating small businesses, but as a long and deep recession continues to take its toll, states like Michigan and businesses in these states have found it difficult to continue to participate in the program. Peters and Ehlers' legislation would lower participation costs for states and small businesses and protect businesses' ability 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 businesses, helping Michigan companies to make improvements in the short term and become more competitive in the long term. Currently the federal government shares one-third of the cost of the MEP program with state governments and businesses, but the economic recession has strained many state budgets, and at least 23 state MEP centers reported a decrease or elimination of state MEP funding in 2009. Peters and Ehlers' bill reduces the participant match from 66 percent to 50 percent. An adjustment to the federal cost share will greatly alleviate the burden on state budgets and small businesses, preserve MEP's ability to provide critical services and create much needed jobs in Michigan.

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