American Competes Act Becomes Law, Includes Portions of Peters' Bill

Press Release

The House of Representatives approved legislation today that contained a modified version of Representatives Peters' bill to support small businesses throughout Michigan. The language was included 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' 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.

"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 see this idea included in the final version of the COMPETES Act and to send this important bill to the President."

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. The COMPETES Act would allow the participation costs for states and small businesses to be lowered in certain cases and requires an independent study of the issue. Lowering participation costs will help businesses to remain active in the program, an initiative which has spurred 57,000 jobs and $10.5 billion in sales per year recently.

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. Congressman Peters introduced a bill, H.R. 4393, with Congressman Ehlers earlier this session that would reduce the participant match from 66 percent to 50 percent. That bill passed the House of Representatives in May, and has been included in a modified form in the America COMPETES Act of 2010. 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.

Having passed the Senate, the legislation now heads to the President for his signature.

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