• Senate Passes SBA Loan Bill

• GOP Small Business Committee Members Announced

• SBA Launches E-Procurement Program

• Alert: IRS 2003 Tax Calendar Available

• Update: Bush Nominates New Head of IRS

Senate Passes SBA Loan Bill

In their first week of the 108th Congress, the Senate unanimously passed a bill that will help the U. S. Small Business Administration better manage and monitor procedures for the 7(a) Guaranteed Loan Program, boosting lending from $4.8 billion to $8.2 billion.

The legislation, S. 141, was introduced by Sen. Olympia Snowe (R-ME), incoming Chair of the Senate Committee on Small Business and Entrepreneurship.

“Failure to meet demand for 7(a) loans would sacrifice potential new investment in the economy, which is urgently needed,” Sen. Snowe said. “I am confident the small-business sector can help restart economic growth, provided that the necessary investment capital is available.”

The bill authorizes the Office of Management and Budget to adopt a new econometic model for calculating the program’s subsidy rate. The resulting significant reduction in the 7(a) credit subsidy rate would lead to an increase in the amount of lending the program can provide.

Sen. Snowe estimates that the increase in lending should result in nearly 21,000 more loans to small firms, with the potential to support at least 103,690 new jobs.

The House is expected to take up and pass the bill by unanimous consent in the next few weeks.
 

GOP Small Business Committee Members Announced

Rep. Donald Manzullo (R-IL) was re-elected Chairman of the House Small Business Committee last week, as expected. In a press release announcing the appointment by fellow Republican House members, Chairman Manzullo said that he had already spoken to Sen. Olympia Snowe, incoming Chair of the Senate Committee on Small Business and Entrepreneurship, and agreed that the focus of both committees will be access to affordable health care.

"Surging health care costs have become a crisis for America’s small employers,” Chairman. Manzullo said. “They need options to battle these skyrocketing costs so they can continue to offer vital health care benefits to their employees.”

Other priorities for Chairman Manzullo this year will include:

• Making the 2001 tax relief provisions permanent, especially repeal of the death tax.

• Reauthorizing the Small Business Administration.

• Reducing burdensome and unnecessary government regulations that stifle business growth.

• Increasing overseas procurement opportunities for America’s small businesses.

According to the Small Business Committee Web site, the new Republican members of the committee are:

• John Kline (MN)

• Trent Franks (AZ)

• Jim Gerlach (PA)

• Jeb Bradley (NH)

•  Bob Beauprez (CO)

Write to the committee members at http://advocacy.nase.org/  and tell them what issues you want them to focus on this session.
 

SBA Launches E-Procurement Program

The U.S. Small Business Administration has announced the launch of the SBAExchange Pilot Program-- an electronic purchasing tool designed to facilitate small business e-procurement opportunities and improve the efficiency and accountability of current government procurement processes.

The SBAExchange is a streamlined electronic tool that allows agencies to award simplified acquisitions up to $100,000 (including micro-purchases) and to make purchases and payments electronically with the Government-wide commercial purchase card. Agencies will be able to use SBAExchange to award purchases over $25,000 that have been posted in Federal Business
Opportunities (FedBizOpps), provided the notice states that the award will be made electronically. Additionally, it will help small businesses compete for purchases that are currently being obtained through other contracting methods.

For more information on the Pilot Program, visit www.SBAExchange.gov.

 

Alert: IRS 2003 Tax Calendar Available

The IRS has recently posted the 2003 Tax Calendar for Small Businesses & Self-Employed on its Web site.
 

Update: Bush Nominates New Head of IRS

President Bush has nominated Mark W. Everson, a deputy director of the White House Office of Management and Budget (OMB), to head the Internal Revenue Service. Everson has also served as controller and chairman of the President's Management Council. Charles Rossotti, the former IRS commissioner, left his post in November after declining to seek a second five-year term. The selection as IRS chief requires Senate approval.
 

Do any of these issues affect you? Do you want to be proactive in helping the micro-business community? Visit the NASE's Legislative Action Center and “Tell Your Small Business Story.” This will help the NASE understand - on a personal level - how key legislative issues are affecting your business and your bottom line.

For more information about any of the articles in Washington Watch, contact Maureen Petron, NASE public affairs manager, at (202) 466-2100 or mpetron@nase.org.