• Congress Passes Children's Health Bill
• House OKs Energy Independence Legislation
• Senate Clears Disaster Loan Measure
• National Taxpayer Advocate Lists Tax Gap As Top Priority

Congress Passes Children's Health Bill

After months of debate, the reauthorization of the State Children’s Health Insurance Program (SCHIP) is another step closer to becoming finalized. Congress passed proposals in the midst of veto threats from President Bush. The costly expansion has both the Senate and House versions relying on different schedules for administering federal reimbursements to states, increases in tobacco taxes and other revenue raisers. The Senate bill would increase federal cigarette taxes by 61 cents per pack, to $1. The House bill only increases cigarette taxes by 45 cents per pack, to 84 cents but makes changes to the Medicare Advantage program, among other adjustments. The Senate proposes phasing out after two years the coverage of adults without children and states wishing to cover parents will have to meet a checklist of requirements beginning in 2010. On a conditional approach, the coverage of pregnant women would be permitted, however states would see a reduction in federal funding starting in 2011. The House would require states to show the creation of other aid programs and exhibit that no children are on the waitlist before covering adults. Pregnant women would also be covered with certain restrictions. To read more about the Senate and House SCHIP bills, visit http://thomas.loc.gov/.

House OKs Energy Independence Legislation A new bill promoting the development and usage of more energy efficient fuels could help micro-businesses to better handle future gasoline price jumps. In a recent online poll by the NASE, seventy-six percent of small business owners said that high gas prices were either significantly or moderately hurting their business, up from 67 percent in 2005. “The rising cost of energy has hit small businesses hard,” said House Small Business Committee Chairwoman Nydia Velázquez of New York. “This bill focuses not only on supply, but it also focuses on usage. These two factors are key in helping small businesses to manage increasing energy prices, and in becoming more resourceful.” The proposal, part of a larger energy measure that was passed by the House, was introduced by Congressman Heath Shuler, D-NC, which includes breaks on loans for businesses who use or are developing new energy technologies and increases education and outreach on renewable energy in the business environment through the Small Business Administration. Visit http://thomas.loc.gov/ to read more about H.R. 3221. Senate Clears Disaster Loan Measure   As the two-year anniversary of Hurricanes Katrina and Rita approaches, the Senate approves legislation that would help get small businesses back on their feet after a natural disaster. The measure promises a more streamlined process and quicker turnaround for disaster loans to small businesses. In past months, the Small Business Administration, which administers the loans, has been sharply criticized for processing delays after the Gulf Coast disasters. “We’ve passed this critical disaster aid legislation, recognizing that there are Gulf Coast residents who are still seeking to recover nearly two years later,” said Sen. John Kerry, D-MA, Chairman of the Committee on Small Business and Entrepreneurship. “We made these changes to help future disaster victims – whether from floods or fire in my home state of Massachusetts, or the Katrina disasters of tomorrow. I thank all of my colleagues for working together in a bipartisan way to address concerns and move this important bill.” The Small Business Disaster Response and Loan Improvements Act (S. 163) creates a Private Disaster Loan program in which banks may lend directly to disaster survivors with 85% federal backing; establishes a speedier disaster assistance business loan program to offer financial relief before other federal aid or insurance payments are being processed; and give the Small Business Administration (SBA) the authority to distribute emergency loans to small businesses, as needed. Read more about the disaster loan bill at http://thomas.loc.gov/. Most NASE Members Are Unaware Of Federal Small Business Programs More than three-quarters of micro-businesses have never utilized any federal small business programs and nearly half said they were not aware of them, according to a recent online poll by the National Association for the Self-Employed (NASE). Despite low utilization and awareness, however, fifty-eight percent of micro-business owners say they believe these programs are very valuable. “The recent reauthorization of the Small Business Administration (SBA) will allow for continued outreach and assistance to the nation’s micro-businesses,” remarked Kristie Darien, executive director of the NASE legislative office. “Outreach at the regional and local level through Small Business Development Centers – which 18% of respondents reported a familiarity with – is especially important to alerting business owners that there are programs that can help them.” Of the programs available, micro-businesses were most familiar with the SBA Business Loan programs (Basic 7(a) loan, Micro-Loan, 504 loan). Twenty-three percent said federal loan dollars helped them to start or continue managing their business. To see the full results of the survey, visit http://advocacy.nase.org/membersurvey/default.asp. To review the results from past NASE polls, visit http://www.nase.org/Survey/past_surveys.asp. Share your experiences as a micro-business owner! Sound off on key legislative issues and get some free publicity for your business in the process by becoming a media contact. Visit www.NASE.org/mediarelations/contactsheet.asp to fill out an informational sheet on the background of your business. Then, send it back to us at the contact information listed on the sheet. If getting involved in the legislative process suits you better, go to the Advocacy page and “Tell Your Story” (http://advocacy.nase.org/issues/issues.asp). You have the option of allowing the NASE to share your micro-business story with your Members of Congress. By allowing the NASE to tell your story to legislators, you can play a vital role in illustrating the real life consequences and affects of issues they debate on a daily basis.