• Legislation Would Expand Reach For Minorities
• Senate Committee Gives Support To New Tax Breaks
• Small Business Administration Receives Reauthorization

Legislation Would Expand Reach For Minorities

Senate Small Business Committee Chairman John Kerry announced the creation of a bill that would give minority businesses higher visibility in the federal government. The Minority Entrepreneurship Development Act would establish an Office of Minority Small Business Development in order to increase small business loans to Latinos, African-Americans, Asian-Americans, and women. This office will begin to oversee the SBA’s Capital Access, Entrepreneurial Development, and Government Contracting programs to make it easier for these groups to have better access to financial assistance, counseling, contracting opportunities, and venture capitalist investments. Additionally, the office would work with other business development leaders and groups to concoct better ways to market to minorities. The Development Act would also test-drive a grant program that is intended to foster the creation of entrepreneurial curriculum at Historically Black Colleges and Universities, Tribal Colleges, and Hispanic-Serving Institutions. The grants would provide resources to open Small Business Development Centers to serve as a community resource at some of these colleges. “The goal of this program is to target students in highly skilled fields such as engineering, manufacturing, science and technology, and guide them towards entrepreneurship as a career option,” Sen. Kerry said. “Traditionally, minority-owned businesses are disproportionately represented in the service sectors.” Among other proposals, the legislation would also provide necessary tools for small businesses wishing to contract with the federal government. For more information on the Minority Entrepreneurship Development Act (S. Res. 32), visit http://thomas.loc.gov/. Senate Committee Gives Support To New Tax Breaks The Senate Finance Committee has agreed to a batch of small-business tax breaks that will most likely be attached to the minimum wage bill passed in the House. The $8.3 billion package will be reviewed by the Senate following the ethics and lobby measure, among others. Revenue for the bill will be raised by other business cuts, including increased restrictions on foreign leases, corporate inversions, deferred executive compensation, and individual expatriates. The proposed breaks include an extension of the existing work opportunity tax credit, which can apply to employers who hire particular low-income workers. It would also update the credit to include the hiring of veterans disabled after the September 11, 2001 terrorist attacks. The package lists an extension of the 15-year depreciation of improvements on leased property, which lawmakers say particularly helps owners of new restaurant buildings and retail stores. It would raise the gross receipts limit to $10 million for cash accounting and small business-expensing for new investments to $112,000. Senate Small Business and Entrepreneurship Chairman John Kerry, D-Mass, has also introduced a number of bills aimed at slashing taxes. The Small Business Health Care Tax Credit Act would offer a tax credit to small businesses with less than 50 employees to assist with health premium costs for employees that earn more than $5,000 and less than $50,000 per year. The employer must pay a minimum of half of the premium. Kerry’s Alternate Minimum Tax reform expands and extends the individual exemption amount and allows nonrefundable credits against the tax for 2007. To read more about proposed legislation, visit the Library of Congress at http://thomas.loc.gov/. Small Business Administration Receives Reauthorization The Small Business Administration (SBA) will undergo an overhaul, according to a House-passed resolution. The bill extends through the end of 2007 all programs and provisions established before September 30, 2006 and will now be evaluated by the Senate. The reorganization of the SBA’s disaster loan program and providing small firms with increased access to federal contracting opportunities are among the plans for Small Business Committee Chairwoman Nydia Velázquez, D-NY. “The SBA has been a valuable partner to the NASE,” said Kristie Darien, executive director of the legislative office. “We’re looking forward to working with them in the future and are excited about the new changes ahead, which will help better serve the nation’s self-employed and micro-businesses.” Lawmakers say they hope to enact a long-term reauthorization, since the current authorization that the agency is operating under will expire at the beginning of February. This is the SBA’s second stopgap renewal since last year. Become a media contact and get the opportunity to share your experiences as a micro-business owner. 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