Economic Development

As America’s traditional engine of economic growth - having created 93.5 percent of all net new jobs since 1989 - small business must be the cornerstone of any economic policy crafted by the Obama Administration and 111th Congress. Specifically, NSBA recommends the following actions:

Address the small business credit crunch. While long-term issues surrounding small business access to credit need to be addressed, it is crucial that near-term strategies and contingencies be put in place to deal with the effects of current market conditions on small business lending.

Reform credit card practices. Legislation should be passed to end unfair credit card practices, such as retroactive rate increases and universal default. While care must be given to ensure that credit cards remain a vibrant source of small business liquidity, a more fair and transparent system should be created.

Strengthen the role and budget of the Small Business Administration (SBA). Eliminate fees on loan programs and elevate Administrator to cabinet. Also, evaluate, strengthen and expand the potential role of an agency dedicated to small business.

Reauthorize a strengthened Small Business Innovative Research (SBIR) program. Though on temporary extension until March 2009, the main authorization for the SBIR program expired earlier this year. Long recognized as one of the most successful and innovative of government programs, SBIR directs a percentage of federal research dollars to small companies. The program should receive a long-term re-authorization that excludes large company participation and maintains a significant number of awards.

Issue a strong Executive Order creating a more fair and significant role for small businesses in federal procurement. Although small businesses constitute half of the U.S. economy, the federal government continues to fail to meet its own 23-percent small-business contracting goal. Increase the share of federal contracts awarded to small businesses, eliminate fraud, ensure accurate and reliable data, reduce contract bundling, improve authority and oversight over contracting dollars, and provide appropriate treatment of subcontractors.