**DEMOCRATS FIGHT FOR AMERICA'S SMALL BUSINESSES**

Democrats know that small business is big business in this country. They
are the engine of America\'s economy, representing more than 95 percent
of all employers, creating half of our gross domestic product, and
creating three out of four of new jobs nationwide. Small business owners
are leaders in innovation, creating new technology, new products, and
more effective business operations. We believe that government should
help small business owners achieve their goals - not stand in their way.
That's why we want to make providing health care coverage for their
employees more affordable, ensure that small businesses have the access
to capital and technical assistance they need to thrive, open the \$285
billion federal marketplace, provide targeted tax relief, and support
trade agreements that open markets for small businesses.

**Lower costs and expand affordable health coverage for small
businesses.** Democrats are committed to expanding the options and
controlling the skyrocketing costs of health coverage for small
businesses.  Two proposals would help small business owners provide
health insurance to their employees. The Small Business Health Insurance
Promotion Act, offered by Representative Max Sandlin (D-TX), would
create a 50 percent tax credit to help small businesses with the cost of
health coverage.  The bill also creates state and national multi-insurer
pools to provide comprehensive and affordable health insurance choices
to small employers and the self-employed, regardless of whether they
receive the credit.  Rep. Ron Kind (D-WI) has introduced a similar bill
that provides tax credits to small employers who participate in a
pooling arrangement to provide quality coverage.

 

**Ensure that small businesses have access to capital and technical
assistance to start and expand their business.** For small business
owners, access to capital and technical assistance is access to
opportunity. The Small Business Administration's loan and
entrepreneurial development programs provide this critical assistance to
our nation's entrepreneurs. Democrats will fight to fully fund all of
SBA's access to capital initiatives -- including the Microloan and 7(a)
lending programs, and support efforts to broaden the availability of
equity capital to America's entrepreneurs. Democrats support SBA's
entrepreneurial development programs, including the Small Business
Development Center and Women's Business Center programs, to provide
counseling in business plan development, finance, and marketing. We will
also work to expand future opportunities for small businesses by passing
a comprehensive overhaul of the SBA that will strengthen and modernize
the agency's diverse range of programs. In championing these
initiatives, Democrats will ensure that entrepreneurs in every community
across the country have the necessary capital, tools, and resources to
start and expand their businesses.

**Open the federal marketplace to small businesses.** Democrats want to
create a fair and open federal contracting system, making sure everyone
has a fair shot at winning a federal contract in the \$285 billion
federal marketplace. Democrats will work to end the practice of creating
"mega contracts" that take opportunities away from small businesses at
no savings to the taxpayer; increase the access of small business to
federal contracts overseas; and institute a fair contracting appeals
process for small businesses to be heard. As government contracts
continue to grow, more small companies are pushed into the role of
subcontractors - Democrats will work to add new protections for these
companies. In addition, we will work to increase contracting
opportunities for women, low-income individuals, and minorities by
strengthening such key business development programs as 8(a). These
actions will reduce current barriers and ensure small businesses have
access to perform federal contracts.

**Make federal regulations friendlier for small businesses.** 250,000
pages of new regulations, notices, rulings and proposals have been
published in the last four years. The GAO reports that Americans spend a
staggering 720 million more hours per year filling out federal paperwork
than they did three years ago. Federal paperwork and regulatory burdens
are not only costly and time consuming, but they also put small
businesses at a competitive disadvantage compared to their foreign and
domestic competitors. Democrats want to ensure that small firms don\'t
struggle with paperwork as they work to build their business. Democrats
would work to ensure that agencies consider the impact of their policy
decisions on small business, instead of ignoring requirements to reduce
paperwork for small business, and help small business to comply with
federal regulations. We would also take steps to strengthen and preserve
the independence of the Office of Advocacy.

**Provide targeted tax relief and assistance for small businesses and
small manufacturers.** Democrats introduced an economic stimulus plan
that provided tax incentives to small businesses to generate investment,
which became the law of the land. The plan allowed small businesses to
"expense" or immediately write-off the cost of new investments in
equipment, along with a "bonus depreciation" provision to give firms
greater tax relief for new investments. We have also proposed a new jobs
tax credit that would give businesses \$3,000 for every job created in
the next two years by American manufacturers, small businesses, and
other industries affected by outsourcing. Small businesses would also
benefit from the Rangel-Manzullo-Levin bill to provide a tax cut to
domestic manufacturers. Under this proposal, companies with 100 percent
domestic production, including all small manufacturers, would see their
tax rate reduced by 10 percent - or up to 3.5 percentage points.
Further, Democrats support investing in the highly successful
Manufacturing Extension Partnership (MEP) Program, which offers services
to help small U.S. manufacturers stay competitive. These measures are
important to keeping jobs here at home, and helping American small
business prosper.

**Open new markets for small businesses.** Democrats are committed to
pursuing fair trade strategies that open markets; ensuring a level
playing field for American workers and businesses; and strengthening
critical domestic industries, such as our manufacturing, intellectual
property, and technology sectors. We would also enforce existing trade
obligations by pursuing well-documented cases in the WTO, and press
China and Japan to end currency manipulation, which makes it harder for
U.S. companies to stay competitive. Democrats will also invest in
federal initiatives that provide technical assistance and necessary
tools to small businesses that wish to break into new markets and sell
their products abroad.

![](media/image1.wmf) Office of the House Democratic Leader Nancy
Pelosi, October 6, 2004

www.HouseDemocrats.gov /
[www.DemocraticLeader.house.gov](http://www.DemocraticLeader.house.gov/)
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