i

MOVING AMERICA’S

SMALL BUSINESSES & 

ENTREPRENEURS

FORWARD

Creating an Economy Built to Last 

National Economic Council

May 2012
ii

Introduction

From Main Street shops to high-tech startups, America’s small businesses and entrepreneurs are the engine of our 

economy and one of our country’s greatest assets. Over the last two decades, small and new businesses have been 

responsible for creating 2 out of every 3 net new jobs, and today the country’s 28 million small firms employ 60 million 

Americans, half of the private sector workforce. When America's small businesses are strong and growing, our 

communities are strong and growing. President Obama understands that to create an economy built to last—one that 

ensures millions of hard working Americans have the opportunity to achieve the American Dream—we must make sure 

that every entrepreneur and small business in America has the tools they need to grow.

When President Obama took office in January 2009, the economy was in free-fall, losing over 800,000 jobs a month. In 

the fourth quarter of 2008 and the first quarter of 2009, the economy shrank at an average annual rate of 7.8%. Small 

businesses in particular were struggling under the weight of the worst economic crisis of our lifetime, weak consumer 

demand, and a credit crunch created by the Wall Street meltdown. 

From the moment he took office, President Obama has fought tirelessly to move our economy forward and invest in 

entrepreneurs and small businesses so they can do what they do best—take risks, develop new ideas, grow businesses, 

and create new jobs. To help them expand and hire, the President has signed a total of 18 tax cuts for small businesses, 

from greater expensing to the President’s signature call to eliminate capital gains taxes on investments in small 

businesses. The President has also established two new small business lending funds and expanded Small Business 

Administration lending programs, which have hit an all-time record. 

The President also recognizes the vital role that innovative, fast-moving firms play in creating jobs and expanding the 

economy, which is why he signed into law the bipartisan JOBS Act to make it easier for growing firms to go public and 

raise capital. It’s also why he signed into law the most significant reform of our patent system in 50 years with the 

bipartisan America Invests Act. 

Finally the President knows that in the 21st century, entrepreneurs face a new set of global challenges. That’s why he 

has helped small businesses expand and compete in foreign markets with a more than 6% increase in the number of 

small businesses exporting from 2009 to 2010 – making progress toward the five-year goal of doubling exports through 

the National Export Initiative.

As a result of these efforts, small businesses are at the forefront of America’s economic recovery. In the last 26 months 

we have created 4.25 million private sector jobs – many of them at small and new businesses – and triple the number of 

jobs added during the last economic recovery in 2002-2004. We know there is still a great deal of work to be done, but 

the actions we’ve taken – and the partnerships we’ve built – are creating a more inclusive economy, a more resilient 

economy, and an economy that is driven by a strong and growing middle class. 

To move forward we must continue to make smart investments in small business. As part of the President’s “Congress 

To-Do List”, at this make-or-break moment for the middle class, we can act right now to help hard working small 

business owners create jobs by giving them a tax credit for new hires and a tax deduction for new investments. His 

business tax reform plan would make tax filing simpler for small businesses and entrepreneurs so that they can focus on 

growing their businesses rather than filling out tax returns.

There is simply no excuse for inaction.

This report, the second by this Administration, provides a sampling of the many investments of the Obama 

Administration to support small businesses and is a reflection of the depth and breadth of the President’s commitment 

to American entrepreneurs.

Gene B. Sperling

Assistant to the President

Director, National Economic Council

Karen G. Mills

Administrator, Small Business Administration
iii

By the Numbers: 

Access and Opportunity for Small Businesses and Entrepreneurs

INVESTING TO JUMPSTART PRIVATE SECTOR HIRING AND CREATE JOBS

 The President has signed in to law 18 tax cuts that directly help small businesses. This includes new tax credits for 

hiring unemployed workers and veterans, and allowing small businesses to write off the full cost of new investments 

in things like new machines and computers against last year’s taxes.

EXPANDING ACCESS TO CAPITAL AND MARKETS

 Helping small, main street banks provide more loans to help small businesses grow their local community by 

investing over $4 billion in 332 banks and community development loan funds through the new Small Business 

Lending Fund.

 Supporting nearly $80 billion in loans to more than 150,000 small businesses since January 2009; FY 2011 was a 

record year with $30 billion in lending supported through the 7(a) and 504 programs. 

 Leveraging private capital through a $1 billion early-stage fund to invest in young, high-growth companies to help 

them cross the funding “Valley of Death” so they can innovate, grow, and create jobs.

 Committing $1 billion, along with private capital, to invest in companies located in underserved communities or 

emerging business sectors, such as clean energy, to harness the power of all of America’s small businesses to lead 

us through the recovery.

 Securing commitments from 13 of the nation's largest lenders to increase lending by $20 billion over the next 3 

years to small businesses so they can start, grow, and succeed.

 Ensuring that every small business can compete for and win federal contracts by awarding nearly $300 billion in 

federal prime contacts to small businesses, including $120 billion in federal prime contracts to minority-owned 

small businesses since 2009.

CUTTING RED TAPE

 Putting a record $2.8 billion directly into the hands of more than 13,000 businesses in FY2011 alone through Small 

Business Investment Companies, achieved through a 54% reduction in license processing times.

 Patent applications filed today will take nearly 40% less time to receive an initial patentability determination on 

their innovation compared to January 2009.

 Making it easier for small businesses in federal declared disaster areas to get a loan by reducing the electronic loan 

application paperwork by 70%.

BOOSTING RESOURCES TO ACCELERATE BRINGING IDEAS TO MARKET IN THE U.S. AND ABROAD

 The President signed into law the most significant reform of our patent system in 50 years with the bipartisan 

America Invests Act. The patent system overhaul cuts the current patent backlog, provides a fast track option for 

processing within 12 months that will unleash innovation by rewarding inventors, offers entrepreneurs new ways to 

avoid litigation regarding patent validity, and protects American inventors’ intellectual property abroad. 

 Providing more than 1 million entrepreneurs with free counseling and technical assistance each year through a

network of more than 14,000 counselors. More than 2.5 million entrepreneurs have accessed free online training 

since 2009 through expanded online resources. 

 Helping small businesses expand and compete in foreign markets with a more than 6% increase in the number of 

small businesses exporting from 2009 to 2010 and $60 million in federal-state-local partnership grants – making 

progress toward the five-year goal of doubling exporting through the National Export Initiative.
iv

HIGHLIGHTS OF PRESIDENT OBAMA’S EFFORTS 

TO KEEP AMERICAN SMALL BUSINESSES AND ENTREPRENEURS MOVING FORWARD 

“For the first time since the 1990s, American manufacturers are creating new jobs, which 

is good for companies up and down the supply chain...They’re deciding that if the cost of 

doing business here is no longer much different than the cost of doing business in 

countries like China, they’d rather place their bets on America. They’d rather bet on the 

country with the best colleges and universities to train workers with new skills and 

produce cutting-edge research. They’d rather place their bet on the nation with the 

greatest diversity of talent and ingenuity; the country with the greatest capacity for 

innovation that the world has ever known.”

- President Barack Obama at the Master Lock Company in Milwaukee, Wis., Feb. 15, 2012

 Cutting Taxes for Small Businesses: To date, the President has supported 18 direct tax breaks that bolster small 

business growth. In September 2010, he signed the Small Business Jobs Act, which included eight new small 

business tax cuts that, among other forms of tax relief, extended accelerated bonus depreciation for two million 

businesses, making investment and growth more affordable; made investments in one million small firms 

eligible for zero capital gains taxes; and allowed two million self-employed Americans to deduct their health 

insurance costs when calculating their self-employment taxes. 

 Supporting Small Business Lending: In September 2010, the President established a new Small Business Lending 

Fund to provide capital to qualified community banks and community development loan funds in order to 

PRESIDENT BARACK OBAMA TOURS MASTER LOCK COMPANY IN MILWAUKEE, WISCONSIN, FEB. 15, 2012.
v

encourage small business lending, leading to over $4 billion in funding to more than 330 banks. In addition, the 

President established the State Small Business Credit Initiative to strengthen new and existing state programs 

that support lending to small businesses by making nearly $1.4 billion funds available to over 150 state-run 

programs in 54 states and territories. This initiative is expected to spur up to $15 billion in new lending to small 

businesses. Finally, the President initiated a series of measures that enhanced Small Business Administration 

lending.

 Lowering Health Care Costs: As part of the Affordable Care Act, small businesses with less than 25 full-time 

equivalent employees that provide health insurance may qualify for a small business tax credit of up to 35% to 

offset the cost of insurance. In 2014, the maximum credit increases to 50%.

 Supporting High-Growth Entrepreneurship: President Obama launched Startup America, an all-hands-on-deck 

effort to celebrate, inspire, and accelerate high-growth entrepreneurship throughout the nation. The White 

House Startup America Initiative is a government-wide policy effort to expand access to capital, cut red tape, 

and accelerate innovation. The President’s Startup America Legislative Agenda includes measures to unlock 

capital that were part of the bipartisan Jumpstart Our Business Startups (JOBS) Act. And leaders in the private 

sector have launched the Startup America Partnership, an independent alliance of entrepreneurs, major 

corporations, and service providers that has mobilized over $1 billion in business resources to serve as many as 

100,000 startups over the next three years.

 Boosting Innovation: In September 2011, President Obama signed the America Invents Act, a historic patent 

reform legislation initiative. The act is designed to help American entrepreneurs and business to bring their 

inventions to market sooner, creating new business and new jobs. Representing the most significant reform of 

the Patent Act since 1942, this also gives the U.S. Patent and Trademark Office additional resources to reduce 

patent application waiting times significantly. The act recognizes that the many key industries where the United 

States leads depend on a strong and healthy intellectual property system.

 Strengthening Small Business Protection: The Dodd-Frank Act, signed in July 2010, provided several key reforms 

to aid the financial system and help support small businesses, for example calling for banks to report better 

information on small business lending in order to ensure fair practices. 

 Increasing U.S. Exports through the National Export Initiative: The NEI, established by executive order in March 

2010 to assist the nation in doubling its exports by 2014, helps small businesses confront the unique challenges 

they face in exporting into overseas markets through improving advocacy and trade promotion programs, 

increasing access to export financing for small businesses, facilitating overseas connections for small businesses, 

reducing barriers to trade, and robust enforcement of trade rules. 

 Bolstering Entrepreneurial Development and Education: The Administration has implemented programs to 

connect entrepreneurs with experienced individuals and organizations so that they can further develop their 

businesses and create jobs. 

 Expanding Federal Contracting Opportunities: In April 2010, President Obama signed a Presidential 

Memorandum highlighting the need to provide small businesses with opportunities in Federal contracting. 

Subsequently, agencies have been directed to accelerate payments to small contractors, reducing payment time 

on average from 30 to 15 days, in order to help put money in their hands faster. 

 Treating Businesses Like Customers: In January 2012, the Administration launched an online effort called 

BusinessUSA to reduce the complexity of small business interactions with the federal government. This multiagency effort is jointly headed up by the Small Business Administration and the Department of Commerce to 

ensure that small businesses and exporters find what they need quickly and get consistent information 

regardless of where they begin their search.
vi

Table of Contents

Executive Summary........................................................................................................................................................................ iii

I. An Economy Built to Last Starts With Small Business and Entrepreneurs ................................................................1 

II. Cutting Taxes and Jumpstarting Private Sector Hiring.......................................................................................................4 

III. More Doors, More Dollars: Cutting Red Tape and Improving Access to Capital ...................................................11 

IV. Skills and Training: Building a 21st Century Workforce ................................................................................................20 

V. High Growth Entrepreneurship and Innovation: Giving Startups the Tools to Grow.........................................28 

VI. Federal Contracting Opportunities: A Win-Win for Small Business and Government ................................41 

VII. Small Business Manufacturing .................................................................................................................................................47 

VIII. National Export Initiative: Increasing U.S. Exports ..........................................................................................................55 

IX. Tapping the Potential of Underserved Communities .....................................................................................66 

Appendix: Obama Administration Reports on Small Business and Entrepreneurship .....................................80 

 
1 | P a g e

I. An Economy Built to Last Starts with Small Business and 

Entrepreneurs

Small firms account for half of private sector non-farm employment.

1

Between 1993 and 2010, more 

than half of firms in the private sector had one to four employees, and 98% had under 100 employees. 

Figure 1 demonstrates that the smallest firms had the largest proportionate job losses between the first 

quarter of 2007 and the first quarter of 2011. Similarly, bank financing of small firms fell dramatically 

during the recession and has not returned to pre-recession levels (see Figure 2). The Federal Reserve’s 

Senior Loan Officer Opinion Survey further shows that credit tightened for small firms in 13 consecutive 

quarters between Quarter 1 in 2007 and Quarter 1 in 2010; and, since 2010, that credit standards for 

large firms eased at a faster rate than for small firms.

Small firms are more dependent on banks for financing than larger firms. A number of studies have 

documented the critical relationship between banks and small firms. Among other things, this ratio is 

higher for small firms than for larger firms, because larger firms have access to other forms of finance 

including public debt and equity markets. Recent research shows that in recessions involving banking 

crises the likelihood of becoming unemployed is greater in sectors more dependent on bank and other 

forms of external finance.

Figure 1: Private Sector Job Recovery by Firm Size, 2007-2011

88

90

92

94

96

98

100

102

88

90

92

94

96

98

100

102

2007:Q1 2008:Q1 2009:Q1 2010:Q1 2011:Q1

2007:Q4 = 100

Note: Small firms have fewer than 500 employees. Shaded area denotes recession.

Source: Bureau of Labor Statistics, Business Employment Dynamics.

Large firms

Small firms

2011:Q3
2 | P a g e

Figure 2: Small Business Commercial and Industrial Loans, 2007-2010

During the crisis in 2009, the effort to increase the amount of capital invested in financial institutions 

and other entities to support small-business lending evolved along two lines: investment of capital 

directly into financial institutions that provide the majority of small business loans, and additional 

funding to new and existing programs that provide credit support to small business loans. In terms of 

direct investment that strengthened the small-business lending capacity of these institutions, the 

Administration invested over $11 billion through multiple programs to over 1,000 financial institutions, 

most of which were small banks, but also included credit unions, community development financial 

institutions (CDFIs), and business loan funds.2

The programs that provide small-business credit support include the new State Small Business Credit 

Initiative (SSBCI), which is expected to support $15 billion in new small business lending, as well as 

existing programs, such as loan-guarantee programs housed in the Small Business Administration (SBA), 

the Department of Agriculture (USDA), and the Export-Import Bank (Ex-Im Bank). Other Administration 

programs also helped provide small firms with access to capital at a critical period. For example, the 

Financial Stability program was modified in 2009 to protect auto parts suppliers, many of which are 

small businesses, to ensure that they would be paid for any parts they shipped, regardless of the fate of 

the recipient car company.

By the end of FY2011, these credit access programs supported more than $150 billion in outstanding 

small business loans. As a result, loans supported by government credit access programs account for 

approximately 5% of total outstanding small business loans in 2011, compared to 2% of outstanding 

loans in 2008.3 The marked increase may be in part due to the introduction of two programs 

0

5

10

15

20

25

30

35

40

0

50

100

150

200

250

300

350

400

2007 2008 2009 2010 2011

2011:Q4

Note: Loans with original amounts of less than $1 million.

Source: Federal Deposit Insurance Corporation, Statistics on Banking. 

Billions of dollars Millions

Value of loans 

(left axis)

Number of loans 

(right axis)
3 | P a g e

administered by Treasury – the Small Business Lending Fund (SBLF) and the SSBCI – and increases in the 

scope of aforementioned loan-guarantee programs. In fact, as of the beginning of January, institutions 

participating in the SBLF have significantly increased lending to small businesses, that is, roughly $4.8

billion over their baseline. 

Venture capital is another important source of financing of young firms, which are typically small. 

Despite increases each year, neither the number nor the value of deals for venture financing has 

returned to pre-crisis levels. The number of deals fell from 4,111 in 2008 to 3,065 in 2009 before 

reaching 3,673 in 2011. Deals totaled $30.6 billion in 2008, $19.8 billion in 2009, and $28.4 billion in 

2011.4 To provide an incentive for seed-stage investment, the Administration has proposed to make the 

capital gains exclusion permanent for qualified small business investments. 

These initiatives have been instrumental in lessening the impact of the financial crisis and accelerating 

the economic recovery.
4 | P a g e

II. Cutting Taxes and Jumpstarting Private Sector Hiring

President Obama firmly believes that entrepreneurs and small businesses are engines of economic 

growth, and that their investments and innovation have been at the forefront of our economic recovery. 

That’s why he and his Administration have focused on strengthening small businesses by signing into law 

18 tax cuts for small businesses, ranging from 100% expensing to the small business health tax credit, to 

the temporary tax exclusion of capital gains from key small business investments. 

American Recovery & Reinvestment Act (ARRA) Act

Small Business Jobs Act

Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act

Temporary Payroll Tax Cut Continuation Act

Middle Class Tax Relief and Job Creation Act

Affordable Care Act

Hiring Incentives to Restore Employment (HIRE) Act

VOW to Hire Heroes Act

Additionally, through the American Jobs Act and To-Do List for Congress initiative, the President has 

pushed Congress to go further still in providing targeted tax relief to small businesses that will keep 

more cash in their pockets so they can grow and hire. 

Tax Incentives that Reduce the Cost of New Investments

President Obama believes that business investment in capital is a key driver of economic growth, both 

by supporting demand today, as well as by laying the groundwork for future success. For this reason, 

he has proposed and signed into law a number of provisions that encourage and support new small 

business capital investment.

BY THE NUMBERS

 18 direct tax breaks supported to spur small business growth, including:

100% expensing of new investments in 2011

Zero taxes on capital gains from key small business investments

Covering up to 35% of employer’s contributions to employee health insurance premiums 

Doubling the deduction for entrepreneurs’ startup expenses 

Tax relief for businesses that hire recently unemployed workers and veterans with 

service-connected disabilities

 Additional proposed tax relief, including:

A 10% income tax credit for payroll added through new hires or wage increases

Extension of 100% expensing through 2012

Making permanent the temporary small business capital gains exemption
5 | P a g e

Generally, businesses are allowed to recover the cost of capital expenditures over time through 

depreciation expense. Depreciation deductions are intended to assist in the proper measurement of 

taxable income by reflecting predictable reductions in the value of installed income-producing 

property that occur due to normal wear-and-tear and obsolescence. 

As part of the Recovery Act, the President allowed small businesses to recover the costs of certain 

capital expenditures faster than under the ordinary schedule, by depreciating 50% of the cost in the 

year the property was placed in service. The President’s Small Business Jobs Act then increased the 

amount of investment small businesses could immediately write off in 2010 and 2011 to $500,000 for 

qualifying investments and raised the total phase out limit to $2 million.

Following this, in December 2010 the 

President signed into law legislation that 

provided immediate 100% expensing of 

investment costs. This allowed 

businesses and investors to deduct 

immediately the full cost of most 

investments in machinery, equipment, 

other qualifying property rather than 

having to depreciate them over time – a 

benefit that was estimated to generate 

over $50 billion in additional investment 

last year. 

By allowing an immediate deduction (or 

“expensing”) of investment costs, the 

tax relief signed into law by the President lowers the effective tax rate on income derived from 

business investments. This not only benefits the small businesses that are newly able to make capital 

investments that will allow them to expand, but also encourages additional demand for capital goods 

and support for the businesses that manufacture those goods.

Furthermore, by providing an immediate window of opportunity in which the costs of investing in 

qualified property are lower, a temporary expensing policy encourages firms to shift investment that 

might otherwise be put off to later years into the temporary, lower cost window. (This incentive is 

especially powerful for investments in longer-lived assets.) This investment demand shifts speeds and 

enhances the overall economic recovery and job growth. In fact, a study by two University of Michigan 

economists found that the 2002 and 2003 bonus depreciation policies – which provided a smaller 

incentive for investment than the President’s proposal – had “noticeable effects on the economy,” 

with “capital that benefited substantially from the policy” seeing “sharp increases in investment.” 5 

Additionally, this proposal helps simplify accounting for small businesses since, when expensing, they 

take the deduction up front and do not have to track depreciation.

In December 2010, the National Federation of Independent Business called expensing a “big victory” 

for small business: “Bottom line – just about every small business can write-off the full amount of 

investments they want to make in 2010 and 2011.” 6 In a 2010 letter signed by the U.S. Chamber of 

Commerce, more than 80 business groups – representing industries from aerospace and wireless to 

builders, contractors, and retail stores – wrote that “...bonus depreciation will encourage companies of 

all sizes to invest in newer, more efficient, and more environmentally-friendly equipment, which will 

How 100% Expensing Encourages New Business 

Investment

Consider a small business that makes $1 million of additional 

investments in new equipment that typically have a 7-year recovery 

period. Previously, the business would have been able to deduct just 

a fraction of its investment each year – about $143,000 in the first 

year, for example. At a tax rate of 35%, that would reduce the 

business’ taxes in the first year by $50,000. By contrast, under 

immediate 100% expensing, the business could deduct all $1 million 

in the first year – reducing the business’ taxes by $350,000. 

Not only does this provide the business with more cash on hand today 

– money that can be used to expand and hire new workers – but 

because businesses value cash today more than cash in the future, 

immediate expensing also makes the investment more attractive.
6 | P a g e

help large and small businesses alike.” 7

Additionally, the President is proposing to extend for another year the 100% expensing provision, by 

allowing all firms to continue to claim an immediate deduction on investments in key plants and 

equipment in 2012.

To provide additional incentive in research and development and advanced technology manufacturing, 

the President is also proposing to make the R&D credit permanent and increase the alternative 

simplified credit rate from 14% to 17% and to provide and enhanced deduction amount under the 

Domestic Production Deduction for taxpayers engaged in the production of certain advanced 

technology property.

Promoting Job Creation by Lowering the Cost of New Hires

The President has proposed or signed into law a number of tax breaks that would provide targeted relief 

to small businesses that are expanding and investing in their workforce.

Small Business Hiring Income Tax Credit. In his most recent budget proposal, the President 

proposed a 10% income tax credit on total wages in 2012 in excess of those in 2011 – providing firms 

with an incentive to increase wages or work hours for existing employees as well as hire new employees 

at a higher wage. The credit would be available to all firms – as well as nonprofits – but would be capped 

at $500,000 per business to incentivize small business hiring. Firms would be able to claim the credit on 

a quarterly basis, getting support out to businesses quickly and providing an immediate early incentive 

to hire and increase payrolls. 

PRESIDENT BARACK OBAMA MEETS WITH ECONOMIC ADVISORS IN THE ROOSEVELT ROOM OF THE WHITE HOUSE,

NOV. 7, 2011.
7 | P a g e

Under the President’s proposal, nearly two million companies that make new hires or increase wages 

would receive a 10% income tax credit on their new payroll, encouraging over $200 billion in new hiring 

and pay raises. The Congressional Budget Office recently found this type of targeted tax relief to be the 

single most effective business tax option for boosting hiring and spurring economic growth.

A key plank of President Obama’s American Jobs Act was the proposal to offer a full payroll tax holiday 

in addition to the 3.1% payroll tax cut for all firms. The President’s plan would provide a direct incentive 

to encourage firms to hire additional employees or raise wages for their current employees. The 

National Federation of Independent Business has said that such a payroll tax holiday for small 

businesses “would ... [help] struggling businesses reduce costs,” and that “eliminating the payroll tax can 

reduce unemployment and keep people working during a period of slowed economic growth.” 8 

Moreover, targeted tax relief for small businesses is one of the five to-do items the President has called 

on Congress to pass as part of a concrete plan that creates jobs and helps restore middle class security.

By providing targeted tax relief to the businesses that are expanding and making investments in their 

workforce, the Small Business Hiring Credit will help spur economic growth and job creation and 

strengthen the recovery. 

New Tax Credit for Hiring Unemployed Workers. This credit could provide up to $10.4 billion in tax 

relief for businesses that hired recently unemployed workers by providing a tax credit equal to $1,000 

for each eligible employee through 2010 who was retained for more than one year. 

New Tax Credits for Hiring Unemployed Veterans. The Returning Heroes Tax Credit provides a tax 

incentive of up to $5,600 for businesses that hire unemployed veterans, including the long-term 

unemployed. The Wounded Warrior Tax Credit provides a tax incentive of up to $9,600 for businesses 

that hire veterans with service-connected disabilities.

Elimination of Capital Gains Taxes on Key Small Business Investments

Because of the President’s initiatives, over one million small businesses are now eligible to receive 

investments this year that, if held for five years or longer, could be completely excluded from any capital 

gains taxation.

New Temporary Tax Exclusion for Capital Gains. The President’s Recovery Act temporarily 

increased to 75% (up from 50%) the amount of long-term capital gains from certain small business stock 

that can be excluded from taxes. The September 2010 Jobs Act eliminated these taxes altogether for 

stock acquired between then and January 1, 2012, providing an immediate incentive for increased 

investments in small businesses. 

Proposal to Make Permanent the Expanded Elimination of Capital Gains Taxes on Key Small 

Business Investments. The President is proposing to make permanent the tax cut to eliminate taxes 

on capital gains on certain stock investments in small businesses. In addition, this tax cut would be 

expanded so that it would also be allowed under the Alternative Minimum Tax (AMT) and to increase 

the “rollover” period for qualified small business stock investments, making the permanent elimination 

of capital gains taxes available to more investors.
8 | P a g e

Helping Small Businesses Provide Affordable Health Care

Relative to their larger counterparts, small businesses have traditionally been severely disadvantaged by 

the current U.S. health care system — having to pay as much as 18% more per worker than large firms 

for the same health insurance policy. Because of the difficulties in the small group employer-sponsored 

insurance market, many employees of small firms lost access to employer-sponsored insurance between 

2000 and 2010 (see Figure 3). 

Figure 3: Percent of Private Sector Workers Receiving Offers of Health Insurance by Establishment 

Size, 2010

Market Reforms that Level the Playing Field for Small Employers. In 2014, major reforms in the 

small group health insurance market will mean that employers purchasing health insurance will no 

longer be subject to higher premiums if an employee becomes sick. 

New Small Business Healthcare Tax Credit. The Affordable Care Act created a new small business

health care tax credit, effective starting in 2010, which covers up to 35% of an eligible employer’s 

contributions to employee health insurance premiums. The credit increases to 50% in 2014. For tax year 

2011 alone, the tax credit will benefit an estimated two million workers at an estimated 360,000 small 

employers nationwide. Moreover, the President’s FY 2013 budget calls for expanding and simplifying 

12.8

9.8

7.2

7.8 70.8

0%

20%

40%

60%

80%

100%

2-9

employees

Source: Medical Expenditure Panel Survey 

100+

employees

50-99

employees

10-24

employees

25-49

employees

million workers

80%

41%

65%

79%

88%

98% Percent of workers 

receiving an offer in 2000

53%

75%

85%

92%

99%

Percent of workers 

receiving an offer in 

2010
9 | P a g e

the credit. If the President’s proposal were enacted, the tax credit would benefit nearly four million 

workers and half a million employers in 2012, while providing an additional $14 billion in tax credits over 

the next ten years.

New Deduction for Healthcare Expenses for the Self Employed. Building on the Affordable Care 

Act, the Small Business Jobs Act of 2010 allowed self‐employed entrepreneurs to deduct the cost of 

health insurance in 2010 for themselves and their family members in calculating their self‐employment 

taxes, providing a significant tax cut this year for entrepreneurs purchasing health insurance for 

themselves and their families.

Supporting Entrepreneurs and Startups

The Administration’s tax proposals offer additional supporting to entrepreneurs starting new 

businesses.

Doubling the Deduction for Entrepreneurs’ Startup Expenses. The Small Business Jobs Act 

temporarily increased the amount of startup expenditures entrepreneurs can deduct from their taxes 

from $5,000 to $10,000, offering an immediate incentive for aspiring entrepreneurs to invest in starting 

up a new small business. Additionally, the President’s budget calls for making this increased deduction 

amount permanent, providing additional incentive for investing in starting up a new small business.

Simplifying Tax Credits. The Treasury Department is working on a set of regulatory reforms to the 

existing New Markets Tax Credit that will make it easier for community development entities to attract 

private sector funds for investment in startups and small businesses operating in lower‐income 

communities. The reforms, which are expected to go into effect later this year, will relax the 

reinvestment requirements for community development entities investing in certain operating 

businesses.

Additional Support during a Weak Economy

The President has enacted a number of tax provisions that provide additional relief to help small 

businesses affected by a weak economy.

Five Year Carryback of Net Operating Losses. Small businesses with deductions exceeding their 

income in 2008 were able to use an enhanced net operating loss tax provision to get a refund of taxes 

paid in prior years. This provision enabled small businesses with a net operating loss (NOL) in 2008 to 

elect to offset this loss against income earned in up to five prior years. Typically, an NOL can be carried 

back for only two years. 

A Five Year Carryback of General Business Credits. Building on temporary Recovery Act measures, 

the Small Business Jobs Act allowed certain small businesses to “carry back” their general business 

credits to offset five years of taxes—providing them with an instant tax break—while also allowing 

these credits to offset the Alternative Minimum Tax, reducing taxes for these small businesses. 

Estimated Tax Payment Relief. The President signed into law legislation that provided temporary 

estimated tax payment relief that has allowed small businesses to keep needed cash on hand. 
10 | P a g e

Simplifying Taxes for Small Businesses and Reducing the Burden of Tax 

Compliance

When the Administration released its framework for business tax reform earlier this year, simplifying 

taxes for small businesses was one of its key principles. 

Tax Relief and Simplification for Cell Phone Deductions. The Small Business Jobs Act changed tax 

rules to simplify deductions for business cell phones—making it easier for small business owners to 

receive deductions that they are entitled to without burdensome documentation. 

Limitations on Penalties for Errors in Tax Reporting that Disproportionately Affect Small 

Business. The bill changed the penalty for failing to report certain tax transactions from a fixed dollar 

amount—which was criticized for imposing a disproportionately large penalty on small businesses in 

certain circumstances—to a percentage of the tax benefits from the transaction for penalties assessed 

after December 31, 2006 (subject to maximum and minimum penalty amounts). 

Simplifying the Tax Code for America’s Small Businesses. Tax reform should make tax filing simpler 

for the overwhelming number of small businesses and entrepreneurs so that they can focus on growing 

their businesses rather than filling out tax returns. As part of business tax reform, the President is calling 

for getting rid of complicated depreciation schedules for most small businesses, expanding simple and 

easy to use cash accounting, and simplifying tax returns for millions of Americans by streamlining the 

home office deduction.

PRESIDENT BARACK OBAMA SIGNS H.R. 3630 - MIDDLE CLASS TAX RELIEF AND JOB CREATION ACT OF 2012 IN 

THE OVAL OFFICE, FEB. 22, 2012.
11 | P a g e

III. More Doors, More Dollars: Cutting Red Tape and Improving 

Access to Capital 

Access to capital is critical to the long-term success of America’s small businesses. When credit markets 

froze during the height of the financial crisis in 2008, small businesses felt the combined effects of 

diminished access to capital and falling sales. Mindful of this relationship, this Administration has 

implemented and promoted a range of initiatives to provide new and small businesses with the capital 

they need to grow.

Since taking office, President Obama has focused on significantly increasing small business lending 

programs to ensure capital is available when small businesses need it most. In addition, the 

Administration has streamlined loan processes, making it easier and faster for small businesses to apply 

for a loan. 

The Administration continues to build on these successful programs. Through new policies, programs, 

and legislative initiatives, the Obama Administration has achieved a “More Doors, More Dollars” 

approach to small business lending. Now, agencies and community banks can meet small businesses’ 

needs better than ever before, with more points of access, improved loan turnaround times, and 

increased loan amounts and loan volumes.

BY THE NUMBERS

 Supporting nearly $80 billion in loans to more than 150,000 small businesses since January 

2009; FY 2011 was a record year with $30 billion in lending supported through the 7(a) and 504 

programs.

 Investing over$ 4 billion in 332 banks and community development loan funds through the 

new Small Business Lending Fund. These institutions have increased their lending to small 

businesses by $4.8 billion over baseline levels with this investment – with 68% of participants 

increasing lending by more than 10%.

 The Obama Administration’s historic government-wide review of regulations on the books –

the “regulatory lookback” – has already identified more than $10 billion in savings in the next 

five years, with far more savings to come. Many of these regulations focus on small businesses: 

for example the Department of Defense improved small businesses’ cash flow by issuing a new 

rule to accelerate payments on contracts to as many as 60,000 small businesses.

 Since the start of the Administration, SBA has provided nearly $775 million in support of 6,822 

businesses through its disaster loan program.

 Since the start of the Administration, the community development financial institution (CDFI)

fund, through the CDFI program and the New Markets Tax Credit, has been responsible for 

supporting more than 155,000 full-time jobs, nearly 37,000 construction jobs, and financing 

over 18,000 businesses and microenterprises.
12 | P a g e

At the same time, The Obama Administration has taken a series of historic steps to eliminate 

unnecessary costs and to ensure that our regulatory system is cost-effective, evidence-based, and 

modern – demonstrating that we don’t have to sacrifice Americans’ health and safety to ensure a level 

playing field for small businesses.

More Dollars: Increasing Access to Capital

Through a number of initiatives, the Administration has significantly increased funding for small business 

lending. 

New Lending and Credit Initiatives

A new Small Business Lending Fund (SBLF) and the State Small Business Credit Initiative (SSBCI) were 

part of the Small Business Jobs Act that the President signed into law in September 2010.

Small Business Lending Fund. The President requested a new SBLF that was established by the Small 

Business Jobs Act. This legislation created a dedicated fund that encourages lending to small businesses 

by providing low cost capital to qualified community banks and community development loan funds 

(CDLFs) with assets of less than $10 billion. The purpose of the SBLF is to encourage Main Street banks 

and small businesses to work together, help create jobs, and promote economic growth in communities 

across the nation. The Treasury Department invested over $4 billion in 332 institutions through the SBLF 

program. Collectively, these institutions operate in over 3,000 locations across 48 states and five 

territories. As of December 31, 2011, institutions participating in SBLF have made important progress in 

increasing their small business lending, helping to support small businesses and local economies across 

the nation. In total, SBLF participants have increased their small business lending by $4.8 billion over a 

$36 billion baseline, and by $1.3 billion over the prior quarter. Increases in small business lending are 

widespread across SBLF participants, with 84% of participants having increased their small business 

lending over baseline levels. A substantial majority of SBLF participants—more than 68%—have 

increased their small business lending by 10% or more. As noted in the President’s 2013 budget, 

investments made through the SBLF are expected to generate a positive return (or budget savings) of 

over $80 million.

State Small Business Credit Initiative. The SSBCI was funded with $1.5 billion from the Jobs Act to 

support state and local programs that provide lending to small businesses and small manufacturers that 

are creditworthy but are not getting the loans they need to expand and create jobs. SSBCI is expected to 

help spur at least $15 billion in new private financing through 2016. The Treasury Department has 

already approved funding through SSBCI to more than 150 state and local small business programs, 

including collateral support programs, Capital Access Programs (CAPs), loan participation programs, loan 

guarantee programs, and state-sponsored venture capital programs. As of December 31, 2011, these 

state and local programs have already generated more than $240 million in new small business financing 

thanks to SSBCI support. 

Support for Community Development and Small Business Commercial Real Estate

504 Refinance Program. The 504 Refinance Program is a temporary program to help small business 

owners facing maturity of commercial mortgages or balloon payments before December 31, 2012, 

refinance their existing owner-occupied commercial real estate loans through the SBA-guaranteed 504 

loan program. Congress authorized the program to provide up to $15 billion in lending support over two 
13 | P a g e

years (FY2011-FY2012). Access to SBA guaranteed mortgage refinancing options helps small businesses 

avoid foreclosure, keep their doors open and save hundreds of thousands of jobs. As of March 31, 2012 

this program has produced over 1,100 approved loans resulting in over $2.1 billion in supported dollars, 

with most of this activity taking place the past five months as the program has really taken speed.

Community Development Financial Institutions Fund. Through monetary awards and the 

allocation of tax credits, the CDFI Fund helps promote access to capital and local economic growth in 

urban and rural low-income communities across the nation. From 2009 to 2011, the CDFI Fund made 

770 awards totaling over $600 million enabling locally-based organizations to further goals, such as

economic development (job creation, business development, and commercial real estate development); 

affordable housing (housing development and homeownership); and community development financial 

services (provision of basic banking services to underserved communities and financial literacy training). 

Many of the CDFIs are providing microenterprise loans, small business loans and loans to nonprofits

working in some of the country's most distressed communities. Additionally, The CDFI Fund modified its 

application and compliance requirements under the New Markets Tax Credit (NMTC) program to 

encourage more investments of equity in businesses. From 2009 to 2011, $12 billion in NMTC were 

made available to underserved communities. Furthermore, through the new SBA Community Advantage 

program, CDFIs are now able to lend to small businesses through SBA’s 7(a) program. Since the start of 

the Administration, the CDFI Fund, through the CDFI program and the NMTC, is responsible for 

supporting more than 155,000 full-time jobs, nearly 37,000 construction jobs, and financing over 18,000 

businesses and microenterprises.

Community Development Capital Initiative. Treasury’s Office of Financial Stability launched the 

Community Development Capital Initiative (CDCI) to provide low-cost capital to depository CDFIs, 

including banks, thrifts, and credit unions. The program was designed to recognize CDFIs’ unique, 

mission-oriented focus and their success in reaching underserved communities. CDCI investments were 

made at a dividend rate of 2%. To encourage repayment, while recognizing the unique circumstances 

facing CDFIs, the dividend rate under CDCI is low initially and will gradually increase to 9% after eight 

years. CDCI completed funding on September 30, 2010. $570 million was disbursed to 84 financial 

institutions in 26 states, the District of Columbia, and Guam.

PRESIDENT BARACK OBAMA MEETS WITH HIS SBA ADMINISTRATOR KAREN MILLS 

AND THE REST OF HIS CABINET AT THE WHITE HOUSE, APR. 26, 2012.
14 | P a g e

Increased SBA Lending

In 2011, loans supported by the Small Business 

Administration hit an all-time high of $30 billion, 

largely due to loan enhancements enacted through 

the Small Business Jobs Act. As of March 30, 2012 

SBA approved more than $11.6 billion in Jobs Act 

loan guarantees, which supported just under $14.5 

billion in lending to small businesses. Since 

enactment of the Jobs Act, SBA 7(a) and 504 

programs have assisted nearly 21,000 small 

businesses. 

Reducing Fees and Raising Loan Program 

Guarantees. The Recovery Act implemented 

reduced fees for SBA’s two largest loan programs, 

7(a) and 504, and also raised the guarantees on 

SBA’s 7(a) loan program. As of September 30, 2010 

SBA approved $22.6 billion in Recovery Act loan 

guarantees, which supported $30.4 billion in 

lending to small businesses. From February 17, 

2009 to September 30, 2010, weekly SBA loan 

dollar volumes rose more than 90% in the 7(a) and 

504 programs compared to the weeks preceding 

the Recovery Act’s passage. Overall, more than 

63,500 small businesses received SBA loans with 

Recovery Act enhancements.

Record Performance Continues for the Small 

Business Investment Company Program. At a 

time when capital was scarce for small business, 

financing from the SBIC growth capital program has provided a record $7.48 billion under this 

Administration, from January 2009 to March 2012, to help small businesses grow and create jobs.

The FY 2011 investment volume is the highest single-year volume in the over 60-year history of the SBIC 

debenture program, achieved through an increased number of new SBIC licenses, decreased license 

processing times, and continued dramatic increases in initial capital to new funds. 18 new debenture 

SBIC licensees were issued in FY 2011, continuing the growth that commenced in FY 2010 and well 

exceeding average of 10 debenture licenses in the four years preceding the Administration. SBIC 

debenture license processing times were maintained at 5.9 months in FY 2011, a nearly 54% decrease 

from an average of 12.8 months in 2009.

In FY 2011, the SBA issued $1.83 billion in new commitments to all SBICs, facilitating the $2.83 billion in 

financing for small businesses investments. Since the start of President Obama’s Administration, 2,953 

small businesses were financed, including 32% of which were in low-to-moderate income areas or in 

minority or women-owned businesses. 

$1 Billion Impact Investment Fund. SBA will provide guarantees of up to $1 billion over five 

years to those funds that invest growth capital in companies located in underserved 

Recovery Act Helps Ohio Manufacturer Create 

Jobs

In September 2010 SBA approved a $630,350 

Recovery Loan Act Loan (504) for BDG Wrap Tite, Inc. 

in Solon, Ohio as part of a $1,500,000 project to 

purchase and renovate a building that had been 

derelict for three years. The building had become an 

eyesore for the neighborhood. The renovations that 

Wrap Tite had made converted the derelict building 

into a “Green Building” with passive heating and 

passive lighting.

The purchase enabled Wrap Tite to expand its 

production and hire additional workers. Prior to 

move, the company employed 14 employees and at 

the time of the press conference (September 20, 

2011) with the Administrator and the Vice President 

the company employed 23. As of April 2012 the 

company employs 35 people and is looking to hire an 

additional 3 to 5.

Wrap-Tite, Inc manufactures and sources flexible 

packaging solutions and poly bags covering a wide 

range of applications. It is a leading provider of 

converted stretch films, reclosable poly bags, tapes, 

mailers, packing slip envelopes, and other related 

packaging items. Wrap Tite adds value by buying 

large rolls of plastic film and tap, and cutting it down 

to sizes that its commercial customers need. Wrap 

Tite’s customer base is large and primarily consists of 

packaging distributors and catalogue companies. 
15 | P a g e

communities. The $1 billion will include investing in economically distressed areas as well as

those companies in emerging sectors such as clean energy and education technology. SBA will 

provide up to a 2:1 match to private capital raised by these funds, partnering with private 

investors to target “impact” investments. In 2011, SBA licensed the first Impact Investment Fund 

in Michigan, providing up to $130 million in capital to high-growth businesses. In 2012, SBA 

licensed the second Impact Fund with a national focus on growth-stage clean-tech and positive 

impact companies in targeted clean energy businesses. 

$1 Billion Early-Stage Innovation Fund. Early-stage companies face difficult challenges 

accessing capital, particularly those without the necessary assets or cash flow for traditional 

bank funding. For high-growth companies, the gap is particularly acute in the so called “Valley of 

Death,” an industry term for financing rounds between $1 million to $4 million. Over the past 

four years, only 6% of all venture capital has been deployed in that stage, with 70% of the 

financings going to only three states: California, Massachusetts and New York. The Innovation 

Fund will target this gap and provide up to a 1:1 match to private capital raised by early stage 

seed funds. 

Permanent Expansion of SBA Loan Sizes. The Small Business Jobs Act fulfilled the President’s pledge 

to permanently increase SBA loan limits, helping ensure that small businesses that are in a position to 

expand and create jobs have access to the capital they need. The Jobs Act increased the maximum 7(a) 

loan size from $2 million to $5 million; raised the Export Express loan limit to $500,000; increased the 

maximum 504 loan size from $1.5 million to $5 million for regular projects, and from $2 million to $5 

million for projects that meet public policy objectives; increased manufacturing and green energy 

projects loan sizes from $4 million to $5.5 million; and increased the maximum Microloan size from 

$35,000 to $50,000. The Jobs Act also temporarily increased working capital loans from $350,000 to $1 

million. These expansions have resulted in over 4,500 loan approvals totaling over $10.6 billion in 

supported dollars (through March 2012) that previously would not have been awarded.

Figure 4: Number and Size of SBA Loans Approved, 2006-2011

40

50

60

70

80

90

100

110

120

10

12

14

16

18

20

22

24

26

28

30

2006 2007 2008 2009 2010 2011

Value of Loans

Number of Loans

Billions of dollars 

Source: Small Business Administration, Agency Financial Report, 2011.

Thousands of loans
16 | P a g e

Opening Doors: More Lenders and More Points of Access

The Administration has increased the points through which small businesses can obtain information and 

access to capital programs. Because navigating these multiple points of entry can often be difficult, the 

Administration has also launched a new initiative, called BusinessUSA, to centralize information. This 

“no wrong door approach” allows businesses of all sizes a single point of entry to access these 

opportunities. 

BusinessUSA: BusinessUSA is a one-stop, central online platform where businesses of all sizes can 

access information about available federal programs without having to waste time navigating the 

federal bureaucracy. BusinessUSA adopts a "No Wrong Door" policy that uses technology to quickly 

connect businesses to the services and information relevant to them, regardless of which agency's 

website, call center, or office they go to for help.

Increased Points of Access. Last year, 3,786 financial institutions made an SBA guaranteed loan, up 

41% from the start of the Administration. This group included over 1,200 lenders that had not made a 

loan in the previous two fiscal years. Between fiscal years 2009 and 2011: 

• More than 3,600 community banks made a 7(a) loan 

• Nearly 260 community banks made a 504 loan

• More than 160 non-profit institutions made a microloan loan

Jumpstart Our Business Startups Act (JOBS Act). On April 5, 2012, President Obama signed the 

bipartisan Jumpstart Our Business Startups Act (JOBS), enacting key ideas the President proposed last 

fall to help our small businesses and startups access capital they need to grow and create jobs. This new 

law creates an enhanced environment for growth.

Crowdfunding. The JOBS Act provides certain exemptions from Securities Exchange 

Commission (SEC) requirements in order to allow entrepreneurs to raise up to $1 million per 

year through an SEC-registered crowdfunding portal, freeing people to invest a percentage of 

their income in these businesses. For investors with an income of less than $100,000, 

investments will be capped at the greater of $2,000 or 5% of income. For investors within an 

income of more than $100,000, investments will be capped at 10% up to $100,000. The 

crowdfunding provision also requires crowdfunding portals to provide investor protection, 

including investor education materials on the risks associated with small issuers and illiquidity.

Emerging Growth Companies and Initial Public Offerings. The JOBS Act also addresses 

some of the barriers for small businesses ready to make their initial public offering (IPO). These 

changes to the SEC rules include measures to streamline the process, making it easier to reduce 

the cost and complexity. For example, JOBS Act increases to $50 million from $5 million the 

annual public offering threshold for companies to be exempt from full SEC filing requirements 

(Regulation A), thereby allowing more companies to use the SEC's simplified process. Within two 

years of enactment and every two years thereafter, the SEC would be required to review the 

threshold amount and increase it as necessary.

Increased Private Lender Commitments. In September 2011, SBA announced commitments by 13 of 

the largest banks in the country to increase lending for small businesses by a combined $20 billion over 

the next three years. The new small business lending commitments represent an increase of 10% or 

more beyond the current levels of lending at many of the participating banks. The 13 private lenders 
17 | P a g e

How Community Advantage Helps 

Mission-Focused Lenders Make More

Loans

In February of 2011, SBA rolled out a new 

initiative aimed at increasing the number of 

loans in underserved communities called the 

Community Advantage loan program. At the 

same time, Bitterroot Gymnastics in Missoula, 

Montana, was looking to expand. They had 

outgrown their existing facility and needed a 

larger facility, but were having difficulty 

securing a loan because of their lack of 

collateral. They went to the Montana 

Community Development Corporation, one of 

the SBA’s newly approved Community 

Advantage lenders, to seek help. Bitterroot 

Gymnastics received a Community Advantage 

SBA loan in December of 2011. They have since 

renovated a vacant industrial space and 

reopened with a larger, more usable space. 

are: Wells Fargo, Key Corp, Regions Financial Corporation, Huntington Bancshares Incorporated, M&T 

Bank Corporation, JP Morgan Chase & Company, Citizens Financial Group, Inc., Citigroup, Bank of 

America Merrill Lynch, TD Bank, US Bank, PNC Bank NA., and Sun Trust Banks, Inc.

Ensuring Underserved Communities Have Equal Access to Capital. While credit markets have 

improved, there remain gaps for underserved communities and for small loans. To address this, the 

Administration added two new initiatives that are aimed at increasing access to capital for small 

businesses and entrepreneurs in underserved communities:

• Small Loan Advantage. Small Loan Advantage offers more than 600 Preferred Lenders, 

including many of the nation’s largest lenders, the opportunity to put 7(a) loans under $250,000 

into the hands of small businesses and entrepreneurs through a streamlined application 

process, while also having the regular 7(a) Government guarantee of up to 85%. The program is 

designed to increase availability of vital smaller dollar loans for small businesses in underserved 

communities, and it is working: as of March 31, 2012, there have been over 250 loans totaling 

almost $30 million since the program’s inception in February 2011. 

• Community Advantage. The Community 

Advantage lending program expands the points 

of access small business owners have for 

getting loans by opening this portion of SBA’s 

7(a) loan program to “mission-focused” 

financial institutions, including Community 

Development Financial Institutions, Certified 

Development Companies and nonprofit 

microlending intermediaries for small dollar 

loans. Community Advantage leverages the 

experience these institutions already have in 

lending to minority, women-owned and startup

companies in economically challenged markets, 

along with their management and technical 

assistance expertise. The program offers the 

same streamlined application process and 

regular 7(a) guarantees as Small Loan 

Advantage and increases the number of 

available SBA guaranteed lenders focused on 

serving entrepreneurs in underserved 

communities. As of March 31, 2012, there have 

been 70 loans totaling almost $10 million since 

the program’s inception.

Intermediary Lending Pilot Program. The Small Business Jobs Act of 2010 established a 

three year pilot program to provide direct loans to eligible nonprofit intermediaries that help 

small businesses that need loans up to $200,000. To date, 20 local nonprofits have received 

loans of up to $1 million each. These funds are being used to make smaller loans to startup, 

newly established, and growing small businesses. A second round of the program is underway 

for this year, which will provide funding to another 20 intermediaries.
18 | P a g e

Financing Innovation through Microlending. These loans (up to $50,000) are designed for 

small businesses needing small scale financing and technical assistance for startup or expansion. 

They are delivered through intermediary lenders, which are nonprofit community-based 

organizations with experience in lending and technical assistance. There have been nearly 

12,000 loans totaling over $140 million to microbusinesses since January 2009.

Cutting Red Tape through Smarter Regulations

Smart regulations can increase business confidence and spur investment, while poorly designed ones 

can burden businesses with unjustified costs. This Administration’s regulatory record demonstrates that

we don’t have to sacrifice Americans’ health and safety to ensure a level playing field for small 

businesses and drive growth, job creation, and innovation.

The Obama Administration has taken a series of historic steps to eliminate unnecessary costs and to 

ensure that our regulatory system is cost-effective, evidence-based, and modern. On January 18, 2011, 

the President issued Executive Order 13563, which requires that whenever agencies issue new 

regulations, they ensure that the benefits justify the costs, select the least burdensome alternatives, 

consider public participation, harmonize and simplify rules, adopt flexible approaches to rulemaking, 

and ensure that regulations are driven by real science. 

The Executive Order also called for a historic government-wide review of regulations on the books—the 

“regulatory lookback”—to streamline, modify, or repeal regulations and reduce unnecessary burdens 

and costs. In August 2011, over 20 agencies issued their final plans and detailed the regulations they 

plan to revisit. The plans include over 500 initiatives that will reduce costs, simplify the system, and 

eliminate redundancy and inconsistency – which means many billions of dollars in savings for American 

businesses. 

The Obama Administration’s approach to smart regulation has resulted in more benefits, fewer rules, 

and minimized costs: 

Fewer Rules. The number of final rules reviewed by the White House Office of Information and 

Regulatory Affairs (OIRA) and issued by Executive Agencies during the first three years of the Obama 

Administration was actually lower than the number reviewed and issued during the first three years of 

the previous Administration. 

How a Microloan Turned One Woman’s Hobby into a Business

Kipri Johnson was a recreational baker until she happened upon Partners for Self-Employment, Inc., an SBA 

microlender in Miami, and turned her hobby into a business. Initially, Ms. Johnson utilized the matched savings 

fund program offered by Partners from 2007 to 2009 “because it was a good way to save money for my business. 

Each dollar I put in was matched two dollars” by Partners. In two years Ms. Johnson was able to save about 

$4,500 to purchase items she needed to grow her business: a printer, product labels, mixes and other startup

materials. Since using the matched savings program, Ms. Johnson has borrowed and benefitted twice from 

Partners’ Level 1 loan program where maximum loan limits are set at $1,500. She says she is now ready to 

pursue Level 2 funding which is capped at $3,000. In 2010, Kip’s Mixes enjoyed a 50% increase in sales over 2009 

sales. But, for Ms. Johnson, her measurable success is in her entrepreneurial growth and maturity in developing 

her business, in doing her own marketing and promotions, and in developing her website.
19 | P a g e

Minimized Costs. In the past decade, the costs of economically significant rules reviewed by OIRA were 

highest in fiscal year 2007. The costs of regulations were far higher during the last two years of the 

previous Administration than during the first two years of the Obama Administration. And in the last five 

fiscal years (2007 through 2011), the majority of regulatory costs came during the Bush Administration.

More Benefits. The net benefits of regulations issued through the third fiscal year of the Obama 

Administration have exceeded $91 billion. This amount, which represents benefits in excess of costs and 

includes not only monetary savings but also lives saved and injuries prevented, is over 25 times the net 

benefits through the third fiscal year of the previous Administration. 

Streamlined Loan Application Process

The Administration has worked to streamline and simplify the process for many of its loan programs to 

ensure capital gets to small businesses as quickly and efficiently as possible.

Small Loan Advantage. Under this flagship program described above, SBA now encourages banks to 

use more of their own paperwork, which has significantly streamlined the loan application process. To 

cut red tape even further, in May 2012 SBA announced it will delegate to Preferred Lenders the final 

credit decisions on these loans.

Disaster Loan Application. SBA provides direct lending support in federal declared disasters and will 

launch a streamlined application in June 2012. The new disaster loan application will reduce the 

electronic loan application paperwork by 70%. These direct disaster loans allow businesses to repair 

and/or replace disaster damaged real estate, inventory, machinery and equipment, etc. and also provide 

funds for working capital. From January 2009 through March 31, 2012, SBA provided nearly $775 million 

in support of 6,822 businesses. 

CAPLines Program. The CAPLines program was reworked and streamlined to help more small 

businesses finance contracts through a revolving line of credit. This is especially important because often 

times when small businesses get a government contract, they may not have the necessary cash-on-hand 

to hire workers and buy materials to help fulfill their orders. CAPLines provides a path for these small 

businesses to finance contracts while avoiding high interest rates. Since the re-engineered program was 

implemented in September 2011, the agency has seen a more than 220% increase in approvals through 

this working capital financing program.
20 | P a g e

IV. Skills and Training: Building a 21st Century Workforce 

The ingenuity and productivity of the American worker is one of our nation’s key competitive 

advantages. Ensuring that workers have the skills and training they need to compete on the global 

playing field is a cornerstone of an economy built to last. However, America’s businesses face a skills 

shortage that threatens to hamper their ability to compete. Despite high unemployment, many 

businesses struggle to find enough workers with the skills and training they need. This is why President 

Obama has challenged every American to commit to at least one year of higher education or postsecondary training. But we know building a 21st Century workforce doesn’t stop after one year in the 

classroom. Ensuring the future competitiveness of America’s economy includes life-long learning and 

entrepreneurial training, counseling, and mentoring to help more Americans start their own small 

business.

Community College Partnerships

Many industries have difficulty filling jobs requiring specific technical skills, even with many Americans 

still looking for work. In the coming years, America will need to fill millions of good-paying mid- and 

high-level skilled positions in high-growth industries from healthcare to advanced manufacturing, to 

clean energy and information technology, including many positions in small businesses.

Proposed Community College to Career Fund

The President’s FY 2013 budget proposes an $8 billion Community College to Career Fund (CCCF) to 

provide resources and support necessary to enhance the development and improvement of educational 

and career training programs for workers. The three-year, $8 billion fund would be jointly administered 

by the Departments of Labor and Education, and would give community colleges increased resources to 

BY THE NUMBERS

 The President’s FY 2013 budget proposes an $8 billion Community College to Career Fund to 

provide resources and support necessary to enhance the development and improvement of 

educational and career training programs for workers.

 The Obama Administration has invested $500 million through the Trade Adjustment Assistance 

Community College and Career Training initiative to develop programs that provide pathways for 

individuals negatively impacted by trade to secure quality jobs in high wage, high skill fields. 

 More than 1 million entrepreneurs receive free counseling and technical assistance each year 

through SBA’s network of more than 14,000 counselors.

 More than 2.5 million entrepreneurs have accessed free online training since 2009 through 

expanded online resources. 

 Over 36.7 million people received services from the Labor Department’s Employment and 

Training Administration, including critical lifelines to job seekers and small businesses seeking out 

a skilled workforce to succeed in a competitive global economy.
21 | P a g e

become community career centers, where individuals would be able to learn critical skills and earn 

industry-recognized credentials sought by local and regional small businesses. Through increased 

employer coordination with community colleges, the CCCF would ensure that small employers have the 

skilled workforce they need, and that workers are receiving training and credentials relevant to the local 

or regional needs of the small business community. Additionally, the CCCF will support pathways to 

entrepreneurship for 5 million small business owners over three years through the nation’s workforce 

system and its partners, including: a six-week online training course on entrepreneurship that could 

reach up to 500,000 new entrepreneurs, as well as an intensive six-month entrepreneurship training 

program resulting in entrepreneurship certification for 100,000 small business owners.

Trade Adjustment Assistance Community College Career Training Grants

The Obama Administration has made historic investments in community colleges, which provide a 

linchpin for 21st century workforce training. The Obama Administration has already invested $500 

million through the Trade Adjustment Assistance Community College and Career Training initiative. 

These funds support partnerships among community colleges, employers, and Workforce Investment 

Boards to develop programs that provide pathways for individuals negatively impacted by trade to 

secure quality jobs in high wage, high skill fields including advanced manufacturing, transportation, 

health care, and science, technology, engineering, and math (STEM). Because of the focus on local 

employers, many small businesses have partnered with community colleges to develop training 

programs directly suited to their own workforce needs. The Administration will invest an additional $1.5 

billion in this initiative over the next three years. 

Business and Community College Partnerships to Build Americans’ Skills

Last year, the Obama Administration helped launch Skills for America’s Future, an industry-led initiative 

to improve industry partnerships with community colleges and build a nationwide network to maximize 

workforce development strategies, job training programs, and job placements. Through this initiative 

the President announced a new partnership of private sector employers, community colleges, and the 

National Association of Manufacturers to provide 500,000 community college students with industryrecognized credentials that will help them secure jobs in the manufacturing sector.

Goal to Increase Credential Attainment by 10%. The Administration, through efforts at the 

Departments of Labor (DOL) and Commerce, plays a vital role in increasing access to industry-recognized 

credentials, in partnership with community colleges, businesses, and labor unions. This year, DOL set a 

high priority performance goal to increase the number of training program completers who earn 

industry-recognized credentials by 10% by September 30, 2013.

Expand Access to College through Pell Grants

Since 2008, the Administration has increased the maximum Pell Grant by $900, to $5,635 in 2013, 

ensuring access to postsecondary education for almost 10 million students. The Administration has 

consistently prioritized this core program, which is often used as a means of financing two-year degrees 

in vocationally-oriented programs.
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High-Skilled Foreign Workers

The Obama Administration is deeply committed to fixing our broken immigration system so that it 

meets our 21st century national security and economic needs. While continuing to fight for 

comprehensive immigration reform and target legislative measures, the Administration is taking steps to 

attract and retain immigrants who create jobs and boost competitiveness here in the U.S. These actions 

are helping to attract new businesses and new investment to the U.S. and to ensure that our nation has 

the most skilled workforce in the world. 

H-1B Technical Skills Training Grants. The Administration has invested $342 million in competitive 

grants to provide American workers with training, job placement, and other assistance in the high-skilled 

occupations and industries for which employers are now using H-1B visas to hire temporary foreign 

workers. Of the total H-1B Technical Skills Training Grants awarded, more than $163 million has been 

designated to provide on-the-job training, allowing participants to learn new skills while earning a 

regular paycheck – a critical investment to help small businesses find skilled labor. 

US Citizenship and Immigration Services Entrepreneur- in-Residence. U.S. Citizenship and 

Immigration Services (USCIS) has partnered with business experts to ensure that the visa pathways most 

often used by immigrant entrepreneurs are clear, consistent and aligned with business realities. Through 

its innovative Entrepreneurs in Residence (EIR) initiative, USCIS has formed a tactical team comprised of 

both USCIS employees and entrepreneurs from the private sector who are working collaboratively over 

a period of 90 days to assess current policies, practices, and training in order to streamline existing visa 

pathways for immigrant entrepreneurs interested in coming to the U.S. to create jobs.

Embracing More of the World’s Best and Brightest Science and Technology Graduates. The 

Department of Homeland Security (DHS) has expanded the list of STEM degree programs that 

immediately qualify eligible graduates on student visas for an Optional Practical Training (OPT) 

extension—an important step forward in expanding the nation's pool of talented high-skilled graduates 

and potential entrepreneurs in science and technology fields. By expanding the list of STEM degrees to 

include such fields as neuroscience, medical informatics, and econometrics, more highly skilled foreign 

graduates will have an extra 17 months to remain in the U.S. to pursue work training in their field of 

study beyond the initial 12 months available to all graduates.

Strengthening the EB-5 Investor Visa Program. The EB-5 program allows immigrant investors to 

put their own capital to work creating jobs and opportunities for U.S. workers. USCIS is enhancing the 

program by (1) hiring additional economists, business analysts, and corporate attorneys to review filings 

and ensure that the agency can leverage business expertise in its adjudications, (2) opening up direct 

lines of communication between Regional Center applicants and USCIS adjudication teams, (3) providing 

certain applicants with the opportunity for an interview before a USCIS panel of experts to resolve 

outstanding issues, and (4) creating process efficiencies which will improve processing times and 

enhance investor predictability.
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Development Programs for Entrepreneurs and Small Business Employees

Through engagement with entrepreneurs across the U.S., the Obama Administration knows how 

important mentors and partnerships can be for small businesses and entrepreneurs who want to grow. 

Building off those engagements, the President has supported programs to connect entrepreneurs with 

experienced individuals and organizations so they can further develop their business and create jobs.

SBA District and Regional Offices. SBA’s network of 68 district and 10 regional offices are the point 

of delivery for most SBA programs and services. They work to accomplish the SBA mission by providing 

quality service to the small business community; and work with SBA resources partners and 

intermediaries to accomplish the SBA mission.

Small Business Development Centers. SBDCs provide free or low-cost assistance to small businesses 

using programs customized to local business and economic needs. SBDCs offer counseling in marketing 

and business strategy, finance, technology transfer, government contracting, management, 

manufacturing, engineering, sales, accounting, exporting, and other topics. SBDCs are funded by grants 

from the SBA and matching funds. There are 63 SBDCs with more than 1,000 SBDCs service centers in 

the 50 states and insular territories. In 2011 SBDCs helped small businesses leverage over $3.6 billion in 

capital infusion.

Women’s Business Centers. WBCs represent a national network of 110 educational centers. Through 

these centers, SBA provides women entrepreneurs with face-to-face counseling, training, and assistance 

to help them develop strategic plans, conduct market studies, implement new technologies, and access 

capital. These centers have trained and counseled more than 160,000 women, many of them in 

underserved and economically disadvantaged communities and are, for the first time, in every state in 

the continental U.S. Participants are more likely to start businesses; their businesses are more likely to 

survive over the ensuing years; and they are better prepared to seek financing and to plan effectively for 

future business growth.9

Public Workforce System and One-Stop Career Centers. Employers, including small businesses, are 

not only customers but critical partners of the public workforce system administered by Employment 

and Training Administration (ETA). Employment and training programs work with small businesses in 

their local and regional economies to develop job-specific training. Representatives from the business 

community comprise a majority of State and local Workforce Investment Boards (WIBs), including a 

business representative serving as the board chair. These WIBs administer 3,000 One-Stop Career 

Centers across the country at the state and local level, and service on the boards is an important way 

that small businesses in key sectors in the economy can ensure that job training is meeting the needs of 

area employers.
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SCORE for the Life of Your Business. SCORE has over 13,000 volunteer business professionals provide 

mentorship and share real-world, ethically sound business practices to help entrepreneurs and small 

business owners at various stages in their business lifecycle. With nearly 370 community-based chapters 

and an award winning online advice and training website, SCORE has served nearly 1.6 million 

entrepreneurs since 2009.

Supporting Entrepreneurship through Unemployment Insurance. A number of States – including 

Delaware, Maine, Maryland, New Jersey, Oregon, and Pennsylvania – have Self-Employment Assistance 

(SEA) programs that encourage and enable unemployed workers to create their own jobs by starting 

their own small businesses. In February, the President signed into law the Middle Class Tax Relief and 

Job Creation Act of 2012, which extended SEA eligibility to long-term unemployed workers receiving 

federal unemployment benefits and provided $35 million to states across the nation to support SEA 

programs. 

Self-Employment Training Demonstration. ETA is developing a new Self-Employment Training 

Demonstration focused on the role of One-Stop Career Centers in supporting self-employment in 

coordination with SBA programs. Developed based on promising results from previous DOL 

entrepreneurship experiments, the demonstration will test how entrepreneurial services – such as case 

management, counseling, financial support, assistance with refining potential products and services, 

technical skills training in small business ownership, mentoring, and information about access to capital 

– can be an effective alternative to traditional employment preparation and training for low-income 

dislocated workers.

New Online Training courses for Entrepreneurs. Over 2.5 million entrepreneurs have registered for 

a free SBA online course or assessment to help strengthen their business education to date. SBA online 

training courses are free, self-paced, and targeted to the specific needs of small business owners. 

Planning assessment tools and other digital tools allow users to explore entrepreneurship and connect 

with the right solution to fit their individual needs. In addition, the US Patent and Trademark Office 

(USPTO) has built two new online modules for inventors and entrepreneurs.

Young Entrepreneur Online Training Course. The Young Entrepreneurs online training 

course and podcast is specifically designed for a younger audience and features the stories of 

other young entrepreneurs that have successfully started a business.

Mentoring for Success: How SCORE Helps More Small Businesses Succeed

In October 2010, Patrick Hickey, executive chef at Gourmet Bay Catering outside of Charleston, S.C., heard 

the owner talk about his desire to sell the business. By Summer 2011, the owner was ready to sell, and 

Patrick and his fiancée Erin Marqua decided to buy the business. The only problem was their complete lack 

of business experience. “We needed to have a lot of help because we’d never run a business or even 

purchased a house,” Erin said. So Patrick and Erin visited the Charleston Metro Chamber of Commerce, 

where they discovered the local SCORE office. SCORE connected them with counselor Greg Kopach. Through 

phone, email and face-to-face counseling sessions, including a session on profit and loss statements over 

dinner, Greg helped Patrick and Erin understand the company’s accounting and review the necessary 

paperwork. In October 2011, Patrick and Erin successfully purchased Gourmet Bay. They continue to call on 

Greg whenever they need assistance.
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Intellectual Property Awareness Assessment Tool. The Intellectual Property Awareness 

Assessment Tool is a web-based tool designed by the USPTO to assess intellectual property (IP) 

knowledge and provide personalized training resources for small businesses and inventors. 

Based on user responses, this program assesses intellectual property awareness among 

inventors and businesses and educates them on how to determine their IP assets and risks.

Government Contracting Classroom. The GC Classroom is an online training destination 

where small businesses can acquire the confidence and know-how to compete for the more 

than $500 billion in federal contracts that are awarded each year. 

Native American Small Business Primer. SBA’s new online Native American Small Business 

Primer emphasizes business planning and market research as essential steps to take before 

going into business; informs Native American entrepreneurs about the legal aspects of starting a 

business, including the types of ownership (legal structure) and licensing; and provides key 

information on seed money for starting up, raising capital, and borrowing money. 

Green Business Opportunities. This small business guide provides online training for 

entrepreneurs who are looking to enter the home energy retrofit market. The course provides 

free business counseling and information for those seeking to launch a new business or expand 

an existing business in the energy efficiency market. 
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“When students excel in math and science, they help America compete for 

the jobs and industries of the future.” 

- President Obama remarks at the White House Science Fair, Feb. 7, 2012

Supporting Efforts to Increase Youth Entrepreneurship. The White House, in conjunction with 

SBA, DOL, and USPTO has launched efforts to focus on the needs of young entrepreneurs to create a 

better environment for young business leaders. 

Young Entrepreneurs Series. In conjunction with the White House, SBA hosted six events 

across the country focused on young entrepreneurs. The events reached roughly 12,000 people 

both in person and online and occurred in New York, NY; San Diego, CA; Ames, IA; Tahlequah, 

OK; Charlotte, NC; and Milwaukee, WI. The events helped to celebrate and promote the launch 

of a broader nationwide initiative focused on young entrepreneurs. 

Start Young. In December 2011, SBA announced the Start Young Initiative, a partnership with 

DOL’s ETA. The primary goal of this initiative is to provide Job Corps participants with the 

fundamental knowledge about small business opportunities and resources available to them by 

the end of a specialized training, encouraging economic self-sufficiency and personal growth 

within their local communities. SBA’s New York Small Business Development Center is providing 

the Entreskills learning and teaching curriculum for this initiative. The three pilot sites 

PRESIDENT BARACK OBAMA LOOKS OVER THE SHOULDER OF HANNAH WYMAN, 11, AS SHE DEMONSTRATES HER PROJECT IN THE 

BLUE ROOM DURING THE SECOND ANNUAL WHITE HOUSE SCIENCE FAIR CELEBRATING STUDENT WINNERS OF SCIENCE,

TECHNOLOGY, ENGINEERING, AND MATH (STEM) COMPETITIONS ACROSS THE COUNTRY, FEB. 7, 2012.
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(Philadelphia, New York, and Milwaukee) started in April 2012 and concluded in June 2012 with 

support from the Brooklyn SBDC, Milwaukee WBC, and the Philadelphia SCORE Chapter. There is 

the potential to expand this pilot.

Emerging Leaders Program (formerly Emerging 200 or e200). The Emerging Leaders 

Program identifies small businesses that show a high potential for growth. Through eight 

months of specialized training, the Program provides small businesses with the network and 

resources required to build a sustainable business and promote economic development within 

communities across the country. The majority of these businesses are drawn from underserved 

communities. The results of the Emerging Leaders initiative show nearly 75% of participating 

small businesses have maintained all or added new employees, with over 900 new full-time 

employees added from 2009 to 2011. In addition, 67% of participants reported increased 

revenues over the past year and have leveraged over $26 million in new financing. Businesses

also secured over $330 million in federal, state, local and tribal contracts. The 2011 Emerging 

Leaders training cycle included approximately 485 small businesses enrolled in 27 markets 

across the country. 

Camp Invention/Club Invention. USPTO in collaboration with InventNow is bringing children 

together in teams to engage them in investigations, experiments, and engineering challenges 

that are designed to integrate STEM skills. The program introduces intellectual property 

concepts at age-appropriate levels through approximately 1100 camps in 49 states and D.C.

On-the-Job Training. On-the-Job (OJT) training allows hired workers to earn wages while receiving 

training at the workplace. Employers are reimbursed for a portion (typically up to 50%) of the costs of 

training a new employee. OJT is of particular value to small businesses because it can offset initial 

training costs to fill skilled positions, while building organizational productivity and loyalty as the 

participant learns necessary skills. DOL has made a significant investment in OJT – first through the 

award of $75 million in OJT National Emergency Grants to 41 states, the District of Columbia, and three 

federally recognized Native American tribes. These grants were made possible with funds from the 

American Recovery and Reinvestment Act.

Supporting Efforts to Increase Encore Entrepreneurship among Older Americans. There are 

over 76 million Baby Boomers, and in addition to being the most populous generation, they are also 

wealthier, better educated, and living longer than their predecessors. While the economic downturn has 

increased the need to work beyond retirement age for some, many are eager to stay active and engaged 

in ‘encore careers’ of their choosing. SBA is partnering with AARP to provide SBA’s 30+ online training 

courses to AARP’s network of 40 million 50+ Americans.

Educating Entrepreneurs and Small Businesses about Security Concerns. Although 

entrepreneurs are familiar with most types of financial business risks, they may not be familiar with how 

security risks can affect their business. DHS designed a program to ensure that entrepreneurs and small 

business owners know how to best prepare and protect their colleagues and businesses in the event of 

an emergency. In addition, DHS USCIS’s Verification Division conducts extensive outreach to small 

businesses through business associations and other entities to provide education about the use of EVerify and the Form I-9. So far in FY 2012, the Verification Division’s Outreach Branch has participated in 

77 events in 19 states and D.C. to deliver live presentations, sit on panels, and staff exhibits about EVerify. In addition, the Verification Division also reaches small businesses through webinars. So far in FY 

2012, 164 webinars have been delivered to more than 8,400 participants. 
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V. High Growth Entrepreneurship and Innovation: Giving Startups 

the Tools to Grow

America’s economic growth and international competitiveness depend on our ability to innovate. 

Innovation fuels the creation of new industries, new companies, new jobs, and new products and 

services. President Obama knows that today’s entrepreneurs are tomorrow’s Fortune 500 companies. 

That’s why the President has tasked his Administration with crafting policies that eliminate barriers to 

startup formation, drive investment to the best ideas, and accelerate the growth of young companies in 

the marketplace. It is entrepreneurs in clean energy, medicine, advanced manufacturing, information 

technology, and other innovative fields who will build the new industries of the 21st century, and solve 

some of our toughest global challenges.

Startup America

In January 2011, President Obama called for an all-hands-on-deck effort to accelerate the success of 

high-growth entrepreneurs across the country. The White House Startup America Initiative is a 

government-wide effort to improve the environment for high-growth startups, in five key areas: 

Unlocking access to capital to fuel startup growth; connecting mentors and education to entrepreneurs; 

reducing barriers and making government work for entrepreneurs; accelerating innovation from “lab to 

market” for breakthrough technologies; and unleashing market opportunities in industries like 

healthcare, clean energy, and education. Some of these efforts have already been outlined above, 

particularly in sections regarding access to capital and training; additional efforts are described below.

At the same time, the private sector has responded to the President’s call to action by forming the 

Startup America Partnership, an independent nonprofit alliance of entrepreneurs, major corporations, 

and service providers that has mobilized over $1 billion in business resources to serve as many as 

100,000 startups over the next three years. The Startup America Partnership has also launched 20 new 

 BY THE NUMBERS

 A record $2.6 billion in growth capital to high-growth companies through Small Business 

Investment Companies (SBIC) in 2011.

 Streamlining the Small Business Innovation Research program to provide greater access 

for innovative small firms to more than $2.5 billion annually in early-stage federal research 

grants. 

 $1 billion commitment to impact investing through the SBIC program’s Impact Fund 

initiative to support startups and job creation in economically distressed areas and 

emerging sectors.

 $132 million in funding through the Advanced Research Projects Agency at the Department 

of Energy for clean energy sector small businesses.
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entrepreneur-led regional networks across the country, from Startup Hawaii to Startup Iowa to Startup 

Virginia, with many more in the pipeline.

Connecting Mentors and Education to Entrepreneurs

Entrepreneurial Mentorship Corps. SBA, DOE, and the Advanced Research Projects Agency-Energy 

(ARPA-E), launched the Entrepreneurial Mentor Corps program in February 2011. This program funded 

four competitively selected clean energy business accelerators – Clean Energy Trust, CleanTECH San 

Diego, Cleantech Open, and the Nevada Institute for Renewable Energy Commercialization – which 

together match experienced mentors to 100 clean energy companies around the country. These 

mentors helped accelerate the startup company’s success by providing targeted advice on revenue 

growth, employee growth, avoiding pitfalls, and obtaining financing.

New Incubators to Help Vets Start High-Growth Businesses. VA has established two of the first 

integrated business accelerators focused solely on helping our Veterans launch and sustain their own 

businesses. The first accelerator program is a brick-and-mortar facility in Milwaukee, Wisconsin. Veteran 

Entrepreneurial Transfer (VETransfer) is a non-profit business incubator providing physical office space 

and shared services to help Veteran-owned businesses get off the ground. The second program is a 

virtual, online business accelerator focused initially on Veteran entrepreneurs in Roanoke, Virginia and 

Philadelphia, Pennsylvania. The VetSuccess Employment Accelerator (VetSEA) will provide a suite of 

online tools and resources that assist veterans in all phases of the entrepreneurial process, from 

assessing their skills readiness to developing a business plan to launching and building a new company. 

Center for Teaching Innovation and Entrepreneurship in Engineering. NSF has awarded a $10 

million grant over five years to launch Epicenter, a national center for teaching innovation and 

entrepreneurship at the nearly 350 engineering schools throughout the U.S. Directed by the Stanford 

Technology Ventures Program (STVP) at Stanford University’s School of Engineering, in partnership with 

the National Collegiate Inventors and Innovators Alliance (NCIIA), the center will serve as an education, 

research and outreach hub, inspiring the nation’s undergraduate engineering students to develop 

innovative products and services for lasting economic and societal impact. 

Clean Energy Business Competitions for Students Nationwide. To support and empower the next 

generation of American clean energy entrepreneurs, U.S. Energy Secretary Steven Chu announced $2 

million in funding for the National University Clean Energy Business Challenge. This nationwide initiative 

has created a network of regional student-focused clean energy business creation competitions whose 

winners will compete for a National Grand Prize at a completion held at the DOE in Washington, D.C. in 

early summer 2012. Six regional competitions serve to inspire, mentor, and train students from across 

the country to develop successful business plans to create a new generation of American clean energy 

companies.

Administration Commits to Advance Entrepreneurship Education. The Departments of Education 

and Labor are advancing a youth entrepreneurship agenda that infuses entrepreneurship education into 

a range of existing programs involving K-12 education, career and technical education, community 

colleges, universities, and low-income youth. As part of this effort, the Department of Education is 

launching a new National Education Startup Challenge, inviting middle school, high school, and college 

students to develop an innovative solution to an education problem and prepare a business plan for a 

new company or non-profit organization to deliver that solution. 
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Reducing Barriers and Making Government Work for Entrepreneurs

President Obama understands that the key to the nation’s historic and future economic success is 

America’s unique culture of entrepreneurship. The U.S. has always been a place of great opportunity 

and offered great reward for those that took a risk and began their own enterprise. This is why President 

Obama is committed to making sure the U.S. government does all it can to make starting businesses 

easier and remove barriers to growth.

America Invents Act. In September 2011, President Obama signed the America Invents Act, a historic 

patent reform legislation initiative. The act is designed to help American entrepreneurs and businesses

to bring their inventions to market sooner, creating new businesses and new jobs. Representing the 

most significant reform of the Patent Act since 1942, this also gives the USPTO additional resources to 

reduce patent application waiting times significantly. The Act recognizes that the many key industries 

where the U.S. leads depend on a strong and healthy intellectual property system.

Startup America Reducing Barriers Roundtable Series. In 2011, senior Administration officials 

visited eight cities and held roundtable discussions to ask entrepreneurs for their ideas on which Federal 

regulations and processes could be changed to foster greater entrepreneurship, innovation, and job 

creation. At the end of this series of roundtables, a report to the President was drafted on how to best 

reduce barriers and continue to strengthen America’s entrepreneurial spirit. The critical input received 

through the Reducing Barriers initiative informed many of the Administration’s leadership on the 

bipartisan Jumpstart Our Business Startups (JOBS) Act.

Reducing Student Loan Burdens for Young Entrepreneurs. President Obama announced new 

executive actions to make it easier for Americans to manage student loan debt, including a “Pay As You 

Earn” proposal to let upcoming graduates cap their monthly federal loan payments at 10% of their 

income, with any remaining debt balance forgiven after 20 years. Entrepreneurs with student loans can 

already take advantage of the Administration’s income-based repayment (IBR) plan, limiting loan 

payments to 15% of their income and forgiving all remaining debt after 25 years. To spread awareness 

of this program, the SBA has launched a new website walking young entrepreneurs through the process 

of reducing their monthly student loan payments, and the U.S. Department of Education has committed 

to developing new guidance for borrowers to facilitate young entrepreneurs’ use of this program. 

Policy Entrepreneur-in-Residence. In 2012, the EDA Office of Innovation and Entrepreneurship (OIE)

began holding “office hours” – both virtual and in-person, for entrepreneurs to connect directly with the 

Federal government to help them interact in areas where they must interact with federal agencies, but 

also where their ideas could have great national impact. To date, OIE has met with over 200 

entrepreneurs in New Orleans, LA; Cleveland, OH; and Lowell, MA.

Apps for Entrepreneurs Challenge. Entrepreneurs and small businesses need better tools to navigate 

the federal government’s vast resources – including programs, services, and procurement opportunities. 

The Administration’s Apps for Entrepreneurs challenged programmers to develop tools using open 

government data, with $20,000 in prizes awarded.

Health Data Initiative. In February 2011, the Department of Health and Human Services (HHS)

launched the Health Data Initiative, an initiative that promotes the uses of health data for innovators 

and developers while rigorously protecting privacy and confidentiality. The goal is to unleash the power 

of private-sector innovators and entrepreneurs to utilize HHS data to create applications, products, 
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services and features that help improve health and health care -- while also helping to create jobs of the 

future at the same time. HHS is promoting the uses of data through its developer platform, 

healthdata.gov, to innovators across the country through grassroots "meetups," public competitions, 

"code-a-thons" and more.

Education Data Initiative. Led by the U.S. Department of Education, in close partnership with the 

White House and other agencies, the Education Data Initiative seeks to make education-related data 

available, accessible, and machine-readable for private-sector entrepreneurs and innovators to develop 

new products, services, and features that can improve the well-being of the American people. For 

example, existing federal databases of higher education outcomes (e.g. institutional prices, enrollment, 

graduation rates, etc.) are adding gainful employment data (e.g. loan repayment rates, starting salaries, 

employment rates, etc.) that can fuel new or improved online services that help students and their 

families make the best possible choice of which college to attend, based on cost and outcomes. 

Similarly, making federal financial aid application data securely available to applicants in machinereadable form promises to help customize and personalize college-choice applications and services. As 

another example, promoting the newly developed Learning Registry—an open source technical system 

to help educators and learners use and share digital content—can help fuel the next generation of 

educational technology services and tools. 

Energy Data Initiative. DOE is also unleashing the power of publicly available energy-related data to 

help spur innovators and entrepreneurs to develop new products and services. One area of focus is the 

Green Button Initiative, an Administration-inspired and industry-led effort to make it easier for 

electricity customers to get secure online access to their own energy data in a consumer- and computerfriendly format, called “Green Button.” With their own data at their fingertips, customers will be able 

to use web and smartphone apps to pick the best rate plan for them; take advantage of customized 

energy efficiency tips; utilize easy-to-use tools to size and finance rooftop solar panels; and download 

virtual energy audit software that can cut costs for building owners and help get retrofits started sooner

Safety Data Initiative. This May, DOL, HHS, the Department of Transportation (DOT), National 

Institute of Justice (NIJ), Consumer Product Safety Commission (CPSC) and the White House Office of 

Science and Technology Policy (OSTP) are launching the Safety Data Initiative that spurs Americans’ 

entrepreneurial spirit toward the goal of developing and deploying a range of innovative digital tools 

and mobile applications to enhance public and product safety. Bringing together technologists and 

software developers, first responders, and concerned citizens through challenges and data jams they 

will share ideas for novel, data-based digital tools that could empower people to make informed 

decisions about their safety and the safety of others, with the goal of building prototypes within 90 days.
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SBIR Helps Luna Innovations Reach for the Stars

Corrosion is a significant problem for NASA’s Kennedy Space Center (KSC)—particularly for launch pads, tanks 

for storing liquid oxygen and liquid hydrogen, tubing, and other metal support equipment. The combination of 

a warm coastal climate and the acidic exhaust from launch vehicles produces an extremely corrosive 

environment. Under a SBIR contract from NASA, Luna Innovations, Inc. developed ultrahydrophobic 

technology that focuses primarily on KSC’s launch pad facilities and support equipment that contain materials 

susceptible to corrosion. 

Luna’s dual-layer approach: 

• saves money and time by preventing corrosion on steel surfaces, 

• is significantly easier to apply than current coatings, 

• requires only two coats rather than three, 

• provides more flexibility in choosing an application method, and 

• reduces the release of harmful volatile organic compounds.

Small Business Innovation Research 2.0. The Small Business Innovation Research (SBIR) program is a 

set aside from the research budgets of 11 participating agencies with over $100 million in annual 

extramural research budgets. The Small Business Technology Transfer (STTR) program is a set aside 

program to facilitate cooperative R&D between small business concerns and U.S. research institutions. 

The Obama Administration worked successfully with Congress to achieve a six-year reauthorization of 

these critical programs. The programs have provided early funding to technology companies such as 

Qualcomm, Symantec, and Genentech. SBIR and STTR represent the single largest early stage 

investment tool in the government, providing approximately $2.5 billion annually to small businesses.

SBA continues to implement SBIR 2.0 to reinvigorate the program in a way that makes the SBIR and STTR 

programs more entrepreneur-friendly by:

Leveraging Best Practices. The Administration is raising awareness of best practices among 

agencies to improve commercialization rates of SBIR awardees. For example, the NIST SBIR 

Program office helped pilot incentives for small businesses to spin-out commercially-viable 

technologies from federal labs resulting in 19 patent protected technologies, including two 

royalty-bearing exclusive commercial licenses. This small pilot achieved such big results it was 

soon copied by other agency SBIR offices throughout the federal government.

Streamlining. SBA has reinvented the SBIR.gov website with new features allowing these 

innovative companies to navigate opportunities across eleven federal agencies. Entrepreneurs 

can now benefit from search across all open solicitation topics, search of past awards, 

transparent reporting of agencies’ annual performance, a unified calendar of events across all 

agencies, and guided walk-throughs for various constituents.

More Public-Private Partnerships. SBIR 2.0 will increase alignment with the private sector 

and fostering cross-agency partnerships. In the last 12 months, the program completed a joint 

solicitation between several agencies on robotics. Recently, outreach was focused on education 

research topics across agencies, such as Department of Education and Navy.
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Celebrating Entrepreneurship. Over the last two years, the SBA has hosted the Tibbetts 

Awards for the best in the SBIR program. The Tibbetts Awards showcases the best companies in 

the recent history of the program. SBA recognized over 60 small businesses in 2011 and 2012.

Accelerating Innovation from Lab to Market

Presidential Memorandum: Accelerating Technology Transfer and Commercialization of 

Federal Research in Support of High-Growth Businesses. One driver of successful innovation is 

technology transfer, in which the private sector adapts federal research for use in the marketplace. One 

of the goals of the Administration's "Startup America" initiative, which supports high growth 

entrepreneurship, is to foster innovation by increasing the rate of technology transfer and the economic 

and societal impact from federal R&D investments. This is accomplished by committing each executive 

department and agency that conducts R&D to improve the results from its technology transfer and 

commercialization activities with the goal to significantly increase outcomes over the next five years. In 

FY 2011 alone the Department of Defense’s SBIR program participants received over $2 billion in 

commercialization investment.

America’s Next Top Energy Innovator. On the one year anniversary of the Obama Administration’s 

Startup America Initiative, DOE kicked off a second year of “America’s Next Top Energy Innovator,” a 

program that allows startup companies to license groundbreaking technologies developed by DOE’s 17 

national laboratories for $1,000 and build successful businesses. As part of this effort, the Department 

reduces both the cost and paperwork requirements for startup companies to obtain an option 

agreement to license some of the 15,000 patents and patent applications held by the national 

laboratories.

National Advisory Council on Innovation and Entrepreneurship. Convened by the DOC to support 

President Obama’s innovation strategy, NACIE develops policy recommendations that foster 

entrepreneurship and identifies new ways drive economic growth and create jobs. Managed by EDA’s 

OIE, NACIE strives to ensure that the U.S. remains the source of paradigm changing innovations and the 

companies that deploy them. Members of the active council include successful entrepreneurs, investors, 

and university and non-profit leaders.

How SBIR Helps High-Tech StartUps Grow

In 2007, Asif and Rubina Khan started Nitek, Inc., a small high-tech firm in Columbia, S.C., as an extension of 

Asif’s work as director of the University of South Carolina Photonics and Microelectronics Laboratory. Nitek 

is an pioneer in deep ultraviolet LED technology, which could change the way we purify water, treat skin 

diseases and sanitize medical instruments. 

The great thing about being a small business in a high-tech field is that “ideas can come from anywhere,” 

Asif says. Of course, the not-so-great thing about being a small business, even one that could potentially 

change the world, is the struggle for financing. Because new technology requires an extensive R&D and 

sometimes even the establishment of new markets, it can take time to establish new markets, traditional 

financing sources, like banks, find the ventures too risky, while private investors prefer a quicker route to 

profitability. But thanks to the Small Business Innovation Research (SBIR) and Small Technology Transfer 

Research (STTR) programs, Nitek has been able to not only continue pioneering LED technology, it has also 

been able to grow and create jobs. So far, Nitek has received around $5 million through the SBIR and STTR 

programs. Since 2007, the company has grown from 1 employee to 14 employees in 2011, and they plan to 

continue expanding.
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Improving the Patent Process. Under the recently enacted Leahy-Smith America Invents Act (AIA) of 

2011, USPTO is undertaking major reforms to improve the patent process. These include reducing the 

amount of time it takes to get a patent and improving patent quality through new post-grant review, 

supplemental examination, and inter partes review procedures to test patent validity at greater speed 

and at lower cost than litigation. The transition to a first inventor to file system is also a significant step 

toward international harmonization and will provide greater certainty to small businesses and 

independent inventors, for whom the cost of proving who was first to invent was prohibitively 

expensive. The USPTO provides 50% fee reduction, among other things, to small entity inventors, and 

has an array of services designed for them. In addition, several “acceleration initiatives”, for patents 

related to sectors like green tech, food and nutrition, and medical technology, have benefited small 

businesses by significantly shortening the amount of time it has taken to receive a patent.

Accelerated Patent Processing. In September 2011, USPTO began accepting applications for 

accelerated patent processing under “Track One.” This new prioritized examination process

provides applicants with greater control over when their applications are examined and 

promote greater efficiency in the patent examination process. Track One allows inventors and 

businesses, for a fee, to have their patents processed within 12 months, particularly benefiting 

advanced manufacturing industries.

Inventors Assistance Program. Through the Inventors Assistance Center, former 

Supervisory Patent Examiners and experienced Primary Examiners provide patent information 

and services to the public and answer general questions concerning patent examining policy and 

procedure. The Center is available through a dedicated phone number, 1-800-PTO-9199, the

USPTO website, a dedicated e-mail box for questions, bi-monthly on-line chats, and an enewsletter, The Inventor’s Eye. 

Patents for Humanity. USPTO has launched a program to award accelerated examination of 

applications for humanitarian technologies. Awardees will be competitively selected based on 

their advancement of medical technology, food and nutrition, clean technology, and information 

technology. The program advances the President’s global development agenda by rewarding 

entrepreneurs and innovators who bring life-saving technologies to underserved people of the 

world, while enabling patents to play a greater role in meeting the world’s development 

challenges.

AIA Pro Bono Program. USPTO assists financially under-resourced independent inventors

and small businesses nationwide with obtaining a patent. The program was launched in June, 

2011, in Minnesota and was the first of its kind in the U.S. Under the AIA, the USPTO has the 

ability to establish a 75% reduction for qualifying “micro entity” inventors and small businesses. 

Five additional programs are slated to begin operation during 2012, including Denver and 

Austin, and a task force has been formed that includes the major IP law associations, members 

from the USPTO, and Federal Circuit judges in order to broaden pro bono assistance nationally. 

Global Innovation Awards. USPTO, in collaboration with the X-Prize Foundation and the 

National Center for Food Protection and Defense, exposes elementary and junior high students 

through FIRST® LEGO® League to patents and the innovation process. 

Educating Small Businesses on Intellectual Property. To assess the awareness of small businesses 

about intellectual property and to offer them free customized training accordingly, the USPTO has been 
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pilot-testing an Intellectual Property Awareness Assessment Tool. The USPTO also has similar IP 

education initiatives for inventors and small businesses, including the Inventors Assistance Program and 

the Inventors Assistance Center, as well as collaborations with the Minority Business Development 

Agency and the Native American Intellectual Property Enterprise Council.

Improved Ability to Commercialize Federally Funded R&D. The Department of Commerce, 

through EDA, NIST, and USPTO is implementing several initiatives to improve the nation’s ability to 

commercialize federally funded research and development.

University Commitments. The National Advisory Council on Innovation and Entrepreneurship (NACIE) 

has provided policy recommendations and spurred greater efforts by university leaders to improve 

technology commercialization. Similarly, the USPTO through its University Outreach Program provides 

engineering universities with IP education for students, faculty, and staff in order to improve their 

understanding of the USPTO, the intellectual property system, and technology commercialization. Thus 

far, the program has reached over 25,000 students through over 400 classes. Through the College 

Inventors Program, and in partnership with the Abbott Fund, and the Ewing Marion Kauffman 

Foundation, USPTO also offers cash awards for undergraduate and graduate R&D projects in high-risk, 

high-reward areas of critical national need. To broaden university access to the patent system, the 

USPTO is implementing a new 75% “micro entity” fee reduction that includes institutions of higher 

education.

i6 Challenge. Commerce’s Office of Innovation and Entrepreneurship (OIE) i6 Challenge, now in its 

third year, is a leading federal grant challenge to help commercialize our most cutting edge technologies 

and create high-growth startup companies that will ultimately create high skilled employment in their 

regions. This program annually provides approximately $12 million in funding to university and private 

research centers to connect innovation and entrepreneurship and develop business models. 

Additionally, i6 winners raise several million dollars of their own funding to supplement these efforts.

In 2011, OIE implemented i6 Green in partnership with USDA, DOE, EPA, NSF, NIST and USPTO. i6 Green 

winners are showing a clear, specific, and realistic approach to accelerating the movement of clean 

economy technologies to the marketplace, including technologies to advance renewable energy, energy 

efficiency, reuse & recycling, restoration and/or green buildings.
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Lending to Innovators for a Cleaner Tomorrow 

Industrial Services Inc. provides both the know-how and the equipment to convert millions of gallons of 

seawater into drinking water for municipal water supply companies and hotels and resorts around the world. 

When they couldn’t find what they needed or had issues of corrosion or faulty performance with available 

products, ISI designed and built its own products. Shumway also invented an energy-recovery device now used 

in some of the largest desalination plants in the world. Shumway credits his international experience as a key 

reason for ISI’s success. 

With funding from several loans guaranteed by the U.S. Small Business Administration, Shumway developed a 

unique customer tool he calls a “plant configurator,” which allows customers to design their own desalination 

plants and give them direct, transparent access to equipment pricing. The SBA loans were also helpful because 

ISI needed up-front cash to support construction costs. “International transactions are commonly based on

letters of credit, so the SBA loans provided us with access to cash when needed,” he explained. 

Since its founding by Scott Shumway in 2003, ISI revenues have increased from $200,000 to nearly $8 million in 

2010. 

Innovation Pathway 2.0. The FDA’s Center for Devices and Radiological Health (CDRH) launched 

"Innovation Pathway 2.0”. This program aims to reduce time and cost of bringing safe and effective, 

breakthrough technologies to patients. The latest update will now also offer new and modified tools 

and methods to deepen collaboration between the FDA and innovators early in the process, prior to premarket submission, with the goal of making the regulatory process more efficient and timely. The 

Pathway also serves as a living laboratory to test new tools and methods for breakthrough devices that 

may also be applied to other technologies for enhancement of all device pre-market programs. 

Enhanced Regional Economic Competitiveness. Competitive, high-performing regional economies 

are the building blocks of national growth. Regions have coordinated and focused their resources to 

accelerate innovation, economic development, business development and workforce development 

around promising industry areas. Under leadership from the White House, federal agencies are working 

together to support these regional partnerships, including EDA, the MEP program, DOL, USDA, and SBA. 

In addition to the Jobs and Innovation Accelerator Challenge described in the Manufacturing section, 

these initiatives were designed to develop and support regional innovation cluster programs across the 

Government: 

Energy Regional Innovation Cluster. DOE worked with six agencies to ensure its $125 

million Hub investment in Green Building research would support economic, business and 

workforce development in the winning region. Together, the agencies involved in this effort 

awarded nearly $130 million over 5 years for the Greater Philadelphia Innovation Cluster, which 

was selected for this project. The SBA provided over $150,000 to its partner Small Business 

Development Center, which is working to include regional small businesses in energy efficient 

building projects. 

Space Coast Cluster. In 2010, DOC, NASA, DOL, and SBA collaborated to provide funding to 

support the Space Coast industry in Florida, including funds aimed at serving small business 

through counseling and training.
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Southern Ohio Water Cluster. The Environmental Protection Agency (EPA) and SBA are 

working together to provide funding to a water cluster in southern Ohio. Federal funds help to 

link up regional small businesses with EPA's water technology lab in Cincinnati, Ohio and provide 

counseling and training support to local businesses.

Pilot Contract-Based Clusters Initiative. In September 2010, SBA provided nearly $6 million 

in funding to 10 regional economies across the country to help develop and grow small 

businesses in key industry supply chains. These Regional Innovation Clusters are working in 

focus areas that include, but are not limited to, smart grid, nuclear technology, hydrogen fuel 

cell technology, agriculture technology. Three of the clusters, termed Advanced Defense 

Technology clusters, are specifically focused on meeting the needs of the defense industry by 

developing and promoting technologies with defense applications, including aerospace and 

cyber security. All ten clusters focus on supporting small businesses by fostering a synergistic 

network of businesses, university researchers, regional economic organizations, stakeholders, 

and investors, while providing matchmaking, business training, counseling, mentoring, and other 

services. 

Regional Innovation Acceleration Network. Accelerating the development of high-growth, 

innovation-based firms are the hallmark of a 21st century economic development strategy. EDA 

is working with the State Science and Technology Institute to create a national network of 

venture development organizations to build capacity for supporting innovation and 

entrepreneurship in distressed regions. Venture development organizations, such as JumpStart 

in Northeast Ohio and Ben Franklin Technology Partners in Pennsylvania, provide a variety of 

services that directly benefit small businesses, including access to capital, expert business 

assistance, and network development. Through this investment, EDA is supporting the 

identification of best practices in cultivating regional innovation and entrepreneurship, 

measuring the economic impacts of activities designed to support these objectives, and 

providing assistance to regions interested in establishing venture development organizations to 

support business development.

Investments in Broadband Technology for Small Businesses. Broadband technology is a necessary 

piece of American infrastructure. However, many areas of the Nation are not able to access this critical 

technology. These investments will help to remedy that problem and allow rural and small businesses 

better access to broadband in order to make their enterprises more efficient. 

The Broadband Technology Opportunities Program and the Broadband 

Infrastructure Program. The American Recovery and Reinvestment Act of 2009 (Recovery 

Act)provided a total of approximately $7 billion in grant and loan funds to DOC’s National 

Telecommunications and Information Administration (NTIA) and USDA’s Rural Utilities Service 

(RUS) for projects that increase access to and adoption of broadband service across America. A 

key element of President Obama’s strategy to build the innovation economy of the future – one 

that supports new and better jobs, and enhances America’s global competitiveness – is 

expanding affordable access to and adoption of high-speed Internet in America. Through BTOP, 

NTIA has invested nearly $4 billion in approximately 230 projects to expand broadband access 

and adoption in the United States. Additionally, BIP has enabled the RUS to make broadband 

investments that will connect nearly 7 million rural Americans, along with more than 360,000 

businesses and more than 30,000 critical community institutions like schools, healthcare 

facilities, and rural public safety agencies, to new or improved service. In total for the 
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broadband program, more than $2.33 billion in grants and $1.19 billion in loans were made to 

320 projects totaling over $3.5 billion. Of those 320 projects, 297 were for infrastructure, 4 for 

satellite broadband service support and 19 were for technical assistance, of majority of which 

went to tribal communities. The potential commercial benefits to small businesses are clear, 

including more affordable access to information and job training for employees; improved 

access to partners, vendors, and suppliers; faster, more cost-efficient outreach to potential and 

actual consumers through websites, e-mails, and e-commerce; more efficient business 

management through cloud computing and other online tools; and access to regional, 

nationwide, or even global markets. 

The SCORE Broadband Consortium. In collaboration with the Federal Communications 

Commission, SBA engaged SCORE (Counselors to America’s Small Business), Women’s Business 

Centers and Small Business Development Centers to develop training content for materials to 

assist and advise small business entrepreneurs on improving business access and productivity 

through technology. These professional counselors within the SBA partner network also educate 

companies on the small business opportunities arising from developing and expanding 

broadband technologies. This group provides Internet and e-commerce mentoring, training and 

services to ensure success for entrepreneurs and small business owners. Consortium founders 

included AT&T, Best Buy, Cisco, Constant Contact, Google, HP, Intuit, Microsoft, Skype and Time 

Warner Cable Business Class. SCORE is distributing the broadband training curriculum to their 

partners in all of the 110 Women’s Business Centers.

Investments in Clean Energy and Green Jobs. President Obama is focused on keeping America on 

the cutting edge of clean energy technology so that we can build a 21st century clean energy economy 

and win the future. Small businesses have an important role to play in developing and deploying clean 

energy solutions and creating green jobs.

Advanced Research Projects Agency-Energy. A new DOE agency set up to promote and 

fund high-risk, applied, advanced energy technologies with breakthrough potential. Startup

companies and small business are often best structured to pursue such projects—large 

companies may find the high-risk projects unattractive, while universities may be more focused 

on basic research. In terms of funding to date, $132 million, roughly 37% of ARPA-E funds, has 

been allocated to small businesses. ARPA-E remains engaged to help small businesses succeed 

after the award is made by offering resources designed to help companies overcome both 

technical and commercial challenges.

Improve Battlefield Energy Security. DoD has called upon small businesses to develop and 

rapidly transition energy technologies for the combat force, resulting in improved military 

capabilities, fewer energy-related casualties, and lower costs for the taxpayer. On March 2, 

2012, DoD convened several hundred small businesses about the release of $18.0 million to 

fund six military programs to reduce the energy demands of future expeditionary outposts. An 

important objective of the fund is identifying new sources of energy innovation. By leveraging 

small businesses and entrepreneurs to accelerate energy innovation for DoD, the program aims 

to strengthen national security while promoting small business development at the same time.
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Two Success Stories from GSA’s Green Proving 

Ground

Synap Sense Corporation, a University of California 

generated start -up company, developed wireless 

sensor technology that reduced power needed to cool 

a GSA demonstration data center by 48% and reduced 

total data center power usage by 17% - with a 

payback of 3.4 years. Data centers represent less than 

2% of GSA's inventory, but more than 5% of the 

agency's total energy consumption, therefore the 

potential of this technology is significant and 

represents a best practice that could help agencies 

meet mandated targets cost effectively.

Lumenergi, a startup, helped GSA pilot test the 

effectiveness of digitally controlled, workstationspecific lighting technology ("smart lighting"),in 

a30,000 square foot space in GSA's Phillip Burton 

Federal Building. The smart lighting technology 

delivered a 40% lighting energy savings, and the 

market potential led GSA to install this technology in 

more than 150,000 workstations for further testing.

GSA Green Proving Ground 

Program. By evaluating and adopting 

new ideas and technologies, aims to 

drive innovation in environmental 

performance across federal 

government buildings and help build 

the clean energy economy of the 

future. The program provides 

opportunities for American companies 

to showcase their innovative 

technologies in a real world 

application as well as receive critical 

feedback upon performance. This 

enables American industry to 

continually improve their products 

and remain competitive and provide 

exposure to the industry's leading 

edge technological developments. 

In order to further identify 

technologies and practices that 

optimize energy performance, protect 

and conserve water, enhance indoor 

environmental quality, reduce waste 

and environmental impact of 

materials, reduce greenhouse gas emissions associated with building operations, and promote 

integrated design, GSA issued a Request for Information which closed in January 2012 with over

160 expressions of interest. GSA is in the process of selecting 12 technologies for field testing.

The USDA Agricultural Research Service. ARS is USDA’s principal intramural scientific 

research agency. ARS obtains patents and licenses technology resulting from intramural 

research conducted by USDA. The ARS budget represents 1% of Federal R&D expenditures, yet 

routinely, ARS scientists receive at least 15% to 25% of the National Excellence in Technology 

Transfer Awards presented by the Federal Laboratory Consortium for Technology Transfer, 

attesting to the strong long-standing USDA culture of ensuring that research outcomes are 

delivered to end users in the agriculture sector. Metrics from FY 2010 show a strong focus on 

small businesses:

 115 of 197 (58%) active commercialization licenses are with small businesses

 125 other licenses are with universities and institutions of co-inventors of USDA 

innovations, consolidating rights for subsequent licensing for commercialization; many—if 

not a majority (exact figures not available)—of the resulting sublicense agreements are 

also with small businesses enterprises

 246 of 323 (76%) active licenses are exclusive or partially exclusive

 125 of 323 active licenses have at least 1 product in the marketplace

 In addition to licenses, 260 Cooperative Research and Development Agreements (CRADAs)

represent formal research partnerships, predominantly with U.S. small business (approx. 

65%), to find solutions to high national priorities for agricultural industries and to facilitate 
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adoption of innovation-based research outcomes for private sector commercialization. 

CRADAs convey the right to negotiate exclusive licenses by the partners without Federal

Register notice
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VI. Federal Contracting Opportunities: A Win-Win for Small 

Business and Government

The Administration continues to fulfill its commitment to being a good customer to our nation’s small 

businesses and is committed to ensuring an appropriate share of its contracting needs goes to small 

businesses.

Each year, the federal government spends about half a trillion dollars on goods and services and works 

to maximize small business participation in federal contracting, including small businesses owned by 

women, socially and economically disadvantaged individuals, service-disabled veterans, and those in 

areas hardest hit by the economic decline. The Administration is committed to meeting the statutory 

goal of 23% of federal contracting dollars being awarded to small businesses. In fiscal year 2010, the 

federal government awarded small businesses nearly $100 billion in federal prime contracts, which was 

22.7% of eligible contracting dollars. This marked the largest two-year increase in over a decade and the 

second consecutive year of increases after three years of decline.

Additionally, the federal government has awarded over $70 billion to small businesses through 

subcontracting opportunities. Under the Recovery Act, 32.62% of all federal contracting dollars, or $11 

billion, went to small businesses. These dollars provided small businesses a much-needed boost to 

create and retain jobs and help revitalize our economy.

The federal government also works to achieve statutory sub-goals of awarding 5% of prime contracting 

dollars to small disadvantaged businesses, 5% to women-owned small businesses, 3% to servicedisabled veteran-owned small businesses, and 3% to historically underutilized business zones (HUBZone) 

certified firms. 

For example, the Women‐Owned Small Business Contracting Program was authorized more than a 

decade ago and was finally implemented by the Obama Administration last year. This rule identifies over 

300 industries in which women-owned small businesses (WOSBs) and economically disadvantaged 

women-owned small businesses (EDWOSBs) are under‐represented and authorizes government 

contracting officers to set aside federal contracts for those businesses. In addition to opening up more 

opportunities for EDWOSBs and WOSBs, the rule is another tool to help achieve the statutory goal that 

5% of federal contracting dollars go to women‐owned small businesses. Since the WOSB program was 

launched in early 2011, more than 9,500 firms have taken steps to certify for the program.

BY THE NUMBERS

 Nearly $300 billion in prime contracts and more than $200 billion in subcontracting since fiscal 

year 2009 have been awarded to small businesses by federal agencies.

 50% improvement in time it takes to pay small business prime contractors following the Obama 

Administration's implementation of QuickPay in September 2011.
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Helping a 100 Year Old Small Business Stay Strong

Sturges Manufacturing, Inc. began producing suspenders 

in Utica, New York in 1909. Today, Sturges is an ISO-9001 

certified manufacturer of custom-designed engineered 

straps and webbing for the safety, firefighting, military and 

mountain climbing industries. Sturges has been able to 

achieve an advantage over competitors by designing 

innovative solutions for its customers, with two patents on 

file and two more pending. Selling to the federal 

government was once a strong source of revenue for 

Sturges; during World War II, the company sold over two 

million rifle slings to the military for U.S. soldiers. The 

number of government contracts received by Sturges had 

slowed over recent years, and in 2009 the company 

sought assistance to improve sales from the NYS Small 

Business Development Center (SBDC) Procurement 

Assistance Center located at SUNY Institute of Technology 

in Utica. The SBDC Procurement Assistance Center’s 

Government Contracting Coordinator provided training in 

accessing technical data packages, qualified product and 

manufacturer lists and federal bidding opportunities. With 

a renewed emphasis on procurement, government sales 

have once again increased. Sturges was recently awarded 

a contract from the U.S. Army Pine Bluff Arsenal to 

manufacture over 40,000 straps for mortar shells.

“We contacted the SBDC to learn what we needed to do to 

obtain government contracts and how to expand our 

presence,” said Tyler Griffith, vice president. “We continue 

to turn to the SBDC when we run into a roadblock.

Coordinating Procurement across the Federal Government

Presidential Interagency Taskforce on Federal Contracting Opportunities for Small Business 

and the Small Business Jobs Act. In April 2010, President Obama signed a Presidential Memorandum 

highlighting the need to provide small businesses opportunities in federal contracting and establishing 

an Interagency Task Force on Federal Contracting Opportunities for Small Businesses. In September, the 

same month the Task Force recommendations were released, the President signed into law the Small 

Business Jobs Act (SBJA) of 2010, which reinforced and enacted many of the Task Force’s 

recommendations. In total, it included 19 provisions related to small business contracting. Below are 

some of the key recommendations of the Task Force and provisions of the Act:

Parity. The SBJA reaffirms “parity” among federal small business contracting programs. This 

means that contracting officers are free to choose among businesses owned by women and 

service-disabled veterans, as well as businesses participating in HUBZone programs and 8(a) 

programs. The Federal Acquisition 

Regulation (FAR) Final Rule 

published in March 2012 that 

clarified parity will help federal 

agencies meet each of the 

government’s small business 

contracting goals. 

Repeal of Competitiveness 

Demonstration Program. The 

law repeals the Competitiveness 

Demonstration Program, which 

actually harmed many small firms. 

By repealing this program, the 

Administration will reinstate small 

business contracting set-asides in 

about 10 industries where small 

businesses typically excel, such as 

landscaping, construction, and pest 

control. The repeal was published as 

a FAR Final Rule in December 2010. 

Annual Certification of Business 

Size. The SBJA requires annual 

certification of a firm’s size and 

status through the Government’s 

Online Representations and 

Certifications Database. SBA 

published a proposed rule in 

October 2011.

Policy on Prosecution of the Size 

and Status Fraud. The SBJA strengthens the government’s ability to take legal action against 

willful misrepresentations of small businesses’ size or status to gain a federal contract or grant. 
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The Mentor-Protégé Program Helps Small Business Compete for Federal Contracts

DynCorp International, LLC (DI) provided mentoring and business support to protégé CenterScope 

Technologies, Inc. (CSTI), which has become a pre-eminent provider of CONUS and OCONUS deployment and 

movement control services for the U.S. Army and other federal customers. Since the inception of the MentorProtégé Agreement with DI, CSTI experienced 160% employee growth, adding 99 full-time equivalent 

employee positions within the company. CSTI has also emerged as an international competitor, possessing 

new core competencies related to establishing operations and conducting business around the world. 

CSTI developed innovative new technology in support of the War-Fighter, most notably CRC-in-a-Box , which 

had an immediate and positive impact on the length of deployment and movement control cycles, 

collaboration with U.S. Army and stakeholders, and support for U.S. Army cost reduction strategies. 

CRC-in-a-Box automates processes previously bogged down by information-sharing systems that did not apply 

the benefits of electronic record-keeping, automated database administration, and information-sharing 

capabilities of the internet. CRC-in-a-Box was developed at no cost to the Government or the Taxpayer. The 

results of implementing CSTI’s proprietary CRC-in-a-Box software have been both immediate and impressive. 

CSTI has reduced deployment lifecycles by as much as 67% and created an estimated $2M in cost avoidance. 

For the U.S. Army and its civilian contractors, CSTI’s tools and processes have expedited getting “boots on the 

ground” faster in support of the War-Fighter, resulting in substantial long-term cost savings to DoD. 

SBA will issue a government-wide policy on the prosecutions of fraud or misrepresentation of 

size standards, which will be published on agencies’ websites.

Mandatory Small Business Training. SBA and the Office of Federal Procurement Policy 

worked with the Federal Acquisition Institute and the Defense Acquisition University to develop 

the Small Business Programs course, which provides students a foundational overview of the 

various types of small business programs, including the purpose, legal authority, governmentwide small business procurement goals, small business resources, and information on how to 

effectively utilize small business in government acquisitions. Upon completion of the course, 

students will be able to identify key personnel and offices responsible for ensuring maximum 

practicable participation of small business concerns, as well as identify considerations and 

methods for meeting small business requirements throughout the acquisition process. 

White House Initiative on Small Business Procurement. In January 2011, the White House 

established the Small Business Procurement Group to facilitate regular discussions among high-level 

officials in all agencies to share their strategies and tactics to increase contracting opportunities for 

small businesses. The initiative is designed to hold senior officials at each agency accountable to their 

small business contracting goals, share best practices, and ensure sufficient outreach and matchmaking 

events are conducted to increase small business utilization in federal contracting. As part of this 

initiative, the Obama Administration worked to formally hold senior officials accountable to these goals 

by ensuring the largest procuring federal agencies include small business procurement performance in 

the performance evaluations of senior executives whose job responsibilities include procurement.
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“We said American workers could manufacture the best products in the 

world. So we invested in high-tech manufacturing and we invested in clean 

energy...And we’re growing our exports so that more of the world buys 

products that are stamped with three simple words: ‘Made in America.’ “

- President Obama in Detroit, MI, Sept. 15, 2012

Increased Agency Accountability for Small Businesses and Underserved Communities through 

Updated Scorecard. To hold agencies accountable to their small business contracting goals, SBA 

released a new and more comprehensive contracting scorecard format in FY 2009 that improves the 

way small business contracting performance is measured across the government. The annual Scorecard 

is an assessment tool to (1) measure how well federal agencies reach their small business and socioeconomic prime contracting and subcontracting goals, (2) provide accurate and transparent contracting 

data, and (3) report agency-specific progress. The prime and subcontracting component goals include 

goals for small businesses, small businesses owned by women, small disadvantaged businesses, servicedisabled veteran-owned small businesses, and small businesses located in HUBZones.

Every two years, the SBA works with each agency to set their prime and subcontracting goals and their 

grades are based on the agreed upon goals. Each federal agency has different goals based on their 

unique procurement mix, determined annually in consultation with SBA. 

PRESIDENT BARACK OBAMA GREETS A MAN IN THE CROWD AFTER ADDRESSING THE LABOR DAY CELEBRATION IN 

DETROIT, MICH., SEPT. 5, 2011.
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Helping Small Business in Our 

Nation’s Capital Compete for 

Contracts

HUBDC is a partnership between the 

District of Columbia, the U.S. Small 

Business Administration (SBA), and 

federal government agencies awarding 

contracts through the SBA's 

Historically Underutilized Business 

Zone (HUBZone) program. HUBDC is 

designed to maximize the participation 

of small business located in HUBZones. 

SBA’s HUBZone program is designed to 

help small businesses in distressed 

areas gain preferential access to 

federal contracting opportunities. In 

Fiscal Year 2011, District of Columbia 

HUBZone firms were awarded 

approximately $321 million in prime 

contracting, including approximately 

$78 million in HUBZone set-asides.

More Efficient Government Contracting Procedures

In addition to offering increased federal contracting opportunities to small businesses, the Obama 

Administration is committed to making contracting procedures more efficient. This means small 

businesses will be able to spend more time working on the project and less time dealing with 

government bureaucracy.

QuickPay. In September 2011, the President announced that the federal government would pay small 

business contractors faster. A week later, the Office of Management and Budget (OMB) issued guidance 

to all agencies to move from paying small business prime contractors in 30 days to 15 days. This 

provides a permanent infusion of cash flow, with tens of billions of dollars getting into the hands of 

small business quicker, which can be put towards working capital, business expansion, marketing, and 

job creation.

Elimination of Programmatic Inefficiencies 

HUBZone. The Historically Underutilized Business 

Zones (HUBZone) program helps small businesses in 

designated urban and rural communities gain 

preferential access to federal procurement 

opportunities. The HUBZone Program implemented new 

processes in FY2009 and FY2010 to minimize fraud, 

waste, and abuse. This new approach minimizes the 

number of ineligible firms obtaining certification. SBA 

also performed more than 3,000 site visits of HUBZone 

firms to enhance the program’s integrity and ensure 

that the program serves the vital needs of eligible small 

businesses. This year, SBA is working with its 68 district 

offices to execute a targeted HUBZone program 

recruitment plan to increase the number of HUBZone 

certified firms, and ultimately increase the number of 

HUBZone firms winning federal contract dollars.

Revised 8(a) Regulations. The 8(a) Business 

Development Program was created to help small 

businesses owned by socially and economically disadvantaged individuals compete in the 

marketplace. It also helps these companies gain access to federal and private procurement 

markets. In 2010 and 2011, SBA conducted the first major review of the 8(a) regulations in over 

a decade. New regulations, which were drafted after gathering over 2,500 comments from small 

businesses and stakeholders were finalized and released in February 2011. The new 8(a) 

regulations, effective March 14, 2011, strengthen tools such as the mentor-protégé program 

and ensure that benefits of the program flow to the intended recipients. 

Stronger Oversight and Enforcement. Working with its federal partners, the SBA has taken multiple 

steps to strengthen oversight and enforcement to better ensure the benefits of federal small business 

contracting programs are going only to eligible firms. Significant steps have been taken to strengthen 

certification processes, bolster ongoing monitoring and oversight, and ensure timely enforcement. To 

that end, SBA has developed and implemented a three-pronged approach to small business contracting 

programs to combat fraud, waste and abuse: 
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Effective Certification Process. Clear and comprehensive eligibility screening ensures that 

only qualified, eligible firms participate in SBA programs.

Continued Surveillance and Monitoring. Targeted and thorough examinations, reviews, 

and site visits identify firms which commit fraud or no longer qualify.

Robust and Timely Enforcement. Prompt, proactive enforcement removes bad actors, 

deters wrongdoing, and reassures those entitled to participate in SBA's programs. This 

Administration is committed to ensuring the benefits of the small business contracting programs 

flow to the intended recipients and has taken more small business contracting-related 

suspension and debarment actions in the last three years than were done in the previous 

decade. 

Launching the First in the Nation Federal Procurement Center for Minority-Owned Businesses.

In direct response to the nation’s minority-owned business community and the White House initiative to 

promote greater government contracting among minority–owned businesses, Commerce’s Minority 

Business Development Agency (MBDA) launched the Federal Procurement Center (FPC) in Washington, 

DC. The FPC is the first specialty business center in the nation that assists minority-owned firms in 

competing for and winning federal government contracts. Services include information on federal 

regulations and contracting requirements and facilitation of relationships between minority-owned 

businesses and federal program managers.
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VII. Small Business Manufacturing

U.S. manufacturing has led the economic recovery, adding 485,000 jobs over the past 26 months. This 

represents the first period of sustained job growth in manufacturing since the 1990s. President Obama 

understands that we have the opportunity to build on this momentum and revitalize American 

manufacturing. Increasingly, manufacturing companies are making the decision to ‘insource’ – to bring 

jobs back home and make additional investments in America. These companies are making these 

choices because of rising costs abroad combined with the competitive advantages associated with 

American industry, including continued productivity improvements by American workers, our worldleading universities, and a strong business environment.

A strong and growing manufacturing sector is necessary for a strong and growing economy. The 

manufacturing sector provides outsized benefits, from its central role in supporting innovation, to its 

importance in exports, to its good-paying jobs. 

To support a strong and growing manufacturing sector, and accelerate the emerging trend of insourcing, 

we must have strong small manufacturers that often form the backbone of manufacturing supply chains. 

Small and medium-sized manufacturers comprise 86% of all manufacturing establishments and employ 

41% of the U.S. manufacturing workforce.

That is why the Administration is committed to encouraging more supply chain partnerships between 

small suppliers and large buyers providing small businesses the support they need to locate here in the 

BY THE NUMBERS

 The Obama Administration’s partnership with 16 of the world’s largest corporate buyers, whose 

purchasing power totals $300 billion annually, provides small businesses an opportunity to 

break into private sector supply chains.

 60,497 manufacturing jobs have been created or retained and manufacturers have made $1.9 

billion in total capital investments this year through the work of Commerce’s Manufacturing 

Extension Partnership.

 More than 220% increase in approvals and over 125% increase in dollars through SBA’s 

streamlined CAPLines working capital loan programs since October 2011. 

 Increased investment in manufacturing research and development by 29% in FY2012 and 

requested an additional 19% increase in FY 2013.

 Advanced Manufacturing Jobs and Innovation Accelerator Challenge will offer approximately

$26 million in funds and technical assistance resources from across the Administration, to 

support approximately 12 projects aimed at enhancing the competitive position of U.S. 

manufacturers.

 In March 2012, the President announced a $1 billion proposal to create a network of up to 15 

Institutes for Manufacturing Innovation around the country. 
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United States, through initiatives and programs like the American Supplier Initiative, Advanced 

Manufacturing Partnership, and Manufacturing Extension Partnership.

Supply Chains 

Large companies looking to invest in the U.S. rely on a supply chain of small businesses to support their 

production. Indeed, contracts with large companies are an important stepping stone for the growth of 

small businesses; evidence shows small businesses who were suppliers to large companies reported 

revenue growth of more than 250%, on average, between one year before and two years after their first 

sale to a large corporation. For these same small businesses, employment increased by more than 150%

on average.

10

The strength of these small manufacturers is vital to the strength of U.S. manufacturing, and has a 

critical impact on the investment decisions of larger firms. The U.S. automobile industry is a good 

example of the linkage between large and small firms. The President’s difficult decision to provide 

support to General Motors and Chrysler, on the condition that they and their stakeholders made the 

sacrifices necessary to restructure, was about more than the health of those two companies. GM and 

Chrysler were supported by a vast network of auto suppliers, which employed three times as many 

workers and depended on the auto companies business to survive. An uncontrolled liquidation of a 

major automaker would have had a cascading impact throughout the supply chain, causing failures and 

job loss on a larger scale. Because Ford and other auto companies depended on those same suppliers, 

the failure of suppliers could have caused those auto companies to fail as well. This interdependence up 

and down the supply chain led some experts at the time to estimate that were GM and Chrysler allowed 

to liquidate, at least 1 million jobs could have been lost. Strengthening U.S. supply chains is critical to 

the overall vitality of American manufacturing.
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“We’re living in a new and challenging time, in which technology has made 

competition easier and fiercer than ever before...But that shouldn’t 

discourage us. Because I know we can win that competition. I know we can 

out compete any other nation on earth. We just have to make sure we’re 

doing everything we can to unlock the productivity of American workers, 

unleash the ingenuity of American businesses and harness the dynamism of 

America’s economy.” 

- President Obama at GE, Schenectady, NY, Jan. 21, 2012

The American Supplier Initiative

The American Supplier Initiative, an Administration-wide effort, supports small and medium 

manufacturers by addressing four key areas in which small businesses need help in order to become 

successful suppliers in the private sector: access to markets, access to capital, workforce skills, and 

business capacity building.

Supplier Connection. Supplier Connection is a free, online portal created by the IBM Foundation that 

helps remove barriers that small businesses face in trying to break into large company supply chains. As 

PRESIDENT BARACK OBAMA LOOKS INSIDE A HYDROGEN COOLED GENERATOR WHILE TOURING THE GENERAL ELECTRIC PLANT IN 

SCHENECTADY, N.Y., WITH GE CEO JEFF IMMELT AND PLANT MANAGER KEVIN SHARKEY, RIGHT, JAN. 21, 2011.
50 | P a g e

Helping Small Manufacturers Export

GAME Equipment, LLC qualified for the SBA International Trade Loan to develop and expand exports. GAME 

manufactures agricultural harvesting equipment with a focus on heavy tractors to harvest sugar cane 

worldwide. GAME also produces sugar cane loaders, vegetable spraying tractors, pineapple harvesting 

equipment, and sandbag loaders, all while operating out of a single location in Napoleonville, LA with 33 

employees. Their equipment is exported to countries in South America, Africa, Europe, and Asia. 

The loan was easy to apply for and the business is growing due in large part to this loan. The equipment 

purchased with loan proceeds will allow GAME to almost triple production capacity in order to meet the 

strong demand for their products. The loan proceeds will also allow for GAME to increase employees in the 

future as production capacity continues to increase. 

of printing, the 16 companies participating in Supplier Connection are: AMD, AMYLIN, AT&T, Bank of 

America, Caterpillar, Citi Group, Dell, Facebook, IBM, JP Morgan Chase, John Deere, Kellogg’s, Office 

Depot, Pfizer, UPS, and Wells Fargo. Together, these 16 companies have a combined purchasing power 

of $300 billion and now they will have full access to the profiles of small businesses that have registered 

for Supplier Connection through SBA’s outreach efforts. SBA has encouraged over 50,000 small 

businesses to join Supplier Connection through SBA’s website, the Administrator’s blog, and direct email 

communication. 

CAPLines: Working Capital Finance. When a business lands a big new order or wins a federal 

contract, they often don’t have the necessary cash on-hand to hire workers and buy materials to fulfill it. 

SBA’s new-and-improved CAPLines program gives small contractors and suppliers the flexibility they 

need to meet their short-term and cyclical working capital needs. The program has seen more than 

220% increase in approvals and over 125% increase in dollars since being implemented in October 2011.

Loans for Small Businesses that Onshore. SBA’s International Trade Loan (ITL) program offers 

community banks a 90% guarantee on loans up to $5 million as an incentive to encourage lending to 

growing small business exporters. Small businesses may use the ITL program to on-shore and help bring 

jobs back to the U.S. 

Advanced Manufacturing 

Advanced manufacturing is a matter of fundamental importance to the economic strength and national 

security of the United States, and is of vital importance to our ongoing ability to innovate as a nation. 

Advanced manufacturing involves both new ways to manufacture existing products, and the 

manufacture of new products emerging from new advanced technologies.

Small manufacturers play an important role in the manufacturing innovation ecosystem, but often face 

unique challenges in developing and adopting technological innovations. Through existing programs and 

new initiatives, the Administration has taken steps to support commercialization and the scaling up of 

new technologies for small and medium-sized manufacturers. 
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The Manufacturing Extension Partnership

The Manufacturing Extension Partnership (MEP) serves as the connection between small manufacturers 

and technology opportunities and solutions in the global marketplace.

Innovation Engineering Leadership Institutes. MEP utilizes its network of 60 centers and 1,200 

field staff across the country to help coach manufacturers in the importance of innovation and product 

development. To date MEP has trained over 3,500 business leaders through the Innovation Engineering 

Leadership Institutes and provide follow-up opportunities to use the Innovation Engineering 

Management System that help to increase the cycles of product development and testing.

National Innovation Marketplace. MEP’s National Innovation Marketplace is a web-based portal to 

connect technology requestors (typically original equipment manufacturers, or OEMs) and potential 

suppliers. In addition, MEP’s technology scouting services help fill the specific technology needs of 

manufacturers (whether through universities, manufacturers, entrepreneurs, etc.) and supplement that 

with technology driven market intelligence that helps the manufacturer understand the growth 

potential of their innovations once technology needs are met.

Buy American Supplier Scouting. Buy American Supplier Scouting is a collaboration of federal

agencies and MEP to scout for U.S. manufacturing capabilities to support the Buy American Provisions of 

federal funding programs, including projects funded by the American Reinvestment and Recovery Act. 

Pilot collaborations with the U.S. Department of Energy’s Office of Energy Efficiency and Renewable 

PRESIDENT BARACK OBAMA SITS IN THE COCKPIT OF A 767 DURING HIS TOUR OF THE BOEING PLANT PRODUCTION 

FACILITY IN EVERETT, WASH., FEB. 17, 2012.
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Energy show the MEP Buy American Supplier Scouting program works. As of December 2011, MEP found 

exact or partial product matches for 53% of waivers submitted. Of those matched, over half were found 

to be viable U.S. suppliers and therefore the waiver requests to produce those items abroad were 

denied. MEP is also in the process of expanding the program on a larger scale with other federal efforts 

such as the Department of Transportation’s (DOT) Next Generation Rail Program. MEP is also operating 

other Supplier Scouting projects with other federal agencies and OEMs, including the Defense Logistics 

Agency, Naval Air Systems Command, and Department of Veterans Affairs (VA). These efforts focus on 

leveraging the MEP network to find small- and medium-sized U.S. manufacturers who can solve difficult 

supply chain and procurement issues facing the federal agency and OEM partners.

ExporTechTM Program. The program assists manufacturers in developing an international growth plan, 

and provides experts who vet company plans and connects the companies with federal, state and local 

organizations that can help them move quickly beyond planning to actual export sales. ExporTechTM is 

deployed nationally as a collaboration between MEP and the U.S. Export Assistance Centers as well as 

numerous state trade offices and other regional partners throughout the country. To date, 56 

ExporTechTM program have been completed in 23 states with over 380 companies participating.

Companies that have gone through the ExporTechTM program report significant impacts to their bottom 

lines:

The average participant increases sales by nearly $170,000

Many companies generate export sales within 3 to 6 months of completing the program, and 

some have negotiated sales before the program’s final session

The average participant reported cost savings of $34,000

The program saves the average company over 120 hours of labor time by navigating them 

through the international growth process

Advanced Manufacturing Partnership. Launched by the President in June 2011, the Advanced 

Manufacturing Partnership (AMP) is a national effort bringing together the Federal government, 

industry, universities, and other stakeholders to identify and invest in emerging technologies with the 

potential to create high-quality domestic manufacturing jobs and enhance the global competitiveness of 

the United States. To build on the success of the AMP, the Administration has launched the Advanced 

Manufacturing National Program Office, to coordinate federal efforts supporting advanced 

manufacturing initiatives. As part of the initial launch, the Administration announced a $500 million 

investment to:

Build Domestic Manufacturing Capabilities in Critical National Security Industries.

Beginning in Summer 2012, the Departments of Defense, Homeland Security, Energy, 

Agriculture, Commerce and other agencies will coordinate a government-wide effort to leverage 

their existing funds and future budgets with an initial goal of $300 million, to co-invest with 

industry in innovative technologies that will jumpstart domestic manufacturing capability 

essential to our national security and promote the long-term economic viability of critical U.S. 

industries. Initial investments include small high-powered batteries, advanced composites, 

metal fabrication, bio-manufacturing, and alternative energy, among others. 

Reduce the Time to Develop and Deploy Advanced Materials. The Materials Genome 

Initiative is investing more than $100 million in research, training and infrastructure to enable 

U.S. companies to discover, develop, manufacture, and deploy advanced materials at twice the 

speed than is possible today, at a fraction of the cost. In much the same way that advances in 
53 | P a g e

silicon technology helped create the modern information technology industry, advanced 

materials will fuel emerging multi-billion dollar industries aimed at addressing challenges in 

manufacturing, clean energy, and national security.

Invest in Next-Generation Robotics. The National Science Foundation (NSF), National 

Aeronautics and Space Administration (NASA), National Institutes of Health (NIH), and the 

Department of Agriculture (USDA) are coming together to make available $70 million to support 

research in next generation robots. These investments will help create the next generation of 

robots that will work closely with human operators – allowing new ability for factory workers, 

healthcare providers, soldiers, surgeons and astronauts to carry out key hard-to-do tasks. 

Develop Innovative Energy-Efficient Manufacturing Processes. The Department of 

Energy (DOE) will launch an effort to leverage their existing funds and future budgets, with 

initial goal of $120 million to develop innovative manufacturing processes and materials to 

enable companies to cut costs of manufacturing, while using less energy. 

National Network for Manufacturing Innovation. In March 2012, the President announced a $1 

billion proposal to create a network of up to 15 Institutes for Manufacturing Innovation around the 

country. The Institutes will bring together industry, universities and community colleges, federal 

agencies, and states to accelerate innovation by investing in industrially-relevant manufacturing 

technologies with broad applications to bridge the gap between basic research and product 

development, provide shared assets to help companies – particularly small manufacturers – access 

cutting-edge capabilities and equipment, and create an unparalleled environment to educate and train 

students and workers in advanced manufacturing skills. The first pilot institute will be funded with an 

initial $45 million investment from the Department of Defense (DOD), DOE, DOC, and NSF. The pilot will 

be selected through a competitive process that uses existing resources and fits within the agencies’ 

statutory missions, using current funding and authorities, while addressing key challenges faced by the 

U.S. manufacturing sector.

Advanced Manufacturing Jobs and Innovation Accelerator Challenge. Anticipated for 

announcement in mid-May, 2012, the Advanced Manufacturing Jobs and Innovation Accelerator 

Challenge is expected to offer approximately $26 million in funds from the DOC’s Economic 

Development Administration (EDA), the National Institute for Standards and Technology (NIST), DOE,

DOL’s ETA, SBA, and NSF and technical assistance resources from several additional agencies, to support 

approximately 12 projects aimed at enhancing the competitive position of U.S. manufacturers in the 

global marketplace and strengthening U.S. advanced manufacturing capabilities in key industries. 

Cluster-based investments bring together educational and research organizations, state and regional 

economic development authorities, and the private sector to conduct proof-of-concept and 

commercialization activities.

Matchmaking Tool. Today’s advanced manufacturers need the physical capacity to establish 

businesses quickly and build things competitively. Currently hundreds of millions of square feet of 

commercial, industrial and manufacturing space sits idle due to plant closures. EDA is creating a pilot 

system to match companies in need of production facilities with vacant space to help turn those empty 

sites into thriving, productive facilities of advanced manufacturing. The goal is to create a model, based 

on four to six key manufacturing communities in key states that could be replicated to create a 

nationwide inventory. This new tool will be a valuable resource for domestic companies looking to 

expand as well as foreign companies exploring the North American market. 
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National Design Engineering and Manufacturing Consortium. Funded by EDA (along with other 

federal agencies, private, state, and university partners that provide financial or technical assistance), 

NDEMC enables small and medium-sized manufacturers to develop and test their products using 

advanced modeling and simulation tools that have historically only been available to large companies. 

NDEMC is designed to exploit regional commonalities among supply chain industries and its operational 

framework is expected to be self-sustaining, scalable, and transferable to other industry sectors and 

regions across the U.S.

Accelerating Development and Deployment of Advanced Manufacturing Capabilities. NIST is 

investing over $90 million in R&D targeting challenges in advanced manufacturing. NIST research in 

advanced manufacturing supports industry by providing the measurement technologies and solutions 

necessary to improve productivity and efficiency of existing manufacturing processes or to enable the 

manufacture of new advanced technologies. NIST R&D in advanced manufacturing is targeting:

Nanomanufacturing. NIST is developing measurement methods to help companies overcome 

technical barriers to cost-effective, high-volume nanomanufacturing of materials, devices, and 

systems. Key customers include aerospace, semiconductor electronics, and solar industries.

Biomanufacturing. Working closely with industry and the Food and Drug Administration, NIST 

is developing the tools needed to support more efficient and controllable manufacturing 

processes for biologic drugs, a multibillion dollar industry. 

Smart Manufacturing. NIST is developing the measurements and standards to support wide 

spread adoption of improved automation, robotics, quality control, and supply chain 

management tools to help manufacturers improve their competitiveness.

Advanced Materials. Working with customers from the automotive, aerospace, chemical, and 

materials industries NIST is developing the modeling tools necessary to reduce the time and cost 

between the discovery of new materials and their commercial deployment.
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VIII. National Export Initiative: Increasing U.S. Exports

With 95% of the world’s consumers living outside our borders and the International Monetary Fund 

forecasting that nearly 87% of world economic growth over the next five years will take place outside of 

the United States,11 there are enormous opportunities for American small businesses to sell their 

products and services around the globe. 

To help more businesses reach these markets, President Obama established the National Export 

Initiative (NEI), with the goal of doubling U.S. exports by end of 2014. 

A key component of the NEI is ensuring that America’s small businesses have the tools, resources and 

relationships they need to make exporting a growing part of their business operations. 

Small businesses face particular resource hurdles, limiting the ability of many to participate in global 

trade. For example, small businesses are more likely to need external financing to undertake an export 

transaction, a particularly daunting task with the tightening of credit markets. Small businesses also face 

insufficient knowledge of foreign markets, in contrast with larger firms’ access to market intelligence 

and direct presence in targeted foreign markets. In addition, small businesses are also less likely to know 

about federal government assistance and services that can support their growth into foreign markets. 

Finally, small businesses face higher real and perceived risks of exporting. They have fewer resources to 

address trade barriers, and they are less likely to have a diversified foreign customer base.

BY THE NUMBERS

 More than 6% increase in the number of small businesses exporting between 2009 and

2010 – more than 293,000 small business exporters, exceeding the previous record in 

2008. 

 Following an increased focus on small business through the National Export Initiative, a 

growing number of small businesses are helping America meet the President’s five year 

goal of doubling exports and increasing the number of export-supported jobs by 2 million.

 More than $60 million committed to federal-state-local partnerships through the State 

Trade Export Promotion grant program to increase small business exports in communities 

across the country. 

 More than 87% of the Export-Import Bank’s transactions in FY 2011 were with small 

businesses, supporting $6 billion in total financing for small business exports and reaching 

record high levels for the third year in a row.

 The Overseas Private Investment Corporation provided nearly $1 billion in financing and 

political risk insurance to U.S. small and medium enterprises, representing nearly 80% of 

its projects in FY 2011. 
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The NEI addresses these challenges through five key priorities: 

Improving advocacy and trade promotion, 

Increasing access to export financing, 

Reducing barriers to trade, 

Enforcing trade rules, and 

Promoting strong, sustainable, and balanced growth.

The Obama Administration's targeted focus on supporting America's exporters through the National 

Export Initiative is strengthening our recovery. Exports are contributing significantly to the United 

States’ overall economic recovery. In 2011, just the second year of the NEI, U.S. exports of goods and 

services hit record levels, totaling $2.11 trillion. Exports of goods and services supported 9.7 million jobs 

in 2011, up 1.2 million from the 2009 level of 8.5 million, which means we are 60% of the way to the 

President’s goal of increasing export-supported jobs by 2 million jobs in just the first two years of the 

NEI. Export-supported jobs accounted for 6.9% of total U.S. civilian employment in 2011. Moreover, a 

new trend points to small and medium enterprises (SMEs) accounting for a growing share of national 

exports. According to the U.S. Census Bureau, firms with fewer than 500 employees steadily raised their 

share of overall U.S. goods exports from 27% in 2002 to 34% in 2010 – a seven percentage point 

increase over eight years. 2010 also saw a record 293,000 companies exporting, rebounding from the 

276,000 that exported during the financial crisis in 2009 and exceeding the previous record of 290,000 in 

2008.

12

Improving Advocacy and Trade Promotion

Under the National Export Initiative, the Export Promotion Cabinet and Trade Promotion Coordinating 

Committee agencies have increased their efforts to help U.S. companies export around the globe. For 

example, the Administration developed an enhanced client intake registration form on www.export.gov, 

the federal government’s export assistance web portal. The form enables agencies to more accurately 

identify new-to-export and new-to-market U.S. companies and refer them to the most appropriate 

federal resources for personalized service. 

In addition, the Obama Administration is helping small businesses to export through a number of key 

initiatives: 

Small Business Working Group Trade Promotion Coordinating Committee. TPCC is the 

interagency body that is principally responsible for coordinating the development of trade promotion 

policies and programs to meet the President’s mandate to double U.S. exports by the end of 2014. 

Various activities of the interagency group include: Coordinating on the redesign of the www.export.gov 

web site to help new-to-export and new-to-market companies; implementing a “Train the Trainers” 

program; creating “Export Outreach Teams” nationally to provide local small business counselors with 

exporting basics; connecting SMEs to export opportunities such as Export Intermediary Matchmaker 

events around the country; providing trade finance counseling at major international trade shows; 

coordinating with Ex-Im Bank on an outreach effort to train more community bank lenders in 

government-guaranteed, trade financing programs; partnering with the Federal Reserve Bank’s district 

offices and Office of the Comptroller of the Currency’s regional offices; and training lenders on the 

USG’s export finance programs.
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DOC Advocacy and Export Promotion Efforts. Since the implementation of the NEI, the International 

Trade Administration’s (ITA) U.S. and Foreign Commercial Service (US&FCS) has helped more than 9,200 

U.S. companies successfully export, supporting over $100 billion in total exports. Approximately 85% of 

the companies assisted by US&FCS clients are small and medium businesses. Commerce has also 

coordinated 77 trade missions to 38 countries with over 1,100 companies participating. Participating 

companies have secured more than $1.25 billion in export sales as a direct result of these trade 

missions. Small businesses represented 81% of all trade mission participants from 2008 to 2011. US&FCS 

led this effort, with support on specific trade missions from partners, such as Fed Ex, the U.S. Chamber

of Commerce and other state and local partners. 

SelectUSA. Established by Executive Order of the President, SelectUSA is a government-wide 

initiative to drive business investment in the United States and serve as an ombudsman to the 

investor community. As part of the US&FCS, SelectUSA works with state, regional, and local 

economic development organizations to promote and facilitate overall U.S. business attraction 

and retention, while exercising strict geographic neutrality.

Foreign Buyer Delegations. The U.S. Commercial Service’s International Buyer Program 

matches foreign buyers with U.S. exhibitors at U.S. trade shows. For SMEs with limited resources 

to travel abroad, this program provides an excellent opportunity to connect directly with foreign 

buyers and distributors. Since the implementation of the NEI, ITA has recruited over 25,000 

foreign buyers to visit major U.S. trade shows and directly connect with U.S. companies, which 

have resulted in $1.7 billion in export successes. IBPs enable U.S. companies to meet a breadth 

of prospective buyers from around the world all in one domestic venue. Given this, there is 

significant demand from U.S. trade show organizers to participate in the IBP.

Trade Fair Certification Program. One of the fastest ways to increase exports by U.S. 

companies is to encourage them to attend major trade shows in other countries. Since the 

implementation of the NEI, 6,500 companies have participated in trade shows certified by the 

Department of Commerce, resulting in nearly $11 billion in exports. 

Commercial Advocacy. Commercial advocacy is designed to coordinate Federal Government 

resources and authorities to level the playing field on behalf of U.S. business interests as they 

compete with foreign firms. The commercial advocacy process leverages the instruments of U.S. 

diplomacy on behalf of U.S. companies to ensure fairness and transparency. Since the 

implementation of the NEI, ITA’s Advocacy Center recorded 46 advocacy wins and helped U.S. 

companies successfully compete for $72 billion in international contracts with total U.S. export 

value of more than $44 billion. 

IPR Attaché Program. USPTO supports U.S. rights holders by advocating strong IPR protection and 

enforcement by U.S. trading partners. The program currently includes attaché posts in Beijing, 

Guangzhou, New Delhi, Moscow, Cairo, Rio de Janeiro, Bangkok, Geneva, and Mexico City.

Patent Prosecution Highway. USPTO and partner countries reciprocally offer expedited treatment for 

patent applications that have issued as patents in any of 22 corresponding countries. The program helps 

U.S. applicants export their technology to foreign markets quickly after receiving a U.S. patent, by 

significantly lowering the time and cost of examination and raising the likelihood of allowance in foreign 

patent offices. As a result, there is greater opportunity for small businesses to compete and grow 

internationally.
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The Market Development Cooperator Program. This DOC program is designed to expand U.S. 

exports and supports the President’s National Export Initiative. The MDCP provides Federal financial and 

technical assistance to trade associations, chambers of commerce, and other industry groups that are 

particularly effective in reaching and assisting SMEs. MDCP partnerships help to underwrite the startup

costs of competitiveness-enhancement projects, which these groups are often reluctant to undertake 

without Federal Government support. 

Technical Assistance for Specialty Crops Program. Due to an extensive outreach effort by USDA in 

2010 targeting the U.S. horticultural industry, the TASC program allocated more than $7.3 million (a 

record) in FY 2010 to 26 organizations representing hundreds of small businesses. TASC works to open, 

retain, and expand export markets for U.S. specialty crops.

International Small Business Collaboration. The Obama Administration understands that it is 

difficult for small businesses to make connections overseas. The following programs help to remedy that 

problem.

International Visitors Center. The SBA International Visitors Center works closely with 

foreign dignitaries and business leaders to provide key information on the U.S. economy and on 

SBA’s unique support structure for small businesses. Since the start of the Administration, the 

Center has met with over 4,000 visitors from more than 125 countries.

China Road Shows. USPTO offers IP-related programs to SMEs in cities nationwide. The 

program provides information and resources to help SMEs obtain and protect their IP in China 

and increase their awareness of threats of IP theft in China. The program guides both SMEs that 

are currently operating in China and those that are considering it.

Trade Shows. Trade shows are one of the most effective tools to successfully link U.S. small 

businesses to foreign buyers of agricultural products. U.S. pavilions at international trade shows 

create national identity and visibility for all U.S. exhibitors. In CY 2010, USDA supported U.S. 

Pavilions at 27 international trade shows in 19 countries. As a result, nearly 1,000 exhibitors, 

most of which are small and medium sized businesses, reported $179 million of on-site sales and 

over $1 billion of estimated 12-month sales. U.S. companies introduced over 6,000 new-tomarket products and made close to 16,000 serious business contacts at those shows. On 

average, 70% of the companies participating in these shows were small companies. 

Reverse Trade Missions. Reverse trade missions bring overseas buyers to the United States 

to introduce them to U.S. products and exporters. USDA made increasing the number of reverse 

trade missions a major focus in 2010. This campaign brought more than 2,400 foreign buyers 

together with U.S. small businesses as part of more than 240 such trade missions. 

MBDA Taking Firms Global – South Africa, China and Australia. In FY2011, MBDA, in 

partnership with Navistar and Cummins Engine, attended a Business Investment and 

Opportunity Mission hosted by the South African Department of Trade and Industry. The goals 

of the mission were to help create jobs in the U.S. economy and to provide minority-owned 

businesses with direct exposure to U.S. automotive original equipment manufacturers (OEMs) in 

South Africa. Specifically, this mission provided MBDA’s diverse manufacturing clients with 

direct market exposure to more than $100 million in contract opportunities with U.S. 

automotive OEM’s already doing business in South Africa. The South African trade mission also 
59 | P a g e

exposed investors to MBDA’s expert knowledge and capabilities, and our commitment to 

matching South African opportunities with U.S. minority-owned businesses in the automotive 

industry. Every business participating in the mission is now pursuing opportunities either in 

South Africa or in the U.S. as teaming partners. 

Increasing Access to Export and Investment Financing. Access to credit remains a major issue for 

exporters, especially small businesses. The trade finance agencies –SBA, Ex-Im Bank, and USTDA – have 

taken steps to expand or maximize the use of their export credit programs. The Overseas Private 

Investment Corporation (OPIC) offers development financing tailored specifically to U.S. small 

businesses, helping these companies gain footholds in emerging markets.

Since the implementation of the NEI, the SBA has guaranteed 2,651 export finance loans to 

2,127 small businesses, for a total of $1.3 billion in loans awarded. The total export value 

supported by the loans was $2.8 billion. In addition, 7,136 individual lenders (primarily 

community bank representatives) were trained on granting international trade finance loans. 

Financing provided by the Export-Import Bank enables U.S. exporters to compete on a levelplaying field by providing capital not available through commercial markets and minimizing U.S. 

exporters’ international commercial and political risk. Since the implementation of the NEI, ExIm Bank’s financing for small businesses has exceeded $14 billion. In FY 2010 and again in FY 

2011, nearly 90% of the number of total transactions approved by Ex-Im Bank involved small 

business exporters.

Annual Small business financing has risen almost 100% from $3.2 billion in 2008 to over $6.0 

billion in 2011. The increased volume was driven by changes in processes that facilitated 

participation with banks, brokers and other export intermediaries, and by the development of 

products that mirrored the needs of small businesses. The increase has been achieved on the 

same level of staff.

As part of its efforts to increase the extension of export related credit to small businesses, Ex-Im 

Bank's Global Access for Small Business initiative has held 34 forums across the country over this 

period and 12 on-line Webinars in the past year, reaching approximately 5,000 small business 

exporters.

Financial support for the expanding international activities of small business extends beyond 

export financing. OPIC, the U.S. Government's development finance institution, helps U.S. small 

businesses reach new customers and expand into emerging markets which can otherwise be 

difficult to access. It offers medium- to long-term financing and political risk insurance to U.S. 

companies making eligible investments in developing and emerging markets, where 

conventional financial institutions are reluctant to lend. In FY 2011, 78% of OPIC's projects, 

representing nearly $1 billion in commitments, involved American small and medium-sized 

businesses.
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Increasing Trade Support through the Small 

Business Jobs Act. The Small Business Job Act 

(SBJA) was passed by Congress in September 2010 

and included several changes to SBA’s Office of 

International Trade structure and programs. 

Highlights include:

A Permanent Export Express Loan 

Program. The Export Express pilot loan 

program became a permanent program 

with 90% guarantees for loans up to 

$350,000 and 75% guarantees for loans up 

to $500,000.

Permanent Higher Loan Limits for the

Export Working Capital Program and 

International Trade Loans. The Act 

significantly increases the maximum loan 

sizes for Export Working Capital and 

International Trade Loans to $5 million.

State Trade and Export Promotion (STEP) 

Grants Pilot. The State Trade and Export 

Promotion Program is a three year pilot grant 

initiative (funded for two years), intended to 

increase the number of small businesses that 

export and to increase the value of exports by the 

small business sector. 

The 50 states, the District of Columbia, the 

Commonwealth of Puerto Rico, the Virgin Islands, 

Guam, and American Samoa are eligible to apply 

for competitively awarded grants under the 

Program. 

Activities authorized under the program include participation in foreign trade missions and market sales 

trips, subscriptions to services provided by the DOC, design of international marketing products and 

campaigns, development of export trade show exhibits, sponsorship of training, and other efforts 

aligned with program goals. 

Increased Export Financing. With the increases in allowable loan size, community banks have 

expressed a renewed interest in participating in SBA’s export loan programs. By the end of 2011, 517 

community banks had signed up to offer the permanent Export Express program. The number of 

community banks approved to offer the Export Working Capital loan program under delegated authority 

increased by over 70% since the passage of the SBJA, making it easier and quicker for exporters to 

obtain trade financing. The International Trade Loan Program (ITL) facilitates access to capital for small 

businesses that are currently manufacturing products abroad and now want to bring their production 

facilities back into the U.S. for the purposes of exporting to take advantage of increased labor 

productivity, proximity to raw materials, quality control, re-linking their supply chain, and other such 

Export Working Capital To Help Manage Long 

Payment Cycles

With a mounting concern for the worldwide 

harmful effects of many well-known and much 

used agricultural insecticides, fungicides, and 

herbicides, Jose A. Lopez founded Marketing Arm 

International, Inc. in 1993 to develop and market 

only environmentally safe and friendly agricultural 

products of the highest quality and performance. 

Proud to be “green,” the Company’s products are 

used by farmers, agronomists, horticulturalists and 

even homeowners worldwide. From its humble 

beginnings in Mr. Lopez’ living room and with SBA’s 

help, the company has grown to occupy 12,000 

square feet of manufacturing & warehouse space,

and to employ a workforce of 11 employees. In 

order to expand to the other side of the globe, 

Marketing Arm International needed additional 

lines of credit to accommodate the long cash cycle 

associated with international sales. The SBA’s 

Export Working Capital Program allows the 

company to successfully manage this cycle and 

aggressively pursue new markets. Marketing Arm 

has steadily increased its export sales to 

approximately $9M in 2011, covering over 30 

countries in Central and South America and Asia. 

With its recently expanded export working capital

line of credit, the company will begin its entry into 

Asian markets by participating in the US 

Department of Commerce’s Trade Winds Asia trade 

mission in May 2012. 
61 | P a g e

reasons. The ITL can also be used to assist a small business that is experiencing an adverse impact from

imports, even if they are only selling their products domestically. Certain qualifications must be met to 

take advantage of the ITL Loan Program under these circumstances. 

The dollar volume for loans made under all three core SBA loans for exporters increased significantly 

between FY2010 and FY2011. The Export Working Capital program volume increased by over 108%, 

growing from $128 million to $266 million. The Export Express program volume increased 168%, 

growing from $13.5 million to $36.2 million. The International Trade Loan volume increased over 

1,200%, growing from $2.3 million to $31.2 million. Since the inception of the NEI, SBA has supported 

nearly $1.8 billion in small business exports through its loan guarantee programs.

In the past two years, more than 500 community bank lenders have been trained through joint efforts 

with bank regulatory agencies in seven cities and in an online webinar. Going forward, the goal is to 

train another 500 community bank lenders in 7 to 8 cities throughout the country and an additional 

webinar in the coming year, thereby helping to expand the financial infrastructure for delivering trade 

financing to small and medium-sized exporters.

Global Access for Small Business. On January 13, 2011, Ex-Im Bank launched Small Business Global 

Access in partnership with the National Association of Manufacturers, the U.S. Chamber of Commerce, 

and several financial institutions. This initiative is dedicated to dramatically increasing the number of 

small businesses exporting goods and services in order to maintain and create U.S. jobs. To date, Ex-Im 

has sponsored 34 Global Access forums for small businesses around the country. These forums bring 

exporters together with community banks, insurance brokers, other USG agencies and Ex-Im export 

finance specialists for one-on-one training in Ex-Im Bank finance and insurance products. An estimated 

total of 3,000 small businesses have attended these events. In addition, to help meet the ambitious 

goals of Global Access, Ex-Im is also holding several webinars throughout the year and has developed a 

new small business portal on the Bank's website.

Global Credit Express. Ex-Im Bank recently launched its first direct loan program to help small 

business exporters access hard-to-find short term working capital lines of credit. Under the Global Credit 

Express pilot program with 9 lenders, small businesses are able to access 6 to 12 month working capital 

lines of credit of up to $500,000. This year, the program could help small exporters access up to $100 

million in much needed capital.

Supply Chain Financing. In 2010, Ex-Im Bank developed its Supply Chain Finance Guarantee product 

to enable small business suppliers to borrow at reduced rates, minimize their need for borrowing, 

maximize cash flow and more precisely manage their risk. It is designed to enable suppliers to sell their 

accounts receivable to a lender to obtain early payment of invoices, thereby allowing them to increase 

liquidity to fulfill new orders. Ex-Im has already approved over $1.5 billion in these facilities for suppliers 

to four large U.S. exporters which is making credit available to over 1,000 of their small business 

suppliers. 
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Express Insurance. Designed in 2010 specifically for small businesses, Express Insurance reduces the 

time frame and the complexity of insurance that small businesses obtain to protect their export 

receivables from foreign buyer and country risk. The application is reduced from 4 pages to 2, the risk 

coverage is simplified, and the target turnaround time for a quote is 5 days. To date, Ex-Im Bank has 

issued over 200 Express Insurance policies in the amount of over $150mm, almost all of which is issued 

to new small business customers.

USDA Support for Small Businesses. USDA market development programs support the efforts of U.S. 

companies, including small businesses, to build and maintain commercial markets overseas for hundreds 

of food and agricultural products. USDA’s partners in developing trade at the state level specifically 

focus on supporting small and medium sized business export efforts. In CY 2010, through its 

partnerships with State Departments of Agriculture, USDA allocated $29.1 million to 802 small U.S. 

agricultural companies to carry out promotions of their branded products around the world. These 

programs are some of the initiatives and tools designed for U.S. small businesses to increase their 

presence overseas. 

Trade Facilitation Desk. In response to concerns of U.S. agribusinesses, including small 

businesses, USDA launched a Trade Facilitation Desk (TFD) to help clarify and identify the 

documentation required to successfully export food and agricultural products. The TFD serves as 

an “ombudsman” and key point of contact for exporters, small and large, seeking assistance and 

guidance on our trading partners’ import requirements. The TFD also provides assistance with 

shipments that are detained at port of entry, including expeditious outreach to foreign 

governments and U.S. regulatory agencies to minimize the costs associated with detention of 

the shipment.

 

Export Credit Guarantee Program. The GSM-102 Program provides credit guarantees to 

encourage financing of commercial exports of U.S. agricultural products. In CY 2010, the GSM102 Program facilitated the export of approximately $3.2 billion in agricultural products. In 

continued efforts to expand knowledge and use of the GSM-102 Program, USDA implemented a 

Company Moves Operations Back from China and Creates More U.S. Jobs

ServerLIFT is a high-tech company that specializes in the manufacturing of lifts for lifting and handling data 

center servers. It was founded in 2002 in response to a growing demand for a safe and efficient way for staff 

to handle servers and other IT equipment in data centers.

This company originally manufactured in China and moved operations back to the U.S. in several stages over 

the past few years. In the last year this effort, combined with growth in domestic and international sales, 

helped ServerLIFT double the number of its U.S. employees. They received a $250,000 Express Insurance

policy from Ex-Im Bank in June, 2011, with approved foreign buyers in Ireland and Turkey. This new financing 

product was developed specifically for qualified small businesses. It features a streamlined application and 

provides both a policy quotation and two foreign-buyer credit indications up to $300,000 within five business 

days. ServerLIFT can now seek new business by extending terms to international buyers via Express Insurance. 

As a result of having an insurance policy with Ex-Im Bank, ServerLIFT has expanded its list of potential 

distributors and, therefore, driven up overall sales.

"The Bank's support gives us the support that we need to pursue foreign buyers," said Ray Zuckerman, CEO of 

ServerLIFT. "Extending credit makes us more attractive to our customers and allows us to sell to larger 

companies."
63 | P a g e

“contact the exporter” procedure benefitting small, new-to-export firms. This procedure offers 

assistance in using the program and introduces firms to a contact person, who can provide 

necessary information for successful program usage. 

Joint Efforts. USDA also increased its efforts to reach small, new-to-export businesses in 

collaboration with other U.S. Government export finance partners. USDA staff participated in 

joint seminars and conferences with the Ex-Im Bank, the SBA, and the DOC. These joint efforts 

have enhanced interagency coordination on export finance and ensured that conference 

participants (including exporters and financial institutions) are made aware of the full gamut of 

U.S. Government export finance opportunities. 

Reducing Barriers to Trade 

Under the National Export Initiative, the Administration has made a renewed effort to reduce barriers to 

foreign markets, particularly overseas. Tariff barriers, burdensome customs procedures, discriminatory 

or arbitrary standards, and lack of transparency relating to relevant regulations in foreign markets 

present particular challenges for our SMEs selling abroad.

Newly Enacted and Pending Free Trade Agreements. As of May 15, 2012, the trade agreements 

with Korea and Colombia had entered into force, and the Panama trade agreement was still pending. 

These agreements will open these important markets to U.S. exporters by lowering duties on many U.S. 

exports, and addressing non-tariff barriers that impact many small businesses. 

Trans-Pacific Partnership. The Trans-Pacific Partnership (TPP) is a key initiative through which the 

Administration seeks to advance the United States’ multi-faceted trade and investment interests in the 

Asia-Pacific region, by negotiating an ambitious, 21st regional trade agreement. In addition to the highstandard, market opening elements of current U.S. trade agreements, the TPP will feature cross-cutting 

issues not tackled in previous trade agreements including strengthening small and medium-sized 

enterprises through greater participation in international trade. 

Robust Enforcement of Trade Rules. The Obama Administration is aware that efforts to enhance U.S. 

commercial competitiveness and to maximize the potential of U.S. exporters can be thwarted by unfair 

trade practices of foreign governments and firms. Ensuring that U.S. companies and workers have the 

opportunity to compete on a level playing field is thus a critical part of the Administration’s efforts to 

advance business competitiveness in the U.S. and abroad, and is a key component of the NEI. 

The Administration actively monitors foreign government compliance with trade agreements to which 

the United States is a party and pursues enforcement actions, using dispute settlement procedures and 

applying the full range of U.S. trade laws when necessary. 

Creation of the Interagency Trade Enforcement Center. In his 2012 State of the Union Address, the 

President called for “the creation of a trade enforcement unit that will be charged with investigating 

unfair trading practices in countries like China.” The President carried through on that commitment on 

February 28, through the signing of an Executive Order that established the Interagency Trade 

Enforcement Center (ITEC). The ITEC brings a “whole-of-government” approach to addressing unfair 

trade practices and has the following core missions: (1) to coordinate the enforcement of U.S. trade 

rights under international trade agreements and domestic trade enforcement authorities; (2) to liaise 

with the U.S. Intelligence Community for the exchange of information related to potential violations of 

international trade agreements by our foreign trade partners; and (3) to conduct outreach to U.S. 
64 | P a g e

workers and businesses in order to better identify foreign trade barriers. As appropriate, the ITEC will 

support U.S. engagement with foreign trade partners through the World Trade Organization, as well as 

through increased utilization of trade enforcement authorities under various domestic trade laws. The 

Office of the U.S. Trade Representative (USTR) and DOC are leading the efforts of ITEC, with the support 

of USDA, DHS, Department of Justice (DOJ), Department of State, and Treasury, as well as the 

Intelligence Community.

Taking Robust Action on Trade Enforcement Since Day One. The Obama Administration’s new 

initiative on trade enforcement builds upon substantial efforts since the start of the Administration to 

defend the rights of U.S. workers, businesses, farmers, and ranchers under international and domestic 

trade rules.

World Trade Organization. The Obama Administration achieved a landmark win for 

American aerospace workers in 2010, when the WTO ruled that European governments had 

illegally subsidized Airbus’s large civil aircraft by more than $18 billion over four decades. The 

Administration has also initiated five strategic and systemic disputes in the WTO against China—

doubling the annual rate of WTO challenges against China compared to the prior Administration 

and going to the core of China’s industrial policies, including its export restraints on industrial 

raw materials, prohibited subsidies for wind power equipment, and misuse of trade remedy 

investigations to restrict U.S. exports to China. 

Import Safeguards. In 2009, President Obama ordered safeguards applied to tire imports 

from China, a move that addressed a surge of tires from China and that led U.S. tire companies 

to increase production by more than 10%, hiring more than 1000 workers in the process. In so 

PRESIDENT BARACK OBAMA ACKNOWLEDGES FORD CHIEF EXECUTIVE OFFICER ALAN, MULALLY, AND OTHER AUTO 

INDUSTRY LEADERS AND GOVERNMENT OFFICIALS DURING THE ROSE GARDEN ANNOUNCEMENT OF NEW FUEL AND 

EMISSIONS STANDARDS, MAY 19, 2009.
65 | P a g e

doing, the President applied the “Section 421” safeguard law for the first time since China joined 

the WTO in 2001. In 2011, the Administration achieved a WTO Appellate Body win affirming the 

legality of the safeguard. 

Counseling SMEs about Recourse from Unfair Trade Practices. SMEs and their workers are a 

critical driver of growth and innovation in the U.S. economy. Because such firms are often unaware of 

the range of relief that the AD/CVD laws can provide to remedy trade distorting practices, IA’s Petition 

Counseling and Analysis Unit regularly advises SMEs about the recourse that the unfair trade laws can 

provide. In FY 2011, IA conducted 345 of these types of counseling sessions with U.S. companies, over 

65% of which were with SMEs. In addition, IA provided assistance to nearly 100 exporters facing foreign 

trade remedy actions. These companies include major U.S. manufacturers, small- and medium-sized 

exporters, and producers of key agricultural exports. Together, these firms employ more than 1.6 million 

Americans and have substantial operations in more than 35 states. 

Trade Agreements Compliance Program. Since the start of the NEI, DOC’s Trade Agreements 

Compliance Program has initiated 208 investigations of foreign trade barriers affecting small business, 

and successfully resolved 67. Examples include removing the burdensome and non-transparent Chinese 

certification requirements affecting a York, Pennsylvania, specialty refrigerator company, and ensuring 

that Chile provides procedures for all U.S. companies to obtain advance rulings on customs matters, 

increasing predictability which is particularly useful to resource-constrained small businesses. 

Protecting Intellectual Property Rights. DOC has undertaken numerous activities and generated 

resources to assist SMEs to protect and enforce their IPR, both in the United States and abroad. DOC’s 

International Trade Administration (ITA) launched and maintains the U.S. Government’s IPR Portal, 

www.STOPfakes.gov, which provides businesses with the ability to educate themselves on IPR issues in 

the U.S. and in foreign markets, get free advice from private sector lawyers, communicate concerns 

about IPR-related trade problems to trade specialists from the Office of Intellectual Property Rights and 

report IPR violations to law enforcement agencies. The DOC also established the 1-866-999-HALT hotline 

answered by U.S. Patent and Trademark Office (USPTO) IPR experts, who work with the Office of 

Intellectual Property Rights to help businesses secure and enforce their IPR through international 

treaties. The White House Intellectual Property Enforcement Coordinator, through the development and 

implementation of the Administration’s Joint Strategic Plan on Intellectual Property Enforcement, 

coordinates with the Departments of Agriculture, Commerce, Health and Human Services, Homeland 

Security, Justice, State, Treasury, and the Office of the United States Trade Representative to improve 

enforcement of intellectual property owned by U.S. small businesses here at home and overseas.
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IX. Tapping the Potential of Underserved Communities

America is engaged in the toughest global competition in its history and we cannot succeed without 

every player in the game. Yet, some of America’s most promising entrepreneurs, including womenowned and minority-run businesses, face an uphill struggle. A recent study by the Kauffman Foundation 

found that women high-tech entrepreneurs raised nearly 70% less capital when starting their firms than 

men did.13 Small dollar loans on the balance sheets of our nation’s banks, which are heavily correlated to 

underserved communities, are down about 20% or $53 billion since 2008. 

We need the contributions of every entrepreneur to underpin our future prosperity. Central to the goal 

of creating an economy built to last is ensuring all of America’s innovators have access to the tools they 

need to start or grow their business and opportunities to succeed. That’s why President Obama has 

worked every single day to cultivate a more inclusive, more open and more equal environment that 

supports the contributions of all America’s entrepreneurs.

Helping Minority-Owned Small Businesses Grow and Hire

African American-Owned Small Businesses. The success of the nearly 2 million African Americanowned businesses in the United States is critical to our economy. African American firms are an engine 

of job creation, from 2002 to 2007 paid employment by African American-owned firms grew by 21% 

from 754,000 to nearly 910,000 compared to a decrease in employment of 1% for non-minority firms. 

President Obama is committed to ensuring these firms have the tools they need to continue to grow and 

create jobs in their communities.14

Expanding Access to Capital. Since the start of the Administration through March 31, 2012, 

over $1.5 billion through over 5,600 SBA loans went to African American small businesses.

BY THE NUMBERS

 Over $18 billion in SBA loans and over $120 billion in federal prime contracts to minorityowned small businesses since 2009.

 More than $10 billion in SBA loans and over $50 billion in federal prime contracts to 

women-owned small businesses since 2009.

 More than $480 million in Patriot Express SBA-guaranteed loans to over 5,000 veterans and 

$30 billion in federal prime contracts to service-disabled veteran-owned small businesses 

since 2009.

 Over $17.6 billion in SBA-supported loans to rural communities.

 SBA and USDA committed to drive $350 million of investment capital through impact funds 

and existing Small Business Investment Companies into rural small businesses over the next 

five years.
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Expanding Access to Federal Contracting. Since January 2009, African American-owned 

small businesses have won over $26 Billion in federal prime contracts.

Hispanic-Owned Small Businesses. There are more than 2.3 million Hispanic-owned businesses in 

the US, employing 1.9 million people. Due to their unique assets and language skills, Hispanic-owned 

businesses are more likely to be exporters compared to non-minority firms. Among firms generating 

20% or more of their sales in exports in 2007, Hispanic firms (2.4%) were twice as likely to export 

compared to non-minority firms (1.1%).15 Supporting these small businesses helps ensure that America’s 

economy remains globally competitive for the 21st Century.

U.S. Hispanic Chamber of Commerce Partnership. SBA has joined forces with the U.S. 

Hispanic Chamber of Commerce (USHCC) to help support thousands of Hispanic small 

businesses and entrepreneurs grow and create more jobs. Through this collaboration, the SBA 

and USHCC are working with national and local Hispanic organizations to increase Hispanicowned small business participation in SBA programs. The goal of the partnership is to increase 

lending to Hispanic small businesses; increase awareness of SBA programs and services among 

Hispanic-owned small businesses; increase participation of small Hispanic-owned businesses in 

SBA’s procurement programs, with a focus on women and veterans; and increase trade 

opportunities for small Hispanic-owned businesses.

Expanding Access to Capital. Since the start of the Administration through March 31, 2012, 

over $3.8 billion through over 10,800 SBA loans went to Hispanic-owned small businesses 

including over $128 million through nearly 300 international trade loans.

Expanding Access to Federal Contracting. For many small businesses, winning a federal

government contract is an opportunity to build capacity and grow their business. SBA works 

with federal agencies to provide increased opportunities for Hispanic-owned small businesses to 

compete for and win federal contracts. Since January 2009, Hispanic-owned small businesses 

have won over $29 billion in federal contracts.

Native American-Owned Small Businesses. Each year, more than 230,000 American Indian and 

Alaska Native and 38,000 Native Hawaiian-owned businesses add billions to the American economy.16 

These small businesses are also vital to Native American communities and the Administration is 

committed to helping them grow and hire.

Increasing Access to Capital. Since the start of the Administration through March 31, 2012, 

nearly $358 million through nearly 1,300 SBA loans went to Native American-owned small 

businesses.

Expanding Access to Federal Contracting. For many small businesses, winning a federal 

government contract is an opportunity to build capacity and grow their business. SBA works 

with federal agencies to provide increased opportunities for Native American-owned small 

businesses to compete for and win federal prime contracts. Since January 2009, Native 

American-owned small businesses have won nearly $35 billion in federal contracts.

MBDA Opened a New Native American Business Center in Alaska. In FY2011, MBDA 

launched a new MBDA Business Center in Anchorage, Alaska, managed in partnership with the 

National Center for American Indian Enterprise Development (NCAIED) and the University of 
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Alaska-Anchorage, to target Alaska Native Corporations, a community of large and mediumsized businesses that generate over $7 billion in annual revenues and represent a substantial 

source of contracting and sub-contracting opportunities for both Native American, and nonNative American owned firms. 

Native American Educational Training. This USPTO program is a collaboration with the 

Native American Intellectual Property Enterprise Council and with the U.S. Indian Arts and Crafts 

Board to provide information to Native American businesses and students about intellectual 

property and opportunities for economic growth.

Asian American and Pacific Islander-Owned Small Businesses. The success of the 1.5 million AAPIowned businesses in the United States, which employ more than 2.8 million workers, is critical to our 

economy. Between 2002 and 2007, AAPI-owned firms outpaced the growth of non-minority firms in 

gross receipts (55% AAPI growth), employment (27%), and number of firms (40%).17 The Administration 

is doing all that it can to ensure that Asian Americans entrepreneurs have the tools they need to 

continue to succeed. 

Expanding Access to Capital. Since the start of the Administration through March 31, 2012, 

over $13 billion went to AAPI small businesses through over 19,000 Small Business 

Administration loans.

Expanding Access to Federal Contracting. Since January 2009, AAPI small businesses have 

won over $34 billion in federal contracts.

Expanding Opportunities for Women-Owned Small Businesses

Women-owned businesses represent one of the fastest-growing segments of the economy. Forty years 

ago, women owned just 5% of all small businesses. Today, women own 30%, a total of 7.8 million small 

businesses generating $1.2 trillion a year in sales. Between 1997 and 2007, women-owned companies in 

the U.S. grew at nearly twice the rate of all US privately held firms, adding roughly 500,000 jobs while 

other companies lost jobs.

Yet, while women-owned small businesses play a critical role in our economy, according to the National 

Women’s Business Council, few take advantage of federal loan programs. More than half (55.5%) of 

women-owned businesses had to use personal or family savings to start or acquire their business. Many 

women entrepreneurs also struggle to advance their businesses beyond the startup phase. The Obama 

Administration has worked to expand opportunities for women-owned businesses through increased 

access to credit and federal contracting opportunities.

Increasing Access to Credit and Counseling Services. SBA loans are 3 to 5 times more likely to be 

made to minority- and women-owned businesses than conventional small business loans made by 

banks. The President has expanded SBA lending, making more than $10 billion available through over 

30,900 SBA loans to women-owned businesses between January 2009 and March 31, 2012. Additionally, 

the SBA has opened 10 new Women’s Business Centers around the country, for a total of 110 centers 

that have trained and/or counseled over 160,000 people, primarily underserved and economically 

disadvantaged women. 
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Expanding Access to Federal Contracting. The Obama Administration implemented the new 

Women-Owned Small Business Federal Contract program, which helps level the playing field for womenowned small businesses in over 300 industries where women are underrepresented by giving them 

greater access to Federal contracting opportunities. To date, over 10,000 firms have taken steps to 

participate in this program. Additionally, since 2009, women-owned small businesses have been 

awarded over $50 billion in federal prime contracts.

Strengthening Programs that Reach Women Business Owners. In October 2010, the SBA, National 

Women’s Business Council, and the White House Council on Women and Girls co-hosted the White

House Forum on Women’s Entrepreneurship. Since then, SBA has held 10 regional events across the 

country as part of the Women’s Entrepreneur Summit series to hear directly from women who are 

building and growing companies in many industry sectors. The final report highlighting the findings from 

this series of Women’s Entrepreneur Summits was published in the Spring of 2011, including the top 

issues women face as they start and grow businesses and what SBA continues to do to help support 

these women.

NY Urban Economic Forum for Women’s Entrepreneurship. Under the auspices of the White 

House Business Council, the White House launched a multi-city series of Urban Economic Forums in 

conjunction with the U.S. Small Business Administration. The first forum was held in February 2011 at 

Barnard College and was hosted in conjunction with the White House Council on Women and Girls 

focusing specifically on women urban entrepreneurs. The intent was to connect the President’s 

economic vision and agenda to the needs of women urban entrepreneurs, demonstrate the 

Administration’s ongoing commitment to supporting the success of women-led businesses and connect 

area women entrepreneurs to resources and networks that can help them grow and hire. 

Supporting Veteran Small Business Ownership 

As small business owners, veterans continue to serve their country and to create jobs. Already, veterans 

own about 2.4 million businesses or 9% of all of America’s businesses. These businesses generate about 

$1.2 trillion in receipts and employ nearly 5.8 million Americans18. The Administration is committed to 

ensuring veteran entrepreneurs and service-disabled veteran-owned businesses have the tools they 

need to continue to grow.
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Patriot Express Loans. Patriot Express loans are offered by SBA’s network of participating community 

banks nationwide and feature one of SBA’s fastest turnaround times for loan approval and an enhanced 

guaranty and interest rate on loans up to $500,000 to small businesses owned by veterans, reservists 

and their spouses. The Patriot Express loan can be used for most business purposes, including startup, 

expansion, equipment purchases, working capital, inventory or business-occupied real-estate purchases.

Since January 2009 through March 31, 2012, Patriot Express loans have provided more than $480 million 

in SBA-guaranteed loans to over 5,000 veterans to start or expand their small businesses.

Service Disabled Veteran-Owned 

Business Contracting. The 

Service-Disabled Veteran-Owned 

Small Business Concern 

Procurement Program allows federal

agencies to set acquisitions aside for 

exclusive competition among 

service-disabled veteran-owned 

small business concerns. SBA works 

with service-disabled veteran-owned 

small businesses to build awareness 

of federal contracting opportunities 

and to ensure they have the 

resources they need to bid for 

federal contracts. Since 2009 $30 

billion in federal prime contracts 

were awarded to service-disabled 

veteran-owned small businesses.

Veterans Business Outreach 

Centers. The Veterans Business 

Outreach Program (VBOP) is designed to provide entrepreneurial development services such as business 

training, counseling and mentoring, and referrals for eligible veterans owning or considering starting a 

small business. The SBA has 16 organizations across the country participating in this cooperative 

agreement and serving as Veterans Business Outreach Centers (VBOC).

Veterans Employment and Training Systems. Through VETS, the Department of Labor provides an 

online, step-by-step toolkit for employers interested in hiring veterans. The toolkit is designed to assist 

and educate employers who have made the proactive decision to include transitioning service members, 

veterans and wounded warriors in their recruitment and hiring initiatives. Recognizing that each 

employer is unique, this guide allows business owners to select from promising practices and other 

resources that employers are using to successfully welcome talented and skilled veterans into their 

small businesses. VETS has partnered with the United States Chamber of Commerce to hold “Hiring our 

Heroes” Veterans Job Fairs across the United States. Since the program’s launch in March 2011, over 

150 hiring fairs in 48 states and the District of Columbia have been held, resulting in almost 10,000 

veterans finding jobs. Hiring fairs in 400 communities are planned for 2012, as well as the creation of a 

standalone program for military spouses. These fairs have been critical resources for small businesses to 

meet qualified veterans, learn about how military credentials can translate to the civilian workforce, and 

network with VETS and non-profit agencies about the continued employment of veterans.

Making It Easier for Veterans to Get a Loan 

Colin Burgos is the owner of Combat Ready USA, a small, veteranowned retailer of tactical gear for the military and law enforcement 

communities based in San Clemente, California. Burgos started the 

business after separating from the Marine Corps as a Sergeant, 

knowing that many Camp Pendleton-based Marines were 

purchasing tactical equipment from online stores in order to make 

their jobs easier, spending hundreds of dollars in the process. 

Burgos heard about the Patriot Express loan program and called the 

Santa Ana District Office to find out more information, eventually 

completing his business plan and submitting it to US Bank for 

consideration. US Bank approved his loan request for $250,000 

which allowed Burgos to make some tenant improvements and 

purchase inventory. The doors to Combat Ready USA opened in late

2007. Four years later, he’s pleased with the overall growth in sales, 

having added three employees including his former drill instructor 

from the Marine Corps. Last year, Combat Ready USA entered the 

8(a) business development program and was recently awarded its 

first contract through the program. 
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National Veterans Entrepreneurship Training Program. SBA is developing a National Veterans 

Entrepreneurship Training program entitled, “Operation Boots to Business: from Service to Startup” that 

is being piloted this year at four Marine Corps bases across the country. The pilot program includes an 

introduction to entrepreneurship video, 90 minutes of introductory classroom instruction, and an 

optional eight-week online intensive skills building class for those interested in learning more about 

entrepreneurship and business ownership. In addition, SBA has partnered with Syracuse University on 

three new training programs for America’s veterans and their families:

The Entrepreneurship Boot Camp for Veterans with Disabilities. The SBA and the 

Institute for Veterans and Military Families at Syracuse University continued to grow their 

partnership in 2011. The Institute’s Entrepreneurship Bootcamp for Veterans with Disabilities 

(EBV) offers cutting edge, experiential training in entrepreneurship and small business 

management to post-9/11 veterans with disabilities resulting from their service to our country. 

The EBV program is designed to open the door to business ownership for our veterans by 

developing skills in the many steps and activities associated with launching and growing a small 

business, and by helping veterans leverage programs and services for veterans and people with 

disabilities in a way that furthers their entrepreneurial dreams. Since its launch, the EBV 

program has grown to eight world-class institutions across the country.

Women Veterans Igniting the Spirit of Entrepreneurship. A program focused on training, 

networking, and mentorship for women veterans, Women Veterans Igniting the Spirit of 

Entrepreneurship (V-WISE) consists of an online training program and in-person three-day 

conference where participants are exposed to accomplished entrepreneurs and 

entrepreneurship educators from across the United States. The program includes two tracks of 

training; a 'growth track' tailored to those participants already in business, and a 'startup' track 

focused on potential future entrepreneurs. Courses include business planning, marketing, 

accounting/finance, operations/production, human resources and work life balance. VWISE is a 

third program offered by the Institute for Veterans and Military Families at Syracuse University 

in partnership with the SBA.

Operation Endure and Grow. Operation Endure and Grow is another program offered by the 

Institute for Veterans and Military Families at Syracuse University in partnership with the SBA. 

This eight-week online course is geared toward members of the National Guard and Reserves, 

their families, and partners. It focuses on the fundamentals of launching and/or growing a small 

business for those who will be maintaining the business when the service member is deployed 

or in the event he or she is killed or injured while serving their country.

Vocational Rehabilitation and Employment. This VA program is a comprehensive vocational 

rehabilitation program for service-disabled veterans that provides up to 48 months of extensive services 

leading to employment. Every VR&E program participant is provided a comprehensive vocational 

evaluation to determine transferable skills, aptitudes, and interests; explore labor market and wage 

information; and to focus on vocational options that will lead to a viable suitable employment or 

independent living goal. Results from the evaluation help determine which of the 5 tracks to success 

(Reemployment with Previous Employers, Rapid Access to Employment, Self-Employment, Employment 

Through Long-term Services, or Independent Living) is most appropriate. Depending on the 

rehabilitation needs of the individual, services may include training such as on-the-job, 

vocational/technical school, college-level (certificate, 2-year degree, 4-year degree or beyond). VR&E 

pays for tuition, fees, books and supplies associated with training as well as a monthly subsistence 
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allowance. Currently, the VR&E program has about 110,000 program participants. Close to 20,000 

Veterans achieved their rehabilitation goals in FY 2010 through FY2011. Thus far in 2012, VR&E has 

assisted over 5,000 Veterans achieve rehabilitation. 

Mentorship Incubators for Veterans. VA, in partnership with SBA and DOL, has established two of 

the first integrated business accelerators focused solely on helping our veterans launch and sustain their 

own businesses. The first accelerator program is a brick-and-mortar facility in Milwaukee, Wisconsin. 

Veteran Entrepreneurial Transfer (VETransfer) is a non-profit business incubator providing physical 

office space and shared services to help veteran-owned businesses get off the ground. The second 

program is a virtual, online business accelerator focused initially on veteran entrepreneurs in Roanoke, 

Virginia and Philadelphia, Pennsylvania. The VetSuccess Employment Accelerator (VetSEA) will provide a 

suite of online tools and resources that assist veterans in all phases of the entrepreneurial process, from 

assessing their skills readiness to developing a business plan to launching and building a new company.

The Innovation Initiative (VAi2). This program provides a structured process for bringing new 

solutions from new sectors into VA from private industry and the 300,000-strong VA workforce. Focus 

areas include improving access to care, increasing quality, driving down cost, and driving up veteran 

satisfaction. Since the program's official launch in 2010, over 600 ideas in eleven topic areas have been 

evaluated. Currently $108 million is funding a portfolio of 128 innovations across multiple challenge 

areas.

Interagency Task Force on Veterans Small Business Development. At the President’s direction, 

SBA led the first-ever Interagency Task Force on Veterans Small Business Development, which included 

representation from seven federal agencies and four veterans service organizations. The Task Force is 

focused on increasing the number of veteran-owned businesses and the number of Americans –

including other veterans – those businesses employ. Through public meetings, the Task Force gathered 

input and ideas which ranged widely in scope, strategy, and feasibility. In November 2011, the Task 

Force delivered its first report to the President, which included 18 recommendations across three 

priority areas: increasing opportunities for growth, improving and expanding counseling and training 

services, and reducing barriers. To read the full report, visit http://www.sba.gov/about-officescontent/1/2985/resources/31141.

Connecting Veterans to Exporting Opportunities. In 2010, Ex-Im created the new position of 

Veterans Outreach Coordinator. The purpose is to reach out to all veterans and veterans groups and to 

connect export finance opportunities with potential opportunities for sales abroad. 
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Supporting Small Businesses in Rural America

Rural America is home to a vibrant economy supported by nearly 50 million Americans and many of the 

nation’s small businesses are located in rural communities. Rural communities provide our country with 

affordable agricultural products, competitive manufacturing capabilities, and an independent, 

renewable energy supply. These enterprises not only create new jobs, but also improve our 

competitiveness globally. 

The White House Rural Council. The White House Rural Council focuses on actions to better 

coordinate, streamline, and leverage federal program efforts in rural America. In particular, the primary 

goals of the Council are to create jobs and economic opportunities through increased access to credit, 

promote innovation through renewable energy and broadband expansion, improve access to quality 

health care and education, and expand opportunity through conservation.

Increasing Access to Capital. SBA supports rural small businesses with approximately $520 million in 

much needed loans through the 7(a) and 504 loan programs annually. In total since the start of the 

Administration through March 31, 2012, SBA supported loans have made over $17.6 billion in capital 

available to rural communities, including $1 billion to rural agricultural small businesses. Additionally, in 

2011 SBA launched Community Advantage, which increases points of access in rural communities by 

opening the SBA 7(a) loan program to community-based, mission-focused lenders. Since 2011, SBA has 

supported $2.6 million in Community Advantage loans to rural small businesses.

Rural Development Capital Market Project. In 2011, USDA Rural Development (RD) established the 

Capital Market project team to identify investment tools that businesses and financial institutions can 

PRESIDENT BARACK OBAMA GREETS MEMBERS OF THE AUDIENCE FOLLOWING HIS REMARKS ON THE VETERANS JOB CORPS AT 

FIRE STATION #5 IN ARLINGTON, VA., FEB. 3, 2012.
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use to create jobs, spur business growth, encourage entrepreneurship, and expand economic prosperity 

in rural communities. Since 2009, USDA Rural Business-Cooperative Programs have provided nearly $7 

billion in guarantees, loans, and grants, creating or saving over 266,000 jobs and assisting 50,000 

businesses.

Agricultural Technology Innovation Partnership. The ATIP network is comprised of nine 

technology-based economic development (TBED) members to further enhance likelihood that 

agriculture research outcomes will be adopted by the private sector for commercialization. ATIP has 

initiated the Rural Agriculture and Business Innovation Forums that provide solutions to identified agsector local and regional problems and create opportunities to improve the economic viability of the 

rural agri-economy. Problems and opportunities are identified via a community listening session 

convened one month ahead of the Forum. In 2012, these Forums will be convened in partnership with 

Rural Business Services, Cooperative Extension Service, and NIST Manufacturing Extension Partnership 

programs. The first of these is scheduled for July in Ohio.

Doubling Investment Funds for Rural Small Businesses. In the White House Rural Council’s August 

2011 announcements, the President announced that SBA will commit to driving $350 million of 

investment capital through the SBIC Impact Investment Program and existing SBICs into rural small 

businesses over 5 years, doubling the rate of historical investment in rural America by SBICs. SBA would 

provide up to a 2:1 match to private capital raised by the fund towards investments in distressed areas 

and emerging sectors, such as clean energy.

Connecting Rural Small Businesses with Private Investment Capital. To further achieve this goal, 

SBA and USDA hosted a series of Rural Private Equity and Venture Capital roundtables nationwide to 

provide a platform for connecting private equity and venture capital investors with rural startups. At the 

time of printing, 5 of the 6 roundtables had been completed. SBA is also encouraging the formation of 

SBIC’s with a specific rural focus. There are currently two potential SBICs in SBA’s pipeline that would 

have a rural focus as part of their investment strategy. 

Rural Jobs Accelerator. DOC’s Economic Development Administration (EDA), USDA, the Appalachian 

Regional Commission (ARC) and the Delta Regional Authority (DRA) have launched the Rural Jobs and 

Innovation Accelerator Challenge (Rural Jobs Accelerator), which is a coordinated inter-agency effort 

designed to spur job creation and economic growth in distressed rural communities. This initiative 

coordinates complimentary Federal funding streams to help rural communities identify and maximize 

local assets, and connect to regional opportunities and self-identified clusters that demonstrate highgrowth potential. EDA and USDA are leveraging approximately $14 million in existing funding, with an 

additional $1 million in funding from the ARC and the DRA. The Rural Jobs Accelerator is expected to 

make awards to approximately 20 regions across the country. 

Small Business Assistance to Farmers. The Recovery Act provided immediate assistance to 2,875 

producers who needed loans but were unable to obtain commercial credit from conventional lenders, 

including more than 600 socially disadvantaged producers and almost 1,200 beginning producers. These 

loans were used to purchase land, livestock, equipment, feed, seed, and supplies, or to construct 

buildings or make farm improvements, all of which spur growth in rural communities. In total, the 

USDA’s Farm Service Agency (FSA) issued nearly 37,000 loans in FY 2010, providing more than $5 billion 

in assistance, including $2.2 billion to 20,000 beginning or socially-disadvantaged producers combined. 

The Recovery Act also provided $800 million to farmers and ranchers whose operations were at risk due 

to lost crops as a result of natural disaster. In addition, the safety net provided by FSA offered farmers a 
75 | P a g e

range of tools to help them weather unforeseen periods of financial difficulty, such as a fixed base of 

minimum financial assistance for income certainty, emergency and disaster payments, stabilization 

assistance during seasonal cash flow slumps, and payments to transition to new types of crops or 

reserve land for conservation purposes. More than $11 billion was invested in FY 2010 to provide a 

safety net for this critical small business sector that serves American households.

Department of Agriculture Rural Business and Cooperative Service

RBS works with private sector and community-based organizations to finance rural businesses, create 

sustainable jobs, promote a clean rural environment, and promote economic development throughout 

rural America. In FY 2011, RBS obligated almost $1.9 billion, provided 4,457 loans and grants, assisted 

over 15,500 businesses, and helped create/save an estimated 67,410 jobs. A Business Programs (BP) 

division and a Cooperative Programs (CP) division make up RBS.

RBS Business Programs Division. This division provides loan guarantees, direct loans, and grants to 

small rural businesses, farmers, and ranchers that help create and save jobs and promote a clean rural 

environment. Recipients include individuals, corporations, public and private companies, cooperatives, 

Indian tribes, and nonprofit organizations. In 2011, the Business Programs Divisions obligated over $1.49 

billion in loans and grants, provided 1,310 loans and grants, assisted 12,875 businesses, and helped 

create or save over 65,000 jobs in communities throughout rural America. BP loan and grant programs

are as follows:

Business and Industry Loan Program. B&I provides loan guarantees to community banks. 

The program also supports community banks by boosting their legal lending limits, expanding 

their lending portfolio, and allowing increased benefits through the sale of the guaranteed and 

non-guaranteed portions of the loan in the secondary market. In 2011, the B&I Guaranteed Loan 

Program obligated over $1.4 billion in loan guarantees, provided 511 loans, assisted 947 

businesses, and helped create or save over 27,806 jobs in communities throughout rural 

America.

Rural Business Enterprise Grant Program. RBEG provides grants to assist small businesses 

with their specific needs. In 2011, the RBEG program obligated over $42 million in grants, 

provided 585 grants, assisted 10,399 businesses, and helped create or save almost 13,300 jobs 

in communities throughout rural America.

Intermediary Relending Program. IRP provides loans to local organizations (intermediaries) 

that they use to establish revolving loan funds. These loan funds will finance business and 

economic development activities that help create and save jobs in disadvantaged and remote 

communities. In 2011, the IRP program obligated over $19 million in loans, provided 57 loans, 

assisted 649 businesses, and helped create or save over 14,600 jobs in communities throughout 

rural America.

Rural Microentrepreneur Assistance Program. RMAP provides direct loans, technical 

assistance grants, and technical assistance only grants to microenterprise development 

organizations (businesses of less than 10 people), to support the development and success of 

rural micro entrepreneurs and microenterprises. In 2011, RMAP obligated over $15 million in 

direct loans, provided 87 loans, grants and technical assistance grants, assisted 492 businesses, 

and helped create/save an estimated 2,304 jobs. 
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Rural Economic Development Loan and Grant Program. REDL provides zero interest 

loans to local utilities, which they, in turn, pass to local businesses (ultimate recipients) for 

projects that will create and retain employment in rural areas. In 2011, RBS obligated almost 

$29.5 million in direct loans, 47 loans, assisted 163 businesses, and helped create/save almost 

4,100 jobs. 

The REDG Program provides grant funds to local utility organizations, which use the funds to 

establish Revolving Loan Funds (RLF). In 2011, RBS obligated over $6.25 million, provided 23 

grants, assisted 231 businesses, and helped create/save 2,974 jobs.

Rural Business Services’ Biorefinery Assistance Program. Administered through USDA 

Rural Development, the Biorefinery Assistance Program (BAP) directly supports the 

commercialization of new technology for the development of advanced biofuels. BAP provides 

loan guarantees of up to $250 million for the development, construction, and retrofitting of 

commercial-scale biorefineries. These projects include technology adopted in a viable, 

commercial-scale operation of an advanced biorefinery. Projects also include technologies that 

have technical and economic potential for commercial application in an advanced Biorefinery. 

BAP has provided $568 million that will create over 300 jobs while assisting seven advanced 

biofuels refineries.

Rural Energy for America Program. REAP provides loan guarantees and grants that assist 

rural small businesses and agricultural producers with the cost of purchasing and installing 

renewable energy systems and energy efficiency improvements. REAP program help businesses 

create and save jobs, additional wealth, and a clean rural environment. In FY 2011, REAP 

provided $62 million in grants, saved or created 1,610 jobs, assisted 2,764 small businesses. 

REAP also provided $34 million in loans, saved or created 263 jobs, and assisted 545 small 

businesses.

RBS Cooperative Programs Division. This division promotes the use of the cooperative form of 

business as a viable option for marketing and distributing agricultural products. CP programs provide 

grants to small rural businesses, farmers, ranchers, cooperative members, Tribal organizations, 

educational institutions, and organizations. In 2011, The Cooperative Programs Division obligated over 

$54.5 million, provided 403 grants, assisted 618 businesses, and helped create or save 586 jobs. CP grant 

programs are as follows: 

Value-Added Producer Grant. (VAPG) provides planning grants used for feasibility studies or 

business plans for value-added agricultural products, and working capital grants for the 

expenses related to processing and/or marketing the value-added agricultural products. In 2011, 

the VAPG program provided over $40 million in grant funding to 299 projects in 44 states and 

Puerto Rico.

Small Socially-Disadvantaged Producer Grant. SSDPG provides technical assistance grant 

to small, socially-disadvantaged agricultural producers through eligible cooperatives and 

associations of cooperatives. In 2011, the SSDPG program provided $2.94 million in grant 

funding to 19 businesses.
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Rural Cooperative Development Grants. RCDG helps establish and operate centers for 

cooperative development as a means of improving the economic condition of rural areas. In 

2011, the RCDG program provided $7.94 million in grant funding to 36 businesses.

Rural Business Opportunity Grants. RBOG promotes sustainable economic development in 

rural communities with exceptional needs through training and technical assistance grants for 

business and economic development planning, entrepreneurs, and economic development 

officials. In 2011, the RBOG program provided $7.9 million in grant funding to 109 businesses, 

which helped create 2,566 jobs throughout rural America.

Support for Small Businesses that Hire Americans with Disabilities 

DOL’s Office of Disability Employment Policy (ODEP) provides national leadership to individuals with 

disabilities seeking employment, and works with businesses of all sizes to educate and encourage them 

to hire individuals with disabilities. Through Business Sense, ODEP’s electronic monthly newsletter, more 

than 55,000 small business subscribers receive tips on practices and resources to help them recruit, hire, 

and retain people with disabilities. http://www.dol.gov/odep/

Disability Employment Initiative. ODEP has partnered with ETA to implement the Disability 

Employment Initiative (DEI) within the public workforce system and its partners. Three-year grants are 

being awarded to states to build their capacity to improve educational, training, and employment 

opportunities and outcomes of youth and adults with disabilities. Self-employment and 

entrepreneurship training was one of several strategies on which grantee states could focus their 

efforts. The Department awarded $21 million to nine states in the first round of DEI grants in September 

2010, and another $21 million in September 2011 in the second round. Competition for approximately 

$20 million in the third round of DEI grants opened on April 16, 2012 and will close on June 1, 2012. 

Grants to six to ten states are expected to be awarded in September 2012.

Employment First. ODEP is also implementing an “Employment First” Initiative to promote integrated, 

competitive employment or self-employment for people with disabilities. Three states have been 

selected to develop model Employment First programs; each state has the option of including selfemployment as an element of their model. 

Customized Employment. ODEP is promoting customized employment as a strategy to provide 

opportunities for individuals with significant disabilities and others with complex barriers to 

employment. Self-employment and entrepreneurship are both successful program models included 

within this employment strategy.

STARTUP USA. ODEP previously funded a successful three-year grant program documenting models 

for delivering self-employment services and supports to people with disabilities. A report about the 

grant’s results is currently being prepared for Congress, and ODEP will continue to provide funding to 

support the STARTUP program website, and to provide technical assistance to individuals with 

disabilities who wish to become self-employed. The STARTUP website contains an online training course 

for vocational rehabilitation counselors and other service providers on how to deliver self-employment 

services and supports to potential entrepreneurs with disabilities. 
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Add Us In. Through the “Add Us In” Initiative, ODEP is seeking to increase the capacity of small 

businesses, including lose located in or serving underrepresented and historically excluded communities, 

to employ adults and youth with disabilities. Eight consortia made up of business associations, local 

workforce investment boards, disability serving organizations, and local government entities have 

received funding.

The Chicago, Illinois Add Us In consortium is working with FEDEJAL, a federation of Mexican small 

business owners and regional clubs, to create a small business incubator program for youth who have 

become disabled as a result of violence. This Add Us In consortium and its partners are creating a microloan program and are actively recruiting volunteer businesses to mentor participating youth in the 

development of a business plan and helping them to start their own small businesses.

Job Accommodation Network. ODEP’s Job Accommodation Network (JAN) provides individualized 

technical assistance, consulting, and mentoring services to individuals with disabilities, businesses, 

family members, and service providers on a number of employment and self-employment topics 

including small business development, business planning, financing strategies, marketing research, 

disability-specific programs, income supports and benefits planning, e-commerce, independent 

contracting, home-based business options, and small business initiatives for disabled veterans.

Employment Assistance Resource Network (EARN). EARN offers employers individualized 

consultation on all issues related to recruiting, hiring, and promoting candidates with disabilities and 

provides customized on-site training on a broad range of topics. 

Other Key Administrative Initiatives

White House Urban Economic Forums. The White House Business Council and SBA are currently 

hosting a multi-city series of Urban Economic Forums designed to connect urban entrepreneurs and 

business owners to the local and national resources and networks they need to grow and hire, and to 

discuss ways to enhance their success. As of printing, forums were held in Birmingham, Detroit, Kansas 

City, Las Vegas, Los Angeles, New York City and Phoenix with two more upcoming forums scheduled for 

Columbus and Chicago in Spring/Summer 2012. To date, nearly 22,000 entrepreneurs have participated 

in person or online and over 700 have been paired with a mentor.

Council on Underserved Communities. SBA’s new Advisory Council on Underserved Communities, 

established in December 2010, consists of 20 members from across the country representing key sectors 

of the economy such as banking and finance, community development, nonprofit and academia, with 

some members being small business owners themselves. The CUC provides advice, recommendations 

and opinions on SBA programs, services and issues of interest to small businesses in underserved 

communities. The CUC meets in person twice a year and convenes via teleconference on a quarterly 

basis. All CUC members hold regional roundtables and town hall meetings at various locations 

throughout the year and the full council issues an annual report at the end of the fiscal year.

National Advisory Council for Minority Business Enterprises. NACMBE was established in April 

2010 to advise the Secretary of Commerce on policy issues affecting minority-owned businesses, and to 

provide recommendations for supporting the growth of these businesses, both domestically and 

internationally. NACMBE members are nationally recognized leaders from both private and non-profit 
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sectors, and represent diverse industries, substantial minority-owned and Fortune 1000 corporations, 

trade associations, and academia.

Minority Business Development Agency. During FY2011, MBDA successfully launched a newly 

designed MBDA Business Center program. The new integrated and nationally focused program 

combined the traditional Minority Business Enterprise Center (MBEC) and Minority Business 

Opportunity Center (MBOC) programs into one program. Significant changes to the program included 

the elimination of geographic borders, allowing business centers to provide services to minority-owned 

businesses anywhere in the country and increased funding. Additional changes included longer funding 

terms, reduced paperwork burdens, the addition of merger, acquisition, and joint venture and strategic 

partnering support, coupled with enhanced export services. In FY2011, MBDA launched new business 

centers in Boston, Cleveland, Denver, Minneapolis, Anchorage, Riverside (California), and a specialty 

center in Washington, DC. Each new center hosted a kick-off event attended by the leadership of MBDA, 

business center leaders, state and local government officials, community stakeholders, and minority 

business owners.
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Appendix: Obama Administration Reports on Small Business and 

Entrepreneurship

A National Strategic Plan for Advanced Manufacturing, February 2012

National Science and Technology Council

Advanced manufacturing is a matter of fundamental importance to the economic strength and national security of 

the United States. It provides high-quality jobs, is an important source of exports, and is a key source of 

technological innovation. This strategic plan lays out a robust innovation policy that would reduce the gap 

between R&D and deployment of advanced manufacturing innovations.

http://www.whitehouse.gov/sites/default/files/microsites/ostp/iam_advancedmanufacturing_strategicplan_2012.

pdf

Intellectual Property & Women Entrepreneurs, February 2012

National Women’s Business Council

This research focuses on the participation of U.S. based women entrepreneurs in Patents and

Trademarks activity. Using data obtained from the United States Patents and Trademarks Office, the study probes, 

in-depth, the number of patents and trademarks obtained by women entrepreneurs as well as the concomitant 

gender gap for the period 1975-2010.

http://nwbc.gov/sites/default/files/IP%20&%20Women%20Entrepreneurs.pdf

Women Entrepreneurs Summit Series Report, 2012

U.S. Small Business Administration

In 2011 SBA hosted 10 regional events across the country as part of the Women’s Entrepreneur Summit series to 

hear directly from women who are building and growing their own companies. This report highlights the findings 

from the Summits and the top issues women face as they start and grow businesses.

http://www.sba.gov/sites/default/files/Womens%20Entrepreneurs%20Summit%20Series%20FINAL.pdf

A Roadmap to Renewal, December 2011

President’s Council on Jobs and Competitiveness

The year-end report of the President’s Council on Jobs and Competitiveness reports progress to date on the 

Council’s recommendations to Invest in Our Future through education and innovation, Build on Our Strengths in 

the critical sectors of energy and manufacturing, and Play to Win by making overdue tax and regulatory reforms to 

stay competitive. 

http://www.whitehouse.gov/sites/default/files/microsites/ostp/iam_advancedmanufacturing_strategicplan_2012.

pdf

Empowering Veterans through Entrepreneurship, November 2011

U.S. Small Business Administration for the Interagency Task Force on Veterans Small Business Development

The first-ever Interagency Task Force on Veterans Small Business Development, was chaired by SBA and included 

representation from seven federal agencies and four veterans service organizations. Through public meetings, the 

Task Force gathered ideas and delivered its first report to the President, which included 18 recommendations 

across three priority areas: increasing opportunities for growth, improving and expanding counseling and training 

services, and reducing barriers. 

http://www.sba.gov/sites/default/files/FY2012-Final%20Veterans%20TF%20Report%20to%20President.pdf

2011 National Export Strategy: Powering the National Export Initiative, June 2011

U.S. Department of Commerce, International Trade Administration

The National Export Strategy is the annual report of the Trade Promotion Coordinating Committee (TPCC), an 

interagency body comprised of 20 federal agencies responsible for implementing the National Export Initiative 

(NEI). The NEI was announced by President Obama in January 2010, and calls for the doubling of U.S. exports by 

the end of 2014.

http://trade.gov/publications/pdfs/nes2011FINAL.pdf
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A Strategy for American Innovation: Security Our Economic Growth and Prosperity, February 2011

The White House

The Strategy for American Innovation seeks to harness the inherent ingenuity of the American people to ensure 

that our economic growth is rapid, broad-based, and sustained. Innovation-based economic growth will bring 

greater income, higher quality jobs, and improved health and quality of life to all U.S. citizens. The Strategy for 

American Innovation provides a multifaceted, commonsense, and sustained approach to ensuring America’s future 

prosperity.

http://www.whitehouse.gov/innovation/strategy

Fact Sheet: White House Launches “Startup America” Initiative, January 2011

The White House

“Startup America” is a White House initiative to celebrate, inspire, and accelerate high-growth entrepreneurship 

throughout the nation. This coordinated public/private effort brings together an alliance of the country’s most 

innovative entrepreneurs, corporations, universities, foundations, and other leaders, working in concert with a 

wide range of federal agencies to dramatically increase the prevalence and success of America’s entrepreneurs.

http://www.whitehouse.gov/economy/business/startup-america

Startup America Reducing Barriers Report to the President, 2011

U.S. Small Business Administration

In 2011 Senior Administration officials visited 8 cities and held roundtable discussions to ask entrepreneurs for 

their ideas on which Federal regulations and processes could be changed to foster greater entrepreneurship, 

innovation, and job creation. At the end of this series of roundtables, this report to the President was drafted on 

how to best reduce barriers and continue to strengthen America’s entrepreneurial spirit. 

http://www.sba.gov/sites/default/files/Startup%20America%20Reducing%20Barriers%20Report.pdf

2011 Entrepreneurial Development Impact Report 

U.S. Small Business Administration

The U.S. Small Business Administration’s (SBA) Office of Entrepreneurial Development (ED) designed a multi-year 

time series study to assess the impact of the face-to-face counseling programs it offers to small businesses. This 

study has examined clients who received face-to-face counseling services, starting in 2003. The SBA initiated this 

study as part of the Office of Management and Budget’s (OMB) Program Assessment Rating Tool (PART). SBA 

contracted with Concentrance Consulting Group to assist in administering the study, to analyze the findings and to 

write this report. This report is the eighth report in the study and presents the findings from three separate study 

groups each year. This year’s study group includes 2010 clients’ initial attitudinal assessment of their counseling 

experience, and a follow-up with 2009 and 2008 clients to assess the financial impact of the received assistance.

http://www.sba.gov/sites/default/files/SBA%20ED%20Resources%20Impact%20Study%20Nov%202011%20Final%

20Report.pdf

Women-Owned Businesses in the 21st Century, October 2010

U.S. Department of Commerce, Economics and Statistics Administration for the White House Council on Women 

and Girls

This report, prepared for the White House Council on Women and Girls, documents the changes in women-owned 

businesses over time, explores disparities in the characteristics of businesses owned by women as compared to 

those owned by men, and discusses potential reasons for these disparities and the different outcomes that are 

associated with them.

http://www.esa.doc.gov/sites/default/files/reports/documents/women-owned-businesses.pdf
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Endnotes

 

1

< 500 = 49.8% in 2009. http://www.ces.census.gov/index.php/bds/bds_database_list. These data include nearly 

all non-farm private establishments with paid employees as well as some public sector activities (Jarmin and 

Miranda, 2002). http://www.ces.census.gov/index.php/bds/bds_overview

2

CPP (629 banks with outstanding investments); CDCI (84 banks and credit unions); SBLF (321 banks and loan 

funds); CDFI (high estimate: additional 75 banks, credit unions and loan funds)

3

Department of the Treasury, July 31, 2011.

4

Source: PriceWaterhouseCoopers and National Venture Capital Association Note: Value is in nominal dollars.

5

House, Christopher and Matthew D. Shapiro, “Temporary Investment Incentives: Theory With Evidence From 

Bonus Depreciation,” American Economic Review, 93(3), pp. 437-768, June 2008. 

6

“Keeping Tax Rates Low,” National Federation of Independent Business, Available at 

http://www.nfib.com/advocacy/item/cmsid/253

7

“Obama to Propose Expanded Tax Relief to Encourage Investment in Equipment,” Lisa Lerer and Julianna 

Goldman, Bloomberg, http://www.bloomberg.com/news/2010-09-07/obama-to-propose-expanded-tax-relief-toencourage-investment-in-equipment.html

8

“Payroll Tax Holiday,” National Federation of Independent Business, Available at 

http://www.nfib.com/advocacy/item/cmsid/49039

10 “Impact Study of Entrepreneurial Development Resources” Prepared for the U.S. Small Business 

Administration by Concentrance Consulting Group, November 2011. Available at 

http://www.sba.gov/sites/default/files/SBA%20ED%20Resources%20Impact%20Study%20Nov%202011%20Fi

nal%20Report.pdf

10 “Giving Small Firms the Business,” Center for an Urban Future, March 2011.

11 “The President’s 2010 Trade Policy Agenda,” Office of the U.S. Trade Representative, Executive Office of the 

President, March 2010. http://www.ustr.gov/webfm_send/1673

12 U.S. Census Bureau News, A Profile of U.S. Importing and Exporting Companies, 2009 – 2010, page 11, Exhibit 1a. 

http://www.census.gov/foreign-trade/Press-Release/edb/2010/exh1a.pdf

13 Kauffman Foundation, Sources of Financing for New Technology Firms: A Comparison by Gender, July 2009, Page 

10, Table 3. 

http://www.kauffman.org/uploadedFiles/ResearchAndPolicy/Sources%20of%20Financing%20for%20New%20Tech

nology%20Firms.pdf

14

 “African American-Owned Business Growth & Global Reach,” Minority Business Development Agency, 

Department of Commerce, available at: 

http://www.mbda.gov/sites/default/files/AfricanAmericanOwnedBusinessGrowthandGlobalReach_Final.pdf

15 “Hispanic-Owned Business Growth & Global Reach,” Minority Business Development Agency, Department of 

Commerce, available at: http://www.mbda.gov/sites/default/files/HispanicOwnedBusinessGrowthandGlobalReach_Final.pdf

16 “American Indian & Alaska Native-Owned Business Growth & Global Reach,” and “Native Hawaiian & Other 

Pacific Islander-Owned Business Growth & Global Reach,” Minority Business Development Agency, Department of 

Commerce, available at: 

http://www.mbda.gov/sites/default/files/AmericanIndianAlaskaNativeOwnedBusinessGrowthandGlobalReach_Fin

al.pdf and http://www.mbda.gov/sites/default/files/NHPIGrowthandGlobalReach_Final.pdf

17 http://www.mbda.gov/sites/default/files/AsianOwnedBusinessGrowthandGlobalReach_Final.pdf

18 “Survey of Business Owners - Veteran-Owned Firms, 2007,” U.S. Census Bureau, Department of Commerce, May 

2011.