Senate Passes Small Business Innovation Bill

/PRNewswire/ -- The United States Senate last night unanimously passed legislation to reauthorize the Small Business Administration's (SBA) Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, set to expire on July 31, 2009, and September 30, 2009, respectively. SBIR and STTR stimulate technological innovation, allow small businesses to meet federal research and development needs and provide seed capital for small businesses to develop ideas until they attract outside investment. The bill, introduced by Senate Committee on Small Business and Entrepreneurship Chair Mary Landrieu, D-La., and Ranking Member Olympia J. Snowe, R-Maine, passed unanimously out of Committee on June 18, 2009.

"SBIR and STTR have been instrumental in fostering breakthrough technological innovation and creating new jobs among America's more than 27 million small businesses," Chair Landrieu said. "Recipients of SBIR and STTR awards have produced more than 85,000 patents and have generated millions of well-paying jobs across all 50 states. Now that the Senate has passed SBIR and STTR reauthorization, we are one step closer to strengthening these essential programs and increasing federal opportunities for small businesses. I look forward to working with the House to get a bill to President Obama's desk before SBIR expires on July 31st."

"Reauthorizing the SBIR and STTR programs will unleash the ground-breaking innovation potential of our nation's small businesses, particularly given that these critical initiatives direct more than $2 billion in Federal research and development funding annually to small-tech firms across the nation," said Ranking Member Snowe. "At a time when the nation is struggling to dig out of the deepest recession since the Great Depression, we must ensure that our country once again brings to bear the kind of ingenuity, creativity, and innovation that made America and our free-market economy the greatest and most powerful on earth. By assisting thousands of pioneering small businesses with the development and promotion of scientific breakthroughs, the SBIR and STTR programs keep America ahead of the curve. I pledge to work expeditiously to ensure that we resolve differences with the House legislation so that President Obama may sign a bill as quickly as possible."

The SBIR program was established by Congress in 1982, and the STTR program in 1992, to, among other things, help meet the government's research and development needs through small businesses. Federal agencies with an annual extramural R&D budget of more than $100 million must currently allocate 2.5 percent of their extramural R&D dollars to the SBIR program. Agencies with an annual extramural R&D budget of more than $1 billion must currently allocate an additional 0.3 percent to the STTR program. The bill provides for an important increase to the SBIR program allocation, raising it to 3.5 percent, spread out over eleven years. The SBIR allocation increase includes all agencies, including the NIH. The bill also increases the STTR program allocation from .3 percent to .6 percent over six years.

The last comprehensive reauthorization of the SBIR program occurred in 2000, when the program was reauthorized for eight years, scheduled to sunset on September 30, 2008. The program has since received two temporary extensions - first to March 20, 2009 and now to July 31, 2009. The STTR was last reauthorized in 2001, also for eight years.

The legislation will reauthorize the programs for eight years, giving small businesses and the government the stability they need to plan for and transition important technologies for our country. It amends the eligibility requirements to allow businesses owned and controlled by multiple venture capital firms to compete for a certain percentage of SBIR projects while making sure that there's a fair playing field for the small businesses that are independently owned and operated. It also adjusts the amount of SBIR and STTR awards to reflect inflation costs while taking a measured approach to increasing the allocation dedicated to these important small business research and development programs. To improve the diversity of the programs, geographically and otherwise, so that more states and individuals can participate in federal research and development for our country, the bill reauthorizes the Federal and State Technology (FAST) program and Rural Outreach Program for five years.

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SBA’s Deadline For Disaster Loans For Private Non-Profit Organizations Is February 23

(BUSINESS WIRE)--The U.S. Small Business Administration reminds certain Private Non-Profit Organizations (PNPs) that do not provide critical services of a governmental nature of the deadline to submit disaster loan applications for economic losses caused by severe storms and flooding on May 11 – 12, 2008. The deadline to file an application for an economic injury disaster loan is February 23, 2009.

PNPs located in Bibb, Carroll, Crawford, Douglas, Emanuel, Glynn, Jefferson, Jenkins, Johnson, Laurens, McIntosh, Treutlen, Twiggs and Wilkinson counties in the State of Georgia are eligible to apply to SBA. Examples of eligible non-critical PNP organizations include, but are not limited to, food kitchens, homeless shelters, museums, libraries, community centers, schools and colleges.

“PNP organizations are urged to contact their county emergency managers to obtain information about local briefings. At the meeting, PNP representatives will provide information about their organization,” said Frank Skaggs, Director of SBA Field Operations Center East.

This information will be used to submit a “Request for Public Assistance” which FEMA uses to determine if the PNP provides an essential governmental service and meets the definition of a “critical facility.” Based upon that conclusion, FEMA will either refer the PNP to SBA for disaster loan assistance or possibly provide a “Public Assistance” reimbursement grant for eligible costs.

Disaster loan information and application forms may be obtained by calling the SBA’s Disaster Assistance Customer Service Center at 1-800-659-2955 (for the hearing-impaired 1-800-877-8339) Monday through Friday from 8 a.m. to 9 p.m. and Saturday 9 a.m. to 9 p.m. EST or by emailing our customer service center at disastercustomerservice@sba.gov. Applications can also be downloaded from www.sba.gov/services/disasterassistance. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

The deadline to apply for these loans is February 23, 2009.

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SBA Announces New Ways to Improve Small Businesses Access to Capital

(BUSINESS WIRE)--In response to the credit crunch, today SBA’s Acting Administrator Sandy K. Baruah announced important loan program changes to help the agency’s lending partners increase access to capital for small businesses.

First, an interim final rule allowing new SBA loans to be made with an alternative base interest rate, the one month LIBOR rate (London Interbank Offered Rate), in addition to the prime rate, which was previously allowed. In the past 60 days, both the prime and LIBOR rates have not yet returned to their historical relationship—of roughly 300 basis points between the two rates. The mismatch between the rates is squeezing SBA lenders out of the lending market, since their costs are based on the LIBOR rate.

“This change will help more small businesses obtain capital to grow their businesses and create new jobs,” Baruah said. “By allowing both rates, SBA is making its programs more flexible, increasing opportunities to access capital and giving both lending partners and small business customers more options to meet their needs.”

The second change allows a new structure for assembling SBA loans into pools for sale in the secondary market. The enhanced flexibility in loan pool structures can help affect profitability and liquidity in the secondary market for SBA guaranteed loans, especially with the current market conditions. Because the average interest rate is used, these pools are easier for pool assemblers to create, thus providing incentives for more investors to bid on these loans.

“The challenge small businesses face today is not the cost of capital, it is access to capital,” said Baruah. “Interest rates are at historically low levels meaning money is inexpensive, yet lenders aren’t lending and borrowers aren’t borrowing. This indicates markets are frozen due to liquidity concerns. This interim final rule is an important step to reenergize the lenders to make SBA-backed loans and will help open the gateway of capital for entrepreneurs.”

“SBA moved quickly on these changes after consulting with small businesses, lending partners and other government agencies,” said Eric R. Zarnikow, SBA’s Associate Administrator for the Office of Capital Access. “We’re confident these solutions will help free up capital so lenders can continue to make SBA-backed loans.”

By addressing market issues that were impeding the funding streams for both lenders and small businesses, SBA is making capital more available to America’s small businesses. The SBA will be issuing additional technical guidance to lenders in the coming weeks relating to the implementation of these important changes.

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Small Business Size: Inflation Adjustment to Size Standards

24-7 — Online Representations and Certifications Application also referred to as (ORCA) has globally updated records to meet inflation. For those that are registered in (ORCA) will see an email from the Administrator "This note is to inform you that (ORCA) was upgraded on August 18, 2008." This requires no additional effort on your part but you should be aware of this change if you are doing business in the Federal Marketplace.

Small Business Administration
The U.S. Small Business Administration has issued a final rule that adjusts monetary-based small business size standards for inflation. The rule finalizes the Agency's December 6, 2005 interim final rule that also amended monetary-based small business size standards for inflation. However, this rule adds an additional 8.7 percent to the inflation-adjusted size standards of the December 2005 interim final rule. This additional 8.7 percent accounts for inflation that has occurred since then. This rule also adopts the interim final rule's two-step process for determining eligibility for SBA's Business Loan and Economic Injury Disaster Loan (EIDL) Programs. Furthermore, the rule adopts the revised date that SBA uses to determine size status for purposes of EIDL applications for businesses located in declared disaster areas as a result of Hurricanes Katrina, Rita, and Wilma. DATES: Effective Date: This rule is effective on August 18, 2008.

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Office of the National Ombudsman Releases Annual Report

The Office of the National Ombudsman at the U.S. Small Business Administration recently released its annual report to the 110th Congress, rating federal agencies’ responsiveness to the regulatory enforcement and compliance issues faced by small businesses during fiscal year 2007.

The National Ombudsman provides a voice for small businesses in the federal regulatory enforcement process. Created by the Small Business Regulatory Enforcement Fairness Act (SBREFA), the Office of the National Ombudsman works with small businesses and federal agencies to ensure that regulatory or compliance issues are handled and enforced fairly.

“It is essential that regulatory enforcement be effective, and not excessive,” said National Ombudsman and Assistant Administrator for Regulatory Enforcement Fairness Nicholas N. Owens. “Our focus will continue to enhance transparency for small businesses served, while strengthening the relationship between the small business community and the government.”

In 2007, the ONO significantly increased its responsiveness to small businesses, handling over 500 cases involving regulatory or compliance issues. Federal agencies decreased its response time to these cases from 52 days in 2006 to 27 days in 2007.

Each agency receives a “grade” from the National Ombudsman, rating its responsiveness to small business regulatory enforcement concerns. The annual report summarizes these ratings (which can be found in table II-1 of the report), based on five categories which include:

The agency’s timeliness and quality of response to small business comments;
Presence of a non-retaliation policy;
The degree of regulatory enforcement compliance assistance to small businesses;
The agency’s participation in Regulatory Fairness hearings; and
How the agency informs small businesses about the SBREFA, as well as their rights to contact the Office of the National Ombudsman to discuss the enforcement and compliance process.

In 2007, federal agencies across the board improved their compliance efforts. This year, the National Ombudsman recognized six federal agencies for their extraordinary efforts in responding to small businesses’ regulatory enforcement cases. “Although agencies are obligated to provide responses under SBREFA, it is my belief that the quality of our work is enhanced when it is met with positive compliance assistance efforts, rather than going straight to a penalty stage,” said Owens. The six agencies acknowledged with the “National Ombudsman’s Special Recognition for Regulatory Enforcement and Compliance Assistance” are listed in the report.

The National Ombudsman’s 2007 report and additional information about the Office of the National Ombudsman is available at www.sba.gov/ombudsman.

Dawn Dallaire, CEO of Clearly Fun Soap Inc. Is Georgia’s 2008 Small Business Person of the Year

Pictured (l-r) are Adrienne Sipe, Chairperson of the Georgia Lenders Quality Circle, Dawn Dallaire, and Terri Denison, SBA Georgia District Director

Dawn Dallaire, CEO of Clearly Fun Soap Inc., has been selected the 2008 Small Business of the Year in Georgia by the U.S. Small Business Administration.

Based in Griffin, Georgia, Dallaire started her company five years ago with $47,000 in annual revenues. After reaching sales of $1.8 million in 2006, she is projecting revenues of nearly $3 million this year with a growing customer list that is nationwide and into eight foreign countries.

Dallaire will receive her statewide award from Terri Denison, SBA Georgia District Director, at an Atlanta luncheon on May 22 that is hosted by the Georgia Lenders Quality Circle. She was nominated for the statewide SBA award by the University of Georgia Small Business Development Center at Clayton State University.

With her two children nearing their teens, Ms. Dallaire started her business, Clearly Fun Soap, on her kitchen table in Fayetteville as a way to earn extra money.

After buying a soap-making kit from a craft store, Dallaire’s first homemade items were small toys encased in crystal-clear soaps. After perfecting her techniques, her “goldfish in a bag” soaps have become her signature product for the U.S. gift market. Her trade secret is properly suspending the goldfish and other toys, without allowing them to sink to the bottom and before the soap solidifies.

At first, her soap items were gifts for friends and her children’s teachers. But after meeting with a major wholesale buyer in Atlanta, she took his advice and added new designs to her soaps and expanded her soap-making into the garage. “I was making soaps all day and bagging them in bed at night,” Dallaire recalled.

A major break through came for Dallaire when she drove to Florida with her parents to show her soap products at the Orlando Gift Show. While there, she got orders for $5,000 worth of products and soon repeat orders were coming in. As she continued to self-market and refine her soap products, more sales continued to develop.

Her business quickly outgrew the garage and in 2005 she moved her company to nearby Griffin and a 5,000 square-foot facility that was partially financed with an SBA Community Express Loan.

Late in 2007, her business moved again, this time into its new 10,000 square-foot facility. There, her 15 full time employees and other part time employees, numbering up to 50 workers, produce her line of soaps and other bath products.

Today, her products are in over 3,000 shops and other outlets including Bath & Body Works, Linens ‘N Things, Marshall’s, and TJMaxx. Other accounts are pending at Wal-Mart Mexico, Rite-Aid, and Walgreen’s.

Dallaire has made several TV appearances on the QVC network and was a guest on Donny Deutsch’s “Big Idea” CNBC program on Nov. 5, 2007. She has a book scheduled for publication in May about her success in “Being a Woman in Business in a Man’s World.” The book also covers her personal achievement in losing 120 pounds along the way to her business success.

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National Ombudsman Issues Small Business Ombudsman Model for State and Local Governments

The U.S. Small Business Administration is offering to state and local governments a template for resolving regulatory enforcement issues involving small businesses by establishing their own versions of SBA’s Office of the National Ombudsman.

The availability of the Small Business Ombudsman Model for State and Local Governments was announced today by SBA’s National Ombudsman and Assistant Administrator for Regulatory Enforcement Fairness Nicholas N. Owens.

The National Ombudsman’s primary mission is to help small businesses when they experience excessive or unfair federal regulatory enforcement actions, such as repetitive audits or investigations, excessive fines, penalties, threats, retaliation or other unfair enforcement action by a federal agency.

The model will help state and local governments and other entities create their own ombudsman process to serve the interests of small businesses, small government entities, and non-profit organizations in their communities.

The National Ombudsman has the authority to address concerns of small businesses with federal regulatory enforcement or compliance actions. The model offers a template for establishing a similar process where state and local regulatory enforcement actions are a concern for small businesses.

“This model can improve transparency in state and local governments for small businesses and the entities that regulate them,” Owens said. “Fostering a small business-friendly regulatory environment across all levels of government will make it easier for small businesses to grow and succeed.”

The model also will provide an overview on how the SBA’s Office of the National Ombudsman serves as troubleshooter for the nation’s small businesses. “We are sharing the successful tools of the National Ombudsman’s office, so other governing entities can come away with a better understanding of how the office is a vital small business resource,” Owens said. “This product walks the reader through the organization and processes of the Office of the National Ombudsman, and provides legislative models state and local governments can use to create their own small business ombudsman service.”

The Small Business Regulatory Enforcement Fairness Act of 1996 created the Office of the National Ombudsman within the SBA and established 10 regional regulatory fairness boards nationwide.

The Small Business Ombudsman Model for state and local governments may be accessed at www.sba.gov/ombudsman. For additional information contact Christina Marinos at christina.marinos@sba.gov, or at (202) 401-8254.

Small Businesses Lead U.S. Growth

12/20/07 Small businesses continued to lead growth in the U.S. economy in 2006, according to a report issued today by the Office of Advocacy of the U.S. Small Business Administration.

“Today’s report shows that overall, small firms continue to drive a resilient U.S. economy,” said Advocacy Chief Economist Chad Moutray. “In releasing this annual small business research report, we are pleased also to showcase new research by economists in the field of small business and entrepreneurship.”

Moutray released the report at a December 19 meeting of the Rotary Club of Washington, DC. The study, The Small Business Economy: A Report to the President for 2007, is Office of Advocacy’s annual report on the state of small business in America.

The report reviews the economic environment for small businesses in the year 2006, including the financial and federal procurement marketplaces. New research focuses on minority- and veteran-owned businesses, social entrepreneurship, and pre-venture planning. Other chapters and appendices provide data on small business and an update on Office of Advocacy initiatives.
The Office of Advocacy, the “small business watchdog” of the federal government, examines the role and status of small business in the economy and independently represents the views of small business to federal agencies, Congress, and the President. It is the source for small business statistics presented in user-friendly formats, and it funds research into small business issues.

For more information and a complete copy of the report, visit the Office of Advocacy website at www.sba.gov/advo. Print copies are also available upon request to the Office of Advocacy (202) 205-6933.