Small Business
Small Business issues are important to my work in Congress.
As a small business owner for over 20 years, I understand the importance of supporting our nation’s small businesses and reducing the federal burdens placed on them. Small business accounts for around 70 percent of our nation’s jobs and provides an invaluable source of innovation to our economy. To encourage this critical sector, we need to create a vibrant entrepreneurial environment that rewards investment and expansion.
All too often, I hear from small business owners who are laden by over-burdensome taxes, since most small businesses pay taxes at the individual rate. We must reduce the income tax rates for all Americans, which will, in turn, provide relief to small business owners. I also strongly support permanently extending the higher small business expensing limit. Increasing the expensing limit for small businesses reduces their costs of doing business, allowing them to grow and create new jobs.
Because of the financial crisis, many small businesses have reported that they are having trouble accessing line of credit or obtaining normal business loans.
In March 2009, the Administration announced an initiative to unlock credit for small businesses. This initiative included having the government purchase up to $15 billion in securities consisting of Small Business Administration (SBA) backed loans, increasing the guarantee for SBA backed loans, and reducing fees for SBA loans.
While these initiatives may provide some measure of relief to a few small business owners, in reality most small business owners do not access credit through the Small Business Administration. In fact, the Discovery Financial Services small business survey for February found that 90 percent of small businesses reported that they have never even applied for an SBA loan. Reports from banks confirm that most small business credit is supplied outside of SBA. In 2007 (most recent data), banks reported through the CRA that they originated or purchased $329 billion in loans for small businesses. By comparison, the SBA averages about $20 billion in lending a year.
I am committed to supporting pro-growth economic policies that encourage enterprise and make America the best place in the world to do business. Small businesses are the lifeblood of cities and towns across the country. By supporting small businesses, we open new markets for American products, lower prices for consumers, and create better American jobs.
Small Business Forum
On March 19, 2009 the House Republican Economic Recovery Solutions Group and the House Republican Whip Team hosted a forum to hear from small business owners around the country about the current economic situation and some of the policies under consideration in Washington. At my invitation, a local business owner from Fort Worth, Teresa Nelson of Teresa’s Treasures, participated in the forum and spoke about the difficulties that she and other local business owners are facing in the current economy.