77 research outputs found
Recommended from our members
Small Business Size Standards: A Historical Analysis of Contemporary Issues
[Excerpt] Small business size standards are of congressional interest because the standards determine eligibility for receiving Small Business Administration (SBA) assistance as well as federal contracting and tax preferences. Although there is bipartisan agreement that the nation’s small businesses play an important role in the American economy, there are differences of opinion concerning how to define them. The Small Business Act of 1953 (P.L. 83-163, as amended) authorized the SBA to establish size standards for determining eligibility for federal small business assistance. The SBA currently uses two size standards to determine program eligibility: industry-specific size standards and an alternative size standard based on the applicant’s maximum tangible net worth and average net income after federal taxes.
This report provides a historical examination of the SBA’s size standards, assesses competing views concerning how to define a small business, and discusses how the Small Business Jobs Act of 2010 might affect program eligibility. It also discusses H.R. 585, the Small Business Size Standard Flexibility Act of 2011, which would authorize the SBA’s Office of Chief Counsel for Advocacy to approve or disapprove a size standard proposed by a federal agency if it deviates from the SBA’s size standards. The SBA’s Administrator currently has that authority. It also discusses H.R. 3987, the Small Business Protection Act of 2012, which would require the SBA to make available a justification when establishing or approving a size standard that the size standard is appropriate for each individual industry classification within a grouping of four-digit NAICS codes. The bill would address the SBA’s announced intention to combine size standards within industrial groups as a means to reduce the complexity of its size standards and to provide greater consistency for industries that have similar economic characteristics
Recommended from our members
Small Business: Access to Capital and Job Creation
[Excerpt] This report addresses a core issue facing the 113th Congress: What, if any, additional action should the federal government take to enhance small business access to capital? After discussing the role of small business in job creation and retention, this report provides an assessment of the supply and demand for small business loans, including the number and amount of small business loans guaranteed by the SBA. It also discusses selected laws enacted during the previous three Congresses that were designed to enhance small business access to capital by increasing the supply of small business loans or the demand for small business loans, or both. It also examines recent actions concerning the SBA’s budget and concludes with a brief overview of three legislative options available to address small business access to capital issues during the 113th Congress: wait-and-see, enact additional programs, or reduce and consolidate existing programs
Recommended from our members
Small Business: Access to Capital and Job Creation
[Excerpt] This report addresses a core issue facing the 113th Congress: What, if any, additional action should the federal government take to enhance small business access to capital? After discussing the role of small business in job creation and retention, this report provides an assessment of the supply and demand for small business loans and recently enacted laws designed to enhance small business access to capital by either increasing the supply of small business loans or the deman
Recommended from our members
Small Business Administration and Job Creation
[Excerpt] The Small Business Administration (SBA) administers several programs to support small businesses, including loan guaranty programs, disaster loan programs, management and technical assistance training programs, and federal contracting programs. Congressional interest in these programs has increased in recent years, primarily because they are viewed as a means to stimulate economic activity and create jobs.
This report examines the economic research on net job creation to identify the types of businesses that appear to create the most jobs. That research suggests that business startups play an important role in job creation, but have a more limited effect on net job creation over time because fewer than half of all startups are still in business after five years. However, the influence of small business startups on net job creation varies by firm size. Startups with fewer than 20 employees tend to have a negligible effect on net job creation over time whereas startups with 20-499 employees tend to have a positive employment effect, as do surviving younger businesses of all sizes (in operation for one year to five years).
This report then examines the possible implications this research might have for Congress and the SBA. For example, the SBA provides assistance to all qualifying businesses that meet its size standards. About 97% of all businesses currently meet the SBA’s eligibility criteria. Given congressional interest in job creation, this report examines the potential consequences of targeting small business assistance to a narrower group, small businesses that are the most likely to create and retain the most jobs.
In addition, the Government Accountability Office (GAO) has recommended that the SBA use outcome-based program performance measures, such as how well the small businesses do after receiving SBA assistance, rather than focusing on output-based program performance measures, such as the number of loans approved and funded. GAO has argued that using outcome-based program performance measures would better enable the SBA to determine the impact of its programs on participating small businesses. Given congressional interest in job creation, this report examines the potential consequences of adding net job creation as an outcome-based SBA program performance measure.
This report also examines the arguments for providing federal assistance to small businesses, noting that policymakers often view job creation as a justification for such assistance whereas economists argue that over the long term federal assistance to small businesses is likely to reallocate jobs within the economy, not increase them. Nonetheless, most economists support federal assistance to small businesses for other purposes, such as a means to correct a perceived market failure related to the disadvantages small businesses experience when attempting to access capital and credit
Recommended from our members
Small Business Administration and Job Creation
The Small Business Administration (SBA) administers several programs to support small businesses, including loan guaranty programs; disaster loan programs; management and technical assistance training programs; and federal contracting programs. Congressional interest in these programs has increased in recent years, primarily because they are viewed as a means to stimulate economic activity, create jobs, and assist in the national economic recovery.
This report examines the economic research on net job creation to identify the types of businesses that appear to create the most jobs. That research suggests that business startups play a very important role in job creation, but have a more limited effect on net job creation over time because fewer than half of all startups are still in business after five years. However, the influence of small business startups on net job creation varies by firm size. Startups with fewer than 20 employees tend to have a negligible effect on net job creation over time whereas startups with 20- 499 employees tend to have a positive employment effect, as do surviving younger businesses of all sizes (in operation for one year to five years).
This report then examines the possible implications this research might have for Congress and the SBA. For example, the SBA provides assistance to all qualifying businesses that meet its size standards. About 97% of all businesses currently meet the SBA’s eligibility criteria. Given congressional interest in job creation, this report examines the potential consequences of targeting small business assistance to a narrower group, small businesses that are the most likely to create and retain the most jobs.
Also, the Government Accountability Office (GAO) has recommended that the SBA use outcome-based program performance measures, such as how well the small businesses do after receiving SBA assistance, rather than focusing on output-based program performance measures, such as the number of loans approved and funded. GAO has argued that using outcome-based program performance measures would better enable the SBA to determine the impact of its programs on participating small businesses. Given congressional interest in job creation, this report examines the potential consequences of adding net job creation as an outcome-based SBA program performance measure.
This report also examines the arguments for providing federal assistance to small businesses, noting that policymakers often view job creation as a justification for such assistance whereas economists argue that over the long term federal assistance to small businesses is likely to reallocate jobs within the economy, not increase them. Nonetheless, most economists support federal assistance to small businesses for other purposes, such as a means to correct a perceived market failure related to the disadvantages small businesses experience when attempting to access capital and credit
SBA Veterans Assistance Programs: An Analysis of Contemporary Issues
[Excerpt] This report opens with an examination of the economic circumstances of veteran-owned businesses drawn from the Bureau of the Census’s 2012 Survey of Business Owners (SBO). It then provides a brief overview of veterans’ employment experiences, comparing unemployment and labor force participation rates for veterans, veterans who have left the military since September 2001, and nonveterans. The report also describes employment assistance programs offered by several federal agencies to assist veterans in their transition from the military to the civilian labor force and examines, in greater detail, the SBA’s veteran business development programs, the SBA’s efforts to assist veterans’ access to capital, and the SBA’s veteran contracting programs. It also discusses the SBA’s Military Reservist Economic Injury Disaster Loan program and P.L. 114-38, the Veterans Entrepreneurship Act of 2015, which authorized and made permanent the SBA’s recent practice of waiving the SBAExpress loan program’s one time, up-front loan guarantee fee for veterans (and their spouse)
Recommended from our members
Unfunded Mandates Reform Act: History, Impact, and Issues
[Excerpt] The Unfunded Mandates Reform Act of 1995 (UMRA) established requirements for enacting certain legislation and issuing certain regulations that would impose enforceable duties on state, local, or tribal governments or on the private sector. UMRA refers to obligations imposed by such legislation and regulations as “mandates” (either “intergovernmental” or “private sector,” depending on the entities affected). The direct cost to affected entities of meeting these obligations are referred to as “mandate costs,” and when the federal government does not provide funding to cover these costs, the mandate is termed “unfunded.”
UMRA incorporates numerous definitions, exclusions, and exceptions that specify what forms and types of mandates are subject to its requirements, termed “covered mandates.” Covered mandates do not include many federal actions with potentially significant financial impacts on nonfederal entities. This report’s primary purpose is to describe the kinds of legislative and regulatory provisions that are subject to UMRA’s requirements, and, on this basis, to assess UMRA’s impact on federal mandates. The report also examines debates that occurred, both before and since UMRA’s enactment, concerning what kinds of provisions UMRA ought to cover, and considers the implications of experience under UMRA for possible future revisions of its scope of coverage.
This report also describes the requirements UMRA imposes on congressional and agency actions to establish covered mandates. For most legislation and regulations covered by UMRA, these requirements are only informational. For reported legislation that would impose covered mandates on the intergovernmental or private sectors, UMRA requires the Congressional Budget Office (CBO) to provide an estimate of mandate costs. Similarly, for regulations that would impose covered mandates on the intergovernmental or private sectors, UMRA requires that the issuing agency provide an estimate of mandate costs (although the specifics of the estimates required for legislation and for regulations differ somewhat). Also, solely for legislation that would impose covered intergovernmental mandates, UMRA establishes a point of order in each house of Congress through which the chamber can decline to consider the legislation. This report examines UMRA’s implementation, focusing on the respective requirements for mandate cost estimates on legislation and regulations, and on the point of order procedure for legislation proposing unfunded intergovernmental mandates
Recommended from our members
State Government Fiscal Stress and Federal Assistance
This report examines the current status of state fiscal conditions and the role of federal assistance in state budgets. It begins with a brief overview of state budgeting procedures and then provides budgetary data comparing state fiscal conditions in FY2008 to FY2010. This report concludes with an assessment of the consequences current levels of state fiscal stress may have for the 112th Congress
Recommended from our members
SBA Surety Bond Guarantee Program
This report examines the program's origin and development, including the decision to (1) supplement the original Prior Approval Program with the Preferred Surety Bond Guarantee Program that provides a lower guarantee rate (70%) than the Prior Approval Program (80% or 90%) in exchange for allowing preferred sureties to issue SBA-guaranteed surety bonds without the SBA's prior approval; and (2) increase the program's bond limit
Recommended from our members
Small Business Administration HUBZone Program
The Small Business Administration (SBA) administers several programs to support small businesses, including the Historically Underutilized Business Zone Empowerment Contracting (HUBZone) program. The HUBZone program is a small business federal contracting assistance program "whose primary objective is job creation and increasing capital investment in distressed communities." This report examines the arguments presented both for and against targeting assistance to geographic areas with specified characteristics, such as low income, high poverty, or high
unemployment, as opposed to providing assistance to people or businesses with specified characteristics. It then assesses the arguments presented both for and against the creation and
continuation of the HUBZone program
- …