NSBA ADVOCATE

Published by the National Small Business Association

January/February 2009

WHERE SMALL BUSINESS STANDS WITH SO MANY CHANGES IN WASHINGTON AND AROUND THE NATION HOW DOES SMALL BUSINESS STAND TO FARE IN THE CURRENT POLITICAL AND ECONOMIC ENVIRONMENT?

Volume 23, Issue 1

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CONTENTS 05 Chair Keith Ashmus

U.S. Senator Olympia Snowe (R-Maine) talks to NSBA about why small business deserves a seat at the table in an Obama Administration.

First Vice Chair Scott Hauge Secretary Pedro Alfonso

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Vice Chair, Advocacy Chris Holman

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Layout & Design Greg Smith Staff Writers Molly Brogan Jere Glover Daniel R. Jones Kyle W. Kempf Jody Milanese Jim Morrison Greg Smith

COUNCIL UPDATES Not sure where your small technology firm or exporting business stands with all of the political and economic changes afoot? Find out from the experts exactly what you can expect.

President Todd McCracken Editor Molly Brogan

RESOURCES Feeling like small business has been left out in the cold during these uncertain economic times? Don’t get mad, get active and become a media advocate. One small-business owner shares her story and experience as a NSBA Media Advocate

Vice Chair, Communications Jeffrey VanWinkle

Vice Chair, Membership David Ickert

INSIDE THE BELTWAY In this issue we take a look at smallbusiness legislation that died in the 110th Congress, but will likely see life in the 111th Congress.

Treasurer Larry Nannis Immediate Past Chair Marilyn Landis

FROM THE HILL

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ADVOCACY & EVENTS

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FEATURE ARTICLE The National Small Business Association asked small-business owners how they are faring in this recession, and things aren’t going well.

Find out exactly how small business is dealing with the current recession and what outlooks small-business owners have for the near future.

As the nation’s oldest advocate for small business, we’re always working on behalf of you, the small-business owner. Take a moment to see some of our recent activity as well as ways you can get involved.

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HOW TO REACH US National Small Business Association 1156 15th Street NW Suite 1100 Washington, DC 20005 Phone: (202) 293-8830 Fax: (202) 872-8543 Web: www. nsba.biz Notification of address changes should be sent to the address listed above.

MISSION STATEMENT

NSBA is a volunteer-led association.

Our primary mission is to advocate federal policies that are beneficial to small business and promote the growth of free enterprise JANUARY/FEBRUARY 2009

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NSBA LEADERSHIP CORNER

Where We Stand: Today’s Challenges and Tomorrow’s Opportunities

By Keith Ashmus

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ow that the holidays are over and the Inauguration went off without a hitch, it is time to think beyond just the days and weeks ahead of us to the upcoming year—one with a long list of challenges—and consider where business stands. It is easy to look at the long list of issues the new Congress and administration will have to deal with and wonder where, if at all, small business fits.

Yet, considering that the economy and health care reform are atop that list, surely small business should have a prominent role after all.

Having been an active member of NSBA for many years, and on the Board of Trustees since 2001, I know one thing for sure – 2009 will be a year of change. As I step into the role of chair, NSBA faces many challenges in the coming year, not the least of which are a recessionary economy and constraints on our ability to create jobs. NSBA has always been an independent voice, at times making us less-than-popular among our cohorts in Washington, DC. But if there’s one thing I’ve learned from my years as an attorney—it’s better to stick to principles than to be popular.

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Working under the strict constraints of “nonpartisanship” has led NSBA to take some stances unpopular at times with both Republicans and Democrats on Capitol Hill, yet those constraints have enabled us to serve our members with an unwavering focus. As an organization, NSBA has truly embraced the entrepreneurial spirit, pairing real-world experience and creativity with the optimism that we can create positive change. We have unprecedented opportunities before us—as individual businesses and as a united organization—to work with lawmakers who made small business the centerpiece of their campaigns. Some of them are starting to “get it”, and we can work with the rest with certain knowledge that small business is the key to the coming recovery. We must remain vigilant in ensuring that our needs remain a centerpiece of the 111th Congress.

The chief concern for small businesses today, according to NSBA’s Year-End Economic Report is economic uncertainty—91 percent of small businesses said that the national economy today is worse off than five years ago. Furthermore, more than one-third of those surveyed are not confident about the future of their own business. Coming from traditionally up-beat entrepreneurs, this number ought to send a strong message to Congress that small business is struggling. To address this, NSBA has reached-out to each member of Congress urging them to include key small-business provisions in the economic stimulus bill which stand to significantly ease the credit crunch many of us are facing.

During prosperous economic times, the ability of small-business owners to find quality, affordable health insurance is extremely limited—but during a recession it is practically nonexistent. Since 2004, NSBA has been urging broad reform of the U.S. health care system. When we got tired of waiting for others to come up with a plan we developed our own, which we have been presenting and improving for four ADVOCATE

years now. We were the first small business organization to develop such a reform proposal, and it has recently gained not only support, but momentum. President Obama has repeatedly stated his desire to address the failing U.S. health care system early-on in his administration. With the vested interest small business has in a healthy workforce, as well as what has been seen as a traditional role of employers in facilitating group coverage, small business must be at the table. NSBA is ready.

There are a host of other issues that are likely to be raised, and that are of significant importance to small business this year, including small-business innovation, green-jobs initiatives, and ensuring fair tax treatment of small businesses, immigration reform and pressure from organized labor unions to eliminate the secret-ballot voting process in workplaces. NSBA members will have the opportunity on Feb. 12 through 14 at the Small Business Congress to learn about key issues and ultimately vote on what will be the top ten priority issues for NSBA during 2009.

One of the things I’ve always liked most about my involvement with NSBA is that this is truly a member-driven organization.

While we have a great staff, with broad and deep knowledge of the issues, they take their guidance from us business owners—and not just insiders, but all NSBA members. For example, any NSBA member can participate in monthly issue-related committee conference calls where policy platforms originate, and any NSBA member has the opportunity to attend the Small Business Congress. I urge you to get more involved with NSBA this year—a year that finds us in a uniquely important position to impact policy and work with lawmakers on key small-business priorities. The strength we can cultivate together as a collective voice for all of America’s small businesses is critical right now as we face so many challenges in the coming year.

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FROM THE HILL

Pull Up a Chair : Small Businesses Should Have a Seat At The Table in the Obama Cabinet

By U.S. Senator Olympia J. Snowe

to their employees; and complying with complex tax laws and regulations.

As the primary agency within the federal government tasked with the responsibility of assisting small businesses, the SBA must fully equip our small firms with the tools not just to mitigate and stem this economic crisis, but to be a catalyst for helping to address and ultimately solve it. The incoming SBA Administrator will face an enormous agenda to ensure that small businesses are able to weather these challenging times, and must have access to secure swift approval of critical initiatives.

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ith the advent of a new Administration and Congress, we must seize the opportunity at both ends of Pennsylvania Avenue to refocus our attention on the crucial role that small businesses will play in spurring our economic recovery. President Obama can convey that message loudly and clearly by elevating the Administrator of the Small Business Administration (SBA) to Cabinet-level status, as was done during the Clinton administration.

As former Chair and now Ranking Member of the Senate Committee on Small Business and Entrepreneurship, I am keenly aware that small businesses are the economic engine of our nation’s economy, representing 99.7 percent of all employer firms. And yet, during what is likely to be the deepest and longest recession since World War II, with unemployment reaching 7.2 percent – the highest level in 16 years, small business owners must navigate an increasingly daunting landscape when it comes to accessing capital to purchase equipment and expand their operations; providing affordable and quality health insurance

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First and foremost, the SBA must address the small business credit crunch. Banks are tightening their lending standards without a similar increase in the volume of SBA-guaranteed loans to small businesses, creating a domino effect on the job-creation ability of small businesses.

According to the Federal Reserve, in the last quarter, 75 percent of banks reported that they have constricted their lending standards for small firms, and over the past year, lending in the SBA’s flagship 7(a) program has decreased by 55 percent. I am working to get provisions of my 10 Steps for a Main Street Economic Recovery Act, which would help small firms get the necessary capital to finance business growth by reducing lending fees by over $500 million, into stimulus legislation.

In addition, the Obama Administration must reverse an alarming trend, over the past eight years, of shortchanging the SBA’s budget. In fact, since Fiscal Year 2001, the SBA’s budget has been drastically reduced by 27 percent, the largest decrease of any federal agency during that timeframe. When you consider that the SBA budget represents only about 2/100ths of a percent of the total ADVOCATE

federal budget – yet at the same time small businesses are creating about threefourths of all new jobs – there is no question that adequately funding the agency’s small business programs is a strong investment in America’s economic future.

In the 111th Congress, the SBA must assist the Congress in reauthorizing the SBA programs set to expire on March 9, 2009.

I will work in a bipartisan and bicameral fashion to build on the SBA Reauthorization and Improvement Act (S. 2920) from the last Congress. This bipartisan measure, which has 31 cosponsors and widespread stakeholder support, would reauthorize the SBA’s critical small business financing, entrepreneurial development, and business counseling programs, while strengthening the agency’s lender oversight authority.

Additionally, as the federal government consistently fails to satisfy its statutory government-wide “goals” for small business contracting, it is vital that the Obama Administration satisfy – and exceed – these goals. The SBA must implement a meaningful women’s procurement program that will help women-owned small businesses receive contracting opportunities that are necessary to stimulate the economy.

Finally, I would be remiss not to recognize the history our own Senate Committee on Small Business and Entrepreneurship will be making this year. With Senator Mary Landrieu as Chair, we will become the first two female lawmakers to lead a standing committee in the U.S. Senate or the U.S House of Representatives. The Committee has a strong track record of bipartisanship, and our partnership will only reinforce that.

And with Karen Mills nominated and poised to take the helm at the SBA, women will be in a key position to shape the future of federal policy regarding small business for years to come. I am excited about the notion that our work will further empower women to pursue leadership roles within our country.

We face grave and troubling challenges as we strive to reinvigorate our nation’s economy. Despite these dire conditions, I look forward to working with the Obama Administration, the SBA, and organizations such as the National Small Business Association because small businesses will be invaluable in reviving our economy.

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INSIDE THE BELTWAY

Out with the Old, The 110th Congress has finally completed its business, depdnding on who you ask, and the new 111th Congress is underway with outlining their agenda for the first 100 days and beyond.

While several pieces of legislation from the 110th Congress never made it to the president’s desk, the swearing in of a new president, administration and Congress, will make way for a revisiting of many familiar legislative proposals that stand to impact small business.

The following legislative items are the proposals that died with the 110th Congress, but can be expected to rise again during the 111th Congress.

ECONOMIC STIMULUS The No. 1 concern facing small-business owners today is economic uncertainty. According to NSBA’s Year-End Economic Report, 75 percent cited economic uncertainty as the most significant challenge to the future growth and survival of their business, up from 53 percent in August. Adding fuel to the fire, recent unemployment numbers point to significant job losses from the small-business sector, a significant turnaround from September 2008 when the very smallest businesses added 28,000 net new jobs to the economy.

Given the historic role small business has played in job creation—responsible for 93.5 percent of all net new jobs in the last 20 years--the alarming switch in job losses is extremely troubling.

The 111th Congress will closely focus its attention on crafting an economic stimulus—an issue they paid significant attention to during the 110th, and likely to be a top priority for early passage. NSBA continues to urge inclusion of small business in the stimulus package, which as of press time included several useful tax provisions to help small businesses.

CREDIT CARD REFORM Although federal regulators recently adopted a rule addressing some of the most egregious practices of the credit-card industry, these rules will not take effect until 2010 and are not all-encompassing. As a result, Congressional lawmakers once again will be turning their attention to reforming the industry’s practices. On Jan. 15, Rep. Carolyn Maloney (D-N.Y.) and Sen. Charles Schumer (D-N.Y.) announced introduction in the House and Senate of the Credit Cardholders’ Bill of Rights Act—which passed 3126

112 in the 110th Congress. Sen. Christopher Dodd (D-Conn.), chair of the Senate Committee on Banking and Urban Affairs, also is expected to introduce a credit-card reform bill similar to the one he championed last year.

HEALTH CARE Beside the economy, the most publicized domestic issue on Americans’ minds is the need to reform the nation’s broken health care system.

Several members of the House and Senate introduced legislation in the 110th Congress aimed at addressing the most problematic failings of the current system. Some proposals, including the Small Business Health Options Program (SHOP) Act and the Small Business ‘Cooperative for Healthcare Options to Improve Coverage for Employees’ (Small Business CHOICE) Act of 2008, were aimed at addressing the specific challenges facing small businesses.

Other proposals took a more comprehensive a p p r o a c h to health c a r e reform, including the Healthy Americans Act. Other bills addressed specific needs within the health care system, such as the funding and adoption of health information technology or the establishment of a comparative effectiveness institute to support the use of ‘best practices’ by health care providers and facilities. However, none of the bills passed.

President Barack Obama and the new Congress have indicated ADVOCATE

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In with the New – Sort of zero in 2010 to a top rate of 55 percent and a meager exemption level of $1 million. This repeal and restoration routine gives both sides a strong incentive to come to a compromise.

Some Democrats appear to be moving toward reforming the system to a 35 percent rate and $5 million exemption indexed to inflation. The Senate Finance Committee is eager to move legislation to reverse the current law’s phase-out in 2010.

During the campaign, Obama outlined his plan to freeze the estate tax at its 2009 levels and index the exemption amount to inflation for future years. At the level proposed in the Obama plan, all but the largest estates would escape taxation. According to the Joint Committee on Taxation, over 10 years, the plan would cost the Treasury Department around $324 billion more than if the 2002 levels were restored.

Meanwhile, full repeal would cost more than $500 billion over a decade.

that health care reform is a priority for the 111th Congress. With a number of other health care related provisions expiring in 2009, including the State Children’s Health Insurance Program (SCHIP) and Medicare reimbursement provisions, a large overhaul of the U.S. health care system seems to be likely.

ESTATE TAX Small businesses can be encouraged that one of the few tax proposals likely to be a carry-over from the previous session of Congress is a more permanent solution for dealing with the estate tax, which is set to be fully repealed in 2010 only to return to 2002 levels in 2011. Without some kind of compromise, the estate tax will jump f r o m

SELF EMPLOYMENT TAX ON HEALTH CARE Each year, NSBA takes critical steps toward enacting the Equity for Our Nation’s Self-Employed Act. In the 110th Congress, NSBA worked to get more than 70 cosponsors in the House, as well as a commitment from Senator Max Baucus (D-Mont.) to include this legislative language in his health care reform package in the 111th Congress.

The NSBA-led coalition will continue efforts in the 111th to remove this significant inequity within the tax code which amounts to an additional 15.3 percent tax that only the selfemployed pay, making it increasingly difficult for them to afford quality health care coverage.

EMPLOYEE FREE CHOICE ACT With a Democratic president and larger Democratic majorities in the House and Senate, some workforce issues that did not pass muster in the 110th Congress will see new life in 2009. The Employee Free Choice Act (EFCA), a bill that would eliminate the secret-ballot process for employees when organized labor attempts to unionize a workplace, tops the list of bills that are being targeted by the new Congress. The bill died in the

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INSIDE THE BELTWAY

Become an NSBA

110th Congress after the legislation passed the House but failed to pass cloture in the Senate. However, the House has maintained the votes to pass it again and the Senate has gained a larger majority.

Furthermore, President-elect Obama was an original cosponsor of the Senate legislation in the 110th Congress.

Media Advocate NSBA gets reporter requests from across the country to

FAMILY LEAVE AND MANDATED SICK PAY Both the Family Leave Insurance Act and the Healthy Families Act died in the 110th Congress but will be reconsidered again in the 111th Congress. The former bill would provide eight weeks of paid leave over a 12-month period for workers who need time off for reasons that parallel the Family and Medical Leave Act. The Act expands the FMLA threshold to all employers with two or more employees and creates a new “Family Leave Insurance Fund” to finance benefit payments.

The Fund would allow stakeholders to pool risk and lower costs, and would be funded through employee/employer premiums. The Healthy Families Act mandates seven days of paid sick leave for employees who work for businesses with more than 15 employees. Employees could use their leave in hourly intervals and not give any advance notice that they will not be working. Clearly, these issues provide an opportunity for small-business owners to voice their concerns and join NSBA in fighting their passage.

talk with small-business owners about various issues.

NSBA Media Advocates have been featured in various outlets, including the Wall Street Journal, Fox News, CNN, CBS Evening News, BusinessWeek and Fortune Magazine. NSBA staff will always contact you prior to giving your contact information to a reporter, and will work with you on talking points for your media interview. If you’re interested in helping NSBA’s communications

IMMIGRATION There is a strong possibility that a partisan battle over an overhaul of the nation’s immigration laws is expected to surface in the early months of the 111th Congress. Members of Congress failed to extend the federal government’s E-verify program in 2008, and instead opted to pass a short-term extension of the program that is set to expire on March 6, 2009. NSBA has raised concerns that legislators might consider expanding or make mandatory the E-verify program, a federal database to help employers determine employment eligibility, to small businesses.

but don’t want to speak with reporters, we are currently seeking “atwork” photos of our members.

Simply

take a picture of your business, you at work and/or your employees

PLAIN LANGUAGE LEGISLATION Rep. Bruce Braley (D-Iowa), who NSBA recognized as a 2008 Small Business Star, is expected to reintroduce his Plain Language in Government Communications Act, which overwhelmingly passed—376 to 1—the full House of Representatives during the 110th Congress.

at work and send it to NSBA. For more information or to sign up as a NSBA Media

PATENT REFORM Several lawmakers have indicated their desire to to address overhauling the nation’s patent system during the 111th Congress.

NSBA opposed the leading initiatives during the 110th Congress and will be watching and weighing in on the various proposals expected during the next two years.

Advocate please visit us on the web at www.nsba.biz.

SBIR REAUTHORIZATION With the Small Business Innovation and Research (SBIR) program slated to expire on March 20, 2009, a reauthorization is expected, although it is not clear when or how. Until the expected slate of urgent initiatives are resolved in the beginning of the 111th Congress, one or more continuing resolutions certainly are within the realm of possibility.

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RESOURCES

My 15 Minutes Life After the wall street journal and fox business news

By Cookie Driscoll

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hen asked by NSBA to share with reporters my story about how the downturn in the economy has affected my small businesses, I was hesitant.

One thing was for sure—things weren’t looking great. Where had I gone wrong? As I sat down and put to paper what had happened over the last several months, and how it affected me, I realized something important: this is an important story. People need to hear about the challenges of running a small business in

these difficult economic times.

The staff at NSBA connected me with several high-profile news outlets and I went on to do interviews with both the Wall Street Journal and Fox Business News. My one caveat being, “Please don’t make me into a ‘Joe the Plumber’!” I was assured they wouldn’t and after several conversations with a Wall Street Journal reporter and nearly a month gone by, I was told that the story would run on Dec. 26, and they needed a photo of me. The story—and

my dotted face in typical Wall Street Journal fashion—ran on the front page, showcasing my business difficulties in black in white for all the world to see.

I couldn’t shake a feeling of culpability and embarrassment at the shaky state in which I now found my business, but then the most amazing thing began to happen. I got emails and phone calls from all over the country from other small-business owners and former business owners offering their support and thanking me for telling the story. Each of them told me they had faced the same problems and had either thrown in the towel and closed their business, or were considering closing. Every one of them offered empathy and their best wishes for the future.

Their well wishes were received with great gratitude, but more than that—knowing that I was not alone meant the world to me.

It meant the world to them too.

After reading my story in the Wall Street Journal, Fox Business News called. After some squirming in my chair I agreed to an on-camera interview scheduled for Dec. 29.

I was up at 4:00 a.m. to feed the

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horses and close up the barn for the day, then got ready for the interview. When the red light on the camera in that isolated studio came on, I thought I would puff cotton when I first tried to speak.

Somehow I managed to not only speak, but tell my story and talk about the importance of ensuring that America’s small-business owners are able to ride-out this recession.

When I returned back to the farm I was met with more supportive emails and calls. So what did I take away from this experience?

I didn’t do anything wrong. I’m not a bad business person. I’m not alone - that’s the biggie. I’m not alone and now other business people know that they are not alone either. **Cookie Driscoll, owner of C. Cookie Driscoll, Inc., a working horse-farm, animal-themed art, and promotional products company, is a board member of NSBA and chair-elect of SMC Business Councils in Pennsylvania, an NSBA affiliate.

Have your voice heard! Sign up today as a Media Advocate for NSBA and share in Cookie’s experience.

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FEATURE FEA ATURE A ARTICLE RTICLE E

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FEATURE ARTICLE

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SBA recently released the 2008 Year-End Economic Report based on membersurvey data collected during the last two weeks in December. The report shows a small-business community reflective of the overall U.S. economy, struggling over the past several months and anticipating continued challenges in the near future.

When asked in December to compare today’s national economy with five years ago, 91 percent responded that the U.S. is worse off, up from 68 percent in August 2008. In August, only 26 percent of survey respondents anticipated a recession, while 21 percent anticipated economic growth in the coming 12 months. Asked the same question in December, a mere 3 percent of small-business owners anticipated economic growth, while 33 percent anticipated a flat economy and significant majority—64 percent—anticipated a continued recession, representing a dramatic increase in negative economic outlook in just the last four months.

Small Business Confidence in the U.S. Economy Small-business owners overwhelmingly cited economic uncertainty as the most significant challenge to the future growth and survival of their business. According to the December survey, 75 percent cited economic uncertainty as one of their top three challenges, up from 53 percent—a 42 percent jump—since August.

In addition to general economic uncertainty, small businesses ranked cost of health insurance (43 percent), inability to access capital (33 percent) and federal taxes (32 percent) among their most significant challenges to the future growth and survival of their business. With Congress working on an economic stimulus package, addressing these key concerns could mean the difference between growing and closing the doors for many small businesses.

As is to be expected from any entrepreneur, a majority of respondents in the December survey cited confidence in the future of their own business, despite a dismal outlook on overall economy. However, that confidence level has dropped significantly in four months with only 62 percent of small-business owners expressing confidence in their own business in December as compared with 75 percent in August.

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FEATURE ARTICLE

That decrease represents a 17 percent jump in the number of small-business owners not confident in the future of their own businesses.

Business Growth The December survey took a close look at how business has fared over the past 12 months as well as projections for the coming year. Small-business owners were asked how much change their businesses had experienced in gross sales/revenues and net profits, and reported a complete reversal from August numbers when more businesses reported increases than decreases in both areas. In August, 48 percent cited revenue increases and 30 percent cited decreases, however in December, only 38 percent cited an increase in revenues and 45 percent cited

when more businesses expected increases—and December—when more businesses expected decreases. In August, 57 percent projected revenue increases and 23 percent projected decreases in the coming 12 months. In December, only 31 percent projected an increase in revenues while 47 percent projected revenue decreases in the coming 12 months. Regarding expected profits in the coming 12 months, 43 percent in August projected an increase in profits while 31 projected a decrease. In December, just 23 projected increases in profits for the coming year while 53 percent projected a decrease in profits.

When asked about which future growth strategies they plan to implement in the coming 12 months, the top three responses were new advertising and marketing strategies (48 percent), expanded Internet presence and e-commerce (41 percent), and strategic alliances (32 percent). When asked about future growth strategies only 12 percent included plans to hire new employees, down from 23 percent in August

restricting their ability to create jobs.

Similar to the changes in revenues and profits between the August and December survey, employment numbers also took a turn for the worse with fewer companies increasing employment than decreasing it. When asked in August about employee growth in the past 12 months, 30 percent cited an increase while 14 percent cited a decrease and 48 percent cited no change in employee numbers. In December, only 18 percent cited an increase in employees over the past 12 months while 26 percent cited a decrease and 53 percent cited no growth.

There was no difference in the December data between employment numbers in the past 12 months and employment projections for the coming 12 months, with 18 percent projecting an increase in employees 26 percent projecting a decrease 30, leaving net job growth in a deficit.

Furthermore, data from the December ADP National Employment Report showed significant cuts in employment between November and December 2008 among small companies—281,000 jobs cut. Back in October, ADP reported a 25,000 employee cut which was the first net decline in smallbusiness employment reported by the ADP Report since November of 2002. Prior to the December decreases in jobs, small business showed net job growth for 2008 of 245,000 jobs while large business (companies with more than 500 employees) showed a net loss

“Sources of financing included traditional bank loans, earnings of the business, and credit cards in the top-three slots. Unfortunately, business owners report worsening terms for both bank loans and credit cards” decreases. With regards to profits, businesses experienced the same marked reversal in increases versus decreases. In August, 41 percent reported an increase in profits while 37 reported a decrease. However, in December, only 30 percent cited increases in profits and a whopping 51 percent cited decreases in profits.

Small-business owners also were asked to rate their level of expected business growth for the coming 12 months, and a similar reversal occurred between August— 12

Job Growth As the leading contributor of net new jobs to the U.S. economy—93.5 percent in the last 20 years—small-business job growth has been a critical piece of NSBA’s surveys and polls. Small-business owners were asked how their business has fared over the past 12 months regarding number of employees.

Unfortunately, small-business owners have been financially stymied in recent months and unable to grow their business, thereby ADVOCATE

of 313,000.

Given the historic role small business has played in job creation, the alarming switch in net losses in both past and projected job growth is extremely troubling.

Any impediment to small businesses ability to create jobs at a time when the economy is struggling could make for an extended and more difficult recession. Creating an environment where small businesses can start, thrive and grow surely will enable JANUARY/FEBRUARY 2009

FEATURE ARTICLE the U.S. is to move more promptly toward economic recovery.

Small Business Financing With the number of small businesses using bank loans at a 15-year low, according to the annual NSBA survey conducted in February 2008, the recent shake-up in the financial markets has made financing an even bigger challenge. Regardless of lower interest rates and other incentives attached to loans, small-business lending has actually tightened up significantly. According to the October 2008 Federal Reserve Board Senior Loan Officer Survey, 75 percent of U.S. banks have tightened their lending standards on small business loans.

When asked if their business is able to obtain adequate financing, 78 percent said yes in August—that number dropped to 67 percent in December. Although the 67 percent number appears to be a positive indicator, it is important to note that fewer companies were thought to be seeking financing between August and December based on decreases in the number of companies relying on outside funding. In the annual survey conducted in February 2008, NSBA asked small-business owners if their business had been impacted by the credit crunch, and 55 percent responded that it had. In August, that number jumped to 67 percent, and continued to rise in December to 69 percent.

Sources of financing for NSBA’s members in the December survey included traditional bank loans, earnings of the business and credit cards in the top-three slots, with credit-card usage rising from 44 percent to 49 percent. Unfortunately, business owners report worsening terms for both bank loans and credit cards. Sixty-nine percent in the December survey cited worsening credit card terms, up from 63 percent in August.

With regards to bank loan terms, in August 11 percent cited more favorable terms to their business loans, but in December, that number dropped to 7 percent, while 20 percent cited less favorable terms.

Although regulations have recently been approved that will curb some of the most egregious practices of the credit-card industry, the new rules failed to include business-specific credit cards. There exists significant confusion among small-business JANUARY/FEBRUARY 2009

owners about their credit cards and whether or not they are using a personal card for business purposes or whether their card is classified as a business card. According to the December survey, 41 percent rely on a combination of business and personal credit cards. When asked in a recent quick-poll, 54 percent were unaware of the differences between personal and business credit cards.

Furthermore, 37 percent have reported an increase in solicitations for business credit cards—making more broad reform of the entire credit card industry paramount.

NSBA has heard anecdotally from small-business owners across the country

“...small business remains one of the most important sectors of the U.S. economy, yet has too often been an afterthought in broad legislation aimed at rescuing failing industries..” who have had a credit-card limit or line of credit arbitrarily reduced due to no fault of their own. These reductions are typically due simply to the fact that, as a small business, the lending institution views the credit as risky. When asked in December, 28 percent of small-business owners responded that they had experienced a decrease in their line(s) of credit or a credit-card limit in the past six months. Small-business owners are also struggling to pay-off their credit cards—56 percent surveyed in August said they pay off the balance of their credit card each month, but in December, that number dropped to 50 percent.

been an afterthought in broad legislation aimed at rescuing failing industries. When asked which issue they believe Congress and President-elect Obama should address first, small businesses ranked reducing the tax burden (29 percent), increase small business access to capital (25 percent), and addressing health care costs (17 percent) among their chief concerns.

Despite the bleak outlook for the U.S. economy as a whole, the majority of smallbusiness owners are relatively confident about their own business. That trend, however, may not last forever if the economy continues to suffer and small businesses aren’t included in attempts to stimulate the economy. To raise awareness with new and returning members of Congress and the incoming administration, NSBA developed an initiative, “Think Big. Start Small.,” to highlight the most pressing issues for the small-business community.

To address the most near-term problems, NSBA has outlined a number of key proposals ranging from expanded SBA lending to abolishing the self-employment tax on health insurance that ought to be included in any economic stimulus package.

The NSBA 2008 Year-End Economic Report exemplifies the difficult position in which America’s small businesses find themselves, and the data speaks loud and clear about the need to address these difficulties now. **This data was collected using a random sampling of 250 NSBA members during the last two weeks in December. While reasonable trending data can be taken from the August 2008 and December 2008 surveys, it is important to note that this data likely paints a more positive picture than that of the small-business community at-large, as NSBA’s membership tends to be older, larger and more established businesses.

Public Policy As the 111th Congress begins to tackle many important issues and President-elect Barack Obama prepares for his inauguration, small business remains one of the most important sectors of the U.S. economy, yet has too often ADVOCATE

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RESOURCES

Alernatives To Layoffs Finding Ways to Save More Than Just Jobs

By Jason Zuckerman

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ne of the most difficult components of operating a business is confronting the painful decision to lay off your employees.

Layoffs can create more problems than just an agonizing decision for the employer. It is a morale devastator that can drive existing employees to focus their work hours on new job searches, or leave them with a severe case of “survivor’s guilt;” either way, productivity is lost.

But these are not the only issues that surface after layoffs. The cost of recruiting and retraining once the bottom line improves can be more than the initial layoff savings. Consider the time investment and costly mistakes new hires are potentially prone to, as well as the risk of bringing on a weak hire to replace the good hire you had.

Holistically, layoffs look bad for the company. Stakeholders, vendors and customers take note and raise eyebrows when the pink slips are handed out. They wonder if the company is in trouble.

Sometimes layoffs are the only option, and if they must be done, do them early and quickly. Make sure the decision is proactive in nature and not reactive. However, they should always be a last resort. There are a number of alternatives to layoffs based on the experience of thousands of small and mid-sized business owners in the member network of The Alternative Board:

1. Reduce the Work Week If possible, reducing the workweek from five days to four can save jobs. Eight hours is 20 percent of the work week and that equates to significant payroll savings. Don’t assume you’ll entirely lose the 20 percent productivity from your employees either.

Employees will most likely focus more diligently and work harder when they are at work because they realize you’re trying to save jobs.

Of course, for this and all the other tips here, clearly communicating that the point is saving employee jobs through creative means – not just saving company payroll money – is an important part of keeping that morale high.

2. ‘Tis the Season Offer an unpaid holiday option. For example, instead of taking two weeks off, ask your employees to take four, with two unpaid.

Millennials, generally unburdened with mortgages and major family expenses, might embrace the opportunity to go on a prolonged holiday. Showing a good faith effort, you could also implement unpaid holidays intermittently throughout the year so that employees can schedule and budget for them appropriately.

3. Sabbaticals Aren’t Just for Educaors Sabbaticals offer employees the opportunity to take time to enhance their skill set. This time will be taken at reduced or no pay, and the employees are generally responsible for any training courses they undergo; however, they will bring more to the table when they return.

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This by no means is delivered for the purposes of a perk, but they most likely will prefer this option as opposed to losing their jobs.

4. Lend a Helping Hand A tactic that isn’t as common, but can be a viable solution is employee lending. See if other businesses want to hire your employee on a temporary basis while you save on payroll. However, make sure all of the logistics are ironed out between both companies and the employees involved before you initiate a lend.

5. Challenge Your Employees Finally, challenge your employees to help find ways to save the company cash and incentivize them to do so. An example: for every $1,000 they identify in savings to the company, offer them $200.

You’ll be surprised about how many things your employees will bring up that you wouldn’t have previously considered cutting back on, but are real money savers. When times are tough, every bit helps.

When your team knows you’re fighting for them, they will fight for you.

Jason Zickerman is president and CEO of The Alternative Board. He offers a number of alternatives to layoffs based on the experience of thousands of small and mid-sized business owners in the member network of The Alternative Board:

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Lock in Your Rate until 2011 WE ARE DEDICATED TO AMERICA’S SMALL BUSINESS COMMUNITY. As America’s oldest small-business advocate, NSBA is dedicated to meeting the needs of America’s small businesses and helping the community to overcome the challenges they face every day. We realize that one of the largest barriers for small-business owners and employees is the rising cost and burden of HealthCare, which is why NSBA is proud to offer its members the opportunity to take advantage of the new NSBA Health Plans.

WE PROVIDE YOU AND YOUR FAMILY WITH EXCELLENT SERVICE. NSBA Member Benefits Department is pleased to provide our members and their families with comprehensive and affordable health insurance plans that are meant to save them money.

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ON THE HILL

Who’s on First: A Brief Rundown of New Leadership in Washington, D.C.

by Molly Brogan, Dan Jones, Kyle Kempf, and Jody Milanese

In the days leading up to the inauguration, the airwaves were permeated with the significant and historic change in leadership the U.S. was about to undergo. While the inauguration of President Barack Obama is without a doubt historic and a huge milestone, there are various other key leadership changes that have occurred in recent weeks in Congress and the new administration. NSBA has compiled a list of changes and updates for the committees and agencies that stand to most significantly impact the small-business community in the coming two years during the 111th Congress.

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Leadership in the House and Senate remained intact as Senate Majority Leader Harry Reid (D-Nev.) and House Speaker Nancy Pelosi (D-Calif.) kicked-off the new session of Congress on January 6, 2009. Rep. Steny Hoyer (D-Md.) will continue as House Majority Leader, and Rep. John Boehner (R-Ohio) remains House Minority Leader. In the Senate, Mitch McConnell (R-Ky.) will continue in his role as Senate Minority Leader.

The House Energy and Commerce Committee, which oversees national energy policy, certain non-employer health issues, and interstate and foreign commerce, received the most-unexpected makeover with the unseating of Rep. John Dingell (D-Mich.) by Rep. Henry Waxman (D-Calif.). Rep. Joe Barton (R-Texas) will retain his status as the ranking member of the committee. Waxman previously served as chairman of the House Oversight and Government Reform Committee, which oversees regulatory reform, government and administration management, and federal procurement policy. Rep. Edolphus Towns (D-N.Y.) will now chair, with Rep. Darrell Issa (R-Calif.) as ranking member, the Oversight and Government Reform Committee.

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Rep. Charles Rangel will retain his chairmanship of the powerful Ways and Means Committee, responsible for tax policy and trade agreements. Rep. Dave Camp (R-Mich.), who previously served as ranking member on the Ways and Means Subcommittee on Health, will replace the retired Rep. Jim McCrery (R-LA) as ranking member of 16

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JANUARY/FEBRUARY 2009

ON THE HILL

the full committee. Rep. Linda Sanchez (D-Calif.), a new member to the Ways and Means Committee this year, will bring an interesting perspective to the committee as a co-founder of the House Trade Working Group, which has led the charge against pending free-trade deals and pushed for a renegotiation of the North American Free Trade Agreement.

On the House Small Business Committee, which oversees the U.S. Small Business Administration (SBA) and has broad discretion over general small-business issues, Rep. Sam Graves (R-Mo.) will replace defeated Rep. Steve Chabot (ROH) as ranking member and Rep. Nydia Velázquez will remain chairwoman of the committee.

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The Senate will see no change in leadership of the Senate Finance Committee, Senate Health, Education, Labor and Pensions Committee, the Banking, Housing and Urban Affairs Committee., or the Environment and Public Works Committee.

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Sen. John Kerry (D-Mass.), the long-time chair of the Senate Committee on Small Business and Entrepreneurship, leaves that post to head the Senate Foreign Relations Committee, replacing Sen. Joe Biden (D-Del.). With Kerry’s departure, Sen. Mary Landrieu (D-La.) steps up to chair the committee for the 111th Congress.

Sen. Olympia Snowe will remain ranking member, marking the first time in history that two women have been JANUARY/FEBRUARY 2009

the chair and ranking member of a Senate committee.

Obama has nominated several cabinet positions for his administration that will have significant relevance to NSBA’s legislative agenda. Former Senator and Majority Leader Tom Daschle (D-S.D.) was tapped to serve as Secretary of the Health and Human Services Department, as well as director of the White House Office on Health Reform.

Daschle served in the House and Senate from 1978 until his defeat in 2004.

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Rep. Hilda Solis (D-Calif.) is Obama’s pick for Secretary of the Department of Labor. Solis has served on the House Committee on Energy and Commerce, House Committee on Natural Resources and the Select Committee on Energy and Independence and Global Warming.

She was first elected to Congress in 2000 and has earned a reputation for being a strong advocate on labor and environment issues, and has been outspoken on several immigration issues. Most notably, she has been a champion of the Employee Free Choice Act, a bill NSBA opposes that would eliminate the secret-ballot process for employees when organized labor attempts to unionize a workplace.

Arizona Governor Janet Napolitano has been nominated to head the Department of Homeland Security. Prior to being elected Governor in 2002, Napolitano served as U.S. Attorney for the District of Arizona since 1993. Her work on issues impacting the state of Arizona—a ADVOCATE

key border state—will likely play a significant role in immigration policies considered by the Obama administration.

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Finally, Obama named Maine business leader and venture capitalist Karen Gordon Mills to serve as Administrator of the SBA. Mills has broad experience in business finance, currently serving as president of a private equity investing firm and previously holding leadership roles in venture capital firms. She also has a strong background on environmental issues, having served as a director for the Maine Chapter of the Nature Conservancy and as chair of the Maine Governor’s Council on Competitiveness and the Economy, both of which maker her a likely advocate for policy that embraces small businesses role in energy efficiency .

Although not yet a cabinet member— NSBA has been outspoken in our support of advancing the SBA chief’s role to cabinet-level—Mills holds a significant role in the new administration in addressing the significant and negative impacts the recession has had on America’s smallbusiness community.

To learn more about your elected officials, pertinent committees in Congress, and agency heads, please visit NSBA’s on-line action center at www.nsba.biz/advocacy.html.

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IN THE NEWS

NSBA data is quoted regularly in local, regional and national media outlets. Our members and on various radio shows. Below are just a few of the many recent media mentions of NSBA. For more,

MARKETWATCH NSBA RELEASES 2008 YEAR-END ECONOMIC REPORT - OUTLOOK NOT GOOD “NSBA’s Year-End Economic Report exemplifies the difficult position in which we small businesses find ourselves today,” said NSBA Chair Keith Ashmus.

TAMPA BAY BIZ JOURNAL NSBA RELEASES 2008 YEAR-END ECONOMIC REPORT More than one-third are not confidant about the future of their own business,” stated NSBA President Todd O. McCracken. “Coming from traditionally up-beat entrepreneurs, this number ought to send a strong message to Congress.

BUSINESSWEEK SMALL BUSINESS OWNERS HAVE CREDIT LINES PULLED The National Small Business Association just released its yearend economic report, based on a member survey…28 percent of business owners surveyed said they had a line of credit or credit card limit decreased in the last six months.

WASHINGTON POST BUSINESS GROUP OFFERS ‘WISH LIST’ TO LAWMAKERS U.S. NEWS & WORLD REPORT A SMALL BUSINESS BAILOUT? …the National Small Business Association [is] calling for 25 percent of TARP funds to be aimed at small business lending and a mandate that 23 percent of stimulus infrastructure funds be contracted out to small businesses.

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The National Small Business Association said the number of small business owners who believe the national economy is worse than it was five years ago jumped to 64 percent from 32 percent in August.

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IN THE NEWS

leadership have been featured in prominent publications and television news programs, and appear regularly please visit www.nsba.biz/news.html

NATIONAL PUBLIC RADIO SMALL BUSINESS OWNERS STILL OPTIMISTIC The National Small Business Association…has a survey of its members out this morning, and …most say credit conditions are getting worse. However, according to NSBA President Todd McCracken, “There’s always been a strikingly more optimistic outlook on the part of small-business owners about their own business than about the economy overall.”

SAN FRANCISCO CHRONICLE GET READY FOR STIMULUS PLAN POLITICKING ON CAPITOL HILL The NSBA also wants 23 percent of all funds for state and local infrastructure projects earmarked for small businesses… is also calling for the long-overdue repeal of the selfemployment tax on health insurance for sole proprietors.

TAMPA BAY BIZ JOURNAL NSBA RELEASES 2008 YEAR-END ECONOMIC REPORT ENTREPRENEUR MAGAZINE OBAMA CABINET SHORT ON BUSINESS EXPERIENCE “A lack of business background in Cabinet members can easily be accommodated for by a president taking proactive steps to ensure that small business is at the table.” said Molly Brogan, spokeswoman for NSBA.

More than one-third are not confidant about the future of their own business,” stated NSBA President Todd O. McCracken. “Coming from traditionally up-beat entrepreneurs, this number ought to send a strong message to Congress.

PITTSBURGH BUSINESS TIMES LANDIS: SMALL BUSINESSES NEED A SEAT AT THE TABLE

CNN ENTREPRENEURS’ OPTIMISM AT RECORD LOWS

Marilyn Landis, chairwoman of NSBA…said, “The tightenting of credit markets has been especially hard on small business.” Despite all the chips stacked against them, Landis said small businesses will be the ones to right the economy.

“We talk with small businesses that rely on credit cards, and 69% say it’s gotten worse,” said NSBA’s Brogan. “There have been terms and APR changes, even when the owner didn’t do anything wrong.”

JANUARY/FEBRUARY 2009

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FROM OUR AFFILIATES

It All Adds Up How Small Business Can Make a Big Impact

By Bob Baker, President Small Business Association of New England

t is no secret that small business is critical to the U.S. economy – having created on average 93.5 percent of all net new jobs nationwide over the past 20 years. However, what is often not discussed is the critical role small business plays in developing regional and state economies. Such was the case in Massachusetts only three short years ago until the Smaller Business Association of New England (SBANE) stepped in and took action.

Historically, high technology companies have been the driving force of the Massachusetts economy. Massachusetts is strong and diversified in all areas of high technology research and development, including life sciences, alternative energy, defense, and electronics/software. Although none of these areas is particularly dominant, small business is consistently at the forefront of the Massachusetts economy, employing 50 percent of all Massachusetts workers.

In 2006, Massachusetts began to experience a decline in the competitiveness of its high technology manufacturing sector that contributed to a decline in the state’s population. The 2006 Index of the Massachusetts Innovation Economy, a study commissioned by the state-funded Massachusetts Technology Collaborative, showed that although Massachusetts high technology companies were prolific in securing research and development dollars from Federal programs such as the Small Business Innovation Research (SBIR) program, commercialization of these technologies, which should have resulted in new manufacturing jobs, was often not captured in Massachusetts.

This stark reality led the SBANE High Tech Committee to assess Massachusetts’ economic incentives against its competitive

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Affairs Chairman Shawn O’Rourke and SBANE High Tech Committee Chairman Les Bowen, met with legislative leaders in the Massachusetts State Legislature to brief them on this new concept and get their feedback. Since the SBIR program brought into Massachusetts over $250 million per year in research and development money for high technology, life sciences and energy innovation, it was important to link any legislative intent to SBIR commercialization.

Due to an extremely progressive legislator, Representative Dan Bosley, a $10 million pilot program aimed at generating manufacturing jobs from Massachusetts SBIR R&D successes was inserted into a major Massachusetts life sciences bill enacted in June of 2008.

What is often not discussed is the critical The Massachusetts Small role small business plays in developing Business Matching Grant Program regional and state economies. Such provides up to $500,000 in was the case in Massachusetts only matching grants to those SBIR or three short years ago until the Smaller STTR recipients who are moving Business Association of New England toward commercialization of (SBANE) stepped in and took action. their technology. The bill also instructs the Massachusetts Life Sciences Center, a quasi-public R&D growth rates and corporation established to administer the started rapidly generating large $1 billion Massachusetts Life Sciences quantities of new high-paying Program, to make these grants in consultation with SBANE. manufacturing jobs.

This is the first time that the For Massachusetts, with the highest per capita SBIR win rate in the nation, Massachusetts Legislature has officially generating more SBIR contracts was not the acknowledged and incorporated the highly problem. The challenge for Massachusetts successful SBIR program into the state’s While was converting successful SBIR research economic development policy. and development into commercial products. it is premature to predict the outcome of It was ultimately decided that a the new program, it does send a strong capital match from the Commonwealth of signal to Massachusetts SBIR technology Massachusetts geared toward bridging the companies to keep their production and It technology readiness gap between SBIR manufacturing in Massachusetts.

Phase II and Phase III would be the most also recognizes the initiative and vision effective targeted assistance. Over the of a small but dedicated group of high next two years, the Massachusetts Small technology companies who applied their Business Matching Grant Program came business expertise through SBANE and to life. I, along with SBANE Government got landmark legislation enacted. peers in attracting and retaining high technology small-business jobs. SBANE focused its attention on the SBIR program and learned that other states provided tangible financial matches to SBIR R&D contracts in order to generate new high technology small companies. SBANE also found that other states were actively recruiting Massachusetts’ high tech small businesses, particularly those ready to be awarded SBIR Phase III dollars, to relocate to their state. Taken together, the situation had become a serious competitive challenge for Massachusetts. It was in danger of losing small, high-technology businesses just as they began experiencing high post-

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MEMBER PROFILE

Prosum Service Corporation Proof that Thinking Small Can Lead to Bigger Things

By Greg Smith

repair and maintenance projects – a niche in the construction industry that has often been overlooked. The company employs six full time staff members, all of whom have an understanding of and experience in working on small projects.

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As Manthey points out “This, along with our central location, enables us to respond rapidly and provide courteous, knowledgeable and professional service.”

It’s no secret that in the construction industry the largest profits come from large build-out projects. So why did Manthey risk it all to focus on small projects? “The opportunity arose while I was a general manager running a service division for a construction company,” Manthey explains. “I began to take notice that no one in the industry specialized in small build-outs and repairs even though

Manthey takes great pride in being able to bid on a job, provide quality work and service, and see the clients’ reaction when a project comes to fruition. Quality customer service and craftsmanship is the cornerstone upon which Prosum was founded, and those attributes still guide the company today. As Manthey points out, “For us, a small project is a big deal, it’s not a big deal to a big company. To us it’s our livelihood so we strive to provide a quality experience and product every time for every project.”

Lately Manthey has drawn some parallels from what his company does for small projects to what the federal government can do for small businesses in these uncertain economic times. “Without a doubt the biggest obstacle facing all small-business owners right now is the ability to get cash for business operations.” Manthey continues “Congress should make it a top priority to make low or no interest loans to small business. Perhaps more important, is that the application process be relatively easy versus being long and drawn out.”

he nation is in the midst of its worst economic crisis since the Great Depression.

Nearly a million construction related jobs alone have been lost as a result of the slowdown, and the deterioration has spread into nearly all other job sectors.

The economic crisis has spread to nearly every small town and city across the country, and small businesses are suffering. In spite of the bleak outlook, the majority of America’s Realizing that small business small-business owners, Lately Manthey has drawn some parallels from needs a voice and advocate in such as Don Manthey what his company does for small projects to what the nation’s capital, Prosum owner of Prosum Serivce the federal government can do for small businesses Service Corporation became a Corporation, remain in these uncertain economic times. member of NSBA nearly five resilient and maintain years ago. “When you become a an optimistic outlook small-business owner everything for the viability of their there was a market and demand for changes.” Manthey continues “You businesses. such services.” Realizing the potential, suddenly find yourself looking for an ally Manthey set out to start his own small that can provide you with information and Prosum Service Corporation has been in business that focused on small projects. resources on legislation and regulations operation for over 25 years. Prosum is that impact your business.” specifically geared to handle small office JANUARY/FEBRUARY 2009

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COUNCIL UPDATES

Show Me the Money: Export Lending Remains Available for Small Companies

by Jim Morrison

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he spread of the credit crunch through the global banking system is reaching even previously untouched areas, such as export financing. This is potentially a very threatening development for world trade, 70 percent of which is financed, according to the World Trade Organization.

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rade finance has always been challenging for smaller exporters because it involves assessments of foreign markets and foreign risks that relatively few banks are willing to undertake. And those banks which do offer trade financing often provide it only for their larger customers. The bad news, then, is that smaller exporters are especially vulnerable to the shrinkage of credit availability. The good news, however, is that in recent months the Small Business Exporters Association (SBEA), an NSBA Council, has made significant progress in identifying sources of export financing that

remain available to smaller companies. More banks are realizing that export lending, which typically carries a 90 percent federal guarantee and is secured by the goods being shipped, is actually a very sound form of lending.

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orking with our members and our contacts in government and banking, we have found at least four important channels of export financing. In some cases, these lenders are even expanding their reach. First, the federal government has stepped up its capacity for direct lending to exporters. This is particularly true at the Export-Import Bank of the U.S., a federal agency. Second, some banks with long histories of servicing smaller exporters are increasing their lending. Third, non-bank lenders, backed by private investors, are entering the market to meet the demand. And fourth, much improved forms of lending on receivables are becoming available. If you are an NSBA or SBEA member who is searching for export financing, contact SBEA at: info@sbea.org and we’ll offer some guidance.

Turning Up the Pressure SBTC Presses Ahead on SBIR Reauthorization

by Jere Glover

As the deadline for renewal of the Small Business Innovation Research (SBIR) Program by Congress approaches, the Small Business Technology Council (SBTC), an NSBA Council, continues its push to have the program renewed and strengthened. Not only to keep SBIR functioning, but to increase the allocation of federal Research & Development funds that go to it. To maximize our effectiveness in Washington, SBTC is urging members to keep up the strong “grass-roots” pressure on Congress, emphasizing that SBIR is vital to thousands of small technology-based companies.

To keep the ball rolling on these activities, and to update SBTC members on the current legislative situation, SBTC holds a monthly conference call for SBTC members. The monthly conference call agenda and dial-in information can be found at www.sbtc.org/sbir.

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SBTC also sponsors multiple member fly-ins throughout the year.

There is no better way to educate your elected officials than through meeting with their staff and providing the relevant and factual information about the importance of the SBIR Program. To review the steps for contacting your Senators and Representative, go to the Member Center of the SBTC website, www.sbtc.org, and look over the “Resource Guides”.

Also in the “Resource Guides” area of the Member Center of the SBTC website are lists of Members of Congress who sit on key Committees and a link to a search engine that can help you find other SBIR awardees in your area.

After you’ve made your contacts with Congress, there are myriad other activities that you can do to help win the legislative battle and keep small business in the Small Business Innovation and Research Program.. To find out how you can help please visit the SBTC SBIR Reauthorization Action Center at www.sbtc.org/sbir.

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ADVOCACY & EVENTS

Febru Small ary 12 Sunn Business 14, 2009 y Ft. L C aude ongress Some in rdale , FL!!

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December 19, 2008 NSBA staff attended a leadership forum to discuss health care reform with Senate Finance Committee staff.

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JANUARY/FEBRUARY 2009

December 15, 2008 NSBA staff attended a meeting of the Merchants Payments Coalition.

09 ry 6, 20 Februa t e taff m NSBA s ty ri e mino the with th f o ector staff dir ommittee C Senate ss and ll Busine a m S n o neurship Entrepre

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Jan NSB uary 6 , an A staff 2009 Op a hon en H ttend Vela or of R ouse ed cha zquez ep. Ny in U.S. irmans and h dia on S House hip of er t ma C ll Bu omm he sine ittee ss.

2009 d ry 19, JanuaPresident Todipated in

NSBA cken partic hosted a McCr roundtable tee ll a m s ommit d a n nate C

by Se ll Business a hair a C m S ip h rs on nd reneu La.) a Entrep andrieu (D- lympia O L Mary g Member o discuss t Rankin (R-Maine) usiness. b e ll w a o n m S e of s t a t s the

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