Graves: The Only Way to Grow Our Economy is Small Businesses

This week marks the 48th annual National Small Business Week, a recognized time to celebrate the contributions of small businesses to the economic well-being of America. Republican Members of the House Small Business Committee will celebrate American small firms by holding forums and listening sessions in Congressional districts across America this week.

Small businesses create seven of every ten new jobs and employ over half of the country’s private sector work force. They are the key to solving our nation’s unemployment problem; and if we want to get our economy back on track, we must find ways to spur small business growth.

The economic downturn of the last few years has taken quite a toll on American entrepreneurs. Despite their hard work and determination, many small business owners struggled to make payroll and many were forced to close their doors for good. One of the most significant obstacles faced by our small companies during this tumultuous period has been access to capital.

Capital is critical for small business success. Small firms lack the resources of their larger counterparts and rely on financing to carry out their daily operations. Without it, they would be unable to replenish inventory or purchase new equipment and many would simply cease to exist. Small businesses need diverse ways to access capital to start their business, invest in their company, and meet unexpected challenges, and it’s important for banks to work closer with their small business customers to make sure they have the capital they need to accomplish these goals.

While the Obama administration claims that lending standards to small firms have loosened, the fiscal crisis and a stricter regulatory environment have left banks wary of lending to small businesses. Additionally, uncertainty over the direction of the economy, healthcare reform, taxes and regulations make small businesses more vulnerable as the compliance burden posed by complex rules and mandates grows.

A monumental piece of legislation that is impacting access to capital is the “Dodd-Frank Wall Street Reform and Consumer Protection Act,” which became law in July of 2010. The bill was designed to address the financial meltdown but it is creating many unintended negative consequences.

In order to help small businesses gain access to the credit and capital they need to run their business successfully, Congress must adopt policies that support functional capital markets without imposing undue restrictions on providers of debt and equity capital. Additionally, Congress must remove barriers that prevent participation in and utilization of the SBA financing programs.

Congress can protect small businesses by providing effective oversight over SBA policies and make sure they take into account the needs of small businesses while also protecting taxpayer dollars. Congress also needs to make sure that new banking regulations do not make it more costly for community banks to lend to small businesses.

As Chairman of the Small Business Committee, I intend to delve into the state of the economic environment for both banks and small businesses and the federal regulatory pressure on both entities.

In early June, my Committee will be holding a hearing on the issue of access to capital and we will explore innovative ways that banks are reaching out to small businesses and how the government can help create a better atmosphere for those financial relationships.

In addition, our Subcommittee on Economic Growth, Tax and Capital Access Chairman Joe Walsh (R-Ill.) will hold a hearing on the impact of Dodd-Frank this summer.

The precarious state of our economy, combined with unnecessary overregulation by the Obama administration, has restricted small business access to capital.

I have heard firsthand from several small business owners about their struggle to borrow and their fear of taking on additional debt. Government should stand aside and let the business community prosper, instead of imposing new regulations that will only stifle growth and limit access to capital. I am hopeful that the Senate and the president will join with the House and work to help more Americans start and grow their small businesses.

Graves: Small Firms Need New Markets

Navigating the trials of international trade barriers is akin to “watching a cow poke its head through a sharp barbwire fence and struggle to get that next piece of greenery,” said John Taylor, President of T-Tech Inc., a leading manufacturer of printed circuit board prototyping systems.

Located in Norcross, with 15 employees, T-Tech opened its doors in 1983 and started exporting in 1988. Despite the cumbersome trade process, exports now account for approximately 60 percent of this small firm’s gross sales.

With 95 percent of the purchasing market outside the U.S., small businesses like T-Tech understand the vital importance of opening new markets in order to compete in the global marketplace.

“Any area of the world that is becoming tech savvy is a potential market for us. Right now we export to over 46 different countries — including Colombia where the U.S. is currently discussing a free trade agreement.

“Opening the doors to free trade in Colombia and eliminating the burdensome tariffs would be an enormous asset to my business. And more exports equal the ability to create more jobs,” explained Taylor.

T-Tech is just one example out of the thousands of American small businesses that continually deal with difficult trade barriers.

In fact, 97 percent of identified U.S. exporters are small businesses — yet that only represents a small fraction of those who could compete globally if trade barriers and high tariffs were reduced. Most small firms lack the resources and capital to navigate through trade barriers and as a result, many simply do not export.

This is why passing the pending free trade agreements with Colombia, Panama and Korea is critical. Trade agreements with all three countries were concluded in 2007; however, no congressional action has been taken.

Passing the agreements is a surefire way to spur job creation, spark long-term growth in our economy and ensure that America remains competitive in the global marketplace — all without one dime of new government spending.

But we must act now. While the Obama administration continues to hold the agreements, our global competitors are aggressively moving forward with similar free trade agreements. In July, the Colombia-Canada and European Union-Korea free trade agreements will go into effect, placing American small businesses at a competitive disadvantage if the pending U.S. agreements are not passed.

As chairman of the House Small Business Committee, I have heard from dozens of small business owners who are counting on the three trade agreements to expand their businesses.

It would be damaging to not pass the agreements before July and cause small businesses and farmers to lose more market share to foreign competitors and opportunities to create quality American jobs.

The U.S. International Trade Commission estimates that the three trade agreements combined would increase U.S. exports by $13 billion — and for every $1 billion in U.S. exports, an estimated 6,000 jobs are created.

In 2010 alone, American exports supported nearly 10 million jobs, including an estimated 4 million for small businesses. Additionally, the U.S. Chamber of Commerce reports that jobs supported by exports pay as much as 18 percent higher than the national average.

We must do more to eliminate the uncertainty and obstacles plaguing our job creators. And approving the stalled free trade agreements to provide a level playing field would be a great first step.

Graves' Statement on April Jobs Report

House Small Business Committee Chairman Sam Graves (R-MO) today issued the following statement after the U.S. Department of Labor reported that 244,000 jobs were created in April while the unemployment rate rose to nine percent:

“While any job creation is always welcomed news, we still have a long way to go as evidenced by today’s unemployment rate. The number of Americans who filed unemployment claims for the first time during the final week of April was the highest level since August of 2010, and the underemployment rate, which includes people who’ve stopped looking for work and those settling for part-time jobs, rose to 15.9% from 15.7% the previous month. These numbers shouldn’t be a surprise, as the Obama Administration continues to pursue anti-business policies that are especially damaging to small employers, who are the primary source of job growth in the United States. On top of this, high energy costs are making it increasingly difficult for small businesses to add employees and invest in their companies. The estimated 29 million American small businesses are the lifeblood of our economy and we must foster policies that allow them to prosper - not be crushed by higher taxes and more regulations.”

SBTDC offering course to help businesses broaden their markets

Northwest Missouri State University’s Center for Innovation and Entrepreneurship, in conjunction with Missouri Procurement Technical Assistance Centers and the University of Missouri Extension, is offering a three-hour course aimed at helping businesses broaden their markets.

“Winning Government Contracts: The First Steps” covers basic information every business owner should know before attempting to bid on government contracts at any level.

Topics of discussion will include background on government contracting, U.S. Small Business Administration size standards, marketing to the government, vendor registrations, government certifications, purchasing methods and Procurement Technical Assistance Center services.

The course will be offered from 1 to 4 p.m. Wednesday, April 20, at the Northwest Center for Innovation and Entrepreneurship, Room 1323, located at 1402 North College Drive in Maryville.

The fee for the course is $50 per person, payable in cash or check to MO PTAC.

For more information, contact Dr. Frank Veeman, senior regional director of the Small Business & Technology Development Center, at 660.562.1701 or fveeman@nwmissouri.edu.

The 46,679-square-foot Center for Innovation and Entrepreneurship is a mixed-use business incubator and academic research facility, featuring state-of-the-art research labs and office space. Along with programming specializing in nanotechnology, the CIE provides entrepreneurial support to students, faculty and area industries.

The Northwest SBTDC assists clients in 17 counties spanning from Atchison County, southward to Platte County and eastward to Livingston County. In addition to the regional office located on the Northwest Missouri State University campus, a Chillicothe office serves the eastern portion of the region, and a St. Joseph office serves the southern section.

McCaskill: Legislation will eliminate provision of healthcare law that overburdens small businesses

U.S. Senator Claire McCaskill is once again co-sponsoring bipartisan legislation to repeal the burdensome 1099 tax reporting requirement included in the healthcare law. The Small Business Paperwork Mandate Elimination Act, introduced by Senator Mike Johanns (R-NE), would eliminate the new requirement that businesses file forms to the IRS for every vendor with which they have at least $600 in transactions for purchases of goods. This provision created unnecessary costs and an unmanageable amount of paperwork for small businesses and has been one that both Republicans and Democrats quickly recognized needs to be changed.

“Removing this provision is an important way to support our small businesses as they focus on job creation, while opening a meaningful debate as to how we can improve our new healthcare law,” McCaskill said. “Because the law isn’t perfect, we can and will continue to improve parts to ensure it works for the American people.”

McCaskill has supported a repeal of the 1099 reporting provision that does not add to the deficit since last year, first cosponsoring a repeal provision offered by Senator Mark Begich (D-AK) and voting for a proposal by Senator Ben Nelson (D-NE). She also voted for a Johanns amendment that is identical to the newly proposed bill.

Understanding Financial Statements

Numbers on a Page…Ratios…Reports…Income Statements…Balance Sheets. At face value, these documents tell you what happened. However, they can also tell you how to make it happen again, or do it better the next time.

If you’re one of those business owners who have a bookkeeper or a CPA prepare their quarterly taxes for them, you won’t want to miss this financial management training event presented by the University of Missouri Extension.

“Understanding Financial Statements” is a three hour class designed for business owners, managers, and consultants who need to know how to turn financial statements into useful management tools. The class is taught by Tom Kelso, Business Development Specialist for the University of Missouri Extension in Northwest Missouri, and covers the basics found on the income statement and balance sheet and includes information on the various ratios critical to the financial management of a small business. Working through an actual case study will give you hands-on experience in understanding the story the numbers tell.

Cost for this three hour session is $39, and will be conducted at the Buchanan County Extension office, 4125 Mitchell Ave., from 8 to 11 AM, on May 20.

At the conclusion of the seminar, if you need additional assistance, you may arrange to meet with a business consultant.

For more information on how to register for “Understanding Financial Statements,” call: (660) 446-3724.

The Basics of Writing a Business Plan

Do you need cash to start or expand your business? Have you gone to the bank and been told you need a business plan to get a business loan? Are you unsure about what must go into a business plan or how to make it look professional?

Well, the University of Missouri Extension has a class which will show you how to put a business plan together. You will be shown the basic parts of a business plan and what a lending institution will be looking for in each of those sections. You will be shown how to make your business plan look professional, and how to avoid common mistakes when building your plan. Moreover, this seminar explains how your business plan can help you in the day-to-day operation of your business. As the name suggests, it is a PLAN for your business.

The cost for the three-hour session is $35, and will be held at the Holt County Extension Office(Courthouse Annex), 101 E. Missouri, Oregon, MO, on May 4th from 9 AM to 12 noon.

To register for “The Basics of Writing a Business Plan,” call The Holt County Extension Office at: (660) 446-3724.

MU Extension Offering, “Starting a Business: The First Steps” April 30, 2010 in St. Joseph

Many individuals have the dream and desire to someday own a business. Unfortunately, many of these same people don’t know where to start. Moreover, they are afraid to make that leap into entrepreneurship because they do not know enough about taxes, licenses, financing, and marketing. If this sounds like you, make plans to attend “Starting a Business: the First Steps,” a University of Missouri Extension seminar. The seminar will be 8:00 AM to 11:00 AM, April 30, 2010, at the University of Missouri Extension office, 4125 Mitchell Ave., St. Joseph, MO.

The instructor for the seminar is Tom Kelso, MU extension Northwest Region business development specialist. He will review the basics involved in starting your own business, explain the importance of planning, discuss the legal and regulatory requirements; and identify sources of funding, and steps which should be taken to market your product or service.

Pre-registration for the seminar is suggested either by calling or e-mailing Tom Kelso, MU extension business development specialist at 660-446-3724 or kelsot@missouri.edu,. The registration fee is $35 and payable when you attend the class.

At the conclusion of the seminar series, if you need additional assistance, you may arrange to meet with a business consultant through MU Extension.

Let us help you make your dream a reality. The MU extension seminar on “Starting a Business: The first Steps” will be 8:00 AM to 11:00 AM., April 30, at the University of Missouri Extension office, 4125 Mitchell Ave., St. Joseph, MO. Pre-registration is suggested. If you need special accommodations because of a disability, or if you need materials in an alternative format, please inform contact Tom Kelso, MU extension business development specialist at least two weeks prior to the seminar to make arrangements.

Learn about other business development offerings and resources at: http://www.missouribusiness.net/