Issues
With deep roots in their communities, small businesses and their employees are the engine driving the American economy—creating 2 of 3 new jobs and employing nearly half the country’s private workforce. Democrats on the Committee on Small Business & Entrepreneurship are working to level the playing field for small businesses and set conditions that help make starting and growing a small business not only easier, but possible.
Access to Capital
For America’s Main Street businesses, having access to capital means the difference between hiring or layoffs. The committee is working to ensure that the Small Business Administration’s (SBA) key lending programs are working to provide small businesses with a range of financing options to start or grow their business.
Broadband
Online tools enable small businesses to reach new customers and break down traditional barriers to selling products. Unfortunately, large portions of the United States do not have access to reliable, high-speed broadband. To remain competitive and bring the global market within their reach, high-speed internet—particularly in rural communities—is a vital tool for small businesses.
Contracting
The U.S. government is the world’s largest buyer of goods and services. While the federal government spends billions of dollars buying from small businesses each year, not enough of those contracts are reaching small businesses, especially in rural areas that would disproportionately benefit from the chance to compete. The committee is working to advance legislation and with SBA to expand contracting opportunities for small businesses in communities facing a persistent lack of economic investment and chronic underemployment as well as minority, women and veteran-owned small businesses.
Counseling and Training
Disaster Assistance Programs
Americans recovering from a natural disaster cannot wait for bank loans or traditional sources of financing before rebuilding their businesses. Neither can American consumers who depend on their goods and services to get their lives back on track. SBA’s Disaster Assistance program provides low-interest loans to small businesses, homeowners and renters to support long-term recovery after a disaster strikes.
Entrepreneurs with Disabilities
Healthcare
In the face of rising health care costs, both self-employed and small employer businesses struggle to access affordable, quality health care coverage for themselves and their workers. While the Affordable Care Act (ACA) has had a positive impact across America, it needs commonsense repairs and strengthening to enable expanded access to health coverage for small businesses.
Innovation, Research & Development
Small businesses are key to driving the innovation that will lead to job creation and economic growth. In fact, they produce 16 times more patents per employee than large businesses and universities and employ nearly 40 percent of America's scientists and engineers. To achieve key government research and development objectives, federal agencies partner with innovative small businesses through the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. Across the federal government, SBIR and STTR award more than $3 billion to small businesses each year. SBIR was reauthorized for three years in 2022.
Minority Entrepreneurs
The number of businesses in minority communities continues to grow, adding to America’s competitive advantage and unleashing economic potential. According to the 2022 Annual Business Survey (ABS), which covers reference year 2021, there were approximately 5.9 million employer firms in total, of which, 1.2 million (21%) were minority-owned. The Committee is working to increase opportunities to help minority entrepreneurs start and grow their small businesses including through increasing access to capital, opening up more contracting opportunities, and providing entrepreneurial services in more communities.
Taxes
The tax code is in desperate need of reform. It is too long, too complex, and it creates a burden for small businesses across America. For entrepreneurs, time is one of their most valuable resources. Every hour spent filling out forms or navigating confusing tax rules is an hour they don’t spend marketing their products or thinking about how to grow their business. The committee supports increasing tax assistance and resources for small businesses so they can focus on what they do best: creating jobs and growing the economy.
Trade
Exporting and e-commerce represent a tremendous opportunity for America’s small businesses. The committee oversees SBA's State Trade Expansion Program (STEP) that helps small businesses prepare for new markets, access export financing and attend trade missions. The STEP program was made permanent in the Trade Facilitation and Enforcement Act of 2015. The committee also supports leveling the playing field for small businesses by making sure they are considered as part of future trade agreements.
Veteran-owned Enterprises
As brave American men and women serve around the world, the committee recognizes the economic hardships that small businesses endure when their owners and key employees are deployed. The committee oversees SBA’s veteran programs including the nationwide system of Veterans Business Outreach Centers (VBOCs) that help transitioning service members, veterans and military spouses looking to start, purchase or grow a business.
Women Entrepreneurs
Women-led small businesses help boost economic growth and create jobs. From 2019 to 2023, the growth rate of women-owned businesses outpaced the growth rate of men-owned businesses by 94%. This dramatic growth is encouraging but happening in spite of institutional barriers faced by women entrepreneurs. The committee oversees SBA’s programs that help women-owned businesses including the nationwide system of Women’s Business Centers (WBCs) that provide free, to low-cost counseling and training and focus on women who want to start, grow, and expand their small business.