The Democratic Party:

Fueling America’s Small Business Growth Engine


Printable Talking Points on Honorable Military Service

How does the federal Small Business Administration define a small business?
Small Business by the Numbers

 

“We know that the foundation of our economy is the small business…

We have to give our small businesses and their employees the help they need."

Presumptive Democratic Nominee John Kerry

Kerry Wants Health Care Reform for Small Businesses


Small Business Finds True Business Partner in Democrats, not George W. Bush more Small Business Finds True Business Partner in Democrats, not George W. Bush less

Under the Democratic leadership of President Bill Clinton, America’s small businesses found a real partnership in the United States federal government. The Clinton Administration partnered with the federal Small Business Administration to leverage the power of America’s small businesses-America’s entrepreneurs. As a result, small businesses created 75% of 22 million net new jobs created under the Democratic stewardship of the Clinton Administration. In contrast, George W. Bush betrays America’s small business community. Rather than fueling our economy by helping the number one job- creating sector, small businesses, Bush’s first budget proposed gutting the Small Business Administration by 40%. In 2004, Bush continues betraying America’s small business owners and employees. As a result, the Republicans continue to weaken America’s economy because it fails to fuel America’s small business growth engines.


“I'm here to herald the small businesses which are the strength of the economy of the United States of America.”

      George W. Bush

President Bush Discusses Economy, Small Business in Wisconsin



That’s What Bush Says … It’s NOT What Bush Does.



BUSH BETRAYS AMERICA’S SMALL BUSINESSES more BUSH BETRAYS AMERICA’S SMALL BUSINESSES less
    For 2002, Bush Proposed 40% Cut in Small Business Administration's Budget more For 2002, Bush Proposed 40% Cut in Small Business Administration's Budget less

    For fiscal year 2002, “Bush …propos[ed] a 40 percent cut in the Small Business Administration's (SBA) budget, eliminating the New Markets Venture Capital program and ending government subsidies for the SBA's flagship 7(a) loan program by raising loan fees. The SBA's proposed $539 million budget for fiscal 2002 also calls for the nation's 1,000 Small Business Development Center locations to begin charging fees for their consultation services. In addition, the Bush budget eliminates BusinessLINC, a new mentoring program for small businesses in low-income areas.” [“Bush Eyes Massive Cuts in SBA Budget,” Triangle Business Journal, March 12, 2001]

     

    "Making it more difficult for small businesses to get the credit and services they need is flat wrong," says Sen. John Kerry, D-Mass., the ranking Democrat on the Senate Small Business Committee. [“Bush Eyes Massive Cuts in SBA Budget,” Triangle Business Journal, March 12, 2001]

     

    [T]he New Market Venture Capital and BusinessLINC programs are eliminated.…Damon Dozier, director of government affairs for National Small Business United, fears increased fees for 7(a) loans would make them too expensive for some small businesses, which "begins to fly in the face of the purpose of the program." [“Bush Eyes Massive Cuts in SBA Budget,” Triangle Business Journal, March 12, 2001]



    For 2005, Bush Proposes Eliminating Successful Loan Program for America’s 23 Million Small Businesses more For 2005, Bush Proposes Eliminating Successful Loan Program for America’s 23 Million Small Businesses less

    For 2005, the budget zeroes out subsidy funding for Section 7(a) general business guaranteed loans, a program run by the SBA. While the budget provides a total Section 7(a) loan volume of $12.5 billion - a $3 billion increase from 2004 - it eliminates federal funding and assumes instead that the program will be funded entirely through a sharp increase in loan fees. This will raise costs for small businesses. [“Budget in Brief: Bush Budget Cuts Services for Small Businesses,” House Budget Committee Democratic Caucus, February 27, 2004]


    Background on the 7(a) Program Changes

    “On January 6, when the President’s fiscal year 2004 budget came up short -- as warned by Congress and the lending community -- the Administration abruptly and unnecessarily shut down the 7(a) guaranteed small business loan program. The program reopened on January 14, 2004 with severe restrictions aimed at limiting loan volume. Since then, the Administration has run the program at a token level with a $750,000 cap on all loans and elimination of all combination, or so-called “piggyback” loans. This has greatly disrupted and restricted access to capital for thousands of small businesses. The Administration has refused requests from Democratic Senators that it seek additional funding and has also refused to honor loan applications from as many as 1,500 small businesses, filed before the shutdown for amounts exceeding the cap, preventing about $600 million in loans from being invested in local economies. Because of the Administration’s unwillingness to correct its budget miscalculation and program mismanagement by requesting supplemental funding for the program or by reprogramming existing funds, the bill relies on 7(a) lenders to carry the additional costs." [Kerry Responds to SBA’s Legislative Proposals]



    Only 3% of $350 Billion Tax Cut Went to Small Businesses more Only 3% of $350 Billion Tax Cut Went to Small Businesses less

    [“I]n the administration's most recent $350 billion tax cut - the cornerstone of their economic strategy, just 3 percent of it went to small businesses….[T]hey are set to expire.” - Honorable Nydia M. Velazquez, (D-NY)

    Ranking Democrat, House Small Business Committee

    [“End of Year Report 2003,” Press Statement, December 8, 2003]



    Bush Proposed Gutting Small Business Help While Proposing Giving Massive Taxpayer Dollars to Big Companies more Bush Proposed Gutting Small Business Help While Proposing Giving Massive Taxpayer Dollars to Big Companies less

    At the time Bush proposed gutting the SBA budget, Republicans proposed “some $25 billion in immediate tax rebates to large profitable corporations that paid the low-rate ’alternative minimum tax’ over the past decade and a half because loopholes cut their regular income tax bills to little or nothing. Some $7.4 billion of these corporate rebate checks would be made out to just 16 tax-avoiding Fortune 500 companies-each of which would get more than $100 million in rebates. (These companies reported a total of more than $42 billion in pretax U.S. profits last year.)” [“House GOP ‘Stimulus’ Bill Offers 16 Large, Low-Tax Corporations $7.4 Billion in Instant Tax Rebates,” Citizens for Tax Justice, October 26, 2001]


16 Corporations with More than $100 Million in AMT Credit Carry-forwards at the

End of 2000

Company

 

 

AMT Rebates under the House

GOP Tax Bill,

$MILLIONS

IBM

$1,424

Ford Motor Co.*

1,000

General Motors

833

General Electric

671

TXU (Texas Utilities Company)

608

DaimlerChrysler**

600

Chevron Texaco

572

UAL (United Airlines)

371

Enron

254

Phillips Petroleum

241

AMR (American Airlines)

184

IMC Global

155

Comdisco

144

CMS Energy

136

Westvaco

112

Kmart

102

Total, these 16 Companies

$7,407

Source: Corporate Annual Reports for 2000, except as noted.

*As disclosed by Ford to the Detroit News, Oct. 26, 2001.

**As reported by DaimlerChrysler to Automotive News Citizens for Tax Justice, Oct. 26, 2001 (added Ford & Kmart)

[Citizens for Tax Justice, October 21, 2001]




DEMOCRATS: REAL PARTNERS WITH AMERICA’S SMALL BUSINESSES more DEMOCRATS: REAL PARTNERS WITH AMERICA’S SMALL BUSINESSES less

KERRY: LEADERSHIP THAT FUELS AMERICA’S SMALL BUSINESS ENGINE! more KERRY: LEADERSHIP THAT FUELS AMERICA’S SMALL BUSINESS ENGINE! less