SBA Echoes U.S. Chamber Recommendation For More Small Business Exports

The Small Business Administration plans to focus on increasing the number of small businesses who export goods and services in 2010 -- a key recommendation of the U.S. Chamber’s job creation plan.

In a December 14 speech at the National Press Club, Small Business Administrator Susan Mills said she is leading an interagency group focused on increasing the number of small business exporters and the number of countries they ship to.

Mills pointed out that while small businesses account for more than $500 billion in export sales last year, they only make up 30% of total exports. In addition, most of those exporters only export to one country.

The administration is also seeking to expand on provisions contained in a $787 billion economic stimulus package signed into law by President Obama in February, including a complete elimination of capital gains taxes on small business investment along with an extension of “carryback” provisions that allow small businesses with a net operating loss to “carryback” that loss over five years. The president is also proposing a short-term tax incentive to encourage small businesses to hire more employees.

Mills said her agency will also ask Congress to waive fees and increase the guarantees for SBA-backed loans to a maximum of $5 million, up from the current $2 million.

“These steps will help address the continuing struggle of small businesses to get the loans they need to start up and grow,” Mills said. “There's no reason we can't meet that demand and help small business owners create more jobs.”

The U.S. Chamber is calling on the administration to stimulate the economy and create jobs by increasing the resources available to small and medium-sized businesses that are interested in engaging in international trade. In January, the Chamber presented the administration with its 14-point International Engagement plan, which included a recommendation to double the $335 million appropriated for export assistance to small and medium-size companies.

The Chamber is urging Congress to approve free trade agreements (FTAs) with Colombia, Panama and South Korea -- agreements that have already been successfully negotiated and favor the United States. A Chamber analysis shows that passage of the FTAs would boost U.S. exports by more than $42 billion within five years--providing jobs and economic growth at a time when America needs both.

The Chamber has also supported expanding the net operating loss carryback and changes to the SBA’s 7(a) and 504 loan programs to allow small businesses to take advantage of dramatically reduced borrower and lender fees.

Read the Chamber’s plan for international engagement and job creation. http://www.uschamber.com/assets/international/09intlengagement.pdf