Republican Small Business Committee RSS Articles

Graves Statement on President Obama's Small Business Roundtable

Wed, 16 May 2012 04:00:00 GMT

House Small Business Committee Chairman Sam Graves (R-MO) today issued the following statement on President Obama’s roundtable discussion with small business owners and SBA Administrator Karen Mills:

“Poll after poll and survey after survey show that America’s small businesses are uncertain about the economic landscape of our nation made more unstable by the President’s policies. Even though the administration may tout their programs intended to help small firms, the majority of the President's policies have burdened them, including the health care law, the rate of over-regulation, the deficit-spending, and the constant threats of tax increases. In order to help small businesses, we must provide more stability and relief on issues like taxes, regulations, energy costs, and government spending. Over the last 18 months, the House has addressed these problems by passing more than two dozen jobs bills that are still awaiting Senate action. On the eve of National Small Business Week, I hope the President will call on the Senate to vote on those jobs bills and work with House Republicans on providing more certainty for America’s small business job creators.”

The week of May 20-26th will mark the 49th annual National Small Business Week, a time to recognize the contributions of small businesses to the economic well-being of America. Members of the Small Business Committee and the House Republican Conference will be holding small business events in their districts across the nation during this week.

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Committee Examines Small Business Participation in the U.S. Trade Strategy

Wed, 16 May 2012 04:00:00 GMT

The House Small Business Committee, led by Chairman Sam Graves (R-MO), today held a hearing to examine the role of small business in the U.S. Trade Strategy and the challenges that lay ahead for small businesses who want to enter the trade marketplace. The Office of the United States Trade Representative (USTR) testified on the status of current trade negotiations and the overall strategy to open new markets for United States goods and services.

“Small business plays an important role in our economy, and they should play a more important role in the U.S. trade strategy,” said Chairman Graves. “Considering the changing trade landscape that includes the new free trade agreements with Colombia, South Korea and Panama, we need to explore ways to help small businesses participate. During World Trade Month, it is important that American small firms are not forgotten about and left behind in the nation’s overall trade strategy. In order to help small firms excel in the global marketplace, we need to strengthen the coordination of the federal export promotion agencies and implement an aggressive trade strategy to open new markets, while combating unfair trade practices. I hope the Ambassador will work with me to improve the system for small business owners.”

This hearing comes a week after Chairman Graves and Subcommittee Chairman Scott Tipton introduced legislation that will help small firms enter the trade marketplace by simplifying the maze of federal export promotion agencies. The Export Coordination Act of 2012 (H.R. 5393) will require the Trade Promotion Coordinating Committee to better coordinate state and federal agencies to make the export process more efficient, while Rep. Tipton’s TRADE for Small Businesses and Jobs Act (H.R. 5513) will help companies better understand foreign regulations.

For related hearing documents, click here.

Notable Witness Quotes:

Thomas Crafton, President of the Thermcraft, Inc. in Winston Salem, NC said, “Small businesses tend to get lost in the process of trying to operate within the law and trying to ensure that every “T” is crossed and every “I” is dotted, instead of spending that time and money trying to increase export sales. The government wants small businesses to increase export sales but the system in place does not provide adequate assistance to get the job done. It is a constant struggle.”

Mark Luden, CEO of The Guitammer Company in Westerville, OH said, “With limited time and resources, small businesses tend to go with what is safe and proven. For many, the cost of understanding foreign compliance is too costly to absorb, and they simply do not have the resources to hire personnel dedicated to navigating the regulations. By simply creating an easily-accessible database of foreign regulations, the TRADE ACT will help provide small businesses with the confidence and knowledge they need to export to new markets.

“I commend Congress for its advocacy of free trade, and I urge you to seize every opportunity to open new markets and reduce tariff and non-tariff barriers. The future of the US economy – and that of America’s small businesses – depends on it.”

Robert B. Sinner, Partner and President of SB&B Foods in Inc., Casselton, ND said, “…small exporters face enormous competition and a web of regulatory constraints abroad. The export promotion programs are among the few tools that help American farmers promote U.S. commodities and remain competitive in the global marketplace. While the rapidly growing markets in the Asia Pacific region, led by China, are key drivers of U.S. soybean demand, there are significant barriers that we need to break down to meet increased demand for U.S. commodities in the region. We hope that the TPP free trade agreement is successful in making the regulatory systems of member countries more compatible so U.S. companies can operate more seamlessly in these markets, and help innovative, job-creating small- and medium-sized enterprises to participate more effectively in international trade.”

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Bloomberg Gov't: Measure to Dock Federal Executive Bonuses Weakened by U.S. Panel

Fri, 11 May 2012 04:00:00 GMT

Bloomberg Government: Measure to Dock Federal Executive Bonuses Weakened by U.S. Panel
By Nick Taborek
May 11, 2012

(Bloomberg) -- A U.S. congressional committee weakened a proposal that would have automatically eliminated the bonuses of top federal executives whose agencies missed targets for awarding contracts to small businesses.

The bonus-busting measure was proposed in January by Representative Sam Graves, a Missouri Republican who asked that it be incorporated in the House defense authorization bill.

The $554 billion military package approved yesterday by the House Armed Services Committee excluded the penalty. It instead incorporated a measure urging agencies to award 25 percent of all direct contracts to small companies, an increase from 23 percent. Executives would be evaluated based on their efforts to meet the target.

“We compromised on how to hold senior executives accountable,” Graves, chairman of the House Small Business Committee, said in an e-mailed statement.

The defense authorization bill requires that senior executives involved in acquisition be evaluated partly on how well they communicate “the importance of achieving the agency’s small business contracting goals.”

That language is “just as vague as everything else when it comes to small business programs,” said Brian Reeder, a spokesman for the Petaluma, California-based American Small Business League.

Missed Goals

Reeder said he was disappointed the defense panel didn’t include the bonus provision.

“We thought that docking bonuses for executives in the government was a perfect way to get them to really hit their goal,” he said in a telephone interview. “The problem with small business programs is no one is really held accountable for their goals and that’s why they don’t work.”

The U.S. government has missed its small business contracting goal each year for at least the past decade. Eleven of 24 agencies didn’t meet their goals in fiscal 2010, according to the Small Business Administration.

The Professional Services Council, an Arlington, Virginia-based group that represents about 350 contractors, said in a March letter that it opposed the bonus-eliminating bill.

Graves’ bill would prevent all senior government executives, even those who aren’t involved in acquisition, from receiving bonuses the year after their agencies miss targets for small-business contracting.

“It would be the equivalent of you not getting a bonus because one of your other colleagues wasn’t doing a very good job,” Roger Jordan, vice president of government relations at the Professional Services Council, said in a March interview.

Top Executives

The group also opposed raising the small business goal because it said the government doesn’t yet have a clear picture of how much work small businesses actually do for federal agencies, the organization said in its letter.

There were 7,893 senior executives in the federal government as of December 2010, according to a Congressional Research Service report published in April 2011. They include chief information officers and strategic advisers for intelligence and space programs.

The executives, who act as links between political appointees who lead federal agencies and the civil servants who staff them, earn between $119,554 and $179,700 a year and may be eligible for performance bonuses of as much as 20 percent of their salary.

A top-earning executive would be eligible for performance pay as high as $35,940. The maximum annual amount an executive is permitted to receive, including special recognition such as a Presidential award, is $230,700, according to the CRS report.

The full House will consider the defense legislation as early as next week.

The defense authorization bill is H.R. 4310. Graves’ bill is H.R. 3850.

Wall Street Journal: CEOs Press Congress on Debt

Fri, 11 May 2012 04:00:00 GMT

Wall Street Journal: CEOs Press Congress on Debt
Executives Step Into Deficit Debate Amid Fears of Looming Tax, Spending Measures
By Damian Paletta
May 11, 2012

WASHINGTON—Top business executives, many of whom sat on their hands during last year's frantic debate about raising the federal debt ceiling, have begun mobilizing and plan to be more vocal in urging Congress to reach a bipartisan deficit-reduction deal by the end of the year.

Executives have been meeting privately with lawmakers, urging them to start laying the groundwork now so they can reach an agreement after the November elections to avoid the large tax increases and heavy spending cuts scheduled to take effect in January. They worry those measures could tip the economy back into recession and create turmoil in financial markets, according to people who have attended some of the meetings.

J.P. Morgan Chase JPM +0.25%& Co. chief executive James Dimon hosted a lunch for several dozen chief executives and two U.S. senators late last month, one of the latest in a series of private meetings aimed at drumming up support for a political agreement.

Several executives left the J.P. Morgan lunch, held at the company's headquarters in New York, resolved to speak more forcefully in favor of a deal. Many believe both Democrats and Republicans will have to compromise on a deal that includes both tax increases and spending cuts, and several have pointed to the 2010 Simpson-Bowles deficit-reduction plan as a model Congress should begin working on immediately. Mr. Dimon, in public remarks last week, called for Republicans and Democrats to come together to enact such a plan. "We've got to get it done," Mr. Dimon said. "Our problem is we don't have the will. We can't seem to get our act together."

In separate initiatives, chief executives such as Laurence Fink of BlackRock, Terry Lundgren of Macy's Inc. M -0.58%and Mark Bertolini of Aetna Inc. AET -0.57%have told lawmakers over meetings and dinners they should start discussing a deal soon, people attending the meetings said.

The executives' efforts are nurtured, but not necessarily coordinated, by the Committee for a Responsible Federal Budget, a non-profit, bipartisan group urging deficit reduction which has brought chief executives to Washington to meet with lawmakers and urge them to act.

The CRFB recently finished drafting an 800-page bill, modeled on the 2010 package put together by the deficit-reduction commission headed by Republican Alan Simpson and Democrat Erskine Bowles, in hopes it can be a template for a deal later this year. That package includes some tax increases many Republicans resist and some cuts to Social Security that the White House and many Democrats opposed.

The corporate involvement is "an acknowledgment of the political reality that to get something done everyone is going to have to come together and get out of their boxes," said CRFB's president Maya MacGuineas.

Without a deal, the Bush-era tax cuts and this year's payroll-tax cut will expire at year's end, and about $1.2 trillion in spending reductions—half from defense programs and half from domestic programs—will take place over the next decade. Of those cuts, $98 billion are scheduled to take effect next year.

J.P. Morgan Chase—which Mr. Dimon announced Thursday has taken $2 billion in losses in the past six weeks stemming from derivatives bets gone wrong—has estimated the combination of the automatic spending cuts, tax increases and other measures would reduce gross domestic product by 2.75% next year. In a research note, the firm said the economy would go "head first into the fiscal meat grinder."

Members of both parties want to stop the spending cuts taking effect, but President Barack Obama and congressional leaders have said they won't make changes without some other deal to cut the deficit. And the two parties are at odds:Democrats want to use tax increases and spending cuts; many Republicans want to rely on cuts alone.

The House of Representatives on Thursday approved a Republican plan by a vote of 218-199 that would prevent the military cuts and make deeper cuts in antipoverty programs and some of the White House's signature domestic initiatives. But the legislation has virtually no chance of approval by the Democratic-controlled Senate, highlighting the standoff that is worrying the executives and many lawmakers.

Adding urgency to the discussions are credit-rating firms, which could downgrade U.S. government debt in the absence of a significant accord. Standard & Poor's officials haverecently held private talks in Washington with think tanks and others to discuss how U.S. leaders might address the deficit after the elections, people familiar with the meetings said. Standard & Poor's declined to comment.

S&P downgraded long-term U.S. debt last year after Congress's protracted debate over the government's borrowing limit. Another rating agency, Moody's, MCO -0.03%said last year that it could downgrade U.S. debt if "further fiscal consolidation measures are not adopted in 2013."

Lawmakers say the main hurdle to a deficit deal was "the polarization of the parties," recalled Mr. Bertolini of Aetna. "They said, 'the polarization is such that we can't step that far away from the party in an election year.' They know what needs to be done. They know how difficult it's going to be. They just prefer it happen some other time."

Virginia Democrat Mark Warner, one of the senators hosted by J.P. Morgan along with Saxby Chambliss (R., Ga.), said, "There is very little institutional support in this town for folks to get out of their fox holes. Maybe the business community can help give people some cover."

Some of the executives getting involved now think the business community erred last summer by not pressing harder for a swift resolution of the debt-ceiling debate.

Their efforts this year have not yielded progress on a deal so far, but have begun a dialogue. Participants in the meetings between lawmakers and executives describe an occasionally awkward dance between the corporate and political worlds. Many of the chief executives are used to issuing orders and getting things done, and some have come away from the meetings frustrated that lawmakers can't get in a room, agree on a deficit-reduction plan and then put it in motion. The lawmakers have explained that Congress isn't run that way and that trying to build agreement on polarizing issues like taxes and spending in an election year can be near impossible.

The dinners and meetings with business executives "are almost like interventions to get people off of their drunken spending sprees," said Rep. Jim Cooper (D., Tenn.), a frequent participant.

Mr. Cooper and Rep. Steve Latourette (R., Ohio) tried to advance a measure in the House modeled after Simpson-Bowles but it was defeated 382-38. A few days later, Senate Budget Committee Chairman Kent Conrad (D., N.D.) abandoned efforts to reach a budget agreement before the elections.

Now, some members of both parties, including House Budget Committee Chairman Paul Ryan (R., Wis.), have begun openly discussing finding ways to delay the tax increases for at least three or six months because they doubt there will be enough time between the elections and Jan. 1 to reach any sort of substantive deal.

The shape of any post-election deal would likely be influenced by the outcome of the November vote, which has led both parties to hold back on substantive bipartisan talks. But the business executives and lawmakers involved in the effort said Congress can't wait until after the election to start looking at options.

Committee Examines Effect of High Gas Prices on Small Business

Wed, 09 May 2012 04:00:00 GMT

The House Small Business Committee, led by Chairman Sam Graves (R-MO), today held a hearing to examine the relationship between high fuel costs and small businesses. Persistently high gasoline prices and the volatility of the oil market are draining family budgets and putting increased stress on small businesses. According to a recent survey by the Small Business and Entrepreneurship Council, 72 percent of small businesses report they are affected by high energy prices. Of these businesses, 41 percent report that they have altered hiring plans and another 22% report reducing employee hours because of high energy costs.

“Small businesses are the historic source of new job creation in the economy, but are currently facing many challenges, including the burden of high fuel prices,” said Chairman Graves. “While it is good to see the price of gasoline falling in recent weeks, $3.75 per gallon gas is nothing to celebrate, especially considering it was under $2 per gallon a few years ago. Oil is a volatile commodity and gas prices will go back up, it’s just a matter of time. It is important to have hearings like this to discuss the need to increase domestic supplies before we are facing $4 gallon gas again. Small businesses need certainty to run their businesses, hire more employees, and plan for the future, and they can’t do that if they are consistently subject to the volatile global oil market.”

For related hearing documents, click here.

Notable Witness Quotes:

Ms. C. Cookie Driscoll, Owner of C. Cookie Driscoll, Inc., in Fairfield, PA said, “…we believe that any energy or environmental policy should have five primary objectives: ensure clean air and water; promote adequate and affordable energy; end U.S. reliance on foreign energy; simplify regulatory requirements and accelerate the approval process; and support federal energy research dollars for small firms. I beg of you to please keep in mind that the impact of rising and volatile gas prices is not isolated to a horse farm. Cattle farms, pig farms, and even poultry operations are dramatically affected by the price of fuel just like I am. These costs go so far beyond the cost of transporting the livestock.”

Robert McNally, President of the Rapidan Group, LLC in Bethesda, MD said, “Small businesses are the powerhouse of the US economy. Rising oil prices hurt them directly by increasing input costs, such as fuel, and reducing the purchasing power of their customers. And higher fuel prices feed into higher prices of many goods and services, including food and materials. These wholesale cost increases get passed along to small businesses, who must then contend with difficult choices as to whether to absorb or pass them along.

“It would be easier for small businesses to adapt to higher oil prices if they were stable. Gyrating oil prices are even worse because they increase uncertainty about future fuel costs and sales prospects, which can delay decisions on hiring and expansion. The main challenge facing small businesses and the US economy is not high oil prices, but gyrating ones.”

Jamie Smith, Franchisee, Mr. Rooter Plumbing in Baltimore, MD, said “My current fleet of five service vehicles uses a combined total of 1,200 gallons of gasoline per month, which equates to approximately 10% of my revenue. To alleviate this burden on my business and all small businesses, I ask that American policymakers immediately invest our tax dollars in strategies for increased energy production, conservation of our existing resources and promoting alternative energy options like natural gas and hybrid electric vehicles.”

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Graves & Tipton in the Washington Examiner: Red Tape Is Strangling America's Energy Supply

Tue, 08 May 2012 04:00:00 GMT

Red Tape Is Strangling America's Energy Supply
By Chairmen Sam Graves & Scott Tipton
May 8, 2012

As loudly as American families are demanding refuge from economic burdens like high gas prices, small businesses are now chiming in as well. Persistently high energy costs are forcing owners to reduce hiring and cut back on employee hours.

According to the National Federation for Independent Business, one in 10 business owners says energy is his or her single greatest cost, ranking it ahead of wages, materials and other investments that help companies thrive. Another 25 percent claim it as the second or third biggest expense.

Congress should be looking for ways to provide relief from the burden of high energy costs with policies that promote development of all available energy sources. By expanding access to traditional domestic resources, as well as promoting exploration of innovative energy resources, we can help reduce energy costs and ensure abundant American resources for years to come.

The lingering threat of an energy crisis needs to serve as a catalyst for America to begin exploring more domestic solutions. The only thing stopping us now is miles and miles of red tape.

During a Small Business Subcommittee hearing on innovative energy solutions several weeks ago, Ralph Tommaso, CEO of Greenworks Holdings in Bethlehem, Pa., said, "There are layers of regulations and laws at the federal, state, county and town level. Small businesses need stable policies with reasonable time frames for permits and approvals."

While the president repeatedly claims that he supports an "all-of-the-above" approach to reducing energy prices and enhancing our energy security, his actions demonstrate the opposite. The president's rejection of the Keystone XL pipeline is an example of this, but even more significant is his refusal to lease vast onshore and offshore federal lands for oil exploration and development. In 2007, the U.S. Energy Information Administration projected total 2010 U.S. oil production on federal lands to be 850 million barrels. But actual production was only 714 million barrels -- 16 percent below the projection.

Recent regulations issued by the Bureau of Land Management (BLM) present challenges for energy producers who are trying to begin drilling. Particularly daunting is the lengthy processing time imposed upon permit applicants. At a March hearing, Tim Barber of the Yates Petroleum Corp. in Gillette, Wyo., told the Subcommittee that the process for BLM's Application for Permit to Drill a first well should take about 90 to 120 days. In his experience with BLM, applicants regularly wait two years for a permit, with some waiting up to 5 or 6 years.

Even after obtaining the BLM Application for Permit to Drill, companies have still not reached the end of the regulatory wringer. They are still subject to more provisions and stipulations. At any time, Conditions of Approval, or COAs, can be tacked onto the issued permit by BLM, making it that much harder for producers to get final approval. The biggest problem with impending provisions, COAs and other unforeseen roadblocks is that they create uncertainty among operators. Without a set schedule, businesses find it very difficult to create accurate financial projections or long-term road maps. This uncertainty has driven some small producers out of the business altogether.

Waiting on the sidelines, ready to work, small firms need the government to act quickly to clear regulatory roadblocks. The weight of the BLM's regulatory regime is making small energy producers unable to sustain work. Thus, energy small businesses and their contractors suffer, domestic resources remain idle and gas prices remain high.

Our government needs to do everything possible to unlock these federal lands and streamline the cumbersome processes of obtaining permits to drill. If we don't, small businesses will lose out on producing opportunities and non-energy businesses will continue to be burdened by high gas prices.

Rep. Sam Graves, R-Mo., is chairman of the House Small Business Committee, and Rep. Scott Tipton, R-Colo., is chairman of the Small Business Subcommittee on Agriculture, Energy, and Trade

Graves & Tipton Introduce Small Business Trade Legislation

Mon, 07 May 2012 04:00:00 GMT

House Small Business Committee Chairman Sam Graves (R-MO) and Small Business Agriculture, Energy and Trade Subcommittee Chairman Scott Tipton (R-CO) will today introduce legislation that will strengthen the coordination of the federal export promotion agencies and help more small businesses export. Although 95 percent of the business purchasing market exists outside the U.S., many small firms do not have the resources and personnel to utilize these opportunities, and rely heavily on federal and state agencies for assistance. This legislation comes as the United States celebrates World Trade Month during the month of May.

The Export Coordination Act of 2012, introduced by Graves, will increase coordination between state and federal agencies to make the export process more efficient, while reducing duplication and wasteful spending of federal trade promotion agencies. Currently, there are over 20 federal agencies that can assist with some or all of the steps in the export process. The Transparent Rules Allow Direct Exporting (TRADE) for Small Businesses and Jobs Act, introduced by Tipton, will help small businesses increase their exports and enter new markets by better understanding foreign regulations. Both pieces of legislation have been evaluated by the CBO to have no cost.

“Now that the free trade agreements with Colombia, South Korea and Panama are close to all being implemented, we need to encourage more small businesses to export,” said Chairman Graves (R-MO). “If a company doesn’t know how to export, they can’t take advantage of the lower tariffs provided by these agreements to increase their sales and hopefully hire new employees. Ninety-seven percent of identified U.S. exporters are small businesses, yet that only represents a small fraction of those who could compete globally – there is great untapped potential.”

“The Export Coordination Act will help small businesses start or increase their exports by strengthening the coordination of the federal export promotion agencies and establish stronger congressional oversight of such programs, all without any cost to the taxpayer. Many of the federal assistance trade programs overlap and offer duplicative services, including mirroring the same efforts as many individual state trade offices. With one percent of small businesses exporting, these agencies need to work in unison with the states to help assist as many small firms as possible. This legislation is a major step in improving the coordination between federal and state export promotion activities and ensuring that taxpayer money is being used most efficiently.”

“Navigating the export process can be complex and confusing for small businesses, and many simply do not have the time and resources to deal with it,” said Chairman Tipton. “Like the United States, foreign countries have a variety of rules, many of whom are not transparent or easy to understand. These rules and regulations can change daily, making it difficult for a small business to stay up-to-date on the current compliance regulations. In an effort to help small firms increase their exports, the TRADE for Small Businesses and Jobs Act would direct the pertinent agencies to monitor and collect up-to-date information on tariff and non-tariff laws, regulations, and practices. It will then be presented in a clear and easy-to-read format, and will serve as a resource for businesses looking to enter a new market.”

Export Coordination Act of 2012:
• To help exporters know where to go, the Export Coordination Act will direct the Trade Promotion Coordinating Committee (TPCC), through the National Export Strategy, to clearly outline the role of each agency in each part of the export process (Sec.3).
• The Export Coordination Act will direct the TPCC to coordinate with member agencies to provide a detailed listing of current and future Federal and State-led trade missions, trade fairs, and related activities (Sec.2).
• The Export Coordination Act will encourage stronger coordination with state trade agencies. The TPCC shall include one or more representatives from the State Trade Agencies (SIDO, NGA, etc.). This position will be selected by the President (Sec.4).
• The Export Coordination Act will create stronger congressional oversight by directing the TPCC to review the proposed annual budget for each federal trade promotion agency and provide their recommendations based on their assessment. It will be submitted to Congress, along with the strategic plan. In addition, the Inspector General of the U.S. Department of Commerce will prepare an annual report on the TPCC’s ability to carry out its duties. Both the TPCC report and IG report will be submitted to multiple committees of jurisdiction (Sec. 6).

TRADE for Small Businesses and Jobs Act:
• The TRADE for Small Businesses Act will help small businesses increase their exports and enter new markets by helping companies better understanding foreign regulations.
• The TRADE for Small Businesses Act will provide a one-stop source to monitor changes in foreign regulations and trade barriers.

The Small Business Committee has held several hearings on trade barriers for small business. A full committee hearing titled, “Help Wanted: How Passing Free Trade Agreements Will Help Small Businesses Create New Jobs” was held on April 6, 2011 and a hearing titled, "Bureaucratic Obstacles for Small Exporters: Is our National Export Strategy Working?" was held on July 27, 2011. The Small Business Subcommittee on Agriculture, Energy and Trade held a field hearing in Pennsylvania titled, “Impact of U.S. Trade Policies on Small Businesses and Manufacturing” on April 2, 2012.

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Committee to Hold Hearing on the Threat of High Gas Prices to Small Business

Fri, 04 May 2012 04:00:00 GMT

Week Ahead for the Committee: May 7-11

Committee to Hold Hearing on the Threat of High Gas Prices to Small Business

WASHINGTON, DC— On Wednesday, May 9, 2012, at 1:00 p.m. the Committee on Small Business will conduct a hearing titled Running on Empty: The Effects of High Gasoline Prices on Small Businesses.

Persistently high gasoline prices are draining family budgets and putting increased stress on small businesses. According to a recent survey by the Small Business and Entrepreneurship Council, 72 percent of small businesses report they are affected by high energy prices. Of these businesses, 41 percent report that they have altered hiring plans and another 22% report reducing employee hours because of high energy costs. Small businesses are the historic source of new job creation in the economy, but are currently facing many challenges, including the burden of high fuel prices, that inhibit their ability to invest, grow and hire new workers. The hearing will study the relationship between high gasoline prices and small businesses.

“Small businesses often operate on razor thin margins and simply cannot withstand the increase in operating costs that rising gas prices bring,” said Chairman Sam Graves (R-MO). “The price of gas can have devastating effects on small businesses, whose success or failure will, in turn, greatly affect our economy. This hearing will serve as an opportunity to examine how to best protect the health of both economies from the weight of soaring energy prices."

Hearing Details

Wednesday, May 9, 2012, 1:00 p.m.
2360 Rayburn House Office Building
Small Business Committee
Running on Empty: The Effects of High Gasoline Prices on Small Businesses

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Graves and Tipton Applaud the Reversal on DOL Youth Labor Rule

Fri, 27 Apr 2012 04:00:00 GMT

Graves and Tipton Applaud the Reversal on DOL Youth Labor Rule

WASHINGTON, DC—House Small Business Committee Chairman Sam Graves (R-MO) today issued the following statement in response to the Department of Labor’s reversal of its harmfully intrusive rule on youth labor on family farms:

“This Committee has worked hard to highlight the negative consequences of nonsensical rules including those proposed by the Department of Labor to restrict our youth’s ability to work on family farms. It appears our oversight has yielded some positive results as the Department of Labor is finally abandoning efforts to further regulate the industry. Having grown up on a farm, I understand how important they are to rural communities and what this proposed rule would have meant to their way of life. Restricting family chores and a child’s ability to learn the trade of their parents by regulation is a primary example of agency overreach and I will continue to provide the necessary checks and balances to ensure similar efforts fail.”

“After much pressure from Congress and agriculture producers, the Department of Labor has announced that it will pull the proposed rule, which would have restricted youth from on-the-job learning, the ability to participate in 4-H programs, and to do chores on the family farm,” said Small Business Subcommittee on Agriculture, Energy and Trade Chairman Scott Tipton (R-CO). “This is a tremendous victory for common sense. I applaud the Department of Labor for coming to its senses and joining Congress in support of farming and ranching families across America.”

On February 2nd, Small Business Subcommittee on Agriculture, Energy and Trade Chairman Scott Tipton (R-CO) held a hearing on the effects of this rule and encouraged the Department of Labor to pull it.

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Tipton Examines Small Business Innovative Energy Solutions

Thu, 26 Apr 2012 04:00:00 GMT

House Small Business Agriculture, Energy and Trade Subcommittee Chairman Scott Tipton (R-CO) today held a hearing to examine innovative ways small businesses contribute to energy production. Specifically, the Subcommittee focused on advanced biofuels, such as cellulosic ethanol, and new innovative technologies small companies have developed to produce energy from previously unused materials.

“Today’s hearing was on a topic of significant importance for our nation,” said Chairman Tipton. “Economic prosperity in the United States is closely tied to the availability of reliable and affordable supplies of energy. In recent years, we have seen energy prices skyrocket. You only need to fill your gas tank, or pay your home heating bill to realize how much more you are paying for energy now than just 10 years ago. This puts tremendous strain on American families, small businesses, and farms. In order for us to take steps forward, we must acknowledge the role of innovative small businesses in reducing our dependence on foreign sources of energy and developing new ‘homegrown’ energy solutions right here in our own communities.”

For related hearing documents, click here.

Notable Witness Quotes:

Jerry Taylor, President and CEO of MFA Oil and Co-founder of MFA Oil Biomass in Columbia, MO said: “Our farmer-owners see incredible opportunities as this endeavor takes off. They recognize the potential to offer America’s rural communities permanent manufacturing jobs, a new cash crop for farmers, a local source for green hearing, renewable liquid fuel sources, biobased chemicals, green building materials, water treatments systems, soil reclamation systems, and consumer packaging.”

Michael McAdams, President of Advanced Biofuels Association in Washington, DC said, “…the advanced biofuels industry is extremely innovative and has moved rapidly over the last five years. We believe we can and should be a fundamental part of an American energy policy that adopts a portfolio approach. [We] are already starting to see advanced biofuels delivering on its promise of creating new jobs, and helping to strengthen our nation’s economic and energy security.”

Ralph Tommaso, CEO and Head of Business Development at Greenworks Holdings in Bethlehem, PA said, “Running a business is tough. There are layers of regulations and laws at the Federal, state, county and town level. Small businesses need stable policies with reasonable time frames for permits and approvals. Our main challenge is regulatory uncertainty and the fluctuating and more often than not tightening policies under the Renewable Fuel Standard 2.

“Biofuels represent a potentially cost effective way for the manufacturing industry to reduce harmful emissions, thus saving manufacturing jobs while simultaneously creating and preserving jobs in the biofuels industry.”

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