Congressman Mike Michaud joined with his fellow Blue Dog Coalition members to roll out a plan aimed at providing small business owners the resources they need to grow their businesses and hire new workers. Specifically, the small business plan seeks to promote job growth by providing small businesses with increased access to capital through streamlined approval processes, lower interest rates on SBAExpress loans, increased access to government contracts, and the opportunity to lock in long-term, stable financing.

"We need to foster a pro-growth environment that allows our small businesses to thrive," said Michaud. "Our small businesses created the vast majority of new jobs in our country over the past decade, and their success is critical to our economic recovery. This package of commonsense initiatives is designed to extend the help our entrepreneurs need to grow their businesses and hire new workers."

An outline of the plan.

SBAEXPRESS

The SBAExpress program gives small business borrowers an accelerated turnaround time for SBA's review. Small businesses receive a response to their application within 36 hours. In addition, lower interest rates are often available to borrowers when they apply through an Express program.

Unlike traditional 7(a) loans, SBA Express loans carry a 50 percent guarantee and can be used as revolving lines of credit - to help restock inventories and support larger revenue sales - which are particularly critical for small businesses as they emerge out of the recession.

Maximum loan amount is $350,000. The Small Business Jobs Act temporarily increased the maximum to $1 million so more small businesses could take advantage of the streamlined approval process for working lines of credit and other capital they need. That increase ends on 9/26/2011.

PROPOSAL: Extend the $1 million max until December 31, 2012.

504 LOAN REFINANCING PROGRAM

Market research shows that a large percentage of commercial mortgages outstanding are set to mature within the next few years, particularly those held by community banks. As real estate values have declined, however, even small businesses that are performing well and making their payments on time can have a hard time refinancing these loans and may need to restructure their debt.

Under the Small Business Jobs Act, the SBA authorized a temporary program - until September 27, 2012 - allowing small businesses to refinance eligible fixed assets in its 504 program without requirement of an expansion, as is the case with typical 504 loans. This program provides small businesses the opportunity to lock in long-term, stable financing, as well as protect jobs.

PROPOSAL: Extend program for 1 year.

SMALL BUSINESS PROCUREMENT GOALS

It is the policy of the United States, as stated in the Small Business Act, that all small businesses have the maximum practicable opportunity to participate in providing goods and services to the government.

To ensure that small businesses get their fair share, the SBA negotiates annual procurement preference goals with each federal agency and reviews each agency's results. The SBA is responsible for ensuring that the statutory government wide goals are met:

• 23 percent of prime contracts for small businesses; (actual was 20.3% in 2010)
• 5 percent of prime and subcontracts for small disadvantaged businesses; (actual was 7% in 2010)
• 5 percent of prime and subcontracts for women-owned small businesses; (actual was 4.4% in 2010)
• 3 percent of prime and subcontracts for HUBZone businesses; (actual was 2.4% in 2010)
• 3 percent of prime and subcontracts for service-disabled veteran-owned small businesses (actual was 2.2% in 2010)

PROPOSAL: Amend Small Business Act to increase the small business procurement goals by 1% each