Campaign Promises

Other/Miscellaneous -> Independent Organizations -> SBA


ItemIndependent Organizations
SBAGrade
IO-67
The Promise: "Obama and Biden will work to help more entrepreneurs get loans, expand the network of lenders, and simplify the loan approval process."
When/Where: Obama-Biden Plan for Small Businesses, dated 09/11/08.
Source: http://obama.3cdn.net/18bdb8988efb99208a_vtt5mvfkt.pdf
Status:On 03/16/09, Obama announced plans to facilitate credit applications by small businesses by increasing the percentage of loans backed by the U.S. Government (via the SBA) from 75% (over $150,000) or 85% (under $150,000) to 90% across the board, as well as waiving certain fees for SBA-backed loans.

This was codified in the Small Business Jobs Act of 2010 (H.R. 5297) signed into law by President Obama on 09/27/10. Under Section 1206(e) of this law, the network of lenders was expanded by the entry "Any lender that is participating in the Delegated Authority Lender Program of the Export-Import (Ex-Im) Bank of the United States...shall be eligible to participate in the Preferred Lenders Program."

This act also simplified, to some extent, the loan approval process.

In 06/15, Congress decided not to renew the the 70-year old charter of the Ex-Im Bank to ccontinue extending new loans. The bank will continue, however, to service the $110 billion in loans already extended.

Nonetheless, the original intent of this promise has been fulfilled.
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IO-68
The Promise: "Strengthen Small Business Administration programs that provide capital to minority-owned businesses, support outreach programs that help minority business owners apply for loans, and work to encourage the growth and capacity of minority firms"
When/Where: Obama-Biden Plan for Small Businesses, dated 09/11/08.
Source: http://obama.3cdn.net/18bdb8988efb99208a_vtt5mvfkt.pdf
Status:The American Recovery and Reinvestment Act of 2009 provided $730M to the SBA and made changes to the agency's lending and investment programs so that they can reach more small businesses, including minority-owned businesses. The normal budget for the SBA was increased by $3B to $28B in FY2010 over $25B in FY2009. The FY2010 $28B level for small business financing and loan programs is expected to be maintained for FY2011 according to the SBA's and the President's FY2011 budget request.

In Section 4103 of the Small Business Jobs Act of 2010 (H.R. 5297) signed into law by President Obama on 09/27/10, a subparagraph entitled "Outreach to Minorities, Women, and Veterans" calls for institutions receiving capital investments under the program to provide "linguistically and culturally appropriate outreach and advertising in the applicant pool describing the availability and application process of receiving loans."

Promise fulfilled.
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IO-69
The Promise: "Will support entrepreneurship and spur job growth by establishing a small business and micro-enterprise initiative for rural America."
When/Where: Obama-Biden Plan for Small Businesses, dated 09/11/08.
Source: http://obama.3cdn.net/18bdb8988efb99208a_vtt5mvfkt.pdf
Status:The American Recovery and Reinvestment Act signed into law on 02/28/09 recognizes and improves support to the nation's small businesses. Included in this Act was $6.9B in discretionary appropriations for "rural development activities such as...rural business programs..."

President Obama's FY2010 budget submission of 02/21/09 proposed $20B in loans and grants "to support and expand rural development activities, including small businesses...". Of this amount, $61M was proposed for "microentrepreneur" assistance programs, $250M for rual America development of renewable energy, and $70M for rural revitalization, education and land grant programs, to name a few.

The President's FY2011 budget proposal for the Department of Agriculture goes further by supporting the USDA's Rural Innovative Initiative under a $2.6B line item for rural development.

While this is all good, what's missing is the specific establishment of a "small business and micro-enterprise" program for rural America. The opportunity to establish the promised program surfaced under the Small Business Jobs Act of 2010 (H.R. 5297) signed into law on 09/27/10 by President Obama. This did not happen.

This promise has not been fulfilled.
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IO-70
The Promise: "...would direct the Small Business Administration to amend regulations under the Small Business Act that provide preferences in federal contracting to small businesses owned by members of socially and economically disadvantaged groups to include individuals with disabilities."
When/Where: Obama-Biden Plan: "Empower Americans with Disabilities," dated 09/06/08.
Source: http://www.thearc.org/document.doc?id=3073
Status:Numerous references to this preferential treatment promise were made by President Obama during 2009, but no specific actions, either in his annual budget proposals nor the American Recovery and Reinvestment Act of 2009 point directly to the fulfillment of this promise.

Several small business "set-asides" such as the '8(b)' program for minority and/or women-owned business already exist. While policy set forth in Section 1313 of the Small Business Jobs Act of 2010 (H.R. 5297) calls for all federal agencies to provide "small business concerns with appropriate opportunities to participate as prime contractors and subcontractors in the procurements of the Federal agency," no specific preference for the disabled (other than disabled veterans) has been addressed to date.

This promise has not been fulfilled.
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IO-71
The Promise: "Expand the Small Business Administration's loan and micro-loan programs which provide start-up and long-term financing that small firms cannot receive through normal channels."
When/Where: Obama-Biden Plan for Small Businesses, dated 09/11/08.
Source: http://obama.3cdn.net/18bdb8988efb99208a_vtt5mvfkt.pdf
Status:The president's FY2011 budget request asked Congress to increase the maximum size of 7(a) loans from $2 million to $5 million, and increase the size limits on 504 loans from $2 million to $5 million on regular projects and from $4 million to $5.5 million for manufacturing projects.

For FY2011, the SBA disbursed an all-time record of $19.6B in 7(a) loans, but the proposed budget for FY2013 reduces that amount to $16B.

From an appropriated amount of $4.9B in FY2009, the 504 loan program funding level was increased to $5.0B in FY2011, to $5.8B in FY2012 and the target for FY2013 is $6.1B.

Under President Obama, the Micro-Loan program funding level increased from $9.0B in FY2009 to $9.6B in FY2011, to $9.7B in FY2012 and is proposed to receive $12.9B in FY2013.

This promise has been fulfilled.
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IO-72
The Promise: "...will implement the Women Owned Business contracting program that was signed into law by President Bill Clinton, but has yet to be implemented by the Bush Administration."
When/Where: Obama-Biden Plan for Small Businesses, dated 09/11/08.
Source: http://obama.3cdn.net/18bdb8988efb99208a_vtt5mvfkt.pdf
Status:On 03/02/10, the Small Business Administration (SBA) announced a proposed rule that would expand federal contracting opportunities for women-owned small businesses (WOSB), making it available for 60 days to the public for comment. By its own admission, the SBA acknowledged that since the program was signed into law, resources were dedicated to study and analyze the market to determine the extent of WOSB participation across all industries.

The studies found that WOSB's were under-represented in the federal contracting marketplace in 83 industries. President Obama opted to create one comprehensive rule embodying the results of all previous studies. The new proposed rule would include the following major provision: "To be eligible, a firm must be 51 percent owned and controlled by one or more women, and primarily managed by one or more women. The women must be U.S. citizens. The firm must be "small" in its primary industry in accordance with SBA's size standards for that industry.

In order for a WOSB to be deemed "economically disadvantaged," its owners must demonstrate economic disadvantage in accordance with the requirements set forth in the proposed rule."

Implementation of the WOSB program, sometimes referred to as the "8(m)" program, took effect on 02/04/11 for manufacturing contracts valued at less than $5M and less than $3M for other contracts as announced in the 10/07/10 edition of the Federal Register.

This promise has been fulfilled.
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