Campaign Promises

Other/Miscellaneous -> Independent Organizations -> SBA

ItemIndependent Organizations
SBAGrade
IO-66 The Promise: "will work to help more entrepreneurs secure both traditional and alternative means of financing, expand the network of lenders, make interest rates for SBA loans more competitive with the private sector, and simplify the loan approval process."
When/Where: Barack Obama and Joe Biden: Small Business Emergency Rescue Plan, undated.
Source: https://www.washingtonpost.com/wp-srv/politics/documents/obamasmallbusinessrescueplan.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 continue extending new loans. The bank will continue, however, to service the $110 billion in loans already extended.

This promise was fulfilled.		1.00
IO-67 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: https://www.politifact.com/truth-o-meter/promises/obameter/promise/16/increase-minority-access-to-capital/
Status:Source is cited for confirmation of exact promise wording only, as it existed before original "When/Where" campaign document was deleted from archival websites.

The American Recovery and Reinvestment Act (ARRA) of 2009 provided $730M to the Small Business Administration (SBA) to supplement the FY2009 appropriation of $615M for a total of $1.345B. The ARRA also enhanced the SBA's lending and investment programs so that they can reach more small businesses, including minority-owned businesses.

Another example of how President Obama succeeded in strengthening the SBA occurred in FY2011 when Congress awarded a supplemental appropriation to the SBA, increasing its regular appropriation of $837M by $963M for a total of $1.800B.

The foregoing are two examples where President Obama managed to strengthen the SBA.

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 for receiving loans."

This promise was fulfilled.		1.00
IO-68 The Promise: "Will support entrepreneurship and spur job growth by establishing a small business and micro-enterprise initiative for rural America."
When/Where: Obama and Biden's Plan for America: "Blueprint for Change," dated 10/09/08
Source: https://www.documentcloud.org/documents/550007-barack-obama-2008-blueprint-for-change.html
Status:The American Recovery and Reinvestment Act (ARRA) signed into law on 02/28/09 recognized and improved support to the nation's small businesses. Included in the ARRA 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 rural America's 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.

This promise was fulfilled.		1.00
IO-69 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) was addressed by the Small Business Administration in the form of amended regulations during President Obama's two terms in office.

This promise was not fulfilled.		0.00
IO-70 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: https://www.politifact.com/truth-o-meter/promises/obameter/promise/36/expand-loan-programs-for-small-businesses/
Status:Source is cited for confirmation of exact promise wording only, as it existed before original "When/Where" campaign document was deleted from archival websites.

7(a) loans are the SBA's primary program for providing financial assistance to small businesses. 504 loans provide long-term, fixed rate financing for major fixed assets that promote business growth and job creation.

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. This request was approved in subsequent appropriations.

This promise was fulfilled.		1.00
IO-71 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: Barack Obama and Joe Biden: Small Business Emergency Rescue Plan, undated.
Source: https://www.washingtonpost.com/wp-srv/politics/documents/obamasmallbusinessrescueplan.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.

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 included 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.

On 12/19/14, President Obama signed into law the National Defense Authorization Act (NDAA) for FY2015. Section 825 of the NDAA authorized federal agencies to award sole-source contracts to women-owned small businesses eligible for the WOSB Federal Contract Program, giving women the same level of access to the federal contracting marketplace as other disadvantaged groups.

This promise was fulfilled.		1.00