November 7 2008 Copyright 2008 Business Research Services Inc. 301-229-5561 All rights reserved.

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Washington Insider

Democratic leaders plan to bring Congress back for a lame-duck session Nov. 17 to work on an economic-stimulus package that could cost as much as $150 billion.

Democrats are pushing a “Main Street” recovery platform that would boost spending on roads, bridges and other transportation projects, unemployment benefits and energy assistance. Republican leaders want tax cuts, including a two-year suspension of the capital-gains tax and a reduction in the corporate rate.

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The usual game of musical chairs that follows a congressional election may bring changes in the leadership of several important Senate committees next year.

The chairman of the Homeland Security and Governmental Affairs Committee, which has jurisdiction over procurement issues, is Sen. Joe Lieberman, the Connecticut Democrat turned independent who angered Democrats with his vocal support of John McCain. Now that Democrats have expanded their majority in the Senate, they may decide they don’t need Lieberman’s vote as badly and may oust him from the chairmanship. Either Daniel Akaka of Hawaii or Thomas Carper of Delaware would be in line to lead the committee.

Small Business Committee Chairman John Kerry, D-MA, could become chairman of either the Foreign Relations or Commerce committee. Mary Landrieu, D-LA, is the likeliest candidate to head the Small Business Committee if Kerry leaves.

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SBA has broadened its loan program for military reservists, as ordered by Congress. Under the new rules, a small business can apply for a loan on the date the essential employee receives notice of the expected call-up. The application period is extended to one year after the essential employee is discharged from active duty, an increase from the previous 90-day window.

The small business is no longer required to pledge collateral to secure a loan of $50,000 or less. The maximum amount of the loan increases from $1.5 million to $2 million.

The program provides direct working capital loans, and the funds may be used to cover operating costs until the essential employee or business owner is released from active duty.

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The Coast Guard has given up its independent acquisition authority under legislation passed by Congress. The parent Homeland Security Department will be the final authority on major Coast Guard acquisition decisions.

Congress ordered the move following criticism of the Coast Guard’s management of its multibillion dollar Deepwater modernization initiative.

The Coast Guard’s Acquisition Directorate said the change “does not imply removal of Coast Guard management of major acquisition projects.” However, the DHS procurement office will review and approve each major milestone. “Prior to DHS approval to proceed toward the next milestone, the Coast Guard must demonstrate the project is properly progressing by satisfying milestone and acquisition plan criteria,” the service’s statement said.

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Leaders of the Senate Small Business Committee have released a report detailing successful practices for assisting small businesses. The reference guide, entitled “What Works for Small Businesses,” includes a long list of state and local programs targeted at small firms. Among many topics covered are government procurement opportunities, access to capital and tax incentives.

Committee Chairman John Kerry and the ranking Republican, Olympia Snowe of Maine, said they collected best practices from 38 states and many localities. The guide is available at http://sbc.senate.gov/What%20Works%20for%20Small%20Businesses%20September%202008.pdf.

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The Veterans Affairs Department has begun an outreach effort to acquaint veteran-owned businesses with the HUBZone program. To determine whether your principal office is in a HUBZone, go to www.sba.gov/hubzone and click on “Are You in a HUBZone?” A company’s principal office is not necessarily its headquarters; it is the location where the greatest number of employees work, not counting employees who work at specific job sites for construction and services.

VA has set up an email address, VetsInHubzones@va.gov, to provide more information about HUBZone certification.

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SBA’s Office of Advocacy has launched a new small business blog focusing on regulatory issues, small business research, state regulatory activity and more. “The Small Business Watchdog” can be found at http://weblog.sba.gov/blog-advo.

“We are excited about the fact that the Office of Advocacy is using social media and Web 2.0 techniques to help join together the small business community across the country,” said Shawne McGibbon, acting chief counsel for advocacy.


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