By John Arensmeyer, founder and CEO, Small Business Majority, and Todd McCracken, president, National Small Business Association
The bipartisan measures in the JOBS Act will increase capital formation, spur the growth of startups and high-tech ventures and pave the way for more small-scale businesses to go public, which can lead to more job creation within the company.
This bill is by no means a perfect piece of legislation and stakeholders on both ends of the political spectrum have voiced concerns with some of its provisions. With that said, the fact that it has passed both chambers in this hyper-partisan environment is a huge step in the right direction. The credit crisis for small firms has reached its zenith, and we urge the president to sign this bill immediately. The JOBS Act isn’t a panacea for small businesses’ credit woes, but small businesses need all the help they can get. Now, more than ever, they need legislators to put their partisan differences aside and work together for small businesses’ benefit.
However, we strongly encourage legislators not to stop here. This bill will give startups a leg up, but existing brick-and-mortar Main Street small businesses need help, as well. There are too many mom-and-pop shops that need small loans, like $25,000 to build an addition onto their business or keep supplies stocked, and can’t get them because of tightened restrictions and a dried up credit market.
Only half of small business owners who sought loans last year were able to get them, according to a Pepperdine University study. That’s a pretty dismal figure, and it’s this credit barrier that directly prevents small business expansion and limits entrepreneurs’ ability to put America back to work. We encourage the administration and Congress to continue reaching across the aisle for the good of small business. The small business lending crisis has gone on far too long. We hope lawmakers can build on the bipartisan momentum and continue focusing on fixing the credit problem. Our job creators are counting on their help.
Arensmeyer is the founder and CEO of Small Business Majority.
McCracken is president of the National Small Business Association (NSBA).
The following business groups signed onto this piece:
Association for Enterprise Opportunity
Minority Business RoundTable
National Association for the Self-Employed
National Gay & Lesbian Chamber of Commerce
National Small Business Association
Small Business and Entrepreneurship Council
Small Business Majority
U.S. Black Chamber, Inc.
United States Hispanic Chamber of Commerce
Women Impacting Public Policy