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Rich could get richer unless we act.

Posted by on November 05, 2008 at 16:02:27:

Today, I am contacting you with an important legislative up-date and a call to action. As you may know, within the final weeks of the 2008 congressional session, the Senate could vote on S. 3362, the SBIR/STTR Reauthorization Act of 2008. The bill contains a provision, which will allow businesses that are majority owned by venture capital syndicates to participate in federal programs designed for small businesses. The SBIR program was set to expire on September 30; however, the program has been temporarily extended through March 20, 2009. As a result, while the Senate may still vote on the bill before the end of the month, it is likely that the vote will be postponed until early next year. Due to the election season and the holidays the Senate will only be in session for a very limited time before the program sunsets, therefore it remains vital that action is taken on this legislation.

Like H.R. 5819, S. 3362 sets a dangerous precedent and creates a slippery slope which could lead to firms backed by venture capital syndicates (more than one venture capital firm) to participate in other federal programs designed specifically for small businesses. The SBIR program is specifically designed to help America's small businesses, and should not become a taxpayer subsidy for billionaire venture capitalists.

Given the gravity and time sensitive nature of this issue, we ask that you offer an official statement from your chamber opposing S. 3362, distribute our message to your members asking them to contact their elected officials, and contact your local media- newspapers, television, and radio to inform them about this issue. We would appreciate a copy of any letter that you decide to send to your congressional representatives. You can either email a copy or fax to 707-789-9580.

For your convenience, I have included: a description of our concerns, a link to a sample template letter, a link to the congressional contact portal, a copy of H.R. 5819 and S. 3362, and a letter template that you can personally use to contact your Senators.

Thank you and please let me know if you have any questions.

Best regards,
Kevin

Kevin Baron | Director of Government Affairs
American Small Business League
707.789.9575w | 707.789.9580f
kbaron@asbl.com | www.asbl.com

*************************************

ASBL Concerns:

We have concerns with Section 108 of S. 3362, the SBIR/STTR Reauthorization Act of 2008. Section 108 of the bill, will allow small businesses that are majority owned by venture capital firms access to a substantial portion of the SBIR program. Like H.R. 5819, S. 3362 sets a dangerous precedent and creates a slippery slope which will allow firms backed by venture capital syndicates to participate in other federal programs designed specifically for small businesses.

Our concern with Title II of H.R. 5819 is that it changes the definition of a small business from the current definition of "independently owned" to include businesses owned up to 49.9 percent by a single venture capital firm or up to nearly 100 percent if owned by multiple venture capital firms, so long as no single firm owns more than 49.9 percent. Additionally, as amended the bill will allow large venture capital firms (meaning more than 500 employees) to own up to 20 percent of a small business and still maintain small business status. This change is an increase of 10 percent over the previous standard. Title II of the act amends Sec. 9 (e) of the Small Business Act, which is specific to the SBIR program. While this legislation limits venture capital participation in a small business concern to the SBIR program, H.R. 5819 creates a dangerous precedent that could lead to venture capital participation in other small business programs.

As introduced, H.R. 5819 and S. 3362 will force legitimate small businesses to compete head-to-head against firms controlled by billionaire venture capitalists for even the smallest government orders for goods and services. This bill was fast-tracked through the House and has now moved to the Senate. With that in mind, we need you to act with urgency today.

*************************************
H.R. 5819:
http://www.govtrack.us/congress/bill.xpd?bill=h110-5819

S. 3362:
http://thomas.loc.gov/cgi-bin/bdquery/z?d110:s3362:

Chamber Endorsement Letter Template:
http://www.asbl.com/showmedia.php?id=1127

Senate Contact Portal:
http://www.senate.gov/general/contact_information/senators_cfm.cfm

Article by Keith Girard about HR 5819
http://www.allbusiness.com/company-activities-management/business-climate-conditions/9077284-1.html

*************************************

Congressional Template:

Dear Senator _______,

I would like to express my concern regarding the reauthorization of the SBIR Program, and its potential to impact small businesses across the United States. I oppose Section 108 of the S. 3362, the SBIR/STTR reauthorization Act. It is my understanding that Section 108 will allow businesses majority owned by venture capital firms to participate significantly in the SBIR program. I am concerned that by allowing venture capital firms to infiltrate one federal small business program, other small business programs will be susceptible to similar dangers. Section 108, places legitimate small businesses at a disadvantage and creates loopholes for abuse within the program.

I strongly urge you to take action to protect America's small business community proposing an amendment to S.3362 that would remove Section 108 or by voting against the bill as it moves to the floor.

Thank you,

Name
Date

Kevin Baron | Director of Government Affairs
American Small Business League
707.789.9575w | 707.789.9580f
kbaron@asbl.com | www.asbl.com

ASBL Blog
http://americansmallbusinessleague.blogspot.com/

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: Today, I am contacting you with an important legislative up-date and a call to action. As you may know, within the final weeks of the 2008 congressional session, the Senate could vote on S. 3362, the SBIR/STTR Reauthorization Act of 2008. The bill contains a provision, which will allow businesses that are majority owned by venture capital syndicates to participate in federal programs designed for small businesses. The SBIR program was set to expire on September 30; however, the program has been temporarily extended through March 20, 2009. As a result, while the Senate may still vote on the bill before the end of the month, it is likely that the vote will be postponed until early next year. Due to the election season and the holidays the Senate will only be in session for a very limited time before the program sunsets, therefore it remains vital that action is taken on this legislation. : Like H.R. 5819, S. 3362 sets a dangerous precedent and creates a slippery slope which could lead to firms backed by venture capital syndicates (more than one venture capital firm) to participate in other federal programs designed specifically for small businesses. The SBIR program is specifically designed to help America's small businesses, and should not become a taxpayer subsidy for billionaire venture capitalists. : Given the gravity and time sensitive nature of this issue, we ask that you offer an official statement from your chamber opposing S. 3362, distribute our message to your members asking them to contact their elected officials, and contact your local media- newspapers, television, and radio to inform them about this issue. We would appreciate a copy of any letter that you decide to send to your congressional representatives. You can either email a copy or fax to 707-789-9580. : For your convenience, I have included: a description of our concerns, a link to a sample template letter, a link to the congressional contact portal, a copy of H.R. 5819 and S. 3362, and a letter template that you can personally use to contact your Senators. : Thank you and please let me know if you have any questions. : Best regards, : Kevin : Kevin Baron | Director of Government Affairs : American Small Business League : 707.789.9575w | 707.789.9580f : kbaron@asbl.com | www.asbl.com : ************************************* : ASBL Concerns: : We have concerns with Section 108 of S. 3362, the SBIR/STTR Reauthorization Act of 2008. Section 108 of the bill, will allow small businesses that are majority owned by venture capital firms access to a substantial portion of the SBIR program. Like H.R. 5819, S. 3362 sets a dangerous precedent and creates a slippery slope which will allow firms backed by venture capital syndicates to participate in other federal programs designed specifically for small businesses. : Our concern with Title II of H.R. 5819 is that it changes the definition of a small business from the current definition of "independently owned" to include businesses owned up to 49.9 percent by a single venture capital firm or up to nearly 100 percent if owned by multiple venture capital firms, so long as no single firm owns more than 49.9 percent. Additionally, as amended the bill will allow large venture capital firms (meaning more than 500 employees) to own up to 20 percent of a small business and still maintain small business status. This change is an increase of 10 percent over the previous standard. Title II of the act amends Sec. 9 (e) of the Small Business Act, which is specific to the SBIR program. While this legislation limits venture capital participation in a small business concern to the SBIR program, H.R. 5819 creates a dangerous precedent that could lead to venture capital participation in other small business programs. : As introduced, H.R. 5819 and S. 3362 will force legitimate small businesses to compete head-to-head against firms controlled by billionaire venture capitalists for even the smallest government orders for goods and services. This bill was fast-tracked through the House and has now moved to the Senate. With that in mind, we need you to act with urgency today. : ************************************* : H.R. 5819: : http://www.govtrack.us/congress/bill.xpd?bill=h110-5819 : S. 3362: : http://thomas.loc.gov/cgi-bin/bdquery/z?d110:s3362: : Chamber Endorsement Letter Template: : http://www.asbl.com/showmedia.php?id=1127 : Senate Contact Portal: : http://www.senate.gov/general/contact_information/senators_cfm.cfm : Article by Keith Girard about HR 5819 : http://www.allbusiness.com/company-activities-management/business-climate-conditions/9077284-1.html : ************************************* : Congressional Template: : Dear Senator _______, : I would like to express my concern regarding the reauthorization of the SBIR Program, and its potential to impact small businesses across the United States. I oppose Section 108 of the S. 3362, the SBIR/STTR reauthorization Act. It is my understanding that Section 108 will allow businesses majority owned by venture capital firms to participate significantly in the SBIR program. I am concerned that by allowing venture capital firms to infiltrate one federal small business program, other small business programs will be susceptible to similar dangers. Section 108, places legitimate small businesses at a disadvantage and creates loopholes for abuse within the program. : I strongly urge you to take action to protect America's small business community proposing an amendment to S.3362 that would remove Section 108 or by voting against the bill as it moves to the floor. : Thank you, : Name : Date : Kevin Baron | Director of Government Affairs : American Small Business League : 707.789.9575w | 707.789.9580f : kbaron@asbl.com | www.asbl.com : ASBL Blog : http://americansmallbusinessleague.blogspot.com/

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