This week the Office of Advocacy released its 2009 edition of small business profiles. On the website at www.sba.gov/advo/research/profiles, you will find an array of two-page small business economic profiles for the nation, each of the 50 states, the District of Columbia, and the U.S. territories. Each is loaded with the most current available data on the demographics of business owners, the numbers of businesses, their employment by industry and size, business openings and closings, gross domestic and state product, and the employment picture.

As noted, there are statistics galore. But what’s the story?

Perusing a number of the individual state profiles, I began to notice a pattern in the 2008 data. It seemed that many of the states with the largest shares of small business employment—states like Wyoming and North Dakota, Alaska, and Oklahoma, with between 54 and nearly 70 percent of their employment in small businesses—were often also states with positive—or at least less negative—employment change in 2008. Conversely, states with the lowest employment in small firms—say, between 44 and 49 percent—often had larger overall statewide employment losses—between 1 and 4 percent—in 2008.

This suggested to me that there are some interesting patterns to be found in the data. Take a look at patterns across the years too—there are state profiles on the web going back to 2005.

Dig in, data miners!

—Kathryn Tobias
Senior Editor

Each week while Congress is in session the Office of Advocacy will post a highlights schedule of congressional hearings and committee markups that we think will be of interest to stakeholders in the small business community. For further information on the hearings in question please contact the relevant congressional committee.

Tuesday, October 27, 2009
9:30 am          Hearing
Senate Environment and Public Works Committee hearing on global climate change and pending legislation, S.1733, Clean Energy Jobs and American Power Act
Bill Text: S.1733, Clean Energy Jobs and American Power Act,
Witnesses: Steven Chu, Secretary of Energy; Lisa Jackson, Administrator, Environmental Protection Agency (EPA); Ray LaHood, Secretary of Transportation; Jon Wellinghoff, Chairman, Federal Energy Regulatory Commission
Where: 406 Dirksen
Website: http://epw.senate.gov/public/?CFID=16750270&CFTOKEN=16672232

10:00 am        Hearing
House Natural Resources Subcommittee on Insular Affairs, Oceans and Wildlife oversight hearing on the Magnuson-Stevens Fishery Conservation and Management Act of 2006 (Pub.L. 109-479), which President Bush signed into law on January 12, 2007 (NY Times Article)
Where: 1334 Longworth
Webcast: http://resourcescommittee.house.gov/

10:00 am        Markup
House Financial Services Committee mark up of pending legislation
Agenda/Bill Text:
H.R. 3818, Private Fund Investment Advisers Registration Act of 2009
H.R. 3817, Investor Protection Act of 2009
H.R. 2609, Insurance Information Act of 2009
H.R. ___, Accountability and Transparency in Rating Agencies Act
Where: 2128 Rayburn
Webcast: http://financialservices.house.gov/

2:00 pm          Hearing
House Transportation and Infrastructure Subcommittee on Economic Development, Public Buildings and Emergency Management hearing on “Tracking Hearing #3: Follow the Dollars to the Jobs”
Where: 2167 Rayburn
Webcast: http://transportation.house.gov/

2:30 pm          Hearing
Senate Commerce, Science and Transportation oversight hearing on the broadband stimulus programs in the American Recovery and Reinvestment Act
Where: Russell 253
Webcast: http://commerce.senate.gov/public/

2:30 pm          Hearing
Senate Agriculture, Nutrition and Forestry Subcommittee joint hearing on the fall of dairy prices, focusing on exploring avenues for federal action to help dairy producers
Where: 328-A Russell
Webcast: http://ag.senate.gov/site/

Wednesday, October 28, 2009
9:30 am          Hearing
Senate Environment and Public Works Committee hearing on global climate change and pending legislation, S.1733, Clean Energy Jobs and American Power Act
Bill Text: S.1733, Clean Energy Jobs and American Power Act,
Where: 406 Dirksen
Website: http://epw.senate.gov/public/?CFID=16750270&CFTOKEN=16672232

10:00 am        Markup
House Financial Services Committee mark up of pending legislation
Agenda/Bill Text:
H.R. 3818, Private Fund Investment Advisers Registration Act of 2009
H.R. 3817, Investor Protection Act of 2009
H.R. 2609, Insurance Information Act of 2009
H.R. ___, Accountability and Transparency in Rating Agencies Act
Where: 2128 Rayburn
Webcast: http://financialservices.house.gov/

10:00 am        Hearing
House Agriculture Subcommittee on Horticulture and Organic Agriculture hearing on the Horticulture and Organic Agriculture title of the Food, Conservation and Energy Act of 2008 (110-246)
CRS Rpt: Organic Agriculture in the United States: Program and Policy Issues, Nov. 25, 2008
Where: 1300 Longworth
Webcast: http://agriculture.house.gov/index.shtml

10:00 am        Hearing
House Small Business Committee hearing on “The Recovery Act and Broadband: Evaluation of Broadband Investments on Small Businesses and Job Creation”
Witnesses: Lawrence E. Strickling, Assistant Secretary of Commerce for Communications and Information, National Telecommunications and Information Administration; Jonathan Adelstein, Administrator, Rural Utilities Service, Department of Agriculture
Where: 2360 Rayburn
Webcast: http://www.house.gov/smbiz/

10:00 am        Hearing
Senate Judiciary Committee hearing on “Effective Strategies for Preventing Health Care Fraud”
Where: 226 Dirksen
Webcast: http://judiciary.senate.gov/

10:00 am        Hearing
Senate Energy and Natural Resources Committee hearing on the role of natural gas in mitigating climate change
Where: 366 Dirksen
Webcast: http://energy.senate.gov/public/

2:00 pm          Hearing
House Science and Technology Subcommittee on Investigations and Oversight hearing on “Harnessing Science to Improve FDA’s [Food and Drug Administration] Food Safety Mission”
Where: 2318 Rayburn
Webcast: http://science.house.gov/

2:30 pm          Hearing
Senate Homeland Security and Governmental Affairs Subcommittee on Contracting Oversight hearing on new guidance from the Office of Management and Budget on how to combat waste and inefficiency in federal government contracting
Witness: Jeffrey D. Zients, Deputy Director for Management and Chief Performance Officer, Office of Management and Budget
Where: 342 Dirksen
Webcast: http://hsgac.senate.gov/public/

Thursday, October 29, 2009
TBA     Hearing
Senate Environment and Public Works Committee hearing on global climate change and pending legislation, S.1733, Clean Energy Jobs and American Power Act
Bill Text: S.1733, Clean Energy Jobs and American Power Act
Where:
Website: http://epw.senate.gov/public/?CFID=16750270&CFTOKEN=16672232

10:00 am        Hearing
Senate Health, Education, Labor and Pensions Committee “Pensions in Peril: Helping Workers Preserve Retirement Security Through a Recession”
Where: 30 Dirksen
Webcast: http://help.senate.gov/

10:00 am        Hearing
House Education and Labor Committee hearing on “Nevada’s Workplace Health and Safety Enforcement Program: OSHA’s Findings and Recommendations”
Chairman’s Statement on OSHA’s Findings
Where: 2175 Rayburn
Webcast: http://edlabor.house.gov/
Where: 538 Dirksen
Webcast: http://banking.senate.gov/public/

Thursday, October 29, 2009
TBA     Hearing
Senate Small Business and Entrepreneurship Committee hearing on the reauthorization of the finance programs of the Small Business Administration and on the impact of the small business provision in the Economic Recovery Act
Where: 485 Russell
Webcast: http://sbc.senate.gov/public/

9:00 am          Hearing
House Financial Services Committee hearing on financial regulatory overhaul: “Federal Reserve Perspectives on the Financial Regulatory Overhaul”
Witness: Ben S. Bernanke, Chairman, Board of Governors, Federal Reserve System
Where: 2128 Rayburn
Webcast: http://financialservices.house.gov/

10:00 am        Hearing  
House Ways and Means Committee hearing on the funding levels of defined benefit pension plans and the rules that apply to investment advice that is provided to participants in defined contribution plans.
Hearing background
Where: 1100 Longworth
Webcast: http://waysandmeans.house.gov/

Advocacy just filed public comments on the Federal Aviation Administration’s (FAA) pre-rulemaking notice on Safety Management System (SMS).  This is a really interesting issue because FAA and several other federal agencies are exploring whether they should require businesses to adopt SMS as a regulatory requirement.  In fact, there are various international agreements that may compel them to do so.

Under the SMS concept, a business essentially organizes itself around safety.  That is, safety becomes the essential organizing principle for every aspect of the organization— just as production or finance might now be.  The goal is to continually assess and mitigate risk as part of the corporate culture.  However, small businesses are raising some fair questions about the implications of SMS in the real world.  First and foremost is whether SMS is intended to be an additional layer of regulation or a transition to an entirely new way of regulating—one in which each business must define and meet its own safety parameter.  The government then assesses the firm’s compliance with its SMS program.  There has been a big debate within the Canadian aviation sector on this very issue.

Small businesses that attended Advocacy’s recent aviation roundtable expressed concerns about the open-ended and subjective nature of the SMS concept.  They want FAA and other agencies to identify and mitigate specific hazards, not hypothetical risks, and are concerned that an inspector could cite a business for not adequately addressing a “potential” or “perceived” risk.  They want to know when they are in compliance, and worry that SMS would establish a standard that (by definition) could never be met.

Advocacy is aware that SMS represents the latest thinking in safety and that many businesses and safety professionals support the concept.  However, because it could be especially costly and burdensome for small businesses, Advocacy wants to be sure that the implications are fully thought out.  For example, are there other approaches that would be more objective and flexible (such as scaling the program to the size, scope, and complexity of the operation)?

In addition to our letter, there is also an explanatory fact sheet on our website. If you would like to discuss this issue or have thoughts or comments, please feel free to contact me by email or phone, (202) 205-6144.

—Bruce Lundegren, bruce.lundegren@sba.gov
Assistant Chief Counsel

Last night, Christina Romer, the Chair of the Council of Economic Advisors, spoke at the National Economists Club’s annual dinner. She was introduced by the Office of Advocacy’s Chief Economist Chad Moutray, who also serves as the president of the club. Dr. Romer spoke about similarities and differences in the economic climate of the 1930s during the Great Depression and the current economic downturn, in what many have dubbed the “Great Recession.” In many ways, her remarks mirrored her testimony earlier this year to the Economic Policy Subcommittee of the Senate Committee on Banking, Housing and Urban Affairs. She outlined several lessons that we have learned from the mistakes of the 1930s, and in particular, she noted the “bold” actions taken over the course of the last year – both by the Federal Reserve and through fiscal policy – which have prevented this recession from becoming much more severe. During Q&A, she also noted the Administration’s desire for financial regulatory reform. She also noted the importance of entrepreneurship in terms of job creation and innovation, and she stressed the need for greater access to capital for small firms.

Media coverage of this event has focused on the risks that still exist in our current economy, with Dow Jones Newswires quoting her saying that “now is not the time to take a victory lap.” CNN, meanwhile, put many of her remarks in the context of current Administration proposals for a Consumer Financial Protection Agency, health care reform, and the use of the Troubled Asset Relief Program (TARP) to “calm fears” and inject needed capital into the financial sector.

Chad Moutray, Chief Economist for the Office of Advocacy, with Christina Romer,
Chair of the Council of Economic Advisors, at the National Economists Club's annual dinner.

Each week while Congress is in session the Office of Advocacy will post a highlights schedule of congressional hearings and committee markups that we think will be of interest to stakeholders in the small business community.  For further information on the hearings in question please contact the relevant congressional committee.

Tuesday, October 20, 2009

9:30 am           Hearing
Senate Banking, Housing and Urban Affairs Committee hearing on the state of the nation’s housing market.
Where:             538 Dirksen
Webcast:          http://banking.senate.gov/public/

10:00 am         Hearing
Senate Health, Education, Labor and Pensions Committee hearing on “Keeping America’s Families Safe: Reforming the Food Safety System”
Where:             430 Dirksen
Webcast:          http://help.senate.gov/

10:00 am         Hearing
Senate Judiciary Subcommittee on Administrative Oversight and the Courts hearing on “Medical Debt: Can Bankruptcy Reform Facilitate a Fresh Start?”
Where:             226 Dirksen
Webcast:          http://judiciary.senate.gov/

10:00 am         Hearing
Senate Finance Committee hearing on pending legislation, S. 1631, Customs Facilitation and Trade Enforcement Reauthorization Act of 2009
Text of Bill:      http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:s1631is.txt.pdf
Webcast:          http://finance.senate.gov/

10:30 am         Hearing
Senate Small Business and Entrepreneurship Committee hearing titled “Reform Done Right: Sensible Health Care Solutions for America’s Small Businesses”
Where:             253 Russell
Webcast:          http://sbc.senate.gov/public/

1:00 pm           Hearing
House Energy and Commerce Subcommittee on Oversight and Investigations hearing on “The High Cost of Small Business Health Insurance: Limited Options, Limited Coverage”
Where:             2123 Rayburn
Webcast:          http://energycommerce.house.gov/

2:00 pm           Markup
House Financial Services Committee markup of pending legislation, H.R. 3126, Consumer Financial Protection Agency Act of 2009
Bill Text:          H.R. 3126, http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h3126ih.txt.pdf
Where:             2128 Rayburn
Webcast:          http://financialservices.house.gov/

Wednesday, October 21, 2009

TBA                Markup
House Financial Services Committee markup of pending legislation, H.R. 3126, Consumer Financial Protection Agency Act of 2009 and H.R. ____, “Over-the-Counter Derivatives Markets Act of 2009”  
Bill Text:          H.R. 3126, http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h3126ih.txt.pdf

H.R.____, (discussion draft of the “Over-the-Counter Derivatives Markets Act of 2009”  http://www.house.gov/apps/list/press/financialsvcs_dem/otc_discussion_draft.pdf
Where:             2128 Rayburn
Webcast:          http://financialservices.house.gov/

9:30 am           Hearing
Senate Homeland Security and Governmental Affairs Committee hearing on “H1N1 Flu: Monitoring the Nation’s Response”
Where:             342 Dirksen
Webcast:          http://hsgac.senate.gov/public/

9:45 am           Hearing
Senate Energy and Natural Resources Committee hearing on the costs and benefits for energy consumers and energy prices associated with the allocation of greenhouse gas emission allowances
Where:             366 Dirksen
Webcast:          http://energy.senate.gov/public/ 

10:00 am         Hearing
House Agriculture Subcommittee on Rural Development, Biotechnology, Specialty Crops, and Foreign Agriculture hearing on rural business programs, conditions for rural entrepreneurship, and business development
Where:             1300 Longworth
Webcast:          http://agriculture.house.gov/

10:00 am         Hearing
Senate Judiciary Committee hearing on “Effective Strategies for Preventing Health Care Fraud”
Where:             226 Dirksen
Webcast:          http://judiciary.senate.gov/

Thursday, October 22, 2009

 TBA                Markup
House Financial Services Committee markup of H.R. ____, “Over-the-Counter Derivatives Markets Act of 2009”  
Bill Text:          H.R.____, (discussion draft of the “Over-the-Counter Derivatives Markets Act of 2009”  http://www.house.gov/apps/list/press/financialsvcs_dem/otc_discussion_draft.pdf
Where:             2128 Rayburn
Webcast:          http://financialservices.house.gov/

9:30 am           Hearing
House Select Energy Independence and Global Warming Committee hearing on “Building U.S. Resilience to Global Warming Impacts”
Where:             TBA
Webcast:         

10:00 am         Hearing
House Homeland Security Subcommittee on Border, Maritime and Global  Counterterrorism hearing on “Cargo Security at Land Ports of Entry: Are We Meeting the Challenge?”  The purpose of the hearing is to receive testimony on the Department of Homeland Security’s efforts to identify, interdict and investigate cargo security threats at land border ports of entry.
Where:             311 Cannon
Webcast:          http://homeland.house.gov/

10:00 am         Hearing
House Energy and Commerce Subcommittee on Communications, Technology and the Internet hearing on “Video Competition in the Digital Age”
Where:             2123 Rayburn
Webcast:          http://energycommerce.house.gov/

10:00 am         Hearing
House Ways and Means Subcommittee on Oversight hearing on administration of the first-time homebuyer tax credit
Where:             1100 Longworth
Webcast:          http://waysandmeans.house.gov/

Tuesday, October 27, 2009

TBA                Hearing
Senate Environment and Public Works Committee hearing on global climate change.
Witnesses:        Steven Chu, Secretary of Energy; Lisa Jackson, Administrator, Environmental Protection Agency (EPA);  Ray LaHood, Secretary of Transportation; Jon Wellinghoff, Chairman, Federal Energy Regulatory Commission
Where:             406 Dirksen
Website: http://epw.senate.gov/public/?CFID=16750270&CFTOKEN=16672232

2:00 pm           Hearing
House Transportation and Infrastructure Subcommittee on Economic Development, Public Buildings and Emergency Management hearing on “Tracking Hearing #3: Follow the Dollars to the Jobs”
Where:             2167 Rayburn
Webcast:          http://transportation.house.gov/

Wednesday, October 28, 2009

TBA                Hearing
Senate Environment and Public Works Committee hearing on global climate change.
Where:             406 Dirksen
Website: http://epw.senate.gov/public/?CFID=16750270&CFTOKEN=16672232

2:30 pm           Hearing
Senate Commerce, Science and Transportation Committee hearing on “Combating Distracted Driving: Managing Behavioral and Technological Risks”
Witnesses:        Ray LaHood, Secretary of Transportation; Julius Genachowski, Chairman, Federal Communications Commission
Where:             253 Russell
Webcast:          http://commerce.senate.gov/public/

Thursday, October 29, 2009

TBA                Hearing
Senate Environment and Public Works Committee hearing on global climate change.
Where:             406 Dirksen
Website:http://epw.senate.gov/public/?CFID=16750270&CFTOKEN=16672232

Advocacy recently submitted comments on EPA’s May 2009 proposed rule concerning the Renewable Fuel Standard Program. The rule under consideration would require specified types and amounts of renewable fuels to be blended into the nation’s gasoline and diesel fuel. It would require ever-increasing amounts of renewable fuels such as ethanol and cellulose-based fuel to be added to U.S. petroleum stocks over the coming years. Refiners would have to either blend the renewable fuels into their products or buy renewable fuel credits from a national credit exchange.

 In a comment letter filed on September 25, Advocacy conveyed the concerns of small business fuel refiners about the program. Small refiners are concerned that (1) the fuel standard is not technically feasible because many of the mandated renewable fuels are not currently commercially available, and (2) the price of fuel credits may be exorbitantly high or the credits themselves may not be available. Advocacy recommended that EPA either delay the implementation schedule for small refiners until these problems can be solved, or implement it in phases to allow time for these problems to be adequately addressed. And fyi, Advocacy’s website contains a fact sheet summarizing the letter’s main points.

 —Keith Holman, Assistant Chief Counsel

The Securities and Exchange Commission (SEC) has given the smallest public companies extra time to comply with the final portion of Sarbanes-Oxley. The extension will apply to companies with a public float below $75 million.

Such small companies must now begin complying by June 15, 2010, with a provision in the law, known as section 404, requiring them to report on the effectiveness of their internal controls. Previously, the companies were to begin complying by December.15, 2009.

 The SEC said it decided on the extension after issuing a new study on the compliance costs of the change, which it indicated the smallest companies would need time to review. 

SEC Chairman Mary Schapiro said that this would be the last extension: “Since there will be no further commission extensions, it is important for all public companies and their auditors to act with deliberate speed to move toward full Section 404 compliance.”

 —Dillon Taylor, Assistant Chief Counsel

Each week while Congress is in session the Office of Advocacy will post a highlights schedule of congressional hearings and committee markups that we think will be of interest to stakeholders in the small business community.  For further information on the hearings in question please contact the relevant congressional committee.

Tuesday, October 6, 2009

10:00 am  Hearing
Senate Small Business and Entrepreneurship Committee hearing on “The Recovery Act for Small Businesses: What is Working and What Comes Next?” The hearing will focus on the implementation of the small business provisions in the Recovery Act.
Where: 485 Russell
Webcast:  http://sbc.senate.gov/public/

2:30 pm  Hearing
Senate Commerce, Science and Transportation Subcommittee on Competitiveness, Innovation, and Export Promotion hearing on ways to help promote exports by small and midsize businesses
Where: 253 Russell
Webcast:         http://commerce.senate.gov/public/

Wednesday, October 7, 2009
10:00 am  Hearing
Senate Commerce, Science and Transportation Subcommittee on Communications, Technology, and the Internet hearing on the reauthorization the Satellite Home Viewer Extension and Reauthorization Act of 2004
Where: 253 Russell
Webcast:  http://commerce.senate.gov/public/

10:00 am          Hearing
House Ways and Means Subcommittee on Select Revenue Measures hearing on tax incentives for distressed communities, including the empowerment zone and renewal communities programs, which are set to expire December 31, 2009
Where: 1100 Longworth
Webcast:  http://waysandmeans.house.gov/

10:00 am  Hearing
House Energy and Commerce Subcommittee on Commerce, Trade and Consumer Protection hearing on “Growing U.S. Trade in Green Technology”
Where: 2322 Rayburn
Webcast:  http://energycommerce.house.gov/

10:00 am  Hearing
Senate Judiciary Committee hearing on “Workplace Fairness: Has the Supreme Court Been Misinterpreting Laws Designed to Protect American Workers from Discrimination?”
Where: 226 Dirksen
Webcast:  http://judiciary.senate.gov/

1:00 pm    Hearing
House Small Business Committee hearing on “State of the Nation’s Housing Sector: An Examination of the First Time Buyer’s Credit and Future Policies to Sustain a Recovery”
Where: 2360 Rayburn
Webcast:  http://www.house.gov/smbiz/

Thursday, October 8, 2009

8:00 am            Hearing
House Armed Services Defense Acquisition Reform Panel hearing on “The Department of Defense’s Rapid Acquisition Process:  Is It a Model For Improving Acquisition?”
Where: 2261 Rayburn
Webcast:         http://armedservices.house.gov/

10:00 am  Hearing
Senate Small Business and Entrepreneurship Committee hearing on “Reform Done Right: Sensible Health Care Solutions for America’s Small Businesses”
Where: TBD
Webcast:  http://sbc.senate.gov/public/

1:30 pm    Hearing
House Judiciary Subcommittee on Courts and Competition Policy hearing on pending legislation, H.R. 3596, Health Insurance Industry Antitrust Enforcement Act of 2009
Where: 2141 Rayburn
Webcast:  http://judiciary.house.gov/

Friday, October 9, 2009

9:30 am    Hearing
Senate Banking, Housing and Urban Affairs Subcommittee on Economic Policy hearing on “Restoring Credit to Manufacturers”
Where: 538 Dirksen
Webcast:  http://banking.senate.gov/public/

10:00 am  Hearing
House Financial Services Committee hearing on financial regulatory overhaul:  Systemic Risk and Prudential Banking Overhaul Issues
Where: 2128 Rayburn
Webcast:  http://financialservices.house.gov/

Wednesday, October 14, 2009

10:00 am  Hearing
Senate Judiciary Committee hearing on “Prohibiting Price Fixing and Other Anticompetitive Conduct in the Health Insurance Industry”
Bill:          S. 1681, Health Insurance Industry Antitrust Enforcement Act of 2009
Where:     226 Dirksen
Webcast:  http://judiciary.senate.gov/

Thursday, October 15, 2009

10:00 am          Hearing
House Transportation and Infrastructure Committee hearing on the Clean Water Act after 37 years
Where: 2167 Rayburn
Webcast:         http://transportation.house.gov/