Google Public Policy Blog: Small businesses and broadband access

Google recently launched a Google's Small Business Network in the hopes of building up grass roots support for the $7.2 billion that was provided by the ARRA (American Recovery and Reinvestment Act) for high-speed broadband. Now, most small businesses would tell you their biggest problem right now is with getting credit, not high-speed Internet access. And it's not at all clear that bringing high-speed Internet to rural American will generate signficant jobs. The Washington Post recently looked at what happened to two towns in southwest Virginia who got wired for fiber-optic cable. In Lebanon, VA two large companies set up operations and offered jobs to about 700 residents averaging around $50,000 a year. In Roseville, 140 homes were wired at a cost of about $5,000 per home. But less than 50 homes signed up for the service, which cost $49 per month, and only a handful of jobs were created.

There is no question that the broadband stimulus will directly help large Telcos and indirectly help Google. Could it be that Google's latest effort to organize small businesses behind the broadband stimulus is just a little self serving? Google's comments about its Small Business initiative are here on the Google Public Policy Blog.


Comments left by members of the network about how stimulus funds should be spent tilted heavily toward tax relief and small business grants.

Here are some examples:

A Meaningful Property Tax Credit for the Mom and Pop Small Businesses, those under $1M in revenue." (Tom K. of Largo, Florida)

"Stop the credit card companies from cutting our business credit lines so that we can continue to purchase products to sell." (ET of Los Angeles, CA)

"Do a LOT MORE to encourage small business. Why doesn't the administration do something to: encourage technical retraining, open more research money to small business, possibly through the SBIR program, encourage updating software/capital equipment" (Biff44 of Massachusetts)

"As a rural WISP I have customers waiting and no capital to purchase equipment to add them on. So what happened to all Obama's touted broadband funds for rural areas?? Thanks, but no thanks, I'll keep the dollars..the government can keep the change!" (Dragon of Kerr Lake, Virginia)

"Create a small business grant program where the business must add new employees to be eligible." (GeorgeH of New York, NY)

"Extend lines of credit to small businesses that have been established -- and have a track history. Since the credit crunch hit -- our lines of credit have been cut to nothing -- so, even when there's opportunity for us to grow - our hands are tied." (Todd W of Dallas, Texas)

"I have started a small business successfully with only internet sales and need to expand with a small business loan or grant. I am now using credit cards, due to being turned down for a loan. Small business startups need accessible local funding." (Tom of Signal Hill, CA)

House Passes Entrepreneur Development Legislation!

Yesterday, May 20, the House of Representatives passed legislation to overhaul SBA entrepreneur development programs, H.R. 2352, by a vote of 406 to 15. What a fitting way to observe National Small Business Week. The bill now goes to the Senate for consideration.

Legislation to Aid Entrepreneurs and Create Jobs Approved by Committee and Ready for House Floor Vote

The House Committee on Small Business approved the bipartisan legislation described below on May 13. It is set for a House floor vote as H.R. 2352, the Job Creation through Entrepreneurship Act of 2009. The package, which contains seven bills, is the first overhaul of SBA's entrepreneurial programs in over a decade. Proven programs like Small Business Development Centers (SBDCs), Women's Business Centers (WBCs), and the Service Corps of Retired Executives (SCORE) are expanded. There are new support services for veteran-owned and Native American-owned small businesses and new online learning programs.

The bill also creats a grant program for SBDCs specifically to assist small firms in securing capital and credit such as the $21 billion in new small business lending generated under the American Recovery and Reinvestment Act (ARRA).

Three amendments were added enabling National Guard members and reservists to use the Veteran Business Center services, making surviving spouses of veterans eligible for veteran business programs, and establishing peer-to-peer technical assistance as part of a distance learning program.

Please let your Congressmen know that you support H.R. 2352.

As Representative Heath Shuler (D-NC), chairman of the Committee' s Subcommittee on Rural Development, Entrepreneurship and Trade, said, "As a small businessman myself, I know these programs provide the counseling and technical resources that can make the difference for an entrepreneur trying to get off the ground. Businesses that take advantage of these resources are twice as likely to succeed. Entrepreneurial development programs mean more successful small businesses, which translates to more jobs."

That' H.R. 2352. Tell your Representative to support it.

Time Running Out on Second Chance to Apply for COBRA (DEADLINE: June 12)!

If you lost your job in September, 2008 or in 2009 and you didn’t sign up for COBRA, you should have received notification by April 14 that you are eligible for a second chance. If you qualify and you didn’t receive notification, contact your former employer. Don’t assume that you aren’t eligible (See "Second Chance for Cobra for People Who Have Lost Their Jobs below"). Even if you are denied after you apply, you can appeal the decision by going to www.dol.gov/cobra. But you need to ACT NOW. You have only 60 days from April 14 to take advantage of this second chance (that is, until June 12).

Support bipartisan legislative updates to strengthen entrepreneurial programs

Seven bills updating programs boosting entrepreneurship were sent recently to the House Committee on Small Business for approval. These bills were updated by the Subcommittee on Rural Development, Entrepreneurship, and Trade. According to Subcommittee Chairman Heath Shuler (D-NC), “These programs offer resource and expertise that can help existing businesses expand and new enterprises get off the ground.”

It has been estimated that in 2008 alone, entrepreneurial development (ED) programs created 73,000 jobs and pumped $7.2 billion into communities across the country.

If you are in favor of these updates, you may want to let your representative (or the representatives who introduced these updates) know that you support their work.

The bills to watch for (and support) are:

H.R. 1803, Veterans Business Center Act of 2009. Introduced by Glenn Nye )D-VA).

H.R. 1834, Native American Business Development Enhancement Act of 2009. Introduced by Ann Kirkpatrich (D-AZ).

H.R. 1807, Educating Entrepreneurs through Today’s Technology Act. Introduced by Glenn Thompson (R-PA), this improves the SBA’s online and distance learning resources with high quality multilingual and educational resources for entrepreneurs.

H.R. 1838, Women’s Business Center Act. Introduced by Mary Fallin (R-OK).

H.R. 1839, SCORE Act. Introduced by Vern Buchanan (R-FL), this strengthens the SCORE (Service Corp of Retired Executives) and updates its mandate to improve its valuable business mentoring services.

H.R. 1842, Expanding Entrepreneurship Act of 2009. Introduced by Blaine Leutkemeyer (R-MO), this improves program coordination, setting performance benchmarks and increasing partnerships with local training providers.

H.R. 1845, Small Business Development Center Modernization Act of 2009. Introduced by Aaron Schock (R-IL), this modernizes the Small Business Development Centers’ program to assist entrepreneurs in accessing capital, securing procurement opportunities, and increasing energy efficiency.
The SBA’s entrepreneurial development programs have not been updated since 1999. These measures now need to be considered by the full House Committee on Small Business before they go before the entire House of Representatives for consideration.

Does someone you know need health care but can't afford it? Read this!

If you are ill and you need medical care but you can’t pay for regular treatment, you can go to a federally funded community health center near you. To find a health center near you, go to findahealthcenter.hrsa.gov. Enter your address and click the Find a Health Center button at that site, and the health centers near you will be listed.

These health centers offer more than emergency treatment when you are ill. You can get checkups, complete care if you are pregnant, immunizations for your children, dental care and prescription drugs, and mental-health and substance-abuse care if you need it. All of this is available at little or no cost based on your income.

Swine Flu Highlights Our Health System's Predicament in an Epidemic

The outbreak of swine flu has brought to light the fact that our health system is in a dangerous predicament in the face of an epidemic. Dr. Georges Benjamin, Executive Director of the American Public Health Association, points out, " To have an epidemic with millions of people who may not go to the doctor because they can’t afford to pay remains one of the unique challenges of our system.”

One is seven Americans is uninsured. Undocumented immigrants are also likely to be uninsured and likely to remain invisible. These people are likely to avoid getting care while they are contagious, thus infecting others. Does it need to be said that the “unique challenge” we face involves recognizing the poor and invisible among us and providing for them if only to protect ourselves?

Do you agree? Do you have any ideas on how to deal with this predicament?

SBA Loans Under a Microscope

Sylvia Cochran, a freelance writer who blogs over at Associated Content, says that the Obama Administration is putting Small Business Administration loans to small businesses under a microscope.

Second Chance for COBRA for People Who Have Lost Their Jobs

UPDATE ( May 12, 2009): If you lost your job after September 1, 2009, you should have received notification by April 14 from your former employer about your second chance to enroll in COBRA. If you have not heard from your employer, contact him. Note that you may still be eligible if your employer closed the branch where you worked even if you turned down an offer of a job in another location. If you accepted a buyout which was followed by layoffs, that, too, would still count as involuntary termination. You are ineligible only if your employer went out of business or canceled group coverage (or if you were terminated because of gross misconduct). IF YOU WERE DENIED COBRA, you can appeal to the U. S. Department of Labor at www.dol/gov/cobra. You have only 60 from April 14 to apply, so please, if you think you qualify, ACT NOW!

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If you lost your job and did not elect to purchase COBRA, you will have another chance.
This is because ARRA (the American Recovery and Reinvestment Act of 2009) is now subsidizing 65% of the premiums. This means that you pay only 35%, still more than what you paid when you working, but much more affordable.
The premium reduction applies to periods of health coverage beginning on or after February 17, 2009 and lasts for up to nine months.
You should receive notification of your second chance no later than April 14, after which you have 60 days to respond.
The following information is taken from the Department of Labor Web site.
WHAT IS COBRA?

COBRA gives workers who lose their jobs, and thus their health benefits, the right to purchase group health coverage provided by the plan under certain circumstances.

If the employer continues to offer a group health plan, the employee and his/her family can retain their group health coverage for up to 18 months by paying group rates. The COBRA premium may be higher than what the individual was paying while employed but generally the cost is lower than that for private, individual health insurance coverage.
The plan administrator must notify affected employees of their right to elect COBRA. The employee and his/her family each have 60 days to elect the COBRA coverage, otherwise they lose all rights to COBRA benefits.
Note: COBRA generally does not apply to plans sponsored by employers with less than 20 employees. Many States have similar requirements for small plans providing benefits through an insurance company. The premium reduction is available for plans covered by these State laws.
Changes Regarding COBRA Continuation Coverage Under ARRA
Premium Reduction: The premium reduction for COBRA continuation coverage is available to "assistance eligible individuals".
An "assistance eligible individual" is the employee or a member of his/her family who is eligible for COBRA continuation coverage at any time between September 1, 2008 and December 31, 2009; elects COBRA coverage; and is eligible for COBRA as a result of the employee's involuntary termination between September 1, 2008 and December 31, 2009.
Those who are eligible for other group health coverage (such as a spouse's plan) or Medicare are not eligible for the premium reduction. There is no premium reduction for premiums paid for periods of coverage prior to February 17, 2009.
ARRA treats assistance eligible individuals who pay 35 percent of their COBRA premium as having paid the full amount. The premium reduction (65 percent of the full premium) is reimbursable to the employer, insurer or health plan as a credit against certain employment taxes. If the credit amount is greater than the taxes due, the Secretary of the Treasury will directly reimburse the employer, insurer or plan for the excess.
The premium reduction applies to periods of coverage beginning on or after February 17, 2009. A period of coverage is a month or shorter period for which the plan charges a COBRA premium. The premium reduction starts on March 1, 2009 for plans that charge for COBRA coverage on a calendar month basis. The premium reduction for an individual ends upon eligibility for other group coverage (or Medicare), after 9 months of the reduction, or when the maximum period of COBRA coverage ends, whichever occurs first. Individuals paying reduced COBRA premiums must inform their plans if they become eligible for coverage under another group health plan or Medicare.
Special COBRA Election Opportunity: Individuals involuntarily terminated from September 1, 2008 through February 16, 2009 who did not elect COBRA when it was first offered OR who did elect COBRA, but are no longer enrolled (for example because they were unable to continue paying the premium) have a new election opportunity. This election period begins on February 17, 2009 and ends 60 days after the plan provides the required notice. This special election period does not extend the period of COBRA continuation coverage beyond the original maximum period (generally 18 months from the employee's involuntary termination). COBRA coverage elected in this special election period begins with the first period of coverage beginning on or after February 17, 2009. This special election period opportunity does not apply to coverage sponsored by employers with less than 20 employees that is subject to State law.
Notice: Plan administrators must provide notice about the premium reduction to individuals who have a COBRA qualifying event during the period from September 1, 2008 through December 31, 2009. Plan administrators may provide notices separately or along with notices they provide following a COBRA qualifying event. This notice must go to all individuals, whether they have COBRA coverage or not, who had a qualifying event from September 1, 2008 through December 31, 2009.
Individuals eligible for the special COBRA election period described above also must receive a notice informing them of this opportunity. This notice must be provided within 60 days following February 17, 2009.
Expedited Review of Denials of Premium Reduction: Individuals who are denied treatment as assistance eligible individuals and thus are denied eligibility for the premium reduction (whether by their plan, employer or insurer) may request an expedited review of the denial by the U.S. Department of Labor. The Department must make a determination within 15 business days of receipt of a completed request for review. The Department is currently developing a process and an official application form that will be required to be completed for appeals.
Switching Benefit Options: If an employer offers additional coverage options to active employees, the employer may (but is not required to) allow assistance eligible individuals to switch the coverage options they had when they became eligible for COBRA. To retain eligibility for the ARRA premium reduction, the different coverage must have the same or lower premiums as the individual’s original coverage. The different coverage can not be coverage that provides only dental, vision, a health flexible spending account, or coverage for treatment that is furnished in an on-site facility maintained by the employer.
Income limits: If an individual’s modified adjusted gross income for the tax year in which the premium assistance is received exceeds $145,000 (or $290,000 for joint filers), then the amount of the premium reduction during the tax year must be repaid. For taxpayers with adjusted gross income between $125,000 and $145,000 (or $250,000 and $290,000 for joint filers), the amount of the premium reduction that must be repaid is reduced proportionately. Individuals may permanently waive the right to premium reduction but may not later obtain the premium reduction if their adjusted gross incomes end up below the limits. If you think that your income may exceed the amounts above, consult your tax preparer or contact the IRS at www.irs.gov.
This fact sheet has been developed by the U.S. Department of Labor, Employee Benefits Security Administration, Washington, DC 20210. It will be made available in alternate formats upon request: Voice phone: 202.693.8664; TTY: 202.501.3911. In addition, the information in this fact sheet constitutes a small entity compliance guide for purposes of the Small Business Regulatory Enforcement Fairness Act of 1996.

Photo courtesy of Thee Erin

Unemployment benefits increased to help people who have lost their jobs

During this economic crisis, the Federal Government is helping people who have lost their jobs and need unemployment insurance in two ways: It has extended the period of unemployment benefits 20 weeks beyond the regular state unemployment benefits. In states with high levels of unemployment, an additional 13 weeks beyond the 20 weeks is available. The program itself has been extended until May 31, 2010. In addition, people will start receiving an extra $25 supplement . Most states will have included the supplement at the beginning of March. If you do not receive your supplement in March, it will be applied retroactively when it does go into effect. The details taken from the Department of Labor site are below.

Government Fact Sheet

Emergency Unemployment Compensation, 2008 (EUC08) — Program Extension
The EUC08 program, created on June 30, 2008, provides up to 20 weeks of federally-funded benefits to eligible unemployed workers who have collected all their regular state unemployment benefits. An additional 13 weeks of EUC are available in states with high levels of unemployment.
The EUC08 program was scheduled to expire on Aug. 27, 2009. The recovery legislation, Public Law Number 111-5, which was enacted on Feb. 17, 2009, extends the expiration date of the EUC08 program to May 31, 2010.
The period during which an individual may establish eligibility for EUC08 is extended from March 31, 2009, to the week of unemployment ending on or before Dec. 31, 2009, and the "phase-out" or expiration date of the program is extended from Aug. 27, 2009 to May 31, 2010.
The recovery legislation does not provide additional weeks of benefits for individuals who have or will exhaust their EUC08 benefits.

Federal Additional Compensation (FAC)
The recovery legislation also created a new FAC program that provides a $25 supplement that is payable to individuals receiving state unemployment compensation (UC) or Federal UC. The $25 supplement does not apply to state-financed Additional Compensation programs.
All 50 states, the District of Columbia, the Commonwealth of Puerto Rico and the U.S. Virgin Islands executed agreements with the secretary of labor to administer this new program on behalf of the federal government on or before Feb. 21, 2009; therefore, the program is effective Feb. 22, 2009, in all states/jurisdictions.
States are modifying their automated benefit payment systems to implement FAC. Many states will begin to make payments during the week of March 1, 2009, for weeks of unemployment effective Feb. 22, 2009. However, due to the complexity of changing automated systems, some states have advised that they may implement later, making payments retroactively.
States will calculate the individual's weekly benefit amount and make any adjustments in accordance with state law to account for any earnings, and any other deductions (for example, severance and retirement/pension payments).
The $25 supplement is taxable. Therefore, states will include the total benefits received including the $25 increase(s) in issuing a 1099G to claimants.
The $25 supplement/payments will be paid from federal general revenues. States will receive administrative costs associated with implementing the $25 add-on.