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?