DC is Serious about Small Businesses

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Council passes legislation to bolster small businesses in tough economic times

This week, the DC Council passed legislation that will help small businesses survive in tough economic times.  The “Small Business Stabilization and Job Creation Strategy Act,” authored by At-Large Councilmember Kwame R. Brown, tasks the Department of Small and Local Business Development (DSLBD) with providing stabilization services to small businesses and creating a mentoring program, amongst other initiatives.

“The laws we’re passing now will have a positive impact on small businesses and employment for years to come,” said Councilmember Brown.  “Residents are counting on us to make smart, tough decisions and to take a comprehensive approach to solving our economic challenges.  We’re facing this head on.”

According to the Small Business Administration, small businesses account for “99.7% of all employer firms” and have “generated 64% of net new jobs over the past 15 years.”  That was one of the reasons Councilmember Brown authored the “Small Business Stabilization and Job Creation Strategy Act.”  He believes that small business growth and job training for adults are keys to long-term economic stability.

The legislation will help fuel small business growth and create jobs by:

• Providing specialized programs to assist Certified Business Enterprises (CBEs) in securing capital and repairing damaged credit;
• Establishing informational seminars on securing credit and loans;
• Providing one-on-one small business counseling with potential borrowers to improve financial presentations to lenders;
• Increasing access to traditional and non-traditional financing sources; and
• Helping build the green economy by preparing businesses to access new markets.

In addition, on Friday, March 12th, the Committee on Finance and Revenue chaired by Councilmember Jack Evans will hold a public hearing on the “DC Job Growth Incentive Act of 2010.” Councilmember Brown introduced the legislation to address the District’s unemployment crisis.  During the month of December, the District’s unemployment rate rose to 12.1%, the highest on record.  The legislation grants a business franchise tax credit to businesses that create at least 10 new jobs in the District.  To qualify for the credit, businesses must retain the positions for at least one year.  Businesses that create jobs in any industry are eligible for the credit.

Here are some more of Councilmember Brown’s small business and job initiatives, which are now law:

• Secured 100 New Jobs for DC Residents: An amendment to the agreement to attract Co-Star to DC, which requires 100 new jobs for DC residents before the company receives any incentives.  Learn more.
• Get DC Residents Training for Jobs Now Act: Provided $1.1 million for adult job training and three existing District facilities.  Training started last fall.  Learn more.
• Created the Workforce Competitiveness Taskforce: This month, the taskforce released a major report on how to create a skilled labor force called “Closing the Gaps to Build the Future.”  Learn more.
• The Stimulus Accountability Act: Required the mayor to post all jobs created by District stimulus dollars online.  Learn more.
• The DSLBD Amendment Act of 2009: Redefines how the District grows small businesses while putting teeth in the Certified Business Enterprise laws.  Learn more.

For more information or to interview Councilmember Brown, please contact Press Secretary Michael Price at 202-445-4510 or mprice@dccouncil.us.