HR5297 - the Small Business Jobs bill
July 20th 2010 00:41
Well it is time for the Senate to review and debate HR5297 this is the Small Business Jobs bill. With stimulus and a government agency The Small Business Administration already overseeing small business just exactly is this legislation supposed to do. Section 399L provides us with definitions of what is an “Early Stage Small Business, the Participating Investment Company and what the target industries are. So if you are planning to start your own company just because you do not like working for someone else or because in this economy and current record numbers of people unemployed can you only get assistance if you start a company in the target industries? What good does that do you if you are not educated or have expertise in one of those areas?
SEC. 399L. DEFINITIONS.
`In this part, the following definitions apply:
` (1) EARLY-STAGE SMALL BUSINESS- The term `early-stage small business' means a small business concern that--
`(A) is domiciled in a State; and
`(B) has not generated gross annual sales revenues exceeding $15,000,000 in any of the previous 3 years.
`(2) PARTICIPATING INVESTMENT COMPANY- The term `participating investment company' means an applicant approved under section 399D to participate in the program.
`(3) TARGETED INDUSTRIES- The term `targeted industries' means any of the following business sectors:
`(A) Agricultural technology.
`(B) Energy technology.
`(C) Environmental technology.
`(D) Life science.
`(E) Information technology.
`(F) Digital media.
`(G) Clean technology.
`(H) Defense technology.
`(I) Photonics technology.
“For some early stage companies the path to a liquidity event or even return on investment is a long and winding road (for example a biotech company has many hurdles to clear including Federal Drug Administration approval before it sees any real return on investment) (for more information, see, “The Drug Development Cycle”, pg. 3). As a result of this long investment cycle many private investors are reluctant to invest. This reluctance can be attributed to the time horizon for return on investment and the lack of a discernable (or at least a predictable) exit strategy. For the investor that is willing to invest, the valuations placed on companies with a long rate of return cycle are usually unacceptably low—at least to the management team” ( Marino & Michel, 2005). So if investors do not like investing in early stage companies because they are risky and many do not exist after 4-8 years then why is the government willing to take on these risky loans and as you can see from the next section 399M the intend to set aside 1 billion dollars for this program. Do you want to know who will be footing this bill? You guessed it you and me. How much more can we afford have you looked at the national debt clock lately? No wonder no one can put any money away for retirement soon we will not be able to put any money in savings accounts or checking accounts. I am not saying that some of these programs are not worth while I am saying we cannot afford them.
`SEC. 399M. APPROPRIATION.
`From funds not otherwise appropriated, there is hereby appropriated $1,000,000,000 to carry out the program.
Also go back for a past posting because again there is the Small Business Administration who over sees Small Business and has a loan department and a budget. Money, Money, Money!!
References:
http://www.senate.gov/
Really Long Link
Really Long Link
SEC. 399L. DEFINITIONS.
`In this part, the following definitions apply:
` (1) EARLY-STAGE SMALL BUSINESS- The term `early-stage small business' means a small business concern that--
`(A) is domiciled in a State; and
`(B) has not generated gross annual sales revenues exceeding $15,000,000 in any of the previous 3 years.
`(2) PARTICIPATING INVESTMENT COMPANY- The term `participating investment company' means an applicant approved under section 399D to participate in the program.
`(3) TARGETED INDUSTRIES- The term `targeted industries' means any of the following business sectors:
`(A) Agricultural technology.
`(B) Energy technology.
`(C) Environmental technology.
`(D) Life science.
`(E) Information technology.
`(F) Digital media.
`(G) Clean technology.
`(H) Defense technology.
`(I) Photonics technology.
“For some early stage companies the path to a liquidity event or even return on investment is a long and winding road (for example a biotech company has many hurdles to clear including Federal Drug Administration approval before it sees any real return on investment) (for more information, see, “The Drug Development Cycle”, pg. 3). As a result of this long investment cycle many private investors are reluctant to invest. This reluctance can be attributed to the time horizon for return on investment and the lack of a discernable (or at least a predictable) exit strategy. For the investor that is willing to invest, the valuations placed on companies with a long rate of return cycle are usually unacceptably low—at least to the management team” ( Marino & Michel, 2005). So if investors do not like investing in early stage companies because they are risky and many do not exist after 4-8 years then why is the government willing to take on these risky loans and as you can see from the next section 399M the intend to set aside 1 billion dollars for this program. Do you want to know who will be footing this bill? You guessed it you and me. How much more can we afford have you looked at the national debt clock lately? No wonder no one can put any money away for retirement soon we will not be able to put any money in savings accounts or checking accounts. I am not saying that some of these programs are not worth while I am saying we cannot afford them.
`From funds not otherwise appropriated, there is hereby appropriated $1,000,000,000 to carry out the program.
Also go back for a past posting because again there is the Small Business Administration who over sees Small Business and has a loan department and a budget. Money, Money, Money!!
References:
http://www.senate.gov/
Really Long Link
Really Long Link
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