S.20.3-15: Southern Small Business Administration Act (Law'd)

[tmthforu94]

Southern Small Business Administration Act
To establish a Southern Small Business Administration

Be it enacted by the Government of the Southern Region

1. A department shall be established called the "Southern Small Business Administration"
2. The Southern Small Business Administration shall have an annual budget of $7 billion dollars. Money shall be appropriated from regional reserves. 75% shall be used for grants and 25% used for loans.
 shall be appropriated from regional reserves.
3. The Southern Small Business Administration shall administer grants and loans under $100,000 for small businesses that have under $500,000 dollars of net revenue each year.
4. The Southern Small Business Administration shall form immediately upon the passage of this bill.

Sponsor: Tim Turner
Co-Sponsor: Tmthforu94

48 hours for debate. The sponsor is invited to advocate for the bill.

[tmthforu94]

Tim Turner and I collaborated on this bill this afternoon after seeing something similar introduced by Ishan in Lincoln. Last month, the Chamber agreed to allow for a deficit in order to provide relief to those struggling from COVID-19. This bill would set up a regional SBA department to administer grants to Main Streets across the South that are struggling to stay afloat amidst the pandemic. The federal budget in the US for SBA has ranged wide, going up north of $2B. This amount is what we landed on as there is an increased need for support during the pandemic. This bill has my total support.

[tmthforu94]

I would prefer more of this be in grants or some sort of direct payments as opposed to loans. I feel as if government loans can generally be pretty risky because of a lack of the government's incentive to underwrite risks. Just look at how much student loan debt has been accumulated because the government did not really underwrite those risks and is generous with how it gives out loans.

Also, many small businesses make far more than $100,000 dollars. $100,000 is nothing when you have multiple employees. That value should be significantly higher. I'm thinking at least $500,000, but probably more.

Grants are included in the text, both are options. I can’t speak for Tim, but personally I’d be good with an amendment raising the limit allowed for a grant/loan.

[tmthforu94]

Offering an amendment:

Southern Small Business Administration Act
To establish a Southern Small Business Administration

Be it enacted by the Government of the Southern Region

1. A department shall be established called the "Southern Small Business Administration"
2. The Southern Small Business Administration shall have an annual budget of $750 million dollars. Money shall be appropriated from regional reserves.
3. The Southern Small Business Administration shall administer grants and loans under $5100,000 for small businesses that have under $5100,000 dollars of net revenue each year.
4. The Southern Small Business Administration shall form immediately upon the passage of this bill.

24 hours for objections.

[tmthforu94]

The amendment is adopted, debate resumes.

Personally I'm OK with it as is, I would have faith that the regional SBA will take this debate as advice to put preference on grants, but I'm a bit lost on language that would require it, unless we just want a line that says shall administer grants and loans, with preference towards grants, under......"? Would that satisfy people more?

[tmthforu94]

No apologies necessary, thanks for offering it! I'm cool with Clause 3 though it makes me think how we can ensure accountability, I need to think carefully on Clause 2. SBA is a noble cause by $7 billion is a lot compared to the relative budget, and this needs to be factored in with other spending we will be doing related to COVID-19 relief.

24 hours for objections to Dip's amendment.

[tmthforu94]

Dip's amendment is adopted. DTC's recommendation is OK to me so I'll go ahead and offer the amendment, 24 hours for objections:

Southern Small Business Administration Act
To establish a Southern Small Business Administration

Be it enacted by the Government of the Southern Region

1. A department shall be established called the "Southern Small Business Administration"
2. The Southern Small Business Administration shall have an annual budget of $7 billion dollars. Money shall be appropriated from regional reserves. 75% shall be used for grants and 25% used for loans.
3. The Southern Small Business Administration shall administer grants and loans under $250,000 for small businesses that have under $1 million dollars of net revenue each year.
4. The Southern Small Business Administration shall form immediately upon the passage of this bill.

[tmthforu94]

The amendment has been adopted. I am calling for a final vote.

[tmthforu94]

A final vote has started, please vote AYE, NAY or ABSTAIN.


Aye

[tmthforu94]

This has enough votes to pass, delegates have 24 hours to change their votes.

[tmthforu94]

With 6 Ayes, the bill passes and will be presented to the Governor for signature.