Supporting NEW BUSINESSES Act
The Supporting NEW BUSINESSES Act would require the Small Business Administration (SBA) to recognize state and local governments that improve how new businesses are formed. Each year, the SBA would award three prizes to jurisdictions that have implemented innovative and effective policies or tools to streamline the process of forming small business concerns. The awards are divided into three population-based categories: large communities (400,000+), midsize communities (100,000–<400,000), and small communities (<100,000). Jurisdictions would apply, and the SBA would assess applicants based on criteria such as reducing paperwork, centralizing resources (e.g., user-friendly online portals), reducing duplicative requirements across overlapping jurisdictions, and adopting other innovative streamlining practices. The bill also reorganizes the Small Business Act to add this new award program. In short, the bill creates a federal incentive program to publicly recognize and encourage local and state governments to simplify and speed up the process of forming new small businesses, with the goal of reducing barriers for entrepreneurs.
Key Points
- 1Establishes annual awards (3 total) within the SBA to recognize governments that streamline small-business formation processes.
- 2Awards are categorized by population size of the community: 400,000+; 100,000–<400,000; and under 100,000.
- 3Requires states/localities to submit an application to be considered for an award.
- 4Awards will consider factors such as reducing paperwork, consolidating resources (e.g., online portals), reducing cross-jurisdiction duplication, and adopting innovative streamlining measures.
- 5Administrative changes include redesignating and inserting a new section (adding the awards program) within the Small Business Act and providing the bill’s long-form short title.