Legislative Win in 2012 for Micro-business Development
In February President Obama signed the Middle Class Tax Relief and Job Creation Act of 2012, aka the payroll tax – unemployment extension bill. The bill also contains the Wyden Start-Up bill, a $35 million self-employment assistance program. Under the program, unemployed workers will be able to maintain their unemployment insurance benefits while they start their own small businesses – a full-time job in its own right – without having to look for other full-time work. This was not the case before this bill was signed. The money can be used by states to offer a Self-Employment Assistance (SEA) Program. One of CAMEO’s 2012 policy activities was to develop a bill to be introduced in the California legislature in 2013.
Legislative Wins in 2010-2011 for Micro-business Development
FY2012 Budget Negotiations for micro-business help
At the beginning of the budget debate we were looking at $15 million for PRIME and Microloan TA. We ended up with $23.5 million. We consider that a hug win for micro-business development in a tough political climate.
California Legislation for micro-business
Governor Jerry Brown signed four bills that CAMEO supported on behalf of our members and the micro-business development field
- AB 29 will create the Governor’s Office of Business and Economic Development.
- AB 624 will extend the California Organized Investment Network’s (COIN) Tax Credit Program until January 1, 2015.
- AB 901 will expand the definition of financial institutions eligible to participate in the California Capital Access Program (CalCAP) to include small business financial development corporations and micro-business lenders and increases CalCAP reporting requirements. CAMEO provided the language to expand the definition of eligible entities.
- AB 981 which would provide extra incentives within the California Capital Access Program (CalCAP) to encourage lenders to lend to small businesses. This bill would also expand the financial institution definition to include insured depository institutions, insured credit unions, and Community Development Financial Institutions (CDFIs).
Legislative Wins for Micro-business Development Pre-2010
USDA Rural Microentrepreneur Assistance Program
CAMEO lobbied for the successful implementation of the Rural Microentrepreneur Assistance Program, created by Congress’ 2008 Farm Bill. The USDA will increase grants for rural microlending and technical assistance. The Rural Microentrepreneur Assistance Program was allocated $14 million for fiscal years 2009-2011.
Legislative Wins in 2008-2009
New Jobs Tax Credit
SB 15 of the Third Extraordinary Session; Stats. 2009, Ch. 17 added R&TC Sections 17053.80 and 23623 operative for taxable years beginning on or after January 1, 2009.
This statute created a new tax credit of $3,000 for each additional full-time employee hired by a micro-business with 20 or less employees beginning January 1, 2009.
Restoration of the Small Business Loan Guarantee Program
When Governor Schwarzenegger gutted funding for this program in the state budget, CAMEO worked with local Community Development Financial Institutions and Assemblyman Manny Perez to restore funding to one of the most successful small business financing programs in the state.
CAMEO also worked with Assemblyman Manny Perez to expand the Small Business Loan Guarantee Program to include more types of qualified small businesses that should include micro-business.
Micro-business Development Month Designation
CAMEO worked with Senator Leland Yee to pass SCR 41, which designates July 2009 and July of every year thereafter as Micro-Business Development Month.
Rural Microentrepreneur Assistance Program
CAMEO lobbied for and won implementation of the Rural Microentrepreneur Assistance Program, created by Congress’ 2008 Farm Bill. The USDA now administers grants to organizations that provide training, technical assistance or make small loans to new and existing rural micro-businesses. The Rural Microentrepreneur Assistance Program was allocated $4 million for fiscal years 2009-2011, and $3 million for 2012.