Advocacy

Policy Agenda

SBAM recently released its Small Business Policy Agenda. Download your copy here.

 

In Support of Small Business

You have a business to run, so the team at SBAM constantly monitors issues affecting small business so you don’t have to.  SBAM also helps to give you and other small business owners a voice in the democratic process by connecting members with influential policymakers.

You can help protect your small business and help bolster Michigan’s entrepreneurs by getting involved today.

SBAM has an easy way for you to contact your elected officials. Take action now and voice your support for small business by:

  • Contacting your legislators
  • Examining voting records   
  • Locating your elected officials
  • Tracking key issues
  • Learning about elections

Latest Legislative News

How small business worked with the DEQ on environmental regulatory reform. Today at 10 a.m. on the Business Next free audio seminar

SBAM's Director of Government Relations Dave Jessup talks with Michael Rogers about the successful effort to begin reforming Michigan's environmetal regulations. Also, get advice on how to network more effectively, learn how a small office supply company thrives in southeast Michigan, and hear about the new Michipreneuers website. Listen today at 10 a.m., 3 p.m. and 8 p.m. on the Michigan Business Network. Listen to archived programs anytime at your convenience on your PC or mobile device by going to the Business Next show page.

Get Business Next audio seminars delivered three times a week automatically to your iPhone or other mobile device. Subscribe in iTunes using this URL.

Photo by http://www.flickr.com/photos/your_wht_knight/

Small business owners support recommendations to cut environmental red tape

The Small Business Association of Michigan (SBAM) supports the Michigan Office of Regulatory Reinvention (ORR) recommendations released today that update environmental regulations in order to make Michigan a more competitive place to do business. 

“These recommendations are the result of a productive dialogue that has taken place between the Snyder administration and the state’s job providers,” says Rob Fowler, President and CEO of SBAM. “Historically there have been two major factors contributing to making it expensive to do business in Michigan: the system by which we tax businesses and an overly stringent regulatory structure. In 2011, Gov. Snyder took a huge first step on his promise to restructure business taxation. The administration’s comprehensive review of regulation stands to be the next major milestone in making Michigan once again a good place in which to do business.”

SBAM supports a more efficient, customer service-oriented licensing process that services private sector business needs, with a particular emphasis placed on cost containment and timetable efficiency; and predictability in regulatory applications to allow businesses to plan for future liabilities (particularly important for small businesses as they typically do not have the resources to navigate a complex regime of regulation.) “Many of the recommendations on environmental regulation that ORR has announced today are targeted toward these objectives and SBAM looks forward to the future release of reforms in other areas of state government,” says Fowler. “SBAM applauds the ORR efforts and is eager to partner with the administration and legislative leaders to make the necessary statutory changes recommended in the package.”

Photo by http://www.flickr.com/photos/rumn8tr/

What are the options for repairing Michigan's crumbling roads and bridges? And why should small business owners care? Today on the Business Next free audio seminar

Kirk Steudle, director of the Michigan Department of Transportation, talks about the importance of an excellent transportation infrastructure to small business success. Listen today at 10 a.m., 3 p.m. and 8 p.m. today on the Michigan Business Network. Listen to archived programs anytime at your convenience on your PC or mobile device by going to the Business Next show page

Photo by http://www.flickr.com/photos/dougtone/

How do you think we should pay to repair our roads and bridges? Leave a comment below.

EEOC Bars Certain Job Requirements by Employers

From SBAM's national affiliate, NSBA:

On Nov. 17, 2011, the Equal Employment Opportunity Commission (EEOC) Office of Legal Counsel issued an “informal discussion letter” stating that an employer requiring high school diplomas would be unlawful under the Americans with Disabilities Act. They cited such a requirement as having a disparate impact on the learning disabled unless the employer can demonstrate that the diploma requirement is job related and consistent with business necessity.
 
Most recently, in January 2012, the EEOC adopted as policy--quite under the radar--that a high school diploma requirement would constitute discrimination on the basis of national origin under the Civil Rights Act of 1964.

NSBA opposes this move as it will lead to needless, expensive and damaging litigation, have an adverse impact on small businesses and employment levels as well as discourage young people from pursing educational attainment.

There is no credible evidence that small businesses discriminate against those without high school diplomas when the skills that high school graduates possess are not relevant to the job. Doing so would deprive an employer of many good potential hires and raise their costs. Businesses should be left free to decide what level of educational achievement is necessary for their employees to discharge their job requirements.

Most jobs in a modern economy require the ability to do arithmetic, read, understand instructions and solve problems. A high school diploma is a reasonable indicator that a person possesses these qualities. Usually, a person who has earned a high school diploma will perform these tasks better than a person without one. A high school diploma is also an indicator of the person’s ability to stay on task, complete projects and accept instructions.

It will undoubtedly spawn an army of new consultants helping businesses figure out who has these skills without requiring a high school diploma and force them to spend time and money demonstrating to the satisfaction of the EEOC and some prospective jury that the job actually did require these skills. Those businesses that don’t spend the time and money to hire consultants, consult their attorneys and put a nice “diploma requirement compliance notebook” on their shelf documenting the math, reading and problem solving requirements of every job will be putting themselves at risk of losing a lawsuit.

If the logic of the EEOC position is extended to college degrees, then in many cases that requirement will disappear as well. This will discourage people from finishing high school or college since it will become widely known that employers cannot generally require diplomas. Thus, the policy can be counted on to discourage education. Educational attainment is not an inherent or immutable characteristic. It is something that someone works at and achieves to learn and to earn a credential. It is something we want to encourage, not discourage. It is something we should wish to reward.
 
 

Pure Michigan Venture Match Fund public hearing on Feb. 8 in Lansing

The Michigan Strategic Fund and the Michigan Economic Development Corporation (MEDC) announced a public hearing to accept questions and comments regarding the new Pure Michigan Venture Match (MVM) Fund. The hearing is scheduled to take place from 10 a.m. to noon on Feb. 8 at the MEDC, 300 N. Washington Sq., Lansing. 

“Innovative early-stage companies often need venture capital to help finance critical stages of their development and commercialization,” said MEDC President and CEO Michael A. Finney. “We are aiming to bridge this capital gap and help entrepreneurs to develop promising technologies to grow into new innovation companies, while we diversify Michigan’s economy and create new wealth in our state.” 

The Pure Michigan Venture Match Fund will match early stage investments from eligible venture funds in Michigan-based technology businesses. The minimum venture investment that will be considered is $700,000 and the maximum is no more than $3,000,000. The match from the MSF will be no less than $350,000 and no more than $500,000, with similar investment terms as the venture investment. 

Companies will only be allowed to apply for MSF funding once they have secured a qualified venture investment, making this a market driven application process. There will be a peer review of the company business plan and investors as required under the 21st Century Jobs Fund legislation. 

The program is intended to attract venture funds, within and outside of Michigan, to consider investments in early stage and pre-revenue Michigan-based technology companies and to mitigate some risk for venture fund investments at this stage by participating with MSF funds in early rounds. 

After consideration of the comments and information received at the public hearing, the final MVM Fund program guidelines will be presented to the MSF Board for approval and implementation. The program is anticipated to launch on March 1, 2012 if approved by the MSF board at the February board meeting.
Relevant documents regarding the Pure Michigan Venture Match Fund can be downloaded here.

What do you think of the Pure Michigan Venture Match Fund? Leave a comment below.

New survey report: small business confidence hits highest level in three years

SBAM’s national affiliate, the National Small Business Association (NSBA), today released its 2011 Year-End Economic Report, which shows a decidedly more positive outlook for America’s small businesses, with important gains in several key indicators. Most notably, more small-business owners report being confident about the future of their businesses than at any time in the last three years, up from 64 percent just six months ago to 75 percent today. 

“Although this report is by far the most positive we’ve seen in quite some time, it is imperative policymakers not mistake these gains for a task completed,” stated NSBA Chair Chris Holman, CEO of Michigan Business Network.com and President of The Greater Lansing Business Monthly. “There are countless issues that continue to hinder small businesses.”

While the majority of small-business owners (66 percent) continue to anticipate a flat economy in the coming year, the number expecting a recession was more than cut in half at 14 percent, down from 30 percent six months ago. Additionally, the number of small businesses expecting economic expansion in the coming year nearly doubled from 12 percent to 20 percent in six months.
Revenue growth was at its highest point in more than three years with 46 percent of small businesses reporting increases—up from 39 percent six months ago. There was a commensurate drop in those reporting decreases in revenue from 37 percent to 31 percent. And while job growth didn’t experience the same kind of growth—it remained unchanged at just 22 percent reporting increases—the number of small businesses (23 percent) reporting employment decreases was the lowest it’s been in three years.
When asked which issues are most important for policymakers to address, small businesses overwhelmingly ranked reducing the national deficit number one—up to 44 percent from 34 percent six months ago—followed by reducing tax and regulatory burdens and reigning in the costs of health care. Along those lines, there was a marked increase among small-business owners who cited regulatory burdens as a major challenge for their business—up from 31 percent six months ago to 40 percent today.
Please click here to access the 2011 Year-End Economic Report.


Attention employers - UI Tax reform underway

On Dec. 19, 2011, the State Legislature approved a comprehensive solution to Michigan’s defunct Unemployment Trust Fund. Prior to the reform action, the system, which is wholly financed through taxes on employers, was indebted to the federal government by nearly $3.4 billion and was structurally unstable. Without legislative intervention Michigan employers would have been subject to substantial and steadily increasing federal penalties to repay the debt and interest, without building solvency in the Trust Fund.

Specifically, the reform package issues bonds to repay the $3.4 billion debt. Employers are legally obligated to repay the balance. By issuing bonds and assessing employers for repayment, business owners will experience a significant savings relative to the heighted federal interest and penalties due in 2012. 

To insure that the Unemployment Insurance Trust Fund remains stable and solvent going forward, the business community and the legislature agreed that the taxable wage would have to be raised from $9,000 to $9,500. However, the taxable wage base will automatically decrease to $9,000 once the Trust Fund returns to a balance of $2.5 billion. 

Fiscal reforms were not enough, however, to guarantee future solvency. Changes tightening qualifying standards, imposing more severe penalties for defrauding the system and loosening rules for seasonal employers will help make the reforms a complete solution. After years of decline, Michigan’s UI system is again stable.

Beginning this week, business owners will receive a detailed explanation of these reforms directly from the Michigan Department of Licensing and Regulatory Affairs. Members who have questions are encouraged to utilize the Department’s new Office of Employer Ombudsman through its toll-free phone number at 1-855-484-2636 (4-UIAOEO) or via e-mail at OEO@michigan.gov. The Office is open from 8:30 a.m. to 4:30 p.m., Monday through Friday. SBAM members may also contact David Jessup, SBAM’s Director of Government Relations, via email at dave.jessup@sbam.org

Questions about UI reform? You can also leave a comment below!

Infrastructure funding debate heats up

(By Dave Jessup, director of government relations)

Jan. 30, 2012: A week after Gov. Snyder called on the legislature to find $1.4 billion in funding to help maintain the state’s crumbling roads and bridges, a bipartisan, bicameral package has been introduced. To raise the necessary funds, the tax on gasoline and registration fees for vehicle would both be increased.

The package has four major components, with two items in particular expected to attract a fair amount of controversy: 1) A proposed increase in vehicle registration fees, estimated to generate about half billion dollars, by increasing fees by percentages based on the value of vehicles rather than a flat dollar amount, and 2) the package seeks to eliminate the gas tax and replace it with a sales tax at the wholesale level.

What would amount to a nine cent per gallon across the board increase at the pump would generate an estimated $541 million.

Also called for is the creation of a commercial corridor fund, which is designed to ensure that more dollars flow directly to road and bridge construction and maintenance. Also in line with Gov. Snyder’s recommendation, legislation to authorize a regional transit authority for southeast Michigan (including Wayne, Oakland, Macomb and Washtenaw counties) is also a major component of the overall package. The authority would be empowered to develop a high-speed system of mass transit along Woodward and Gratiot, connecting Troy with Mount Clemens and Ann Arbor with Detroit.

(photo by MSVG

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