The Growing Small Businesses Act Introduced to the U.S. House of Representatives

small business, small business Act, Illinois business lawyer, business attorneyOn February 20, 2014, Illinois Representative Rodney Davis and New Jersey Representative Donald Payne Jr. introduced the Growing Small Businesses Act (HR 4063). The bill was introduced during National Entrepreneurship Week, with the goal of providing assistance and training for both the unemployed and potential business owners.

Why the Growing Small Businesses Act? 

Senator Davis, in the presentation of the Act, stated that federal job training centers should:

“Ensure that they have training opportunities available for those who are ready to chart their own course and start a business. Small businesses are the backbone of our economy, creating two out of every three new jobs in America, and this legislation will help to foster even more growth within the small business community by giving those who are unemployed the opportunity to achieve their dreams.”

In Illinois the current unemployment rate sits at 8.6 percent, with the federal unemployment rate at 6.5 percent. Attempting to provide more work training for the unemployed, as well as information and training to encourage and inspire future business owners, would hopefully push these current unemployment rates down. Many small business owners in Illinois lament about the difficulties that new small businesses and entrepreneurs face. If properly constructed, the Growing Small Businesses Act could potentially provide training and funding required for the unemployed to find new work opportunities, while also fostering the tools and relationships that entrepreneurs need to start new businesses as a means to provide more jobs for their local communities.

The Growing Small Businesses Act

The Growing Small Businesses Act is still in the making, and must be read before the House of Representatives before a vote can be taken. The bill’s essential goal is to provide a somewhat expanded role for the Federal Department of Labor. The bill would aim for the Department of Labor to ensure that proper work and entrepreneurial training is provided by federal workforce centers throughout the country. Both representatives would also like for the Department of Labor to facilitate the partnering of local area work training providers with local burgeoning entrepreneurs.

Specifically, the Act would change the way that federal job training centers throughout the country are evaluated by the Department of Labor. Under the new Act, the effectiveness of federal job training centers would also be evaluated by taking into account the proliferation of and effectiveness of entrepreneurial training programs. Currently, federal job training centers are evaluated based on the employment retention rate, a calculation focusing on the average of six months of earnings and the actual employment rate.

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