Small Business Investment Expansion Act

This morning AllBusiness.com ran a story by Keith Girard regarding a new piece of legislation ( Small Business Investment Expansion Act ) that could see action in the small business committee in the near future. The bill is tentatively titled the, "Small Business Investment Expansion Act of 2007," and would allow venture capital firms to acquire a controlling interest in a small business and still have their small business contracts counted towards the federal governments 23 percent small business procurement goal indefinitely.

The bill has not been introduced, however it has already garnered opposition from small business advocates like the American Small Business League as well as, Administrator of the Small Business Administration, Steven Preston and ranking minority member of the House Small Business Committee, Representative Steve Chabot (R - OH).

In an interview with Girard, Chabot referred to the act as, "eviscerating." and said that it would, "drastically change the long-held standard [under the act] that a small business is one that is 'independently owned and operated.'"

Administrator Preston also had words for lawmakers on the new legislation, "The basic premise of small business-size status is circumvented by the provision," he said. "We must object."

In addition to Chabot and Preston, Girard also received comment from the President and Founder of the American Small Business League, Lloyd Chapman, Who stated, "I'm violently opposed. It's essentially a partial repeal of the Small Business Act."

For more information please read Keith Girard’s story, “Contentious Debate Looms Over Small Business Venture Capital,” by visiting:

Link:

http://www.allbusiness.com/government/4923343-1.html