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PRESIDENT CLINTON AND VICE PRESIDENT GORE
Encouraging the Growth of Small Business
"The entrepreneurial spirit burns brightly as the creativity and productivity
of America's small businesses make our Nation's business community the envy
of the world."
-- President Bill Clinton
THE STRONGEST ECONOMY IN A GENERATION
Longest Economic Expansion in U.S. History. In February 2000, the
United States entered the 107th consecutive month of economic expansion -- the
longest economic expansion in history. Economic growth has averaged 3.8 percent
per year since President Clinton and Vice President Gore took office, after
growing just 1.7 percent per year from 1988-1992. [National Bureau of Economic
Research and Council of Economic Advisors]
Moving From Record Deficits to
Record Surplus. In 1992, the deficit in the Federal budget was $290 billion -
the largest dollar deficit in American history. In January 1993, the
Congressional Budget Office projected that the deficit would grow to $455
billion by 2000. The Office of Management and Budget is now projecting a $211
billion surplus for 2000 - the third consecutive surplus and the largest
surplus ever, even after adjusting for inflation. Compared with original
projections, that is $666 billion less in government drain on the economy and
$666 billion more potentially available for private investment in this one year
alone. [Office of Management and Budget; National Economic Council, 6/26/00]
Over 22 Million New Jobs. 22.1 million new jobs have been created since 1993,
the most jobs ever created under a single Administration -- and more new jobs
than Presidents Reagan and Bush created during their three terms. Under
President Clinton and Vice President Gore, the economy has added an average of
248,000 jobs per month, the highest under any President. This compares to
52,000 per month under President Bush and 167,000 per month under President
Reagan. [White House Fact Sheet, 7/7/00]
Strong Private Sector Growth. The
private sector of the economy has grown 4.5 percent annually since 1993,
compared to 3.4 percent under President Reagan and 1.8 percent under President
Bush. Since 1993, 20 million new jobs have been created in the private sector,
the highest share since Harry Truman was president (excluding temporary Census
workers). That's 225,000 private jobs created per month, the fastest rate of
any President on record. [White House Fact Sheet, 7/7/00]
Lowest Inflation
Since 1965. In 1999, the underlying core rate of inflation was 1.9 percent -
the lowest since 1965. Under President Reagan and President Bush, the
underlying core rate of inflation averaged 4.7 percent annually. [White House
Fact Sheet, 4/13/00]
Unemployment Is Nearly the Lowest in Three Decades.
Unemployment is down from 7.5 percent in 1992 to 4.0 percent in June 2000, and
in April 2000 the unemployment rate was the lowest in thirty years. The
unemployment rate has fallen for seven years in a row, and has remained below 5
percent for 34 months in a row. African-American unemployment has fallen from
14.2 percent in 1992 to an average of 7.7 percent in the first half of 2000 --
the lowest rate on record. The unemployment rate for Hispanics has fallen from
11.6 percent in 1992 to an average of 5.7 percent in the first half of 2000 --
the lowest rate on record. For women the unemployment rate was 4.1 percent in
June -- nearly the lowest since 1953. [White House Fact Sheet, 7/7/00]
Small
Businesses Contribute to Economic Growth. America's 25.5 million small
businesses generate more than half of the nation's gross domestic product;
represent 26 percent of America's exporters; create 80 percent of all the net
new jobs in the United States; and employ 52 percent of the private sector work
force. [Small Business Administration]
STRONG ECONOMY DRIVES SMALL BUSINESS GROWTH
Record Number of New Businesses. More than 5.9 million new businesses
have been created since President Clinton and Vice President Gore took office.
A record 898,000 new businesses opened their doors in 1998 -- nearly 130,000
more than in 1990, the best year of the Bush Administration. [Small Business
Administration, 1/00; SBA, The Facts About Small Business 1999]
Small Business
Bankruptcies at Lowest Rate in Nearly Two Decades. Small business bankruptcies
decreased by 17.9 percent between 1998 and 1999, to the lowest level in over 18
years. And in 1996, the business failure index was at its lowest level since
1989. [SBA, Small Business Economic Indicators, 1998; SBA, The State of Small
Business: A Report of the President, 1997]
Number of Small Businesses that
Export Tripled in Last Decade. The number of small firms that export products
has tripled, rising from 69,354 in 1987 to 209,455 in 1997. Nearly 97 percent
of American firms that export are small businesses, and in the past five years,
the value of small business exports has increased 300 percent. [SBA, News
Release, 11/10/99]
Small Businesses Report More Income. Corporate profits
increased in 1999 for the tenth year in a row, up 49.2 percent since 1992. Not
since the recovery from the 1981-82 recession has there been such a string of
increases in corporate profits. Nonfarm proprietorship earnings, an important
measure of the health of the small business sector, has increased by 34 percent
since 1992. The growth in proprietorship earnings from 1991-96 was the highest
for any five-year period since 1983-88. [Commerce Department, BEA; SBA, The
State of Small Business: A Report of the President, 1997]
ENHANCING INTERNATIONAL TRADE AND FEDERAL PROCUREMENT OPPORTUNITIES
Expanding Exports and
Creating Jobs. Since President Clinton took office, the Administration has
concluded nearly 300 new trade agreements. This export expansion has accounted
for more than one-quarter of the record U.S. economic growth between 1992 and
1998 and has helped created jobs that, on average, pay 15 percent more than
non-export related jobs. Small businesses represent nearly 97 percent of all
U.S. exporters. [National Security Council; SBA, "Learn About SBA"]
Historic
U.S.-China Trade Agreement. After 13 years of negotiations, the Administration
concluded a landmark agreement for China's entry into the World Trade
Organization. China agreed to grant the U.S. significant new access to its
rapidly growing market of over one billion people, while we have agreed simply
to maintain the market access policies we already apply to China by granting it
permanent Normal Trade Relations. The U.S.-China agreement slashes Chinese
tariffs on American goods; opens China's markets to American services, and
contains safeguards against unfair trading practices. China's membership in the
WTO will spur economic reforms in China, open China to information and ideas
from around the world, and strengthen the rule of law in China.
Created Three
Major Global Trade Agreements In the World Trade Organization. In the last
year, this Administration completed a "trifecta" of three major global trade
agreements in the World Trade Organization: the Information Technology
Agreement covering $500 billion in global trade and more than $100 billion in
U.S. exports, the global telecommunications services agreement (which will
create more than a million jobs in the next ten years) and the financial
services accord (which covers 95 percent of the global financial services
market). Together, these initiatives cover trade totaling more than $1 trillion
annually.
Eliminated Barriers to Open Trade in Asia Pacific Nations from Asia
Pacific Economic Cooperation (APEC) Summit. The Administration secured
commitments from Asian Pacific nations to eliminate barriers to open trade in
the region by 2020 for developing countries and 2010 for industrialized
countries. Over the next two years, 15 sectors will be identified for tariff
reductions, including energy products and services, environmental technologies
and services, natural resources, medical equipment, telecommunications, gems
and jewelry.
Enacted the African Growth and Opportunity Act. In May 2000,
President Clinton signed into law the African Growth and Opportunity Act,
groundbreaking legislation which recognizes African countries' efforts to
institute sound economic policies and reform. The philosophy of the legislation
is simple: America stands ready to help those African countries that undertake
difficult reforms to build a better future. Effective aid, combined with strong
reform and increased trade and investment, will help bring Africa into the
global economy and create new markets for U.S. exports. [White House, Office of
the Press Secretary, 5/18/00]
Enacted the Caribbean Basin Trade Initiative.
Also in May 2000, President Clinton signed into law the U.S.-Caribbean Basin
Trade Partnership Act (CBTPA), which will expand our trading relationship with
Caribbean and Central American countries. The CBTPA will create opportunities
for American companies and workers as it provides enhanced market access and
economic stimulus for countries devastated by Hurricane Mitch. [White House,
Office of the Press Secretary, 5/18/00]
Trade Agreements Enforcement
Initiative. The President is committed to ensuring that trade is free and fair
and that American companies and workers benefit fully from our bilateral and
multilateral trade agreements. He is proposing in FY 2001 that the Commerce
Department and related agencies have the resources necessary to monitor and
enforce international trade agreements.
Streamlining the Government Procurement
System. In FY 1999, SBA helped small firms receive 23.1 percent of Federal
contracts -- meeting the annual small business goal. The Clinton-Gore
Administration has worked with Congress to streamline the procurement process
through administrative changes and the Federal Acquisition Reform Act of 1996.
The changes instituted in these reforms are cost-effective for the government
and will enable businesses to compete more effectively for government contracts
worth billions of dollars. [SBA, Office of Government Contracting, FY 99 Report
on Annual Procurement Preference Goaling Achievements, 4/24/00; SBA, FY99
Annual Performance Report; The State of Small Business: A Report of the
President, 1997]
Electronic Gateway to Procurement Information. The Small
Business Administration's web page includes a search engine for its database of
federal, state and private contracts available to small firms.
OPENING DOORS FOR SMALL BUSINESS
Expanding Access to Capital. Since 1992, the Clinton-Gore
Administration has backed more than $77 billion in loans to small business --
more than in the previous 25 years combined. In 1999 alone, the SBA maintained
a portfolio of more than $40 billion in loan guarantees to 486,000 small
businesses that otherwise would not have had such access to capital. The SBA
backed another $12 billion in loans to 50,000 small businesses in 1999. [Small
Business Administration]
Doubled Venture Capital Investments. In the last three
years, the SBA's Small Business Investment Company Program doubled venture
capital investments. In 1999, this program made 53 percent of all institutional
venture capital deals in the United States, enabling 3,100 venture capital
investments totaling $4.2 billion. [Small Business Administration]
Providing
Loans and Technical Assistance through the MicroLoan Program. The MicroLoan
program combines the resources and experience of the Small Business
Administration with those of locally based nonprofit organizations to provide
small loans and technical assistance to small business owners. To date, SBA has
not experienced any defaults on the direct microloan program, suggesting that
the technical assistance has had a positive impact. In 1999 alone, SBA provided
counseling and technical help to more than 900,000 small businesses, and the
Administration intends to increase that number to 1.2 million in 2001 -- a
300,000 increase since 1993. [Small Business Administration, The Facts
About…the MicroLoan Program for Entrepreneurs; FY 2001 Budget, p. 217]
Cutting Taxes for Small Business. President Clinton signed the Taxpayer Relief
Act of 1997, which provided an estimated $20 billion in tax relief to small
business over the next ten years. The bill included provisions to reduce the
estate tax; increase the health insurance deduction for self-employed
individuals; and update home office deductions. It also reduced capital gains
taxes from 28 percent to 20 percent, giving small businesses an infusion of
capital. The new law also exempts small corporations from alternative minimum
tax calculations, saving about two million businesses from complex and
unnecessary paperwork. [SBA, The State of Small Business: A Report of the
President, 1997]
Ensuring Access to Health Insurance for Small Business. In
August 1996, President Clinton enacted the Kennedy-Kassebaum Health Insurance
Portability and Accountability Act (HIPAA). HIPAA required insurance companies
to sell coverage to small employer groups and to individuals who lose group
coverage without regard to their health risk status. The bill also eliminated
the discriminatory tax treatment of the approximately 10 million Americans who
are self employed, increasing the tax deductibility of their health insurance
premiums from 30 percent to 80 percent by 2006. [White House, Office of the
Press Secretary, 8/21/96]
Increasing Pension Security for Small Business.
President Clinton signed the Small Business Job Protection Act of 1996, which
created a simplified 401(k) retirement plan for small businesses, making it
easier for such companies to offer pensions to their employees. The bill
provided a tax credit to small business that adopt pension plans; created a
simplified and better defined contribution plan for small businesses; and
promoted pension portability. [White House, Office of the Press Secretary,
8/20/96]
Removing Barriers to Electronic Commerce. To ensure the continued
growth of e-commerce, Vice President Gore announced a new initiative in
November 1999, to revise laws and regulations that impose barriers to the
growth of electronic commerce. A working group will gather comments from the
public, State and Local governments, and Federal agencies, and develop
recommendations to facilitate e-commerce while ensuring consumer protection.
More than 4.5 million small employers (83 percent of all employers) used
computer equipment in their operations in 1998. [SBA, The Facts About Small
Business 1999]
Tapping America's Potential with the New Markets Initiative.
President Clinton's New Markets Initiative is helping to bring economic
development and renewal to communities that have not benefited from the soaring
economy by prompting approximately $15 billion in new investment in urban and
rural areas. The Initiative is providing tax credits, loan guarantee
incentives, a network of private venture capital companies, technical
assistance and mentoring programs to stimulate $22 billion in new investment in
urban and rural areas.
Ready with Disaster Relief. In 1999 alone, the Small
Business Administration provided victims of natural disasters with access to
more than 36,000 disaster loans totaling over $936 million. [Small Business
Administration]
Prepared with Y2K Assistance. On April 2, 1999, President
Clinton signed the Small Business Year 2000 Readiness Act to help small
business get loans to avoid and repair problems stemming from Y2K related
computer problems. [White House, Office of the Press Secretary, 4/2/99]
Using
the Internet to Make Information Available to Small Business Owners. The Small
Business Administration web site [www.sba.gov] offers everything from loans to
outreach initiatives for women and minority-owned businesses. The highly
praised site also provides e-mail counseling and mentoring as well as online
educational courses. Forbes Interactive Money Guide named the SBA site a
"Forbes Favorite" (government) web site in September 1999, and the site was
also named as one of Windows Magazine's 101 Best Business sites. The highest
average hits per week to the SBA web site was over 9.4 million.
CREATING OPPORTUNITIES FOR MINORITIES AND WOMEN
Tripled the Number of Loans to
Minorities and Women. Since 1992, the Clinton-Gore Administration has provided
$17.5 billion in loans to 77,000 minority-owned businesses and $11.7 billion in
loans to 79,000 women -- more than the SBA provided in total during its
previous 40 years. [Small Business Administration]
Expanded Small Business
Opportunities for Women. The Clinton-Gore Administration won $9 million in FY
2000 for Women's Business Centers, which provide resources to foster increased
entrepreneurship among women. In his FY 2001 budget, President Clinton has
proposed to expand the Women's Business Center network budget to $12 million,
an increase of 33 percent. Today this network includes more than 80 women's
business centers, including an Online Women's Business Center. Of those, 59
centers are currently funded by SBA grants; 22 have graduated from funding and
are operating independently. [Small Business Administration]
Supporting Minority Business Communities and Increasing Access to Capital. Building on the
efforts of the SBA, Vice President Gore unveiled aggressive plans to increase
lending and business services to the African American and Hispanic business
communities nationwide. The SBA has set a goal of providing an estimated total
of $1.86 billion in loans to African American small businesses over a
three-year period. In addition, the Vice President announced an unprecedented
agreement between SBA and the "Big Three" U.S. automakers to increase
subcontracting awards to minority businesses by nearly $3 billion over the next
three years -- a 50 percent increase over current levels.
Ensuring Minority
Business Owners Have a Fair Opportunity to Compete. The President signed the
Transportation Equity Act for the 21st Century into law on June 9, 1998. The
Act protects the Disadvantaged Business Enterprise (DBE) Program, a program
that ensures that minority and women-owned businesses have an opportunity to
compete for transportation projects. The Administration helped defeat an
amendment to the House version of this bill that would have eliminated the DBE
Program. In a different measure, the President also approved the creation of a
new program to target assistance to minority-owned businesses in industries
that continue to reflect the effects of discrimination. As a result, thousands
of minority-owned businesses will be able to compete more effectively for
government contracts. [White House, Office of the Press Secretary, 6/9/98]
Helping Veterans Succeed in Business. In August 1999, President Clinton signed
into law the Veterans Entrepreneurship and Small Business Development Act,
which provides assistance to veterans who are entrepreneurs and especially to
service-disabled veteran entrepreneurs. The bill also includes several measures
designed to cushion the impact on small businesses when their owners or
essential employees who are reservists are ordered to active duty during
military conflicts. The SBA's Office of Veterans Affairs offers helps veterans
succeed in business, with programs such as the Veterans Business Outreach
Program, which provides business training, counseling and mentoring to eligible
veterans owning or considering starting a small business. [White House, Office
of the Press Secretary, 8/17/99]
Updated July 2000 | 
