Panel Looks at Credit Available to Small Business

The House Small Business Committee held a hearing this week to examine challenges facing American small businesses and the banking community in obtaining and providing available credit. Committee Chairman Rep. Sam Graves (R-Mo.) opened the hearing with a clear message: "If we want our nation's entrepreneurs to grow their businesses and create jobs, we will need to bridge the gap between lenders and small business borrowers. We have called this hearing today to examine the challenges that both small businesses and banks are facing when deciding to expand or to lend money. In addition, we are going to examine alternative kinds of financing for small business and the avenues available for businesses to get the capital they need."

Business representatives advocated for permanent increases in loan guarantees and waivers for borrowing fees in the SBA loan programs in order to have the federal government take on more risk until the conventional loan markets could begin to function again. Additionally, businesses urged Congress to update and increase the SBA's maximum loan limits. Banks pointed out that two critical components considered when banks underwrite a small business loan are cash flow and value of collateral. Recognizing the challenges facing small businesses related to cash flow and reduced value of available collateral, coupled with increased capital requirements and regulatory uncertainty, the underlying reasons for the lack of available credit become clear. All witnesses agreed that expansion of SBA's loan program and streamlining regulatory requirements would go a long way to enhance credit opportunities to American small businesses.

Panel Evaluates OSHA Review of State Workplace Safety Programs

The House Education and Workforce Committee's Workforce Protections Subcommittee held a hearing last week to review state workforce protection plans and a recent report conducted by the Department of Labor's (DOL) Inspector General (IG), which is critical of the Occupational Safety and Health Administration's (OSHA) oversight of these state workplace safety plans. Subcommittee Chairman Rep. Tim Walberg (R-Mich.) praised the work of state programs, stating that "participating states conducted more than 61,000 inspections and identified an estimated 130,000 workplace safety violations. When compared to the federal safety program, state plans generally lead to more workplace inspections and result in more innovative safety solutions."

Despite the success of state workforce safety programs, a DOL IG report issued in March found state offi cials frustrated with the lack of clear expectations from OSHA. In fact, the findings reveal OSHA has not evaluated the success of its own enforcement program, claiming OSHA's review "is not sufficient to assess a state's effectiveness in protecting workers. OSHA has not designed a method to determine that state plans are at least as effective as federal OSHA regulations in reducing injuries and illnesses." Chairman Walberg stood by his support of the agency's review process, claiming that "OSHA has stepped up its scrutiny of state plans, and in many ways, this is welcomed. We want to ensure every safety program is producing results and protecting workers. However, OSHA has not experienced this same level of scrutiny, which is why I will be asking the Government Accountability Office to conduct a comprehensive review of OSHA's enforcement program using the same standards of success OSHA uses to evaluate state plans."

National Safe Digging Month Breaks All Records

As reported in several NUCA publications, the association represents the excavation community in the Common Ground Alliance (CGA). NUCA was happy to celebrate and promote National Safe Digging Month (NSDM). As we enter the warmer months of the year, excavation activities, whether by commercial excavators or homeowners working in their gardens, will increase significantly. NUCA and the CGA remind excavators of all stripes: before you reach for that shovel, remember to call 811, the national call-before-you-dig number, to ensure that buried utility lines in the area of excavation are marked. NSDM was designated to remind all excavators that America's underground infrastructure is made up of a complex network of pipelines, wires and cables. This year's NSDM was the most successful ever, as April was the busiest month in the history of Call811.com with an impressive 34,000 hits. Additionally, this year's NSDM enjoyed the most media exposure for 811 during any month since the phone number's inception. State governments also went into overdrive, as governors have issued state proclamations naming April as National Safe Digging Month in 47 states, also a new CGA record. 811 awareness and NSDM were covered by scores of outlets in print, radio and television media. NUCA continues to be a proud sponsor of the CGA and we were happy to promote NSDM with our friends and colleagues in the CGA.

Small Business Committee Examines Regulatory Burdens

The House Small Business Committee recently held a hearing to examine the burdens associated with compliance with federal regulations. The hearing, entitled, "Lifting the Weight of Regulations: Growing

Jobs by Reducing Regulatory Burdens," included discussion of the Regulatory Flexibility Act (RFA) of 1980, which requires federal agencies to consider the financial and operational impacts of their rules on small businesses. Since the RFA's enactment, the administrations under presidents Clinton, George W. Bush and Obama all have restated the importance of the RFA and the need for relief from unnecessary and duplicative regulations. Despite RFA requiring periodic examination by agencies of their rules, many Republicans in Congress believe these examinations don't go far enough. 

The panel discussed new legislation, the Regulatory Flexibility Improvements Act (HR 527) and the Small

Business Size Standard Flexibility Act (H.R. 585), both of which are designed to remove loopholes in the RFA. Committee Chairman Sam Graves said the bills "are designed to make sure that agencies will care that the RFA is on the books. The bills will close loopholes used by agencies to avoid compliance with the RFA, require a better assessment of the impacts that regulations will have on small businesses and other small entities, force agencies to perform better periodic review of rules, and grant the Chief Counsel for Advocacy at the Small Business Administration greater powers for enforcement of the RFA."