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senate Bill S. 1292

Providing Economic Support to Businesses in Areas Affected by Disasters and Base Closures

Argument in favor

It can sometimes take decades for an area’s economy to recover from a disaster, and military base closures can have a similar impact on small businesses — so broadening the HUBZone program to fit that need makes sense.

Peter's Opinion
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09/29/2016
I would like to see the requirements be a little more strict to have more than 35% of employees being required to be in the HUBzone, and to go a step further to require their services and goods to be made available on the market in the HUBzone (can't just be a remote business), as well as have an evaluation process to ensure that these businesses are actually sustainable and thus will thrive after the assistance, rather than tanking right after. However, I still think this bill is overall helpful, seems like a good idea, and should thus be implemented.
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Aidan-WC's Opinion
···
09/29/2016
Absolutely! Regions scattered across the United States have been evidently devastated from natural disaster scenarios negatively influencing there communities in manners that demonize their infrastructure, economy, transportation, and it hinders their ability to still maintain their occupation as well. While some may strongly justify that that if this circumstance were to occur it should be a state or local county implementation proposed by local legislation federal funding may behoove our society to prioritize that all communities abroad are sufficiently funded in a fashion that will lead to a prosperous future. For instance, the incident that was extremely significant in our society Katrina marked a instantaneous disaster on Louisiana, not giving them the proper time management to secure their residents and begin evacuation. Communities after being struck by harsh nature most certainly deserves to have its overall economy, infrastructure, habitat, environment rehabilitated
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Ron's Opinion
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07/31/2015
You should use some of those funds to remodel housing on closed bases to shelter veterans and homeless.
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Argument opposed

These programs provide an unfair advantage to businesses in HUBZones, and those businesses may not even do most of their business within the zone but they can still receive those benefits.

Loraki's Opinion
···
09/29/2016
BEWARE OF GOVERNMENT HELP! This SOUNDS good, but have you ever asked yourself why the government doesn't promote self-sufficiency and independence in people? If the government wasn't working so hard to divide the American people and turn them against each other, maybe more communities would pull together to rebuild after a disaster. I'm sure this happens to some degree, but evidently not enough! Or is the prospect of getting government help just too attractive to our society today???
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jameslj's Opinion
···
09/29/2016
No. More. Crony. Capitalism. End it! If the banks want to give these folks loans, let them do it. Stop with the governmental entanglements in our economy. It's breaking it!!
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Mart's Opinion
···
09/29/2016
Sorry, that's why we buy insurance. If we bailout those that don't buy their own protection, it creates a constant moral hazard.
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What is Senate Bill S. 1292?

This bill would allow certain areas affected by disasters or base closures to qualify for HUBZone (Historically Underutilized Business Zones) status -- which provides small businesses in certain areas with preferential access to economic support and business development opportunities. HUBZone is a program that is operated by the Small Business Administration (SBA).

Qualified areas that have suffered from a disaster could obtain HUBZone status for five years in the case of major disasters, and 10 years for catastrophic disasters. There is also a provision affecting HUBZone areas that had been home to a military base which has since been closed, that would allow these HUBZones to maintain their status for eight years. Under current law, base closure HUBZone status lasts for five years.

Businesses that participate in the HUBZone program must conform to the SBA’s definition of a small business, be majority-owned and operated by U.S. citizens, have its primary office located in a HUBZone, and at least 35 percent of its employees live in a HUBZone.

Participants in HUBZone receive a 10 percent price evaluation preference in full and open contract competitions, as well as subcontracting opportunities. They also can obtain competitive and sole source contracts. The federal government has a goal of awarding 3 percent of all dollars for federal prime contracts to HUBZone-certified small businesses each year.

Impact

Businesses and their employees that are located in HUBZones; the SBA; federal agencies soliciting competitive and sole source contracts.

Cost of Senate Bill S. 1292

A CBO cost estimate is unavailable.

More Information

In-Depth: This bill’s sponsor, Sen. David Vitter (R-LA), said that: “Designating HUBZones in struggling areas can make a huge difference helping local economies recover by getting businesses back on their feet, and this legislation will give many small businesses the tools they need to rebuild, recover, and bring jobs back.”

HUBZones have been heavily involved in military-related legislation, as Sen. Angus King (I-ME) tied a provision supporting HUBZones affected by base closures to the Senate’s version of the National Defense Authorization Act (NDAA).

In total, there are 13,795 HUBZone areas -- which includes 508 rural counties, 107 base closure areas, and 592 qualified Indian lands.


Media:


Summary by Eric Revell
(Photo Credit: U.S. Department of Agriculture / Creative Commons)

AKA

HUBZone Revitalization Act of 2015

Official Title

A bill to amend the Small Business Act to treat certain qualified disaster areas as HUBZones and to extend the period for HUBZone treatment for certain base closure areas, and for other purposes.

bill Progress


  • Not enacted
    The President has not signed this bill
  • The house has not voted
  • The senate has not voted
      senate Committees
      Committee on Small Business and Entrepreneurship
    IntroducedMay 12th, 2015
    I would like to see the requirements be a little more strict to have more than 35% of employees being required to be in the HUBzone, and to go a step further to require their services and goods to be made available on the market in the HUBzone (can't just be a remote business), as well as have an evaluation process to ensure that these businesses are actually sustainable and thus will thrive after the assistance, rather than tanking right after. However, I still think this bill is overall helpful, seems like a good idea, and should thus be implemented.
    Like (12)
    Follow
    Share
    BEWARE OF GOVERNMENT HELP! This SOUNDS good, but have you ever asked yourself why the government doesn't promote self-sufficiency and independence in people? If the government wasn't working so hard to divide the American people and turn them against each other, maybe more communities would pull together to rebuild after a disaster. I'm sure this happens to some degree, but evidently not enough! Or is the prospect of getting government help just too attractive to our society today???
    Like (23)
    Follow
    Share
    No. More. Crony. Capitalism. End it! If the banks want to give these folks loans, let them do it. Stop with the governmental entanglements in our economy. It's breaking it!!
    Like (15)
    Follow
    Share
    Sorry, that's why we buy insurance. If we bailout those that don't buy their own protection, it creates a constant moral hazard.
    Like (12)
    Follow
    Share
    Absolutely! Regions scattered across the United States have been evidently devastated from natural disaster scenarios negatively influencing there communities in manners that demonize their infrastructure, economy, transportation, and it hinders their ability to still maintain their occupation as well. While some may strongly justify that that if this circumstance were to occur it should be a state or local county implementation proposed by local legislation federal funding may behoove our society to prioritize that all communities abroad are sufficiently funded in a fashion that will lead to a prosperous future. For instance, the incident that was extremely significant in our society Katrina marked a instantaneous disaster on Louisiana, not giving them the proper time management to secure their residents and begin evacuation. Communities after being struck by harsh nature most certainly deserves to have its overall economy, infrastructure, habitat, environment rehabilitated
    Like (10)
    Follow
    Share
    You should use some of those funds to remodel housing on closed bases to shelter veterans and homeless.
    Like (7)
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    More government Not.
    Like (4)
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    Our government can't take care of everyone
    Like (2)
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    Just because the business environment changed shouldn't mean we need 'carve out' assistance. If anything change the scope to help all small businesses or none at all. This should be no more than taxes breaks or low cost loans.
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    This is a no brainer, areas that need this type of help could take years to rebuild without it.
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    Pay attention to wording base closures (BRAC). These were last done 2005, and BRAC, on paper, looks like an excellent money pool. Now you know to watch for "BRAC"
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    It's a nice idea, but this is the point of having insurance or taking out loans. The government can't very well decide which businesses will be able to sustain themselves even with help. It's a big gamble to make. Business-owners need to learn how to stand on their own two feet when these things happen.
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    This should only help small businesses without good insurance. The large companies don't need MORE subsidies.
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    Common sense... Stop encouraging businesses to build in areas they shouldn't. Base closures may be different.
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    Makes sense
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    Government assistance has never built any jobs or companies. Capitalism does work.
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    Successful businesses should be able to build themselves up. If one business can't do it another will come along to try. Keeping ineffective businesses alive has no benefit to society.
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    The con argument wants us to weep that the occasional business may get a small advantage while allowing entire communities to die. What fresh conservative hell is this? Another way for Republicans to hurt ordinary people while wrapping themselves in moral rectitude! HELL NO!
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    Cut spending. Balance the budget. Cease and desist deficit spending. Audit the Fed. No more pork for crony capitalism.
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    Beware of giving the Feds the power to pick "winners" and "losers" in a free marketplace. It would only create more fraud and cronyism.
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