SBAC aims to champion a robust small business agenda

The latest data from the U.S. Small Business Administration shows that more than 97% of Illinois businesses have fewer than 20 employees.

These small businesses are the backbone of our economy, fostering economic development and supporting local communities throughout our state. It is imperative that Illinois politicians support the small business that drive our economy and this year, we have our most robust legislative agenda to date.

For starters, we are calling on policymakers to support the small business community by allocating 50% of tax incentives for businesses with 50 or fewer employees. Illinois politicians often focus on luring large corporations to our state, or retaining those threatening to relocate to greener pastures, without also supporting the small businesses that have been here through thick and thin.

Recognizing the value large companies bring to our economy, policymakers also should ensure small employers can procure a fair share of tax incentives and compete on a more level playing field.

To make more incentives available to small businesses, we are advocating for the reinstatement of small business job creation tax credits. These incentives were extremely meaningful but inexplicably expired in 2016.

By bringing back this program, businesses with 50 or fewer employees will be able to procure a $2,500 tax credit when they create a net new job. These tax credits are straightforward and do not require small business owners to wade through a difficult and complex process. The data shows these tax credits will be revenue positive over time, so allocating reasonable funds for these credits will benefit small businesses and the state.

Data from the U.S. Small Business Administration also shows there are more than one million Illinois entrepreneurs without employees. This shows the tremendous entrepreneurial spirit in Illinois, where people are ready to take on the challenges of owning and growing their businesses. We are championing several bills that will support entrepreneurs and create an environment that facilitates their success.

The Seed Act (Supporting Entrepreneurs and Economic Development) paves the way for folks who have been laid off to start businesses while also receiving unemployment benefits. Similar laws have been enacted in other states, giving a boost to aspiring entrepreneurs ready to take the next step toward becoming business owners.

This will not increase the amount of unemployment benefits people will receive but will help them launch a business after being separated from their employment. It will provide a runway for folks to launch their businesses, enhancing the number of entrepreneurs building businesses in Illinois.

Entrepreneurs can be stymied by burdensome and overly restrictive occupational licenses. Accordingly, we are calling for a temporary pause on new occupational licenses until such time as a process is established to provide legislators better data and information about the need for new or expanded licenses.

Providing better data to legislators when they analyze a potential license will not only prevent needless red tape from stopping potential business owners, it also can supplement the workforce. There is more on our plate this legislative session, including working on solutions to bring down the cost of rising health insurance for small businesses and bringing needed transparency to the process of awarding government contracts.

We are sprinting to advance our agenda as the session moves forward in Springfield, and grassroots engagement will be the key to our success.

I can say with confidence that when legislators hear from their constituents, they are far more likely to sponsor and support legislation. An engaged small business community, speaking with a strong and unified voice, can provide the spark that is needed to drive legislation home.

• Elliot Richardson is co-founder and president of the Small Business Advocacy Council.