Debate continues over the Small Business Expansion Act. Passed in the House in September and now awaiting action in the Senate. The bill, H.R.3567, would allow for small companies that are majority-owned by VC firms to continue to qualify for small-business programs. Biotech and high-tech firms support the measure because the backing they require to develop their products can be extensive. Critics contend that the bill provides unfair advantages, such as access to Small Business Innovation Research (SBIR) grants, for companies with deep pockets, thereby depriving needier companies of the funds. Jere Glover, Executive Director of the Small Business Technology Council describes the bill as “the worst piece of small-business legislation I’ve seen in 25 years.” The Small Business Administration agrees on this point.

Congressional representatives need to hear from small businesses regarding this legislation.  To identify members of the House of Representatives, go to http://www.house.gov/writerep. 

As general advice and examples of what a letter to your Congressperson should look like, check out http://www.ams.org/government/contact.html, http://www.healthcare-now.org/action/write.htm, and http://usgovinfo.about.com/library/weekly/aa020199.htm.  In short, keep it brief (1 page or less), explain why you are writing and why it is an important issue, and request a specific action.  

Read more about the controversy and its implications at www.latimes.com/business/printedition/la-fi-
smallbiz27sep27,0,677623.story?coll=la-headlines-pe-business