S.1608 - Supporting New Entrepreneurs and Workers By Undoing and Streamlining Inhibitors to Nascent Enterprises through Supporting Successful Efficiency Solutions Act; Supporting NEW BUSINESSES Act (119th Congress)
Summary
S.1608, the "Supporting NEW BUSINESSES Act," aims to streamline the process of forming new businesses by requiring the Small Business Administration (SBA) to provide awards to state and local governments that implement innovative policies to improve business formation. The bill amends the Small Business Act to establish these annual awards, targeting communities of varying sizes. The goal is to reduce redundancies and inefficiencies in the business formation process, making it easier for entrepreneurs to start new ventures.
Expected Effects
The bill's passage would likely lead to increased competition among state and local governments to develop and implement streamlined business formation processes. This could result in reduced paperwork, consolidated resources, and more efficient procedures for starting a business. Ultimately, this could encourage entrepreneurship and economic growth at the local level.
Potential Benefits
- Streamlined business formation processes, reducing the time and cost required to start a new business.
- Increased innovation in state and local government policies related to business formation.
- Enhanced access to resources and information for entrepreneurs through user-friendly online portals.
- Reduction of duplication and inconsistencies in requirements across different jurisdictions.
- Potential for increased economic activity and job creation as a result of easier business formation.
Most Benefited Areas:
Potential Disadvantages
- The effectiveness of the awards program depends on the criteria used by the SBA to select award recipients; poorly designed criteria could lead to ineffective or misdirected efforts.
- The bill does not provide specific funding for the awards, which could limit the SBA's ability to implement the program effectively.
- There is a risk that some state and local governments may prioritize streamlining processes at the expense of other important considerations, such as environmental protection or worker safety.
- The bill may not address other significant barriers to entrepreneurship, such as access to capital or healthcare.
- The impact of the bill may be limited to the specific communities that receive awards, without necessarily leading to broader reforms at the state or national level.
Constitutional Alignment
The bill appears to align with the spirit of promoting the general welfare, as outlined in the Preamble of the US Constitution, by encouraging economic growth and entrepreneurship. Congress has the power to regulate commerce and to make laws necessary and proper for carrying into execution the powers vested by the Constitution, as per Article I, Section 8. This bill falls under that purview as it relates to supporting small businesses, which are integral to interstate commerce.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).