Government Spotlight | July 9, 2024

Mayor Ginther Elected President of the U.S. Conference of Mayors

Columbus Mayor Andrew Ginther has been elected president of the U.S. Conference of Mayors (USCM). Ginther was elected by his fellow mayors during the group’s annual meeting in Kansas City, MO. He will serve a one-year term as president.

National Small Business Association (NSBA) 2024 Politics Survey

Every two years, NSBA conducts a survey on what small businesses think about the U.S. political system. This survey is incredibly informative and gets a great deal of press, not to mention provides policymakers and candidates critical insight into what small-business constituents need.

Take the survey: https://www.surveymonkey.com/r/NSBA-Politics-2024

Legislative Redistricting Group Submits Signatures

A group seeking to put redistricting in the hands of a 15-member citizens group Monday submitted its signatures ahead of the deadline to make the November ballot. Citizens Not Politicians submitted 731,306 signatures to the secretary of state’s office. They need to have 413,487 valid signatures, or 10 percent of the total votes cast in the 2022 gubernatorial election, in order to be on the ballot. The group submitted 810 boxes of signatures collected from all 88 counties, and collected at least 5 percent of the total vote cast for governor in 57 counties, well above the 44 county requirement.

FY25-26 Capital Appropriations

Gov. Mike DeWine, joined by Lt. Gov. Jon Husted, Speaker Jason Stephens (R-Kitts Hill) and others, signed capital budget HB2 (Cutrona-Upchurch). DeWine praised the work of the General Assembly, noting that all three capital budgets and all three operating budgets he has signed as governor were passed overwhelmingly and on a bipartisan basis. DeWine broke down funding in the $4.2 billion capital bill, saying the bill provides lifelines of support for mental health care.

Sen. Stephanie Kunze (R-Hilliard), appearing on behalf of Senate President Matt Huffman (R-Lima) and Senate Finance Chair Matt Dolan (R-Chagrin Falls), said the Senate had focused its work in the capital budget on significant increases to mental health services. She also highlighted other projects including libraries, police and fire facilities.

The Columbus Region secured $141.5 million for a total of 80 transformational projects. Highlights include the Center for Advanced Technologies at CSCC, Transportation Research Center, Downtown Capital Line, CMH Airport Terminal, Columbus Symphony, and Nationwide Arena. Additionally, many projects under $1 million received funding, supporting significant regional impacts.

SBA Announces 7(a) Working Capital Pilot Program

The U.S. Small Business Administration (SBA) announced the 7(a) Working Capital Pilot (WCP) Program. This program offers newly structured lines of credit from 7(a) lenders. Backed by the SBA, WCP lending is designed to give greater flexibility than traditional term loans, including transaction- and asset-based loans, as well as specific purpose loans, such as for electricians, plumbers, and other small contractors who may need a line of credit to perform work on certain qualifying jobs.

Moreover, the program aims to address the need for working capital among small businesses seeking to expand operations or to undertake new projects. The greater goal of the SBA in launching the WCP is to reduce the reliance on credit cards and other expensive capital sources by small businesses. The asset based WCP loans will provide a more sustainable long-term financial solution for small businesses looking to access capital earlier in the sales cycle.

The WCP will offer credit lines not to exceed $5 million, which will have an annual fee, interest rates based on the prime rate plus 3% to 6.5%, and SBA guaranties of 75% for loans over $150,000 and 85% for loans under $150,000. The WCP is built around a flexible annual SBA upfront guaranty fee that allows small businesses to customize the loan to their individual needs. This fee structure reduces the cost of loans with shorter maturities, allowing a small business to pay the SBA upfront guaranty fee on an annual basis.

The WCP Program introduces several key features:

• Participating 7(a) lenders can now offer both asset-based and transaction-based working capital lines of credit.
• The maximum loan size is set at $5 million, with proceeds available for both domestic and international transactions.
• Permissible interest rates for the program will range from prime plus 3% to 6.5%.

The WCP will launch later this year, with more details on the program being posted at www.sba.gov in the near future.

Proposed Federal Legislation Would Support AI Training 

U.S. Senators are considering new skills and training on AI for small-business owners. Senate Commerce Committee Chair Maria Cantwell (D-Wash.) and fellow committee member, Sen. Jerry Moran (R-Kan.) introduced bipartisan legislation that aims to equip small businesses with artificial intelligence training tools.

The Small Business Artificial Intelligence Training and Toolkit Act of 2024 would require the Commerce Department to create tangible resources for small businesses to help with emerging AI technologies.

Several Members of Congress are seeking to craft regulations that boost AI’s potential and protect small-business owners from harm. A number of recent studies suggest that small businesses across industries, such as cybersecurity and health care, have been embracing AI to assist with marketing, research, customer service, and other tasks.

Legislative Summary:

• Develops AI training resources and toolkits for small businesses, led by the DOC, in coordination with the SBA.
• Includes new trainings on how to use AI or emerging technologies to improve financial management and accounting, business planning and operations, marketing, supply chain management, government contracting and exporting. It also directs specific AI training for small businesses in rural and tribal communities, and small businesses involved in advanced manufacturing.
• Provides new DOC AI training resources to small businesses through SBA resource partners, including Small Business Development Centers, Women’s Business Centers, SCORE, Veteran Business Opportunity Centers and the Apex Accelerator.
• Authorizes the DOC Secretary to create a grant program for organizations providing AI trainings developed under this bill. It allows gift authority to use private sector and philanthropic donations to support these grants, with at least 25 percent of any grant funds going toward small businesses located rural or underserved communities.
• Requires the Secretary of Commerce to update AI training materials and toolkits at least every two years.
• Requires biannual reporting to Congress on the impact of AI training and toolkits developed and distributed under this bill.

Dez Bryant
Vice President of Government Relations
dezbryant@columbus.org