Mock Convention’s signature initiative this cycle is Mock Con Meets Main Street, where we are dedicated to utilizing Lexington and Rockbridge County small businesses, connecting students and faculty to local Lexington businesses, and supporting small businesses at their inception by encouraging student entrepreneurs. Understanding the state and federal policies and historical background that impacts each business allows us to better serve the local businesses of Lexington. 

The Republican Party is largely known for its appreciation and dependence on pro small business policies.  This was especially clear during the Covid-19 pandemic, where congressmen prioritized legislation aimed at protecting small businesses, shopping small, and brainstorming ways to protect and support small business owners and employees.  While the discussion around small businesses might seem like a relatively new obsession, it dates as far back as the 1920s, during Calvin Coolidge’s presidency.  During the Roaring ’20s, Coolidge famously declared that “the business of America is business”. Since then, Americans have demonstrated a reliance on small businesses for economic prosperity.  In 1953, the Small Business Administration (SBA) was created, a federal agency aimed at providing training for small enterprises financing land contracts with government agencies. On a Congressional level, in 1941, the U.S. House of Representatives created the first House Select Committee on Small Business. Its establishment was in part due to the growing number of small business activists and organizations advocating for more protections from the government to create better-suited legislation for America’s growing number of small businesses. It was reauthorized in 1975 as a permanent standing committee and is still active and revered today.  The Senate has a similar committee, its own Committee on Small Business, which serves the same role as the House Committee. 

On the state level, the post COVID-19 economy in Virginia has resulted in exceptional growth in the number of small businesses across the nation, including in Virginia, where 46% of Virginia employees work for small businesses. Additionally, Virginia’s small business employment growth rate has exceeded the national rate, proving that Virginia is a top state for small businesses to thrive despite the pandemic making things harder for entrepreneurs. The pandemic introduced new challenges to small businesses in Virginia, such as hiring difficulties, wage rates, and supply chain shortfalls. However, the Virginia General Assembly passed legislation aimed at aiding small businesses in their recovery process by providing financial resources and assistance with staffing challenges. 

Governor Glenn Youngkin has long supported small businesses and understands their impact on the economy. In December, he announced that Virginia has been approved to receive up to $230 million by the U.S. Department of the Treasury under the State Small Business Credit Initiative (SSBCI) program. The purpose of these funds is to accelerate Virginia small business’ creation and growth as well as increase access to both private and public capital.  

Additionally, Governor Youngkin is pushing for a $1 billion tax relief program that focuses on cutting the top rate for individual income taxes, cutting the corporate income tax rate, and creating a 10% credit targeted for small businesses. This credit would allow for small business owners to keep more of their hard-earned money—reducing the tax burden for small businesses in Virginia. The bill passed in the House of Delegates in January but is unlikely to pass the Democratic controlled Senate of Virginia, as members have raised concerns with the new policies. Budget negotiators are hoping to meet next week to discuss the deadlock, and this is the first sign of a breakthrough since the Virginia General Assembly adjourned on February 25th. 

Small business policy also gains national traction and is advocated in several initiatives in each Congress. Most recently, per a U.S. Chamber of Commerce Small Business Policy report, small businesses in the U.S. have seen several recent victories.  The Consolidated Appropriations Act of 2023 (H.R. 2617), part of the omnibus, incorporated three key items pertaining to small businesses.  The first is a crackdown on recent retail theft.  Per the chamber’s recommendation, the INFORM Consumers Act (S. 936) was included in the omnibus and cracked down on criminals who buy stolen goods or resell for profit using online sales platforms.  The second victory is a boost for small business benefit offerings.  The omnibus included broadened benefits for 401(k)s, which are vital for small businesses to maintain and attract talent.  It also doubled tax credits to help administrative set-up costs and issued exemptions to firms with 10 or fewer employees.  Finally, the Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Act (H.R. 935) narrowed the SEC’s oversight into the purchase and sale of smaller privately held firms.  

In this Congress, The House Small Business Committee, chaired by Representative Roger Williams (R-TX-25), also has recent policy updates pertaining to small businesses.  First, the committee released a statement criticizing President Biden’s recent budget proposal.  The committee argued that the budget does not make any adjustment to the Democrat’s increased spending and increased taxes on families and small businesses. Because of record-high inflation, it has been hard for small businesses to thrive and maintain steady revenues.  However, in January, three key bills passed.  First was the Small Business Advocacy Improvements Act (H.R. 399), which allows the SBA’s Office of Advocacy to examine and speak on behalf of small businesses involved in international economic and trade issues.  Second is the Investing in Main Street Act (H.R. 400), which increased the amount that can be invested in small business investment companies.  Finally, there was the Microloan Transparency and Accountability Act (H.R. 449), which requires more reporting on risk from the SBA.  Aside from what has passed, the committee has introduced several other bills that aim to protect and bolster small businesses across the U.S., but none have gone beyond the introduction phase of a bill becoming law.  The 2024 Republican Party platform will undoubtedly include several policy provisions on small business protections.  

In Lexington, small businesses are crucial to the economy of the town and Rockbridge County.  Small businesses have found and continue to find their place in Lexington, and we are excited to expand our partnerships this cycle.   

• Claire Cerone and Martha Ernest, Platform Chair and Director of Community Outreach

References: 

1. https://advocacy.sba.gov/2022/08/31/2022-small-business-profiles-for-the-states-territories-and-nation/ 

2. https://www.washingtonpost.com/dc-md-va/2023/03/11/virginia-assembly-budget-youngkin/ 

3. https://www.uschamber.com/small-business/3-wins-for-small-business-in-the-end-of-year-omnibus-bill 

4. https://smallbusiness.house.gov  

5. https://learn.saylor.org/mod/page/view.php?id=5546