For Immediate Release
July 8, 2009

Contact:
Aketa Marie Simmons
202-579-5571

WASHINGTON, DC – Today, Representative Marcia L. Fudge (OH-11) stood firm for women and minority owned small businesses.  In a bold move, she voted against the Small Business Research and Innovation Act, stating it does not adequately support underrepresented entrepreneurs.  Following her vote, Rep. Fudge issued the following statement:

"The Small Business Research and Innovation Act will unintentionally crowd out the very small businesses it was designed to assist.

For the first time in the program's history, the bill allows venture capitalist-backed businesses to apply for grants.  Without sufficient safeguards, taxpayer funded grants will flow disproportionately to venture capital firms.  Consequently, the Act will reduce the amount of funds available for small businesses.

The decrease in available funds will be felt most severely by women and minority owned small businesses, as only 2% of venture capitalist investments go to minorities and only 2% to women. Moreover, the vast majority of these businesses are on the east and west coasts.  We need to ensure that Ohio small businesses have equal opportunities to create jobs and stimulate the economy.

During the consideration of this bill, I and several other Members of Congress attempted to provide safeguards to protect small businesses, but we were rebuffed.  I am disappointed that fellow Representatives failed to advocate for the equal inclusion of all small companies.

Small businesses are the cornerstone of a thriving economy, as they create 60% to 80% of all new jobs.  As I stated before, Congress must provide sufficient support to all small firms, in order to truly strengthen our economy."