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U.S. Rep. Schneider pushes bill to help startups

U.S. Rep. Schneider pushes bill to help startups

February 18, 2014

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Today's award for good intentions goes to Congressman Brad Schneider, D-Deerfield, who wants to make it easier for small startup companies to get on their feet.

At a round-table meeting with local entrepreneurs today, Mr. Schneider unveiled a bill that would direct the U.S. Small Business Administration to offer financial, professional and other aid to business accelerators, a type of incubator designed to nurture fledgling enterprises, many of them in the digital and biotech space.

"Startups represent one of the most important segments for accelerating our economy, but lacking the necessary support and funding, too many of our entrepreneurs' ideas and innovations never get off the ground," Mr. Schneider said in a statement. "The Accelerate Our Startups Act will provide critical support."

Mr. Schneider lined up backing from Howard Tullman, a veteran entrepreneur and CEO of the highly successful 1871 tech hub in the Merchandise Mart. He termed the proposal "well-reasoned and impactful" and said it would "allow incubators to grow and thrive."

But the bill, which would authorize the SBA to offer grants, space and technical assistance from lawyers and accountants, only would appropriate $5 million a year for four years. And it's being introduced by a Democrat into a GOP-dominated House during an election year in which Republicans aren't about to pass many bills benefiting Democrats, however laudable.

Still, there's nothing wrong with the idea. Particularly with the clause saying that any federal money would have to be matched at least dollar-for-dollar with local-government cash or private capital.

LIke I said, good intentions.

Follow Greg on Twitter at @GregHinz.

Rep. Brad Schneider introduces legislation to support startup businesses

By: Rep. Brad Schneider's Office | Submitted

Rep. Brad Schneider meets with Meg Barnhart of Zen of Slow Cooking and Susan Kelsey, economic development officer of Lake Forest and head of Business Accelerator.

Rep. Brad Schneider has introduced legislation to help support startup businesses. 

U.S. Congressman Brad Schneider (IL-10) introduced the Accelerate Our Startups Act (HR 4059), which expands public-private efforts to help startup companies get off the ground and achieve success.  

The Accelerate Our Startups Act would provide Small Business Administration resources to make growth accelerators—entities that work with emerging companies to more rapidly grow their businesses—more accessible to startups across the country. Business accelerators provide startup businesses with critical support these emerging businesses typically lack, including legal assistance, shared-working space or accounting classes.

“Startups represent one of the most important segments for accelerating our economy, but lacking the necessary support and funding, too many of our entrepreneurs’ ideas and innovations never get off the ground,” Schneider said. “The Accelerate Our Startups Act will provide critical support to startup businesses by expanding the federal assistance available to growth accelerators working to provide the essential resources and backing our entrepreneurs need so they can go from startup to Fortune 500.”

"The proposed legislation put forth by Congressman Schneider is a well-reasoned and impactful program that will have long-lasting positive impacts on the entrepreneurial community and the economy in general," said Howard Tullman, CEO of the 1871 technology hub. "Startups, like the hundreds housed at 1871 in Chicago, create thousands of jobs and billions of dollars of new business around the country each year. This bill will allow incubators to grow and thrive which is essential as we support these companies in their early and most vulnerable stages."

  

Rep. Schneider announced the legislation at a roundtable discussion with local entrepreneurs and representatives from growth accelerators at the Lake Forest Business Accelerator on Tuesday.