The Chair of the Association of Equipment Manufacturer’s (AEM) Small Enterprise Committee, Richard A. Brown, will testify on Oct. 28 before the House Committee on Small Business at 10 a.m. EST. Brown is the President and COO of agricultural equipment manufacturer Krause Corp. based in Hutchinson, Kan. The hearing is on “Creating Opportunities for Small Businesses in an Economic Recovery.”
In his prepared statement, Brown expressed his concerns to the committee for small businesses in the U.S. obtaining credit during the present economic crisis. As an example, Brown cited one business person from rural South Carolina who “had an operating line of credit with (a bank) that was secured by a stock portfolio, but with the unraveling of the market their line was frozen…Now (he) is spending most of his time trying to resolve the issue when he should be working to secure orders in this down market.”
Brown pointed out that the crisis is also now hitting agriculture. “The economic foundation for countless small businesses on thousands of Main Streets throughout the country is agriculture,” he said. “The tightening of the credit markets is coinciding with a rapid rise in the cost of agricultural inputs, such as fertilizer, seed, chemicals and fuel.”
Brown will recommend to the committee that Congress pursue the following items:
1) Extend the Bonus Depreciation and Enhanced Expensing Provision.
These provisions were originally in the Economic Stimulus Act of 2008 and will help multiple sectors purchase tools and equipment, with modern technology, that can increase their productivity.
2) Invest in Infrastructure.
This investment will increase equipment demand, create good jobs and improve our nation’s competitiveness by making badly needed repairs and upgrades to our aging infrastructure, especially transportation and water infrastructure.
3) Help Small Businesses Export.
As an example, passage of pending Free Trade Agreements (FTAs) will eliminate tariffs and boost American companies’ competitiveness in the global marketplace, thus helping companies remain operating to provide jobs and contribute to local, state and national tax bases.
4) Help Control Rising Health Care Costs.
These costs greatly impact manufacturers’ ability to stay in business.
5) Continue the Government’s Commitment to Renewable Fuels.
Such a commitment benefits the environment, national security and the health of rural communities dependent on agriculture.
AEM is the North American-based international trade group representing the off-road equipment manufacturing industry. Its members manufacture equipment, products and services used worldwide in the agriculture, construction, forestry, mining and utility sectors. AEM is headquartered in Milwaukee, Wis., and has offices in the world capitals of Washington, D.C.; Ottawa, Canada; and Beijing, with a European presence in Brussels, Belgium. For more information, contact Liz Stock (phone 414-298-4152) email lstock@aem.org.