Government support for small business praised in Kansas visit from Biden cabinet member

ABILENE — State and federal officials praised government support for small businesses and the legacy of Dwight D. Eisenhower during a visit to the former president's boyhood home.

"Small businesses are at the heart of every community in America, they are that backbone," said Isabel Guzman, administrator of the U.S. Small Business Administration and a member of President Joe Biden's cabinet. "Our mission at the SBA is really about nurturing the entrepreneurial spirit. ... It's beyond parties; it's not about politics. It's really about our main streets; it's about the businesses."

Dignitaries visited the Eisenhower Presidential Library and Museum on Tuesday to recognize the 70th anniversary of the Small Business Administration, which was established by a law signed by Eisenhower in 1953.

U.S. Sen. Roger Marshall, R-Kan., asked attendees to raise their hand if they got their start with a small business loan.

"I just wish Ike was here to see that," he said.

Mary Jean Eisenhower said the SBA serves as "a hand up, not out" for small businesses and that her grandfather, who grew up in poverty, would have been "thrilled to know its success."

"If SBA had existed in granddad's time, he would have been a prime candidate," Eisenhower said. "He had the wherewithal, he had the will, but he didn't have the resources."

Politicians praise Small Business Administration

Marshall said the SBA is an example of Eisenhower's "knack for putting government to good use."

"The SBA serves as the spark for small businesses and various programs that are essential for those that just need one opportunity to take their business from a concept to a reality, to take it from your basement, to take it from your garage, to take it to a new building where you can actually employ some people," Marshall said. "The SBA empowers small businesses."

Guzman said investing in small businesses has been effective. Her agency touts that some of America's biggest companies got early help from the SBA, including Nike, Apple and FedEx.

"We've seen historic rates of entrepreneurship," she said. "We've also seen so many of those businesses use those dollars to create more jobs, to expand and grow."

Kansas communities depend on their small businesses to create jobs, she said.

"We need to continue to invest in them and make sure they have access to capital, that there are no banking deserts in rural communities and that they can get the SBA's programs," Guzman said.

She reflected on the seven-decade history of the agency, its future and Biden's Investing in America agenda. She and U.S. Rep. Sharice Davids, D-Kan., touted legislation passed by Congress and signed into law by Biden, such as the American Rescue Plan, the bipartisan infrastructure law, the CHIPS and Science Act, and the Inflation Reduction Act.

Davids also lauded the APEX megaproject legislation at the state level.

"I think that anytime we have major economic development opportunities presenting themselves, Kansas wants to be competitive," she said.

"Entrepreneurship, problem solving, the grit and determination that's necessary to be a successful entrepreneur is baked into the DNA of our entire state," Davids added.

Lt. Gov. David Toland said 99% of businesses in Kansas are small businesses, and they employ nearly half of the state's workforce.

"That is a higher rate than the national average for states," he said. "This means without a doubt that Kansas small business owners are the engine that is driving our economy and keeping our communities vibrant and strong."

Toland, who is also commerce secretary, touted economic development efforts in Gov. Laura Kelly's administration, which have exceeded promises of $17 billion in private investment with more than 61,000 jobs to be created or retained.

"It doesn't happen by accident," Toland said. "It's first and foremost about the guts and the dreams and the brains of entrepreneurs. And then with our state, local and federal partners, working together to support them to make those dreams a reality."

Kansas officials praise SBA's efforts during COVID-19 pandemic

Mary Jean Eisenhower praised Guzman's work during and after the height of the pandemic.

"She was assigned by President Biden at probably one of the worst possible times — if you're not into pressure — that you could possibly take, and through that you have pulled people through, you have save livelihoods, you have saved dreams," she said.

Marshall praised the Paycheck Protection Program, and Toland said the SBA's economic injury disaster loans "kept so many small businesses alive" and praised federal and state programs.

"It's real people that we're talking about when we use these acronyms," he said. "It's real human beings who are trying to meet payroll, who are trying to pay the rent or trying to stay alive."

Guzman did acknowledge the SBA's estimated potential fraud of $36 billion, most of which happened in 2020 during "a mass rush for speed in trying to help save businesses." The administration has since "been able to right the ship" and is better positioned "to keep the American taxpayer dollars we use for most the effective purposes."

Politicians see room for improvement

Davids said small businesses face challenges with broadband access, supply chains, inflation and a workforce shortage. She touted federal legislation on infrastructure, inflation and microchips.

Marshall said a lack of workers in particular is "what's limiting our growth in the state."

Guzman said workforce training programs, immigration reform and supporting child care can help.

"I've heard multiple times around the country that immigration policy needs to be fixed, that Congress needs to address this issue because they need workforce," she said.

Marshall urged Guzman, as member of Biden's cabinet, to be a voice in the White House on the regulatory burden on small businesses.

"We're frustrated with the time and cost imposed upon small business by this administration's added regulations," Marshall said.

He pointed specifically to the Labor Department's proposed change to the overtime pay threshold, the National Labor Relations Board's proposed rule broadening the definition of a joint employer and community bank opposition to newly imposed consumer financial protections.

Marshall lauded the agency's support for veteran-owned and Hispanic-owned small businesses in securing federal government contracts, as well as the growth of women-owned businesses in Kansas. But he also vowed to better help minority-owned and veteran-owned businesses in Kansas, which have seen "essentially no growth over the past decade."

Despite the challenges, Toland is optimistic about the state's business environment.

"There has never been a better time for Kansas entrepreneurs to dream big and to reach high," he said.

Jason Alatidd is a statehouse reporter for the Topeka Capital-Journal. He can be reached by email at jtidd@gannett.com. Follow him on Twitter @Jason_Alatidd.

This article originally appeared on Topeka Capital-Journal: Kansans praise government help for small business as Eisenhower legacy