03/31/2006 GAAS:205:06 FOR IMMEDIATE RELEASE Print Version |
Gov. Schwarzenegger Hosts Roundtable with Hispanic Business Leaders, Announces Joint Effort to Ease Access to Capital for Small Businesses
"Small businesses are the backbone of our economy. We must do everything we can at the state and federal level to make sure they succeed," said Gov. Schwarzenegger. "I want to thank Administrator Barreto and the Small Business Administration for their hard work to expand programs that help California's small businesses. I look forward to many, many more programs like this and to formally establishing a closer partnership with the SBA very soon."
Vintage SBIC, the SBA-backed venture capital company, will target underserved markets and overlooked industries such as manufacturing, business services, and consumer products/retail companies. With up to $111 million in capital, Vintage SBIC is seeking to invest between $5 and $10 million in companies with annual revenues of between $25 and $250 million.
Earlier in the week, the Governor signed an executive order that instructs the state's agencies, departments, boards and commissions to ensure that the State's procurement and contracting processes are administered in order to meet or exceed the 25 percent small business participation goal. State entities that do not meet the 25 percent goal must submit an Implementation and Corrective Action Plan to the Department of General Services. In addition, the California Small Business Advocate is directed to conduct five regional workshops within the next 12 months focusing on the establishment and growth of small businesses and increased contracting opportunities for them within the state. In addition, the Schwarzenegger Administration signed a Strategic Alliance Memorandum that joins the state and the SBA with the common mission of helping start, maintain, and expand small businesses in California.
Tuesday, the Governor also launched the California Business Portal (www.calbusiness.ca.gov), a web site aimed at helping entrepreneurs from all over the world start small businesses in California. The site is a one-stop shop for businesses to access information and resources for starting, growing, financing, expanding or relocating a business to California.
The Governor has taken additional steps to help foster California's economic recovery, including:
- Job Creation: Gov. Schwarzenegger has made job creation a priority for his administration. Prior to the Governor taking office, California's employment slipped by over 360,000 from January 2001 to July 2003 despite adding almost a million residents. California's unemployment rate grew by almost 50 percent over this period. Since the Governor took office in Nov. 2003, California has added 577,000 jobs and the unemployment rate has dropped from 6.8 percent to 5 percent, or 1.8 percent. In comparison, nationwide, the unemployment rate has fallen just 1.3 percent. (See chart below for a regional breakdown of job growth.)
- Cutting Taxes: Within the first hour of taking the oath of office, the Governor reversed the car tax increase and returned $4 billion to Californians. Since then, he has fought every effort to raise taxes including efforts to gut California's landmark Proposition 13 which protects homeowners from losing their homes to skyrocketing property taxes. He also opposed efforts to make it easier for the legislature to raise taxes.
- Trimming the State's Structural Budget Deficit: The Governor grew revenues without raising taxes while keeping spending increases in check to help cut California's budget deficit from almost $20 billion when he took office to less than $5 billion - improving the state's bond rating and restoring integrity to the budget. At the same time, he has increased education spending by more than $7 billion over the last two years.
- Workers Compensation Reform: Declaring its runaway rate increases the "poison of our economy," Gov. Schwarzenegger fought to reform the state's workers compensation system, lowering premiums by more than 40 percent and saving employers billions of dollars this year alone. The reforms also used objective medical standards to ensure that workers would be compensated based on the extent of their injuries.
- Reducing Frivolous Lawsuits: The Governor campaigned to curb egregious abuses of the legal system while preserving the ability of those with actual damages to use the courts to receive fair compensation. This effort prevents litigation by anyone without damages to harass small businesses with lawsuits.
- Promoting California: Gov. Schwarzenegger has traveled to China, Japan and Israel to invite tourists to visit California, businesses to invest and create jobs in the state and for our global neighbors to savor California grown agricultural products. He has also personally starred in a billboard promotion reminding companies from across the country that California is open for business.
This event is the fourth in a series of events where the Governor has touted California's economic recovery under his stewardship.
Link to Executive Order S-02-06
Link to Chart Illustrating the Governor's Progress in Reducing California's Operating Deficit
Link to Breakdown of Regional Job Creation Data
Link to Fact Sheet on California's Economic Resurgence Under the Governor's Leadership
