BizBox on Slate: Welcome to BizBox on Slate! Sen. Kerry is running a few minutes behind, but we'll get started a few minutes after 2 p.m.

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BizBox on Slate: Welcome to BizBox! We're pleased to welcome our special guest, Sen. John Kerry, Chair for the U.S. Senate Committee on Small Business and Entrepreneurship. He's taking our questions on small biz issues. We have lots to cover, so let's get started!

Sen. John Kerry: Thank you for having me here today. I'm excited to hear directly from America's entrepreneurs. Our small businesses are the engine of our economy and we're working hard in Washington to create an environment that will help them succeed.

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North Andover, Mass.: Senator, when is your committee going to open hearings concerning DoD's Comprehensive Test Plan. At one point in time the SSBC requested that GAO study that program. The GAO reported that Small Businesses, all small businesses, suffered opportunity losses simply because eighteen of the TOP DoD Vendors have/had no requirements, nor penalities for not supporting or reporting thier pass through to small businesses.

This program, designed to run for a fiscal year, was to file a report concerning, their DoD and the test vendors, success or failure to report and push to small businesses IAW Government Law and Regulations. Well as you are aware it's been 8.5 years and not a single report has been written and recently as last Defense Budget a five-year additionally wavier was granted.

The basic concept was provide public knowledge and reporting of percentage and dollars that would allow that American Dream to be experienced by those small business ventures who can/could fill a need or provide the support to those 18 DoD Vendor IAW thier requirements as stated in thier awards. Right now know one knows what's behind the curtain concerning the spending by the chosen 18 republican friendly DoD Primes...however it's estimated into trillions that stayed within those Prime rather that being passed out into the public market place.

Senator, DoD has an Office that supports this Comprehensive Test Plan and "it's behind the curtain."

Thanks and best regards.

Sen. John Kerry: Hi North Andover.

Increasing opportunities for small businesses to sell goods and services to the federal government -- including to the government’s largest buyer, the DOD -- is one of my top priorities. One of the easiest ways for small businesses to get started in the federal marketplace is through subcontracting. So, we need to create more of those kinds of opportunities. The “test plan” you’re referring to was created in 1990, and the point was to see if comprehensive subcontracting plans would lead to more opportunities for small businesses. I agree with you that 17 years is too long to wait for an assessment of the effectiveness of the program. It’s not acceptable. I recently held a hearing in Washington on the many barriers small businesses face when they try to access federal contracts, and I will be doing more contracting oversight in the future. I will look into this issue so we can get every piece of information that will help expand small business contracting opportunities.

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Rio Rico, Ariz.: Senator,

We operate a small textile manufacturing operation on the Arizona border, and across the border in Mexico, and we have seen several of the U.S. manufacturers in Mexico flee for Asia in search of lower labor costs. My question is why can't we drop the duties on raw materials coming from Asia to give NAFTA the real shot in the arm, and clout that it needs and deserves? There is substantial benefit for manufacturers in certain industries to have the flexibility of converting raw materials into product at a moments notice, and quickly serving the U.S. market in lieu of waiting 6-15 weeks for something to arrive from Asia. It does little good in our case to import roll goods from Pakistan, and pay the 17% duty to cross them back as finished goods are being shipped in much cheaper than what we can make them for. This would encourage more industry and create more jobs in the U.S. and Mexico, and make NAFTA a relevent trade pact once again. U.S. manufactuers of textiles and other raw materials can and do argue that allowing goods from abroad will weaken their own product and sales, but we are basically operating in a niche market with the constraints we now have, and anything to put U.S.based manufacturers on a more level playing field will only enhance our ability to purchase their products, and employ people on both sides of the border.

Sen. John Kerry: I am mindful of your concerns, and of your need to acquire high-quality and reasonably priced raw materials so that your business can remain competitive. The latest round of global trade negotiations would substantially reduce duties on a number of commodities and raw materials from Asia. Other agreements could be completed on a bi-lateral basis to also reduce such duties, but the Administration has failed to secure a global agreement, and many of our trading partners are reluctant to advance the negotiations. I'm committed to reducing duties and other barriers to trade that will help small firms like yours.

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Concord, Mass.: Senator,

I own a small but successful independent toy shop in our town center. I know IKEA has helped the environment in their own way by charging 5 cents for shopping bags. I can't spend a ton of money on retrofitting and redesigning, but I was looking for some insight on how to make a difference in smart ways, like IKEA, when it comes to being green.

Sen. John Kerry: Thanks for the question, Concord.

Your taking the initiative to ask is step one. Small businesses have a critical role to play in making America greener. Even without major retrofitting, there are all kinds of ways to be more energy efficient. Changing light bulbs, more fuel efficient delivery or commuter vehicles, HVAC upkeep and maintenance -- these are all ways you can save money and help the environment at the same time.

Earlier this year I passed legislation in the Senate that will help small businesses like yours identify ways to become more energy efficient. I'm going to continue to push it because we all have to do our part.

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Washington, D.C.: What do you think can be done to help small businesses hurt by the huge number of National Guard and Reservist employees now in Iraq and Afghanistan? I've got to believe these repeated deployments are hurting small businesss - especially in the Heartland.

Sen. John Kerry: Washingon -- you are right. This is a problem and a top concern of mine.

The first hearing I held this year as Chairman of the Committee was on this topic. I'm also pushing legislation that provides incentives to employers who hire reservists and legislation that provides assistance to reservist business owners when they deploy. There's bipartisan support to do this and I'm working to get it done this year.

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Benson, Ariz.: As a solo practice small town family physician, I am part doctor and part small business owner. I'd like to know what Congress will be doing to correct the error in the Medicare reimbursement equation. As you know, the portion of the equation that calculates predicted cost of doing business is flawed, and it predicts that physicians' cost of doing business will go down every year for the next five years. Consequently, Medicare reimbursement will drop by 10% next year and 5% a year for the following four years. I ask you, what small business in this country anticipates a 25% drop in the cost of doing business over the next five years? If this situation is not remedied, it will result in a crisis of healthcare availability for seniors, and will be the death knell of many small rural practices, probably mine included.

Sen. John Kerry: The current system that determines reimbursement rates for physicians is clearly broken and must be reformed. My colleagues from both sides of the aisle on the Finance Committee agree and we are committed to finding a solution to this year’s anticipated cut and to making changes to the underlying system.

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Amherst, Mass.: My impression of the Bush administration is that they will do anything for big corporations but very little for small businesses. Why is it that Congress can force SBA to really focus on the little guy?

Sen. John Kerry: Amherst, you've hit the nail on the head. The Bush Administration has made clear that small business is not a priority and they use small business as a guise to pass their big business agenda.

SBA's budget has been drastically slashed - more than any other federal agency, but we're trying to turn that around. We increased their budget this year for the first time and we're looking for other ways to hold them accountable.

I have to run. Thanks for your time.

All the best,

John Kerry

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