September 18, 2001

Washington, D.C.-The Small Business Survival Committee (SBSC) today urged the U.S. Congress to act quickly to pass measures aimed at boosting an already lagging U.S. economy which now faces even greater challenges following last week's tragic events.

"Small businesses are the bell-weather of the economy.  They create three-fourths of all new jobs, but are also the most susceptible to failure.  They're in trouble right now and they need help." said SBSC president Darrell McKigney. "Things have been getting tougher for small businesses in recent months, and the new economic challenges resulting from last week's tragedies are only going to make things more difficult.  

"Our folks can and will bounce back quickly if they have the ability to dedicate more resources to staying open and taking care of their customers.  That means they need more investment, tax relief, lower input costs and new markets now," McKigney added.

"Prior to last week's attack on the World Trade Center and the Pentagon, our economy already had been experiencing a dramatic economic slowdown and a fall-off in investment.  Obviously, economic uncertainty has only grown over the past week," added SBSC chief economist Raymond J. Keating.   He pointed out that when government spending is factored out, the private sector of the economy has actually shrunk for the first half of 2001.

McKigney pointed to several items that would help the economy now and boost confidence about the future:

An immediate and sizable cut in the capital gains tax would free up capital and encourage investment.

Granting trade promotion authority to President Bush would enhance prospects for new markets and build stronger economic ties with other countries.

Enacting a new energy plan which decreases dependence on foreign energy sources would lower energy costs and protect the U.S. economy from disruptions in the Middle East.

Making the tax cuts passed earlier this year permanent would encourage investors and bolster long-term economic prospects.

SBSC is a nonpartisan, nonprofit small business advocacy group headquartered in Washington, D.C.  For more information, please call SBSC at 202-785-0238, or visit SBSC's website at www.sbsc.org.