Aid to Small Business

October 23, 1957

Report Outline
Little and Big Business in United States
Difficulties in Path of Small Business
Measures to Aid Small Enterprises
Special Focus

Little and Big Business in United States

Place of Small Business in American Economy

Proposals to extend additional government assistance to small business will be renewed with vigor when the 85th Congress reconvenes on Jan. 7, 1958. Small business, it is generally agreed, has suffered more than big business during the past two years from tight credit, high costs, and low profit margins. However, those who have the interests of small business at heart are more disturbed by the growing difficulty it is having in raising equity capital and in holding its own against increasing concentration in American industry.

According to Chairman John J. Sparkman (D-Ala.) of the Senate Small Business Committee, which is now holding hearings in cities throughout the country, this sector of the national economy is in urgent need of tax relief. There is wide disagreement, however, on the extent of any preferential tax treatment to be given small business. Prospects for special tax changes for small business rest in considerable degree on the leeway available next year for general tax reduction. Current indications that defense spending will have to be increased dim the outlook for early lowering of federal levies.

Both major parties made platform pledges in 1956 to help the small businessman in a number of specific ways. Congress nevertheless failed to enact any significant small business legislation at its 1957 session. A bill to give permanent status to the Small Business Administration and to increase its business loan authority from $230 million to $500 million passed the House, June 25, by a 392–2 vote but was sidetracked by the Senate Banking Committee. Two days after S.B.A. legally expired on July 31, Congress agreed to extend the life of the agency for one year and to increase its loan authority by $75 million.

ISSUE TRACKER for Related Reports
Small Business
Jun. 19, 1987  Small Business
Jan. 28, 1983  Small Business: Trouble on Main Street
Oct. 23, 1957  Aid to Small Business
Aug. 24, 1955  Future of Small Business
Mar. 02, 1950  Financial Aid for Small Business
Mar. 21, 1945  Revival of Small Business
Mar. 04, 1942  Small Business and the War
Jul. 01, 1939  Government Loans to Small Business
Apr. 03, 1934  Small Business Under the N.R.A.
Small Business