Rep. Schneider Introduces Legislation to Support Startup Businesses

Today, during national Small Business Week, Congressmen Brad Schneider (IL-10) introduced a bill to support new small businesses and entrepreneurs by providing additional resources for them to grow and succeed.

The Accelerate Our Startups Act, or H.R. 2393, would create a grant program within the Small Business Administration available to small business accelerators and incubators, which provide critical support to emerging new businesses. Accelerators and incubators offer resources that many startups lack, including shared office space, access to professional services such as legal expertise and accounting know-how, and access to capital through guidance and contacts. Participating in an accelerator allows entrepreneurs to grow and develop their businesses more rapidly.

"Startup businesses represent a dynamic engine of growth and job creation for the American economy," said Schneider. "This bill ensures new businesses have greater access to the resources, expertise, and funding they need to expand and succeed. Supporting our startups from the beginning ensures more small businesses will flourish and ultimately create more well-paying jobs."

The Accelerate Our Startups Act is supported by 1871 – Chicago's Technology and Entrepreneurship Center.

"The legislation proposed today by Congressman Schneider is essential to supporting the entrepreneurial community in Illinois as well as the economy in general," said Howard Tullman, CEO of 1871. "This impactful program will have far-reaching and long-lasting positive impacts on the nearly 500 companies housed at 1871 in Chicago, which create thousands of jobs and millions of dollars of new business around the country each year. The bill will allow incubators like 1871 to continue to grow and thrive, which is critical as we support these companies in their earliest and most vulnerable stages."

The Accelerate Our Startups Act relies on a three-pronged approach involving investment from private sources, local government, and the business owners themselves. To be eligible for the federal SBA grant, incubators and accelerators are required to receive a portion of their funding from both non-public sources (either private or non-profit) as well as public (at the state or local government level). In addition, the bill requires accelerators to charge a fee to participating businesses, ensuring the startups themselves also have a stake in the program.