Small Business Advisory Task Force

March 21, 2001 Meeting Minutes

Participants

Task Force:  Bob Bilbrough, Chairman -- Qualcon
                   Jack Berger -- Intraco Systems, Inc.
                   Heather Beshears -- Duraswitch
                   Marianne Hamm -- AccSys Technology
                   Bob Ulrickson -- Shielding for Electronics

AeA Staff:    Matt Page -- D.C. Office
                   Richard Lerman -- New York Council
                   Mike Levin -- Southeast Council

New Business

There are three new members on the Small Business Advisory Task Force. They include Jack Berger, President of Intraco Systems, Inc. in Boca Raton, FL; David Chisum, CFO of A Novo Broadband in Hollywood, FL; and Robin Phelps, V.P. and Founder of DigitalOwl in Winter Park, FL. Note that all three new members are from the Florida council.

Top Small Business Issues – "What keeps you awake at night?"

The Task Force had an open roundtable discussion of "what are the issues that keep you awake at night. The following is a summary of the issues discussed. For Task Force members unable to participate in the conference call, you are welcome to submit your own comments on this subject and they will be included in the record.

1. Power/Electricity – Marianne Hamm and Bob Ulrickson both mentioned that the electricity crisis in California is the number one business issue businesses are confronted with. Rolling blackouts occur with little or no warning and can shut down your business operations for hours at a time. The threat of rolling blackouts is similar to playing Russian Roulette with your business; you never know when the power is to go dead. The summer of 2001 promises to be very problematic for small businesses in California, and in particular the Silicon Valley.
   

Task Force members suggested that AeA become more involved with the energy policy debate. California will not be the only state affected by energy shortages. Other western states are likely to be impacted as well. It was recommended that the Sacramento Council stay on top of the issue in the California state house.

2. Research & Development Tax Credit – Heather Beshears commented that the R&D tax credit was important. AeA should continue to work for a permanent extension of the credit.
   
   
3. Insurance – Marianne mentioned that one of AeA’s vendors, HIH, would no longer be underwriting workers compensation insurance. She recently received a letter indicating the drop of worker’s comp insurance. The cost of insurance was a general concern of the Task Force, particularly the increases in employee benefits insurance (health & dental). The cost of health care insurance is increasing annually, and in many cases by double digit rate hikes. Bob Bilbrough expressed the concern that eventually his company may be unable to keep up with such increases in health insurance costs. Marianne described the problem as "getting less for paying more," suggesting that benefits are going down as costs continue to rise.
   

Being able to provide health insurance has become a critical part of attracting and retaining quality workers. In a survey of his employees, Bob Billbrough discovered that a quarter of his employees would leave if he were to drop their health insurance.

4. The challenges of raising capital was a concern expressed by Jack Berger, the President of a micro-cap company. Mike Levin referenced the Southeast Investment Conference in Atlanta, GA on June 7, 2001. For more info on the Southeast Investment Conference, you can contact Tina Morais at tina_morais@aeanet.org.
   
   
5. Bob Bilbrough asked the Task Force what were the member’s views on tax legislation. To spur discussion, Bob referred to an article in the Atlanta Business Chronicle called, "Small Business tax cuts ‘compliment’ Bush Plan." Bob wanted to know if AeA’s tax policy priorities of Internet tax simplification, Permanent Extension of the R&D Tax Credit, and Qualified Stock Option Plan Withholding were are on target with priorities of members of the Task Force.

Old Business

There was a brief discussion of "The Bottom Line" small business newsletter. In general, Task Force members have been pleased with the new project. Jack Berger made a suggestion of including the biographies of the Task Force members in The Bottom Line. Currently, Task Force members and their respective companies are listed on the left-hand column of the newsletter, with email and phone numbers included.

Next Meeting

May 16, 2001 at 4:30 p.m. EST/1:30 p.m. PST

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