Evaluation of Broadband Investments on Small Businesses and Job Creation

The House Small Business Committee held a hearing to review steps to advance broadband deployment and adoption through American Recovery and Reinvestment Act of 2009 (ARRA) programs. Committee Chairwoman Nydia Velazquez (D-NY) noted that since larger telecommunications companies opted not to participate in the first round of broadband stimulus funding, small firms should win a sizeable chunk of available grants and loans. But she raised concerns that the programs' process has been less than seamless. Many small businesses have complained of challenges ranging from excessive paperwork to restrictive capital requirements. Representatives of the National Telecommunications and Information Administration (NTIA) and the Rural Utilities Service (RUS) testified on the current status of broadband investments and efforts to create opportunities for small businesses. NTIA head Larry Strickling said greater broadband availability impacts much more than the commercial operations and profit margins of small businesses. Broadband, by providing greater access to information, health care, education, and job opportunities, has the power to transform communities across the country and sow the seeds for the next generation of American entrepreneurship and innovation.