The Small Business Rescue Act

Overview
The Small Business Rescue Act (SBRA) is a federally enacted, state supported tax relief based three-year program designed to cause local entrepreneurial small business initiation, development, and sustainability for smaller cities and neighborhoods across America. Traditionally, small businesses are family owned and the SBRA indirectly benefits these families. If we “light up” Main Street, it sends a message of vibrancy and becomes a centerpiece within the community. A thriving Main Street will bring a sense of enthusiasm within the community, enhancing the quality of life across America.

Problem Statement
Main Street America is diminishing with 15,000 small businesses closing each month. On average, approximately 600,000 small businesses open a year and approximately 720,000 small businesses close a year. A virtually vacant Main Street robs the community of pride, motivation, and the incentive to grow.

Criteria
There are various ways to regulate if SBRA has in fact alleviated the problems within the SBRA zones. The following criteria should provide a basis on which to measure the initiatives success over time:
• The IRS will regulate the businesses when they file their corporate taxes and receive the deductions.
• The IRS will regulate the occupancy levels within the SBRA zones and compare them to the previous years.
• Sales taxes will increase in revenue throughout the SBRA zones.
• Commerce in surrounding SBRA areas/communities will increase.
• Unemployment will decrease in the designated SBRA zone.

Options
Alternatives to SBRA would include:
• Additional tax relief based programs that would provide equally advantageous platforms for small businesses.
• A program that provides tax deductions.
• A program that provides the incentives to start a small business.

Recommendation
1. Small Business Recovery Zones
Establish federally recognized and defined “business enterprise zones,” mandating specific and unique tax treatment
and considerations strategically designed to encourage the investment in, and development of locally owned small
businesses in clustered business areas. SBRA recovery zones must meet the following qualification standards:
1.1. Local SBRA Zone Requirements
1.1.1. Participating cities must have total populations under 200,000.
1.1.2. All SBRA zones are defined by at least three (3), but no more than six (6) consecutive qualifying single
blocks along one straight roadway.
1.1.3. Each SBRA zone must be a minimum of three (3) consecutive qualifying blocks.
1.1.4. Additional qualifying blocks must be consecutive, up to a maximum of six (6) consecutive qualifying blocks.
1.1.5. Every qualifying block must be, at street level, at least 65% commercial only zoning.

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