Over the next several days, PPI will be continuing its series of five ideas that we think should be central themes in President Obama's State of the Union address next week. These ideas are also crucial, in our view, to engineering an American economic comeback.
Every big American company once started small. This is why the smallest of small businesses and start-ups deserve an environment free of needless obstacles to their growth. This includes better access to credit and capital: two critical ingredients for any company's growth.
We believe that two small changes can dramatically benefit these smaller companies: (1) lifting an outdated cap on the amount of small business lending by credit unions and (2) modifying an outdated regulation that prematurely forces many smaller companies to "go public" (with its financial and regulatory burdens) before they're ready.
Our policy memos, "The Credit Gap: Easing the Squeeze on the Smallest Businesses" and "501 Shareholders: Redefining 'Public' Companies to Help Emerging Firms" explain how these changes can promote innovation where it first begins--with start-ups and small businesses.
MORE IN OUR SERIES:
IDEA #1: Scraping regulatory barnacles off the economy—A Regulatory Improvement Commission
COMING TOMORROW: Idea No. 3--Restoring Homeownership Wealth: Home Values in Battleground States
President, Progressive Policy Institute