Five Things Small Businesses Want from the New President

By Ann Sullivan

 

1.  An effective vaccination program. Small businesses, especially vulnerable during the pandemic, need to get employees back to work and customers through their doors. Clear communication from the President and public health officials and a robust vaccination plan will accomplish just that.  

 

2. Capital to weather the pandemic. The Paycheck Protection Program (PPP) got lots of things right – the two rounds of loans assisted many small businesses. However, adjusting to changes caused or accelerated by the pandemic are far from over. Businesses have had to make significant changes, such as investments in technology infrastructure. This spans across industries – accommodating working from home or shifting to take out/delivery services, just to name a few. It is unclear if or when the workforce will return to their workplaces five days a week. 

 

While the second round of PPP funding passed in December expanded covered expenses, the need for capital has never been greater. The temptation by government is to simply pile money on top of existing programs. That has not necessarily been successful—women still get just 4% of all commercial capital and businesses in underserved communities were the last to receive PPP funds. Federal loan programs for these businesses need an overhaul.

 

3. Greater access to public sector contracts. During the pandemic, public sector (federal/state/local) contracting is a way to reposition successful commercial businesses. However, the current set of acquisition policies and federal agency initiatives are really designed to keep them out. Citing efficiency, the federal government buys in large quantities from large companies but in the process relegates smaller businesses to providing goods and services through large prime contractors, rather than buying directly from small businesses.  This strategy results in fewer small federal contractors – which has had a ripple effect on the economy. Access, by the way, does not mean a handout. It just means having a fair shot at winning the business.

 

4. Changing the tax code from “one size fits all.” Although the last tax rewrite made some much-needed changes for small businesses that are organized as pass-throughs as opposed to C corporations, considerable work remains. The Treasury Department should review every deduction/tax credit and its impact on small business vis-à-vis large businesses and make regulatory adjustments and recommended changes to the law that require Congressional action.

 

5. Make small businesses stakeholders in the clean energy future. If small businesses are not at the table, the new Administration’s goal to build a “modern, sustainable infrastructure and deliver an equitable clean energy future” won’t get much traction. If involved, they will find ways to create revenue and business growth. Their unique ability to pivot and innovate will give life to the opportunities the new Administration envisions.

Is There Any End in Sight? 5 Reasons Why You Can’t Quit.

By Ann Sullivan

 

I was on a call recently with fellow business leaders and one of them articulated what I have been thinking. Is there any end in sight? Meaning COVID-19, meaning nasty politics and gridlock on important issues, meaning decreased revenues and meaning people in a pretty bad mood. If you are a business owner, you have dreams of simply walking away saying “I quit.” But you can’t—here are five reasons why.

 

1. You have invested too much into the business to walk away. As satisfying as walking away sounds, why would you throw away all that time and effort that it takes to build a business. More than 50% of businesses fail in the first year. If you made it past that mark, you overcame a big hurdle – the odds are with you.

 

2. You like being your own boss. In a study by Guidant Financial, 55% of respondents said being their own boss was their biggest motivation for owning their business. Business owners don’t necessarily excel in playing corporate politics – they live with the consequences of their own decisions. Plus, being your own boss has the potential for greater income than working for someone else.  

 

3. You’re in good company. Depending on what survey you choose, nearly 1/3 of all small businesses in the US are non-operational due to COVID. If you are in business, you’ve beat the odds, so chances are you’ll climb out of this.  

 

4. You have been given an unusual chance to reposition and get creative. This opportunity doesn’t happen very often but COVID-19 forced us to think about pursuing new business lines and add new capabilities. Not that we wanted to do this – life was pretty good when the revenues were strong, but every business needs a refresh at some point. 2020 just gave us the kick in the pants we probably needed.

 

5. You can’t fix the political world. Having been in the political arena for a long time, I remember when politicians were much more collegial. Even though you can’t fix the political divide, what you can do is vote, volunteer, contribute to candidates that share your views and work for a better future for you and your employees. 

Cybersecurity Certification Keeps Chugging Along

WIPP Works in Washington | September 2020

By Elizabeth Sullivan

The last time I wrote about the Department of Defense’s (DoD) Cybersecurity Maturity Model Certification (CMMC) was back in early March when the DoD released their final version to industry. The pandemic hit shortly after and turned things upside down…except for the rollout of CMMC, which has continued to move forward.

So, where does everything stand now?

A major step has been taken in moving this process along – training started at the end of August for certification assessors. These 73 assessors, however, are part of a “provisional program” and won’t actually be assigning the companies they evaluate a final CMMC level. Think of these initial assessments as more of a dry run, with the goal of providing feedback to the DoD and CMMC Accreditation Body (CMMC-AB)on any issues that need to be resolved before the real evaluations begin. As a reminder, the body providing the training – the CMMC-AB – is separate from the DoD. The AB is currently operating with a volunteer board and will eventually be a fully staffed organization. 

This step comes in the wake of a rift between the DoD and the CMMC-AB over a new contract that would supersede their existing Memoranda of Understanding (MOU). The tension between the two organizations over the new agreement is centered around responsibilities, which some AB board members felt was undermining their authority. The DoD has said this agreement is a new no-cost contract would provide a more binding relationship between the CMMC-AB and the Department. While this was slated to be resolved by the end of August, stay tuned for the final result.

In the meantime, CMMC requirements showed up in the General Services Administration’s (GSA) $50 billion 8(a) STARS III contract, where GSA indicated that it “reserves the right” to require certifications for small businesses awarded slots on the federal IT vehicle. Although CMMC is only a future requirement for the approximately 300,000 DoD contractors, it has been predicted that adoption of the certification could spill over into civilian acquisitions. The move by GSA is a prime example of this, but is also not very surprising – DoD was one of the biggest buyers on the predecessor contract, STARS II. 

So, where does this leave small business contractors? With a lot of remaining questions. Below are a few that come to mind: 

• As companies try to prepare for this assessment, who is credible to help them identify gaps to reach a readiness level? There has been a myriad of bad actors popping up, claiming they can guarantee a certain CMMC level with their analysis (which they can’t). 
• Once the CMMC-AB accredits assessors and their certified third-party assessment organizations (C3PAOs), companies can start to get assessed. What is the actual cost for companies get this assessment? Will all of the accreditors charge the same amount? 
• Once assessors are ready, what is the order in which the 300,000+ businesses will be assessed? Is there a cue? Will it be based on existing contracts? Are small businesses going to pushed to the bottom of the list?  

According to DoD, all contractors will have to be certified by 2025. Advocacy remains crucial on this issue, and WIPP’s Virtual Symposium on Cyber Resiliency (September 31-October 1) is focusing on these important policy changes for WOSB contractors. Check out the agenda for the Symposium and register here.