U.S. Sens. Jeanne Shaheen (D-NH) and Bill Cassidy (R-LA) today introduced legislation that seeks to create a program that helps small businesses lock in the cost of commodities, like gasoline or lumber, in to protect against the future volatile price swings.
The bipartisan Helping Small Businesses to Hedge Risk and Insure against Volatile Expenses, or Helping Small Businesses THRIVE Act, directs the U.S. Small Business Administration (SBA) to create a program that allows small businesses to hedge their cost exposure from commodities. It would also offer small businesses options for how to lock in their prices going forward.
“Small businesses are the backbone of our economy and deserve a level playing field. By empowering them to lock in prices for key commodities, we can help small businesses compete with larger businesses, create good-paying jobs and expand their business,” Shaheen, chair of the U.S. Senate Committee on Small Business and Entrepreneurship (SBC), said. “I hosted a field hearing in the Granite State last week to discuss the resources available for small businesses to lower their energy costs. Today, I’m proud to introduce bipartisan legislation that proposes a new resource to help small business owners keep costs under control and secure a vibrant future for our Main Streets.”
The program would first start to lock in costs for gasoline, diesel and up to three additional commodities, with special attention given to standard utilities like natural gas or electricity. Additional commodities and utilities could be added to the program after surveys and feedback from small businesses to assess which products would be most beneficial to them.
“Small businesses are particularly vulnerable to high inflation costs,” Cassidy said. “The Helping Small Businesses THRIVE Act gives small businesses in Louisiana the tools they need to create jobs, expand operations, and compete with large companies.”
The bill has the support of several organizations, including the Center for American Entrepreneurship.
“Participating businesses will be able to recapture losses sustained from price volatility regarding critical commodities like gasoline, diesel, natural gas, lumber, and potentially other inputs, that they rely on,” John Dearie, president of the Center for American Entrepreneurship, said. “The legislation will provide small businesses the price security and confidence they need to plan, thrive, and continue creating jobs.”
The Small Business Majority and the National Small Business Association also back the bill.
“This bill is a tremendous first step towards leveling the playing field for small companies across the country, enabling them to responsibly hedge commodity market risks—something historically only available to their largest competitors. The National Small Business Association is proud to support the Helping Small Businesses THRIVE Act, and we look forward to continuing to work with Chair Shaheen’s office to ensure small companies get a fair shake and can continue to power the U.S. economy for generations to come,” Todd McCracken, president & CEO at the National Small Business Association, said.