The U.S. Senate was unable to agree on a SEMA-supported bill (H.R. 5297) to provide smaller banks with access to $30 billion in funds intended to be loaned to small businesses. While the Senate may reconsider the measure, the defeat meant that the House of Representatives would not consider the bill in the near future since House members will be working in their home districts during August. During the debate, SEMA sent a letter urging the Senate to also repeal a requirement that taxpayers with business income issue 1099 forms to all vendors from whom they buy more than $600 of goods or services in any year, beginning in 2012.

The U.S. House Energy and Commerce Committee approved the “National Manufacturing Strategy Act” (H.R. 4692), which would make manufacturing a top priority for Congress and the administration. This SEMA-supported legislation is intended to promote government policies to foster economic growth, increase employment and productivity, and expand exports for the nation’s manufacturing sector. The legislation would establish a public-private advisory board to make policy recommendations to the president on how to achieve short- and long-term goals and report its findings to Congress.

SEMA has been asked by the federal government if any companies would be interested in converting domestic vehicles for export to right-hand-drive countries. The U.S. General Services Administration (GSA) purchases about 90,000 vehicles a year for various government agencies, and a small number of those vehicles are exported for use in foreign countries.

Beginning in 2012, businesses will be required to file “Form 1099” information returns with the Internal Revenue Service (IRS) and report all payments to corporations for goods or services in excess of $600. Under current law, most corporations are exempt from receiving 1099s. The 1099 reporting requirement is expected to raise $17 billion over 10 years. It was included as a revenue-raising initiative under the new health care law, in this case, collecting taxes on a potential source of unreported income.

SEMA and 54 other trade associations asked Congress to limit the amount credit card companies can charge merchants when processing payments. Congress addressed some, but not all swipe fees when it enacted the new financial reform law.

Bill would offer smaller banks access to $30 billion fund to spur lending to small businesess, and includes extension of program allowing 50% write-off on newly purchased depreciable property.

The Federal Trade Commission (FTC) has published answers to “frequently asked questions” (FAQs) to help businesses better understand the FTC’s “Guides Concerning the Use of Endorsements and Testimonials in Advertising.” The Guides were revised in October 2009 to clarify that they apply to all types of advertising, including via social media websites and blogs.

Environment Canada issued a SEMA-supported final rule to indefinitely extend an exemption allowing the use of leaded gasoline in competition motor vehicles. The exemption has been renewed several times since it was first established in 1996. SEMA had previously opposed efforts to permanently terminate the exemption and effectively ban racing vehicles using leaded fuel. The new rule recognizes the relationship between the Canadian and U.S. racing industries and adopts a consistent environmental approach to leaded fuel use.

SEMA-supported legislation to extend the emissions inspection exemption to vehicles five model years old or newer has been signed into law by New Jersey Governor Chris Christie. The new law acknowledges the relatively minimal environmental impact of the vehicles targeted for this exemption and that it is senseless to test newer vehicles, the results of which demonstrate no significant air quality benefits.

The Small Business Administration (SBA) released a study that examines the types of credit used by small businesses, namely bank credits (loans or lines of credit) and trade credits (from suppliers). The study compares companies that use credit (leveraged) with those that do not (unleveraged).