PBA Secures Victory with Small Business Administration
Preserves Designation for Salon Industry
In a major victory for the Professional Beauty Association and the salon industry, the Small Business Administration (SBA) recently issued a ruling that preserves the small business designation for hundreds of salon/spa businesses nationwide.
When Congress first created the SBA, one of the basic questions was what numerical definition should be used to define small businesses, industry by industry, to determine what businesses were eligible for SBA benefits. In 2004, the SBA considered changing how the federal government defined a "small business" for many industries-including the salon industry. Specifically, the proposed change would have shifted the designation for salons from a $6 million in annual sales maximum threshold to a new size standard of 50 employees maximum threshold.
In addition to resulting in the loss of small business status for hundreds of salon businesses-and with it their eligibility for SBA programs and assistance-the change would have placed a tremendous administrative recordkeeping burden on the thousands of salons that would still qualify as a small business.
In addition to submitting formal testimony detailing the negative impact that SBA's proposal would have had on the salon industry, PBA members also testified at three public hearings sponsored by SBA in Los Angeles, St. Louis and New York. "We were extremely aggressive on this issue from the beginning," said Steve Sleeper, PBA's executive director.
Ultimately, the combined efforts of PBA and its members were instrumental in convincing SBA that this proposal was not in the best interests of the salon industry. As a result, in the July 27, 2007 issue of the Federal Register, SBA formally announced that they would not convert any industries from a receipts-based size standard to a standard that is based on the number of employees.
"This victory demonstrates the growing influence of PBA and the salon industry among policy makers and regulatory agencies," said Lee Rizzuto Jr., Chair of PBA's Governing Council. "Hopefully, this helps sets the stage for continued success in the future".
For more information, please contact Sam Leyvas, PBA Government Affairs Director, at 800-468-2274 x118 or sam@probeauty.org.
Beauty Industry Mixing Technology with Politics
PBA recently launched a virtual one-stop political action and education tool for members aimed at keeping beauty industry professionals informed and engaged on relevant legislative and regulatory issues. PBA's new online advocacy center (www.probeauty.org/advocacy) allows visitors to stay up-to-date on the latest news, register to vote and email their elected officials.
As PBA members have consistently ranked government affairs and representation on Capitol Hill as a top priority, PBA has bolstered its lobbying and political involvement at the federal and state level. A critical part of its strategy is getting individual members involved in the political process. "The collective voice of individual salon owners, distributors and manufacturers is a powerful tool for our industry," said Sam Leyvas, PBA's Government Affairs Director. "With the click of a mouse, our members can now make their voices heard on the issues that matter most."
To learn more about PBA's online advocacy, visit probeauty.org/advocacy.
Tip Tax Credit Update
The Small Business Tax Equalization & Compliance Act ( H.R. 3016) was recently introduced in Congress. The legislation would give salon/spa owners a dollar-for-dollar tax credit on the FICA taxes they pay on employees' tips. The legislation was introduced by Rep. Shelley Berkley of Nevada, along with 16 other co-sponsors. To see if your member of Congress is a co-sponsor, or to learn more, visit probeauty.org/advocacy.
