The U.S. 番茄社区 of Commerce and the Arizona 番茄社区 of Commerce & Industry on Tuesday night convened a statewide tele-townhall about why the groups are urging Sen. Kyrsten Sinema , D-Ariz., to oppose the massive social spending bill known as Build Back Better.

Arizona 番茄社区 President and CEO Danny Seiden and U.S. 番茄社区 of Commerce Chief Policy Officer Neil Bradley discussed the bill鈥檚 negative effects on inflation, the tax environment and federal budget deficits. 

Seiden said Arizona鈥檚 economy was one of the fastest states in the country to recover the jobs it lost during the pandemic-induced downturn and he noted the consistent rate at which the state is attracting new jobs. 

The reconciliation bill, warned Seiden, could hurt the state鈥檚 positive growth trajectory, and his chamber is urging Sen. Sinema and her colleague Sen. Mark Kelly, D-Ariz., to reject the legislation. 

Seiden said the bill is too expensive and that it will make the 鈥渁lready Jimmy-Carter-level inflation rates even worse.鈥� 

Bradley, a public policy veteran, said that the bill was one of the worst pieces of legislation he has seen in some 25 years of tracking Congress鈥� work. 

Bradley also noted that Arizona鈥檚 economic growth can be hindered by policy crafted in Washington, D.C.

鈥淎rizona is what we want the nation鈥檚 economy to be: dynamic, vibrant, growing 鈥�  that’s the definition of what we want to emulate,鈥� Bradley said. 鈥淭he problem is that sometimes Washington can throw a wet blanket on all that growth and at the same time raise prices for everyday families and businesses.鈥�

Bradley said that last weekend around 1,880 pages of the bill were received by lawmakers on Capitol Hill containing 鈥渢axes, new powers for the Internal Revenue Service, and [new] ways of regulating businesses.鈥� 

Sixty-three percent of small businesses across the U.S. have had to raise their prices due to inflationary pressures, and Bradley said he鈥檚 certain that the bill will add to these pressures partly because of the amount of money that it requires, which will 鈥渉ave to be borrowed, in this case from mainly overseas creditors, and paid back by higher taxes later.鈥�

Seiden said he鈥檚 concerned with the penalties that the bill would enforce on Arizona鈥檚 economy, pointing to a portion of the legislation that offers a more generous tax credit for electric vehicle purchases if the car was assembled in a unionized factory.

Seiden said the provision conflicts with , which enshrines the state鈥檚 鈥渞ight to work” (RTW) status and makes labor union membership voluntary. He argued that Arizona鈥檚 growing electric vehicle manufacturing sector is thanks in part to Arizona鈥檚 status as an RTW state, which the bill would undermine.

鈥淭his provision would punish non-union companies to choose between operating at either a competitive disadvantage or protecting their employees,鈥� Seiden said. 

Both Bradley and Seiden called for the bill to be scrapped and that Congress should start over. They both expressed appreciation for Sinema’s work to improve the bill, but that their chambers are urging her not to support it and instead back pro-economic-growth policies. 

鈥淎rizona鈥檚 番茄社区 and the U.S. 番茄社区 are working together on an advocacy campaign here in the state thanking Sen. Sinema for so far standing up to the big tax and spend agenda in Washington and urging her to not let up, to keep fighting back against policies that will drive up costs more than they already are,鈥� Seiden said.

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The federal Paycheck Protection Program officially ended on Monday but there still are many programs available to help small businesses, including grants for business assistance groups to support socially and economically disadvantaged entrepreneurs. 

The new program, launched by the U.S. Small Business Administration (SBA), is offering grants of up to $5 million to nonprofits, chambers of commerce, and tribal and government agencies to conduct outreach to small businesses that were left out of previous federal relief efforts.

鈥淭hese businesses 鈥� the smallest of the small in rural and urban America, and those owned by women, people of color, or veterans 鈥� have suffered the greatest economic loss from this pandemic,鈥� said Isabella Casillas Guzman, administrator of the , in announcing the launch. 

Arizona U.S. Senator Mark Kelly was among those who fought to include the program in the recent to help disadvantaged entrepreneurs, particularly in rural and tribal areas.   

鈥淚鈥檝e spoken to small businesses in every corner of Arizona. Far too many of them, especially tribal and minority-owned businesses and those in rural communities, have been unable to get the support they need,鈥� Kelly said, adding that the pilot includes assistance in Spanish for business owners.

Organizations can apply for grants of up to $5 million 

Business assistance programs can use the Community Navigator grants for to help small businesses get the resources and support they need. This can include hiring staff dedicated to outreach activities and hiring culturally and linguistically knowledgeable experts 鈥� certified public accountants, attorneys, and other professionals 鈥� to work with business owners to complete applications for programs. 

Grant awards will range from $1 million to $5 million for a two-year performance period. Applicants have until July 12, 2021, to submit their applications at . 

For more information, visit . 

Many other grants, loans, programs available   

A number of other programs are available for small businesses, including these SBA programs: 

R&D accelerator competition The SBA recently launched its 6th annual to recognize 鈥渢he most innovative organizations with inclusive approaches towards supporting entrepreneurs in research and development.鈥� Prizes go to successful applicants focused on assisting women entrepreneurs, minority entrepreneurs, entrepreneurs building technologies to address key policy issues such as clean energy and supply chain resilience, or an underserved target group identified by the applicant such as rural, veterans and individuals with disabilities. Applications are being accepted until June 25.

Business development to compete for federal contracts The program connects 鈥渟ocially and economically disadvantaged鈥� small businesses with opportunities to compete for federal contracts, get assistance with navigating federal contracting, create joint ventures with mentor companies and receive training and development help. 

HUBZone Program The works to give more contracting opportunities to small businesses located in HUBZones, which are typically areas with above-average economic development needs. To qualify, a company鈥檚 principal office must be located in a HUBZone, about a third of employees must live in a HUBZone, and the company must be at least 51 percent owned and controlled by U.S. citizens, a Community Development Corporation, agricultural cooperative, Native Hawaiian organization, or Indian tribe.

Service-Disabled Veteran-Owned Small Businesses Program The works with veteran-owned small businesses to help them receive federal contracts. To qualify, a small business must be at least 51 percent owned, controlled and managed day-to-day by one or more service-disabled veterans. 

Small Business Innovation Research and Small Business Technology Transfer These were created to help small businesses compete with larger companies in the areas of research and technology. These programs provide grants to companies to help create physical and digital tools for federal agencies like the Department of Defense. Examples include advanced chemical compositions, military-grade sensors, radar devices, lasers, health monitoring tools, and high-tech clothing.

Women-Owned Small Business Federal Contracting program The program helps women-owned businesses compete for federal contracts in industries where women-owned small businesses are underrepresented. A list of qualifying industries includes bakeries, commercial and industrial building construction, oil and gas pipeline construction, roofing contractors, sewage treatment facilities, tax preparation services and more. More information is available at:

Even more鈥�

To learn more about the many programs available for small businesses, the U.S. 番茄社区 of Commerce has compiled a list of more than than 30 grants, loans and programs at:

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Legislation passed by the U.S. House of Representatives would overturn Arizona鈥檚 right-to-work law that has been in place for 75 years, stirring alarm among business groups here and in other states with similar laws.

Advocacy groups like the U.S. 番茄社区 of Commerce are calling on the Senate to reject the anti-jobs proposal, saying it would hurt employees, employers, independent contractors and freelancers.  

鈥淭he PRO Act would, for all practical purposes, eviscerate Arizona鈥檚 right-to-work law, which would mean that workers in the state who happen to be in a union work setting would have to pay dues or they would be at risk of losing their jobs, said Glenn Spencer, senior vice president of the Employment Policy Division at the in Washington, D.C., the world’s largest business federation representing the interests of more than 3 million businesses.

鈥淭heir employers may well be forced to terminate them if they don鈥檛 wish to pay dues in that setting,鈥� said Spencer, who spoke with 番茄社区 (CBN) about the implications of the proposed law.

Sweeping proposal would set dangerous precedent 

The PRO Act, which stands for , would enact dozens of sweeping changes to current labor law in favor of unionization. Labor unions like the AFL-CIO are backing the measure. President Joe Biden has promised to sign the bill if it gets to his desk. Meanwhile, Arizona鈥檚 two senators, Kyrsten Sinema and Mark Kelly, are current holdouts preventing the bill from moving forward. But the pressure is on. 

Of concern to businesses are a long list of new provisions, from requirements limiting freelancers鈥� ability to have flexibility over their own hours to allowing union organizers to engage in coercive tactics long held to be illegal.

Simply put, the proposed law would strip employees鈥� right to decide if they want to be in a union, disrupt the thriving gig economy, and hurt employers鈥� bottom line, Spencer said. 

Protect or harm workers鈥� rights?

The U.S. 番茄社区 and hundreds of business advocacy groups are calling on senators to say 鈥渘o鈥� to the proposal. In Arizona, , including the Arizona 番茄社区 of Commerce & Industry, are joining the U.S. 番茄社区 in opposition. 

Proponents of the PRO Act contend the measure would restore fairness to the economy by strengthening the federal laws that protect workers’ right to join a union. But what they fail to mention is the number of measures that could have damaging consequences for employees and job creators, Spencer said. 

Here are some of the key reasons business groups oppose the measure: 

Elimination of right-to-work laws

Currently, Arizona and 26 other states have right-to-work laws, which give workers the choice of whether to join a union. States without right-to-work laws require employees to pay union dues and fees as a requirement for employment. 

鈥淭he bill represents a pretty dramatic intrusion into state laws,鈥� Spencer said. 鈥淪tates since 1947 have been authorized to pass right-to-work statutes. Courts have ruled on those statutes, and this bill would essentially wipe all that out without any action by the state legislature.鈥� 

The Act would allow coercive tactics long held to be unlawful 

Another concerning provision in the PRO Act would be the ability for workers of a company to picket companies that their employer conducts business with, called 鈥渟econdary boycotts,鈥� Spencer said.

鈥淢ost people aren鈥檛 aware of that concept and that鈥檚 for a very good reason because secondary boycotts and pickets have been illegal since 1947. For more than 70 years it’s been against the law to engage in that kind of activity,鈥� he said. 鈥淐ongress outlawed it specifically because it was so disruptive to the free flow of commerce.鈥�

Under current law, union organizers can talk to an employer and employees where they are trying to unionize. If secondary boycotts are allowed under the PRO Act, union organizers could target any businesses the company does business with, occupying their parking lots and disturbing their customers.

鈥淪o you can see how widely disruptive a labor dispute at a single company could become. A whole range of neutral third parties that have nothing to do with a labor dispute suddenly get drawn into it,鈥� Spencer said. 鈥淛ust because you鈥檙e providing services as a third party, suddenly that could make you the subject of labor protests and pickets around something you really have no part of.鈥� 

Strips independent contractors of their classification 

Another concerning aspect of the PRO Act is the redefining of independent contractors and freelancers similar to the controversial that was passed in California in 2019. 

Under AB 5, when a hiring entity claims that the person it hired is an independent contractor, the law requires the application of the 鈥淎BC test鈥� to determine if workers are employees or independent contractors. For many independent contractors, the PRO Act would mean they would be considered employees for purposes of federal labor law, giving them the right to unionize. 

In California, the penalties for businesses that 鈥渨rongly classify an employee as an independent contractor鈥� are civil penalties of $10,000 for a first violation, $30,000 for 鈥渞epeat or willful鈥� violations, and 1 percent of net profits if 鈥渨idespread.鈥�

Given the penalties, it could severely limit 鈥� ability to get hired, forcing them out of business.

Independent contractors could end up in union without knowing it 

Independent contractors tend to be dispersed, so if a union patches together a bargaining unit of independent contractors, it typically has to occur by mail, Spencer said. 

鈥淲hat we鈥檝e seen in other contexts like this is that a lot of these workers don鈥檛 even realize there鈥檚 any kind of union campaign going on and these campaigns are won by a majority of those who actually vote,鈥� he said. 鈥淪o if you have a hundred independent contract workers, if only 10 voted, six of them would constitute a majority of voters and that would be enough to impose a union on all 100.

鈥淪o you鈥檇 wake up one morning and suddenly discover you鈥檙e a member of a union and you have to pay union dues because right to work is gone.鈥� he said. 

Economic growth would likely be hampered 

Research by the U.S. 番茄社区 shows that right-to-work states tend to have higher rates of economic growth, higher rates of job creation and lower rates of unemployment, Spencer said. 

鈥淪o there鈥檚 certainly a personal cost to workers, but there鈥檚 a larger economic cost to the states as well,鈥� he said.  

Sinema and Kelly key players in the debate 

For the most part, Democrats are leading the charge on the PRO Act. There are currently 47 Democrats co-sponsoring the bill in the Senate. Majority Leader Chuck Schumer (D-New York) said he will bring the bill to the floor if he can get 50 co-sponsors.

So far, Arizona鈥檚 two Democrat senators, Kyrsten Sinema and Mark Kelly have not co-sponsored the bill. One reason given for their reluctance is the lack of bipartisan support for the bill. They also have a large cadre of constituents who support the state鈥檚 right-to-work status.

鈥淪enators Sinema and Kelly have not co-sponsored this bill. That’s a good thing. People in Arizona should thank them for standing up for workers and right-to-work and employers,鈥� Spencer said. 

Large opposition from business community 

Business leaders and advocacy organizations across the U.S. are sending letters to Congress, calling for an end to the PRO Act, including the , composed of hundreds of organizations representing millions of businesses that employ tens of millions of workers nationwide in nearly every industry.

Arizona chambers calling on Congress to vote 鈥渘o鈥� 

In Arizona, at least 20 chambers of commerce oppose the measure:

• Arizona 番茄社区 of Commerce & Industry聽
• Buckeye Valley 番茄社区 of Commerce
• Chandler 番茄社区 of Commerce
• Carefree Cave Creek 番茄社区 of Commerce
• Coolidge 番茄社区 of Commerce
• Glendale 番茄社区 of Commerce
• Greater Phoenix 番茄社区
• Greater Flagstaff 番茄社区 of Commerce
• Green Valley Sahuarita 番茄社区 of Commerce
• Lake Havasu Area 番茄社区 of Commerce
• Marana 番茄社区 of Commerce
• Nogales-Santa Cruz County 番茄社区 of Commerce
• Peoria 番茄社区 of Commerce
• Prescott 番茄社区 of Commerce
• Prescott Valley 番茄社区 of Commerce
• Queen Creek 番茄社区 of Commerce
• Southwest Valley 番茄社区 of Commerce
• Surprise Regional 番茄社区 of Commerce
• West Valley 番茄社区 of Commerce Alliance聽
• Wickenburg 番茄社区 of Commerce

To read more about why business and industry oppose the bill, visit:.

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Arizona U.S. Senators Kyrsten Sinema and Mark Kelly updated the business community on legislation important to industry and commerce Wednesday during the Arizona 番茄社区 of Commerce & Industry鈥檚 annual 2021 Update from Capitol Hill.

The two senators detailed measures in the recent federal relief package that will benefit businesses in Arizona and priorities for the rest of 2021. They also fielded questions about top business concerns including corporate tax rates, preservation of the filibuster, and the feared Pro Act, which has been labeled 鈥渢he worst bill in Congress鈥� by many in the business community.  

Neil Bradley, executive vice president and chief policy officer of the U.S. 番茄社区 in Washington, D.C., also offered an insider view into the goings on in the nation鈥檚 capital as far as business is concerned. More than 500 attended the virtual event, which was sponsored by Salt River Project and the Arizona Indian Gaming Association. 

How businesses are benefiting from recent federal relief bill 

Senator Sinema (D) talked about measures she has successfully supported and lobbied for in the federal relief packages including the most recent $1.9 trillion .

Sinema emphasized her record of working across the aisle despite criticism from party loyalists at times. For her, ensuring that Arizona employers and employees weather the pandemic is her first priority, not party politics, she said.

鈥淥ver the past year, employers have had to make tough choices, adapt, and contend with bureaucratic obstacles that delayed relief,鈥� Sinema said. 鈥淭hat鈥檚 why as a member of the Senate bipartisan group on Covid relief, I listened closely to Arizona leaders and worked to ensure that the new relief law addresses Arizona鈥檚 urgent needs.鈥� 

Among the measures Sinema helped to pass are:

Restaurant relief fund: Sinema and Sen. Roger Wicker, R-Miss., introduced and helped pass a restaurant relief fund of $28.6 billion to help small and mid-sized restaurants, bars, caterers, food trucks, breweries and other food service providers in need of assistance with rent and operational expenses. It provides grants of up to $10 million per entity with a maximum of $5 million per location based on the difference between 2020 and 2019 revenue. 

Save our Stages Act This legislation created a $15 million fund to provide relief to the entertainment industry like nightclubs, theaters and concert halls. 

Employee Retention Tax Credit This is a refundable against certain employment taxes equal to 50 percent of the qualified wages an eligible employer paid to employees after March 12, 2020, and before January 1, 2021. Eligible employers can get immediate access to the credit by reducing employment tax deposits they are otherwise required to make. Also, if the employer’s employment tax deposits are not sufficient to cover the credit, the employer may get an advance payment from the IRS.

CHIPS for America Act Another bipartisan effort led by Sinema resulted in the CHIPS Act being adopted in December. The CHIPS Act — Creating Helpful Incentives to Produce Semiconductors — established federal grants to enable advanced research and development, secure the supply chain and ensure long-term national security and economic competitiveness. 

Soon after Congress passed the act, announced a $20 billion expansion of its manufacturing operation with two new factories in Arizona, Sinema said. The project is expected to create more than 3,000 permanent, high-wage jobs and more than 3,000 construction jobs, beginning this year. 

Relief for border communities The measure provides $110 million to help border cities and towns overwhelmed trying to provide humanitarian aid to asylum seekers flooding across the border. 

Looking ahead: immigration, infrastructure, broadband

Sen. Kelly, who stepped into public office in December, said he spent his first five months doing a 鈥渓ot of listening鈥� to ascertain what is the most effective use of federal dollars in Arizona. Protecting public health while encouraging economic development are top priorities. 

鈥淭here鈥檚 a lot of work ahead to beat this virus and rebuild our economy. That鈥檚 been my focus,鈥� said Kelly, who also spoke about his commitment to working in a bipartisan manner. 

In the coming months, Kelly said he is focused on a number of packages with business in mind including:

Infrastructure Congress has failed to pass a major infrastructure bill in the past but there could be enough momentum to get it done this year. The bill would include funding for not only roads and bridges but water and wastewater facilities and the expansion of broadband to shrink the digital divide between the haves and the have nots.

Immigration reform Another top priority is to finally pass immigration reform to secure a future workforce for the state and provide a pathway to citizenship for longtime immigrant employees as well as Dreamers, young adults who were brought here as children by their undcoumented relatives.

Upgrades to ports of entry Keeping the border secure and expanding trade in Arizona will require investing in new technology and infrastructure at ports of entry, another key goal, Kelly said.

鈥淭he federal government is failing our state when it comes to border security,鈥� Kelly said. 鈥淲e need a secure, orderly and safe process at the border.鈥�

Business worries: corporate taxes, filibuster, the PRO Act 

U.S. 番茄社区 executive Bradley rounded out the event by touching on a number of concerns to businesses. 

One is the growing national debt from three massive Covid relief packages, topping $5 trillion. In order to accomplish an infrastructure package and other important projects, federal relief in the last round should have been more focused and targeted to real need, he said.

鈥淲hen you think of last spring, we knew Congress had to provide broad based support. But what we鈥檝e seen is not every family, every industry and every state needs relief,鈥� Bradley said. 

Bradley also talked about President Biden鈥檚 proposal to raise the corporate tax rate from 21 to 28 percent. He does not believe the measure has enough support to succeed, but if it does, it will risk the progress Arizona and the nation have made in becoming more globally competitive, he said. 

Changing the corporate tax rate would likely reverse the successes that followed passage of the Tax Cuts and Jobs Act of 2017, he said. Prior to the Act, the nation had one of the highest corporate tax rates in the world. American companies were looking abroad for growth and new investment. 

鈥淭ax changes would give a leg up for competitors abroad. Why would we want to do that?鈥� he said.

When asked about efforts by many Democrats in Congress to remove the filibuster, Bradley said that would likely hurt the nation, too. With strong division between the right and the left, the filibuster ensures that that congressional members have to work to find common ground, he said.

Another concern is the proposed PRO Act of 2021, which also does not appear to have strong support in Congress, Bradley said. The Act would force employees to pay union dues regardless of whether they support a union, threaten private ballots in union elections, and strip workers of their independent contractor classification.

It鈥檚 an issue that is extremely worrisome to Arizona businesses, said Garrick Taylor, interim president and CEO of the Arizona 番茄社区. 

鈥淭his proposal is a litany of almost every failed idea from the past three decades of labor policy,鈥� Taylor said. 鈥淚t would undermine workers rights, most likely trap employers in a maze of labor disputes and force individuals to pay union dues regardless of their wishes.鈥�

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