If Democrats succeed in their quest to amend the Small Business Act, it could have a devastating affect on small businesses. New York Representative Nydia Velazquez is leading Democrats in a push to pass H.R. 5819, the Small Business Innovation Research and Small Business Technology Transfer Reauthorization Act.

The bill would effectively change the current definition of a small business from "independently owned" to include businesses owned up to 49.9% by venture capital firms.

GenomeWeb Daily News reports:

"This draft of the bill would reauthorize the programs through 2010 and would give Congress time to examine how the programs are working. The bill also would increase funding levels, raising Phase I awards from $100,000 to $300,000 and Phase II awards from $750,000 to $2.2 million, to reflect the rising costs of high-tech research."

This is the second time in the past year that Velazquez and the Small Business House Committee have tried to pass legislation that would allow wealthy investors to profit from government funds.

Many small businesses may not be able to survive if this bill becomes a law.

The bill is expected to be fast tracked by House leaders in an effort to avoid criticism from small business advocates and media attention.

Find out more on this bill including what you can do to protect your small business, in the SmallBusinessNewz video.

Source: http://www.smallbusinessnewz.com/topnews/2008/04/18/democrats-attempt-to-amend-small-business-act