Subject: U.S. Enterprise Communities need your help Dear Interested U.S. Citizens, especially EZ/EC Activists, We believe that tax incentives to stimulate private investment are vital to success of the "American Community Renewal and New Markets Empowerment Act" (S. 2936 at http://www.senate.gov/member/va/robb/releases/nrjul26.html). The Senate Finance Committee will Markup S. 2936 over the next few days. S. 2936 has several important tax and investment incentives that can help revitalize both rural and urban Empowerment Zones and Enterprise Communities (EZ/EC, http://www5.hud.gov/urban/default.asp). Of keen importance to small business development is the ability for investments in Empowerment Zone (and as we recommend, Enterprise Community) Businesses to be sold and the capital gains rolled over into another EZ/EC Business. In the "Small is Good" next wave of Internet-enabled business development (see http://sohodojo.com/views.html), such roll-over incentives will encourage investment in the nation's Empowerment Zones and Enterprise Communities. These provisions will stimulate a fluid business development marketplace which includes access to investment capital for talented free agents and small businesses within our revitalized rural and urban communities. The capital gains provisions in S. 2936 will support an investment strategy of strategic, small placements in entrepreneurial free agents and small businesses which subsequently may be rolled over into investments in emerging growth companies in our Enterprise Communities. (See http://sohodojo.com/nanocorp-primer/oevc-nevc_01.html for a perspective on 'New Economy Venture Capital'.) Ninety-five existing Enterprise Communities, including three North Carolina ECs are at risk of being left out of the provisions relevant to investment incentives in S. 2936. Currently, these provisions are written specific to the nation's 40 Empowerment Zones. We are recommending that Section 405, 406 and 407 of S. 2936 be amended to include our Enterprise Communities. (Tax impact information available on request.) If this issue is of interest to you, please join us and send a faxed letter to your Senators. Also please send a copy to fellow activist, Gene Gaines (http://www.gainesgroup.com) at 209-671-5082. It is important that you fax a copy of your letters to Gene as he is working DIRECTLY with the Markup task group and is 'on the Hill' nearly every day. He will gather, print, collate and distribute complete hard-copy archives of ALL letters sent to our representatives about this issue. Gene believes that our and others' efforts to correct this oversight have a good chance of affecting the final Markup. But your voice is needed now. Please encourage your representatives to make sure that Enterprise Communities are added to Section 405, 406 and 407 of S. 2936. (Find your Senators at http://congress.org) We have included our letter to North Carolina's Senator John Edwards to facilitate your efforts in this regard. Thank you for taking the time to read this message, and a special thanks, if you are able to add your voice to this issue. (And don't forget to fax a copy of your letters to Gene Gaines at 209-671-5082.) Best Regards, --Jim and Timlynn-- Hosts, Sohodojo - The Entrepreneurial Free Agent and Dejobbed Small Business R&D Lab http://sohodojo.com Jim Salmons and Timlynn Babitsky ___________________________________________ JFS Consulting, a North Carolina nanocorp http://jfsconsulting.com ======== SAMPLE LETTER ======================================= 10 September 2000 Subject: North Carolina's Enterprise Communities need your help Dear Senator Edwards, S. 2936 "American Community Renewal and New Markets Empowerment Act" [the "Act"] is set for Markup in the Senate Finance Committee September 14, 2000. This Act contains several important provisions including Sections 405, 406 and 407 which provide for a capital gains roll over for investments made into an Empowerment Zone Business after the enactment date if held for a year or more, and a capital gains reduction for sales of Qualified Small Business Stock of Empowerment Zone Businesses purchased after the enactment date. The bill as currently considered provides these tax incentives to Empowerment Zones. Under consideration is extending this bill to also include Enterprise Communities. As you know, North Carolina has a need to bring economic development to its three designated Enterprise Communities - Halifax/Edgecombe/Wilson, Robeson County, and Charlotte. These Enterprise Communities have made great strides in initiating projects with the federal funding they received through the 1993 Omnibus Budget Reconciliation Act. However, to carry their initial successes into future growth and development, they must be able to attract private investment capital. By requesting that Enterprise Communities be included in the Chairman's Mark of S. 2936, you can assure that the small businesses of North Carolina's Enterprise Communities offer investors an attractive way to leverage their investments while growing a stronger economy in our State. Please join us in pressing the Senate Finance Committee to include Enterprise Communities in Section 405, 406 and 407 of S. 2936. Thank you for your time in reading this letter and for all your efforts to help improve the quality of life and to strengthen the economy in our great State. Best Regards, --Jim Salmons and Timlynn Babitsky-- Raleigh, North Carolina Hosts, Sohodojo - The Entrepreneurial Free Agent and Dejobbed Small Business R&D Lab http://sohodojo.com Jim Salmons and Timlynn Babitsky ___________________________________________ JFS Consulting, a North Carolina nanocorp http://jfsconsulting.com