Schatz, Cornyn Introduce Bipartisan Bill To Support Creative Workers, Small Businesses, Grow American Economy

WASHINGTON – U.S. Senators Brian Schatz (D-Hawai‘i) and John Cornyn (R-Texas) today introduced the Comprehensive Resources for Entrepreneurs in the Arts to Transform the Economy Act (CREATE) Act. The bipartisan legislation will support small businesses in creative industries by increasing access to federal resources to help them grow.

“Local artists, writers, performers, and the creative industry they support play a leading role in our economy and our everyday lives. As the creative economy begins to rebuild from the pandemic, we have an opportunity to make key federal investments that will create new jobs and help the industry reach its full potential,” said Senator Schatz.

“The world knows about the Lone Star State and our rich culture thanks to the creative Texans who have chronicled our way of life for hundreds of years,” said Senator Cornyn. “This legislation would support the Texas writers, singers, artists, and arts entrepreneurs whose work helps drive our economy.” 

The creative economy includes businesses focused on individual creativity, skill, talent, or expression of indigenous culture or regional or local heritage culture. These businesses collectively add $919.7 billion annually to our nation’s Gross Domestic Product, with a growth rate nearly double the rest of the economy.

The recent growth of the creative economy has occurred despite federal small business and economic development policies largely ignoring the needs of the industry. The CREATE Act will offer direct, concrete support to these businesses. Specifically, the CREATE Act:

• Expands the Microloan Program qualifications to include artists and arts entrepreneurs, or small businesses, that support the creative economy;
• Provides support to state, regional, and local art agencies, artists, and creative workers through traditional economic development tools;
• Directs the Small Business Administration (SBA) to develop procedures on evaluating the business proposals and plans of non-employer business and small businesses within the creative economy;
• Tasks the SBA with partnering with relevant stakeholders to develop a technical assistance program that targets the specific needs of artists and arts entrepreneurs; and
• Establishes a program to examine helping local arts agencies and nonprofits with planning grants.

“We are excited how the CREATE Act will help millions of artists, makers and designers grow America’s creative economy. In 2020, Etsy’s creative community added $13 billion and 2.6 million jobs to the economy - imagine the impact these resources can have on the creative economy and local communities. We look forward to continuing to work with policymakers to promote public policies that enable creative entrepreneurs to thrive,” said Jeffrey Zubricki, Head of Americas Advocacy and Public Policy at Etsy.

“The CREATE Act is a critical bipartisan policy solution that would strengthen our nation’s investment in our creative economy. By focusing on economic development and small business policy, this bill seeks to leverage existing federal opportunities for the betterment of communities throughout the country. This legislation will boost our small business communities, cultural tourism sector, and entrepreneurs and micro-businesses seeking to build better careers, increase revenues and create jobs. In partnership with the nation’s 4,500 local arts agencies, 56 state arts agencies, 5.2 million creative workers and the state arts alliances that advocate for them, Americans for the Arts is proud to endorse the CREATE Act and will work vigorously to advance it in Congress,” said Nolen V. Bivens, President and CEO of Americans for the Arts.

The CREATE Act has been endorsed by more than 400 organizations including Etsy, Get Creative Workers Working Coalition, Hawai‘i Arts Alliance, American Planning Association, Be An #ArtsHero/Arts Workers United, the Performing Arts Alliance, Americans for the Arts, the National Association of Music Merchants, Grantmakers in the Arts, the Freelancers Union, the American Planning Association, the National Alliance of Economic and Community Development Associations, National Assembly of State Arts Agencies, and Transportation 4 America/SmartGrowth America.

Companion legislation in the U.S. House of Representatives has been introduced by U.S. Representative Debbie Dingell (D-Mich.).

###