In a bipartisan effort, U.S. Sen. Brian Schatz (D-HI) and U.S. Sen. John Cornyn (R-TX) proposed the Comprehensive Resources for Entrepreneurs in the Arts to Transform the Economy (CREATE) Act.
This act is intended to provide support to small businesses in creative industries by increasing federal funding in those areas to help them expand. The CREATE Act enjoys widespread support.
Businesses centered on personal creativity, skill, talent or expression of indigenous culture, or regional or local heritage culture, all together, contribute $919.7 billion annually to the nation’s Gross Domestic Product, according Schatz's website.
"The creative industry is vital to both our economy and our everyday lives, adding billions of dollars to our nation’s GDP while enriching our society with the arts and creative expression," Schatz said in Jan. 12 Facebook post. "As artists, writers, performers and others begin to rebuild from the pandemic, we must invest in the creative industry to create new jobs and help it reach its full potential. That’s why I’m introducing legislation with John Cornyn to expand federal resources for small businesses in creative industries. Our bill will increase access to loan and assistance programs and grants, and ensure that federal policies offer the support creative businesses need to thrive."
The CREATE Act broadens the Microloan Program qualifications to include artists and arts entrepreneurs or small businesses that contribute to the creative economy, according to Schatz's website. The CREATE Act is supported by more than 400 organizations, including Etsy, the AFL-CIO, Americans for the Arts and the Freelancers Union. The creative economy is estimated to contribute dollars to the economy at a rate double that of other industries.
According to Schatz, "companion legislation" has been written and proposed in the U.S. House of Representatives with the intention of being passed concurrently.