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House Passes Bipartisan Bills to Address Size Standards, Past Performance Concerns

Washington, January 8, 2020

Washington, D.C.— Today, the House passed bipartisan reforms to improve opportunities for small businesses to be competitive in the marketplace. H.R. 5130, the Capturing All Small Businesses Act of 2019, was authored by Rep. Marc Veasey (D-TX) and Rep. Kevin Hern (R-OK). H.R. 5146, the Unlocking Opportunities for Small Businesses Act, was authored by Rep. Jim Hagedorn (R-MN) and Vice Chair Dwight Evans (D-PA).
H.R. 5130 modifies the methods for calculating the employee-based size standard by the SBA for small businesses. The SBA size standards represent the largest size that a firm may be to retain their small business classification. Under current law, expanding small businesses often outgrow their size standards and become ineligible for small business set-asides and SBA programs. By modifying the receipts-based formula the SBA uses to calculate size, H.R. 5130 will give small businesses more time to transition and the ability to better compete in the marketplace.
“In my home state of Texas, small businesses make up 99.8 percent of all businesses and employ 4.7 million Texans. When I am back home, I get to see the unique impact that these businesses have on our local economy through my Marc Means Business (MMB) initiative where I visit and volunteer at businesses of all sizes across the district” said Congressman Marc Veasey. “This legislation will provide small businesses like the ones I have visited with the much-needed relief and protections they deserve.”

H.R. 5146 would allow small businesses to leverage past performance experience obtained as part of joint ventures and subcontracts, which otherwise wouldn’t be an option, Small businesses that wish to perform as prime contractors are often faced with a dilemma. Prime contracts are judged on the basis of past performance. This past performance is judged by work history on prime contracts. Without the requisite work experience, small businesses don’t have the ability to compete for and win prime contracts. But without winning prime contracts, they are unable to develop a record of performance that would allow them to earn a contract. H.R. 5146 would address this issue.

“Creating economic opportunities for minorities is crucial to advancing their well-being—financially, physically, and socially,” said Congressman Dwight Evans. “With passage of this bipartisan bill into law, we will create circumstances where all small businesses— including minority-owned small businesses—will be better equipped to compete and thrive.”

To watch lawmakers speak on the House floor in support of these bills, click here.


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