On July 24, the House Small Business Committee approved, by voice vote, H.R. 2802, which would reauthorize the programs of the Small Business Administration (SBA) for two years.
The bipartisan legislation, which was sponsored by Committee Chair Don Manzullo (R-IL) and Ranking Member Nydia Velazquez (D-NY), would reauthorize the Small Business Investment Act of 1958 and the Small Business Act of 1953, which created the SBA. Rep. Manzullo asserted that the bill would make SBA programs and personnel more efficient, accountable, and useful for small businesses.
“This major rewrite of the SBA’s operations … [will make] the SBA loan and finance programs more attractive by increasing loan limits. It requires the SBA to focus more on counseling struggling small businesses and helping them seek federal contracts. And it requires the SBA to carry out functions to specifically assist small manufacturers,” Rep. Manzullo said. “This bill will go a long way in helping the SBA better help our small businesses survive these difficult times and return to prosperity.”
In an effort to help small businesses win more lucrative government contracts, H.R. 2802 would eliminate rules that encourage so-called “bundling” of government contracts a practice many small businesses say has hampered their ability to win federal contracts. Contract bundling is the practice by a federal department or agency of consolidating several small projects, which would normally be contracted out separately, into one single mega-contract that favors large companies.
“Today, while the federal marketplace has increased 7 percent to $235 billion in 2002, small businesses have actually seen their share drop by almost double that,” said Rep. Velazquez. “Sadly, contracting opportunities are bad for small business and getting worse. Even the President realized this last year when he vowed to open up contracting for small businesses. … We will make sure that small businesses have a fair appeals process when they disagree with an agency’s procurement strategy and close loopholes when defining a bundled contract so that contracting officers can no longer skirt the true intent of the law,” she added.
Rep. Velazquez went on to note that, since women and minorities are two of the fastest growing segments of the U.S. economy, increasing opportunities for them was a priority. Studies have shown that small businesses that receive technical assistance are twice as likely to succeed. Toward that end, the Women’s Business Centers part of a national network of small business training programs would be refocused to provide assistance to low-income and minority women. H.R. 2802 would create a preference in selection criteria for business centers serving disadvantaged women. It also would increase funding to help states that currently do not have a Women’s Business Center establish one. The bill also would increase the authorization level for the Women’s Business Centers from $14.5 million in FY2003, to $16 million in FY2004 and $17.5 million in FY2005.
Additionally, the Women’s Procurement Program, which became law in 2000 but has yet to be implemented, pending completion of a GAO study, would become effective with the passage of H.R. 2802.
The Senate Committee on Small Business and Entrepreneurship approved its version of the SBA reauthorization (S. 1375) on July 10 (see The Source, 7/11/03).
