[Congressional Record Volume 164, Number 158 (Tuesday, September 25, 2018)]
[House]
[Pages H8805-H8806]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SMALL BUSINESS RUNWAY EXTENSION ACT OF 2018
Mr. CHABOT. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 6330) to amend the Small Business Act to modify the method
for prescribing size standards for business concerns.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 6330
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Small Business Runway
Extension Act of 2018''.
SEC. 2. MODIFICATION TO METHOD FOR PRESCRIBING SIZE STANDARDS
FOR BUSINESS CONCERNS.
Section 3(a)(2)(C)(ii)(II) of the Small Business Act (15
U.S.C. 632(a)(2)(C)(ii)(II)) is amended by striking ``3
years'' and inserting ``5 years''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Ohio (Mr. Chabot) and the gentlewoman from New York (Ms. Velazquez)
each will control 20 minutes.
The Chair recognizes the gentleman from Ohio.
General Leave
Mr. CHABOT. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days in which to revise and extend their remarks and
include extraneous materials on the bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Ohio?
There was no objection.
Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume.
[[Page H8806]]
Mr. Speaker, I thank Mr. Knight and Ms. Clarke for this leading
bipartisan legislation, which takes a critical step toward addressing
the challenge that small contractors face when entering the middle
market.
The primary objective of the SBA's small business programs is to
encourage the growth and vibrancy of the Federal supplier base, boost
competition, protect against supplier consolidation, and spur
innovation. These noble goals are thwarted when small businesses find
themselves competing in the open market prematurely before they have
the tools they need to succeed.
Given the increasing size of Federal contract awards made today, one
or two big awards won by a small contractor could easily force them out
of the category of small business. Since many do not have the
infrastructure or competitiveness to go head to head against firms many
times their size, they often fail or become consumed into a larger
competitor's supply chain. These results contravene the mission and
purpose of the small business programs, further widening the divide
between large and small contractors.
Competitiveness takes time, hard work, and significant resources to
build. However, difficult as it is to build competitiveness, it is just
as easily lost. H.R. 6330 provides a solution to this problem, allowing
small businesses extra time to potentially retain their ``small'' size
status while they continue to develop their competitive edge.
Mr. Speaker, I urge my colleagues to support H.R. 6330, and I reserve
the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise in support of H.R. 6330, the Small Business
Runway Extension Act of 2018.
Over the years, Congress has created numerous Federal programs, set-
asides, tax preferences, and SBA loan programs to help small businesses
succeed. However, the advantages conferred by this program have led to
heated debate over who is truly a small business and what an acceptable
small business size standard is.
The answer is an important one, as it can be underinclusive, thereby
pushing a firm outside the standard, or it can be overinclusive,
allowing large firms to compete in these programs. The end result is
the same: small firms deprived of Federal contracting opportunities.
This bill addresses the pressure placed on those businesses not able
to compete against large entities from being prematurely placed outside
their size standard by providing a more inclusive review of 5 years of
their gross receipts.
Mr. Speaker, I urge Members to support this very important
legislation, and I reserve the balance of my time.
Mr. CHABOT. Mr. Speaker, I yield such time as he may consume to the
gentleman from California (Mr. Knight) and thank him for his leadership
in this important measure.
Mr. KNIGHT. Mr. Speaker, I thank my chairman for his support on this
and many other issues that we see in our Small Business Committee.
Mr. Speaker, I urge my colleagues to support H.R. 6330, the Small
Business Runway Extension Act of 2018.
This bill is simple. It is commonsense. It is a measure designed to
promote the sustainability, growth, and development of small Federal
contractors into the open marketplace.
Under existing law, the Small Business Administration calculates the
size of a company by taking the average of the past 3 years of gross
receipts. A company's average must be within established industry
parameters set by the SBA in order to be considered a small business
and be eligible to receive access to SBA's small business programs,
resources, and assistance.
My bill is very simple. It extends that time period out to 5 years.
This additional time allows all small businesses an opportunity to
mature before graduating out of the SBA's small business programs.
Over the course of this Congress, we have conducted hearings, held
roundtables, and heard stories of the overwhelming mid-market
challenges forcing many successful small contractors to close their
doors or stall their growth. Prospects for a newly graduated firm
successfully integrating into the open marketplace are rapidly
declining due to the widening gap between small and large contractors.
Small firms are opting out--either voluntarily or, in many cases,
involuntarily--from joining the Federal marketplace because of this
rift. This outcome depletes our industrial base, reduces competition,
and inhibits economic growth.
Mr. Speaker, do we really want our small businesses to look at their
ability to expand and their ability to be a larger and more prosperous
business and say: I can't do this because I am going to move out of the
SBA, so what I should do is maybe close my doors or just restrict our
growth.
That is not what America is all about. That is not what we want out
of our small businesses. We want them to expand. We want them to bring
new and innovative things to the marketplace. And we want them to
expand and have jobs for our kids and for the next generation.
Mr. Speaker, I think that this is a reasonable look at what we are
trying to do, and I urge support of H.R. 6330.
Ms. VELAZQUEZ. Mr. Speaker, I yield back the balance of my time.
Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume to
close.
Mr. Speaker, this legislation gives small businesses more time to
adjust to not being a small business anymore. We want our small
businesses to thrive and grow and break through to the mid-tier and big
business strata. Oftentimes, that is difficult.
H.R. 6330 gives these firms just a little more time to adapt to their
new business environment, so they can compete more efficiently and
continue to grow and create more jobs for more Americans.
I again thank Mr. Knight for his leadership on this.
Mr. Speaker, I urge my colleagues to support this bipartisan piece of
legislation, and I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Ohio (Mr. Chabot) that the House suspend the rules and
pass the bill, H.R. 6330.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
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