[Congressional Record Volume 168, Number 199 (Wednesday, December 21, 2022)]
[Extensions of Remarks]
[Page E1329]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     REINTRODUCING THE EMERGING BUSINESS ENCOURAGEMENT ACT OF 2022

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                           HON. ANDRE CARSON

                               of indiana

                    in the house of representatives

                      Wednesday, December 21, 2022

  Mr. CARSON. Madam Speaker, today I am reintroducing the Emerging 
Business Encouragement Act which will give new small businesses a more 
equal playing field to secure federal contracts.
  Emerging businesses face obstacles that are distinctly different from 
more well-established small businesses. Under the Emerging Business 
Act, the Small Business Administration would create a new designation 
for an Emerging Business Enterprises based on the company's age, size 
and total compensation. This will encourage meaningful opportunities 
among like-sized enterprises compared to competition against larger, 
fully-established enterprises.
  Emerging businesses often have trouble securing federal contracts. 
The Emerging Business Encouragement Act will expand opportunities by 
requiring federal agencies to set contracting goals for emerging 
business enterprises equal to or not less than 3 percent of contracts 
and subcontracts.
  Additionally, many emerging businesses have difficulty accessing the 
capital they need to develop products and hire workers. Under the 
Emerging Business Encouragement Act, the percentage of federal loan 
guaranty authority for Small Business Administration loans would 
increase from 50 percent for all small businesses to 65 percent for 
emerging business enterprise, providing a significant incentive for 
lenders to lend to these businesses.
  We must support all job creators as our economy continues to recover, 
but there are significant differences between a startup with only a few 
employees and an established business with a few hundred employees and 
decades of experience. This legislation will help these emerging 
businesses overcome the unique challenges they face in their first few 
years of operation, and it will ensure these businesses are able to 
compete for federal contracts and gain access to critical small 
business loans.
  To be certified as an emerging business enterprise, a company must be 
10 percent or less the size of the current SBA designation for a small 
business, which is typically capped at 500 employees. The company must 
be less than 5 years old at the time of certification with annual 
compensation of individuals in management positions not exceeding 200 
percent of the annual mean wage for ``Management Occupations'' defined 
by the U.S. Department of Labor. These standards will ensure that those 
businesses benefiting from EBE programs are truly emerging.
  With this bill, we can help entrepreneurs get through their first few 
years, when so many businesses fail, so they can grow and create jobs. 
And it provides incentives for lenders to provide capital to emerging 
businesses, one of the top concerns for entrepreneurs.
  Madam Speaker. I invite my colleagues to join me in supporting this 
important bill.

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