[Congressional Record Volume 170, Number 36 (Wednesday, February 28, 2024)]
[House]
[Pages H725-H726]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        ENCOURAGING SUCCESS ACT

  Mr. WILLIAMS of Texas. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 6591) to amend section 8(a) of the Small Business 
Act to require the Administrator of the Small Business Administration 
to regularly reassess the asset and net worth thresholds for qualifying 
as an economically disadvantaged individual, and for other purposes, as 
amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 6591

       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 ``Encouraging Success Act''.

     SEC. 2. REGULAR REASSESSMENT OF THE THRESHOLDS FOR 
                   ECONOMICALLY DISADVANTAGED INDIVIDUALS.

       (a) In General.--Section 8(a)(6) of the Small Business Act 
     (15 U.S.C. 637(a)(6)) is amended by adding at the end the 
     following new subparagraph:
       ``(F)(i) Not later than one year after the date of the 
     enactment of this subparagraph, and not less frequently than 
     every four years thereafter, the Administrator shall assess 
     and, if appropriate, revise the maximum value of asset and 
     the maximum net worth an individual may have to qualify as an 
     economically disadvantaged individual under subparagraph (A) 
     to account for changes in the economy, including inflation 
     and other factors as determined appropriate by the 
     Administrator.
       ``(ii) The Administrator shall make each covered revision 
     by issuing a rule after an opportunity for public notice and 
     comment.
       ``(iii) To the extent practicable, the Administrator shall 
     coordinate the activities carried out under clause (i) with 
     the activities required under section 1344(a)(2) of the Small 
     Business Jobs Act of 2010 (15 U.S.C. 632 note).
       ``(iv) In this subparagraph, the term `covered revision' 
     means a revision described in clause (i) that the 
     Administrator determines is appropriate pursuant to an 
     assessment under such clause.''.
       (b) Compliance With Cutgo.--No additional amounts are 
     authorized to be appropriated to carry out this Act or the 
     amendments made by this Act.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Texas (Mr. Williams) and the gentlewoman from New York (Ms. Velazquez) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Texas.


                             General Leave

  Mr. WILLIAMS of Texas. 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 material on the bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  Mr. WILLIAMS of Texas. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise today in support of H.R. 6591, the Encouraging 
Success Act, sponsored by the gentleman from Texas (Mr. Ellzey), my 
good friend.
  The 8(a) program allows certain small businesses to compete for 
valuable contracting opportunities. However, SBA regulations threaten 
to remove the participating firms if the owner reaches certain 
financial thresholds. While these thresholds are necessary to ensure 
that only true small businesses are utilizing this program, it can 
force some small business owners to make a tough decision: proactively 
stop expanding their business so they can stay in the program or grow 
outside the limits set by the SBA and get kicked out of the program.
  I spoke with a female veteran in my district who was facing this 
exact issue. The bill doesn't solve all the issues in this program, but 
it requires the SBA to reassess the 8(a) asset threshold cap every 4 
years, ensuring it is in line with market realities.
  Mr. Speaker, I urge my colleagues to vote for H.R. 6591, the 
Encouraging Success Act, and I reserve the balance of my time.

                              {time}  1730

  Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I thank my colleagues, Representatives Ellzey and 
Thanedar, for their work on this bill, the Encouraging Success Act.
  The 8(a) program is one of the most effective tools for minority 
businessowners to get their foot in the door of the Federal 
marketplace.
  The program is critical for entrepreneurs who have faced 
discrimination. This bill requires the SBA to regularly assess, and, 
when necessary, update the economic threshold for program 
participation.
  I share the sponsors' concerns that the lack of reassessment or 
readjustment can penalize growth and that a regular assessment will 
ensure that the program keeps pace with changing economic environments.
  Mr. Speaker, the National Minority Supplier Development Council has 
said that this legislation will enhance the effectiveness of SBA 
programs, including the esteemed 8(a) program, ensuring they continue 
to serve as powerful catalysts for community wealth building and 
inclusive economic development.
  The 8(a) program remains a win-win for the government and for 
communities across the country. It has led to

[[Page H726]]

a more diverse Federal market and supply chain, provided billions of 
dollars annually through streamlined contracting processes for minority 
businessowners, and continues to work to help minority businessowners 
overcome the real and ongoing discrimination that would otherwise hold 
them back.
  Keeping 8(a) intact and relevant must remain a top priority. I 
appreciate the sponsors for their work, and I reserve the balance of my 
time.
  Mr. WILLIAMS of Texas. Mr. Speaker, I yield such time as he may 
consume to the gentleman from Texas (Mr. Ellzey).
  Mr. ELLZEY. Mr. Speaker, I thank Chairman Williams and Ranking Member 
Velazquez for allowing me to lay out H.R. 5961, the Encouraging Success 
Act. Bipartisanship on this committee is alive and well, and I thank 
Congressman Thanedar for joining me on this bill.
  The Small Business Administration's 8(a) program was established in 
the 1970s to help small businesses compete with large corporations for 
U.S. Government contracts.
  A qualifying small business can only be a part of the program for 9 
years. To initially qualify and remain in the 8(a) program, there is a 
cap to the value of a small business' assets.
  Since the program's inception, the asset cap has only been raised 
twice and is currently at the very small amount of $6.5 million.
  The asset threshold is set through an SBA-determined regulation, and 
the law does not outline any process of when or how the SBA should 
reassess the threshold to remain in line with market changes.
  Unfortunately, because the requirements to initially qualify for the 
program or to remain in it haven't kept up with market changes, the cap 
is set to a level at which a small business is disadvantaged to compete 
in the open market at the end of the 9-year program.
  The SBA's slow-to-change attitude with the asset cap can limit the 
success of an 8(a) small business or outright kill it.
  With the threat of being graduated out of the 8(a) program, small 
business owners must decide whether their firm's growth is worth being 
removed from the program.
  Our bill, H.R. 6591, helps solve the situation and encourages success 
of small businesses by compelling the SBA administrator to review the 
qualification caps with greater frequency to ensure that small 
businesses participating in the 8(a) program are allowed to grow big 
enough to compete with larger companies, once their participation in 
the program ends. We ask for your support for H.R. 6591.
  Ms. VELAZQUEZ. Mr. Speaker, again, I appreciate the great work of my 
colleagues on this bill, and I yield myself the balance of my time.
  I will close by noting that 3 weeks ago, the committee held a hearing 
on small business size standards and contracting policies and the 
barriers they can pose to growth.
  As we discussed, the Federal Government needs to both recruit and 
retain small business government contractors.
  We are seeing that retaining small firms, like those in the 8(a) 
program, is a necessity for the health of the industrial base.
  This bill will contribute to the retention of growing small 
businesses. It is a productive step designed to ensure that minority 
businessowners can succeed, thrive, and grow in the Federal marketplace 
and beyond.
  Mr. Speaker, I yield back the balance of my time.
  Mr. WILLIAMS of Texas. Mr. Speaker, I urge my colleagues to support 
this commonsense legislation from Congressmen Ellzey and Thanedar, and 
I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Texas (Mr. Williams) that the House suspend the rules 
and pass the bill, H.R. 6591, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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