[House Report 119-680]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 119-680
=======================================================================
OVERSIGHT AND TRANSPARENCY FOR SMALL BUSINESS CERTIFICATIONS ACT OF
2026
----------------
June 3, 2026.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
----------------
Mr. Williams of Texas, from the Committee on Small Business,
submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 8879]
The Committee on Small Business, to whom was referred the
bill (H.R. 8879) to amend the Small Business Act to require a
report on small business concern participation in a covered
contracting programs, and for other purposes, having considered
the same, reports favorably thereon without amendment and
recommends that the bill do pass.
CONTENTS
Page
I. Purpose and Bill Summary........................................2
II. Need for Legislation............................................2
III. Hearings........................................................2
IV. Committee Consideration.........................................2
V. Committee Votes.................................................2
VI. Section-by-Section of H.R. 8879.................................4
VII. Congressional Budget Office Cost Estimate.......................4
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditure4
IX. Oversight Findings & Recommendations............................5
X. Performance Goals and Objectives................................5
XI. Statement of Duplication of Federal Programs....................5
XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits........................................................5
XIII. Federal Mandates Statement......................................5
XIV. Federal Advisory Committee Statement............................5
XV. Applicability to Legislative Branch.............................5
XVI. Statement of Constitutional Authority...........................6
XVII. Changes in Existing Law Made by the Bill, as Reported...........6
XVIII.Minority Views.................................................10
I. Purpose and Bill Summary
On May 19, 2026, Rep. John Olszewski (D-MD) and Rep. Tony
Wied (R-WI), introduced H.R. 8879, the Oversight and
Transparency for Small Business Certifications Act of 2026.
H.R. 8879 requires the U.S. Small Business Administration (SBA)
to provide a report to Congress regarding certification
activities and contract awards within the SBA's small business
programs, including certain certification activities for Women-
Owned Small Business (WOSB), HUBZone (Historically
Underutilized Business Zones), and Service-Disabled Veteran-
Owned Small Business (SDVOSB) programs.
II. Need for Legislation
The Oversight and Transparency for Small Business
Certifications Act of 2026 requires the SBA to report on
certification activities and contract awards related to its
small business programs. Certain certification activities are
required for the Women-Owned Small Business (WOSB), HUBZone
(Historically Underutilized Business Zones), and Service-
Disabled Veteran-Owned Small Businesses (SDVOSB) programs. The
report would include data on the number of certifications
granted or denied, application processing times, and the use of
the SBA's certification platform.
This bill requires reports to Congress to ensure
accountability within these programs. As bad actors look to
take advantage of the SBA's small business programs, H.R. 8879
is intended to help root out waste, fraud, and abuse.
III. Hearings
On February 5, 2025, the Committee on Small Business held a
hearing examining matters related to H.R. 8879 entitled ``Hope
on the Horizon: Prioritizing Small Business Growth in the 119th
Congress.''
IV. Committee Consideration
The Committee on Small Business met in open session, with a
quorum being present, on May 20, 2026, and ordered H.R. 8879 to
be reported favorably to the House of Representatives by a roll
call vote of 23 ayes to 0 nos.
V. Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the recorded
votes on the motion to report legislation and amendments
thereto. The Committee voted to favorably report H.R. 8879 to
the House of Representatives at 4:10 PM.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
VI. Section-by-Section of H.R. 8879
Section 1--Short title
This Act may be cited as the ``Oversight and Transparency
for Small Business Certifications Act of 2026.''
Section 2--Report on small business concern participation in a covered
contracting program
This section amends the Small Business Act to require the
SBA to submit an annual report to Congress on participation in
covered small business contracting programs.
This section requires the SBA to report the total number of
certified small businesses participating in covered contracting
programs; application and certification determination data;
participation across multiple certification programs; and the
use of SBA's unified certification application platform.
Additionally, this section establishes program-specific
reporting requirements for the WOSB, HUBZone, and SDVOSB
programs. For these three programs, the SBA is required to
report on the number of applications denied, the average time
for first-time applicants to receive a certification
determination, the percentage of applications submitted within
the SBA's timeframe, and the average time for recertification
applicants. The report must also include information on
applicants seeking certifications in multiple programs and the
use of SBA's certification application platform.
For the WOSB program specifically, this section requires
reporting on firms eligible for sole-source awards,
certifications processed by national certifying entities, and
applications initially submitted without sufficient information
for certification determination.
This section also requires SBA to report processing and
recertification timeframes for SDVOSBs, WOSBs, and HUBZone
small business concerns, including the percentage of
determinations completed within SBA's timelines and the average
time required for certification and recertification
determinations.
A covered contracting program includes the definitions of
8(a), WOSB, HUBZone, and SDVOSB as referenced in the Small
Business Act.
VII. Congressional Budget Office Cost Estimate
Pursuant to 3(c)(3) of rule XIII of the Rules of the House
of Representatives, the Committee adopts as its own the cost
estimate prepared by the Director of the Congressional Budget
Office pursuant to section 402 of the Congressional Budget Act
of 1974. At the time this report was filed, the Committee has
requested but not received a cost estimate from the Director of
the Congressional Budget Office.
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditures
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the
House of Representatives and section 308(a)(I) of the
Congressional Budget Act of 1974, the Committee provides the
following opinion and estimate with respect to new budget
authority, entitlement authority, and tax expenditures. While
the Committee has not received an estimate of new budget
authority contained in the cost estimate prepared by the
Director of the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974, the Committee does
not believe that there will be any new or increased costs
attributable to this legislation.
IX. Oversight Findings & Recommendations
In accordance with clause 3(c)(1) of rule XIII and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the oversight findings and recommendations of the Committee on
Small Business with respect to the subject matter contained in
H.R. 8879 are incorporated into the descriptive portions of
this report.
X. Performance Goals and Objectives
With respect to the requirements of clause 3(c)(4) of rule
XIII of the Rules of the House of Representatives, the goal of
H.R. 8879 is to increase transparency in SBA small business
certification programs.
XI. Statement of Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, no provision of H.R. 8879 is known to
be duplicative of another Federal program, including any
program that was included in a report to Congress pursuant to
section 21 of Public Law 111-139 or the most recent Catalog of
Federal Domestic Assistance.
XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee finds that the bill
does not contain any congressional earmarks, limited tax
benefits, or limited tariff benefits as defined in clause 9(e),
9(f), or 9(g) of rule XXI of the Rules of the House of
Representatives.
XIII. Federal Mandates Statement
The Committee will adopt as its own the estimate of the
Federal mandates prepared by the Director of the Congressional
Budget Office pursuant to section 423 of the Unfunded Mandates
Reform Act.
XIV. Federal Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
XV. Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
XVI. Statement of Constitutional Authority
Pursuant to clause 7 of rule XII of the Rules of the House,
the Committee finds that the authority for this legislation in
Art. I, Sec. 8, cl.1 of the Constitution of the United States.
XVII. Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
SMALL BUSINESS ACT
* * * * * * *
Sec. 10. (a) The Administration shall, as soon as practicable
each fiscal year make a comprehensive annual report to the
President, the President of the Senate, the Senate Select
Committee on Small Business, and the Speaker of the House of
Representatives. Such report shall include a description of the
state of small business in the Nation and the several States,
and a description of the operations of the Administration under
this chapter, including, but not limited to, the general
lending, disaster relief, Government regulation relief,
procurement and property disposal, research and development,
technical assistance, dissemination of data and information,
and other functions under the jurisdiction of the
Administration during the previous fiscal year. Such report
shall contain recommendations for strengthening or improving
such programs, or, when necessary or desirable to implement
more effectively congressional policies and proposals, for
establishing new or alternative programs. In addition, such
report shall include the names of the business concerns to whom
contracts are let and for whom financing is arranged by the
Administration, together with the amounts involved. With
respect to minority small business concerns, the report shall
include the proportion of loans and other assistance under this
Act provided to such concerns, the goals of the Administration
for the next fiscal year with respect to such concerns, and
recommendations for improving assistance to minority small
business concerns under this Act.
(b) Cybersecurity Reports.--
(1) Annual report.--Not later than 180 days after the
date of enactment of this subsection, and every year
thereafter, the Administrator shall submit a report to
the appropriate congressional committees that
includes--
(A) a strategy to increase the cybersecurity
of information technology infrastructure of the
Administration;
(B) a supply chain risk management strategy
and an implementation plan to address the risks
of foreign manufactured information technology
equipment utilized by the Administration,
including specific risk mitigation activities
for components originating from entities with
principal places of business located in the
People's Republic of China; and
(C) an account of--
(i) any incident that occurred at the
Administration during the 2-year period
preceding the date on which the first
report is submitted, and, for
subsequent reports, the 1-year period
preceding the date of submission; and
(ii) any action taken by the
Administrator to respond to or
remediate any such incident.
(2) FISMA reports.--Each report required under
paragraph (1) may be submitted as part of the report
required under section 3554 of title 44, United States
Code.
(3) Rule of construction.--Nothing in this subsection
shall be construed to affect the reporting requirements
of the Administrator under chapter 35 of title 44,
United States Code, in particular the requirement to
notify the Federal information security incident center
under section 3554(b)(7)(C)(ii) of such title, any
guidance issued by the Office of Management and Budget,
or any other provision of law or Federal policy.
(4) Definitions.--In this subsection:
(A) Appropriate congressional committees.--
The term ``appropriate congressional
committees'' means--
(i) the Committee on Small Business
and Entrepreneurship of the Senate;
(ii) the Committee on Homeland
Security and Governmental Affairs of
the Senate;
(iii) the Committee on Small Business
of the House of Representatives; and
(iv) the Committee on Oversight and
Reform of the House of Representatives.
(B) Incident.--The term ``incident'' has the
meaning given the term in section 3552 of title
44, United States Code.
(C) Information technology.--The term
``information technology'' has the meaning
given the term in section 3502 of title 44,
United States Code.
(d) For the purpose of aiding in carrying out the national
policy to insure that a fair proportion of the total purchases
and contracts for property and services for the Government be
placed with small business enterprises, and to maintain and
strengthen the overall economy of the Nation, the Department of
Defense shall make an annual report to the Committees on Small
Business of the Senate and the House of Representatives,
showing the amount of funds appropriated to the Department of
Defense which have been expended, obligated, or contracted to
be spent with small business concerns and the amount of such
funds expended, obligated, or contracted to be spent with firms
other than small business in the same fields of operation; and
such reports shall show separately the funds expended,
obligated, or contracted to be spent for basic and applied
scientific research and development.
(e) The Administration and the Inspector General of the
Administration shall retain all correspondence, records of
inquiries, memoranda, reports, books, and records, including
memoranda as to all investigations conducted by or for the
Administration, for a period of at least one year from the date
of each thereof, and shall at all times keep the same available
for inspection and examination by the Senate Select Committee
on Small Business and the Committee on Small Business of the
House of Representatives or their duly authorized
representatives.
(2) The Committee on Small Business of either the Senate or
the House of Representatives may request that the Office of the
Inspector General of the Administration conduct an
investigation of any program or activity conducted under the
authority of section 7(j) or 8(a). Not later than thirty days
after the receipt of such a request, the Inspector General
shall inform the committee, in writing, of the disposition of
the request by such office.
(f) To the extent deemed necessary by the Administrator to
protect and preserve small-business interests, the
Administration shall consult and cooperate with other
departments and agencies of the Federal Government in the
formulation by the Administration of policies affecting small-
business concerns. When requested by the Administrator, each
department and agency of the Federal Government shall consult
and cooperate with the Administration in the formulation by
such department or agency of policies affecting small-business
concerns, in order to insure that small-business interests will
be recognized, protected, and preserved. This subsection shall
not require any department or agency to consult or cooperate
with the Administration in any case where the head of such
department or agency determines that such consultation or
cooperation would unduly delay action which must be taken by
such department or agency to protect the national interest in
an emergency.
(g) The Administration shall transmit, not later than
December 31 of each year, to the Senate Select Committee on
Small Business and Committee on Small Business of the House of
Representatives a sealed report with respect to--
(1) complaints alleging illegal conduct by employees
of the Administration which were received or acted upon
by the Administration during the preceding fiscal year;
and
(2) investigations undertaken by the Administration,
including external and internal audits and security and
investigation reports.
(h) The Administration shall transmit, not later than March
31 of each year, to the Committees on Small Business of the
Senate and House of Representatives a report on the secondary
market operations during the preceding calendar year. This
report shall include, but not be limited to, (1) the number and
the total dollar amount of loans sold into the secondary market
and the distribution of such loans by size of loan, size of
lender, geographic location of lender, interest rate, maturity,
lender servicing fees, whether the rate is fixed or variable,
and premium paid; (2) the number and dollar amount of loans
resold in the secondary market with a distribution by size of
loan, interest rate, and premiums; (3) the number and total
dollar amount of pools formed; (4) the number and total dollar
amount of loans in each pool; (5) the dollar amount, interest
rate, and terms on each loan in each pool and whether the rate
is fixed or variable; (6) the number, face value, interest
rate, and terms of the trust certificates issued for each pool;
(7) to the maximum extent possible, the use by the lender of
the proceeds of sales of loans in the secondary market for
additional lending to small business concerns; and (8) an
analysis of the information reported in (1) through (7) to
assess small businesses' access to capital at reasonable rates
and terms as a result of secondary market operations.
* * * * * * *
XVIII. MINORITY VIEWS
Congress has created four small business contracting
programs that provide tools for the government to recruit and
retain small businesses and to level the playing field for them
to enter, compete, and have success in the federal market: (1)
Women-Owned Small Business program (WOSB); (2) Historically
Underutilized Business Zone program (HUBZone); (3) Service-
Disabled Veteran-Owned Small Business program (SDVOSB); and (4)
the 8(a) Business Development program (8(a)).\1\
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\1\The legislation's reporting requirements do not cover the 8(a)
Program since that program has a more extensive annual report: The 408
Report to Congress on SBA's 8(a) Business Development Program, https://
www.sba.gov/document/report-408-report-us-congress-minority-small-
business-capital-ownership-development.
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The programs' requirements and authorities differ but firms
must be certified by the Small Business Administration (SBA) to
be eligible for contracts set aside for small business
competitions and sole source awards by federal agencies.
The Oversight and Transparency for Small Business
Certifications Act will require SBA's budget justification
documents to include information on SBA's certifications: the
processes, infrastructure and timelines, as well as
participants, backlogs and wait times for each program.
The bill will help ensure the Committee has this
information consistently and address recent, bipartisan
concerns about whether the SBA is providing the Committee with
a full and complete picture on certifications.
For example, in past years, each program had its own online
certification platform and designated staff in SBA's Office of
Government Contracting and Business Development. As a result,
small businesses faced different experiences when seeking a
certification. In 2023 service-disabled veterans seeking an SBA
certification were served by 20 dedicated SBA staff and 54
contractors, who processed applications in about three weeks.
Applicants to the WOSB program were served by 8 SBA staff and 2
contractors, resulting in a backlog of roughly 7,000 applicants
and an average wait time of almost a year.\2\
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\2\Email from U.S. SMALL BUS. ADMIN. to the H. COMM. ON SMALL BUS.
(10.9.24) (on file with the H. COMM. ON SMALL BUS.).
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Since 2015, the SBA has attempted to develop a platform
that would bring each of the programs' certifications into one
place, with the intent of streamlining the certification
process for all small businesses, including and especially
applicants seeking more than one certification. In November
2022, after multiple failed attempts by the SBA to produce a
unified platform,\3\ the SBA began developing the Unified
Certification Platform (UCP) in 2023, and the UCP began
accepting initial certification applications in late October
2024.
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\3\U.S. Small Bus. Admin. Off. of Inspector Gen., Evaluation of
Certify.SBA.Gov (Jul. 30, 2020).
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During this time, members of the Committee raised concerns
about the timing of changes, the portal itself and the
sufficiency of SBA's responses to Congressional inquiries.
In a House Small Business Committee held a hearing on
September 18, 2024 entitled: ``Holding the SBA Accountable:
Testimony from Small Business Administrator Guzman,'' both the
Chairman and Ranking Member raised the UCP and expressed
frustration with SBA's communication to the Committee with the
Administrator directly. These concerns were later verified by a
GAO report that found SBA did not follow proper processes to
develop the UCP.\4\
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\4\Gov't Accountability Off., It Modernization: SBA Urgently Needs
to Address Risks on Newly Deployed System (Nov. 6, 2024).
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Additionally, early awareness of growing wait times is
particularly crucial for WOSB program applicants, who saw the
most severe certification backlog prior to the UCP, and who
remain an underrepresented source of talent, innovation, and
solutions in the federal marketplace. In the lead up to UCP
deployments, the Committee frequently heard from women-owned
firms about the backlog of WOSB applications, yet SBA was not
forthcoming with that information.
Data show that women are starting and growing small
businesses in diverse sectors, but that we must do more to
encourage them to sign up to work with the federal government,
including by ensuring the efficiency of SBA's certification
process. Annual information on the backlog would have allowed
Congress to conduct proper oversight and identify issues with
the certification processes and SBA portal(s) in a more timely
manner.
SBA's annual budget justification documents have previously
included limited data on the small business contracting
programs' certifications. While they have not included the
associated wait times and backlog numbers, they have included
data on each of the programs and participants. However, for
both Fiscal Year (FY) 2026 and FY 2027, the budget documents
did not include any details on the programs.\5\
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\5\U.S. Small Bus. Admin., Fiscal Year 2026 Congressional Budget
Justification & Fiscal Year 2026 Annual Performance Plan (May 30,
2025).
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Current and aspiring government contractors already face
enough challenges in the federal market. Unnecessary time or
added hurdles just to get a certification, before they can even
compete for contracting opportunities, should not be one of
them. The Oversight and Transparency for Small Business
Certifications Act will provide consistent, current and
relevant information to ensure the SBA programs are effective
and performing as intended.
Nydia M. Velazquez,
Ranking Member.
[all]