Encouraging Success Act

Floor Speech

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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.

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.
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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.

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