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Disadvantaged Business Disaster Eligibility Act

Floor Speech

Date: March 26, 2007
Location: Washington, DC
Issues: Business and Consumers


DISADVANTAGED BUSINESS DISASTER ELIGIBILITY ACT -- (House of Representatives - March 26, 2007)

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Ms. VELÁZQUEZ. Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, Hurricane Katrina forced evacuation of individuals and business owners who are only recently recovering and rebuilding. Clearly, through no fault of their own, these firms have been disrupted.

A number of these businesses are participants in the SBA's 8(a) program, the primary way that minority entrepreneurs enter the Federal marketplace. 8(a) is a business development initiative, and that is what the companies in the gulf region need right now.

Because of the magnitude of the disaster, these companies need additional time in the 8(a) program. This will counterbalance the period of inoperability these firms experienced due to Hurricane Katrina. And I commend my colleague Mr. Jefferson from Louisiana for offering this solution.

As currently structured, the program allows businesses to participate for a limited length of time. They are given 9 years and 9 years only. Even if the companies fail, they can never reapply and get back in.

In this way 8(a) is different than any other SBA procurement initiative, which allow companies to be certified for increments of 3 years. As long as they meet the eligibility criteria, they can continue being recertified without end.

It is because of this limitation that the 8(a) program is simply not structured to respond to companies that have been victimized by disasters.

This bill is targeted and narrow. It applies only to 8(a) program participants in Alabama, Mississippi, or Louisiana that were impacted by this disaster. At most, this represents barely 4 percent of all 8(a) participants. Eighteen months is not a significant amount of time, but it could play a major role in ensuring that these businesses are able to participate in the rebuilding of their home States.

I urge support of this bill.

Mr. Speaker, I reserve the balance of my time.

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