Chairman Graves Questions Proposals for a Medium-Sized Business Program

Statement

House Small Business Committee Chairman Sam Graves (R-MO) today held a hearing to examine proposals for a medium-sized business program. The Small Business Act, along with the Small Business Administration (SBA), has set forth definitions and size standards to determine exactly what constitutes a small business. These determinations help establish what companies have access to government contracting programs. However, tensions arise when firms no longer qualify as small according to SBA size standards, but still meet the Small Business Act definition.

"While it is important to analyze the medium-sized business program proposals, we do so with two requirements at the forefront: One, any medium-sized pilot must benefit taxpayers and the government and two, small businesses must be protected.

"Because the administration has not met current small business goals, how do we ensure that a new program for larger businesses will not make it harder for small businesses to compete? As we move forward in these discussions, this must be taken into consideration. Small businesses are the key to repairing our economy, anything that could hinder this growth will not pass the test.

"At today's hearing, it was extremely helpful to hear from Congressman Rogers and Congressman Connolly on their proposals, as well as the witnesses on both sides of this issue."

Specifically, the Committee reviewed Rep. Mike Rogers' (R-AL) proposed amendment to the National Defense Authorization Act (H.R. 1540), which would create a medium small business pilot program at the Department of Defense, and the Small Business Growth Act (H.R. 1812) sponsored by Rep. Jerry Connolly (D-VA). Both members were present to discuss their legislation during the hearing.

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