Bill Passage includes small and minority business priorities such as raising the net worth limits.
October 19, 2007; 08:49 AM
Washington,
DC -- The United States Hispanic
Chamber of Commerce (USHCC), the nation's largest advocate for over 2
million Hispanic owned businesses, applauded the passage of the Small
Business Contracting Procurement Improvements Act (SBCPI) of 2007. The
bill passed by a vote of 21 to 4 in the House Small Business Committee.
“Today, the Small Business Committee passed an important measure that increases opportunities for small firms in the federal marketplace,” said Chairwoman Nydia M. Velázquez. “The support of USHCC was crucial in ensuring this legislation passed with strong provisions for our nation’s minority and underrepresented entrepreneurs. This is a pivotal step forward for the nation’s small businesses and I thank the members of USHCC for their involvement”
USHCC spearheaded
an effort by a cross-section of the minority business and civil rights
communities in urging House Committee members to pass the SBCPI Act
without the Akin Amendment. Organizations joining the USHCC included
the National Association for the Advancement of Colored People (NAACP),
National Black Chamber of Commerce (NBCC), Mexican American Legal
Defense and Education Fund (MALDEF), National Council of La Raza
(NCLR), and the Latin American Management Association (LAMA).
The SBCPI Act included many improvements to the SBA
8(a) program, the single most important vehicle for minority business
participation in federal contracting, and established to build strong
companies. Since its inception, the 8(a) program has contributed to the
development of over 20,000 firms over the past two decades, and these
firms have received almost $100 billion in federal contracts. One of
the provisions in this legislation increases “net worth limits,” which
are a key determinate in establishing a firm's acceptance into the SBA
8(a) program.
Rep. Akin had proposed to offer an amendment to strike
the increase in the “net worth limits,” but was ultimately withdrawn.
If the amendment had been added to the bill, the current practice of
limiting participation in the 8(a) program to the smallest firms would
have excluded many small businesses from much-need contract
opportunities. The average failure rate of all small businesses is
almost 70 percent during the first 8 years of business.
“We congratulate members of the House Small Business
Committee for passage of the bill, and Congresswoman Nydia Velazquez
for her leadership on the issue,” said Michael L. Barrera, USHCC CEO
and President. “Improvements in the SBCPI Act are critically important
to the minority business community, and will ensure that the federal
marketplace is more competitive and diverse, and therefore offer the
federal government and taxpayers a better value in procurement and
services contracts.”
Findings from the SBA Office of Advocacy, found that
although minorities make up 32% of the population in this country, they
constitute only 18% of all businesses. In addition, according to the
Minority Business Development Agency at the U.S. Department of
Commerce, in analyzing the same 2002 census data, noted that, although
minority firms continued to grow at a fast pace during the five-year
period of the census survey, the average gross receipts for these firms
dropped by 16%. It is clear, therefore, that small minority businesses
need additional assistance to close the economic gap.
At slightly over 4 million firms, minority businesses
represent almost 20% of all firms in the country generating nearly $700
billion in annual revenues and employ almost 5 million workers.”
“The U.S. Hispanic Chamber of Commerce thanks the
members of the House Small Business committee for the passage of this
important bill,” adds David C. Lizárraga, USHCC Board Chair. “The USHCC
strives to enhance the growth of local Hispanic chambers through the
provision of entrepreneurial resources, and continue the needed support
to make small businesses more competitive. USHCC will work to
continuously improve our ability to meet the needs of our chambers and
the Hispanic business community.”
Over 9,000 firms are currently participating in the
8(a) program. More than half of all federal minority business
contracting is accomplished through the 8(a) program. Despite these
impressive statistics revealing the importance of the minority business
community and the importance of the 8(a) program, the program has not
been revamped since 1988. As Chairwoman Velazquez has indicated
repeatedly in recent months, that is a period spanning almost two
decades.
For more information about the Small Business Contracting Procurement Improvements Act of 2007, log on to http://www.house.gov/smbiz/.
About the United States Hispanic Chamber of Commerce
Founded in 1979, the USHCC actively promotes the economic growth and
development of Hispanic entrepreneurs and represents the interests of
more than two million Hispanic-owned businesses in the United States,
which earn more than $350 billion annually. It also serves as the
umbrella organization for 200 local Hispanic chambers in the United
States, Canada, Puerto Rico and Mexico.
Source: HISPANIC PR WIRE
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