WHY YOU SHOULD ADVOCATE
The HUBZone Council advocates for policies that bring opportunities to HUBZones and contracting opportunities for HUBZone companies. On Capitol Hill and Federal agencies, the Council’s policy team is active in promoting our agenda. However, any successful advocacy effort also includes direct communications between constituents and their elected officials. That is where you come in. As HUBZone certified companies, you are affected by government policy every day. Engagement with lawmakers in your home districts can make all the difference when advocating for meaningful policy changes to the program and acquisition policies that impact federal buying.
WHAT TO TALK ABOUT
Reasons to Move SBA Authorization Effort Forward in the Senate
The Council’s advocacy team has been working closely with the Senate Committee on Small Business and Entrepreneurship to make necessary changes to programs benefitting small business owners through the Small Business Administration (SBA). The Committee was scheduled to vote on the Chairman’s draft bill combining many important changes on July 24. Unfortunately, the Committee postponed action after failing to agree on proposed regulatory changes contained in the draft legislation. The Chairman’s draft contains nine critical changes that, if passed, will be game-changers for HUBZone companies.
Now is the time to contact your Senator and ask them to express support for moving forward the SBA Reauthorization legislation, including the below changes supported by the HUBZone Council.
Tell your Senator to open doors for HUBZone businesses by urging them to express support to the Senate Committee on Small Business and Entrepreneurship that the Committee move forward with SBA Reauthorization legislation.
Comment on SBA Runway Proposed Rule
On Monday, June 24, the Small Business Administration (SBA) issued a long-awaited proposed rule, implementing the Small Business Runway Extension Act, which was signed into law in December 2018. SBA has failed to implement the law; choosing to instead invoke its rule making process.
The proposed rule lengthens the time by which the SBA measures business size through revenue from the average of the past three years to the average of the past five years. This modification is designed to reduce the impact of rapid- growth years, which may prematurely eject a small business out of their size standard.
The rationale behind this proposed change can be stated simply: competitiveness takes time to build. Revenue is not an indicator of present competitiveness; it is an indicator of future competitiveness. Larger small businesses that are about to graduate from the set-aside world need time to recruit talented employees, develop their intellectual property and build infrastructure to compete at the next level. Having a good year (or even a couple of good years) does not mean that the company will continue to grow. Moving from the current three-year look-back, to a five-year look back, would give firms more time to adjust to the full-and-open marketplace.
SBA specifically seeks feedback on whether SBA should calculate annual average receipts over five years for all industries subject to receipts-based size standards or on whether it should use a five-year annual receipts average for businesses in services industries only and continue using a three-year annual average for other businesses.
The deadline to submit comments to SBA is August 23. You may submit comments here by clicking the “Comment Now!” button in the upper right hand corner.