Small Business Runway Extension Act of 2018

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 6330) to amend the Small Business Act to modify the method for prescribing size standards for business concerns.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous materials on the bill under consideration.

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

Mr. Speaker, I thank Mr. Knight and Ms. Clarke for this leading bipartisan legislation, which takes a critical step toward addressing the challenge that small contractors face when entering the middle market.

The primary objective of the SBA's small business programs is to encourage the growth and vibrancy of the Federal supplier base, boost competition, protect against supplier consolidation, and spur innovation. These noble goals are thwarted when small businesses find themselves competing in the open market prematurely before they have the tools they need to succeed.

Given the increasing size of Federal contract awards made today, one or two big awards won by a small contractor could easily force them out of the category of small business. Since many do not have the infrastructure or competitiveness to go head to head against firms many times their size, they often fail or become consumed into a larger competitor's supply chain. These results contravene the mission and purpose of the small business programs, further widening the divide between large and small contractors.

Competitiveness takes time, hard work, and significant resources to build. However, difficult as it is to build competitiveness, it is just as easily lost. H.R. 6330 provides a solution to this problem, allowing small businesses extra time to potentially retain their ``small'' size status while they continue to develop their competitive edge.

Mr. Speaker, I urge my colleagues to support H.R. 6330, and I reserve the balance of my time.

Mr. Speaker, I yield such time as he may consume to the gentleman from California (Mr. Knight) and thank him for his leadership in this important measure.

Mr. Speaker, I yield myself such time as I may consume to close.

Mr. Speaker, this legislation gives small businesses more time to adjust to not being a small business anymore. We want our small businesses to thrive and grow and break through to the mid-tier and big business strata. Oftentimes, that is difficult.

H.R. 6330 gives these firms just a little more time to adapt to their new business environment, so they can compete more efficiently and continue to grow and create more jobs for more Americans.

I again thank Mr. Knight for his leadership on this.

Mr. Speaker, I urge my colleagues to support this bipartisan piece of legislation, and I yield back the balance of my time.

Mr. Speaker, I thank my chairman for his support on this and many other issues that we see in our Small Business Committee.

Mr. Speaker, I urge my colleagues to support H.R. 6330, the Small Business Runway Extension Act of 2018.

This bill is simple. It is commonsense. It is a measure designed to promote the sustainability, growth, and development of small Federal contractors into the open marketplace.

Under existing law, the Small Business Administration calculates the size of a company by taking the average of the past 3 years of gross receipts. A company's average must be within established industry parameters set by the SBA in order to be considered a small business and be eligible to receive access to SBA's small business programs, resources, and assistance.

My bill is very simple. It extends that time period out to 5 years. This additional time allows all small businesses an opportunity to mature before graduating out of the SBA's small business programs.

Over the course of this Congress, we have conducted hearings, held roundtables, and heard stories of the overwhelming mid-market challenges forcing many successful small contractors to close their doors or stall their growth. Prospects for a newly graduated firm successfully integrating into the open marketplace are rapidly declining due to the widening gap between small and large contractors.

Small firms are opting out--either voluntarily or, in many cases, involuntarily--from joining the Federal marketplace because of this rift. This outcome depletes our industrial base, reduces competition, and inhibits economic growth.

Mr. Speaker, do we really want our small businesses to look at their ability to expand and their ability to be a larger and more prosperous business and say: I can't do this because I am going to move out of the SBA, so what I should do is maybe close my doors or just restrict our growth.

That is not what America is all about. That is not what we want out of our small businesses. We want them to expand. We want them to bring new and innovative things to the marketplace. And we want them to expand and have jobs for our kids and for the next generation.

Mr. Speaker, I think that this is a reasonable look at what we are trying to do, and I urge support of H.R. 6330.

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

Mr. Speaker, I rise in support of H.R. 6330, the Small Business Runway Extension Act of 2018.

Over the years, Congress has created numerous Federal programs, set- asides, tax preferences, and SBA loan programs to help small businesses succeed. However, the advantages conferred by this program have led to heated debate over who is truly a small business and what an acceptable small business size standard is.

The answer is an important one, as it can be underinclusive, thereby pushing a firm outside the standard, or it can be overinclusive, allowing large firms to compete in these programs. The end result is the same: small firms deprived of Federal contracting opportunities.

This bill addresses the pressure placed on those businesses not able to compete against large entities from being prematurely placed outside their size standard by providing a more inclusive review of 5 years of their gross receipts.

Mr. Speaker, I urge Members to support this very important legislation, and I reserve the balance of my time.

Mr. Speaker, I yield back the balance of my time.

Mr. President, I ask unanimous consent that the Committee on Small Business and Entrepreneurship be discharged and the Senate proceed to the immediate consideration of H.R. 6330.

Mr. President, I ask unanimous consent that the bill be considered read a third time.

Mr. President, I know of no further debate on the bill.