January 26 2007 Copyright 2007 Business Research Services Inc. 301-229-5561 All rights reserved.

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SBA Programs To Be Debated

After last year’s Congress failed to pass legislation reauthorizing SBA programs, the House has approved a temporary extension until the end of 2007.

The new House Small Business Committee chair, Democrat Nydia Velazquez of New York, said she intends to hold hearings and “draft a bipartisan bill.”

Last year the Senate Small Business Committee approved a reauthorization bill, but the House committee did not.

Two major procurement issues could be among the sticking points in the reauthorization.

The 2006 Senate bill called for annual recertification of eligibility for small business programs, while the House Republican draft provided for recertification after five years. SBA adopted five-year recertification in a final rule published in November, but the new Senate committee chairman, John Kerry of Massachusetts, said he thought five years was too long. (SAA, 11/24/06)

Rep. Velazquez and several other Democrats on the House committee have favored giving 8(a) firms first priority for set-asides, but Sen. Kerry has said the intent of Congress was “parity” – equal priority for 8(a) and HUBZone companies.

Veterans’ organizations have asked Congress to give service-disabled veterans’ businesses top priority.

The recent report by the congressionally chartered Acquisition Advisory Panel urged giving contracting officers discretion to award set-asides based on what the agency needs to meet its socioeconomic goals. As a practical matter, that would increase opportunities for service-disabled veterans and HUBZone companies, which have been lagging other socioeconomic groups in federal contracting. (SAA 1/12)


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