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The U.S. House of Representatives today passed a diverse array of amendments authored by Small Business Committee Democrats and aimed at advancing Democratic small business priorities. In all, the measures passed today will expand access to capital, improve vital small business assistance programs and increase opportunities for women, minority and veteran entrepreneurs.  The amendments today were included in the National Defense Authorization Act.   

“Whether in our big cities, rural communities or in the U.S. territories, entrepreneurs across America deserve our support to achieve the dream of starting a small business,” said Ranking Member Rep. Nydia M. Velázquez (D-NY). “Today, Committee Democrats voted to dedicate important federal resources towards helping small firms in diverse communities develop, win federal contracts and create jobs along the way.” 

Today, the House passed Ranking Member Velázquez’s amendment to expand opportunities for employees to own a stake in the company they work for by transitioning to an Employee Stock Ownership Plan (ESOP) or a cooperative (co-op). ESOPs and co-ops have a proven track record of success, with companies that transition to the employee-ownership model seeing an increase in productivity by 4 to 5 percent. 

Velázquez’s amendment would improve access to capital and technical assistance to transition small businesses to employee ownership, helping to save jobs and financially empower employees.  Among other changes, the amendment would make it easier for small firms to utilize the Small Business Administration’s 7(a) program to finance their transition to employee-owned models.   

Velázquez’s amendment was further prompted by the success of local employee-owned co-operatives in her home district of New York City. A companion bill has been introduced in the Senate by Senator Kirsten Gillibrand (D-NY).  

“I am pleased to join forces with Senator Gillibrand to expand opportunities in a growing and exciting sector of the small business economy—employee owned businesses,” said Velázquez. “In New York City, a surge in employee-owned co-operatives has prompted residents to shop locally and engage with their communities. I am pleased that this bill has passed in the House, and I encourage the Senate to take swift action to move it forward.” 

“I am pleased that under Congresswoman Velazquez’s leadership, this legislation has passed in the House of Representatives and has now been included in the House version of the NDAA, which means we are one step closer to getting this bill signed into law. Too many hardworking New Yorkers are still struggling to get jobs that pay them enough to take care of their families and save for retirement, and this legislation would help companies reward work without sacrificing profit,” said Senator Gillibrand (D-NY). “Employee-owned businesses have a strong track record of better pay and retirement benefits for workers and a commitment to creating local jobs. I have been proud to work with Congresswoman Velazquez on companion legislation in the Senate and will continue to fight as hard as I can to for the investments needed to support employee ownership in New York and around the country.”

Today’s bill also included provisions aimed at helping hurricane battered parts of the U.S. recover economically.  By creating incentives for federal agencies to contract with businesses located in Puerto Rico and the U.S. Virgin Islands, the bill would stimulate economic activity on the islands.   

Velázquez’s amendment would allow federal agencies to count contracts awarded to Puerto Rican small firms double when working to reach their small business contracting goals. 

“With Puerto Rico still facing economic woes and a long path to recovery, this legislation would direct sorely needed federal dollars to employ local small firms, creating badly needed jobs along the way,” said Velázquez. “We owe it to our fellow American citizens on the Island to take every possible step towards rebuilding a more resilient Puerto Rico, and this bill is a much-needed step in the right direction.” 

Additionally, Rep. Yvette Clarke joined with Ranking Member Velázquez and Rep. Stacey E. Plaskett (USVI) in authoring a similar bill to incentive federal agencies to award contracts to small businesses in the U.S. Virgin Islands. Their measure would also double the value of federal small business contract awards, incentivizing federal agencies to employ more small businesses on the Island.  

“Seven months ago, Hurricane Maria ravaged the Caribbean,” said Clarke. “This deadly hurricane killed two people in the U.S. Virgin Islands and damaged or destroyed 90 percent of its buildings. We owe it to the people of the U.S. Virgin Islands, who are themselves taxpaying American citizens, to do everything we can do help them in their recovery efforts. Amendment 416, which I introduced together with Representatives Velázquez and Plaskett, marks one small step in that direction.”

“It cannot be forgotten that the people of the U.S. Virgin Islands are American citizens and deserve our utmost support,” said Velázquez. “This bill would incentivize federal agencies to employ contractors in the U.S. Virgin Islands, fueling local economic growth and job creation on the Islands when it is most needed.  I commend my colleagues, Congresswomen Clarke and Plaskett for their steadfast dedication to passing this measure and never giving up on the people of the U.S. Virgin Islands.” 

SCORE is a program supported by SBA which includes thousands of volunteer business counselors throughout the United States and the territories. Throughout the years, SCORE has expanded to become one of the federal government’s largest volunteer business advisor and mentoring programs, with over 11,000 business professionals at over 320 chapters nationwide. Today, the House passed an amendment offered by Rep. Alma Adams (D-NC) which instructs SBA to expand and improve SCORE resources for economically disadvantaged communities, rural areas and other traditionally underserved areas. 

“Thanks to innovative ideas, such as the SCORE program, North Carolina leads the nation as the best state to start a business,” said Congresswoman Adams. “Today, the House took a crucial step to ensuring that the SCORE program continues its critical mission of guiding new business owners through the creation and expansion of their small businesses by passing my amendment to the National Defense Authorization Act. My amendment provides certainty and security to small businesses who rely on SCORE mentorship. Small businesses continue to be the cornerstone of our economy and their success motivates me to continue fighting for entrepreneurs nationwide.”

“As a proven avenue for success, SCORE has become a lifeline for countless entrepreneurs who have big dreams but may not know where to turn first for help,” said Velázquez. “This is especially pertinent in rural and disadvantaged communities, and highlights the importance of Rep. Adams’ measure to expand and improve SCORE’s services in these areas. All entrepreneurs deserve support from the federal government and I commend Rep. Adams for her hard work in securing the passage of this amendment.” 

A measure introduced by Rep. Adriano Espaillat (D-NY) authorizes Procurement Technical Assistance Centers (PTACs) to form an association, improving how they serve small businesses.  PTACs are located throughout the United States and provide in-person counseling and technical assistance to businesses looking to sell products and services to federal, state or local governments. 

“I am pleased that my amendment was included in today’s passage of the NDAA,” said Rep. Adriano Espaillat (D-NY). “By sharing and assessing matters of common concerns, my amendment will reduce inefficiencies and promote greater integration of vital Department of Defense functions and operations.  

“PTAC’s play a central role in connecting innovative and critical products with our local, state and federal government—all while helping to develop new small businesses,” said Velázquez. “I am pleased to support Rep. Espaillat’s efforts to improve these centers and see that they work together more efficiently and I thank him for his leadership on this issue.” 

Today, the House passed an amendment authored by Rep. Dwight Evans (D-PA) that would undertake a series of systemic reforms to the Small Business Development Center (SBDC) program by improving data collection, streamlining collaboration, reducing paperwork and expanding outreach. In just one year, SBDCs have helped 13,400 entrepreneurs launch new businesses, provided training sessions for over 260,000 attendees, advised 192,000 clients, and helped clients obtain $4.6 billion in financing for their businesses. 

“As a member of the Small Business Committee, I’m pleased to see that my bill, HR 1702, the Small Business Development Centers (SBDC) Improvement Act of 2017, which passed the House Floor with bipartisan support was included as an amendment in the National Defense Authorization Act of 2018, thus enhancing the chances of this important legislation becoming law. My bill amends the Small Business Act to improve SBDCs by providing a variety of services that include grants, financial assistance, loans, and other critical services to our small businesses,” said Congressman Evans.

Congressman Evans added, “Access to capital is key for small businesses and entrepreneurs in the city of Philadelphia, Commonwealth of Pennsylvania and nationwide as we attempt to combat poverty and reduce high unemployment rate. Our SBDCs play a crucial role in helping to bridge the gap to provide small businesses with the financing they rely on to get their businesses off the ground and keep them up and running so that they may help put people back to work. SBDCs represent another tool in the toolbox to help level the playing field and remove barriers to entering the world on entrepreneurship.” 

“From New York City and Philadelphia to rural corners of the Midwest, SBDCs have had a remarkable impact on helping aspiring and current small business owners achieve their dreams,” said Velázquez. “I commend Rep. Evans for his dedication to improving the services offered by these one-stop-shops for technical assistance, especially for diverse communities who need it most.” 

Boosting Innovation and Encouraging Start-Up Commercialization 

The House also included in the NDAA an amendment offered by Rep. Al Lawson (D-FL) to help startups and small firms bring their products to commercialization. In many cases, new startups lack the resources to compete with larger and more established companies. To help put small firms on the map, Congress created the Small Business Innovative Research (SBIR) program. Rep. Lawson’s amendment would build upon the program by leveraging funds to require participating federal agencies to implement a Commercialization Assistance Pilot Program—bringing more products to the market. 

“Small businesses are a great asset to our communities and help promote economic growth,” Rep. Lawson said. “The Small Business Innovation Research Program provides small businesses and research facilities the opportunity to utilize the SBIR program that promote innovation that will move our nation forward. It is essential that we support small firms and ensure everyone has a seat at the table.”

“From lifesaving medical equipment to gadgets of the future, the SBIR program has fostered some of the most groundbreaking innovations of recent years,” said Velázquez. “I commend Rep. Lawson for taking the program one step further by dedicating additional resources to help start-ups bring their pioneering inventions to the market, fueling innovation and small business success along the way.” 

Another amendment offered by Rep. Schneider seeks to increase flexibility for the use of funding within Phase I and Phase II the SBIR and Small Business Technology Transfer (STTR) programs. These programs provide bedrock support to help start-ups and new small firms develop and commercialize their innovative products. 

“My amendment would help connect successful innovators with more resources to turn federally- funded research into viable commercial products by increasing the amount SBIR and Tech Transfer recipients can use towards commercialization,” said Schneider. “I am pleased to see this measure included in the NDAA.”

A second amendment by Rep. Schneider would expand resources for veterans who seek to start their own small businesses. By codifying SBA’s Boots to Business program, Schneider’s amendment authorizes federal resources to help veterans become entrepreneurs and create good-paying jobs.  

“My amendment would help empower transitioning servicemembers, their spouses, and veterans with the tools necessary to start their own business by codifying the Boots to Business program,” said Schneider. “This successful program has already trained more than 50,000 individuals and this amendment ensures that it will continue to help transitioning servicemembers excel as entrepreneurs.”

“All of us owe our veterans a debt of profound gratitude,” said Velázquez. “No veteran should have to come home without viable options for transitioning into civilian life, and that is why the Boots to Business program is so essential. I thank Rep. Schneider for his efforts to authorize this program and for being a longstanding champion of veterans both in Illinois and across the country.” 

All of the provisions contained in the NDAA will need to be considered in conference committee once the Senate approves its version of the legislation.  

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