Congressmen Marc Veasey (TX-33) and Kevin Hern (OK-01) Introduce the Capturing All Small Businesses Act of 2019

Nov 15, 2019
Press Release
Legislation Will Amend Existing Size Standards To Protect Small Businesses

WASHINGTON, D.C. – Today, Congressmen Marc Veasey (TX-33) and Kevin Hern (OK-01) of the House Committee on Small Business introduced bipartisan legislation that will mitigate the effects of sudden growth, protecting small businesses from being prematurely forced out of the small business category. Moreover, this legislation would grant small businesses additional time to transition before competing in the open market.  

The Small Business Administration (SBA)’s programs and policies are designed to support small businesses that fall below certain size standards. Once those thresholds are exceeded, businesses face many challenges including no longer being eligible to qualify for SBA loans, contracts and other assistance; and  having to compete in the open market against much larger businesses. Sudden growth in the form of receiving one or two sizeable contracts results in spikes in employee count, which in turn may place a small business prematurely out of their size standard and limits their time to grow.

The Capturing All Small Business Act of 2019 provides a sensible solution to this problem. It does so by lengthening the calculation period used to determine average employee count, one of the size standards SBA uses to determine if a business is small. Specifically, this bill extends the calculation period for the employee-based size standard from the preceding 12 months to 24 months.

“We must ensure that our nation’s small businesses can succeed in our economy,” said Rep. Veasey. “This legislation  provides small businesses the necessary time to mature and become better equipped for success in the open marketplace. By extending SBA’s calculation period for the employee-based size standards, we promote the sound and stable growth of small businesses, support job creation, and strengthen our industrial base.”

“Our communities rely on small businesses,” said Rep. Hern. “We should be doing everything in our power to help small businesses succeed and grow. I know firsthand how challenging it can be to grow a business when up against federal regulations meant for much larger businesses. This bill helps small businesses from being prematurely sized out of SBA programs and benefits, allowing them to access SBA loans and other important help that can be essential to the stability and growth of a small business.”

Finally, the change in this bill also provides parity between small businesses subject to the employee-based size standard and those subject to the receipts-based size standard. Last year, the calculation for the latter was modified through the Small Business Runway Extension Act. However, an equivalent change was not made to the employee-based size standard.