U.S. House Passes Veasey Bill: The Capturing of All Small Businesses Act (H.R. 5130)
WASHINGTON, D.C. – Today, Congressman Marc Veasey (TX-33) applauded the passage of the Capturing All Small Businesses Act—bipartisan legislation that will protect our nation’s small businesses against being prematurely forced out of the “small” business category due to sudden growth. This legislation was introduced by Congressmen Veasey (TX-33) and Kevin Hern (OK-01) of the House Committee on Small Business last November.
“In my home state of Texas, small businesses make up 99.8 percent of all businesses and employ 4.7 million Texans. When I am back home, I get to see the unique impact that these businesses have on our local economy through my Marc Means Business (MMB) initiative where I visit and volunteer at businesses of all sizes across the district,” said Congressman Marc Veasey. “This legislation will provide small businesses like the ones I have visited with the much-needed relief and protections they deserve.”
This legislation lengthens from 12 to 24 months the time period used by the Small Business Administration (SBA) to determine the average number of employees a business has. Alongside revenues, the calculation of the average number of employees is one of the size-standards used by SBA to determine if a business is “small.” By extending SBA’s calculation period for employee-based size standards, Congress recognizes that the current 12-month timeframe can have detrimental effects on small businesses that experience temporary spikes in their employment size.
These additional 12 months recognize that many factors, including large contracts or seasonal employment, can cause a small business to take on extra employees temporarily, while in fact they are still a small business for the majority of the year.
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