(2) The 26,800,000 small businesses in the 
United States account for more than 99.7 percent of 
all employer firms. 
(3) Small businesses employ just over half of all 
private sector employees. 
(4) The 4,100,000 small businesses owned by 
individuals who are members of economically dis-
advantaged 
groups 
generate 
approximately 
$694,000,000,000 in revenues and employ approxi-
mately 4,800,000 individuals each year. 
(5) Small businesses need help to remain com-
petitive in the global economy, particularly during 
difficult economic times. 
(6) Together, women-owned and minority- 
owned businesses receive less than 7 percent of ven-
ture capital. 
(7) Seventy percent of small businesses survive 
at least 2 years, but less than half survive 5 years. 
(8) The Small Business Administration was es-
tablished in 1953 by the Federal Government to aid, 
counsel, assist, and protect the interests of small 
business concerns, to preserve free competitive enter-
prise, and to maintain and strengthen the overall 
economy of the United States. 
VerDate Mar 15 2010 
03:58 Dec 24, 2011
Jkt 019200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H3754.IH
H3754
jbell on DSK7SPTVN1PROD with BILLS
(9) The Small Business Administration assists 
firms owned and controlled by economically dis-
advantaged individuals to enter the economic main-
stream by providing firm-specific analysis, coun-
seling, management training, professional consulting 
and monitoring services, and access to business de-
velopment opportunities under section 8(a) of the 
Small Business Act. 
(10) Although the program under section 8(a) 
is well intended, the problems of the program are 
well known. 
(11) The program under section 8(a) has a 
record of graduating companies that are not suffi-
ciently prepared to compete for contracts with large 
and established companies in the private sector, re-
sulting in a large number of former participants in 
the program failing to remain in business shortly 
after leaving the program. 
(12) The problem of graduating companies 
from the program under section 8(a) that are not 
sufficiently prepared to compete for contracts with 
large and established companies in the private sector 
is caused by the reliance of the Small Business Ad-
ministration on outdated measures of adjusted gross 
income and net worth in determining whether a 
VerDate Mar 15 2010 
03:58 Dec 24, 2011
Jkt 019200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H3754.IH
H3754
jbell on DSK7SPTVN1PROD with BILLS
company participating in the program continues to 
be economically disadvantaged. 
(13) Reliance by the Small Business Adminis-
tration on measures that do not reflect contem-
porary conditions has had, and will continue to have, 
the unintended consequence of keeping small busi-
nesses too small to succeed, which is as undesirable 
as protecting companies that are too big to fail. 
SEC. 3. IMPROVEMENT OF PROGRAM UNDER SECTION 8(a) 
OF THE SMALL BUSINESS ACT. 
(a) PERIOD OF ELIGIBILITY.— 
(1) EXTENSION.—Section 7(j)(15) of the Small 
Business Act (15 U.S.C. 636(j)(15)) is amended— 
(A) in the matter preceding subparagraph 
(A) by striking ‘‘nine years’’ and inserting ‘‘11 
years’’; and 
(B) in subparagraph (B) by striking ‘‘five 
years’’ and inserting ‘‘7 years’’. 
(2) COMPLETED
PERIODS.—A small business 
concern that completed a 9-year period of participa-
tion in the program under section 8(a) of the Small 
Business Act (15 U.S.C. 637(a)) prior to the date 
of enactment of this Act and that is otherwise eligi-
ble to participate in such program except for having 
completed such 9-year period, including that such 
VerDate Mar 15 2010 
03:58 Dec 24, 2011
Jkt 019200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H3754.IH
H3754
jbell on DSK7SPTVN1PROD with BILLS
concern satisfies net worth requirements applicable 
to continued eligibility after initial program admis-
sion, may participate in such program during the 2- 
year period beginning on the date of enactment of 
this Act. 
(b) NET WORTH AND INCOME LIMITATIONS.— 
(1) INCREASE.—Section 8(a)(6)(A) of the 
Small Business Act (15 U.S.C. 637(a)(6)(A)) is 
amended by inserting after ‘‘disadvantaged indi-
vidual.’’ the following: ‘‘For purposes of eligibility 
for admission as a Program Participant the net 
worth of such individual may be any amount not ex-
ceeding $750,000 and for purposes of continued eli-
gibility after admission the net worth of such indi-
vidual 
may 
be 
any 
amount 
not 
exceeding 
$2,250,000. For purposes of eligibility for admission 
as a Program Participant and continued eligibility 
after admission, the modified adjusted gross income 
(as such term is defined in section 25A(d)(3) of the 
Internal Revenue Code of 1986) of such individual 
for an applicable taxable year may be any amount 
not exceeding $500,000.’’. 
(2) COMPLETED PERIODS OF PARTICIPATION.— 
If the Administrator of the Small Business Adminis-
tration graduated a small business concern from the 
VerDate Mar 15 2010 
03:58 Dec 24, 2011
Jkt 019200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H3754.IH
H3754
jbell on DSK7SPTVN1PROD with BILLS
program under section 8(a) of the Small Business 
Act (15 U.S.C. 637(a)) prior to the date of enact-
ment of this Act as a result of a determination that 
such concern did not meet standards relating to eco-
nomic disadvantage and such concern meets require-
ments under such section as amended by this Act, 
such concern may participate in such program for a 
period— 
(A) of 11 years less the period of time 
such concern previously participated in such 
program; and 
(B) beginning on the date of enactment of 
this Act. 
Æ 
VerDate Mar 15 2010 
03:58 Dec 24, 2011
Jkt 019200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6301
E:\BILLS\H3754.IH
H3754
jbell on DSK7SPTVN1PROD with BILLS