USHBC Coalition: Procurement Credits in Online Marketplaces

to: House Committee on Small Business:
Chairman Roger Williams (TX-25); Ranking Member Nydia Velazquez (NY-7); Chairwoman Nanette Barragan (CA-44); Deputy Chair Adriano Espailla (NY-13); Vice Chair Norma Torres (CA-35); Vice Chair Gabe Vasquez (NM-2)

cc: Senate Committee on Small Business:
Chairwoman Jeanne Shaheen (NH); Ranking Member Joni Ernst (IA); Vice Chair Tony Cardenas (CA-29); Vice Chair Teresa Leger Fernandez (NM-3); Vice Chair Darren Soto (FL-9)

Dear Congressional Leaders,

The United States Hispanic Business Council (USHBC) empowers America’s small business community by advocating for people and policies that support their advancement. We know that fostering economic growth and development in America’s small business community will inherently benefit our Hispanic-owned businesses and entrepreneurs.

The federal government is the largest buyer in the world, and we believe that updating government contracting programs presents an opportunity for the very growth we seek for our businesses.

Typically, a business must first be registered on the General Services Administration (GSA) schedule in order to sell to the government. Unfortunately, this extremely arduous process costs thousands of dollars and requires months of lead time. Furthermore, the current statute does not credit buyers for any online spending that happens outside of the Commercial Platforms Program (CPP). This is one of many reasons that the number of small businesses in the Federal marketplace has declined by forty percent over the last ten years.

In fact, today, Hispanic-owned businesses account for less than 5% of registered federal contractors, and earn less than 2% of contracting dollars. At the same time, it’s never been easier for small businesses to reach new customers, particularly because of online platforms. This is relevant to the Hispanic community because 39% of Hispanic businesses make most (or all) of their revenue through online sales.

With this in mind, and given the clear benefit to American small businesses, I am writing to ask for your support in amending the Small Business Act to allow for government agencies and/or their prime contractors to receive credit for buying from Veteran, Minority, or Women-owned businesses when making online purchases outside of the federal government’s CPP.

As key congressional leaders, I know that you are staunch supporters of our business builders, job creators and tax-payers. You know that the small business community creates over two-thirds of all new jobs and is the beating heart of our American economy. I hope that we can count on your steadfast and resolute support in modernizing the Small Business Act.

Sincerely,