Small Business Sustainability Briefing A New Perspective on SBA's Small Business Size Standards: “Learn what's in the pipeline for updating and expanding these criteria” An Overview of H.R. 1812, The Small Business Growth Act Tonya M. Speed February 5, 2012

Small Business Sustainability Briefing Mid-Tier Advocacy (MTA)  The MTA represents a community of small and mid-size firms that provide employment for thousands of people across the United States and across multiple industries.  MTA is an organization of the country’s top veteran-owned, service disabled, HUBZone certified, minority-owned and woman-owned businesses.  They are committed to being engaged in the policies affecting the sustainability and survivability of emerging small and mid-tier business who contract with the Federal Government.

Small Business Sustainability Briefing Growing Beyond Size Standards  Thousands of small businesses, who have graduated or matured, have disappeared from the landscape of the federal marketplace over the last three decades.  The policies that drive the management of size-standard criteria that help the entry-level and developing firm eventually stifle many of them after achieving some modest success.  The Disappearing Mid-Size Business – What Congress Can Do to Protect its Investment  HR 1812 Will Create Jobs and Strengthen the Industrial Base

Small Business Sustainability Briefing SBA Size Standards Fall Short… The Small Business Growth Act Provides a Transition Period for Emerging Small Business  Some say that graduation from small business NAICS codes is like “falling off a cliff” - far too many mid-tier firms either sell, or fold. The Bill Encourages Small and Mid-Tier Businesses to Build Relationships through Mentor-Protégé Opportunities  Size standards should encourage growth by securing balanced competition at all levels (start-up, developing and matured phase) to ensure that large companies do not eliminate emerging small businesses from the federal government market.

Small Business Sustainability Briefing GRAPHICAL VIEW OF SMALL BUSINESSES COMPETITION AGAINST LARGE BUSINESSES DAVID vs. GOLIATH LARGE SYSTEM INTEGRATORS SMALL/MID-SIZE FIRMS LARGE SYSTEM INTEGRATORS SMALL/MID-SIZE FIRMS Company Name Annual Revenue in BILLIONS NAICS Ceiling on Revenue in MILLIONS Number of EMPLOYEES NAICS Ceiling on EMPLOYEES Northrop Grumman $33.8 $7 – 33.5M 120, Lockheed Martin $ ,000 General Dynamics $ ,200 EDS (not part of HP) $ ,000 CSC $ ,000 Average $ ,040

Small Business Sustainability Briefing The Small Business Growth Act Status of H.R  Congressman Gerry Connolly (D-VA) introduced - H.R “The Small Business Growth Act”, May 2011  House Small Business Committee held a hearing, Sept. 14, 2011  Staff Discussions have yielded a bi- partisan approach to the original pilot program legislation  Sponsor is working on pushing for inclusion in Defense Act The Pilot Program  This bill establishes a five-year General Services Administration small business growth pilot program for federal contractors. MTA encourages Congress to support this and similar legislation by Rep. Mike Rogers (R-AL) who proposed an amendment to the Defense Authorization bill supporting the growth of emerging small businesses.  This pilot program supports small business sustainability and viability in the federal marketplace by utilizing the number of employees, not revenue.

Small Business Sustainability Briefing JOIN MTA IN SUPPORT OF THESE EFFORTS! Call or write your Representatives! U.S. Capitol Operator (202)

Small Business Sustainability Briefing Q&A

Small Business Sustainability Briefing Tonya M. Speed (202)