U.S. Rep. Nick J. Rahall, D-WV, today joined a majority in the House of Representatives in passing legislation to modernize the Small Business Administration's (SBA) federal contracting programs - an effort that will open up new opportunities for veteran-, women-, and minority-owned small businesses.

"What is good for small business is good for West Virginia," said Rahall. "This bill makes critical changes to SBA's contracting initiatives by reducing the waste and fraud that has plagued these programs -- ultimately leading to a more competitive procurement marketplace and a better value for American taxpayers. These welcome improvements will go a long way toward benefiting the hard-working entrepreneurs who form the backbone of our local economies."

While small firms make up more than 99 percent of all employers nationwide, they continue to face numerous challenges in accessing the $410 billion federal marketplace. The Small Business Contracting Program Improvements Act (H.R. 3867) brings SBA's contracting programs into the 21st century by raising the profile of veteran entrepreneurs, expanding opportunities for women and minority entrepreneurs, and rooting out fraud and taxpayer waste in these initiatives.

Specifically, the legislation expands opportunities for veteran-owned small businesses -- including for veterans who are service-disabled -- to compete for federal contracts by placing them at the top of the list for receiving federal contracts, a move that will eliminate the barriers veterans face in receiving non-competitive contracts. Service-disabled veteran-owned businesses currently receive less than one percent of federal contracts, despite the government-wide 3 percent goal established in 1999. H.R. 3867 would provide veterans with access to procurement assistance and create penalties for misrepresentation of a service-disabled veteran-owned business classification.

"The men and women bravely serving our nation overseas in Iraq and Afghanistan deserve nothing less than our full support upon their return to American soil, including those who want to explore the world of entrepreneurship" Rahall said. "It is my hope that this legislation will help to provide those servicemen and women with the tools they need to become successful and competitive business owners."

H.R. 3867 also aims to combat fraud and taxpayer waste by implementing safeguards and business integrity standards to ensure that criminals are not squandering taxpayer dollars. The legislation also promotes self-policing in the industry by giving small businesses the power to challenge a contract award.

Other significant provisions in the legislation would:

* Standardize SBA's contracting programs by increasing the size of federal contracts -- a step that would give small businesses access to higher dollar contracts.
* Expand opportunities for women entrepreneurs by requiring the SBA to implement the Women's Procurement Program, an initiative that was signed into law seven years ago.
* Modernize the SBA's 8(a) program, which expands opportunities for minority business owners.
* Strengthen community development through the HUBZone program, which promotes businesses in historically underutilized urban and rural areas with lower-than-average incomes.

The Small Business Contracting Program Improvements Act has received bipartisan support from a wide range of organizations, including the National Federation of Independent Business, the Associated General Contractors of America, the American Legion, the Veterans of Foreign Wars, AMVETS, the U.S. Women's Chamber of Commerce, the National Defense Industrial Association, Aerospace Industries Association, and the International Franchise Association.