Congressman Kurt Schrader today announced that H.R. 4121, the Early Stage Small Business Contracting Act of 2012, passed through the House Committee on Small Business with strong bipartisan support. H.R. 4121, a bill Schrader authored, would establish a program to provide improved access to Federal contract opportunities for underdeveloped small businesses.

"As a former small business owner I know the most critical phase for any company's long-term success is their earliest stage of development," Schrader said. "Right now many startups and smaller businesses, in Oregon especially, are struggling to secure the funding they need to reach their full potential. This bill would increase their access to Federal contracts and help them mature into larger companies with more job opportunities for our local communities."

Given their size and youth, smaller businesses have the ability to expand and create jobs more rapidly than longstanding companies. However, they face difficulty securing government contracts due to lack of experience working with the government and complexities in the procurement process, while larger competitors enjoy in-house procurement and government marketing personnel.

If enacted, H.R. 4121 would help smaller businesses, with fifteen employees or less and under $1,000,000 in average annual receipts, gain a foothold in the Federal marketplace. All contract opportunities offered by the established program would be awarded through either a sole source contract to an eligible business or on the basis of competition restricted to eligible businesses.