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H. Rept. 119–680: Oversight of Small Business Certifications

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Crpt 119Hrpt680
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Crpt 119Hrpt680

Summary

House Report 119–680 of the 119th Congress, 2d Session, submitted June 3, 2026 by Mr. Williams of Texas from the Committee on Small Business to accompany H.R. 8879, the Oversight and Transparency for Small Business Certifications Act of 2026. The committee reports the bill favorably without amendment and states that it ordered the bill reported on May 20, 2026 by a roll call vote of 23 ayes to 0 nos. The bill would amend the Small Business Act to require the SBA to report annually to Congress on certification activities in covered contracting programs, with program-specific data for the WOSB, HUBZone and SDVOSB programs, including denied applications and processing times. The report includes a section-by-section analysis, House rule statements, changes in existing law, and minority views signed by Ranking Member Nydia M. Velázquez.

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                                                                                119TH CONGRESS                                                                                               REPORT
                                                                                               " HOUSE OF REPRESENTATIVES                                                            !
                                                                                   2d Session                                                                                                119–680




                                                                                 OVERSIGHT AND TRANSPARENCY FOR SMALL BUSINESS
                                                                                            CERTIFICATIONS ACT OF 2026



                                                                                     JUNE 3, 2026.—Committed to the Committee of the Whole House on the State of
                                                                                                       the Union and ordered to be printed




                                                                                      Mr. WILLIAMS of Texas, from the Committee on Small Business,
                                                                                                        submitted the following


                                                                                                                                   R E P O R T
                                                                                                                                       together with

                                                                                                                                 MINORITY VIEWS

                                                                                                                               [To accompany H.R. 8879]

                                                                                  The Committee on Small Business, to whom was referred the bill
                                                                                (H.R. 8879) to amend the Small Business Act to require a report
                                                                                on small business concern participation in a covered contracting
                                                                                programs, and for other purposes, having considered the same, re-
                                                                                ports favorably thereon without amendment and recommends that
                                                                                the bill do pass.
                                                                                                                                          CONTENTS
                                                                                                                                                                                                               Page
                                                                                         I. Purpose and Bill Summary ........................................................................                    2
                                                                                        II. Need for Legislation ....................................................................................            2
                                                                                      III. Hearings .......................................................................................................      2
                                                                                       IV. Committee Consideration ...........................................................................                   2
                                                                                        V. Committee Votes .........................................................................................             2
                                                                                       VI. Section-by-Section of H.R. 8879 .................................................................                     4
                                                                                      VII. Congressional Budget Office Cost Estimate .............................................                               4
                                                                                     VIII. New Budget Authority, Entitlement Authority, and Tax Expenditures                                                     4
                                                                                       IX. Oversight Findings & Recommendations ..................................................                               5
                                                                                        X. Performance Goals and Objectives ............................................................                         5
                                                                                       XI. Statement of Duplication of Federal Programs ........................................                                 5
                                                                                      XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
                                                                                              Benefits .....................................................................................................     5
                                                                                     XIII. Federal Mandates Statement .....................................................................                      5
                                                                                     XIV. Federal Advisory Committee Statement ...................................................                               5




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                                                                                      XV. Applicability to Legislative Branch ...........................................................                        5
                                                                                     XVI. Statement of Constitutional Authority ......................................................                           6
                                                                                         69–006




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                                                                                 XVII. Changes in Existing Law Made by the Bill, as Reported ........................                                 6
                                                                                XVIII. Minority Views ............................................................................................   10

                                                                                                                 I. PURPOSE AND BILL SUMMARY
                                                                                  On May 19, 2026, Rep. John Olszewski (D–MD) and Rep. Tony
                                                                                Wied (R–WI), introduced H.R. 8879, the Oversight and Trans-
                                                                                parency for Small Business Certifications Act of 2026. H.R. 8879 re-
                                                                                quires the U.S. Small Business Administration (SBA) to provide a
                                                                                report to Congress regarding certification activities and contract
                                                                                awards within the SBA’s small business programs, including cer-
                                                                                tain certification activities for Women-Owned Small Business
                                                                                (WOSB), HUBZone (Historically Underutilized Business Zones),
                                                                                and Service-Disabled Veteran-Owned Small Business (SDVOSB)
                                                                                programs.
                                                                                                                     II. NEED FOR LEGISLATION
                                                                                   The Oversight and Transparency for Small Business Certifi-
                                                                                cations Act of 2026 requires the SBA to report on certification ac-
                                                                                tivities and contract awards related to its small business programs.
                                                                                Certain certification activities are required for the Women-Owned
                                                                                Small Business (WOSB), HUBZone (Historically Underutilized
                                                                                Business Zones), and Service-Disabled Veteran-Owned Small Busi-
                                                                                nesses (SDVOSB) programs. The report would include data on the
                                                                                number of certifications granted or denied, application processing
                                                                                times, and the use of the SBA’s certification platform.
                                                                                   This bill requires reports to Congress to ensure accountability
                                                                                within these programs. As bad actors look to take advantage of the
                                                                                SBA’s small business programs, H.R. 8879 is intended to help root
                                                                                out waste, fraud, and abuse.
                                                                                                                                III. HEARINGS
                                                                                  On February 5, 2025, the Committee on Small Business held a
                                                                                hearing examining matters related to H.R. 8879 entitled ‘‘Hope on
                                                                                the Horizon: Prioritizing Small Business Growth in the 119th Con-
                                                                                gress.’’
                                                                                                                IV. COMMITTEE CONSIDERATION
                                                                                  The Committee on Small Business met in open session, with a
                                                                                quorum being present, on May 20, 2026, and ordered H.R. 8879 to
                                                                                be reported favorably to the House of Representatives by a roll call
                                                                                vote of 23 ayes to 0 nos.
                                                                                                                          V. COMMITTEE VOTES
                                                                                   Clause 3(b) of rule XIII of the Rules of the House of Representa-
                                                                                tives requires the Committee to list the recorded votes on the mo-
                                                                                tion to report legislation and amendments thereto. The Committee
                                                                                voted to favorably report H.R. 8879 to the House of Representatives
                                                                                at 4:10 PM.




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                                                                                                       VI. SECTION-BY-SECTION OF H.R. 8879
                                                                                Section 1—Short title
                                                                                  This Act may be cited as the ‘‘Oversight and Transparency for
                                                                                Small Business Certifications Act of 2026.’’
                                                                                Section 2—Report on small business concern participation in a cov-
                                                                                     ered contracting program
                                                                                   This section amends the Small Business Act to require the SBA
                                                                                to submit an annual report to Congress on participation in covered
                                                                                small business contracting programs.
                                                                                   This section requires the SBA to report the total number of cer-
                                                                                tified small businesses participating in covered contracting pro-
                                                                                grams; application and certification determination data; participa-
                                                                                tion across multiple certification programs; and the use of SBA’s
                                                                                unified certification application platform.
                                                                                   Additionally, this section establishes program-specific reporting
                                                                                requirements for the WOSB, HUBZone, and SDVOSB programs.
                                                                                For these three programs, the SBA is required to report on the
                                                                                number of applications denied, the average time for first-time ap-
                                                                                plicants to receive a certification determination, the percentage of
                                                                                applications submitted within the SBA’s timeframe, and the aver-
                                                                                age time for recertification applicants. The report must also include
                                                                                information on applicants seeking certifications in multiple pro-
                                                                                grams and the use of SBA’s certification application platform.
                                                                                   For the WOSB program specifically, this section requires report-
                                                                                ing on firms eligible for sole-source awards, certifications processed
                                                                                by national certifying entities, and applications initially submitted
                                                                                without sufficient information for certification determination.
                                                                                   This section also requires SBA to report processing and recertifi-
                                                                                cation timeframes for SDVOSBs, WOSBs, and HUBZone small
                                                                                business concerns, including the percentage of determinations com-
                                                                                pleted within SBA’s timelines and the average time required for
                                                                                certification and recertification determinations.
                                                                                   A covered contracting program includes the definitions of 8(a),
                                                                                WOSB, HUBZone, and SDVOSB as referenced in the Small Busi-
                                                                                ness Act.
                                                                                            VII. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
                                                                                  Pursuant to 3(c)(3) of rule XIII of the Rules of the House of Rep-
                                                                                resentatives, the Committee adopts as its own the cost estimate
                                                                                prepared by the Director of the Congressional Budget Office pursu-
                                                                                ant to section 402 of the Congressional Budget Act of 1974. At the
                                                                                time this report was filed, the Committee has requested but not re-
                                                                                ceived a cost estimate from the Director of the Congressional Budg-
                                                                                et Office.
                                                                                VIII. NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX
                                                                                                      EXPENDITURES
                                                                                   Pursuant to clause 3(c)(2) of rule XIII of the Rules of the House
                                                                                of Representatives and section 308(a)(I) of the Congressional Budg-




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                                                                                et Act of 1974, the Committee provides the following opinion and
                                                                                estimate with respect to new budget authority, entitlement author-
                                                                                ity, and tax expenditures. While the Committee has not received an




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                                                                                estimate of new budget authority contained in the cost estimate
                                                                                prepared by the Director of the Congressional Budget Office pursu-
                                                                                ant to section 402 of the Congressional Budget Act of 1974, the
                                                                                Committee does not believe that there will be any new or increased
                                                                                costs attributable to this legislation.
                                                                                                  IX. OVERSIGHT FINDINGS & RECOMMENDATIONS
                                                                                  In accordance with clause 3(c)(1) of rule XIII and clause 2(b)(1)
                                                                                of rule X of the Rules of the House of Representatives, the over-
                                                                                sight findings and recommendations of the Committee on Small
                                                                                Business with respect to the subject matter contained in H.R. 8879
                                                                                are incorporated into the descriptive portions of this report.
                                                                                                      X. PERFORMANCE GOALS AND OBJECTIVES
                                                                                   With respect to the requirements of clause 3(c)(4) of rule XIII of
                                                                                the Rules of the House of Representatives, the goal of H.R. 8879
                                                                                is to increase transparency in SBA small business certification pro-
                                                                                grams.
                                                                                          XI. STATEMENT OF DUPLICATION OF FEDERAL PROGRAMS
                                                                                  Pursuant to clause 3(c)(5) of rule XIII of the Rules of the House
                                                                                of Representatives, no provision of H.R. 8879 is known to be dupli-
                                                                                cative of another Federal program, including any program that was
                                                                                included in a report to Congress pursuant to section 21 of Public
                                                                                Law 111–139 or the most recent Catalog of Federal Domestic As-
                                                                                sistance.
                                                                                      XII. CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND
                                                                                                      LIMITED TARIFF BENEFITS
                                                                                  With respect to clause 9 of rule XXI of the Rules of the House
                                                                                of Representatives, the Committee finds that the bill does not con-
                                                                                tain any congressional earmarks, limited tax benefits, or limited
                                                                                tariff benefits as defined in clause 9(e), 9(f), or 9(g) of rule XXI of
                                                                                the Rules of the House of Representatives.
                                                                                                        XIII. FEDERAL MANDATES STATEMENT
                                                                                   The Committee will adopt as its own the estimate of the Federal
                                                                                mandates prepared by the Director of the Congressional Budget Of-
                                                                                fice pursuant to section 423 of the Unfunded Mandates Reform Act.
                                                                                                  XIV. FEDERAL ADVISORY COMMITTEE STATEMENT
                                                                                  No advisory committees within the meaning of section 5(b) of the
                                                                                Federal Advisory Committee Act were created by this legislation.
                                                                                                    XV. APPLICABILITY TO LEGISLATIVE BRANCH
                                                                                  The Committee finds that the legislation does not relate to the
                                                                                terms and conditions of employment or access to public services or
                                                                                accommodations within the meaning of section 102(b)(3) of the Con-




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                                                                                gressional Accountability Act.




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                                                                                                  XVI. STATEMENT OF CONSTITUTIONAL AUTHORITY
                                                                                   Pursuant to clause 7 of rule XII of the Rules of the House, the
                                                                                Committee finds that the authority for this legislation in Art. I, § 8,
                                                                                cl.1 of the Constitution of the United States.
                                                                                 XVII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
                                                                                  In compliance with clause 3(e) of rule XIII of the Rules of the
                                                                                House of Representatives, changes in existing law made by the bill,
                                                                                as reported, are shown as follows (existing law proposed to be omit-
                                                                                ted is enclosed in black brackets, new matter is printed in italics,
                                                                                and existing law in which no change is proposed is shown in
                                                                                roman):
                                                                                      CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
                                                                                  In compliance with clause 3(e) of rule XIII of the Rules of the
                                                                                House of Representatives, changes in existing law made by the bill,
                                                                                as reported, are shown as follows (existing law proposed to be omit-
                                                                                ted is enclosed in black brackets, new matter is printed in italics,
                                                                                and existing law in which no change is proposed is shown in
                                                                                roman):

                                                                                                                SMALL BUSINESS ACT

                                                                                         *       *        *       *        *        *        *
                                                                                   SEC. 10. (a) The Administration shall, as soon as practicable each
                                                                                fiscal year make a comprehensive annual report to the President,
                                                                                the President of the Senate, the Senate Select Committee on Small
                                                                                Business, and the Speaker of the House of Representatives. Such
                                                                                report shall include a description of the state of small business in
                                                                                the Nation and the several States, and a description of the oper-
                                                                                ations of the Administration under this chapter, including, but not
                                                                                limited to, the general lending, disaster relief, Government regula-
                                                                                tion relief, procurement and property disposal, research and devel-
                                                                                opment, technical assistance, dissemination of data and informa-
                                                                                tion, and other functions under the jurisdiction of the Administra-
                                                                                tion during the previous fiscal year. Such report shall contain rec-
                                                                                ommendations for strengthening or improving such programs, or,
                                                                                when necessary or desirable to implement more effectively congres-
                                                                                sional policies and proposals, for establishing new or alternative
                                                                                programs. In addition, such report shall include the names of the
                                                                                business concerns to whom contracts are let and for whom financ-
                                                                                ing is arranged by the Administration, together with the amounts
                                                                                involved. With respect to minority small business concerns, the re-
                                                                                port shall include the proportion of loans and other assistance
                                                                                under this Act provided to such concerns, the goals of the Adminis-
                                                                                tration for the next fiscal year with respect to such concerns, and
                                                                                recommendations for improving assistance to minority small busi-
                                                                                ness concerns under this Act.
                                                                                   (b) CYBERSECURITY REPORTS.—
                                                                                        (1) ANNUAL REPORT.—Not later than 180 days after the date




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                                                                                     of enactment of this subsection, and every year thereafter, the
                                                                                     Administrator shall submit a report to the appropriate congres-
                                                                                     sional committees that includes—




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                                                                                             (A) a strategy to increase the cybersecurity of informa-
                                                                                          tion technology infrastructure of the Administration;
                                                                                             (B) a supply chain risk management strategy and an im-
                                                                                          plementation plan to address the risks of foreign manufac-
                                                                                          tured information technology equipment utilized by the
                                                                                          Administration, including specific risk mitigation activities
                                                                                          for components originating from entities with principal
                                                                                          places of business located in the People’s Republic of
                                                                                          China; and
                                                                                             (C) an account of—
                                                                                                  (i) any incident that occurred at the Administration
                                                                                               during the 2-year period preceding the date on which
                                                                                               the first report is submitted, and, for subsequent re-
                                                                                               ports, the 1-year period preceding the date of submis-
                                                                                               sion; and
                                                                                                  (ii) any action taken by the Administrator to re-
                                                                                               spond to or remediate any such incident.
                                                                                        (2) FISMA REPORTS.—Each report required under paragraph
                                                                                     (1) may be submitted as part of the report required under sec-
                                                                                     tion 3554 of title 44, United States Code.
                                                                                        (3) RULE OF CONSTRUCTION.—Nothing in this subsection
                                                                                     shall be construed to affect the reporting requirements of the
                                                                                     Administrator under chapter 35 of title 44, United States Code,
                                                                                     in particular the requirement to notify the Federal information
                                                                                     security incident center under section 3554(b)(7)(C)(ii) of such
                                                                                     title, any guidance issued by the Office of Management and
                                                                                     Budget, or any other provision of law or Federal policy.
                                                                                        (4) DEFINITIONS.—In this subsection:
                                                                                             (A) APPROPRIATE CONGRESSIONAL COMMITTEES.—The
                                                                                          term ‘‘appropriate congressional committees’’ means—
                                                                                                  (i) the Committee on Small Business and Entrepre-
                                                                                               neurship of the Senate;
                                                                                                  (ii) the Committee on Homeland Security and Gov-
                                                                                               ernmental Affairs of the Senate;
                                                                                                  (iii) the Committee on Small Business of the House
                                                                                               of Representatives; and
                                                                                                  (iv) the Committee on Oversight and Reform of the
                                                                                               House of Representatives.
                                                                                             (B) INCIDENT.—The term ‘‘incident’’ has the meaning
                                                                                          given the term in section 3552 of title 44, United States
                                                                                          Code.
                                                                                             (C) INFORMATION TECHNOLOGY.—The term ‘‘information
                                                                                          technology’’ has the meaning given the term in section
                                                                                          3502 of title 44, United States Code.
                                                                                  (d) For the purpose of aiding in carrying out the national policy
                                                                                to insure that a fair proportion of the total purchases and contracts
                                                                                for property and services for the Government be placed with small
                                                                                business enterprises, and to maintain and strengthen the overall
                                                                                economy of the Nation, the Department of Defense shall make an
                                                                                annual report to the Committees on Small Business of the Senate
                                                                                and the House of Representatives, showing the amount of funds ap-
                                                                                propriated to the Department of Defense which have been ex-




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                                                                                pended, obligated, or contracted to be spent with small business
                                                                                concerns and the amount of such funds expended, obligated, or con-
                                                                                tracted to be spent with firms other than small business in the




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                                                                                same fields of operation; and such reports shall show separately
                                                                                the funds expended, obligated, or contracted to be spent for basic
                                                                                and applied scientific research and development.
                                                                                   (e) The Administration and the Inspector General of the Admin-
                                                                                istration shall retain all correspondence, records of inquiries,
                                                                                memoranda, reports, books, and records, including memoranda as
                                                                                to all investigations conducted by or for the Administration, for a
                                                                                period of at least one year from the date of each thereof, and shall
                                                                                at all times keep the same available for inspection and examination
                                                                                by the Senate Select Committee on Small Business and the Com-
                                                                                mittee on Small Business of the House of Representatives or their
                                                                                duly authorized representatives.
                                                                                   (2) The Committee on Small Business of either the Senate or the
                                                                                House of Representatives may request that the Office of the Inspec-
                                                                                tor General of the Administration conduct an investigation of any
                                                                                program or activity conducted under the authority of section 7(j) or
                                                                                8(a). Not later than thirty days after the receipt of such a request,
                                                                                the Inspector General shall inform the committee, in writing, of the
                                                                                disposition of the request by such office.
                                                                                   (f) To the extent deemed necessary by the Administrator to pro-
                                                                                tect and preserve small-business interests, the Administration shall
                                                                                consult and cooperate with other departments and agencies of the
                                                                                Federal Government in the formulation by the Administration of
                                                                                policies affecting small-business concerns. When requested by the
                                                                                Administrator, each department and agency of the Federal Govern-
                                                                                ment shall consult and cooperate with the Administration in the
                                                                                formulation by such department or agency of policies affecting
                                                                                small-business concerns, in order to insure that small-business in-
                                                                                terests will be recognized, protected, and preserved. This sub-
                                                                                section shall not require any department or agency to consult or co-
                                                                                operate with the Administration in any case where the head of
                                                                                such department or agency determines that such consultation or
                                                                                cooperation would unduly delay action which must be taken by
                                                                                such department or agency to protect the national interest in an
                                                                                emergency.
                                                                                   (g) The Administration shall transmit, not later than December
                                                                                31 of each year, to the Senate Select Committee on Small Business
                                                                                and Committee on Small Business of the House of Representatives
                                                                                a sealed report with respect to—
                                                                                        (1) complaints alleging illegal conduct by employees of the
                                                                                      Administration which were received or acted upon by the Ad-
                                                                                      ministration during the preceding fiscal year; and
                                                                                        (2) investigations undertaken by the Administration, includ-
                                                                                      ing external and internal audits and security and investigation
                                                                                      reports.
                                                                                   (h) The Administration shall transmit, not later than March 31
                                                                                of each year, to the Committees on Small Business of the Senate
                                                                                and House of Representatives a report on the secondary market op-
                                                                                erations during the preceding calendar year. This report shall in-
                                                                                clude, but not be limited to, (1) the number and the total dollar
                                                                                amount of loans sold into the secondary market and the distribu-
                                                                                tion of such loans by size of loan, size of lender, geographic location




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                                                                                of lender, interest rate, maturity, lender servicing fees, whether the
                                                                                rate is fixed or variable, and premium paid; (2) the number and
                                                                                dollar amount of loans resold in the secondary market with a dis-




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                                                                                tribution by size of loan, interest rate, and premiums; (3) the num-
                                                                                ber and total dollar amount of pools formed; (4) the number and
                                                                                total dollar amount of loans in each pool; (5) the dollar amount, in-
                                                                                terest rate, and terms on each loan in each pool and whether the
                                                                                rate is fixed or variable; (6) the number, face value, interest rate,
                                                                                and terms of the trust certificates issued for each pool; (7) to the
                                                                                maximum extent possible, the use by the lender of the proceeds of
                                                                                sales of loans in the secondary market for additional lending to
                                                                                small business concerns; and (8) an analysis of the information re-
                                                                                ported in (1) through (7) to assess small businesses’ access to cap-
                                                                                ital at reasonable rates and terms as a result of secondary market
                                                                                operations.
                                                                                            *           *            *              *           *          *           *




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                                                                                                               XVIII. MINORITY VIEWS
                                                                                   Congress has created four small business contracting programs
                                                                                that provide tools for the government to recruit and retain small
                                                                                businesses and to level the playing field for them to enter, compete,
                                                                                and have success in the federal market: (1) Women-Owned Small
                                                                                Business program (WOSB); (2) Historically Underutilized Business
                                                                                Zone program (HUBZone); (3) Service-Disabled Veteran-Owned
                                                                                Small Business program (SDVOSB); and (4) the 8(a) Business De-
                                                                                velopment program (8(a)).1
                                                                                   The programs’ requirements and authorities differ but firms
                                                                                must be certified by the Small Business Administration (SBA) to
                                                                                be eligible for contracts set aside for small business competitions
                                                                                and sole source awards by federal agencies.
                                                                                   The Oversight and Transparency for Small Business Certifi-
                                                                                cations Act will require SBA’s budget justification documents to in-
                                                                                clude information on SBA’s certifications: the processes, infrastruc-
                                                                                ture and timelines, as well as participants, backlogs and wait times
                                                                                for each program.
                                                                                   The bill will help ensure the Committee has this information con-
                                                                                sistently and address recent, bipartisan concerns about whether
                                                                                the SBA is providing the Committee with a full and complete pic-
                                                                                ture on certifications.
                                                                                   For example, in past years, each program had its own online cer-
                                                                                tification platform and designated staff in SBA’s Office of Govern-
                                                                                ment Contracting and Business Development. As a result, small
                                                                                businesses faced different experiences when seeking a certification.
                                                                                In 2023 service-disabled veterans seeking an SBA certification
                                                                                were served by 20 dedicated SBA staff and 54 contractors, who
                                                                                processed applications in about three weeks. Applicants to the
                                                                                WOSB program were served by 8 SBA staff and 2 contractors, re-
                                                                                sulting in a backlog of roughly 7,000 applicants and an average
                                                                                wait time of almost a year.2
                                                                                   Since 2015, the SBA has attempted to develop a platform that
                                                                                would bring each of the programs’ certifications into one place, with
                                                                                the intent of streamlining the certification process for all small
                                                                                businesses, including and especially applicants seeking more than
                                                                                one certification. In November 2022, after multiple failed attempts
                                                                                by the SBA to produce a unified platform,3 the SBA began devel-
                                                                                oping the Unified Certification Platform (UCP) in 2023, and the
                                                                                   1 The legislation’s reporting requirements do not cover the 8(a) Program since that program
                                                                                has a more extensive annual report: The 408 Report to Congress on SBA’s 8(a) Business Devel-
                                                                                opment Program, https://www.sba.gov/document/report-408-report-us-congress-minority-small-
                                                                                business-capital-ownership-development.
                                                                                   2 Email from U.S. SMALL BUS. ADMIN. to the H. COMM. ON SMALL BUS. (10.9.24) (on
                                                                                file with the H. COMM. ON SMALL BUS.).
                                                                                   3 U.S. SMALL BUS. ADMIN. OFF. OF INSPECTOR GEN., EVALUATION OF CERTIFY.SBA.GOV (Jul.




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                                                                                UCP began accepting initial certification applications in late Octo-
                                                                                ber 2024.
                                                                                  During this time, members of the Committee raised concerns
                                                                                about the timing of changes, the portal itself and the sufficiency of
                                                                                SBA’s responses to Congressional inquiries.
                                                                                  In a House Small Business Committee held a hearing on Sep-
                                                                                tember 18, 2024 entitled: ‘‘Holding the SBA Accountable: Testi-
                                                                                mony from Small Business Administrator Guzman,’’ both the
                                                                                Chairman and Ranking Member raised the UCP and expressed
                                                                                frustration with SBA’s communication to the Committee with the
                                                                                Administrator directly. These concerns were later verified by a
                                                                                GAO report that found SBA did not follow proper processes to de-
                                                                                velop the UCP.4
                                                                                  Additionally, early awareness of growing wait times is particu-
                                                                                larly crucial for WOSB program applicants, who saw the most se-
                                                                                vere certification backlog prior to the UCP, and who remain an
                                                                                underrepresented source of talent, innovation, and solutions in the
                                                                                federal marketplace. In the lead up to UCP deployments, the Com-
                                                                                mittee frequently heard from women-owned firms about the back-
                                                                                log of WOSB applications, yet SBA was not forthcoming with that
                                                                                information.
                                                                                  Data show that women are starting and growing small busi-
                                                                                nesses in diverse sectors, but that we must do more to encourage
                                                                                them to sign up to work with the federal government, including by
                                                                                ensuring the efficiency of SBA’s certification process. Annual infor-
                                                                                mation on the backlog would have allowed Congress to conduct
                                                                                proper oversight and identify issues with the certification processes
                                                                                and SBA portal(s) in a more timely manner.
                                                                                  SBA’s annual budget justification documents have previously in-
                                                                                cluded limited data on the small business contracting programs’
                                                                                certifications. While they have not included the associated wait
                                                                                times and backlog numbers, they have included data on each of the
                                                                                programs and participants. However, for both Fiscal Year (FY)
                                                                                2026 and FY 2027, the budget documents did not include any de-
                                                                                tails on the programs.5
                                                                                  Current and aspiring government contractors already face
                                                                                enough challenges in the federal market. Unnecessary time or
                                                                                added hurdles just to get a certification, before they can even com-
                                                                                pete for contracting opportunities, should not be one of them. The
                                                                                Oversight and Transparency for Small Business Certifications Act
                                                                                will provide consistent, current and relevant information to ensure
                                                                                the SBA programs are effective and performing as intended.
                                                                                                                         NYDIA M. VELÁZQUEZ,
                                                                                                                                  Ranking Member.

                                                                                                                                    Æ
                                                                                  4 GOV’T ACCOUNTABILITY OFF., IT MODERNIZATION: SBA URGENTLY NEEDS TO ADDRESS RISKS




DMWilson on DSK7X7S144PROD with REPORTS
                                                                                ON NEWLY DEPLOYED SYSTEM (Nov. 6, 2024).
                                                                                  5 U.S. SMALL BUS. ADMIN., FISCAL YEAR 2026 CONGRESSIONAL BUDGET JUSTIFICATION & FIS-

                                                                                CAL YEAR 2026 ANNUAL PERFORMANCE PLAN (May 30, 2025).




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