Bill Overview
Title: Giving Disadvantaged Businesses Opportunities for Success Act
Description: This bill revises the Department of Transportation Disadvantaged Business Enterprise program and Airport Concession Disadvantaged Business Enterprise program. The bill further aligns the size limits for small businesses eligible for the programs with the Small Business Administration's size standards.
Sponsors: Rep. Garcia, Jesus G. "Chuy" [D-IL-4]
Target Audience
Population: People impacted by changes to Disadvantaged Business Enterprise programs
Estimated Size: 5000000
- The Disadvantaged Business Enterprise (DBE) programs are initiatives designed to support small and minority-owned businesses in the U.S., particularly those involved in government contracting and airport concessions.
- In the U.S., there are approximately 30 million small businesses, a portion of which are minority or women-owned, fitting the criteria for disadvantaged status.
- The U.S. Small Business Administration (SBA) sets size standards for businesses, which define the maximum size a business can be to qualify for small business programs. This alignment in standards means more businesses could potentially qualify or lose eligibility, depending on the cutoff.
- Airport concessions frequently provide significant opportunities for small and minority-owned businesses under the DBE program. The revision of these standards could affect a substantial number of concessionaires.
- The bill's effects will be felt predominantly by businesses in industries heavily influenced by transportation and aviation sectors.
Reasoning
- The Disadvantaged Business Enterprise (DBE) programs are initiatives designed to support small and minority-owned businesses in the U.S., particularly those involved in government contracting and airport concessions.
- In the U.S., there are approximately 30 million small businesses, a portion of which are minority or women-owned, fitting the criteria for disadvantaged status.
- The U.S. Small Business Administration (SBA) sets size standards for businesses, which define the maximum size a business can be to qualify for small business programs. This alignment in standards means more businesses could potentially qualify or lose eligibility, depending on the cutoff.
- Airport concessions frequently provide significant opportunities for small and minority-owned businesses under the DBE program. The revision of these standards could affect a substantial number of concessionaires.
- The bill's effects will be felt predominantly by businesses in industries heavily influenced by transportation and aviation sectors.
Simulated Interviews
small business owner (Los Angeles, CA)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- This policy could help me expand my business more easily at airports.
- Aligning with SBA standards might open up new opportunities for contracts.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 5 |
| Year 20 | 8 | 5 |
transport entrepreneur (Porltand, OR)
Age: 32 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 15/20
Statement of Opinion:
- This policy is unlikely to affect me unless I decide to partner with disadvantaged businesses.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
airport vendor (Miami, FL)
Age: 39 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- I hope this policy will secure more contracts for vendors like me.
- The alignment with SBA standards seems promising for growth.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
consultant for minority businesses (Houston, TX)
Age: 50 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 10/20
Statement of Opinion:
- This could lead to more clients needing guidance on how to navigate new opportunities.
- A positive change for businesses I work with, but not a direct impact on me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 5 | 6 |
IT consultant (Chicago, IL)
Age: 29 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 20/20
Statement of Opinion:
- This policy might not directly impact my work unless my clients benefit from it.
- I support efforts that improve diversity in businesses.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
retired teacher (Detroit, MI)
Age: 60 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 18/20
Statement of Opinion:
- Policies like this can help families and communities thrive, but I won't feel the effects directly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
CEO of mid-sized firm (New York, NY)
Age: 42 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 9/20
Statement of Opinion:
- This revision may increase competition, but our firm is well-established.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
small construction business owner (Atlanta, GA)
Age: 55 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 7.0 years
Commonness: 6/20
Statement of Opinion:
- Aligning with SBA size standards could help us qualify for new opportunities.
- I look forward to increased chances to compete for projects.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 4 |
small tech startup founder (Boston, MA)
Age: 26 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 12/20
Statement of Opinion:
- As a tech startup, I don't see how this would immediately affect us.
- Perhaps indirectly, through partnerships or support services.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
independent contractor (Phoenix, AZ)
Age: 38 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- This could enhance my ability to secure more contracts.
- There's potential for significant positive impact on my business.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Cost Estimates
Year 1: $100000000 (Low: $80000000, High: $120000000)
Year 2: $120000000 (Low: $96000000, High: $144000000)
Year 3: $125000000 (Low: $100000000, High: $150000000)
Year 5: $130000000 (Low: $104000000, High: $156000000)
Year 10: $140000000 (Low: $112000000, High: $168000000)
Year 100: $180000000 (Low: $144000000, High: $216000000)
Key Considerations
- The alignment with SBA size standards may impact the number of eligible businesses, potentially increasing program costs.
- Short-term impacts might be more administrative and require incremental funding increases to support new eligibilities.
- Long-term growth impacts from increased small business competition and contract opportunities could stimulate economic activity.
- Effects on existing DBE participants must be monitored to ensure that greater inclusion does not marginalize current participants.