Assistance for Minority and Disadvantaged Small Businesses Statement on Signing H.R. 11318 Into Law.

I am pleased to sign H.R. 11318, a bill which assists minority and socially and economically disadvantaged small businesses through investment, procurement, management, and technical assistance programs in the Small Business Administration (SBA). This bill also sets up ways for small businesses to participate more in Federal Government contracting.

I am aware of the past shortcomings of SBA's 8(a) Business Development program. This program is intended to channel noncompetitive procurement contracts to socially and economically disadvantaged businesses so as to build them up to the point where they can compete on their own in the Federal procurement process. H.R. 11318 provides statutory guidelines for eligibility in this program; it also provides the management and technical assistance tools needed to develop these businesses. The regulations implementing this program will be uniform and governmentwide.

H.R. 11318 will also make it less expensive for minority enterprise small business investment companies (MESBIC's) to get capital from SBA, which will help struggling businesses to become successful enterprises.

By requiring that all Federal procuring agencies consult with SBA in establishing realistic goals for small business participation in Federal contracts, H.R. 11318 will increase the number of contracts going to all small businesses. This bill also creates Offices of Small and Disadvantaged Business Utilization in each Federal agency with procurement powers to further the cause of small business in the contracting and subcontracting process. Furthermore, the administration will take administrative steps to strengthen the subcontracting provisions of the bill even further.

This bill addresses a matter of deep concern to this administration—making minority-owned businesses into full and equal partners in the free enterprise system. As a result of racial or ethnic prejudice or social bias, too many Americans have too long been kept from realizing their full potential in the small business community. H.R. 11318 goes a long way in helping small and disadvantaged businesses grow in our economy. Special thanks are due to Congressman Joseph Addabbo, Congressman Parren Mitchell, and Senator Sam Nunn for their efforts in drafting this significant legislation.

H.R. 11318 principally benefits ethnic minorities, although others also face disadvantages in their entrepreneurial efforts. More must be done to assist women business owners into the economic mainstream. My own Interdepartmental Task Force on Women Business Owners gave me its recommendations and findings early this summer. I have since directed that a new interagency committee follow up these recommendations with the cooperation of all departments and agencies. I shall soon announce new steps to aid women entrepreneurs and businesses owned by women.