PROMISE for Small Businesses Act
- Sponsor
- Rescom. Hernández, Pablo Jose [D-PR-At Large]
- Committees
- Small Business Committee (primary)
- Last action
- Sep 28, 2026
Bottom line
The PROMISE for Small Businesses Act aims to increase oversight and transparency regarding federal contractors' adherence to small business subcontracting requirements by mandating regular compliance reviews and detailed reporting.
What it actually does
This bill amends the Small Business Act to mandate that the Administrator of the Small Business Administration (SBA) conduct compliance reviews for at least 10% of federal contracts each fiscal year that include subcontracting plans. It also requires the SBA's annual report to Congress to include detailed information on these compliance reviews, including the extent of contractor compliance, efforts to understand non-compliance, and additional actions taken by the Administrator.
Proponents argue
Supporters argue that this bill will strengthen accountability for large federal contractors, ensuring they meet their commitments to subcontract with small businesses. By mandating regular compliance reviews and public reporting, it will help identify and address non-compliance, thereby increasing opportunities for small businesses to participate in federal contracting and promoting economic growth within the small business sector.
Opponents contend
Critics might argue that mandating a specific percentage of compliance reviews could impose additional administrative burdens on the SBA and federal agencies, potentially diverting resources from other critical small business support programs. They might also contend that existing oversight mechanisms are sufficient or that a rigid percentage might not be the most efficient way to target non-compliance, preferring a risk-based approach.
The bill is very short and straightforward, making it highly accessible for a quick review.
Section 2(a) amending Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) by adding paragraph (18).
Requirement for SBA to Conduct Compliance Reviews
This provision requires the Administrator of the Small Business Administration (SBA) to evaluate at least 10% of all federal contracts entered into each fiscal year that have subcontracting plans. The SBA must ensure that a variety of contract types and subcontracting plans are included in these evaluations to provide comprehensive oversight.
Supporters argue
Supporters argue this provision is crucial for ensuring that federal agencies and prime contractors uphold their commitments to small businesses. The mandated 10% review provides a concrete mechanism for accountability, driving better compliance and opening up more opportunities for small businesses in the federal supply chain.
Critics contend
Critics might contend that a fixed 10% review rate is arbitrary and may not be the most effective use of SBA resources. They might argue that a risk-based approach, focusing on contracts or contractors with a history of non-compliance, would be more efficient and less burdensome for both the SBA and federal agencies.
Tradeoffs
The provision balances the need for robust oversight and accountability with potential administrative costs. While it aims to ensure small businesses receive their fair share of subcontracts, it could lead to increased bureaucratic processes for federal agencies and contractors, and the 10% target might not be optimally efficient.
Section 3 amending Section 10 of the Small Business Act (15 U.S.C. 639) by inserting subsection (c).
Annual Report on Subcontracting Plan Compliance
This provision requires the SBA's annual report to Congress to include specific details about the compliance reviews conducted under Section 2. For each contract reviewed, the report must describe the extent of contractor compliance, disaggregated by federal agency. It also requires reporting on SBA efforts to understand non-compliance and any additional actions taken by the Administrator regarding contractors' subcontracting plans.