PROMISE for Small Businesses Act

Core Policy Mechanism Top 1

Mandatory SBA Subcontracting Plan Compliance Reviews

Requires the Small Business Administration (SBA) to review at least 10 percent of federal contracts per agency each year to check whether prime contractors are meeting their small business subcontracting commitments. Requires the Small Business Administration (SBA) annual report to Congress to include, for each reviewed contract, details on contractor compliance with subcontracting plans, number of compliance reviews conducted, and any follow-up actions taken.

• Population Scope Low Directly affects large prime contractors holding federal contracts with subcontracting plans — a narrow set of business entities relative to the broader economy.
• Budgetary Magnitude Low No funds are authorized or appropriated; the bill imposes a review obligation on the Small Business Administration (SBA) using existing authority and resources.
• Legal / Regulatory Depth Medium Creates a new statutory mandate requiring SBA Administrator to conduct a minimum share of compliance reviews — constraining previously discretionary agency conduct rather than altering the substantive rights or obligations of the regulated population.
• Degree of Discretion Granted Low The bill uses mandatory 'shall' language with a hard floor (10 percent) and requires varied contract types be reviewed, leaving SBA little discretion in whether or how broadly to act.
• Implementation & Enforcement Burden Medium Imposes a recurring annual compliance-review obligation on SBA across every federal agency's contract portfolio, requiring systematic case-by-case evaluation and public reporting to Congress each year.
• Temporal Commitment High Amends permanent statutory text with no expiry date or reauthorization trigger, binding SBA indefinitely until Congress acts to repeal or modify it.