Bill > S202

This bill establishes the Helping Small Businesses Thrive Program within the Small Business Administration (SBA) to help small businesses manage risks associated with volatile commodity costs. The program will allow eligible small businesses to purchase commodity futures contracts, with an initial focus on gasoline and diesel fuel, and potentially expanding to other commodities like electricity and natural gas. Eligible businesses must be operational for at least one year and cannot be financial institutions or entities already heavily involved in financial trading. The SBA Administrator will create agreements that allow small businesses to purchase commodities at a fixed price, offering call option purchase agreements that protect businesses if commodity prices increase by more than 5%. The program will run for five years, with the Administrator forming a commodity pool and facilitating commodity derivative market transactions. Businesses will be responsible for all agreement costs, and any proceeds from the program will first offset operating expenses, with any surplus returned to the U.S. Treasury. The SBA will provide guidance, conduct outreach to small businesses, and submit annual reports to congressional committees detailing program participation, agreement values, and feedback from participating businesses. The goal is to help small businesses hedge against unpredictable input costs and improve their financial stability.

Business and Industry

https://www.congress.gov/bill/119th-congress/senate-bill/202/all-info