Helping Small Businesses THRIVE Act
Sponsored By: Senator Jeanne Shaheen
Introduced
Summary
Helps small firms hedge rising commodity input costs by giving the SBA authority to offer commodity and derivatives agreements targeted at price volatility. This bill would create a one‑year‑deadline pilot program in the Small Business Administration to limit price risk for eligible small businesses through SBA‑set agreements and market transactions.
Show full summary
- Small businesses: Eligible firms could use SBA‑offered agreements to lock or limit commodity costs. Agreements must run between 60 days and 3 years, may be offered as call option purchases that protect against price increases over 5 percent, and are offered at cost including fees.
- Eligibility: Participation is limited to small business concerns that are not owned or controlled by financial institutions, brokers, or registered investment advisers, are not under Commodity Futures Trading Commission jurisdiction for financial activity, and have operated at least 1 year.
- Administration and oversight: The SBA would consult with the Commodity Futures Trading Commission and Treasury, may form a commodity pool and hire trading advisors, must publish guidance and conduct outreach through Small Business resource partners, and must report initial plans within 120 days and then annually. Appropriations are authorized as necessary and funds remain available for five years.
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 6 benefits, 0 costs, 1 mixed.
Fuel and energy coverage rules
This bill would require gasoline and diesel gasoline to be covered commodities. In the first year of the program, the SBA could add up to three more commodities, with at most one aimed at a specific industry, and the SBA must give at least 90 days' notice before removing a commodity.
SBA authority to trade commodities
If enacted, the SBA would be able to enter into and run commodity-derivative transactions and hire trading firms to carry them out. Program proceeds would first pay the program's operating costs each fiscal year, and any extra money would be returned to the U.S. Treasury general fund.
SBA pilot to limit commodity costs
This bill would require the Small Business Administration to start a pilot within 1 year to help small businesses limit commodity cost spikes. It would authorize "such sums as may be necessary" to run the pilot, with funds available for up to 5 years if Congress provides them.
Program agreement rules and fees
If enacted, Program agreements would run 60 days to 3 years and most would be at least 120 days. The SBA could set fixed prices at cost and offer call-option protection when a commodity rises more than 5 percent. Participating businesses would be responsible for all fees and any upfront costs when they sign.
How to apply and get help
This bill would require applicants to submit information the SBA needs and allow optional details about commodity expenses. The SBA would have to publish clear guidance online and do outreach through small business centers, webinars, and a toll-free help line.
Pilot program eligibility and exclusions
If enacted, only small business concerns could apply to the pilot. The bill would bar firms owned by banks, brokers, registered investment advisers, entities under CFTC financial jurisdiction, and businesses that have operated for less than 1 year.
SBA must report program results
The bill would require an initial SBA report within 120 days and annual reports starting within 1 year. Reports would say how many applications and agreements there were, total notional commodity amounts by commodity, and how the program affected participating businesses.
Sponsors & CoSponsors
Sponsor
Jeanne Shaheen
NH • D
Cosponsors
Bill Cassidy
LA • R
Sponsored 1/23/2025
Roll Call Votes
No roll call votes available for this bill.
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