Bill to amend Small Business Act 2004 tabled

─ to ensure 20 per cent of govt contracts be awarded to small business
─ to ensure businesses meet specified criteria before being classified as a small business

By Anara Khan

DPI, Guyana, Thursday, May 23, 2019

The Small Business (Amendment) Bill 2019 was today presented to 115th Sitting of the National Assembly of the 11th Parliament, to be read for the first time, by newly appointed Minister of Business, Haimraj Rajkumar.

The bill, amending the principal Act, Small Business Act of 2004, will allow for a portion of government procurement to be set aside for small businesses. This provision was not catered in the Principal Act.

The amendments to Clause 3 section (11) 1 of the Small Business Act of 2004, seek to ensure that 20 per cent of government contracts be awarded to small business.

Also, the bill seeks to amend Clause 2 of the Small Business Act 2004 to ensure that businesses meet specified criteria before being classified as a small business.

The Small Business Act of 2004 states once a business does not have a staff compliment exceeding 25 persons, has a gross annual revenue of not more than $60M and total business assets amounting to not more than $20M it will classify as a small business. Section 2 (2) (a) of the Principal Act was also amended to ensure that documented verification of the criteria is provided to the business before a declaration.

It also allows for the Small Business Council to grant “approved small business” status to businesses based on recommendations of the Small Business Bureau (SBB).