The Helping Small Businesses THRIVE Act would create a pilot program inside the Small Business Administration (SBA). The program would let eligible small businesses enter into agreements to buy covered commodities or related derivatives through the SBA to limit the businesses' exposure to rising input costs. The Administrator would consult with the Commodity Futures Trading Commission and others when setting up the program. The bill defines which entities are eligible and excludes certain financial firms, brokers, registered investment advisers, entities under CFTC jurisdiction, and businesses operating less than one year.
The program would offer agreements at cost (including fees and commissions) and may offer call option purchase agreements to protect a participant if a covered commodity's price rises more than 5 percent. Agreements would last between 60 days and 3 years, and most agreements would be at least 120 days. Gasoline and diesel gasoline must be covered commodities. In the first year the Administrator may add up to three additional covered commodities (one may be industry-specific). The Administrator may form a commodity pool and register as a commodity pool operator and may hire commodity trading advisors or futures commission merchants to carry out transactions. The Administrator may not take physical delivery of commodities except in extreme circumstances. The program may use proceeds to cover operating costs and return excess proceeds to the Treasury.
The bill authorizes the appropriation of "such sums as may be necessary" to establish and run the pilot, with those funds available until five years after enactment. The Administrator must provide an initial report within 120 days and annual reports thereafter with information about applications, agreements, notional values, and participant feedback.
If you are a small business owner you could apply to the SBA pilot if you meet the eligibility rules. The program aims to help small businesses limit the risk of higher input costs for covered commodities such as gasoline and diesel. Participants would pay any costs required by the agreement, including up-front costs. Certain businesses—like banks, brokers, registered investment advisers, entities under CFTC jurisdiction, and businesses operating under one year—are not eligible. The SBA will provide guidance, outreach, and a website and phone line to help small businesses decide whether to apply.
The bill authorizes "such sums as may be necessary" to establish and operate the pilot, with those appropriations available until five years after enactment. The program must use its proceeds to offset operating costs for the fiscal year and return any excess to the Treasury general fund. There is no specific dollar figure or estimated cost in the bill text. No publicly available information on expected budgetary impact or the number of participants is provided in the bill text.
The bill's stated purpose is to assist eligible small businesses in limiting the risk they face from rising input costs for commodities. The program is intended to reduce exposure to price volatility, offer guidance, and make commodity-related risk management more accessible to small businesses.
No publicly available information.