Emerging Business Encouragement Act of 2023

HR 1538 creates a new "emerging business enterprise" designation for very small, young businesses (under 5 years old, with fewer than 25 employees or under 10% of industry size standards, and managers earning no more than 200% of average manager salaries). It requires federal agencies to set annual goals for awarding 3% of contracts to these businesses, prioritizing them if goals aren't met. The bill also waives SBA loan fees for eligible businesses and mandates agencies to report their progress to the Small Business Administration and Congress annually. These provisions aim to increase federal contracting opportunities for early-stage small businesses through defined eligibility, agency targets, and financial incentives.