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H.R. 3986: Small Business Liberation Act

The Small Business Liberation Act is a proposed piece of legislation that aims to provide relief to small businesses in the United States. Here’s what the bill would do, broken down into key sections:

Short Title

The bill is officially known as the "Small Business Liberation Act."

Exemption from Duties

The primary focus of this bill is to exempt small business concerns from certain duties. Specifically, it would mean that:

Small businesses would not have to pay duties imposed due to a national emergency declared by the President on April 2, 2025.
The duties in question were established under an Executive Order (specifically, Executive Order 14257), which outlines the regulations and charges on certain imported goods.
This exemption applies to goods imported by or for the use of small businesses, as defined by the Small Business Act.

Definition of Small Business Concerns

The exemption applies specifically to "small business concerns," which are defined according to section 3 of the Small Business Act. This generally refers to businesses that meet specific criteria related to the number of employees and average annual receipts, with the definition varying by industry and other factors.

Purpose of the Bill

The purpose of this legislation is to reduce the financial burden on small businesses during a time when they might be struggling due to the impacts of the declared national emergency. By relieving them from certain import duties, the bill seeks to support their operations and overall economic stability.

Legislative Process

The bill was introduced in the House of Representatives and referred to the Committee on Ways and Means for further consideration. It is sponsored by Ms. Morrison and has multiple co-sponsors from different states.

Implications

If enacted, the Small Business Liberation Act could simplify the import process for small businesses by removing cost barriers associated with duties on imported goods. This could lead to greater access to necessary products and materials, potentially benefiting a wide range of small business sectors.