[House Hearing, 117 Congress]
[From the U.S. Government Publishing Office]


                MARKUP OF: H.R. 7352, H.R. 7334, H.R. 7622,
                 H.R. 7664, H.R. 7670, H.R. 5879, H.R. 7694

=======================================================================

                                HEARING

                               BEFORE THE

                      COMMITTEE ON SMALL BUSINESS
                             UNITED STATES
                        HOUSE OF REPRESENTATIVES

                    ONE HUNDRED SEVENTEENTH CONGRESS

                             SECOND SESSION

                               __________

                              HEARING HELD
                              MAY 11, 2022

                               __________

[GRAPHIC NOT AVAILABLE IN TIFF FORMAT] 
                               
            Small Business Committee Document Number 117-054
             Available via the GPO Website: www.govinfo.gov
             
                               __________

                    U.S. GOVERNMENT PUBLISHING OFFICE                    
47-737 PDF                 WASHINGTON : 2022                     
          
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                   HOUSE COMMITTEE ON SMALL BUSINESS

                 NYDIA VELAZQUEZ, New York, Chairwoman
                          JARED GOLDEN, Maine
                          JASON CROW, Colorado
                         SHARICE DAVIDS, Kansas
                         KWEISI MFUME, Maryland
                        DEAN PHILLIPS, Minnesota
                         MARIE NEWMAN, Illinois
                       CAROLYN BOURDEAUX, Georgia
                         TROY CARTER, Louisiana
                          JUDY CHU, California
                       DWIGHT EVANS, Pennsylvania
                       ANTONIO DELGADO, New York
                     CHRISSY HOULAHAN, Pennsylvania
                          ANDY KIM, New Jersey
                         ANGIE CRAIG, Minnesota
              BLAINE LUETKEMEYER, Missouri, Ranking Member
                         ROGER WILLIAMS, Texas
                        PETE STAUBER, Minnesota
                        DAN MEUSER, Pennsylvania
                        CLAUDIA TENNEY, New York
                       ANDREW GARBARINO, New York
                         YOUNG KIM, California
                         BETH VAN DUYNE, Texas
                         BYRON DONALDS, Florida
                         MARIA SALAZAR, Florida
                      SCOTT FITZGERALD, Wisconsin

                 Melissa Jung, Majority Staff Director
            Ellen Harrington, Majority Deputy Staff Director
                     David Planning, Staff Director
                            
                            C O N T E N T S

                           OPENING STATEMENTS

                                                                   Page
Hon. Nydia Velazquez.............................................     1
Hon. Blaine Luetkemeyer..........................................     3

                                APPENDIX

Additional Material for the Record:
    H.R. 7352, ``PPP and Bank Fraud Enforcement Harmonization Act 
      of 2022''..................................................    23
    H.R. 7334, ``Covid-19 EIDL Fraud Statute of Limitations Act 
      of 2022''..................................................    25
    H.R. 7622, ``Small Business Workforce Pipeline Act of 2022''.    28
    H.R. 7664, ``Supporting Small Business and Career and 
      Technical Education Act of 2022''..........................    31
    H.R. 7670, ``Women-Owned Small Business Program Transparency 
      Act''......................................................    34
    H.R. 5879, ``HubZone Price Evaluation Preference 
      Clarification Act of 2021''................................    38
    H.R. 7694, ``Strengthening Subcontracting for Small 
      Businesses Act of 2022''...................................    40

 
 MARKUP OF: H.R. 7352, ``PPP AND BANK FRAUD ENFORCEMENT HARMONIZATION 
 ACT OF 2022'' H.R. 7334, ``COVID-19 EIDL FRAUD STATUTE OF LIMITATIONS 
               ACT OF 2022'' H.R. 7622, ``SMALL BUSINESS 
WORKFORCE PIPELINE ACT OF 2022'' H.R. 7664, ``SUPPORTING SMALL BUSINESS 
  AND CAREER AND TECHNICAL EDUCATION ACT OF 2022'' H.R. 7670, ``WOMEN-
 OWNED SMALL BUSINESS PROGRAM TRANSPARENCY ACT'' H.R. 5879, ``HUBZONE 
  PRICE EVALUATION PREFERENCE CLARIFICATION ACT OF 2021'' H.R. 7694, 
   ``STRENGTHENING SUBCONTRACTING FOR SMALL BUSINESSES ACT OF 2022''

                              ----------                              


                        WEDNESDAY, MAY 11, 2022

                  House of Representatives,
               Committee on Small Business,
                                                    Washington, DC.
    The Committee met, pursuant to call, at 10:05 a.m., in Room 
2360, Rayburn House Office Building, Hon. Nydia M. Velazquez 
[chairwoman of the Committee] presiding.
    Present: Representatives Velazquez, Davids, Golden, Crow, 
Mfume, Phillips, Newman, Bourdeaux, Carter, Evans, Houlahan, 
Craig, Luetkemeyer, Williams, Stauber, Meuser, Tenney, 
Garbarino, Young Kim of California, Van Duyne, and Fitzgerald.
    Chairwoman VELAZQUEZ. Good morning. With a quorum being 
present, I call this morning's meeting of the Committee on 
Small Business to order.
    Without objection, the Chair is authorized to declare a 
recess at any time.
    I would like to begin by noting some important 
requirements. Let me begin by saying that standing House and 
Committee rules and practice will continue to during hybrid 
proceedings. All Members are reminded that they are expected to 
adhere to these standing rules.
    House regulations require Members to be visible through a 
video connection throughout the proceeding, so please keep your 
cameras on. Also, please remember to be muted until you are 
recognized to minimize background noise.
    Today, we will be considering seven bipartisan bills that 
are a product of our legislative and oversight work over the 
course of this Congress. It has been a difficult couple of 
years. The pandemic has inflicted unprecedented harm on the 
small business community throughout the country. This Committee 
and its Members have worked diligently to provide both 
emergency and recovery support, and we are beginning to see the 
fruits of our labor.
    In 2021, Americans launched more than 5 million new 
businesses, higher than any previous year on record. Our 
economy has added more than 7.4 million jobs and unemployment 
is down to 3.6 percent. Small businesses will continue to lead 
the way in our recovery, and it is important that our committee 
remain focused on moving legislation to support small business 
growth for years to come.
    Just 2 weeks ago, we passed five bipartisan bills through 
the House in anticipation of National Small Business Week, and 
now we are back today to consider seven more bipartisan bills 
dedicated to promoting policies that encourage economic 
prosperity on main street in a variety of ways.
    First, we have two bills setting the statute of limitations 
for fraud in cases related to PPP and EIDL of 10 years. These 
bills will give law enforcement more time to investigate and 
prosecute pandemic-related fraud. I am proud to have partnered 
with the Ranking Member to take common sense steps to root out 
fraud and recover billions of dollars.
    Next, we will consider two bills to help small firms 
attract and retain qualified workers. Our committee has held 
numerous hearings over the past year and the bills represent 
what we have consistently heard from witnesses, the importance 
of utilizing apprenticeships and career and technical education 
programs.
    Finally, we will consider three contracting bills to 
improve the federal procurement process and promote 
opportunities for small businesses.
    Each of these pieces of legislation are critical to making 
it easier for employers to do what they do best, operate their 
business and create jobs.
    With that, let's turn to the bills under consideration.
    H.R. 7352, the ``PPP and Bank Fraud Enforcement 
Harmonization Act of 2022,'' introduced by myself and 
cosponsored by Ranking Member Luetkemeyer.
    H.R. 7334, the ``COVID-19 EIDL Fraud Statute of Limitations 
Act of 2022,'' introduced by the Ranking Member and cosponsored 
by myself.
    H.R. 7622, the ``Small Business Workforce Pipeline Act of 
2022,'' introduced by Mr. Crow and cosponsored by Mr. 
Fitzgerald, Ms. Houlahan, and Mr. Garbarino.
    H.R. 7664, the ``Supporting Small Business and Career and 
Technical Education Act of 2022,'' introduced by Mr. Williams 
and cosponsored by Ms. Newman.
    H.R. 7670, the ``Women-Owned Small Business Program 
Transparency Act,'' introduced by Ms. Houlahan and cosponsored 
by Ms. Tenney.
    H.R. 5879, the ``HUBZone Price Evaluation Preference 
Clarification Act of 2021,'' introduced by Ms. Newman and 
cosponsored by Ms. Salazar.
    And H.R. 7694, the ``Strengthening Subcontracting for Small 
Businesses Act of 2022,'' introduced by Mr. Stauber and 
cosponsored by Mr. Mfume.
    These bills have bipartisan support and I urge Members to 
support them.
    I would now like to recognize the Ranking Member for his 
opening statement.
    Mr. LUETKEMEYER. Thank you, Madam Chair, and thank you for 
calling this markup to discuss seven bipartisan bills that 
address a few different needs of the nation's job creators. 
Frankly put, the nation's small businesses, entrepreneurs, 
innovators, and startups, are facing some of the strongest 
headwinds in decades. Unfortunately, this morning's Consumer 
Price Index report highlights more of the same, from price 
increases that impact everything from food to gas, to not being 
able to find employees, to the continued supply chain issues, 
it is difficult to be a small business owner today. Inflation 
alone is a top challenge facing small businesses according to 
the surveys published by the Job Creators Network.
    Unfortunately, because small business owners operate on the 
thinnest of margins, dealing with inflation often is limited 
and results in raising prices themselves. This is a continuous 
cycle that puts the nation's smallest firms at a disadvantage. 
We must stop reckless spending in Washington and must stop it 
now.
    Pro-growth initiatives have worked in the past and they 
will work again. A low tax environment for small businesses, 
combined with a smart regulatory environment will allow 
businesses to return to operating independently. I look forward 
to returning to an economic environment that allows small 
businesses to grow, expand, and create jobs. Through this same 
lens, it is the responsibility of this committee to examine 
issues through congressional testimony and hearings and present 
prudent and responsible solutions. Today's slate of bills 
accomplishes this.
    Before us today are bills that tackle fraud and the 
recoupment of wasted dollars, bills that enforce workforce 
development of our country, and bills to strengthen the SBA's 
federal contracting programs. All three of these topics have 
been discussed widely by our Members and it truly represents 
how we, as a committee, should follow regular ardor.
    I want to thank the Chair for bringing these bills forward 
and they represent the work and devotion of many of our 
committee Members. I support each and every one of these bills 
and recommend a yes vote across the board.
    With that, Madam Chair, I look forward to today's markup, 
and I yield back.
    Chairwoman VELAZQUEZ. Thank you, Ranking Member. The 
gentleman yields back.
    Before we get into the individual bills, are there any 
Members present who seek recognition for the purpose of making 
an opening statement?
    H.R. 7352
    Seeing none, we will now move to the consideration of the 
first bill on the agenda, H.R. 7352, the ``PPP and Bank Fraud 
Enforcement Harmonization Act of 2022,'' introduced by myself 
and cosponsored by Ranking Member Luetkemeyer.
    The bill sets the statute of limitation for all cases of 
PPP fraud at 10 years, consistent with the statute of 
limitations for bank fraud.
    I will now recognize myself briefly.
    Under current law, bank-originated PPP fraud is being 
prosecuted as bank fraud, which has a 10-year statute of 
limitations. Yet, fintech originated PPP loans are prosecuted 
as wire fraud which only carries a 5-year statute of 
limitations. Given the volume of PPP loans and the diligence 
required by our investigators to identify and build cases 
against bad actors, my bill addresses this discrepancy by 
creating uniformity for all PPP loans. It gives prosecutors 10 
years to prosecute all cases of PPP fraud regardless of whether 
the lender was a bank or fintech company.
    This is important because SBA's Office of Inspector General 
identified over 70,000 loans totaling over $4.6 billion in 
potentially fraudulent PPP loans. Reports have found that 
fintechs handled 75 percent of PPP loans connected to fraud 
despite originating only 15 percent of the loans overall. Given 
the magnitude of the potential fraud in this program, we must 
ensure prosecutors have sufficient time to fully investigate 
and bring these cases forward.
    Currently, nonbank PPP loans secured in April 2020 will 
expire in 2025, less than 3 years away. This is simply not 
enough time given the complexity of these fraud schemes and the 
reality that we are only beginning to learn the full scope of 
fraud during the loan forgiveness process.
    I take our committee's oversight role over the SBA and this 
program very seriously. That is why I introduced this bill 
which will go a long way towards enhancing oversight and 
accountability for the biggest program in the agency's history. 
Let's be clear, Democrats and Republicans agree anyone who took 
advantage of this once-in-a-lifetime crisis to commit fraud and 
line their own pockets must be held accountable. It is 
unacceptable to allow anyone to get off the hook simply because 
the statute of limitations expired. We must give law 
enforcement the time they need to bring the fraudster to 
justice.
    I would now like to recognize the Ranking Member for an 
opening statement.
    Mr. LUETKEMEYER. Thank you, Madam Chair.
    When Members of Congress created the Paycheck Protection 
Program, we focused on ensuring dollars were delivered to small 
businesses in an effective and efficient manner. This was 
accomplished by requiring private sector lenders to play an 
important role in the program.
    The success of the program cannot be diminished. By the end 
of the program, nearly $800 billion in forgivable loans were 
delivered to the nation's small businesses. To this day, I 
continue to hear from small business owners that this program 
saved them and their employees.
    Unfortunately, and with any federal program, especially one 
of this magnitude, fraud will develop and occur. According to 
the most recent numbers from the Small Business 
Administration's Inspector General, there is approximately $4.6 
billion in potentially fraudulent loans within the PPP. While 
limited as compared to the SBA's direct EIDL program, fraud is 
fraud and it must be addressed swiftly and comprehensively.
    While most private sector lenders performed admirably and 
ensured oversight defenses were strong due to the federal 
financial rules and regulations such as Know Your Customer, 
independent studies and reports continue to highlight that some 
fintech lenders were more associated with fraudulent loans than 
other lenders. To ensure law enforcement officials have the 
tools and time at their disposal to track down all fraudulent 
activity, H.R. 7352 harmonizes the statute of limitations for 
all PPP loans out to 10 years.
    Without this important legislation, that statute of 
limitations within PPP will be different based on the type of 
lender involved. For example, bank fraud, which encompasses 
most lenders would stand at 10 years, but wire fraud, which is 
associated with fintech lenders, would stand at 5 years. Given 
the disparaging timelines, it was essential to move the statute 
of limitations for all PPP loans out to 10 years.
    As Congress continues to examine and analyze the COVID-19 
relief programs, it is critical that we examine all lending 
participants. Importantly, Congress required the Treasury 
Department and the Secretary of the Treasury to bring new 
lenders into the program and to help reach the nation's small 
businesses.
    As we continue to look into this, I assure you that we will 
have very important questions that need to be asked of the 
Secretary of the Treasury. Unfortunately, she continues to 
ignore the law and not appear before this committee. I hope 
this issue can be resolved soon as we have important work to do 
with examining lender participation within PPP. In the 
meantime, this is an important bill that will allow law 
enforcement to do their job.
    I want to thank the Chair for working with me on this 
legislation and urge my colleagues to join us and ensure fraud 
is tracked down no matter where, when, or how it occurred.
    With that, Madam Chair, I yield back.
    Chairwoman VELAZQUEZ. The gentleman yields back.
    Are there any other Members who wish to be recognized for a 
statement on H.R. 7352?
    I want to thank the Ranking Member for his bipartisanship 
on this bill and I urge a yes vote.
    If there is no further discussion, the committee will move 
on to consideration of H.R. 7352.
    The clerk will report the bill.
    The CLERK. H.R. 7352, the PPP and Bank Fraud Enforcement 
Harmonization----
    Chairwoman VELAZQUEZ. Without objection, H.R. 7352 is 
considered as read and open for amendment at any point.
    Does anyone seek recognition to offer an amendment?
    Seeing none, the question is now on H.R. 7352.
    All those in favor say aye.
    All those opposed say no.
    In the opinion of the Chair, the ayes have it and H.R. 7352 
is agreed to.
    The question now occurs on reporting H.R. 7352 favorably to 
the House.
    All those in favor say aye.
    All those opposed say no.
    In the opinion of the Chair, the ayes have it and H.R. 7352 
is reported to the House.
    Without objection, committee staff is authorized to correct 
punctuation and make other necessary technical corrections and 
conforming changes.
    Without objection, Members have 2 business days to file 
additional supplemental, dissenting, and minority views.
    H.R. 7334
    We will now consider H.R. 7334, the ``COVID-19 EIDL Fraud 
Statute of Limitations Act of 2022,'' introduced by Ranking 
Member Blaine Luetkemeyer and cosponsored by myself.
    Similar to the PPP and Bank Fraud Enforcement Harmonization 
Act, this bill extends the statute of limitations for COVID 
EIDL fraud cases to 10 years to allow prosecutors more time to 
investigate these cases and bring charges.
    I would now like to recognize the Ranking Member for an 
opening statement.
    Mr. LUETKEMEYER. Thank you, Madam Chair. And thank you for 
working with me on H.R. 7334, the ``COVID-19 EIDL Fraud Statute 
of Limitations Act of 2022.''
    Similar to the previous bill, H.R. 7334 will ensure law 
enforcement has the runway to conduct investigations and bring 
to justice any illegal behavior that occurred with the SBA's 
Economic Injury Disaster Loan program. Unfortunately, the SBA's 
Inspector General has flagged this program as one that has 
experienced an increased level of fraud and activity. According 
to numerous government reports, of the approximately $400 
billion in loans and grants directly handed out by the SBA, 
more than $80 billion could be potentially fraudulent. This 
represents a fraud rate of approximately 20 percent. These are 
taxpayer dollars on the line. This is unacceptable.
    Moreover, the SBA recklessly continues to allow small 
businesses to defer their payments within the EIDL program. We 
will not see the true performance of the program, nor will we 
understand the true extent of fraud within the program until 
payments are required. Each month of the deferment period 
represents time that law enforcement officials need to catch 
criminals.
    My bill, H.R. 7334, the ``COVID-19 EIDL Fraud Statute of 
Limitations Act of 2022'' will lengthen the statute of 
limitations for all EIDL loans and grants out to 10 years. As a 
sole lender, the SBA is not a depository institution, and 
therefore, crimes were on a much shorter statute of 
limitations. With more than $80 billion in fraudulent lending 
within one program, it is obvious the SBA does not know how to 
administer, nor underwrite loans on their own. H.R. 7334 will 
allow law enforcement to correct some of these wrongdoings.
    With that, I urge my colleagues to support H.R. 7334, and 
Madam Chair, I yield back the balance of my time.
    Chairwoman VELAZQUEZ. The gentleman yields back.
    I would now like to recognize the gentlewoman from New 
York, Ms. Tenney, for an opening statement.
    Ms. TENNEY. Thank you, Madam Chairwoman, and Ranking Member 
Luetkemeyer, for introducing this legislation.
    Since the onset of the pandemic, Congress has passed 
several COVID-19 relief bills totaling an unprecedented $5.3 
trillion. While some of this spending was unwise, other 
programs, like the Paycheck Protection Program and the COVID-19 
Economic Injury Disaster Loan program provided much-needed 
relief to employers and businesses devastated by the pandemic. 
However, since these measures were passed, we have learned 
about many alarming cases of fraud, waste, and abuse in the 
funding programs that these bills authorized. This is one 
reason I introduced the House version of the Transparency in 
COVID-19 Expenditures Act which should require an audit of all 
federal COVID-19 relief spending.
    There is, obviously, room for improvement in providing 
additional oversight and returning fraudulently awarded funds 
back to the taxpayers. The COVID-19 EIDL Fraud Statute of 
Limitations Act of 2022 will help fix part of the shortcoming 
by expanding the statute of limitations for the Economic Injury 
Disaster Loans from 6 years to 10 years as the Ranking Member 
mentioned. This is the same as in bank fraud. This will give 
the officials a greater window to track down fraudulent 
activity and hold these bad actors accountable on behalf of the 
taxpayers. No one should be wrongly profiting from the need to 
distribute during the pandemic. The American taxpayers deserve 
better. That is why I fully support this legislation and urge 
all of my colleagues to support it as well.
    And with that I yield back. Thank you.
    Chairwoman VELAZQUEZ. Thank you. The gentlewoman yields 
back.
    Are there any other Members who wish to be recognized for a 
statement on H.R. 7334?
    Mr. MEUSER. Madam Chair?
    Chairwoman VELAZQUEZ. Yes.
    Mr. MEUSER. Thank you, Madam Chair. And thank you to the 
Ranking Member.
    The EIDL Loan Program----
    Chairwoman VELAZQUEZ. The gentleman is recognized for 5 
minutes.
    Mr. MEUSER. Oh, I am sorry. Thank you, Ma'am.
    The EIDL Loan Program was another relief program, as we all 
know, that provided relief for struggling small businesses 
during the pandemic. The EIDL program, unlike the Paycheck 
Protection Program, was a direct loan program administered by 
the SBA. The SBA's Inspector General, as the Ranking Member 
mentioned, estimates that approximately $84 billion of the EIDL 
loan activity, nearly 20 percent, perhaps over 20 percent, was 
potentially fraudulent. With this massive level of potentially 
fraudulent activity, it is imperative that we pass Ranking 
Member Luetkemeyer's bill to extend the 5-year statute of 
limitations that currently exists for SBA grants and loans. In 
doing so, we can allow for authorities to investigate the 
egregious amount of potential fraud in the EIDL program and 
ensure accountability for those who took advantage of the EIDL 
program to defraud the American people.
    I urge my colleagues to support this important legislation 
and look forward to its swift consideration on the House floor.
    I yield back.
    Chairwoman VELAZQUEZ. The gentleman yields back.
    Are there any other Members who wish to be recognized on 
H.R. 7334?
    I would now like to recognize myself for 5 minutes.
    Congress notified the EIDL program at the outset of the 
pandemic to allow small businesses facing economic injury due 
to COVID to apply for SBA disaster loans. Overall, the COVID 
EIDL program has approved almost 4 million loans totaling over 
$378 billion. The program was a lifeline to millions of small 
businesses as they recovered from the COVID-19 disaster 
economic impacts.
    Early in the program, SBA lowered guardrails and disbursed 
funds quickly to provide stability to the small business 
economy, which has led to the fraud we are seeing today. 
Throughout the pandemic, our committee held numerous oversight 
hearings with the SBA Inspector General. Most recently, he 
testified it will be a decades-long effort to fully investigate 
an estimated $78 billion in potentially fraudulent activity as 
well as over $6 billion in loans and grants related to identify 
theft.
    Given the magnitude of this program and the degree of 
potential fraud, we need to give prosecutors more time to hold 
these pandemic fraudsters accountable, and this bill will do 
just that.
    I thank the Ranking Member for his introduction, and I am 
pleased to support it.
    If there is no further discussion, the committee will move 
on to consideration of H.R. 7334.
    The clerk will report the bill.
    The CLERK. H.R. 7334, the COVID----
    Chairwoman VELAZQUEZ. Without objection, H.R. 7334 is 
considered as read and open for amendment at any point.
    Does anyone seek recognition to offer an amendment?
    Seeing none, the question is now on H.R. 7334.
    All in favor say aye.
    All those opposed say no.
    In the opinion of the Chair, the ayes have it and H.R. 7334 
is agreed to.
    The question now occurs on reporting H.R. 7334 favorably to 
the House.
    All those in favor say aye.
    All those opposed say no.
    In the opinion of the Chair, the ayes have it and H.R. 7334 
is reported to the House.
    Without objection, committee staff is authorized to correct 
punctuation and make other necessary technical corrections and 
conforming changes.
    Without objection, Members have 2 business days to file 
additional supplemental, dissenting, and minority views.
    H.R. 7622
    We will now consider H.R. 7622, the ``Small Business 
Workforce Pipeline Act of 2022,'' introduced by Mr. Crow, the 
Chairman of the Subcommittee on Innovation, Entrepreneurship, 
and Workforce Development, and cosponsored by Representatives 
Fitzgerald, Houlahan, and Garbarino.
    This bill empowers Small Business Development Centers to 
help small firms improve their apprenticeship and job training 
programs.
    I would now like to recognize the gentleman from Colorado, 
Mr. Crow, the sponsor of the bill for an opening statement.
    Mr. CROW. Madam Chairwoman, thank you for the opportunity 
to speak in support of H.R. 7622, the ``Small Business 
Workforce Pipeline Act of 2022.''
    Just last week, I visited the Aurora South Metro Small 
Business Development Center which provides training and 
counseling to hundreds of small businesses in Colorado's 6th 
Congressional District. During this visit, I heard about the 
issues facing local small businesses, including small 
businesses and their difficulty finding qualified workers. We 
also spoke about solutions for small businesses like the Small 
Business Workforce Pipeline Act.
    The Small Business Workforce Pipeline Act aims to empower 
Small Business Development Centers, like Aurora's South Metro 
SBDC in my district, to help small businesses establish and 
improve their apprenticeship programs, or pre-apprenticeship, 
or job training programs. Work-based learning opportunities, 
like apprenticeships, help small businesses fill job openings 
and get the workers the skills that they need to succeed, not 
just individually but also within the business context.
    Offering work-based learning opportunities is a great way 
to attract quality candidates who may not be able to attend 
traditional education models and provide skills-based knowledge 
necessary to fill critical jobs. Basically, what we want to do 
is allow people to earn while they learn. People already have 
families, they have obligations, they have mortgages, they have 
a rent payment. Most people who are upskilling or reskilling do 
not have the ability to go back to school and earn nothing, and 
apprenticeship programs are very critical to fill this gap.
    I want to thank Representatives Fitzgerald, Houlahan, and 
Garbarino for their partnership on this bill, and I urge my 
colleagues to support H.R. 7622. I thank the Chairwoman for the 
opportunity to speak on its behalf. I yield back.
    Chairwoman VELAZQUEZ. The gentleman yields back.
    Now I would like to recognize the gentleman from Wisconsin, 
Mr. Fitzgerald, for an opening statement.
    Mr. FITZGERALD. Thank you, Madam Chair. I want to thank my 
colleague, Mr. Crow, for inviting me to co-lead H.R. 7622. The 
bill would allow Small Business Development Centers to provide 
information and assistance to small businesses on how to 
establish and improve work-based learning opportunities, 
apprenticeship programs, pre-apprenticeship programs, and other 
job training programs.
    I hear all the time in Wisconsin, in my district's small 
businesses every day about how the country's labor shortage is 
affecting the recruitment of skilled employees, particularly in 
the manufacturing sector. I have a lot of small, manufacturing, 
light manufacturing in the 5th Congressional. The latest NFIB 
Small Business Economic Trends Report showed that while 
optimism is recovering to pre-pandemic levels and it has been 
increasing, more than 60 percent of manufacturing firms report 
unfilled job openings.
    Apprenticeships and other job training programs provide a 
solution to address the needs of the manufacturing sector. 
Apprenticeships are among the most successful forms of 
workforce development through paid, on-the-job training, along 
with classroom education.
    This bill will directly benefit manufacturers and other 
businesses in Wisconsin's 5th District by having apprenticeship 
and other job training materials readily available to them. I 
support the passage of the bill and I would yield back.
    Chairwoman VELAZQUEZ. The gentleman yields back.
    Now I recognize the gentlelady from Pennsylvania, Ms. 
Houlahan, for an opening statement.
    Ms. HOULAHAN. Thank you, Chairwoman Velazquez, and Ranking 
Member Luetkemeyer, for the opportunity to speak on H.R. 7622, 
the ``Small Business Workforce Pipeline Act of 2022.'' I am 
very proud to help introduce this strong, bipartisan effort 
alongside my colleagues, Representatives Crow, Fitzgerald, and 
Garbarino.
    H.R. 7622 makes a very timely and much-needed change that 
allows Small Business Development Centers to be able to provide 
apprenticeships, pre-apprenticeships, and job training programs 
that will assist our small businesses. In traveling throughout 
my community in Pennsylvania, small business owners in Chester 
and Berks counties have shared over and over again that they 
simply cannot find workers with the technical experience needed 
to fill their abundant job openings. Through this legislation, 
business owners will be able to provide apprenticeship and on-
the-job training that would be able to do just that through 
accessing critical entrepreneurial development resources at 
their Small Business Development Centers.
    Additionally, it will allow workers to reskill, to upskill, 
and to gain the experience that they need to be able to succeed 
in our 21st century economy. This is critical as our small 
business owners, our entrepreneurs, and our workforce continues 
to recover from this pandemic.
    So, I eagerly and enthusiastically encourage all of my 
colleagues to support H.R. 7622, the Small Business Workforce 
Pipeline Act. With that, Madam Chair, I yield back the balance 
of my time. Thank you.
    Chairwoman VELAZQUEZ. The gentlelady yields back.
    Are there any other Members who wish to be recognized for a 
statement on H.R. 7622?
    Now I recognize the gentleman, the Ranking Member, Mr. 
Luetkemeyer.
    Mr. LUETKEMEYER. Thank you, Madam Chair.
    I would like to thank the gentleman from Colorado, 
Congressman Crow, as well as Congressman Fitzgerald, 
Congresswoman Houlahan, and Congressman Garbarino, for working 
on this legislation.
    This Congress, the committee has heard from Small Business 
Development Centers (SBDCs) and small businesses who have 
benefitted from SBDC services. This legislation will improve 
the SBDCs in their mission to serve small businesses. 
Specifically, this legislation will empower SBDCs to assist 
small businesses in establishing and improving work-based 
learning opportunities and apprenticeship programs. It also 
allows SBDCs to share information from the Department of Labor 
and other federal agencies related to work-based learning and 
apprenticeships.
    This legislation comes at a critical time as our small 
business community faces labor and skill shortages. NFIB's 
recent survey of small business owners found that 23 percent of 
owners report labor quality as a top business problem. Further, 
of those owners hiring or trying to hire, 93 percent of owners 
reported few or no qualified applicants for the positions they 
are trying to fill. Apprenticeships and learning opportunities 
help American workers gain new skills and support small 
business growth.
    With that, Madam Chair, I urge my colleagues to support 
H.R. 7622, and I yield back the balance of my time.
    Chairwoman VELAZQUEZ. The gentleman yields back.
    Now I recognize myself briefly.
    The SBDC program is the SBA's largest resource partner 
delivering free and low-cost counseling and training through 
its network of 62 lead centers and nearly 1,000 subcenters 
throughout the country. One particular area that small firms 
need assistance with is how to retract, retain, and train 
skilled workers. Small businesses have been hit hard by tight 
labor markets, often struggling to compete with their larger 
counterparts. With a record number of jobs available in the 
economy and an unemployment rate of just 3.6 percent, employers 
are finding it harder and harder to find qualified applicants.
    H.R. 7622 directs SBDCs to assist small firms that are 
struggling to find employees by sharing information regarding 
apprenticeships, pre-apprenticeships, and other forms of job 
training. Programs like this are highly successful workforce 
development programs with an average starting salary of $72,000 
and an employee retention rate of 92 percent. Apprenticeships 
not only provide a pathway into the middle class but high-
quality employees to businesses. With the assistance provided 
by the SBDC network, more small firms will have access to the 
resources they need to attract high-quality talent.
    I want to thank Representatives Crow, Fitzgerald, Houlahan, 
and Garbarino for their work in helping small businesses 
attract highly skilled and qualified workers. I urge a yes 
vote.
    If there is no further discussion, the Committee will move 
on to consideration of H.R. 7622.
    The clerk will report the bill.
    The CLERK. H.R. 7622, the Small Business Workforce Pipeline 
Act----
    Chairwoman VELAZQUEZ. Without objection, H.R. 7622 is 
considered as read and open for amendment at any point.
    Does anyone seek recognition to offer an amendment?
    Seeing none, the question is now on H.R. 7622.
    All in favor say aye.
    All those opposed say no.
    In the opinion of the Chair, the ayes have it and H.R. 7622 
is agreed to.
    The question now occurs on reporting H.R. 7622 favorably to 
the House.
    All those in favor say aye.
    All those opposed say no.
    In the opinion of the Chair, the ayes have it and H.R. 7622 
is reported to the House.
    Without objection, committee staff is authorized to correct 
punctuation and make other necessary technical corrections and 
conforming changes.
    Without objection, Members have 2 business days to file 
additional supplemental, dissenting, and minority views.
    H.R. 7664
    We will now consider H.R. 7664, the ``Supporting Small 
Business and Career and Technical Education Act of 2022,'' 
introduced by Vice Ranking Member, Mr. Williams, and 
cosponsored by Ms. Newman. This legislation directs SBDCs and 
WBCs to assist small businesses in hiring graduates from career 
and technical education programs and helps graduates launch 
their own businesses.
    I would now like to recognize the gentleman from Texas, Mr. 
Williams, the sponsor of the bill, for an opening statement.
    Mr. WILLIAMS. Thank you, Madam Chairwoman. I want to thank 
the Chairwoman and Ranking Member for including my bill in 
today's markup, H.R. 7664, known as the Supporting Small 
Business and Career and Technical Education Act. It is an 
important piece of legislation that will provide career and 
technical education graduates with additional support as they 
enter the workforce or start their own business.
    The growing skills gap is hitting small businesses across 
the country extremely hard, and our country needs more 
plumbers, electricians, mechanics, and other skilled 
professionals who are the lifeblood of this economy. A 
traditional 4-year college degree is not always for everyone, 
and we need to ensure students know that there are other 
providers that will provide them with good-paying jobs and a 
successful career.
    My bill directs Small Business Development Centers and 
Women's Business Centers to assist small businesses in hiring 
graduates from career and technical education programs, as well 
as assisting CTE graduates in starting up a small business of 
their own. America is in a critical need of skilled workers, 
which is why we should encourage younger generations to pursue 
a career in technical education paths. CTE programs prepare 
individuals for high-demand occupations that earn good wages 
and allow individuals to provide for their families. CTE is a 
return on investment by setting students up to learn a skill 
which they can master over the years and hopefully turn into 
their own small businesses one day.
    I want to thank Chairwoman Velazquez, Ranking Member 
Luetkemeyer, and all the staff who have helped in getting this 
bill brought up in the committee. It is important that we 
support the CTE professional in developing the necessary skills 
to become a business owner and assist in connecting graduates 
with an existing business in need of their unique skillset.
    I urge all of my colleagues to support H.R. 7664, and I 
yield back the balance of my time.
    Chairwoman VELAZQUEZ. Thank you. The gentleman yields back.
    Now, I would like to recognize the gentlelady from 
Illinois, Ms. Newman, for an opening statement.
    Ms. NEWMAN. Thank you, Madam Chair, and thank you, Ranking 
Member Luetkemeyer, for having this very important hearing. I 
would like to talk about H.R. 7664.
    I join my colleague today, Rep. Williams, in strong support 
of H.R. 7664, the Supporting Small Business and Career and 
Technical Education Act. This bill would increase CTE programs 
so it is very important. It would direct Small Business 
Development Centers, otherwise known as SBDCs and Women's 
Business Centers, WBCs, to assist small businesses in hiring 
graduates from career and technical education programs, in 
addition to the existing services which are amazing.
    As a prior small business owner, I know firsthand the 
importance of strengthening trade and issues which are a key 
component of building a 21st century economy that actually 
works for everybody, everywhere.
    While a 4-year degree remains an important path to 
rebuilding our workforce with skills, we also have to remember 
all of our other folks that do great work in the trades. This 
bill also relies on our valuable resource partners including 
WBCs. WBCs are designed from entrepreneurs who are socially and 
economically disadvantaged. In starting and growing small 
businesses through education and training, WBCs have spread 
across the country and will continue to be a factor as we grow 
our solutions and our workforce. It is critical to ensure that 
all of our youth have the opportunity that they need and the 
resources to develop critical skills that will lead them to 
good paying jobs--our skilled workforce is vital to a strong 
economy. I am proud to introduce H.R. 7664 with Rep. Williams 
and I urge my colleagues to support the bill.
    Thank you, and I yield back.
    Chairwoman VELAZQUEZ. The gentlelady yields back.
    Are there any other Members who wish to be recognized for a 
statement on H.R. 7664?
    Ranking Member?
    Mr. LUETKEMEYER. Madam Chair?
    Chairwoman VELAZQUEZ. Yes. The Ranking Member is 
recognized.
    Mr. LUETKEMEYER. Thank you, Madam Chair. And thank Mr. 
Williams and Ms. Newman for their work on this great 
legislation. Vice Ranking Member Williams is a strong advocate 
for small businesses and the American worker, and I appreciate 
his work on this legislation to engage with the career and 
technical education community to support small business growth.
    Career and technical education programs are so important 
for individuals across the nation because they help high 
school, community college, and trade school students obtain the 
hands-on experience they need for jobs in a broad range of 
industries. This legislation directs the Small Business 
Development Centers (SBDCs) and Women's Business Centers (WBCs) 
to assist small businesses in hiring graduates from career and 
technical education programs. Additionally, this legislation 
supports career and technical education graduates by directing 
SBDCs and WBCs to assist them in starting a small business.
    With that, Madam Chair, I urge my colleagues to support 
H.R. 7664, and I yield back.
    Chairwoman VELAZQUEZ. The gentleman yields back.
    Are there any other Members who wish to be recognized for a 
statement?
    I would now like to recognize myself briefly.
    Whether it is accessing capital, developing a business 
plan, or assisting in a marketing strategy, SBA resource 
partners play a crucial role in helping small businesses 
thrive. Over the past few years, we have heard about the 
struggles that many small firms face in finding a skilled 
workforce. A poll of over 6,000 small businesses throughout the 
country found that roughly three in five are having issues 
hiring talent. H.R. 7664 utilizes SBDCs and WBCs by assisting 
small firms looking for talent and recent graduates interested 
in becoming entrepreneurs. It requires SBDCs and WBCs to build 
awareness of career and technical education programs among 
small business owners and develop close partnerships to help 
bridge the gap between training programs and small firms 
struggling to find workers. I applaud the work of 
Representatives Williams and Newman on this bill connecting 
graduates of career and technical education programs with small 
businesses, and I urge a yes vote.
    If there is no further discussion, the committee will move 
on to consideration of H.R. 7664.
    The clerk will report the bill.
    The CLERK. H.R. 7664, the Supporting Small Business----
    Chairwoman VELAZQUEZ. Without objection, H.R. 7664 is 
considered as read and open for amendment at any point.
    Does anyone seek recognition to offer an amendment?
    Seeing none, the question is now on H.R. 7664.
    All those in favor say aye.
    All those opposed say no.
    In the opinion of the Chair, the ayes have it and H.R. 7664 
is agreed to.
    The question now occurs on reporting H.R. 7664 favorably to 
the House.
    All those in favor say aye.
    All those opposed say no.
    In the opinion of the Chair, the ayes have it and H.R. 7664 
is reported to the House.
    Without objection, committee staff is authorized to correct 
punctuation and make other necessary technical corrections and 
conforming changes.
    Without objection, Members have 2 business days to file 
additional supplemental, dissenting, and minority views.
    H.R. 7670
    We will now consider H.R. 7670, the ``Women-Owned Small 
Business Program Transparency Act'' introduced by 
Representative Houlahan and cosponsored by Representative 
Tenney, Ranking Member of the Subcommittee on Underserved, 
Agricultural, and Rural Business Development.
    This bill establishes a reporting requirement for the 
Women-Owned Small Business Contracting Program.
    I would now like to recognize the gentlewoman from 
Pennsylvania, Ms. Houlahan, the sponsor of the bill, for an 
opening statement.
    Ms. HOULAHAN. Thank you.
    First, I would like to thank you, Chairwoman Velazquez, and 
Ranking Member Luetkemeyer, for organizing this bipartisan 
markup and for bringing H.R. 7670, the ``Women-Owned Small 
Business Program Transparency Act'' before our committee 
alongside these other very important bipartisan measures.
    I also want to thank Representative Claudia Tenney for her 
partnership in introducing this legislation.
    The SBA's Women-Owned Small Business Contracting Program 
helps to level the playing field by reserving federal 
contracting opportunities for qualified women-owned small 
businesses in underrepresented industries. Through this 
program, the SBA aids other federal agencies in meeting the 
statutory goal of awarding 5 percent of all prime federal 
contracts to women-owned small businesses.
    While the SBA has made great strides towards improving the 
program in recent years, including transitioning to full SBA 
certification for businesses that participate in the program, 
additional transparency and oversight is needed to address 
ongoing program challenges.
    The WOSB program has only met its 5 percent statutory goal 
twice, most recently attaining 4.85 percent in fiscal year 
2020. In addition to the underutilization of the women-owned 
companies in federal contracting, the SBA is also facing a 
significant backlog of applications and there is very little 
visibility into how many firms are being certified by the four 
national certifying entities that are approved by the SBA. The 
Government Accountability Office has also issued concerns 
regarding the needed improvements to program examinations and 
to contracts that are being awarded to businesses in eligible 
industries.
    To address these concerns, H.R. 7670 requires the SBA to 
submit to Congress an annual report which would benchmark 
crucial data, including the amount of contracting dollars that 
are awarded through the program, the number of certifications 
that are being issued, the amount of program examinations being 
conducted, the number of companies that are being decertified, 
and the number of contracts that are incorrectly awarded, as 
well as any other actions taken by the SBA to properly train 
personnel in other agencies.
    The bill will increase transparency and oversight, allowing 
Congress and the SBA to further improve the program, to work 
towards efficiencies, and to properly allow for program 
administration, and ultimately, of course, to benefit women in 
securing government contracts, especially those in 
underrepresented industries.
    Improvements to the SBA's Women-Owned Small Business 
Contracting Program are especially needed as our business 
owners are continuing to recover from the pandemic. As 
additional federal contracts are issued through the historic 
implementation of the bipartisan Infrastructure Investment and 
Jobs Act, it is critical that Congress has access to the data 
which will be required by this legislation.
    Women-owned businesses are still underutilized in federal 
contracting and greater oversight must be established to ensure 
that the program is working as it is intended.
    I urge my colleagues enthusiastically to support H.R. 7670. 
With that, I yield back the remainder of my time, Madam Chair.
    Chairwoman VELAZQUEZ. The gentlelady yields back.
    Now we recognize the gentlelady from New York, Ms. Tenney, 
for an opening statement.
    Ms. TENNEY. Thank you, Chairwoman Velazquez and Ranking 
Member Luetkemeyer. I, too, echo the comments of my colleague, 
Representative Houlahan. And having this bipartisan markup, it 
is great for our small business community. Also, I am just 
pleased to be cosponsoring 7670, the ``Women-Owned Small 
Business Program Transparency Act'' because I think it is 
really important.
    For over 2 decades, the Women-Owned Small Business Program 
has set aside at least 5 percent of federal contracting dollars 
for certified women-owned small businesses. This plays a small 
part, but important part, ensuring that the federal government 
does not leave our nation's small businesses behind and that we 
continue to have a robust and competitive contractor ecosystem 
to pull from.
    In New York's 22nd Congressional District, small businesses 
make up 94 percent of all employees, and I have seen the 
tremendous impact that women-owned small businesses had. 
Whether it is my good friend Gina Curcio, who runs Curcio 
Printing in the Southern Tier or a wonderful company called 
AeroMed Technologies in Utica, our communities and our 
taxpayers benefit from women-owned businesses, especially when 
they thrive. My family business, which has been around since 
1946, is also a women-owned business.
    However, even with this proven track record, the Women-
Owned Small Business program has room for improvement. The 
Small Business Administration still does not transparently 
disclose some in-depth performance metrics that would allow us 
to ensure the program meets the needs of small business owners.
    That is why I was glad to partner with Representative 
Houlahan earlier this month to introduce this bipartisan Women-
Owned Small Business Program Transparency Act. This legislation 
will require the Small Business Administration to annually 
disclose the total number of businesses that are certified as 
women-owned by the SBA, the number certified by third-party 
certifiers, and the fees charged by third-party certifiers, the 
dollar amount, and the percent of contracts to Women-Owned 
Small Businesses and the information on contracts incorrectly 
awarded. This is going to be essential in ensuring that we have 
transparency and that we can ensure that this program works 
effectively and efficiently for the small businesses and for 
taxpayers and the women who are out there putting their all in 
courageously trying to thrive as small business owners and 
entrepreneurs in our communities.
    With that, I want to again thank my cosponsor and also the 
Ranking Member and our Chairwoman for doing a great job in this 
markup and for bringing this important bill to the floor. I 
yield back.
    Chairwoman VELAZQUEZ. The gentlelady yields back.
    Are there any other Members who wish to be recognized for a 
statement on H.R. 7670?
    I now recognize the Ranking Member, Mr. Luetkemeyer.
    Mr. LUETKEMEYER. Thank you, Madam Chair.
    Part of our congressional duties and responsibilities is 
proper oversight of federal programs. H.R. 7670, the ``Women-
Owned Small Business Program Transparency Act'' will enhance 
and strengthen the oversight requirements of the SBA on 
important federal contracting programs. The more information 
that is at our disposal will lead to more efficient and 
effective policymaking.
    I want to thank Ms. Houlahan from Pennsylvania, and Ms. 
Tenney from New York, for working in a bipartisan manner to 
increase transparency within one of SBA's federal government 
contracting programs.
    With that, Madam Chairwoman, I want to thank you for 
working with me to advance this bill. I urge my colleagues to 
support this bill to ensure the SBA has a clear lens to view 
the Women-Owned Small Business Contracting Program. Thank you.
    Chairwoman VELAZQUEZ. The gentleman yields back.
    Now I recognize myself.
    Combatting the continuous barriers women entrepreneurs face 
in accessing federal contracts, I led Congress in creating the 
Women-Owned Small Business Contracting Program in 2000. The 
program has greatly improved since it was first implemented. 
However, there are a number of issues that require 
congressional oversight to ensure it is working as intended. 
For example, even though the program is supposed to help 
agencies in meeting the 5 percent women-owned small business 
goal, this goal has only been met twice despite it being 2022. 
The SBA just recently started providing formal certifications 
to program participants. While progress is being made, there is 
still a significant backlog of applications. In considering the 
GAO reports issued regularly on the program, Congress must keep 
an eye on program examinations and any contracts incorrectly 
awarded.
    H.R. 7670 requires SBA to provide Congress with the 
necessary data to oversee these matters and more. This bill 
furthers transparency and accountability by creating a 
reporting requirement for the Women-Owned Small Business 
Program. This is an issue we should never lose sight of.
    I thank Ms. Houlahan and Ms. Tenney for their bipartisan 
work on this bill, and I urge a yes vote.
    If there is no further discussion, the committee will move 
on to consideration of H.R. 7670.
    The clerk will report the bill.
    The CLERK. H.R. 7670, the Women-Owned Small Business 
Program----
    Chairwoman VELAZQUEZ. Without objection, H.R. 7670 is 
considered as read and open for amendment at any point.
    Does anyone seek recognition to offer an amendment?
    Seeing none, the question is now on H.R. 7670.
    All in favor say aye.
    All opposed say no.
    In the opinion of the Chair, the ayes have it and H.R. 7670 
is agreed to.
    The question now occurs on reporting H.R. 7670 favorably to 
the House.
    All those in favor say aye.
    All those opposed say no.
    In the opinion of the Chair, the ayes have it and H.R. 7670 
is reported to the House.
    Without objection, committee staff is authorized to correct 
punctuation and make other necessary technical corrections and 
conforming changes.
    Without objection, Members have 2 business days to file 
additional supplemental, dissenting, and minority views.
    H.R. 5879
    We will now consider H.R. 5879, the ``HUBZone Price 
Evaluation Preference Clarification Act of 2021,'' introduced 
by Ms. Newman and cosponsored by Ms. Salazar, the Ranking 
Member of the Subcommittee on Contracting and Infrastructure. 
This bill clarifies that the HUBZone Price Evaluation 
Preference applies to orders.
    Are there any other Members who wish to be recognized for a 
statement on H.R. 5879?
    I would now like to recognize the gentlewoman from 
Illinois, Ms. Newman, the sponsor of the bill for an opening 
statement.
    Ms. NEWMAN. Thank you, Madam Chair and Ranking Member 
Luetkemeyer.
    I rise in strong support of the bipartisan bill H.R. 5879, 
the ``HUBZone Price Evaluation Preference Clarification Act of 
2021.'' This legislation is designed to expand contracting 
opportunities to small businesses located historically in 
underutilized sectors. This bill would amend current trends to 
ensure more federal spending is devoted to SBA's HUBZone 
program, which could then be used to expand the number of 
federal and private contracting opportunities for local 
entrepreneurs and small businesses.
    The SBA's historically underutilized empowerment 
contracting programs, also known as the HUBZone program, is 
designed to provide small businesses located in low-income 
areas or with obstacles for high unemployment with contracting.
    Currently, the HUBZone price evaluation preference is not 
widely used because some agencies have incorrectly interpreted 
that the preference does not apply to order. As the federal 
government drives its spending through indefinite means a 
significant opportunity for HUBZone spending is being lost 
because the HUBZone price evaluation is not being applied to 
award awarders. This bill would clarify the program's 
evaluation language to ensure the federal government is driving 
its spending toward HUBZone small businesses.
    I urge that my colleagues support this bill and I yield 
back my time.
    Chairwoman VELAZQUEZ. The gentlelady yields back.
    Are there any other Members who wish to be recognized for a 
statement on H.R. 5879?
    I would now like to recognize the Ranking Member.
    Mr. LUETKEMEYER. Thank you, Madam Chair.
    I would like to thank you for bringing this bill forward 
and the sponsors of the bill, Ms. Newman from Illinois, and Ms. 
Salazar, the Ranking Member of the Subcommittee on Contracting 
and Infrastructure from the State of Florida.
    Further consolidation within the federal government's 
contracting space will continue to disadvantage the nation's 
smallest contractors. This bill takes an important step and 
ensures important HUBZone businesses have an opportunity to 
compete. It is critically important that we continue to examine 
this issue and propose solutions, like H.R. 5879, the ``HUBZone 
Price Evaluation Preference Clarification Act of 2021.''
    With that, I urge a yes vote, and I yield back the balance 
of my time.
    Chairwoman VELAZQUEZ. The gentleman yields back.
    Now I recognize myself briefly.
    The HUBZone program promotes economic development by 
providing small businesses located in distressed areas greater 
access to federal contracts. One of the main incentives of the 
program is the HUBZone Price Evaluation Preference which will 
help level the playing field when a HUBZone firm is competing 
against a large business for a federal contract. Unfortunately, 
this incentive is not widely used because some agencies have 
incorrectly interpreted regulations to mean that the price 
evaluation preference does not apply to orders. To eliminate 
any uncertainty, H.R. 5879 amends the Small Business Act to 
explicitly state that the price evaluation preference applies 
to orders. Doing so opened the doors to many more procurement 
opportunities for HUBZone firms, and therefore, paving the way 
for economic growth in their communities. Thanks to the devoted 
efforts of Congressmembers Newman and Salazar, there is a path 
to improve the HUBZone program and provide clarity to federal 
agencies seeking to hire small contractors. I urge a yes vote.
    If there is no further discussion, the Committee will move 
on to consideration of H.R. 5879.
    The clerk will report the bill.
    The CLERK. H.R. 5879, the HUBZone Price Evaluation----
    Chairwoman VELAZQUEZ. Without objection, H.R. 5879 is 
considered as read and open for amendment at any point.
    Does anyone seek recognition to offer an amendment?
    Seeing none, the question is now on H.R. 5879.
    All those in favor say aye.
    All those opposed say no.
    In the opinion of the Chair, the ayes have it and H.R. 5879 
is agreed to.
    The question now occurs on reporting H.R. 5879 favorably to 
the House.
    All those in favor say aye.
    All those opposed say no.
    In the opinion of the Chair, the ayes have it and H.R. 5879 
is reported to the House.
    Without objection, committee staff is authorized to correct 
punctuation and make other necessary technical corrections and 
conforming changes.
    Without objection, Members have 2 business days to file 
additional supplemental, dissenting, and minority views.
    H.R. 7694
    We will now take up the final bill on the agenda, H.R. 
7694, the ``Strengthening Subcontracting for Small Businesses 
Act of 2022,'' introduced by Mr. Stauber and cosponsored by Mr. 
Mfume, the Chair of the Subcommittee on Contracting and 
Infrastructure. This bill ensures that the past compliance with 
subcontracting plans is considered when determining an 
offeror's past performance.
    I would now like to recognize the gentleman from Minnesota, 
Mr. Stauber, the sponsor of the bill, for an opening statement.
    Mr. STAUBER. Thank you, Chairwoman Velazquez and Ranking 
Member Luetkemeyer.
    A common theme we have heard in the contracting space is 
that prime contracting opportunities for small businesses are 
dwindling at an alarming rate. This means that subcontracting 
opportunities are more important than ever for small business 
contractors. While large prime contractors are statutorily 
required to have subcontracting plans, there is little 
incentive for a prime contractor to comply with such plans. 
Further, there is no requirement that a contracting officer 
take into consideration a large prime contractor's performance 
in subcontracting with small businesses when deliberating new 
contract awards.
    While it is laudable that prime contractors have 
subcontracting plans, these plans seem to have minimal 
influence on a large prime contractor's motivation to award 
work to small business subs.
    My bill, the Strengthening Subcontracting for Small 
Businesses Act addresses this problem in a few ways. First, the 
legislation will require contracting officers to consider a 
contractor's proposed utilization of small businesses in its 
proposed subcontracting plan. Second, the legislation will 
require contracting officers to consider the contractor's past 
performance in meeting its previous subcontracting plans. In 
short, the bill creates a strong incentive for large prime 
contractors to comply with their own subcontracting plans since 
it will now impact their ability to win new work.
    I would like to thank my colleague, Congressman Mfume, for 
his collaboration on this bill, and together, I believe we have 
created meaningful legislation that will make a real and 
significant impact on the way small business contracting is 
conducted throughout the federal procurement environment.
    I urge my colleagues to support this legislation. Madam 
Chair, I yield back.
    Chairwoman VELAZQUEZ. The gentleman yields back.
    Now I would like to recognize the gentleman from Maryland, 
Mr. Mfume, for an opening statement.
    Mr. MFUME. Thank you very much, Madam Chair. Good morning. 
I want to thank you for calling this markup for today and for 
your leadership on small business issues over many, many years.
    At a time when many of those same small businesses are at 
risk of being pushed out of the federal procurement space due 
to forces that are outside of their control, it is imperative 
that we unite across the aisle to stand up for small business 
concerns and to help support and grow their presence in the 
small business federal contracting space.
    I am very pleased to have worked with Mr. Stauber, the 
distinguished gentleman from Minnesota, and with those Members 
of the Small Business Committee staff on this bipartisan, 
common-sense bill that protects small businesses by 
incentivizing large prime contractors to adhere to this 
contracting plan. This bill as you heard requires any agency 
that is considering proposals for contract to assess the extent 
to which an offer complied with its subcontracting plan in the 
past. By amending existing language of the Small Business Act 
and also by expanding its scope, the legislation will benefit 
contractors that interact with and treat small businesses in 
the right way. It will incentivize them to do the right thing, 
and it will strongly urge and encourage improvement by those 
contractors that have failed to properly include and protect 
small businesses.
    And so as such, I respectfully ask that my colleagues on 
the committee support H.R. 7694, the ``Strengthening 
Subcontracting for Small Businesses Act of 2022,'' and I yield 
back the remainder of my time. Thank you, Madam Chair.
    Chairwoman VELAZQUEZ. The gentleman yields back.
    Are there any other Members who wish to be recognized for a 
statement on H.R. 7694?
    I would now like to recognize the Ranking Member.
    Mr. LUETKEMEYER. Thank you, Madam Chair.
    I support H.R. 7694, the ``Strengthening Subcontracting for 
Small Businesses Act of 2022.'' While the government has 
certain requirements in place supporting small businesses 
subcontracting, we are missing a vital piece of this puzzle. 
Specifically, there is a lack of incentive among large prime 
contractors to use small businesses as subcontractors in the 
federal sphere in a way that promotes true and lasting 
behavioral change. I believe this bill gets us there and I urge 
my colleagues to support it.
    With that, Madam Chair, I yield back.
    Chairwoman VELAZQUEZ. The gentleman yields back.
    Now I briefly recognize myself.
    The Small Business Act seeks to promote opportunity for 
small contractors to participate in the federal procurement 
process, whether at the prime or subcontracting level. It 
requires offerors to submit subcontracting plans for contracts 
that have a certain threshold and will be awarded using 
negotiated procedures. The law ensures compliance with 
subcontracting requirements by allowing the imposition of 
liquidated damages if a contractor fails to engage in good 
faith efforts to meet them. Yet, this standard is ambiguous and 
not always enforced, resulting in contractors not facing any 
consequences for noncompliance. What most people do not 
understand is just how important subcontracting plans are for 
small firms. In many instances, they represent the only method 
to gain a foothold into the federal marketplace. That is why it 
is important that we keep looking for ways to encourage 
compliance. Thanks to the diligence of Mr. Stauber and Mr. 
Mfume, we have an important piece of legislation ensuring that 
previous compliance with subcontracting plans is considered 
when evaluating an offeror's past performance.
    I support this bill and I urge a yes vote.
    If there is no further discussion, the committee will move 
on to consideration of H.R. 7694.
    The clerk will report the bill.
    The CLERK. H.R. 7694, the Strengthening Subcontracting----
    Chairwoman VELAZQUEZ. Without objection, H.R. 7694 is 
considered as read and open for amendment at any point.
    Does anyone seek recognition to offer an amendment?
    Seeing none, the question is now on H.R. 7694.
    All in favor say aye.
    All those opposed say no.
    In the opinion of the Chair, the ayes have it and H.R. 7694 
is agreed to.
    The question now occurs on reporting H.R. 7694 favorably to 
the House.
    All those in favor say aye.
    All those opposed say no.
    In the opinion of the Chair, the ayes have it and H.R. 7694 
is reported to the House.
    Without objection, committee staff is authorized to correct 
punctuation and make other necessary technical corrections and 
conforming changes.
    Without objection, Members have 2 business days to file 
additional supplemental, dissenting, and minority views.
    My thanks to all the Members for their participation today. 
If there is no further business to come before the committee, 
without objection, this meeting is adjourned. Thank you.
    [Whereupon, at 11:14 a.m., the committee was adjourned.]
                            
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