[House Hearing, 118 Congress]
[From the U.S. Government Publishing Office]
MARKUP OF COMMITTEE'S BUDGET VIEWS AND ESTIMATES
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HEARING
BEFORE THE
COMMITTEE ON SMALL BUSINESS
UNITED STATES
HOUSE OF REPRESENTATIVES
ONE HUNDRED EIGHTEENTH CONGRESS
FIRST SESSION
__________
HEARING HELD
FEBRUARY 28, 2023
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Small Business Committee Document Number 118-003
Available via the GPO Website: www.govinfo.gov
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U.S. GOVERNMENT PUBLISHING OFFICE
51-409 WASHINGTON : 2023
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HOUSE COMMITTEE ON SMALL BUSINESS
ROGER WILLIAMS, Texas, Chairman
BLAINE LUETKEMEYER, Missouri
PETE STAUBER, Minnesota
DAN MEUSER, Pennsylvania
BETH VAN DUYNE, Texas
MARIA SALAZAR, Florida
TRACEY MANN, Kansas
JACK ELLZEY, Texas
MARC MOLINARO, New York
MARK ALFORD, Missouri
ELI CRANE, Arizona
AARON BEAN, Florida
WESLEY HUNT, Texas
NICK LALOTA, New York
NYDIA VELAZQUEZ, New York, Ranking Member
JARED GOLDEN, Maine
KWEISI MFUME, Maryland
DEAN PHILLIPS, Minnesota
GREG LANDSMAN, Ohio
MORGAN MCGARVEY, Kentucky
MARIE GLUESENKAMP PEREZ, Washington
HILLARY SCHOLTEN, Michigan
SHRI THANEDAR, Michigan
JUDY CHU, California
SHARICE DAVIDS, Kansas
CHRIS PAPPAS, New Hampshire
Ben Johnson, Majority Staff Director
Melissa Jung, Minority Staff Director
C O N T E N T S
OPENING STATEMENTS
Page
Hon. Roger Williams.............................................. 1
Hon. Nydia Velazquez............................................. 2
APPENDIX
Additional Material for the Record:
Majority Views and Estimates for Fiscal Year 2024 Budget
Resolution................................................. 5
Minority Views and Estimates for Fiscal Year 2024 Budget
Resolution................................................. 15
MARKUP OF COMMITTEE'S BUDGET VIEWS AND ESTIMATES
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TUESDAY, FEBRUARY 28, 2023
House of Representatives,
Committee on Small Business,
Washington, DC.
The Committee met, pursuant to call, at 9:47 a.m., in Room
2360, Rayburn House Office Building, Hon. Roger Williams
[Chairman of the Committee] presiding.
Present: Representatives Williams, Luetkemeyer, Stauber,
Meuser, Van Duyne, Mann, Ellzey, Molinaro, Alford, Bean, Hunt,
LaLota, Velazquez, Phillips, Landsman, McGarvey, Gluesenkamp
Perez, Scholten, Thanedar, Davids, and Pappas.
Chairman WILLIAMS. Good morning to everyone. I want to
thank everybody for being here. And I call the Committee on
Small Business Meeting to order. Without objection, the Chair
is authorized to declare the recess of this Committee at any
time. Today's first order of business is to consider the views
and estimates on the priorities of the Committee on Small
Business for fiscal year 2024. Then, we will then briefly
adjourn to re-set the room for our first hearing, which will
take place immediately following this meeting. I now recognize
myself to make an opening statement.
There is no question that our country relies on small
business. In fact, 99 percent of all U.S. businesses are small
businesses. We are a nation of creators, inventors, and risk
takers. Our economy was structured to be driven by
entrepreneurs. Most net job growth in this country comes from
small firms, yet we are hearing from small business owners back
home that they are struggling. In fact, after this mark-up, we
will hear from four of those small business owners, who will
educate us on the problems they face in today's economy.
Our goal, this Congress, is to pass meaningful reform to
lessen regulatory burdens and increase access to capital to
those who need it most. The last few years of overburdensome
regulations and inflation have brought many small businesses to
the breaking point. That is why last week Republican Members on
this Committee sent 25 letters to agencies, asking how they
were considering small businesses in their rulemaking process.
The Small Business Administration, over which we have
jurisdiction, has a vital role in helping small firms expand
and grow our economy. It is our job on this Committee to ensure
that the SBA's programs are working efficiently and effectively
to the benefit of all types of small business. We must censure
that this is a positive return on investment for the taxpayers.
The budget views and estimates presented today for this
upcoming fiscal year note that the SBA faces a significant
number of challenges. For instance, the emergency funding
programs from the pandemic quickly overwhelmed the SBA and were
subject to total fraud. In addition, as of May 2022, the SBA
had 44 outstanding recommendations for improvement from the
Government Accountability Office. The implementation of these
recommendations is vital to ensure the SBA fulfills its
mission, and we intend to oversee that effort.
Our views and estimates also commit to conducting oversight
over systematic failures in the SBA and promote legislative
changes that will ensure the right people have access to the
capital and acts and assistance they need to succeed.
So, with that, I yield to the distinguished Ranking Member,
Ms. Velazquez, for 5 minutes for any remarks she may wish to
make on the budget views and estimates.
Ms. VELAZQUEZ. Thank you, Mr. Chairman, for holding this
mark-up today on the Committee's views and estimates of the
Small Business Administration.
Let me begin by saying the economic progress we have made
over the past 2 years is undeniable. We have added more than 12
million new jobs, and more than 10.5 million people applied to
start a new business. This is in large part due to the policies
enacted by Democrats in the last Congress. More work needs to
be done, and I am committed to working with Chairman Williams
to make important budgetary decisions for SBA programs.
The submission of this document to the Budget Committee is
an important aspect of the Committee's work, and I am sure my
colleagues will agree that it would have been better to wait
until the President submits his proposed budget for FY 2024
next week. Having the agency's up-to-date information and
projections would enhance our recommendations to the Budget
Committee.
Our views and estimate letter focuses broadly on improving
programs and oversight at the Small Business Administration. We
agree with much of the Majority's views. For example,
recommending that SBA take steps to improve its capital access,
procurement, and entrepreneurial development programs is
prudent governance. Doing so advances SBA's mission to assist
small businesses and better protect taxpayers.
Another area of agreement is our commitment to conducting
vigorous oversight of lending rules to ensure they will
actually enhance the current program without causing harm to it
or the borrowers. Expanding lending to borrowers in underserved
markets is a top priority, and that is why Democrats support
codifying the Community Advantage Program, a proven program
that has been effective in reaching underserved borrowers.
Turning to SBA's disaster loans, which are the primary form
of federal assistance for both homeowners and small businesses,
we have seen multiple once-in-a-century weather events. We must
ensure sufficient funds are available to help Americans in
their times of need, just as we did during the pandemic, when
SBA delivered $390 billion to 4 million small businesses
through the COVID EIDL program.
SBA will need significant funding to service these loans
over the next 30 years. Federal funding for SBA entrepreneurial
development programs provide free or low-cost counseling and
training to more than a million entrepreneurs each year. The
Committee has worked in a bipartisan manner to reauthorize this
program and increase the levels of funding, which we continue
to support.
Similarly, SBA procurement programs maximize small business
participation in federal contracts, which in turn boosts
competition, lower prices, and expand our nation's supplier
base. Robust funding is imperative if we want to provide this
program with the personnel and resources needed to adequately
meet their intent.
Turning to the Regulatory Flexibility Act, we agree
agencies need to follow the process to reduce regulatory
burdens for small firms, but we oppose a blanket rejection of
regulations that safeguard health, safety, and environment.
We must proceed with thoughtful deliberation to tailor
regulations for small businesses and provide compliance
assistance. This agreement on agency priorities is not unusual,
and that is why Committee Democrats will be submitting
additional views and estimates to the Budget Committee.
SBA remains the government's best resource for small
businesses, be it capital access, counseling, or contracting
opportunities. The success of the economy depends on small
businesses leading the way, and the SBA is central to this.
I thank the Chairman again for holding this mark-up. I look
forward to working together in a bipartisan way to further
foster entrepreneurship.
Thank you. I yield back.
Chairman WILLIAMS. Thank you. Are there any other Members
who wish to be recognized for a statement on the views and
estimates on the priorities of the Committee for fiscal year
2024?
All right, seeing none, the Committee now moves to
consideration of the views and the estimates.
A copy of the proposed views and estimates has been
distributed to Members in advance. Without objection, the views
and estimates are considered read and open for amendment. Does
any Member seek recognition for the purpose of offering an
amendment?
All right, seeing no amendments, the question is on
adopting the views and estimates on the priorities on the
Committee for fiscal year 2024.
All those in favor, say, aye.
All opposed, say, no.
In the opinion of the Chair, the ayes have it, and the
views and estimates are agreed to.
The Ranking Member is now recognized for a motion.
Ms. VELAZQUEZ. Mr. Chairman, I would like to give notice,
pursuant to House Rule XI 2(l), that the Committee's Democrats
will be filing additional views with the Committee on the
Budget regarding SBA FY 2024 budget.
Thank you.
Chairman WILLIAMS. Without objection, so ordered.
Without objection, the staff is authorized to make
technical and conforming changes, and I would like to thank
everyone for participation today.
This meeting of the Committee on Small Business is
adjourned. Members, please stay seated, and we will bring the
witnesses up for the hearing today.
[Whereupon, at 9:57 a.m., the committee was adjourned.]
A P P E N D I X
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