[House Hearing, 118 Congress]
[From the U.S. Government Publishing Office]


                               MEMBER DAY
=======================================================================

                                HEARING

                               BEFORE THE

                      COMMITTEE ON SMALL BUSINESS
                             UNITED STATES
                        HOUSE OF REPRESENTATIVES

                    ONE HUNDRED EIGHTEENTH CONGRESS

                             FIRST SESSION

                               __________

                              HEARING HELD
                           NOVEMBER 30, 2023

                               __________

[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
                               

            Small Business Committee Document Number 118-032
             Available via the GPO Website: www.govinfo.gov
             
                               ________

                   U.S. GOVERNMENT PUBLISHING OFFICE                    
54-162                     WASHINGTON : 2024                    
          
-----------------------------------------------------------------------------------     
            
                   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
                           JAKE 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
Hon. Jill Tokuda, a Representative in Congress from the State of 
  Hawaii.........................................................     3
Hon. Ed Case, a Representative in Congress from the State of 
  Hawaii.........................................................     5
Hon. Jen Kiggans, a Representative in Congress from the State of 
  Virginia.......................................................     7
Hon. Blake Moore, a Representative in Congress from the State of 
  Utah...........................................................     9

                                APPENDIX

Prepared Statements:
    Hon. Jill Tokuda, a Representative in Congress from the State 
      of Hawaii..................................................    11
    Hon. Ed Case, a Representative in Congress from the State of 
      Hawaii.....................................................    14
    Hon. Jen Kiggans, a Representative in Congress from the State 
      of Virginia................................................    16
    Hon. Blake Moore, a Representative in Congress from the State 
      of Utah....................................................    18
Questions for the Record:
    None.
Answers for the Record:
    None.
Additional Material for the Record:
    Hon. Mark Alford Statement for Member Day on the VA's T4NG2 
      Contract...................................................    20

 
                              MEMBER DAY

                              ----------                              


                      THURSDAY, NOVEMBER 30, 2023

                  House of Representatives,
               Committee on Small Business,
                                                    Washington, DC.
    The Committee met, pursuant to call, at 10:02 a.m., in Room 
2360, Rayburn House Office Building, Hon. Roger Williams 
[chairman of the Committee] presiding.
    Present: Representatives Williams, Velazquez, Landsman, and 
Davids.
    Chairman WILLIAMS. Okay, before we get started I recognize 
myself to lead us in the Pledge and the prayer. Please stand.
    I pledge allegiance to the flag of the United States of 
America. And to the Republic for which it stands, one nation 
under God, indivisible, with liberty and justice for all.
    Bow your head, please.
    Heavenly Father, God of all people, thank you for allowing 
us to be here today to do things together as a team to make our 
country better and be open-minded about it. In Your name we 
pray. Amen.
    Good morning. I now call the Committee on Small Business to 
order.
    Without objection, the Chair is authorized to declare a 
recess of the Committee at any time.
    I now recognize myself for my opening statement.
    Welcome to today's House Committee on Small Business Member 
Day Hearing. I want to thank each of you who may not sit on 
this Committee for taking the time to come and share with us 
what you are hearing from small businesses in your districts. I 
think this is an excellent way for those of us on the Committee 
to broaden our understanding and hear about what is going on in 
different parts of the country. It is also beneficial to hear 
how different Members interact with small businesses in their 
districts.
    As I am sure we all have seen, America's entrepreneurs have 
had to confront historic challenges over the past few years--
the COVID-19, out of control inflation, broken supply chains, 
high interest rates, and a national labor shortage. But as 
small business have done countless times before, they endure.
    Here on the Committee on Small Business we are working to 
create an environment where businesses can thrive and survive, 
and we all know that small business owners dedicate their lives 
and finances to the products and services they bring to the 
marketplace. Every extra hour of paperwork is one less hour 
they can tend to their personal livelihoods; every inflated tax 
is an extra dollar that could have gone somewhere else; and 
every job vacancy is one more a small business owner must cover 
themselves.
    As we listen to the firsthand accounts, we salute the small 
businesses who continue to fight and give selflessly back to 
their communities, and we are eager to enact policies and 
solutions that will help pave a path toward success for both 
now in the future.
    That is why we are looking forward to our conversation 
today. There is always something we can learn and increasing 
the dialogue about small businesses between Members and it can 
only strengthen and broaden our collective experience in how to 
better serve our nation's biggest job creators.
    I want to thank you all for being here with us today. I 
look forward to today's conversation.
    With that, I yield to our distinguished Ranking Member from 
the great state of New York, Ms. Velazquez.
    Ms. VELAZQUEZ. Thank you, Mr. Chairman.
    Today is a chance for the Committee to hear directly from 
our fellow Members of Congress about their priorities for 
supporting programs and policies that promote small business 
creation and growth.
    Small businesses have experienced unprecedented challenges 
over the past few years. In 2020, the pandemic closed more 
small businesses than any other year on record. As the COVID 
crisis began to ease, many small businesses were then 
confronted with supply chain problems, staffing shortages, and 
rising costs.
    Despite all of these challenges, small employers have been 
the driving force behind our economic recovery from the 
pandemic. This is in part due to the bipartisan efforts of this 
Committee over the years which helped provide over $1 trillion 
in relief to small firms during a time of need.
    Today we continue to see the fruits of that historic 
investment. Since President Biden took office, Americans have 
filed a record 14.6 million applications to start businesses 
and recorded record job creation rates.
    At the same time, unemployment remains near historic lows, 
and more than 14 million jobs have been created since the start 
of 2021.
    As Members of Congress, it is our responsibility to help 
build on the progress small businesses have made and supply 
them with the resources they need to thrive. To do this we must 
have a keen understanding of the top challenges facing 
entrepreneurs back home in our district. I know that when we 
travel back to our districts, we are eager to hear from our 
local small business owners to understand what policies are 
working for them and what we can improve on.
    For the Members testifying here today, I know that you have 
been gathering feedback from main street businesses in your 
district. I look forward to your insights, and I appreciate you 
taking the time to be a voice for small business constituents 
today. This Committee's mission is to open the lucrative 
federal marketplace to entrepreneurs, strengthen capital 
markets for all small employers, and give small firms the tools 
they need to take care of their employees and build their 
companies.
    We do so while working together. Our Committee has a long 
history of bipartisanship because we all agree that small 
businesses truly are the backbone of our economy. They unify us 
in our work and hold our communities together. Today we have 
the chance to engage in an open dialogue on how we can 
collaborate to support small firms.
    Thank you again to all the Members for being here today. I 
look forward to our discussion.
    Thank you. I yield back.
    Chairman WILLIAMS. So before we continue I would like to 
take a moment to explain the rules of civil proceeding. That is 
like talking to the choir. I get it. But I do want to emphasize 
one thing about this Committee. We are a bipartisan Committee. 
We get a lot of things done together and so forth and we are 
proud of that.
    So each Member will be given 5 minutes to deliver their 
testimony and after they finish speaking we will briefly pause 
as we change the panel to accommodate the next Member.
    With that I would like to introduce our first Member, the 
Honorable Jill Tokuda from the great state of Hawaii. 
Representative Tokuda--am I saying that correctly?
    Ms. TOKUDA. Tokuda.
    Chairman WILLIAMS. Tokuda. I am from Texas remember. Okay. 
All right.
    The representative who represents Hawaii's Second 
Congressional District, which includes suburban Oahu and the 
remainder of the Hawaiian Islands, elected November of 2022 to 
serve in the 118th Congress. The representatives serves on the 
House Committee on Agriculture, the Committee on Armed 
Services, and the select Subcommittee on the Corona virus 
pandemic. So representative, it is nice to have you here. Thank 
you for taking the time to come see us and I recognize you for 
5 minutes.

  STATEMENT OF HON. JILL TOKUDA, A REPRESENTATIVE IN CONGRESS 
                    FROM THE STATE OF HAWAII

    Ms. TOKUDA. Thank you, Chairman Williams, Ranking Member 
Velazquez, and distinguished Members of the House Small 
Business Committee. Mahalo for the opportunity to testify 
before you today.
    Small businesses are the backbone of our economy in Hawaii. 
From tour operators to local foods that I know most of you have 
enjoyed, jewelry and clothing, product manufacturing and 
service providers, small businesses in Hawaii support their 
local communities through jobs and investments and have made 
Hawaii a leading destination for both business and tourism.
    I want to thank this Committee for its decisive action 
during the COVID-19 pandemic. Your work helped to save 
countless Hawaii small businesses from going under. You saved 
jobs.
    I am testifying before you today to ask for your help once 
again to respond to a historic crisis on Maui that is impacting 
our entire state.
    I am honored to represent Hawaii's Second Congressional 
District which spans all eight of our major Hawaiian islands, 
including the island of Maui which suffered considerable 
devastation and death from the August 8 fires, the deadliest 
wildfires in U.S. history in over a century. In just a single 
day, the Maui wildfires cause significant physical damage and 
emotional trauma that will be felt in Lahaina on Maui and 
throughout our entire state for generations to come.
    Lahaina was home to as many as 1,000 businesses, many of 
them small mom and pop, family owned and operated, many of them 
microbusinesses with nine employees or less. By some estimates, 
the catastrophic damage inflicted upon our Maui communities as 
a result of the fires has caused up to $6 billion in economic 
losses. According to state agencies, 40 percent of Maui's 
economy depended on tourism and visitor spending on Maui made 
up about 1/3 of total visitor spending in our state.
    Because of the fires, visitor numbers on Maui are at 
historic lows. From the latest monthly data, just over 94,000 
visitors coming to Maui in September of 2023. That volume 
represents a more than 57 percent drop from September of 2022.
    In addition to the physical damage from the fires, small 
businesses throughout Hawaii, especially Maui, are facing an 
economic crisis. In response, the Hawaii Small Business 
Administration and Small Business Development Centers have 
acted swiftly to provide resources and support to businesses in 
need, and I want to commend them for their responsiveness and 
their unwavering commitment to getting our business back on 
track.
    As of the end of October, the small business administration 
has served over 7,900 individuals and approved 1,219 disaster 
assistance loans for almost $200 million; 398 business loans 
totaling $59 million; and 821 loans for homeowners and renters 
totaling $140.9 million. While this assistance has been 
critical in helping residents rebuild and recover from the 
fires, too many businesses in my district are still, 
unfortunately, getting left behind from existing federal 
programs.
    Just as you recognize in the midst of the pandemic, 
supplemental programs are needed to meet the needs that arise 
from unprecedented disaster. I have heard from countless small 
business owners still recovering from the economic impact of 
the pandemic who cannot qualify for SBA assistance because of 
program capital requirements or could not take on more loans 
because they had existing debt from pandemic error programs. 
Over 4,700 EIDL loans totaling roughly $569 million were made 
to my county during the pandemic.
    Understanding the compounding financial impact COVID and 
the fire have had on our small business, I introduced the 
Microenterprise Assistance and Urgent Investment for Supporting 
Trade, Recovery Operations, and Neighborhood Growth, or the 
MAUI STRONG Act. This bill would help businesses reestablish 
themselves and provide an economic bridge to recovery by 
providing grants of up to $20,000 to nonprofits, small 
businesses with fewer than 25 employees, and independent 
contractors that expense revenue lost because of the fires. 
These funds would help cover a variety of expenses that come 
with rebuilding and restarting a business.
    In addition to the need for direct relief, changes to 
federal contracting laws would go a long way in supporting 
local businesses recovering from disaster. FEMA and the U.S. 
Army Corps of Engineers are to be commended for their swift 
action hiring local 8(a) Native Hawaiian Organizations to 
perform debris removal, construct a temporary school, and 
provide cultural oversight of operations in the burn zone and 
Lahaina. Native Hawaiian small businesses have repeatedly 
demonstrated their ability to do critical work across federal 
government and we should take the example of the fires to 
ensure Native Hawaiian businesses can receive 8(a) direct 
awards above the competitive threshold from all federal 
agencies, not just through the Department of Defense.
    My bill, H.R. 3830 would do just that, so that Native 
Hawaiian organizations have parity with Native America and 
Alaska Native owned businesses.
    Chairman Williams, Ranking Member Velazquez, our Small 
Business Committee Members, small businesses and entrepreneurs 
in Hawaii are emblematic of the hard working spirit that makes 
our nation so great. At this time of unprecedented disaster in 
my home state of Hawaii, Congress must do everything possible 
to support those who are struggling.
    I truly appreciate this opportunity to testify before you 
today and look forward to working with you to support our State 
of Hawaii. Mahalo.
    Chairman WILLIAMS. Well, thank you very much. And I would 
just like to say I have been to every state in the union but 
Hawaii. But just from your testimony we have a thing called the 
Texas spirit that we talk about all the time. And it sounds 
like you have got the Hawaii spirit.
    Thank you for being here.
    Now we will introduce our next Member, The Honorable Ed 
Case. Ed, thank you for being here from the great state of 
Hawaii. Is everybody from Hawaii here? Representative Case 
represents Hawaii's First Congressional District, which covers 
the urban portion of Oahu. Congressman Case previously 
represented Hawaii's Second Congressional District from 2002 to 
2007 after serving as a state representative from 1994 to 2002. 
His positions in the legislature included majority leader. 
Since returning to Congress in 2019, Representative Case has 
served on the House Committee on Appropriations where he is 
currently a Member of the Subcommittee on Defense and the 
Subcommittee on Homeland Security.
    Congressman Case, it is nice to have you here. Thank you 
for being here and I recognize you for 5 minutes.

 STATEMENT OF HON. ED CASE, A REPRESENTATIVE IN CONGRESS FROM 
                      THE STATE OF HAWAII

    Mr. CASE. Thank you so much Mr. Chair and Ranking Member. 
It is great to be back. You missed the most important part 
which is I was a former Member of this Committee during my--
yes, I did. So I have very good memories and have taken many, 
many lessons from my service on this Committee.
    I appreciate the opportunity to talk with you today. Like 
my colleague, Ms. Tokuda--and by the way, I endorse everything 
that she just said to you--I am on the bills that she referred 
to you. I am here to talk to you about Maui today and the 
specific devastating August 2023 Maui wildfires which had so 
much impact throughout our community but were particularly 
impactful on our small businesses.
    They were, as she has testified, one of the worst natural 
disasters in our country's history with significant death and 
displacement, burned areas throughout Lahaina in particular but 
not only Lahaina. And a particularly deep impact on our small 
businesses.
    Small businesses on Maui and businesses throughout Hawaii 
linked to Maui, have experienced what anybody would call a 
severe economic disruption following the fires. The State of 
Hawaii revised its statewide economic growth projections for 
2023 and 2024 downward from 1.8 percent to 1.1 percent for 2023 
and 2.0 to 1.5 percent in 2024.
    Far worst impacts on Maui, clearly just measured by initial 
unemployment claims as an example, which jumped from an average 
of 130 cases per week before the wildfire, 865 cases in the 
first week after to almost 5,000 in the second week after the 
fire. Unemployment went up to about 8.6-8.8 percent.
    This economic consequence of the fires is hitting our 
Hawaii small businesses hard. Still, they comprise the vast 
majority of our workforce and are the backbone of our economy. 
Hawaii is a state where small businesses is truly king. We have 
some 130,000 small businesses, and the average small business 
employs just 12 people. So it is a small, small business state. 
They already were recovering from COVID-19 but they find 
themselves particularly grappling with the aftermath of these 
recent wildfires.
    The SBA, as Ms. Tokuda has referred to, has responded 
admirably. They have approved almost 2,000 disaster loans, $243 
million of loans, and while this is commendable progress, it is 
very, very clear that much more needs to be done. And the 
existing programs are falling short. This is really something 
that we saw during COVID because when we went into COVID we 
discovered that the programs of the small business were not 
exactly adapted to the crisis that we were being faced with and 
we needed to modify those and we did. And I think that was 
successful.
    And so take that same theory and apply it to the Maui 
wildfires, which present their own microcosm of small business 
consequence and the need to actually adjust both our laws and 
our programs from the small business perspective to specify 
particular needs that are on Maui.
    I am going to, myself, soon be introducing what we refer to 
as the Heal Maui Act, which is a comprehensive legislative 
proposal designed to provide swift and meaningful and direct 
support to our small business and their specific conditions on 
Maui during these times.
    There are several key provisions that directly address 
these issues. First of all, they seek to augment the existing 
SBA Economic Injury Disaster EIDL Loan program.
    Second, they would establish a new loan program under the 
7(a) initiative to directly address the immediate financial 
challenges many businesses face in the aftermath of the 
wildfires.
    And finally, for those that have already taken out SBA 
disaster loans post-wildfire, my Heal Maui Act would offer a 
beacon of hope through loan cancellations where appropriate, 
recognizing the need to alleviate the weight of debt during 
these time when the businesses may not be able to open at all 
for a number of years. And therefore, we need to find some way 
to allow them to survive through a very difficult time of 
recovery.
    Again, this is not anything particularly new but what it 
does do is to take the lessons of our COVID-19 related 
refinements of the small business programs and continue them 
forward in another disaster which is every bit the same 
disaster as COVID-19 but with its own specific conditions that 
we need to adjust to.
    So I commend to you not only the legislation that Ms. 
Tokuda referred to, and not only the need to assist our small 
businesses in Maui but in particular as well the Heal Maui Act 
which I will soon introduce. And I ask for your favorable 
consideration when that ends up with the Committee.
    I appreciate your time. I appreciate your focus. I 
appreciate your effort. And Mahalo.
    Chairman WILLIAMS. What did you just say?
    Mr. CASE. Mahalo.
    Chairman WILLIAMS. Thank you.
    Mr. CASE. That is Texan for thank you.
    Chairman WILLIAMS. That is what I thought. That is what I 
thought I heard. But anyway, thank you for being here, too. And 
you have got a unique situation. I listened to your testimony. 
Adjustments, flexible, like we do in business anyway are needed 
and I think, you know, when you think about it, what your small 
business owners are going through, it is a real test of 
capitalism and entrepreneurship to begin to take something and 
start it all over again. And so we need to do what we can to 
make sure that happens. Thanks for being here.
    Mr. CASE. Thank you very much.
    Chairman WILLIAMS. Sure.
    I will now introduce our next Member, The Honorable Jen 
Kiggans, from the great state of Virginia. Representative 
Kiggans serves Virginia's Second Congressional District, which 
includes Virginia Beach, the Eastern Shore, and parts of 
Chesapeake and South Hampton. Representative Kiggans served 
three sessions in the Virginia State Senate before her election 
to the House, and prior to elected office, the Congresswoman 
served as a helicopter pilot in the U.S. Navy and worked as a 
geriatric nurse practitioner. Thank you for all of that. In the 
U.S. House, she sits on the Armed Services, Natural Resources, 
and Veterans Affairs Committee. So Congresswoman, thank you for 
being here, and you are recognized for 5 minutes.

  STATEMENT OF HON. JEN KIGGANS, A REPRESENTATIVE IN CONGRESS 
                   FROM THE STATE OF VIRGINIA

    Ms. KIGGANS. Thank you, Mr. Chair. Thank you for the 
Committee and for the warm welcome. I appreciate that.
    I have the honor of representing Virginia's Second 
Congressional District, which is home to one of the largest 
veteran populations in the country. So I appreciate the 
opportunity to be here today to discuss my Investing in Vets 
Act.
    Small businesses, as we know, are the cornerstone of the 
American economy. In fact, our country's entrepreneurs employ 
nearly half of all private sector workers and account for most 
new jobs created since 1995. Veterans who serve our country and 
are injured in the line of duty face tightened challenges 
during the already difficult transition from active duty 
service to civilian life.
    According to the Bureau of Labor Statistics, 27 percent of 
veterans have a service-connected disability. Following their 
service, many veterans use the invaluable professional and life 
skills they learned in the military to have successful careers 
across a wide array of industries.
    Starting, owning, and operating a small business, much like 
serving our country, requires hard work, determination, and 
sacrifice, which is why it is no surprise than many veterans 
have successes in these ventures. In fact, some of the most 
dynamic and successful businesses in my district are veteran 
owned.
    I am also very proud that as of 2017, our Commonwealth 
boasts nearly 13,000 veteran-owned small businesses. As you 
know, small businesses face many barriers to success, including 
competing for government contracts.
    My Investing in Vets Act weeks to fix this by increasing 
the federal contracting goal for service-disabled, veteran-
owned small businesses from 3 to 5 percent. My bill will help 
make small businesses more competitive when trying to secure 
federal contracting opportunities. Additionally, this bill 
would require these businesses to be certified by the Small 
Business Administration rather than the existing self-
certification process. This important step will reduce fraud 
and ensure that the benefits of this program are going to those 
it intends to help.
    This legislation will provide an important economic boost 
for our veteran-owned small business at a time when rising 
prices have wreaked havoc on our nation's entrepreneurs.
    Once again, thank you to Chairman Williams, Ranking Member 
Velazquez, and all the Members of the Small Business Committee 
for giving me the opportunity to testify on my bill today.
    Thank you, and I yield back.
    Chairman WILLIAMS. Thank you very much. And self-
certification is always something that is to be questioned in 
many cases; right?
    Well, thank you for being here, and thank you for your 
history now and what you have done in the past for our country. 
Thank you.
    All right, last but not least I would like to introduce the 
last Member appearing before us today, The Honorable Blake 
Moore from the great state of Utah. Representative Moore 
represents Utah's First District consisting of communities 
spread across northern Utah. Before being elected to Congress, 
Representative Moore was a small business owner himself in the 
healthcare and financial services industries. He has also had 
the honor of representing the United States abroad as a foreign 
services officer. After his election in 2021, he was honored to 
be selected as the first-ever Utah Republican on the Ways and 
Means Committee. Representative Moore was also elected to serve 
as Vice Chair of the House of Republican Conference earlier 
this month, and he is one of the great centerfielders of all-
time in the congressional baseball games.
    Mr. MOORE. That is what we were waiting for.
    Chairman WILLIAMS. So Congressman Moore, it is good to see 
you, and you are recognized for 5 minutes.

  STATEMENT OF HON. BLAKE MOORE, A REPRESENTATIVE IN CONGRESS 
                     FROM THE STATE OF UTAH

    Mr. MOORE. Thank you, Chairman. Thank you AKA Skipper. 
Ranking Member, also. My apologies in advance for all of the 
baseball references that you probably have to endure on this 
Committee. To all the Members of the Committee, thank you for 
allowing me the opportunity to testify you on the critical 
issues of this Committee's jurisdiction.
    My remarks are going to be grounded in two major concerns 
that I have for the future of our nation and that is 
maintaining and growing a strong middle class and the burden 
that we are going to have with respect to retirement on our 
younger generation.
    And so in that vein this is what this particular piece of 
legislation ultimately tries to accomplish. Now, it is 
important always for me to be thinking about the big picture 
and any type of legislation that we put forward needs to be 
concerned with, you know, what are some of our biggest 
challenges going forward. And again, a strong middle class with 
respect to alleviating the retirement burden that will exist on 
our next generation.
    With respect to small businesses, the State of Utah is the 
proud home of over 330,000 small businesses that employ more 
than 600,000 Utahans across a variety of industries and this 
work that this Committee does is vital.
    I want to speak briefly about a bipartisan and bicameral 
legislation that I am proud to co-lead. It is H.R. 3383, the 
Employee Equity Investment Act of 2023. I was joined by 
Representatives Dean Phillips, Dusty Johnson, and Krissy 
Houlahan in introducing this vital legislation that will 
support small business owners who aim to pursue employee-owned 
arrangements.
    The Senate companion was introduced by Senators Marco Rubio 
and Chris Van Hollen. And according to the most recent 
Department of Labor data there were nearly 6,500 companies with 
employee stock ownership plans (ESOPs) in the United States as 
of 2021, including 59 ESOPs with approximately 22,000 workers 
in my home state of Utah. So Utah-based ESOPs distributed more 
than $200 million to employee owners in 2021, bringing greater 
financial security to these Utah families. Again, strong middle 
class, allowing for individuals as they pursue their career to 
have equity ownership is, in my opinion, one of the best ways 
to continue to grow our middle class along with good pro-growth 
tax policy that I focus on on Ways and Means.
    Going forward, expanding these arrangements would be a good 
thing for workers and businesses alike. The Employee Equity 
Investment Act would do just that by leveraging the Small 
Business Administration's small business investment company to 
provide loan guarantees for investment funds committee to 
expanding employee ownership such as through ESOPs or worker 
cooperatives. These investment funds would provide financing 
for owners selling a company to their employee. While also 
helping maintain current employee-owned companies, it would 
achieve this on a no subsidy basis on behalf of the taxpayer.
    Access to the capital necessary for ESOP conversion has 
been a major barrier to establishing more employee-owned 
companies. This legislation will provide a meaningful 
opportunity to expand employee-owned structures, and as I have 
noted, this will benefit local economies.
    Research shows that ESOPs outperform competitors, create 
higher quality jobs that retain employees at a higher rate, 
provide greater job security for workers during economic 
downturns, and improve the retirement security of employee 
owners. As almost 50 percent of private businesses in the 
United States are owned by individuals approaching retirement 
age--again, 50 percent of private businesses in the United 
States are owned by individuals nearly going to retire, 
bolstering employee ownership could help prevent businesses 
from shuttering and keep economic activity in our local 
communities. In Utah, this so-called ``silver tsunami'' could 
affect 25,300 firms representing 280,000 employees and over $50 
billion in revenue.
    Lastly, we are proud that the Employee Equity Investment 
Act has the support of over 20 industries and community 
stakeholders.
    I look forward to working with the Members of this 
Committee to advance this important policy. And again, thank 
you both again for hosting this today and allowing for me to 
speak on this critical issue again that will strengthen the 
middle class and provide security for retirement for younger 
generations.
    Chairman WILLIAMS. Thank you, Congressman, for being here. 
I think you are right on. Being a business person myself it is 
always, as businesses get older, who do I pass it on to? And in 
most cases your employees, they are the best ones you have got 
in the business. They are your employees. They understand it. 
So thank you for that vision. I appreciate it very much.
    Are there any other Members who would like to be recognized 
by the Committee?
    Seeing no other comments, I would like to conclude by 
thanking all of you, the witness today, for taking time out of 
your busy schedule to be here on behalf of small business. Our 
Committee will keep your ideas at the top of our mind as we 
continue to address the issues that our nation's small 
businesses are facing.
    Members will have 5 legislative days to submit statements 
and supporting materials for the record.
    Without objection, so ordered.
    And I do want to, before we leave, say Happy Birthday to 
Ben Johnson. If you will all bear with me I am going to sing 
him Happy Birthday.
    This is your birthday song. It does not last too long. Hey! 
Happy Birthday.
    Finally, again, I would like to thank the Ranking Member 
and her team for making this Committee one of the best there 
is.
    And if there is no further business, this Committee is 
adjourned.
    [Whereupon, at 10:31 a.m., the committee was adjourned.]
                           
                           A P P E N D I X

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