[Senate Hearing 118-734]
[From the U.S. Government Publishing Office]
S. Hrg. 118-734
ENABLING RURAL BUSINESSES TO GROW AT
HOME WHILE COMPETING ABROAD
=======================================================================
HEARING
before the
SUBCOMMITTEE ON TOURISM, TRADE,
AND EXPORT PROMOTION
of the
COMMITTEE ON COMMERCE,
SCIENCE, AND TRANSPORTATION
UNITED STATES SENATE
ONE HUNDRED EIGHTEENTH CONGRESS
FIRST SESSION
__________
JULY 30, 2024
__________
Printed for the use of the Committee on Commerce, Science, and
Transportation
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Available online: http://www.govinfo.gov
______
U.S. GOVERNMENT PUBLISHING OFFICE
61-873 PDF WASHINGTON : 2025
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
ONE HUNDRED EIGHTEENTH CONGRESS
FIRST SESSION
MARIA CANTWELL, Washington, Chair
AMY KLOBUCHAR, Minnesota TED CRUZ, Texas, Ranking
BRIAN SCHATZ, Hawaii JOHN THUNE, South Dakota
EDWARD MARKEY, Massachusetts ROGER WICKER, Mississippi
GARY PETERS, Michigan DEB FISCHER, Nebraska
TAMMY BALDWIN, Wisconsin JERRY MORAN, Kansas
TAMMY DUCKWORTH, Illinois DAN SULLIVAN, Alaska
JON TESTER, Montana MARSHA BLACKBURN, Tennessee
KYRSTEN SINEMA, Arizona TODD YOUNG, Indiana
JACKY ROSEN, Nevada TED BUDD, North Carolina
BEN RAY LUJAN, New Mexico ERIC SCHMITT, Missouri
JOHN HICKENLOOPER, Colorado J. D. VANCE, Ohio
RAPHAEL WARNOCK, Georgia SHELLEY MOORE CAPITO, West
PETER WELCH, Vermont Virginia
CYNTHIA LUMMIS, Wyoming
Lila Harper Helms, Staff Director
Melissa Porter, Deputy Staff Director
Jonathan Hale, General Counsel
Brad Grantz, Republican Staff Director
Nicole Christus, Republican Deputy Staff Director
Liam McKenna, General Counsel
------
SUBCOMMITTEE ON TOURISM, TRADE, AND EXPORT PROMOTION
JACKY ROSEN, Nevada, Chair TED BUDD, North Carolina, Ranking
AMY KLOBUCHAR, Minnesota JOHN THUNE, South Dakota
TAMMY DUCKWORTH, Illinois MARSHA BLACKBURN, Tennessee
KYRSTEN SINEMA, Arizona SHELLEY MOORE CAPITO, West
JOHN HICKENLOOPER, Colorado Virginia
C O N T E N T S
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Page
Hearing held on July 30, 2024.................................... 1
Statement of Senator Rosen....................................... 1
Statement of Senator Budd........................................ 3
Statement of Senator Blackburn................................... 22
Statement of Senator Hickenlooper................................ 24
Statement of Senator Klobuchar................................... 26
Statement of Senator Welch....................................... 26
Witnesses
Reed C. Westcott, Senior Director of Government Affairs and
Federal Policy, National Small Business Association (NSBA)..... 4
Prepared statement........................................... 6
Dillon J. Davidson, Senior Trade Officer, Nevada Department of
Agriculture.................................................... 9
Prepared statement........................................... 11
Gary J. Salamido President and CEO, North Carolina Chamber of
Commerce....................................................... 13
Prepared statement........................................... 15
ENABLING RURAL BUSINESSES TO GROW AT
HOME WHILE COMPETING ABROAD
----------
TUESDAY, JULY 30, 2024
U.S. Senate,
Subcommittee on Tourism, Trade, and Export Promotion,
Committee on Commerce, Science, and Transportation,
Washington, DC.
The Subcommittee met, pursuant to notice, at 10 a.m. CST,
in room SR-253, Russell Senate Office Building, Hon. Jacky
Rosen, Chairman of the Subcommittee, presiding.
Present: Senators Rosen [presiding], Klobuchar,
Hickenlooper, Welch, Budd, and Blackburn.
OPENING STATEMENT OF HON. JACKY ROSEN,
U.S. SENATOR FROM NEVADA
Senator Rosen. Good morning, and welcome to today's hearing
of the Subcommittee on Tourism, Trade, and Export Promotion.
Today we will turn our attention specifically to the
important topic of exports. This morning's hearing, ``Enabling
Rural Businesses to Grow at Home While Competing Abroad,'' will
examine the current landscape for rural export businesses,
including the challenges they face when accessing international
markets and the Federal resources available to rural business
owners as they expand or start their export activities.
You know, exports, they are vital to our Nation's economic
prosperity. In 2021, exports of goods and services made up over
10 percent of the U.S. GDP and supported about 9 million
American jobs. International trade has similarly become an
increasingly important part, well, of Nevada's economy, my home
state, with the state exporting $10 billion worth of goods in
2022, along with supporting over 400,000 jobs. That is a lot of
jobs in a state of 3 million people, I will tell you that.
And so in Nevada we export everything from the goal we mine
to the alfalfa we grow to the lithium batteries for which
Nevada is fast becoming a world leader.
While exporting is a key driver of our national and state
economies, it can also serve as a catalyst for growth for many
businesses. Access to international markets enables businesses
to grow faster, create more jobs, pay higher wages, pay more
higher wages, more than non-exporting companies. It is really
important. And additionally, exporting can provide a buffer for
businesses during the fluctuations in the U.S. economy,
providing access to diverse revenue streams, reducing
dependence on the domestic market, and enabling them to stay in
business.
Small businesses, in particular, play a critical role in
our export ecosystem, as they represent over 97 percent of all
exporters nationwide, produce nearly a third of our export
value, and employ almost half of the country's private sector
workforce. And they also make up over 99 percent of all
businesses in Nevada--99.2 percent, to be exact.
Despite numerous benefits, many companies have not yet
fully capitalized on the opportunities providing by exporting.
Only one percent of American companies export, despite over 95
percent of the world's customers living outside our Nation's
borders.
The good news is the number of small and mid-sized
exporters is growing fast, and has risen threefold over the
last 20 years. These numbers are encouraging, especially
considering the high-cost environment facing our small
businesses today. However, we must ensure that businesses in
our rural communities are not left behind when policymakers
consider ways to expand export opportunities for small
businesses.
Our rural businesses are a hub for export potential, with
small businesses, farmers, ranchers, manufacturers, and others
exporting billions of goods every year across the agriculture,
energy, and manufacturing sector.
While there are clear benefits and growing opportunities
for businesses to begin exporting, rural businesses, well, they
often face unique challenges when looking to start or expand
their export operations. Access to capital is a primary
obstacle for many rural businesses, as there are often far
fewer banking institutions and financial resources available to
them in rural areas compared to larger cities. Given that
adequate financing for export businesses is particularly
critical due to the high cost of exporting, these capital
challenges are compounded for our rural export businesses.
Additionally, rural businesses often lack access to the
tools and resources that help them navigate the foreign
markets, either due to insufficient broadband access or
difficulty, again, finding resources that are located close to
home.
Due to these challenges, some rural businesses may need
additional support just to get started. In recent years,
agencies across the Federal Government have invested in
resources for rural export businesses, with the Department of
Commerce, the Office of United States Trade Representative, and
the Department of Agriculture, and so many others, providing
financing options and technical assistance to help businesses
tap into those international markets. These resources include
rural export centers, which provide customized research tools
and analysis to help rural businesses take advantage of new
investment opportunities and access new customers in markets
abroad. And I am thrilled to say that Nevada is home to the
West Rural Export Center, which is empowering business in
Nevada's rural communities to innovate and to grow through
exporting.
Nonetheless, we know that far more work is needed to
support rural businesses to take full advantage of our global
markets. Today's hearing is going to help us understand how
Congress and the Federal agencies, including the International
Trade Administration's U.S. Commercial Service, which this
Subcommittee oversees, can better empower rural export
businesses.
That is why I am so glad we have an excellent panel of
witnesses here today to help us do just that. We are privileged
to have joining us Mr. Reed Westcott, the Executive Director of
the Small Business Export Association; Mr. Dillon Davidson,
Vice Chair of the Nevada District Export Council; and Mr. Gary
Salamido, President and CEO of the North Carolina Chamber of
Commerce.
Thank you to all of our witnesses for being here today,
especially those who have traveled from out of state to
participate in person. I look forward to hearing each of you
share your experiences and expertise with us as discuss ways to
support our rural export businesses.
And I am going to turn it over to Ranking Member Budd for
his opening statement. Senator Budd.
STATEMENT OF HON. TED BUDD,
U.S. SENATOR FROM NORTH CAROLINA
Senator Budd. Thank you, Chair Rosen, and thank you to the
witness for being here.
You know, as someone who grew up and still lives in rural
North Carolina, I deeply appreciate the focus of this hearing.
Rural communities across our country are the primary drivers of
economic growth, and we rely on these hardworking folks each
and every day. It is the farmers, growers, and producers who
put food on America's tables. It is the small businesses who
employ millions of our workers. And it is the Main Street shops
and storefronts that enrich local communities by building trust
and reliability over the course of generations.
Bottom line, for America to succeed we need rural America
to succeed.
When it comes to government policy, my view has always been
that deregulation, coupled with a competitive tax system, holds
the key for economic growth. That approach empowers people and
gives them the freedom to take chances, to innovate, and to
live the American dream. I am proud to say that my state of
North Carolina has led the way in pursuing this agenda for
years. Our state has been recognized nationally as one of the
best in the country to do business in.
Now I am sure our friend, Mr. Salamido, will go into more
detail on this and brag on the Old North State, but I do not
want to steal any of his thunder.
But I will also say that without collaboration between
public officials, particularly the state legislature, which we
are so proud of, and private sector job creators, North
Carolina's success story would not be possible. I believe that
other states would do well to copy North Carolina's policy
victories so that they can achieve a similar level of success.
So again, thank you to you all for being here. Thank you,
Chair Rosen, and I look forward to a thoughtful conversation.
Senator Rosen. Wonderful. Well, thank you, Senator Budd.
And I would like to introduce our first witness today, Mr.
Reed Westcott. Mr. Westcott is the Executive Director of the
Small Business Exporters Association, which is the
international trade arm of the National Small Business
Association and the Nation's oldest and largest nonprofit
association representing small business exporters. In his
position, Mr. Westcott is responsible for leading the
development and implementation of the advocacy strategy for the
SBEA and the NSBA.
Mr. Westcott, thank you so much for being here today, and
thank you for your work on advocating for small export
businesses. I recognize you now for your opening statement.
STATEMENT OF REED C. WESTCOTT, SENIOR DIRECTOR OF
GOVERNMENT AFFAIRS AND FEDERAL POLICY, NATIONAL
SMALL BUSINESS ASSOCIATION (NSBA)
Mr. Westcott. Thank you, Madam Chair. Chair Rosen, Ranking
Member Budd, members of the Committee, thank you for holding
today's hearing on the experience of small and rural exporters
and for your ongoing commitment to pursuing policies which
ensure these businesses can compete and thrive in the global
marketplace.
My name is Reed Westcott, and as you mentioned I am the
Senior Director of Government Affairs and Federal Policy for
the National Small Business Association as well as Executive
Director for the Small Business Exporters Association, which is
a council of NSBA. Founded in 1937, NSBA is the oldest
nonprofit association representing small businesses, including
small exporters.
At NSBA we believe strongly in the role of American small
and midsized export, or SME, businesses in the international
marketplace. These companies expand the reach of American
products and services to global markets, increasing their sales
and revenue while supporting the economic growth of the Nation.
Small exporters also play a vital role in their
communities. They often source materials locally, support
regional supply chains, and contribute to the development of
ancillary industries. By engaging in international trade, these
businesses bring innovative and diverse cultural and business
practices back to their communities, fostering innovation and
broadening local perspectives. According to estimates from the
SBA, over 1.3 million small businesses are exporters,
representing 97 percent of all U.S. exporters. These small
businesses are directly responsible for over one-third of all
U.S. exports, and believed to be indirectly responsible for
even more. That amounts to $542 billion in known exports from
small businesses alone.
Small businesses also represent approximately 85 percent of
all businesses in rural areas and provide more than half of all
rural jobs. Small businesses are a central thread weaving the
fabric of small-town American Main Streets, from Nevada to
North Carolina and from Michigan to Alabama.
One example is a company called Air Tractor, which
manufactures aircraft in Olney, Texas. Air Tractor provides 400
high-quality jobs in this rural area that are largely dependent
on international sales. Their former CFO put it to me recently:
``I would certainly tout the advantages of exporting. The
process is not fast, but it pays huge dividends. There are
certainly impediments for rural small businesses to do exports,
but if one is persistent and seeks help the payoff is big.''
He notes that jobs have quadrupled since Air Tractor leaned
into exports, and that exports now make up 60 percent of their
overall business.
Importantly, this excitement over the potential benefits of
exporting is not simply anecdotal but is also borne out in the
data. In 2022, NSBA conducted a survey which showed that more
than half of currently non-exporting SMEs would be interesting
in selling goods and/or services to foreign customers if
barriers to entry could be addressed.
Forty-five percent of non-exporting small businesses
surveyed cite a lack of information and understanding of where
to begin as a primary barrier to selling goods and services
internationally, making it far and away the number one
obstacle. I frequently hear stories about difficulties
accessing the wealth of resources EXIM and others provide.
There is a valuable opportunity here for the Federal
Government to increase its outreach to SMEs by highlighting
resources available through ITA's Rural Export Centers,
possibly by utilizing existing community-based help centers,
such as SBDCs.
Interagency partnerships are also an ideal starting point
to increase the distribution of information and the uptick of
resources. A great example of this is S. 4764, the Bipartisan
Coordinated Support for Rural Small Businesses Act, introduced
by Senators Shaheen and Kennedy late last week. This bill
elevates the significance of the Office of Rural Affairs at SBA
by creating an assistant administrator and codifying the 2023
SBA and USDA MOU that helps ensure that entrepreneurs who have
a greater familiarity with one agency are able to access the
resources provided by both. Especially in rural areas, where
the varying market penetration of different Federal agencies
can create information gaps, this goes a long way.
Strengthening the dormant Office of Rural Affairs would
give the government a robust tool to better match Federal
programs with rural entrepreneurs. This underutilized office
has the capacity to become air traffic control for Federal
resources in rural areas, serving as a vital central hub for a
dizzying array of programs.
There are also significant hurdles in navigating complex
trade regimes, which often impose a heavy administrative and
financial burden. To take a first step toward tackling these
issues it is imperative that we work toward the harmonization
of trade rules. SMEs lack the resources to comply with complex
trade regulations, a burden borne far more easily by their
large counterparts. An effective harmonization regime can
significantly lower compliance costs, democratizing the export
space.
Looking beyond harmonization, small businesses would also
greatly benefit from trade deals that establish clear rules of
the road. These rules should be: (1) transparent and
accessible, offering clear guidelines on regulations, tariffs,
and procedures; (2) consistent and predictable to help
businesses plan their operations and investments; and (3)
include support mechanisms such as training, resources, and
assistance programs.
Additionally, financing is frequently a challenge,
particularly with traditional lenders who may view SMEs as
higher-risk ventures. Even for small companies who have secured
guaranteed EXIM financing for their products, it can be a
challenge to find downstream buyers for those guaranteed loans.
It is vital that as Congress examines potential legislation
governing financial institutions, markets, and products,
lawmakers consider the impacts on small companies' ability to
access the capital they need.
In conclusion, while small and rural exporters face
numerous challenges in entering global markets, we believe that
by streamlining the distribution of information on existing
Federal resources, simplifying and harmonizing trade rules, and
protecting access to capital, the Federal Government can ensure
these companies thrive.
On behalf of NSBA and SBEA, I would like to reiterate the
small business community's thanks to the Committee for its
attention to these issues, and I look forward to answering your
questions. Thank you.
[The prepared statement of Mr. Westcott follows:]
Prepared Statement of Reed C. Westcott, Senior Director of Government
Affairs and Federal Policy, National Small Business Association (NSBA)
Chair Rosen, Ranking Member Budd, Members of the Committee, thank
you for holding today's hearing on the experience of small and rural
exporters, and for your ongoing commitment to pursuing policies which
ensure these businesses can compete and thrive in the modern global
marketplace.
My name is Reed Westcott, and I am the Senior Director of
Government Affairs and Federal Policy for the National Small Business
Association (NSBA), as well as Executive Director of the Small Business
Exporters Association (SBEA), which is a council of NSBA.
Founded in 1937, NSBA is the oldest non-profit association
representing small businesses, including small exporters. NSBA's
founding predates not only other private sector advocates, but also the
establishment of many of our public-sector colleagues and partners,
including the Small Business Administration (SBA), the United States
Trade Representative (USTR), and several of the arms of the United
States Department of Commerce (Commerce). Our association comprises
more than 65,000 members which operate in virtually every Congressional
District across the country and U.S. territories.
At NSBA, we believe strongly in the role of American small and mid-
sized export (SME) businesses in the international marketplace. These
companies contribute significantly to the U.S. economy by expanding the
reach of American products and services to global markets, increasing
their own sales and revenue while also supporting the economic growth
of the Nation.
In addition to their broader economic contributions, small business
exporters play a vital role in their local communities. They often
source materials locally, support regional supply chains, and
contribute to the development of ancillary industries. By engaging in
international trade, these businesses bring innovative and diverse
cultural and business practices back to their communities, fostering
innovation and broadening local perspectives. As we at NSBA have seen
time and time again, the success of small business exporters can
transform local economies by increasing incomes, stimulating local
investment, and promoting regional development.
According to estimates from the SBA, over 1.3 million small
businesses are exporters, representing 97 percent of all U.S.
businesses that export. These small businesses are directly responsible
for over one-third of all U.S. exports, and believed to be indirectly
responsible for even more. That amounts to $542 billion in known
exports from small businesses alone.\1\
---------------------------------------------------------------------------
\1\ Radwanski, Amanda. ``Issue Brief: What Do We Know About Small
Businesses that Export?'' United States Small Business Administration
Office of Advocacy. https://advocacy.sba.gov/wp-content/uploads/2024/
03/Issue-Brief-No.-19-Small-Business-Exports.pdf.
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Small businesses also represent approximately 85 percent of all
businesses in rural areas, and provide more than half of all rural
jobs.\2\ Small businesses are a central thread weaving the fabric of
smalltown American Main Streets from Nevada to North Carolina, and from
Michigan to Alabama.
---------------------------------------------------------------------------
\2\ Wilmoth, Daniel. ``Small Business Facts: Small Businesses in
Rural Areas.'' United States Small Business Administration Office of
Advocacy. https://advocacy.sba.gov/wp-content/uploads/2023/08/Fact-
Sheet-Small-Business-in-Rural-Areas-508c.pdf.
---------------------------------------------------------------------------
One example is a company called Air Tractor, which manufactures
aircraft for agricultural use in Olney, Texas. Olney is a town of
around 3,000 people, and Air Tractor provides 400 high-quality jobs in
this rural area that are largely dependent on international sales.
David Ickert, their recently-retired longtime Chief Financial Officer
(CFO) put it to me recently:
``I would certainly tout the advantages of exporting. The
advantage can be summed up in one word: JOBS! As Air Tractor
exports have grown over the years, so have the jobs in Olney,
Texas. The process is not fast but it pays huge dividends. When
we became more involved in trying to do exports, our
international sales were approximately 10 percent of total
sales. That percentage has now grown to 60 percent. Jobs at Air
Tractor over this period (beginning in 1985) have increased
from 100 to 400. There are certainly impediments for rural
small businesses to do exports, but if one is persistent and
seeks help the payoff is big.''
Importantly, this excitement over the potential benefits of
exporting is not simply limited to anecdotal evidence but is also borne
out in the data. In 2022, NSBA conducted a survey in partnership with
the Export-Import Bank of the United States (EXIM), which showed that
more than half of currently non-exporting SME firms would be
interesting in selling goods and/or services to foreign customers if
their concerns over barriers to entry could be addressed.\3\
---------------------------------------------------------------------------
\3\ National Small Business Association. ``2022 Small Business
Exporting Survey: How Small Firms Do Business Globally.'' https://
www.nsba.biz/_files/ugd/601769_a4889edf202049b1bd3c
d1584f87b754.pdf.
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Exporters, and especially small exporters, face unique challenges
when compared to their purely domestic counterparts. Small exporters
must navigate an intricate and complex web of customs, legal, and other
requirements that can vary significantly from country to country; are
inherently disadvantaged when it comes to the scale and capital that is
typically required to service foreign markets; frequently struggle to
find appropriate and effective financing mechanisms for their specific
business models; and in general lack access to relevant information and
resources, among countless other barriers.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
According to the aforementioned research conducted by NSBA, 45
percent of non-exporting small businesses surveyed cite a lack of
information and understanding of where to begin as a primary barrier to
selling goods and services internationally--making it far and away the
number one obstacle studied (see Figure 1). In speaking with my
members, I frequently hear stories about difficulties small business
owners encounter in accessing the wealth of resources EXIM and others
provide. For those that were able to access resources, there have also
been concerns over the quality of information provided, with some of my
members expressing frustration at the often limited understanding of
export issues that small business mentors or even staff at their local
Small Business Development Center (SBDC) possess.
There is a valuable opportunity here for the Federal government to
increase its outreach to SMEs by highlighting the resources available
through the International Trade Administration's Rural Export Centers,
possibly by utilizing existing community-based help centers, such as
SBDCs.
Interagency partnerships are also an ideal starting point to
increase the distribution of information and uptake of resources by
rural entrepreneurs. A great example of this is S.4764, the bipartisan
Coordinated Support for Rural Small Businesses Act, introduced by
Senators Shaheen (D-NH) and Kennedy (R-LA) late last week. This bill
elevates the significance of the Office of Rural Affairs at SBA by
creating an Assistant Administrator position to oversee the Office's
work, and codifies the memorandum of understanding (MOU) signed by SBA
and the United States Department of Agriculture (USDA) in 2023. That
MOU helps ensure that entrepreneurs who have greater familiarity with--
or rely more heavily on--one agency over another are made aware of, and
able to access, the resources provided by both. Especially in rural
areas, where the varying market penetration of different Federal
agencies can create information gaps, this goes a long way to reaching
both budding and established business owners.
Moreover, strengthening the Office of Rural Affairs would give the
Federal government a robust tool to better match both new and existing
Federal programs and initiatives with rural entrepreneurs. The
Congressional Research Service noted recently that while the Office of
Rural Affairs was initially established by act of Congress in 1990, it,
``. . .appears to have been mostly dormant since.'' \4\ This
underutilized office has the capacity to become ``air traffic control''
for Federal small business resources in rural areas, serving as a vital
central hub for the dizzying array of programs available to rural
businesses.
---------------------------------------------------------------------------
\4\ Congressional Research Service. ``In Focus: SBA's Rural
Activities.'' https://crsreports
.congress.gov/product/pdf/IF/IF12639.
---------------------------------------------------------------------------
There are also significant hurdles for small exporters when it
comes to navigating complex trade regimes, which often impose a heavy
administrative and financial burden. The intricacies of international
trade laws, varying standards and regulations across different
countries, and the need to comply with multiple sets of rules can be
overwhelming for small businesses with limited resources. Tariff
barriers, customs procedures, and the constant threat of regulatory
changes add layers of complexity that can deter small businesses from
entering or expanding in global markets. Addressing these challenges
through streamlined regulations, clear guidelines, and supportive
financial programs is essential to unlocking the full potential of
small business exporters and ensuring their contribution to the economy
remains robust and dynamic.
To take a first step towards tackling these issues, it is
imperative that we work towards the harmonization of trade rules.
Harmonization would involve standardizing regulations and procedures
across different countries, making it easier for small businesses to
engage in international trade. These standardized rules would reduce
the complexity of compliance with differing regulatory regimes, making
it easier for small exporters to understand--and meet--international
requirements. SMEs lack the resources to comply with complex trade
regulations--costs which can include legal counsel, certification
processes, and modifications to existing products to meet foreign
standards, just to name a few--a burden borne far more easily by their
large counterparts. By minimizing the need for multiple certifications
and adjustments to meet varied standards, an effective harmonization
regime can significantly lower compliance costs for small businesses,
effectively democratizing the export space for all businesses who wish
to participate. The promulgation of clearer and more predictable rules
would further allow small business exporters to better compete on a
level playing field with larger companies, thus enabling them to expand
their market reach, grow their business, and reinvest in the
communities they serve back home. Finally, harmonized trade rules would
foster stronger trade relationships between countries, as businesses
would have greater confidence in the consistency and fairness of
international trade practices.
Looking beyond harmonization, small businesses would also greatly
benefit from trade deals that establish clear ``rules of the road.''
These rules should be:
1. Transparent and accessible, offering clear guidelines on
regulatory requirements, tariffs, and procedures;
2. Consistent and predictable so as to help businesses plan their
operations and investments;
3. Should include provisions for support mechanisms such as
training, resources, and assistance programs; and establish
effective and efficient dispute resolution mechanisms to
address any issues that arise and ensure fair treatment of
small businesses.
Additionally, as previously mentioned, securing the necessary
financing to support export activities is frequently a challenge. For
example, several NSBA members have cited access to capital as a primary
barrier, particularly in the context of traditional lending
institutions who may view SMEs as higher-risk ventures. Even for small
companies who have secured guaranteed EXIM financing for their
products, it can be a challenge to find downstream institutional buyers
for those guaranteed loans. It is vitally important that as Congress
examines potential legislation governing financial institutions,
markets, and products, lawmakers consider the impacts of financial
regulation on small companies' ability to access the capital they need.
In conclusion, while small and rural exporters face numerous
challenges in entering global markets, we believe that by streamlining
the distribution of information on existing Federal resources,
simplifying and harmonizing trade rules, and protecting access to
capital, the Federal government can ensure these companies thrive. On
behalf of NSBA and SBEA, I'd like to reiterate the small business
community's thanks to the Committee for its attention to these issues,
and I look forward to answering your questions.
Senator Rosen. Thank you, Mr. Westcott.
I would now like to introduce our next witness, Mr. Dillon
Davidson. Mr. Davidson is the Senior Trade Officer for the
Nevada Department of Agriculture, where he leads the
department's domestic and international trade programs and
economic data services. Mr. Davidson also serves as the Vice
Chair of the Nevada District Export Council, which offers
resources and assistance to Nevada businesses looking to start
or expand their export operations.
Thank you for traveling all the way from Reno, Nevada, to
be here with us today, and Mr. Davidson, I recognize you now
for your opening remarks.
STATEMENT OF DILLON J. DAVIDSON, SENIOR TRADE
OFFICER, NEVADA DEPARTMENT OF AGRICULTURE
Mr. Davidson. Good morning, Chairwoman Rosen, Ranking
Member Budd, and members of the Subcommittee. I am Dillon
Davidson, and while I serve as the Vice Chair for the Nevada
District Export Council, and President of the North American
Agricultural Marketing Officials, I am here in my capacity as
Senior Trade Officer for the Nevada Department of Agriculture.
From growing up on a tractor, to teaching advanced American
farming techniques to rural farmers in Africa while in college,
to now striving daily to expand Nevada's agricultural reach
into domestic and international markets. For over 5 years, I
have overseen food and agricultural marketing, trade, and
economic development in the state of Nevada. I am here today to
share my knowledge and experience on the impacts and challenges
of rural exporters.
Although Nevada is most known for its tourism, gaming, and
mining, Nevada's agriculture industries are important to the
state's overall economic culture. Outside of Nevada's three
urban counties, the remaining 14 counties make up approximately
87 percent of Nevada's land and have an average population of
2.5 people per square mile. This makes up the majority of the
geographical region of Nevada rural.
Agricultural land production dominates these rural areas.
In the state's desert climate and topography, the production of
onion, hay, and alfalfa flourish. Sixty-one percent of the
high-value alfalfa is exported outside of the United States.
But these companies successes do not come without hardship.
In 2023, Nevada exported a total of $9.53 billion worth of
goods to foreign markets, with major trade partners being
Canada, Mexico, Western Europe, and South Korea. Although
agriculture makes up a significant portion of Nevada's rural
export economy, mining and manufacturing sectors are also
significant contributors, with Nevada being a leader in the
lithium loop.
By opening one of nine U.S. Commercial Service Rural Export
Centers in the United States in Las Vegas, Nevada has
prioritized rural exporters in all areas, through partnerships
between key Federal and state agencies, including the
Governor's office, economic development, agriculture, and
business and industry.
As of December 2023, there are approximately 310,000 small
businesses, making up 99.2 percent of all businesses in the
state. These businesses employ 504,000 people, comprising 42.8
percent of Nevada's workforce. Of those 310,000 small
businesses, there are roughly 3,100 currently exporting.
In recent years, we have seen many rural producers face
significant challenges outside of general financial
constraints, including lack of expertise and resources,
transportation logistics, general foreign tariffs and trade
barriers, broadband connectivity issues, and most pressing in
Nevada, the decline of rural land due to continued growth of
urban populations. The combination of these obstructions is
impacting the ability for rural exports to enter or expand in
new and existing foreign markets.
Senator Rosen's support in 2021, on pursing the
Infrastructure Investment and Jobs Act, which has passed and
signed into law, is a step in the right direction to ensuring
that issues like broadband, airports, and roads, which are all
key components to rural producers, are maintained, repaired,
and expanded as needed.
Through Federal and state partnerships, we can address the
biggest challenges and concerns for rural Nevada exporters.
Through the state's participation in trade missions and trade
shows, we are promoting Nevada rural businesses and placing
them in front of international stakeholders with a minimal
impact to their operational cost.
Just recently, Nevada represented five food manufacturers
at the Seoul Food and Hotel trade show in Seoul, South Korea.
and had recent delegation visits to Nevada from Vietnam and
Japan, where international stakeholders had business meetings
with various Nevada rural producers. Funding programs like this
are what embodies the growth of the American economy through
the export of agricultural products to address the trade
imbalance and ensure American competitiveness in the current
and future economic landscape across all sectors of rural
America.
Opportunities like the State Trade Expansion Program,
Market Access Program, the Nevada Craft Beverage Passport, or
the Women's Farm2Food Accelerator Program, on both state and
Federal levels, allow us to tackle another concern of many
rural producers, which is the lack of infrastructure in these
regions.
The Nevada District Export Council also plays a major role
in assisting all Nevada exporters, especially rural exporters,
as they face continued challenges. The Nevada DEC has the
capacity to facilitate the development of an effective export
assistance network and can assist in coordinating the
implementation of trade assistance partners to leverage the
available resources necessary.
When companies partner with organizations like the state
and Federal agencies and the DEC, they are better prepared to
enter new markets or expand their existing markets around the
world.
Thank you for your time, and I look forward to your
questions.
[The prepared statement of Mr. Davidson follows:]
Prepared Statement of Dillon J. Davidson, Senior Trade Officer,
Nevada Department of Agriculture
Good morning, Chairwoman Rosen, Ranking Member Budd, and members of
the Subcommittee,
I am Dillon Davidson, and while I serve as Vice Chair for the
Nevada District Export Council and President for the North American
Agricultural Marketing Officials, I am here in my capacity as the
Senior Trade Officer for the Nevada Department of Agriculture.
From growing up on a tractor, to teaching advanced American farming
techniques to rural farmers in Africa in college, to now striving daily
to expand Nevada's agricultural reach into domestic and international
markets. For over five years, I have overseen food and agricultural
marketing, trade and economic development in the State of Nevada. I am
here today to share my knowledge and experience on the impacts and
challenges of rural exporters.
Although Nevada is most known for its tourism, gaming and mining,
Nevada's agriculture industries are important to the state's overall
economic culture. Outside of Nevada's urban counties of Clark, Washoe
and Carson City, the remaining 14 counties make up approximately 87
percent of Nevada's land and have an average population of 2.5 people
per square mile. This makes up the majority of the geographical region
of Nevada rural.
There are 2,372 family-owned farms or about 76 percent of all farms
in the state. There is limited export expertise of these family
businesses and there is a substantial opportunity for growth posed by
the assistance that is offered in growing foreign business
opportunities.
Agricultural land production dominates these rural areas. In the
state's desert climate and topography, the production of onion, hay and
alfalfa flourish. 61 percent of this high-value alfalfa is exported
outside of the United States, but these companies' successes do not
come without hardship.
I'd like to share the importance of export support straight from
one of Nevada's rural producers who works daily to overcome
infrastructure and climate challenges:
I quote Mark Menezes, owner of hay packer Menezes Brothers in
northern Nevada:
``I am a rural Nevada business working daily with other rural
producers purchasing their hay and alfalfa to be exported, and
we experience many challenges. The process of sending our
product to the Port of Oakland for international export is not
an easy task. I never know if there will be a shipping
container for our product, or if my trucks will be able to get
over the pass on I-80 due to the inclement winter weather.
Assistance from state and Federal agencies is critical to the
daily operation of my business and livelihood,'' Mark sums up
well the value our governmental resources add to small and
medium sized businesses across my state and the Nation. Their
business is no exception, I see the positive impact of these
programs daily.
In 2023, Nevada exported a total of $9.53 billion worth of goods to
foreign markets, with major trade partners being Canada, Mexico,
western Europe and South Korea. Although agriculture makes up a
significant portion of Nevada's rural export economy, the mining and
manufacturing sectors are also significant contributors.
When speaking with other rural industries, I would like to share a
quote from a mining company in Nevada:
``Nevada is endowed with tremendous natural resources and with
mining as the bedrock industry of our state, it is the main
driver of our rural economies. For example, Nevada Gold Mines--
a joint venture between global mining companies Barrick and
Newmont--alone pumped more than $3 billion into the economy in
2023, which included approximately $1 billion in high-paying
jobs for rural communities. Close collaboration between the
county, state, and Federal governments on policies and
regulations that protect our environment while allowing our
rural industries to thrive must be a priority for Congress and
the Administration''.
By opening one of nine U.S. Commercial Service Rural Export Centers
in the United States in Las Vegas, Nevada has prioritized rural
exporters in all areas through partnerships between Federal and state
agencies including, the Governor's Office of Economic Development, the
Nevada Small Business Development Center, the Nevada Department of
Agriculture, the Nevada Department of Business and Industry and local
economic development authorities.
As of December 2023, there are approximately 310,000 small
businesses, making up 99.2 percent of all businesses in the state.
These businesses employ 540,004 people, comprising 42.8 percent of
Nevada's workforce. Of those 310,000 small businesses, there are
roughly 3,144 currently exporting, which is a 5.1 percent decline from
2022.
In recent years, we have seen many rural producers face significant
challenges outside of general financial constraints, including lack of
expertise and resources, transportation logistics, general foreign
tariffs and trade barriers, broadband connectivity issues, and most
pressing in Nevada, the decline of rural land due to continued growth
of urban populations. The combination of these obstructions is
impacting the ability for rural exports to enter or expand in new or
existing foreign markets.
Senator Rosen's support in 2021 on pursing the `Infrastructure
Investment and Jobs Act' passed and signed into law, is a step in the
right direction to ensuring that issues like broadband, airports and
roads, which are all key components to rural producers, are maintained,
repaired or expanded as needed.
Through Federal and state partnerships, we can address the biggest
challenges and concerns for rural Nevada exporters. The current state
of the domestic and international economies makes rural exporters
uncertain of the future, and sometimes prevents them from trying to
enter the market. However, through the State's participation in trade
missions and trade shows, we are promoting Nevada rural businesses and
placing them in front of international stakeholders with minimal impact
on their operational costs.
Just recently, Nevada represented five food manufacturers at the
2024 Seoul Food & Hotel trade show in Seoul, South Korea and the recent
delegation visits to Nevada from Vietnam and Japan where international
stakeholders had business meetings with various Nevada rural producers.
Funding programs like this are what embodies the growth of the American
economy through the export of agricultural products to address the
trade imbalance and ensure American competitiveness in the current and
future economic landscape across all sectors of rural businesses.
Opportunities like the State Trade Expansion Program (STEP), Market
Access Program (MAP), Regional Agricultural Promotion Program (RAPP),
Nevada Craft Beverage Passport, or Women's Farm2Food Accelerator
Program on both state and Federal levels allow us to tackle another
concern of many rural producers, which is the lack of infrastructure in
these regions. Grant funded projects, both large-scale, such as
improving port and rail access; and smaller scale, such as packaging
costs, give new opportunities for rural businesses to compete with
larger corporations.
The Nevada District Export Council (DEC) also plays a major role in
assisting all Nevada exporters, especially rural exporters, as they
face continued challenges. As a leading organization serving the
international business community, the Nevada DEC has the capacity to
facilitate the development of an effective export assistance network
and can assist in coordinating the implementation of trade assistance
partners to leverage the available resources necessary.
In today's economy, it is the businesses that think and work
globally that will thrive. Sources show that businesses involved in
international trade outperform those that rely solely on domestic
markets. Specifically, agricultural producers and manufacturers that
export, on average, receive a higher revenue stream from sales than
those that do not. When companies partner with organizations like the
state and Federal agencies and the DEC, they are better prepared to
enter new markets or expand their existing markets around the world.
Thank you for your time and I look forward to your questions.
Senator Rosen. Thank you, Mr. Davidson. I would now like to
turn it over to Ranking Member Budd to introduce our last
witness.
Senator Budd. Thank you, Chair, and I am pleased to
introduce our witness, Mr. Gary Salamido. Mr. Salamido serves
as the President and CEO of the North Carolina Chamber, where
he has been a steadfast advocate for business growth and
economic development throughout our state. His extensive
experience and deep understanding of the issues rural
businesses face make him a valuable asset to today's
discussion.
Mr. Salamido, thank you for being here today and for your
ongoing commitment to support our rural communities and their
export efforts. We look forward to your testimony and to a
productive discussion about how to strengthen our support for
rural export businesses.
STATEMENT OF GARY J. SALAMIDO PRESIDENT AND CEO,
NORTH CAROLINA CHAMBER OF COMMERCE
Mr. Salamido. Thank you, Chair Rosen, Ranking Member Budd,
and members of the Subcommittee. Thank you for the opportunity
to offer testimony today on behalf of the North Carolina
business community.
We are a manufacturing-heavy state with affordable,
reliable energy, right-to-work status, and a competitive tax
climate. While we see growth in our urban counties daily, we
are seeing jobs announcements in the rural and suburban areas
surrounding our major population centers as business looks for
land required to build significant operations.
North Carolina's business community and policymakers have
worked hard to submit our position as a competitive state for
business, nationally and globally. We take great pride in our
diverse economy and our private sector job growth.
Reaching this competitive position for North Carolina was
intentional. The leadership of North Carolina's dynamic
business community charged the NC Chamber with creating and
executing a plan for North Carolina that is focused on
education and talent supply, a competitive business climate,
and infrastructure and growth investment. The plans worked, but
we cannot be complacent, if we want to remain competitive and
on top, both nationally and globally.
To help our rural businesses access international markets,
the need an available and qualified workforce. Unfortunately,
many rural areas in our state are experiencing population
decline, and birth rates are not keeping up. Our members have
ranked workforce availability as the number one issue impacting
business for nine years in a row. Federal, state, and local
policies that alleviate the cost of living, enable workforce
participation, improve quality of life, and grow talent pools
are crucial.
Key issues holding our workforce back include: housing,
childcare, transportation, and thoughtful criminal justice
reform. Forward-looking investments in rural areas that
reinforce a sense of place and belonging are essential, and
employment-based immigration is a necessary tool.
Aligning our education systems and business needs is a
critical opportunity for North Carolinians. One of the best
ways to achieve this is by creating a demand-driven workforce
system that is genuinely employer-led, leveraging the U.S.
Chamber Talent Pipeline Management framework.
In many of North Carolina's rural communities, agriculture
plays a foundational role in the economy, in addition to the
essential role that North Carolina plays in the national food
security.
With that in mind, the Golden LEAF Foundation and the North
Carolina Chamber Foundation, in partnership with the North
Carolina Farm Bureau, are championing NC Ag Leads, a strategic
planning effort for North Carolina agriculture, an over $110
billion industry in North Carolina.
Over the last 6 months, NC Ag Leads team traveled the state
to facilitate 23 focus groups, reaching 68 counties, and more
than 340 members of North Carolina's agriculture industry. This
discernment phase identified opportunities and threats to the
talent pipeline, land competition, market access, generational
concerns, and farm support systems.
Today the biggest challenge to rural business growth is
adequate infrastructure. The message is echoed across North
Carolina's business community, no matter the size, location, or
industry of the business.
Cold chain has been a focus for the North Carolina ports,
and they are working to make transporting refrigerated cargo
faster and more efficient than ever. These capabilities have
broad-reaching significance.
Given North Carolina's significant grocery sector footprint
and the perishable import distribution systems that service
this growing demand, NC Ports, North Carolina's ports, serves
an ideal gateway for the U.S. and East Coast locations. This
saves businesses time, money, and distance in reaching
consumers. It also creates an opportunity for rural small
businesses to serve these critical supply chains.
Many North Carolina farmers have figured out that we cannot
have exports without imports. The family farms and
multinationals that are producing traditional seasonal crops
have been able to leverage their infrastructure to partner with
other companies to bring in produce, package it, and sustain a
12-month operation that keeps workers attached.
Cold chain capabilities have implications beyond food. The
life sciences industry sees opportunities to increase volume by
shifting from air to sea transport. This could be a key piece
of expanding our pharmaceutical footprint.
For our state's businesses to be competitive trading
partners, we must provide them with a level playing field,
which includes combatting bad actors that circumvent fair trade
and U.S. trade restrictions.
The success of North Carolina's infrastructure and
workforce systems, poised for growth, can be attributed to the
strong business climate on which they are built. North
Carolina's success has been made possible, and will continue to
grow through the commitment of our statewide business community
with a clear vision, and state and Federal leaders willing to
act on it.
Thank you for your time today and for your leadership, and
we look forward to the discussion.
[The prepared statement of Mr. Salamido follows:]
Prepared Statement of Gary J. Salamido President and CEO,
North Carolina Chamber of Commerce
Introduction
Chair Cantwell, Ranking Member Cruz, Subcommittee Chair Rosen,
Ranking Member Budd, and Members of the Committee, thank you for the
opportunity to offer testimony on behalf of the business community of
North Carolina today.
North Carolina's economy was long known for tobacco, textiles, and
furniture. We have been able to take our past strengths and create an
environment for them to evolve into different opportunities in
technology, pharmaceuticals, financial services, food processing, and
vehicle parts. In the financial sector, Charlotte became the second-
largest banking center by income in the country by the end of the
twentieth century. Deregulation in banking positioned North Carolina
for a robust expansion of an already important industry.\1\
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\1\ https://uncpress.org/book/9781469635729/north-carolina-beyond-
the-connected-age/
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We are a manufacturing-heavy state with affordable, reliable
energy, a right-to-work status, and competitive tax climate. While we
see growth in our urban counties daily, we are seeing jobs
announcements in the rural and suburban areas surrounding our major
population centers as businesses look for the land required to build
significant manufacturing operations.
According to the U.S. Small Business Administration, North Carolina
is home to one million small businesses employing 1.8 million North
Carolinians. Small businesses represent 99.6 percent of North Carolina
businesses, and their employees are almost 45 percent of our state's
workforce.\2\
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\2\ https://advocacy.sba.gov/wp-content/uploads/2023/11/2023-Small-
Business-Economic-Profile-NC.pdf
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With a $111 billion annual contribution to our state's economy,
agriculture helps drive a major share of North Carolina's economic
success--representing one-sixth of our state's overall income.\3\ It is
a powerhouse industry that continues to be a major employer for the
state, providing jobs to 16 percent of employees in North Carolina.
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\3\ https://cals.ncsu.edu/agricultural-and-resource-economics/wp-
content/uploads/sites/46/2017/07/AgricultureAgribusinessReport-2023-
digital.pdf
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Our quality of life, bolstered by easy access to our mountains and
coastline, a temperate climate, and low cost living only add to the
reasons employers and their employees want to invest in North Carolina.
A Top State for Business
For a number of years now, North Carolina has been recognized as a
top state for business.\4\ That recognition is possible because of a
deep commitment to understanding and prioritizing the dignity of work.
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\4\ https://ncchamber.com/nc-competitive-accolades/
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Our members understand this deeply. Providing a person with a job
connects them with better health outcomes, gives them a sense of
purpose and pride, and leads to increased engagement and investment in
their local community.
North Carolina's business community and policymakers have worked
hard to cement our position as a competitive state for business,
nationally and globally. We take great pride in our diverse economy and
private-sector job growth.
Reaching this competitive position was intentional. The leadership
of North Carolina's dynamic business community charged the NC Chamber
with creating and executing a plan for North Carolina that is focused
on education and talent supply, a competitive business climate, and
infrastructure and growth.
That plan has worked but we know that we cannot be complacent if we
want to remain competitive nationally and globally. Our state has
experienced frequent and consistent growth, and we must continue to
prioritize the policy work that made us competitive for those
investments.
Identifying Threats and Opportunities
North Carolina boasts a robust manufacturing base, but this
strength must not be taken for granted. To help rural businesses access
international markets, they need an available and qualified workforce.
Unfortunately, many rural areas in our state are experiencing
population decline, and birth rates aren't keeping up.
Our members have ranked workforce availability as the number-one
issue impacting their business for nine years in a row. Federal, state,
and local policies that alleviate the cost of living, enable workforce
participation, improve quality of life, and grow talent pools are
crucial. Key issues holding our workforce back include housing, child
care, transportation, and thoughtful criminal justice reform. Forward-
looking investments in rural areas that reinforce a sense of place and
belonging are essential, and employment-based immigration is a
necessary tool.
Aligning our education systems with business needs is a critical
opportunity for our state's residents and citizens. One of the best
ways to achieve this is by creating a demand-driven workforce system
that is genuinely employer-led, leveraging the U.S. Chamber
Foundation's Talent Pipeline Management framework.
Addressing these issues and supporting growth across all
industries, particularly those that ensure a high quality of life for
all North Carolinians, will yield tremendous opportunity for our state.
In many of North Carolina's rural communities, agriculture plays an
outsized role in the economy, in addition to the essential role that
North Carolina agriculture plays in national food security.
With that in mind, The Golden LEAF Foundation and the NC Chamber
Foundation, in partnership with North Carolina Farm Bureau and Google,
are championing NC Ag Leads, a strategic planning effort for North
Carolina agriculture to promote the industry's continued growth and to
help the industry address the challenges it faces.
Over the last six months, the NC Ag Leads team traveled the state
to facilitate 23 focus groups, reaching 68 counties and more than 340
members of North Carolina's agriculture industry. This discernment
phase identified opportunities and threats, as well as the following
key themes.
Talent Pipeline: Workforce continues to be a top concern across
industries and agriculture is no different. There is a
tremendous appetite for workers at all points of the
agriculture supply chain. A shortage of workers in our fields,
repair shops, labs, and research institutions is impacting both
production and productivity across the industry. While
technology is being leveraged to address this problem, the
reality is even more people are needed to work on the
development, deployment, and maintenance of technology in
agriculture.
Land Competition: North Carolina is the third-fastest growing
state in the country, and competition for land is fierce and
expected to increase. Development pressure is driving up the
cost of land and impeding the ability to use property freely.
Policies limiting the ease of growth inside our cities
contribute to the problem as it is often easier to build in
rural areas than inside municipal limits.
Market Access: Producers are increasingly concerned about how
to get what they are producing to the consumer. Aggregation,
processing, and distribution are constant bottlenecks,
especially for smaller producers, and while cold-storage
infrastructure is growing, more is still needed, making
distribution of perishable products challenging.
Generational Concerns: North Carolina is facing an aging
farming population and many farm operations will change hands
in the next 10 to 15 years. Additionally, the agriculture
industry must adapt to the changing preference of the next
generation of consumers. North Carolina already has programs
that can be used to address generational concerns, but we must
make these systems more effective.
Farm Support Systems: Representatives across the agriculture
industry raised consistent concerns about unresponsive and
overregulated farm support systems. While the programs and
efforts are well-intentioned, farmers noted they do not always
produce the support promised.
Infrastructure emerges in several of these key themes. Today, the
biggest challenge to rural business growth is adequate infrastructure.
Investment in Infrastructure is the Key to Competitiveness
A focus on infrastructure is not unique to agriculture. This
message is echoed across North Carolina's business community, no matter
the size, location, or industry of the business. North Carolina's
businesses increasingly work to find the most efficient way to bring
goods to market.
North Carolina Ports recognize the opportunity our state has to
lead, and they have made significant investments to help businesses
capitalize on ideal distribution channels, including water, interstate,
and rail. The Port of Wilmington boasts the fastest turn times and one
of the highest crane productivity rates on the East Coast.
Cold chain has been a focus for the North Carolina Ports and they
are working to make transporting refrigerated cargo faster and more
cost-efficient than ever. With the recent completion of Phase 2 of its
refrigerated container yard, NC Ports now offers more than 1,500 reefer
plugs with the ability to increase that number as they expand the Port
of Wilmington's container terminal.\5\
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\5\ https://ncports.com/port-capabilities/refrigerated-cargo/
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There has been meaningful industry investment and substantial
growth around the ports that will be instrumental in increasing volumes
through our ports. Near the Port of Wilmington, more than one million
square feet of new cold storage space is set to come online soon.
These capabilities have broad reaching significance. As one of the
Nation's fastest growing states, North Carolina sees a rising demand
for year-round access to fruits, vegetables, and proteins. We are now
strategically positioned to meet this demand while supporting the
continued growth in the export market for our region's pork, poultry,
fruits, vegetables, and specialty crops.
Given North Carolina's significant grocery sector footprint, and
the perishable import distribution that service this growing demand, NC
Ports serves as an ideal gateway for central U.S. and east coast
locations. This saves businesses time, money, and distance in reaching
consumers.
Many North Carolina farmers have figured out that we cannot have
exports without imports. The family farms and multinationals that are
producing traditional, seasonal crops have been able to leverage their
infrastructure to partner with other companies to bring in produce,
package it, and sustain a 12-month operation that keeps workers
attached.
Cold-chain capabilities have implications beyond food. The life
sciences industry sees advantages to shifting from air to sea
transport. While planes have more restrictions on space, ships allow
the product to be containerized and moved at a higher volume. This
could be a key piece of expanding our pharmaceutical footprint.
Rail is another essential tool and addressing freight rail
infrastructure needs and prioritizing collaborative partnerships is a
critical component in advancing North Carolina's economic prosperity.
The North Carolina Railroad Company (NCRR) has been instrumental in
securing new and expanded locations for multiple manufacturing
facilities across North Carolina. Overall, NCRR has committed more than
$18 million of its private revenue, resulting in new or expanded
locations for 18 manufacturing facilities and supporting the creation
of over 14,400 new jobs.\6\
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\6\ https://ncrr.com/economic-impact/ncrr-invests/
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The availability of sites is another key piece to keeping our state
competitive. Oftentimes companies do not have the time or budget to
wait for municipalities to create infrastructure improvements. NCRR's
Build Ready Sites initiative provides essential funding and support to
rail-served sites, transforming them into ``build-ready'' spaces primed
for attracting new businesses. The program eliminates common roadblocks
to advancement by ensuring the availability of sites that are ready for
immediate development, significantly reducing the time and resources
required for new business setups. By addressing these foundational
needs, NCRR empowers communities to proactively attract new businesses,
create jobs, and bolster local economies. To date NCRR has committed
more than $8.3 million to 17 sites in 14 counties across North
Carolina.\7\
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\7\ https://ncrr.com/economic-impact/build-ready-sites/
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Built on a Strong Foundation
The success of North Carolina's infrastructure and workforce
systems, poised for growth, can be attributed to the strong business
climate on which they are built. The overall business atmosphere and
cost of doing business are essential to job growth.
We will continue to protect competitive aspects of our legal
climate, such as contributory negligence, our workers' compensation
system, medical malpractice reform and others, while also advancing
reforms that reestablish North Carolina's position as a top-10 state
for legal business climate. We will act swiftly on harmful practices
such as third-party litigation investment and proposals that would
relax our statutes of repose and product liability limitations.
North Carolina leads the Nation with one of the broadest-based and
most competitive tax structures for business and individuals of all
income levels, while maintaining reliable and stable revenues. We
continue to advance tax modernization efforts that further improve
North Carolina's overall business climate by streamlining burdensome
regulations, ensuring fair tax administration, improving outdated
systems, and simplifying complicated policies.
To be as competitive as possible in attracting new companies and
enhancing the economic prospects of all North Carolinians, we will
advocate to protect North Carolina's right-to-work statute and ensure
every person in North Carolina can pursue gainful employment without
the requirement to join a union or pay union dues.
When it comes to trade, we will continue to look to our Federal
delegation and our Federal partners to revive Miscellaneous Tariff
Bills to provide import duty relief on manufacturing inputs that are
not made in America and consider how to close the De Minimis Rule
loophole. Most importantly, for our state's businesses to be
competitive trading partners, we must provide them with a level playing
field, which includes combatting bad actors that circumvent fair trade
and U.S. trade restrictions.
North Carolina's success has been made possible--and will continue
to grow--through the commitment of our statewide business community
with a clear vision, and state and Federal leaders willing to act on
it.
Thank you for your time today and for your leadership on this
issue.
Senator Rosen. Well, thank you so much, all three of our
witnesses, for their opening statements.
I just want to say I also sit on the Small Business and
Entrepreneurship Committee, so that is a good intersection for
this Subcommittee and the testimony and things that you are
going to tell us about. The opportunities and the challenge
that you have all alluded to today really will help us improve,
help me improve the legislation that we can put forward for
both committees. So thank you.
And we are going to talk about the export barriers to entry
first, because exporting can be hugely beneficial to a small
business' bottom line, overall success. On average, companies
that export earn higher revenues, which can be used to reinvest
in their employees, create new jobs, pay higher wages. And
given the important role that rural small businesses play as
the economic backbone of our local communities, including in
Nevada, it is critical that businesses in our rural areas are
able to benefit from robust export operation.
Unfortunately, only one percent of American small
businesses export, and this has really created missed
opportunities for small businesses to generate those jobs and
economic growth in communities that really would rely on them.
So to all three witnesses, if you want to say what you
think the biggest barriers to entry for exporting our rural
small businesses are and what Federal resources exist to help
overcome the challenges, or what resources do you need to help
overcome the challenges? We want to be sure that our rural
businesses have the tools they need to get there.
So let's begin with Mr. Davidson, and then we will go to
Mr. Salamido, and then to Mr. Westcott. Mr. Davidson, please.
Mr. Davidson. Thank you, Chairwoman. For Nevada rural
producers, the biggest barrier to entry of export is the
regulatory uncertainty. Many rural producers do not have the
understanding or the knowledge of complying with the complex
export regulations, navigating export controls, and custom
procedures for country-specific requirements.
Things that are currently in place that can assist these
exporters is using the STEP Grant funds or the Market Access
Program funds that can allow them to get that export education.
So utilizing the state and Federal agencies are key to make
sure that they are getting that knowledge and that expertise so
that when they are ready to enter the export market, they are
ready.
Senator Rosen. Perfect. Thank you. Mr. Salamido.
Mr. Salamido. Yes, I echo what Mr. Davidson said. And in
addition, it is really about three things. First, it is about
the talent. It is about making sure that the talent in our
rural areas is aligned with the needs and the businesses that
are there. So programs that support that, like the Employer-
Directed Skills Act, the Pell Act--thank you, Senator Budd for
that. The Chamber fully supports those initiatives and what
they do for North Carolinians, in particular, North Carolinians
and small business. So talent is at the forefront.
And the other barrier is infrastructure, the roads, rails,
ports, water, sewer, all the things that are necessary to do a
couple of things. One is to make sure we can get raw materials
in and products to market, and that particularly favors our
small businesses that are, you know, three, four, five indirect
job multipliers to our larger businesses in our non-urban
areas. So that infrastructure, the certainty of making sure
that they can get to markets.
And third, a good resource is making sure that there are
export services and teaching opportunities available to small,
rural businesses. In North Carolina, our Small Business
Technology Development Center there, which is our arm of the
Small Business Administration, has incredible programs that are
available to small businesses that demystify and help them
understand and manage those issues.
And access to capital also exists through SBTDC. We did a
partnership with SBTDC and the North Carolina Bankers
Association, the Rural Export Center. It is called ``Capital
Opportunities,'' and it allows small businesses to go onto a
website, onto an app, plug in their information, and align them
with banks and financial institutions who link to a system.
So it is about talent, it is about infrastructure, access
to capital, and removing some of the barriers that Mr. Davidson
discussed.
Senator Rosen. Thank you. Mr. Westcott.
Mr. Westcott. Yes, I could not echo that strongly enough.
Pretty much everything that has been mentioned so far comes up.
In 2022, NSBA, as I mentioned in my testimony, did a survey,
and one of the main questions we asked for folks who are not
currently exporting is what are the barriers that you are
seeing, what is preventing you from doing this. The number one
thing was education, awareness--I don't know enough, I need to
know more about how this process works. But regulation, all
these other things that have been mentioned throughout the
course of this.
So I think the number one thing that we see is really just
understanding of and awareness of the benefits of exporting.
And we think that the simplest way to address this would be to
really centralize resources, as I mentioned earlier, creating a
position within SBA, because that is generally the de facto
resources for most small businesses, and especially rural small
businesses, that can really elucidate for folks the full roster
of resources available to them. I think that is probably the
single largest barrier to folks participating is just being
able to overcome that information gap.
Senator Rosen. Maybe a one-stop shop dashboard, and I would
add broadband to that infrastructure need there.
I am going to ask one more question before I turn it over
to Senator Budd, because it is so important that we do have
these Rural Export Centers. And across the country, Rural
Export Centers provide invaluable services to small rural
businesses interested--like you said, they have got to grow
their operations. It really matters, and it is fantastic.
But due to their location, rural businesses have
historically faced barriers accessing the counseling and
guidance, just like you have spoken about, to reach
international markets. Rural Export Centers successfully do
bridge this gap by meeting rural businesses where they are, and
we are proud to have the West Rural Export Center in Nevada,
and it has empowered rural businesses in Nevada to leverage
those Federal resources and take full advantage of the benefits
of exporting.
Mr. Davidson, can you talk a little bit about the
importance of having the Federal resources, our West Export
Center specifically, dedicated to the rural export business,
and how do you really address the unique needs?
Mr. Davidson. Every exporter and every small business have
their own needs and expertise, and having the ability to have
the Rural Export Center in Las Vegas is a crucial component and
resource for our Nevada small businesses, especially in the
rural areas of Nevada. It is really important to make sure that
we are getting there in front of them, like you mentioned,
coming to them, and showing them the steps of how to get to
those Federal resources.
I think exports are a scary word to a lot of small
businesses. They think that they have to be this big, multi-
billion-dollar company in order to export, and that is not
true. A lot of Nevada small businesses that export only export
a small percentage, but they are considered an exporter.
So really showing them that they can make that significant
change and getting them in front of the resources necessary,
through partnerships, through state and Federal level. So we
have the Governor's Office of Economic Development and the
Small Business Development Center, in connection with the U.S.
Commerce. All of us together can work to support all rural
exporters in Nevada.
Senator Rosen. Wonderful. I am going to turn it over to
Senator Budd for your 5 minutes. Thank you.
Senator Budd. Thank you, Chair. And, you know, perhaps this
is a holdover from my time in the House on Financial Services,
but you mentioned a bank matching tool, I believe, was one of
the features. Could you describe that a little bit?
Mr. Salamido. Yes. It is called Capital Opportunities, and
it is a program that the NC Chamber, the North Carolina Bankers
Association, and the Rural Center came together with Small
Business Technology Development Center. And it is an app. What
we were able to do is work together through our common
memberships and common interests to get banks to put on their
lending requirements and access to those dollars online. A
small business, a rural area business can go on and plug in
what they are looking for and what their needs are, and they
will be connected with an institution that is most likely to be
able to help coach them through it, help them become bankable,
and also give them access to capital.
So it has been there for almost a year now. It is not as
well-known as we would like it to be. We have tried to push it
out numerous ways. So it is a great vehicle to get access to
capital for small and rural businesses.
Senator Budd. Thanks for clarifying on that.
Can you talk a little bit about how successful rural
exporters have positively impacted communities in North
Carolina? I know it is sort of an outsized effect of small
businesses in North Carolina, but if you would talk about their
impact on small communities.
Mr. Salamido. Yes, it is significant because you need a
whole lot of small businesses to support getting products to
and from markets. So there are all different types of small
businesses. There are trucking companies that do that. There
are companies that produce and distribute the boxes that things
need to go into. The whole food processing piece.
I think one of the most interesting pieces recently has
been the evolution and the investment in cold chain support in
North Carolina. It allows our farmers and our smaller
businesses to get products to export, and they are fresher
because we have cold storage lined up.
The interesting part, too, is other countries, particularly
countries around the equator, have figured out how to make sure
that when we are not in season they are growing stuff in
season, and that import is coming in, and that is helping our
small businesses package that information. Well, the cold chain
comes in and it allows them to be fresher and get to markets
quicker.
So there are more small businesses that are packaging,
processing, holding onto their workers throughout the year,
which allows them to be more productive when the North Carolina
season is in place. So a lot of connectivity there.
And a lot of economic development comes when you have the
tech space of those small businesses in those communities that
allow the infrastructure investment to take place, in our water
and in our sewer and in our broadband with it. So the
connectivity of being able to have imports and exports, and
what that generates and allows our farmers, particularly our
farmers but everybody that supports them, to have seat around-
the-year opportunities to continue to connect workers allows
them to grow.
So that cold chain, we have not even seen fully the impact
that is going to have, but that cold chain capability, the only
cold chain between Philadelphia and Miami in the middle of the
country, our NC Ports investment in that is very strategic and
it is going to help a lot of people.
Senator Budd. I really look forward to that. You know, you
talked a little bit about in your opening statement, my opening
statement, about some of the uniquenesses of North Carolina,
hoping that some other state legislatures could replicate that.
But if you would talk about some of the things we have done
uniquely and some of the things that perhaps other states could
do?
Mr. Salamido. Thank you, and it was 14 years of hard and
disciplined and focused work to get North Carolina to be number
one 2 years in a row and to only miss Virginia by a couple of
points this last session.
Senator Budd. It was rigged.
[Laughter.]
Mr. Salamido. Well, don't look at it as we lost. We look at
it as Virginia caught up. And what we did is we took a really
good, hard look in the mirror a good number of years ago and
said where are things working for North Carolina and where are
they not. And three pillars were developed upon which to build
policies to get us competitive.
The first is education and talent supply, making sure that
our education and workforce systems, K-12, community colleges,
public and private universities, are aligning not only with
what business needs in their workers today but what they need
for tomorrow, and how are we making sure adult learners can
access those systems. Because the rate and pace of innovation
today is incredible, people are going to have to change, quite
frequently.
Then we looked at our business climate--tax, torts, civil
liability reform, regulatory reform--and said where do we get
balanced and fair regulations that are predictable, and that
will allow businesses the predictability they need to invest.
And the last is infrastructure and growth, which we have
talked about, and making those strategic investments, not only
when people are in your state but before they are coming, in
order to facilitate the movement of goods and services in
people. And you have to do it all together, and it takes a
plan, and it takes people of like minds, the business community
and business-minded public servants and those in public service
and our politicians, to say we are going to make a difference.
So North Carolina worked really hard, starting about 14
years ago, and now we just have to stay there. Because the
hardest thing is to stay on top when you are on top.
Senator Budd. Absolutely. Thank you.
Senator Rosen. Thank you. Senator Blackburn, I would like
to recognize you for your questions, please.
STATEMENT OF HON. MARSHA BLACKBURN,
U.S. SENATOR FROM TENNESSEE
Senator Blackburn. Thank you so much, Madam Chairman, and
thank you to you all for being here today.
Tennesseans are very active in the export marketplace. We
have got 6,000 companies that were exporters last year. This is
a good thing for us. We know that 82 percent of these companies
were small businesses.
Now, you know, most people think of electronic products,
cars, transportation sector equipment, those things, as coming
from Tennessee. But there is also an area of interest that we
have, and Senator Hickenlooper and I have the American Music
Tourism Act. And this is about exporting our culture and
encouraging both domestic and international travel to our
historic music sites.
Mr. Salamido, I would love for you to talk a little bit.
You were just talking about farm products and some other
things, which, of course, that is important to us in Tennessee.
But let's talk just a touch about the importance of promoting
and exporting some of our cultural treasures, like our music?
Mr. Salamido. Well, thank you, Senator. It all comes
together in terms of a package that makes your state, our
states the best place to live, work, and raise your family. So
being able to make sure that we have the balance and the
support and the prioritization of our music and our culture is
critically important as we look to develop our young people, as
we look to make sure that the businesses that are locating
through all our states have the ability to access all those
different cultural opportunities, for the growth of their
children and for the development of their own interests, and it
is a critical part of it.
It goes together, right? It is kind of like a Venn diagram.
Senator Blackburn. Yes, I think it does. I think it does go
together.
Mr. Westcott, I wanted to talk with you a little bit about
logistics and some of the work that is being there. Tennessee,
as you know, is really America's distribution center when you
talk about Memphis, and you have all five Class A railroads
that are there. You have FedEx that is there. You have got the
river.
And so what are you doing to put the focus to secure supply
chains, to have efficient logistics systems in place,
especially when you are talking about small and rural areas?
Mr. Westcott. Yes, thank you, Senator. I appreciate the
opportunity to talk about that a little bit. So I think we all
understand that our supply chains, especially after the
pandemic, are significantly more fragile than we initially
imagined that they were. We try to work frequently with our
folks to kind of get a real understanding of what the barriers
they are facing are, to making sure that their supply chains
are sustainable.
There is no silver bullet, as much as we wish there was.
Every industry is unique, has a different series of suppliers,
different macro and micro economic concerns that they are
worried about. But we are looking very, very actively at what
our membership is telling us and trying to bring that to the
Hill and talk to folks about what solutions there might be to
make sure that supply chains are more secure going forward than
they were pre and during the pandemic.
Senator Blackburn. And let me ask you this. With ITA, what
are you doing with small business exporters and the ITA to
increase opportunities for some of these small and midsized
businesses? We have got a company in Tennessee, Ace Pump
Company, which is a smaller business, and they recently won
their second ITA East Star Award.
So what is being done there to coordinate and open some of
these doors of opportunity?
Mr. Westcott. Yes, thank you. So what we try to do is
obviously as an association we have a limited ability to
specifically act in those spaces. But we do try to push our
members as much as possible to take advantage of the programs
that ITA and the Rural Export Center, specifically, provide,
whether it is RAISE, whether it is EMC, whether it is the WGR.
There are a lot of phenomenal resources there for folks to take
advantage of, and so we try as often as possible to kind of
educate our folks about what resources are available to them
and see how they can get more involved in the process and work
more closely with the folks at the RECs from ITA.
Senator Blackburn. Awesome. Thank you. Thanks, Madam
Chairman.
Senator Rosen. Thank you. Well, we will give you a second.
Senator Hickenlooper is here, and as soon as he is ready to go,
we will recognize Senator Hickenlooper.
STATEMENT OF HON. JOHN HICKENLOOPER,
U.S. SENATOR FROM COLORADO
Senator Hickenlooper. Thank you, Madam Chair. Thank you all
for coming and for your service, for all your work, obviously a
key issue.
Mr. Salamido, you mentioned that North Carolina, a key
theme concerning small businesses, and including the
agricultural sector, is the talent pipeline. We are seeing,
across the board, a need for skilled workers, particularly in
repair shops, labs, mechanical roles, as you highlight.
While technology, as you say, is being leveraged to address
the problem, the reality is even more people are needed to work
on the development, deployment, and maintenance of technology
in agriculture. So, Mr. Salamido, how might work-based learning
programs or apprenticeships address this need in small
businesses?
Mr. Salamido. Thank you, Senator. It is critical. The rate
and pace of innovation is like nothing we have ever seen
before. I was going to have one or two careers, but my children
and grandchildren may have four or five before it is over
because of the pace of innovation.
So work-based learning is critically important.
Apprenticeships in our high schools, getting into our middle
schools earlier with programs that set up career planning for
them and show them the opportunities that are available to
them, making sure that our high schools support apprenticeship
programs in a variety of different fields, critically important
to that.
And creating a culture of adult learning in our young
people and in our workforce today. So supporting our businesses
that are investing in those folks. They are investing in them.
They want to invest in them. It also helps them to be working
while they are doing that. And businesses support the advanced
education for those young people.
So I think it is critically important. Four-year degrees
are important, but there are also opportunities, really good
opportunities for people without 4-year degrees that could help
work their way to a 4-year degree.
Senator Hickenlooper. And certainly creating that
flexibility so you can start out not intending to have a 4-year
degree, but then once you get into the field, if you decide to
make that switch, there is no reason why you cannot continue on
and get a degree.
Mr. Davidson, in your testimony you highlight that a lack
of expertise and knowledge of logistics, this is a significant
barrier for small businesses looking to sell products
internationally. You also point out that the lack of
infrastructure, many different types of infrastructure, in
rural areas, whether you are talking about modern shipping
corridors or high-speed internet, this is a barrier for small
companies as they seek to expand or transport goods, compete
with larger companies, in many cases.
What types of infrastructure do you believe are the most
essential in terms of supporting small businesses to grow their
businesses?
Mr. Davidson. Thank you, Senator. I think there are two big
ones in Nevada that really impact our rural producers, and that
is going to be broadband connectivity. Eighty-two percent of
rural Nevadans have access to broadband, but there is still a
significant portion that do not, and 82 percent that might have
access to it might not have good access to it. So it is really
important that they have that ability to be connected.
Governor Lombardo has outlined a focus on connectivity in
Nevada, and we want to make sure that every producer, rural or
urban, has access to it. Even as a state agency we have an Elko
office, and we experience the repercussions of lack of
broadband connectivity, and funds like the Infrastructure Act
is allowing us to provide funds to those rural areas to get
them connected, to be part of the rest of the exporting
community.
Second would be transportation. Nevada has access to three
major ports--Oakland, Long Beach, and L.A.--and a lot of
northern Nevada's producers and exporters go to the Port of
Oakland. And that requires getting over the I-80 pass, and
winter time there, that is not an easy task to do. So making
sure that all producers and all exporters have that ability to
be able to get to the ports, or rails, or however else they
intend to export.
Senator Hickenlooper. Thank you. I agree with that
completely.
Mr. Westcott, for small businesses securing the necessary
financing to support export activities is often given as a
challenge, you know, something that is an obstacle that has got
to be overcome. This is especially true for small and medium-
sized businesses that cannot front a lot of those costs
themselves. Transportation costs, overseas logistics,
distribution networks, and such, also involve upfront costs for
a business initiating a supply chain.
We introduced an Investing in All of America Act to try and
increase available capital for small businesses in the SBIC
program, the Small Business Investment Company program, to
include rural inflation adjustments. Can you comment on how
domestic inflation affected many aspects of small businesses'
access to capital and impeding their joining the global market?
Mr. Westcott. Yes. I am happy to address that. Thank you,
Senator. I appreciate the question.
So inflationary pressures and other financial obstacles,
they disproportionately harm small businesses. It is pretty
obvious for folks to see that. The access to capital that small
businesses have is highly dependent on broader market
fluctuations. Often the most vulnerable products in a bank's
portfolio to be changed, to be altered are these small business
products, which makes it significantly more difficult for small
businesses to obtain financing.
I have spoken specifically with some of my members, and one
common practice with a lot of the guaranteed EXIM loans that
folks get for their products when they sell internationally is
to then sell that loan down on the secondary market to another
financial institution, like you would any commoditized
financial product. And they have found that because of
inflationary pressures, broader market conditions, what have
you, financial institutions with which they have had 20-, 30-
year working relationships are much less willing to buy that
paper down the road. So they are facing it on a couple of
different sides there.
Senator Hickenlooper. Got it. I appreciate that.
Madam Chair, I would like to----
Senator Rosen. [Inaudible.]
Senator Hickenlooper. OK. Go ahead.
STATEMENT OF HON. AMY KLOBUCHAR,
U.S. SENATOR FROM MINNESOTA
Senator Klobuchar. No, I was going to hand it back,
Chairman, to Senator Hickenlooper. I am at the Secret Service
hearing, and I think I am up next. So I will put my questions
on the record, and thank you very much to our witnesses. I care
a lot about this because in Minnesota we are fourth in the
country for Ag exports. We just do a lot of rural exports, and
this is a great topic, and I thank our witnesses. Thank you.
Senator Hickenlooper. Oh, I get a second chance. Now I am
just in the way of Senator Welch.
Just a yes-or-no quick. Colorado passed a Right to Repair
Act. This is a little bit off the topic but I think it is
relevant to each of your expertise. Do you see that as
something that is important to let these small, rural
businesses be able to operate and repair the things that they
have often purchased from large corporations?
Mr. Westcott. Yes, absolutely.
Mr. Davidson. Yes, Senator.
Mr. Salamido. We do not. We think that the innovation needs
to exist and allow the companies to work together, because some
of the information is proprietary. So we think a balanced
approach is possible, but we do not support a flat-out right to
repair.
Senator Hickenlooper. Good. Now I know who I have to come
talk to. Anyway, thank you. Thank you, Madam Chair.
Senator Rosen. Thank you, Senator Hickenlooper. Thank you,
Senator Klobuchar, as well. And we will go now to Senator
Welch.
STATEMENT OF HON. PETER WELCH,
U.S. SENATOR FROM VERMONT
Senator Welch. Thank you very much. You know, the
incredible opportunity of the export is great, especially rural
areas, but in Vermont in the last 10 years we have gone from $4
billion in exports to $2 billion. So I want to talk a little
bit about how to address that. Some of that is the strong
dollar, I know, but others it is just practical implementation
questions.
But before I get to that, the EXIM Bank has done something
terrific for Vermont, $169 million loan to BETA Technologies,
which is beginning to manufacture electric planes, and that is
an extraordinary benefit to get us to net zero and also huge
jobs that are being created.
So the initiatives, Mr. Westcott, like Make More in
America, really have an impact for us in rural businesses, and
about 400 jobs in the state of Vermont at BETA. What should
Congress do to continue to promote initiatives that help those
small, rural businesses compete at a global scale?
Mr. Westcott. Thank you, Senator. I appreciate that. I
think continuing to invest in opportunities to support
communities like that is crucial. Whenever Congress has an
opportunity to expand the number of opportunities available to
small businesses, I think they should certainly be looking to
take that.
Regardless of kind of what sector you are looking in or
what piece of legislation you have in front of you, I think
there are generally ways to expand opportunities for small
business, and specifically to increase jobs in the export
space.
Senator Welch. Well, you know, there are a number of
programs that are just tough at a practical level if you are a
small business, to figure out how to get access to it, even
with the best of efforts and outreach. Some of those programs
include at the International Trade Commission, SBA's State
Trade Expansion Program, the Small Business Development
Centers, and opportunities through EXIM that we talked about.
But there are real challenges. You are a small business in
Randolph, Vermont. You are a small business in Bennington. What
I am wondering about, is there anything that Congress can do,
or anything probably on a more practical level that the
Administration can do to increase awareness of what those
current programs are and make them, in a practical, real-world
way, accessible to some of these small businesses that would
significantly benefit if it could be an easy process to get
access to that help?
Mr. Westcott. Yes, absolutely. Thank you, Senator. So there
is a dizzying array, as I mentioned in my testimony, of Federal
programs available to small business owners across the country.
Senator Welch. I am not talking about--that is the emphasis
on ``dizzying,'' OK.
Mr. Westcott. Yes. Many of them are housed at agencies that
small business owners would least expect. So USDA has, I
believe it is over 50 financial assistance programs for rural
applications, and a number of those, 19 that I have in front of
me here, are for rural businesses specifically. And I think a
lot of small business owners would not go to USDA as kind of
their first resource for this.
So as I mentioned in my testimony, if the Office of Rural
Affairs at SBA could be empowered to become a central access
point for information, if they could really take on--so know
the Rural Partners Network is out there. That is something that
the Administration has done.
Senator Welch. To implement what you just said, that
sounded like a very practical suggestion, what do we need to
do?
Mr. Westcott. We need to make sure that that office is
empowered. In S. 4764, that bill specifically calls for the
creation of an assistant administrator for that specific
office, which has been dormant for a while. I think
revitalizing that office and just giving it the mandate to----
Senator Welch. No, hold on. How do you empower them? That
is like making decisions, right, so they can act.
Mr. Westcott. Mm-hmm.
Senator Welch. What you just said is giving them another
administrator, which may be a good idea. But that is not about
empowering it. What do you mean by empower?
Mr. Westcott. I think I mean empower in terms of just to
give them the base ability. Because right now the office has
been dormant. So it was originally authorized in, I think,
1990, and has been largely dormant since. And so by empower I
truly just mean give this extant office that does not have a
current mandate the ability to go and pull that together, give
them maybe a congressional mandate to pull that information
together and act as an operations center.
Senator Welch. OK. And how would you see that rolling out?
Mr. Westcott. I want to leave the specific implementation
to the true professionals here. I think I have a limited
ability to see exactly how they would operationalize that
inside SBA. But I think the rollout of that would be something
along the lines of SBA could work with SBDCs and the other
community partners they have to advertise the resources that
are available. They could mention to folks as they come in that
this is a new program that they could take advantage of, where
they could come and talk to specific points of contact at the
Office of Rural Affairs who would have access to all of the
information they need to start a business.
I think starting a central web portfolio is great because
so many rural small businesses can access government resources
better through online portals than they can through----
Senator Welch. And it has got to be made really simple,
right?
Mr. Westcott. Yes.
Senator Welch. What about just giving information about
what markets may be available to some of our rural enterprises?
Mr. Westcott. Oh, and that is fantastic. So there is a
little bit of work already going on in that space. RAISE, the
Rural America's Intelligence Service for Exports Research, that
is a part of what the Rural Export Centers and ITA is
providing. And I think more people would take advantage of
that, more small exporters specifically, if we could just point
them in that direction.
So I think there are a lot of existing resources like that,
that provide a lot of the services that I think we would want
folks to have access to. It is more about just making sure they
know where they live.
Senator Welch. OK. Thank you. I yield back. Thank you,
Madam Chair.
Senator Rosen. Well, I am going to kind of continue on this
topic because we all need to do more online. And as a person
who used to write application software, now known as apps, I
think using some of the dashboard and apps that you have all
talked about are really important. And I was pleased to say
that my Middle Mile Broadband Deployment bill became the base
bill for the infrastructure bill that is getting rural
broadband out there. We are getting it out to everywhere,
because no one can function anymore without it, as everybody
has stated. And this is going to help us expand broadband in
every community in this country, and particularly in our deep
frontier rural communities in Nevada. Very important.
And so I am going to talk about emerging export industries.
When we think about rural export industries of course
agriculture comes to mind, thinking about the cold chain
storage. Of course, as hot as it has been this summer, cold
chain, that does not sound too bad. But the United States is a
leading exporter of agricultural products, exporting goods from
grains to livestock across the globe. And as Mr. Davidson
knows, in Nevada we export alfalfa all over the world every
year.
Advanced manufacturing and clean energy also provide
critical export opportunities for rural Nevada and rural
America. Manufacturing is a key economic contributor for our
rural communities, often supporting more jobs, higher earnings
in rural areas than in urban areas. And so with surging
investment in clean energy technologies, supporting clean
energy-related advanced manufacturing in rural areas can
provide export opportunities to both current and potential
exporters.
As the only state that is home to lithium mine deposits,
Nevada has become a hub for electric vehicle and battery
manufacturing. And that is why earlier this year I was proud to
help secure a Federal tech hub designation and funding for the
University of Nevada's Lithium Loop Project, which will create
an even more robust, more economic opportunities for us up in
northern Nevada.
So I am going to ask you first, Mr. Davidson. Can you speak
to the importance of directing Federal investment to emergent
industries, like clean energy, but it can be others, and the
ways that small exporters can benefit from that? And then I am
going to ask Mr. Westcott and Mr. Salamido any comments to add
to that, as we build into some of these new emerging
technologies, what you might have for that, as well?
But we will start with you.
Mr. Davidson. Thank you, Chairwoman. Investing our Federal
investments to clean energy and to other technologies, it is a
dry state, it is a hot state. We are always looking for the
latest water conservation technology that we can use for
traditional agriculture.
You know, Nevada stands ready to be the leader for the full
Lithium Loop in the United States, and we are really excited
for that. And also solar, with the hot, the sun, I think we can
be a leading state in terms of the solar energy.
So I think moving all of these Federal investments to other
opportunities like this are key, especially for Nevada rural
exporters and producers.
Senator Rosen. We have more solar jobs per capita than any
other state in the nation, so we are on our way there.
Mr. Westcott, can you talk about emerging technologies and
what you think some of these investments we are making will
help our small businesses and rural communities?
Mr. Westcott. I am happy to. So small businesses are among
the most innovative in the country. We have a fantastic economy
that allows these entrepreneurs to really roll their sleeves up
and get involved in emergent technologies from the ground
level. So anything we can do to support that is fantastic.
I think one of the things, going back to what we were
talking about before, with online resources, that is one of the
greatest things that we can do to support small businesses in
these high innovative spaces, is just to make sure that they
have access to the resources that they need. Any issues that
they have are kind of exacerbated by a lack of access to
resources, so that digital divide that you were mentioning
before is really crucial for us to overcome in that space.
Senator Rosen. Thank you. Mr. Salamido.
Mr. Salamido. Thank you, Senator. North Carolina enjoys,
right now, reliable, affordable energy, and an all-of-the-above
energy strategy is one of the things that makes it work. I
think as we look to expand into other technologies, more and
more energy will be required. So looking at advanced nuclear
energy and facilitating the development of clean, advanced
nuclear energy will help our manufacturers and help our
businesses and help those small businesses that are a
multiplier effect of those. It will create more energy, it will
be cleaner energy, and it will also free up energy that is
currently on the grid for our smaller businesses and keep it
affordable for our consumers.
So an all-of-the-above energy strategy that takes the clean
energies and takes the energy we have, the transition to our
clean energies makes a whole lot of sense, and keeping
everything on the table will keep it affordable and reliable,
and that is key for small businesses that are innovating.
Senator Rosen. Yes. I would add water-smart technology to
that too, as we think about places that have too much and
places that do not have enough.
Senator Budd.
Senator Budd. Thank you, Chair. Just to carry on, continue
on with something you were speaking about with Senator
Hickenlooper a few minutes ago, you mentioned workforce
availability being a very critical issue, not just for North
Carolina, but I imagine the other states and territories, as
well.
So I have been actively working on this issue and have
introduced several pieces of legislation to deal with this. One
is--and I think you mentioned this in your opening comments--
The Pell Act, but also the Employer Directed Skills Act. Could
you talk, Mr. Salamido, about how these bills could
specifically help solve the workforce shortage, particularly in
rural areas?
Mr. Salamido. Thank you, Senator, and again, thank you for
both of those bills. It is about workforce, workforce, and
workforce. They ask us the top three issues are talent, talent,
and talent. But looking to make available resources,
particularly to our adult learners, but to all of our learners,
our veterans. For example, 20,000 veterans get discharged from
North Carolina bases every year, so making resources available
to them to get the skills they need to stay in North Carolina,
or wherever they are going to, are critically important for
that.
The transparency in those bills is critically important to
helping make it simpler for those folks that want to get
reeducated, retrained for the jobs of today and tomorrow are
critically important.
Also for thoughtful--in the area of criminal justice
reform, thoughtful criminal justice reform. There are a whole
bunch of folks out there that are nonviolent folks, that have
gotten caught into the system. So getting thoughtful criminal
justice reform combined with workforce systems and the support
for those systems, that the two pieces of legislation that you
have put forward provide, are incredibly important.
We have more jobs than we do people, and our birth rate are
down. So we have to look at our existing communities and what
people are there, and then make sure that they can get trained
and retrained to have long, viable careers until our birth rate
catches up one day again. But we have so much opportunity, and
there are just not enough people to fill them.
So with the people that we have, the programs that you have
put forward, the bills you put forward, combined with the
workforce initiatives that Senator Hickenlooper talked about,
are critically important, not only for the people that are in
our state, but for the way we attract talent to our state, to
help stay competitive.
Senator Budd. If I may continue on, you mentioned
something. Fourteen years ago a market shift in our state,
around 2010, and I was able to thank Senator Tillis when he was
in the state legislature. And he was the Speaker of the House
then, and some other leaders had come to Washington last night,
and they were in the room, and he had done a good job of
passing the baton before he came here to Washington.
But if you would talk a little bit about that shift, where
we became business and opportunity friendly and now we can see
the results, multiple years in a row, being the best place in
the Nation to do business, and now we are competing with
Virginia, it seems. But if you could talk about that shift, and
sort of talk about where those ideas come from and how it is
not government solving but it is government working in
collaboration with great private industry leaders, how do we
take good ideas, bring them to the surface, and carry on? I am
sure in other states they have got great ideas, as well, but
how do we allow those to surface and not extinguish these good
ideas, so that we can continue to innovate and grow in
different states?
Mr. Salamido. Thank you, Senator. The first step is to hold
up a mirror to yourself and have the courage to know what you
are not good at, and to look at the economy and to ask the hard
questions early on. So that is what we did. The business
community came together with business-minded public officials
and said, OK, what are we not good at? And we got really
courageous and thoughtful about that.
And then we put them into buckets, that I talked about
earlier--education and talent, competitive business climate,
infrastructure--and then made the conscious decision that we
have to do them all, and how do we do them. Well, let's take
bites out of them. Let's take one-year bites out of each of
those things, because we know where we want to be. Back then
they were saying 3 million people were going to come to North
Carolina by 2030. We surpassed that about 5 years ago, right,
and they are continuing to come for our quality of life, they
are continuing to come for a good job and a good place to raise
their family.
So you have to look in the mirror. You have to make the
hard decisions. You have to realize you have to do it year
after year, and never be complacent. And that is why North
Carolina has been so good. It was really courageous back in
2010, 2012, because a lot of folks were indicating that that is
too much, too fast. But we did not. We did it at a good and a
balanced pace, whether it was tax reform, whether it was
regulatory reform, or whether it was infrastructure investment,
and diversifying how we pay for things.
So it takes courage up front, and then just a steady one-
year plan to execute on that. And then the best time to change
your game is when you are on top of your game, continue to make
those hard investments in our education systems now, and in our
infrastructure systems, and protect the paper on the good
policies that we have passed.
Senator Budd. I know you talk with a lot of your other
colleagues around the country. What is something that
discourages the surfacing of these good ideas in leadership? I
am sure you see it done poorly. But without naming names, who
has done it wrong and what discourages growth?
Mr. Salamido. A lack of predictability. I mean, businesses,
as you know, being a business owner, you just want a steady,
predictable--you want to know what the rules are. And you want
a judicial system and a legal system that calls balls and
strikes. So not having that predictability keeps investment on
the sideline, because you want to know if you are going to put
your investment in, not only what it is worth today but what is
it worth tomorrow, and am I going to be able to generate more
jobs tomorrow because I am certain of what I am going to be
facing.
So I think when you look around, wherever there is
uncertainty, wherever there is volatility, wherever there is
lack of predictability in a legal climate, unbalanced
regulations that go too far in either direction, I think those
are the things that businesses say, hold on, let me wait a
little bit and see before I invest.
So to the extent that our state and other states can
balance that out and have a clear plan, that helps businesses
invest.
Senator Budd. Thank you, Chair.
Senator Rosen. Thank you. I would like to recognize Senator
Klobuchar. She is remote. Thank you, Senator Klobuchar.
STATEMENT OF HON. AMY KLOBUCHAR,
U.S. SENATOR FROM MINNESOTA
Senator Klobuchar. Thank you. I returned. And I appreciate
you letting me say that minute, but I got my questions done in
a very important hearing here. And this really matters to, as I
noted, our state a lot, and I just do not think there is enough
emphasis on rural export, when over 95 percent of the world's
consumers live outside the U.S., and there is literally a world
of opportunity. So I really appreciate the Chair and the
Ranking Member's focus.
One of the things that U.S. exporters in my state were very
concerned about, and continue to be concerned, is just the cost
of shipping. And that is why Senator Thune and I teamed up
several years ago to pass the bipartisan shipping reform bill,
that the President signed into law. And that was a major effort
out of the Commerce Committee, and actually the rates went down
for quite a while. They are still not where they were at the
peak of the pandemic, which is good and affects manufacturers
and farmers. There are still some issues that I have been
hearing about the effect of terrorism and other things on
shipping rates.
But Mr. Davidson, can you talk to the importance of having
a reliable, resilient supply chain when it comes to exporting?
Mr. Davidson. Thank you, Senator. Yes, supply chain is a
huge factor, especially for agriculture and food production.
With Nevada exports primarily utilizing the three key ports of
Oakland, L.A., and Long Beach, the likelihood of exports being
taken advantage of at the port is likely. But thanks to the
bill that you and your colleagues passed, it has helped protect
those producers from being declined at the port.
Although that part is taken care of, we do see some
struggles with our southern border and getting our fresh onions
into the Mexico market. They passed all of the USDA and U.S.
regulations, and then when they get into the market they get
denied and sent back, and then that producer is no longer
allowed to import into the Mexican market.
So I think there is still work to be done on getting
exports out there. I think the Ocean Shipping Reform Act is one
step, but to continue those efforts.
Senator Klobuchar. Very good. Mr. Salamido, Brand USA, as
Senator Rosen is well aware with her work on tourism and her
leadership, is a public-private partnership that promotes
international tourism in the U.S. It does not use taxpayer
dollars. It uses fees on visas, on visitors from foreign
countries. It has generated $56 billion to our economy, this
foreign travel, since 2013. It supports about 40,000 jobs each
year. Senators Blunt and Moran and I have worked on this for
years, Blunt when he was here.
Talk about how the Congress can support tourism in rural
areas. Again, this is one of those exports that you do not
think of it as an export, because it is not like a sugar beet.
But could you talk about how you can actually make money off of
tourism in rural?
Mr. Salamido. Thank you, Senator, and thank you on your
work on Brand USA, because tourism is a critical component of
North Carolina's economy, from the mountains to the coast. For
us, it is a total direct spending is about $35 billion a year.
We employ over 227,000 folks in the tourism industry throughout
there. And those areas are in non-urban and rural areas, so it
is critically important. We appreciate the work you have done
on Brand USA.
We have a public-private partnership in North Carolina for
economic development also, and a key arm of that is tourism,
and making sure that those jobs that are in rural areas, that
allow people to explore mountains and rivers and our coast and
everything in between. So critically important to what we do.
Our visitor spending per day is almost $100 million in
North Carolina for tourism-related activities. So that is a lot
of small businesses, a lot of rural businesses who can feed
their families and invest in their communities because of the
importance of tourism to our rural community.
Senator Klobuchar. OK. Mr. Westcott, the Rural Export
Center in Fargo, North Dakota, which also helps that part
nearby of my state, provides data analytics and resources to
support small businesses in rural areas. Senator Hoeven and I
have long led the Promoting Rural Export Act to authorize this
center permanently. Can you talk about the role that data
analytics plays in supporting small businesses? So it is
basically so they know where to go with their product, when
they do not have an entire arm of a small business of 20 people
may be devoted to exporting in Kazakhstan or other places, like
some of our big businesses have trade experts in regions of the
country that small businesses just would not be able to have
the funding to hire.
Mr. Westcott. Yes. Thank you, Senator. I appreciate the
question. I think you hit the nail on the head there. The big
thing is these centers and the resources and the research that
they provide are allowing small companies to compete on the
global stage, in areas where they would not be able to
otherwise. It provides them with insights, tools, and data that
was previously reserved only for the biggest corporations who
were able to operate in multiple markets all over the world and
finance folks in the most far-flung destinations.
So these centers are crucial. They provide folks with much-
needed data to understand the size of the potential market they
are working with, who their potential partners might be, given
them just generally a 30,000-foot look into the potential
market they are exploring internationally. So they are
fantastic, and we are very, very happy to see them continue
this for small businesses.
Senator Klobuchar. Thank you. And I will do my last
question on the record because everyone has been so patient.
But it is about the importance of the farm bill passing, Mr.
Davidson, and the Ag export piece of this, with both the Market
Access Program and the Regional Agricultural Promotion Program,
which play a key role in rural as well as some of the other
things we have talked about today.
So hopefully we can get that farm bill done this year.
Senator Rosen. Thank you, Senator Klobuchar.
Senator Klobuchar. Thank you, Senator Rosen.
Senator Rosen. I appreciate it. I had one final question,
and so does Senator Budd. So I want to just make a comment
about workforce, and I am just going to ask everybody a yes or
no, because we need workforce and we need capital, right. They
have to exist together.
So does everyone here support expanding apprenticeships,
internships, and incentives? Would that be a good thing to help
our rural businesses? You can just----
Mr. Salamido. Emphatic yes.
Senator Rosen. Emphatic yes. Mr. Davidson?
Mr. Davidson. Absolutely, Senator.
Senator Rosen. Mr. Westcott?
Mr. Westcott. I could not agree more.
Senator Rosen. Yes, I know many of us have bills. I have a
bill. You talked about adult education works for returnships,
people who have stepped away from the workforce, maybe for
childcare or elder care or other kinds of issues in their life,
so they want to upscale or rescale. So these are really
important.
But I am going to move on to the second piece of this,
which is access to capital, because you need people and the
finances to do things, right? So small businesses, we know they
often cite a lack of access to capital, and one of the main
obstacles they have reaching their foreign markets. So it is
really vital. And exporting activity can actually just be more
costly than domestic business due to its complicated regulatory
hurdles and logistics, as you have all alluded to.
And so despite its importance to their operation, rural
export businesses face significant barriers accessing capital,
with many relying on a dwindling number of small banks, local
banks for financing. You have spoken about this too, Mr.
Westcott.
I am going to ask each of you a little bit different
question. Mr. Westcott, what specific characteristics of export
businesses make financing particularly difficult, and how can
we exacerbate these challenges in rural communities? And then I
will have a separate question for each of you.
Mr. Westcott. Thank you so much, Senator. I appreciate
that. So the number one thing that I heard in talking to my
members about this exact issue was they have noted that a lot
of banks have an issue with the specific sizes of loans that
they are looking for. So given economic headwinds, inflationary
pressures, other financial uncertainty, banks, in some of my
members' experience, tend to prefer giving a single larger loan
to a larger business or a larger operation that has that
guarantee tied to it, as opposed to the corresponding 10, 15,
20 smaller loans that would kind of feed into that.
So I think it is really a size issue, as well, as much as
anything else.
Senator Rosen. Thank you. And so Mr. Davidson, how can
Congress expand and strengthen existing Federal export finance
programs to better reach rural businesses, and if you could
talk to us about the structural barriers or the requirements
that make these programs difficult for small businesses to
access? Maybe they want large loans, not the micro loans,
right?
Mr. Davidson. Absolutely. Thank you, Senator. I think just
being able to expand on the existing programs that we have and
really looking at the Federal export finance programs and SBA
lending programs. I mean, especially in the food and Ag sector,
it requires a lot of loans. We actually have a 24-year-old
farmer in Fallon, Nevada, who is currently $2 million in debt
because he needs to purchase land and equipment to be able to
have a livable production facility. It is not sustainable for
younger producers or, frankly, anybody.
So by looking at these lending programs and the financial
constraints to be able to kind of relieve some of these, maybe
it is a lower interest rate on some of the loans or more access
to be able to get into these loans. Because where is a 24-year-
old going to find $2 million to be able to build their
business?
Senator Rosen. Yes. We have a lot of wonderful young folks
in Nevada that do want to do these things.
Mr. Salamido, I am going to finish my last bit of question
with you about the private sector. What private sector
financing options are available to the small rural export
businesses, and how might we partner better?
Mr. Salamido. Yes, a real hidden gem that we all need to do
a better job of, getting the information out about our Small
Business Administration groups, units, within our states. Our
SBTDC has about 7,000 clients right now, and that is money that
the Federal Government has put forward and North Carolina
government has put forward to give small businesses, of all
sizes and shapes, understanding on how to get into the export
market, how to access capital. And it is there at no cost to
the small business. It has been paid for with their tax dollars
already, and the SBTDC sits there and brings people in and
helps them become bankable.
And that is why we created the Capital Opportunities app.
Let's use the small business experience. Let's create an access
to the capital. The capital is there. We have to help small
businesses understand how to get bankable and that there are
resources there available to them. On our 17 campuses of our
university system, they are all right there.
Senator Rosen. Fantastic. I am going to turn it over to
you, Senator Budd.
Senator Budd. Thank you. Mr. Salamido, you know, banking
deregulation has been huge for North Carolina in recent
decades. But kind of using that as an example, are there other
areas, specifically if there was deregulation or if there was
regulation reform or outright removal, is there any area
specifically that would help North Carolina's economy, and it
would specifically help rural economies if there was
deregulation reform or outright removal of regulatory
constraints?
Mr. Salamido. Yes, I think there are two specific areas
related to workforce where regulatory reform, modernization,
and elimination really would be helpful. One is in childcare.
In childcare right now, if two people are working it is really
difficult to get childcare that facilitates work. It is very
expensive. So there are ways to modernize and look at our
childcare regulations, keep our children safe by all measures.
But let's look at how we use innovation, how we use our young
people, how we use our education, and what are educational
requirements for childcare workers, making sure they are
aligned with today's economy and what the needs are in those
areas. So I think childcare is an area.
Housing is a significant area. As we look at permitting
reform, how do we make sure that we modernize our permits. I
think it affects two things. It affects our urban areas and it
affects our rural areas, because of the competition for land.
So if we allow and free our urban areas up to appropriately
modernize their permits to allow for different ways, that also
keeps the urban areas from expanding into the rural areas for
housing and land.
It becomes really complicated when there is this
generational shift going on in our agriculture community now.
There are just not as many young people and big families as
there were before. So a farmer who has had a farm for a long
time has to be able to get something out of that, and if there
is no one to give it to then the competition for land goes up
significantly.
If we can do permitting reform to allow our urban areas not
to necessarily need to expand out into our rural areas as much,
I think it will be significant.
So housing and childcare are two particular areas. It
should never take us longer to permit something than it does to
build it.
Senator Budd. That is often the case. Thank you so much for
coming up, and I thank the panel.
Senator Rosen. Well, I want to thank all the witnesses. We
have a lot of notes and a lot of work to do. I sit on both
committees of jurisdiction. I do want to say, Mr. Salamido,
that Senator Ernst and I have a great bipartisan bill we have
been working on called the Small Business Child Care Investment
Act, that allows the SBA, if you are a nonprofit, if you are a
church, a synagogue, a boys' and girls' club, a YMCA, any other
nonprofit, it allows you suddenly access to SBA resources to
put up childcare. Because there are childcare deserts all
across this country, urban and rural, affordability,
availability. We have even had senior centers who say, look, we
have the land, we have commercial kitchens, they are nonprofit,
we could put up childcare right on our campus, which would be
very helpful in some of our rural communities.
So we are trying hard to get that passed, and like I said,
it just removes the guardrails for nonprofits to be able to do
that and address this very issue you are talking about.
But I want to thank all of you so much for participating in
today's hearing, for the hard work you are doing, for the
thoughtfulness and care that you are putting behind what you
are thinking about, how you are planning for the future, how
you are reaching out to our communities, reaching out to our
small businesses, whether they are as young as 24 years old,
people who want to start out, or we do not want to say going up
in maybe the family farmer who wants to give it to their
grandchildren. And so it is really important.
We really appreciate examining the rural export businesses,
the landscape for that, and your testimony has just been
terrific.
So the hearing record will remain open for two weeks, until
Tuesday, August 12, 2024. Any Senators who would like to submit
questions for the record should do so by Tuesday, August 12,
2024. And for those of you who testified today, we ask if you
get those questions for the record that your responses be
returned to the Committee as quickly as possible, and in no
case later than two weeks after receipt.
That concludes today's hearing. Thank you again.
[Whereupon, at 11:26 a.m., the hearing was adjourned.]
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