[House Hearing, 119 Congress]
[From the U.S. Government Publishing Office]
MARKUP OF: H.R. 1642, CONNECTING SMALL BUSINESSES WITH CAREER AND
TECHNICAL EDUCATION GRADUATES ACT OF 2025; H.R. 789, TRANSPARENCY AND
PREDICTABILITY IN SMALL BUSINESS OPPORTUNITIES ACT; H.R. 787, PLAIN
LANGUAGE IN CONTRACTING ACT; H.R. 1621, THE ENTREPRENEURS WITH
DISABILITIES REPORTING ACT; H.R. 1634, THE THINKDIFFERENTLY ABOUT
DISABILITY EMPLOYMENT ACT; H.R. 1816, WOSB ACCOUNTABILITY ACT; H.R.
1804, 7(A) LOAN AGENT OVERSIGHT ACT
=======================================================================
HEARING
before the
COMMITTEE ON SMALL BUSINESS
UNITED STATES
HOUSE OF REPRESENTATIVES
ONE HUNDRED NINETEENTH CONGRESS
FIRST SESSION
__________
HEARING HELD
MARCH 5, 2025
__________
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Small Business Committee Document Number 119-004
Available via the GPO Website: www.govinfo.gov
------
U.S. GOVERNMENT PUBLISHING OFFICE
59-817 WASHINGTON : 2025
HOUSE COMMITTEE ON SMALL BUSINESS
ROGER WILLIAMS, Texas, Chairman
PETE STAUBER, Minnesota
DAN MEUSER, Pennsylvania
BETH VAN DUYNE, Texas
JAKE ELLZEY, Texas
MARK ALFORD, Missouri
NICK LALOTA, New York
BRAD FINSTAD, Minnesota
TONY WIED, Wisconsin
ROB BRESNAHAN, Pennsylvania
BRIAN JACK, Georgia
TROY DOWNING, Montana
KIMBERLYN KING-HINDS, Northern Marina Islands
DEREK SCHMIDT, Kansas
NYDIA VELAZQUEZ, New York, Ranking Member
MORGAN MCGARVEY, Kentucky
HILLARY SCHOLTEN, Michigan
LAMONICA MCIVER, New Jersey
GIL CISNEROS, California
KELLY MORRISON, Minnesota
GEORGE LATIMER, New York
DEREK TRAN, California
LATEEFAH SIMON, California
JOHNNY OLSZEWSKI, Maryland
HERB CONAWAY, New Jersey
MAGGIE GOODLANDER, New Hampshire
Lauren Holmes, Majority Staff Director
Melissa Jung, Minority Staff Director
C O N T E N T S
OPENING STATEMENTS
Page
Hon. Roger Williams.............................................. 1
Hon. Nydia Velazquez............................................. 2
APPENDIX
Additional Material Submitted for the Record:
H.R. 1642.................................................... 26
H.R. 789..................................................... 30
H.R. 787..................................................... 34
H.R. 1621.................................................... 37
H.R. 1634.................................................... 40
H.R. 1816.................................................... 43
H.R. 1804.................................................... 49
Amendment to H.R. 787........................................ 52
Women's Procurement Circle (WPC) Letter...................... 55
Women Impacting Public Policy (WIPP) Letter.................. 57
Women Construction Owners and Executives (WCOE) Letter....... 59
Alford Letter................................................ 60
MARKUP OF: H.R. 1642, CONNECTING SMALL BUSINESSES WITH CAREER AND
TECHNICAL EDUCATION GRADUATES ACT OF 2025; H.R. 789, TRANSPARENCY AND
PREDICTABILITY IN SMALL BUSINESS OPPORTUNITIES ACT; H.R.787, PLAIN
LANGUAGE IN CONTRACTING ACT; H.R. 1621, THE ENTREPRENEURS WITH
DISABILITIES REPORTING ACT; H.R. 1634, THE THINKDIFFERENTLY ABOUT
DISABILITY EMPLOYMENT ACT; H.R. 1816, WOSB ACCOUNTABILITY ACT; H.R.
1804, 7(A) LOAN AGENT OVERSIGHT ACT
----------
WEDNESDAY, MARCH 5, 2025
House of Representatives,
Committee on Small Business,
Washington, DC.
The Committee met, pursuant to call, at 9:55 a.m., in Room
2360, Rayburn House Office Building, Hon. Roger Williams
[chairman of the Committee] presiding.
Present: Representatives Williams, Stauber, Meuser, Alford,
LaLota, Wied, Bresnahan, Schmidt, Velazquez, McIver, Latimer,
Tran, Simon, Olszewski, and Goodlander.
Chairman WILLIAMS. The Committee will now come to order. A
quorum is present and without objection, the Chair is
authorized to declare a recess of the Committee at any time. As
required by House rules, a copy of the legislative measures
have been made available to Members and the public at least 24
hours in advance. And pursuant to Committee rule 13 and House
rule XI, all votes will be rolled to the end of the meeting.
I am excited to announce that for the first time in this
Committee, we will be using electronic voting. Okay. We have
moved up. All right. And remember, it is electric, so be
careful. Right? But this is just another way we are raising the
bar in the 119th Congress on this Committee. Without objection,
the Committee will vote electronically in accordance with the
Committee rules and regulations developed by the House
Committees on Rules and Administration.
I now recognize myself for opening remarks.
In today's markup, we will discuss seven bills highlighting
the work needed to usher Main Street America into the golden
age. I will speak on each of the bills we bring up today in
much greater detail, so I will keep these remarks brief.
The Biden administration failed Main Street America. This
presidency, or his presidency, resulted in nearly $1.8 trillion
of regulatory costs, 335 million hours of unnecessary paperwork
for hardworking Americans. It is no surprise that since
President Trump's election, small business optimism is at an
all-time high. My colleagues and I on this Committee will work
with President Trump and Administrator Loeffler to ensure that
small businesses have a voice in Washington that provides them
with the resources they need to grow and to thrive.
Today's bipartisan markup is a result of the numerous
hearings conducted by this Committee last Congress on the
harmful effects that the Biden administration had on Main
Street America. Main Street America deserves commonsense
legislation that simplifies contracting requirements, cuts
bureaucratic red tape, and ensures that the SBA focuses on the
needs of small businesses. Instead of helping small business
owners, the Biden administration expanded regulations, removed
lending guardrails, and used the SBA for electioneering. And
instead of utilizing the SBA network to counsel small
businesses in their workforce hiring needs, the previous
administration simply ignored them. Small businesses deserves
to have their voice heard in Washington, which is what we are
doing here today.
Here on this committee, we know it is our job to put
forward meaningful policy solutions that will help, not harm,
our nation's job creators. We aim to make the jobs of small
business owners simpler, allowing them to focus on the growth
of their business. I want to thank our Members for bringing
these bills up for consideration and work in today's markup.
Every piece of legislation we will look at today is a product
of work we did last Congress and will help the 26 million small
business owners the SBA serves.
As the economy grows under this new administration, small
businesses desperately need skilled workers to help their
businesses succeed. They need an SBA that works for them. In
support of President Trump's agenda, we will work with
Administrator Loeffler to root out waste, fraud, and abuse, and
we must continue to fight for the success of this nation's
small businesses and these bills are a significant step in in
the effort to usher main street to the golden age of America. I
am excited to see our Committee work with Administrator
Loeffler and President Trump to pass commonsense legislation
allowing small businesses to focus on their growth.
Now with that, I yield to my friend and distinguished
Ranking Member from New York, Ms. Velazquez, for her opening
statement.
Ms. VELAZQUEZ. Thank you, Mr. Chairman, and thank you for
holding this mark up today.
I would be remiss if I do not react to your statement about
Joe Biden failing Main Street America. The facts speak for
themselves: 20 million startups and most economists concluded
that the economy of the United States was the envy of most
industrialized countries.
We are considering seven bills to make improvements to SBA
programs and services, from focusing on career and technical
education to disabled communities and improving the 7(a)
program and contracting rules. We have a strong slate of bills
before us.
Main street small businesses are the lifeblood of our
nation's economy, driving innovation and job creation and
helping millions of people achieve their American dream. I
stand committed to creating more opportunities for
entrepreneurs so they can continue to thrive and, in turn,
create good-paying jobs in our local communities. I plan to
lend my support to the seven bipartisan bills we are
considering today and I appreciate the Chairman's efforts to
mark up a fair ratio of Republican and Democratic bills.
While we are starting off on a positive note on this
committee, I am afraid we are in the midst of troubling times
with the Trump Administration's policy. Elon Musk and his DOGE
team infiltrated the SBA, gaining access to all SBA systems,
including HR, contract, and payment system, putting small
business data at risk. Hundreds of dedicated SBA employees have
been terminated. Small business contracts are being canceled
governmentwide and program funding and grants that assist small
employers has been paused. These cost-cutting actions are
creating undue uncertainty for small employers and resulting in
layoffs at small government contractors.
What is more concerning is that we aren't even getting
information about these changes. While I think many of us can
agree that we want an efficient agency, the blanket
terminations and funding freeze are creating chaos. We have
essentially ceded our constitutional duties to the executive
branch without even batting an eye. It is this Committee's
responsibility to make decisions about the programs at SBA,
just as we are doing today by marking up bills after thoughtful
negotiations. It is incumbent upon us to oversee any pernicious
action taken by the administration or DOGE which impact our
collective goal to strengthen and support our nation's small
business community. This is especially true as new tariffs hit
our employers and consumers in a variety of industries.
I hope we can work together to conduct oversight of SBA and
any governmentwide actions jeopardizing the success of our main
street businesses. They deserve no less.
Thank you again, Mr. Chairman. I look forward to a
productive markup. I yield back.
Chairman WILLIAMS. The lady yields back. Does any other
Member seek recognition for the purpose of making an opening
statement?
Okay. Seeing none, we will now move into consideration of
this bill.
H.R. 1642
The Committee now moves into consideration of H.R. 1642,
the Connecting Small Business with Career and Technical
Education graduates Act of 2025, introduced by myself and
Representative Olszewski. The bill is cosponsored by
Representatives Bresnahan, Tran, and Wied. And the clerk will
read the bill.
The CLERK. H.R. 1642, a bill to amend the Small Business--
--
Chairman WILLIAMS. Without objection, H.R. 1642 is
considered as read and open for amendment. I now recognize
myself for an opening statement on my bill.
As we enter the golden age of America, main street is in
critical need of skilled workers, plumbers, electricians,
mechanics, and countless others who are the backbone of our
economy. Without them, the American people would not have the
critical goods and services we often take for granted. I am
proud to lead in the charge and encouraging more young people
to pursue valuable career and technical education, or CTE,
professions and assist graduates in translating their skills
into the workforce.
Many graduates of these programs wish to start a small
business of their own, but don't know where to turn for help.
My bill clarifies that Small Business Development Centers, or
CBDCs, and Women's Business Centers, or WBCs, should build
relationships with CTE programs so their graduates know where
to turn for business assistance. With these relationships my
bill ensures that SBDCs and WBCs help small businesses
understand what CTE programs are available, how graduates of
these programs can fill critical employment needs, and help
small businesses' clients connect with these programs. I urge
all my colleagues support this legislation.
I now recognize Dr. Olszewski for a statement on the bill.
Mr. OLSZEWSKI. Thank you, Mr. Chairman.
I would be remiss if I didn't begin today just by taking a
moment to recognize one of our dear colleagues who recently
departed, Representative Sylvester Turner. I know that he was
an outstanding leader for the city of Texas [sic] as its mayor
and was a fierce advocate for the 18th District of Texas. He
was a beloved member of the freshman class. And as we do this
work, I just like to start in his honor, his memory, Mr.
Chairman.
So, I thank you for your leadership and your partnership on
this bipartisan legislation that will ensure Small Business
Development Centers and Women's Business Centers provide
technical educational information to small businesses about CTE
programs, who, in turn, can hire accomplished and competent
graduates in these programs. My home state of Maryland has 46
Maryland State Department of Education approved high school CTE
programs in 11 career sectors with a total of 259 schools
participating in programs like SkillsUSA and the Future
Business Leaders of America. The programs range from arts,
media, and communication to manufacturing, engineering, and
technology because in Maryland we believe that work-based
learning opportunities are essential to prepare students for
their next steps.
In my previous role as county executive in Baltimore
County, workforce development and CTE were among my top
priorities. In that capacity, I oversaw the implementation of a
$3.3 billion plan to improve schools, a plan that included
significant investment in CTE. And I was proud to help create a
Public Health Pathways program that is connecting underserved
residents in the Baltimore area with high demand and high need
nursing jobs.
This bill ensures federal resources are being used to
support entrepreneurs achieve the American Dream. It is one of
just many steps I look forward to working with you and others,
Mr. Chairman, to build a pipeline of skilled workers in need
industries. I urge my colleagues to support the bill and I
thank the Chairman again as well as the other Members who have
joined on this important piece of legislation as well as all
the other bipartisan bills we'll be considering today.
And with that, I yield back.
Chairman WILLIAMS. The gentleman yields back.
Now I recognize Mr. Wied for a statement on his bill.
Mr. WIED. Thank you, Mr. Chairman, for giving me the
opportunity to speak on this piece of legislation, H.R. 1642,
the Connecting Small Businesses with Career and Technical
Education Graduates Act of 2025. We will support students who
have completed a career in technical education, CTE, program by
providing them with resources they need to put their skills to
use in the job market.
In my home state of Wisconsin, there are over 250,000 high
school students who have taken at least one CTE course.
Students who have taken at least two CTE courses graduated high
school at a rate 5 percent higher than Wisconsin state average.
This is something we should all be encouraging. These students
are motivated and are ready to contribute to our economy in a
wide variety of industries, many of which face a critical
shortage of qualified employees. This bill requires Small
Business Development Centers and Women's Business Centers to
support these CTE program graduates transitioning into the
workforce by connecting them with employment opportunities.
In addition, this bill will provide graduates with the
knowledge to start their own small business. Supporting
graduates of the CTE program utilize their skills benefits not
only to students themselves, but also small businesses who need
good, hardworking employees. I am proud to be an original
cosponsor of this bill and I encourage my colleagues to support
it.
And with that, I yield back.
Chairman WILLIAMS. The gentleman yields back.
I now recognize Mr. Tran for a statement on the bill.
Mr. TRAN. Thank you, Mr. Chairman.
H.R. 1642, the Connecting Small Businesses with Career and
Technical Education Graduates Act, will help small business
owners fill gaps in the workforce by connecting them with
graduates of vocational programs to the Small Business
Administration, Small Business Development Centers, and Women
Business Centers. This is especially important because our
economy is lacking skilled trade workers in key industries,
such as construction and manufacturing, and cannot keep up with
demand.
Talented graduates coming out of vocational education
programs in my district, such as Coastline College in Fountain
Valley, have the skills that small businesses in Orange County
need. This bill will help ensure graduates of career and
technical education programs find good-paying jobs for which
they are trained. It is pro small business, pro students, pro
workforce, pro economic growth. It is a win for everyone
involved.
I am proud to colead H.R. 1642 and I want to thank my
colleagues, Chairman Rogers, Congressman Olszewski, and
Congressman Bresnahan and Congressman Wied for their leadership
in championing this important piece of legislation. So, I urge
my colleagues to advance this legislation out of committee
today.
Thank you. And I yield back.
Chairman WILLIAMS. The gentleman yields back.
And I now recognize Ms. Goodlander for a statement on the
bill.
Ms. GOODLANDER. Thank you, Mr. Chairman.
I want to join in saying a word about our colleague,
Congressman Sylvester Turner. My heart breaks to hear about his
passing yesterday and my heart is with his constituents and
community in Texas.
I want to join my colleagues, too, in proudly supporting
H.R. 1642. I have had a chance in the last 61 days that I have
been in this job to meet with career and technical education
students and graduates all across my home state of New
Hampshire. They are our future and our small businesses are the
heart of our economy. I am really proud to support this bill
and urge all of our colleagues to do the same.
Thank you, Mr. Chair. I yield back.
The gentlelady yields back.
I now recognize Mr. Bresnahan for a statement on the bill.
Mr. BRESNAHAN. Thank you. Thank you, Mr. Chairman, for
introducing this important piece of legislation. I was proud to
be an original cosponsor of H.R. 1642, the Connecting Small
Business with Career and Technical Education Graduates Act of
2025.
Connecting our next generation of entrepreneurs and skilled
workers to careers and opportunities will be vital for the
future of small businesses in America. The resources and
expertise of Small Business Development Centers and Women
Business Centers can be the difference between a successful
business which provides jobs and grows our economy and another
missed opportunity.
I believe that the districts such as mine and many others
around the country are poised for growth and investment. We
cannot afford to miss these opportunities. H.R. 1642 will help
break down these barriers, barriers which hold back the future
of our nation. I look forward to seeing this bill passed today.
And I yield back.
Chairman WILLIAMS. The gentleman yields back. Are there any
other Members who wish to be recognized for a statement on the
bill?
All right. Seeing none, I would like to recognize the
Ranking Member to speak on the bill.
Ms. VELAZQUEZ. Thank you, Mr. Chairman. And thank you for--
I commend you for your commitment to helping small businesses
hire graduates of career and technical education programs and
also giving graduates the tools to launch their own small
businesses.
While a college education is a sure, fast way to secure a
successful career in today's global economy, it may not be the
most prudent path for every high school graduate. Career and
technical education programs offer viable alternatives. This
program trains students with a wide variety of skills,
oftentimes tailoring the curriculum to the workforce needs for
their local economy. According to the NFIB Small Business
Optimism Index, 35 percent of small businesses reported job
openings they could not fill. This bill will go a long way in
meeting the labor needs of small businesses and also give these
graduates the tools they need to launch and grow successful
small businesses.
So, I want to thank you, Mr. Chairman, Mr. Olszewski, and
Mr. Tran, Mr. Wied, and every other cosponsor of the bill. I
urge Members to support this bipartisan piece of legislation,
and yield back.
Chairman WILLIAMS. The gentlelady yields back. Does anyone
wish to offer an amendment?
All right. Seeing none, the question is on how favorably
reporting H.R. 1642, as amended, to the House.
All those in favor, say aye.
Opposed?
The motion carries.
Mr. WIED. Mr. Chairman, can I have a recorded vote?
Chairman WILLIAMS. Yes, sir. With what purpose does the
gentleman seek recognition for a recorded vote?
Mr. WIED. Mr. Chairman, can I have a recorded vote?
Chairman WILLIAMS. A recorded vote has been requested and a
roll call vote is ordered. So, pursuant to Committee rule 13
and House rule XI, further proceedings on the bill are
postponed.
H.R. 789
Okay. The Committee now moves to consideration of H.R. 789,
the Transparency and Predictability in Small Business
Opportunities Act introduced by Representatives Latimer and
Alford. The clerk will report the bill.
The CLERK. H.R. 789, a bill to require the----
Chairman WILLIAMS. Without objection, H.R. 789 is
considered as read and open for amendment.
I now recognize the bill's sponsor, Mr. Latimer, for a
statement on the bill.
Mr. LATIMER. Thank you. Thank you, Mr. Chairman. We
appreciate the Committee considering this bill which was passed
in the 118th Congress and to highlight why this important
legislation is needed. I want to recognize Congressman Alford
for his support of this bill. I know he will speak in a second.
The Transparency and Predictability in Small Business
Opportunities would improve accountability in the federal
contracting process for small businesses. Small business owners
are often resource-constrained. Every day these individuals
engage in a variety of business-related activities. And when
they submit a proposal to work with the federal government,
they invest considerable time and resources into making their
submission the best it can be. They are also forced to navigate
a complex and time-consuming contracting process while
balancing their other important responsibilities.
It can be confusing and deeply frustrating for a small
business owner if a federal agency decides to cancel a
solicitation without transparency into why that decision was
made. If we are serious about bringing more small businesses
into federal contracting, we must ensure that business owners
have the confidence and trust in their federal partners. In
this bill any plans to reissue the solicitation must be
identified. If an agency does not plan to reissue the
solicitation, the bill would create procedures for a small
business to receive assistance in identifying similar
contracting opportunities. I urge all my colleagues here to
support this important bill.
Thank you, Mr. Chairman, and I yield back.
Chairman WILLIAMS. The gentleman yields back.
I now recognize the bill's cosponsor, Mr. Alford, for a
statement on the bill.
Mr. ALFORD. Thank you, Mr. Chair.
I just also want to express my condolences to Sylvester
Turner's family, the mayor of Houston. I grew up in Baytown, 20
miles east of Houston, and he was a great leader. I am glad
that I took the opportunity to go across the aisle last week
and speak with him. And I am very sorry for the loss not just
for this side of the aisle, but for our body in general. When
good leaders come up here and make the sacrifices to be here,
it is noteworthy, and our condolences from this side.
That being said, I am honored to once again represent this
piece of legislation. Last session, Mr. Nfume and I worked on
this. And now, Mr. Latimer, it is good to work with you on
this. And thank you to our Chair and Ranking Member.
This Committee really exists in Congress to champion main
street, to ensure that the small businesses that employ about
half of all Americans can continue to thrive. Our role is to
help lower the barriers to creating small businesses and to
support small businesses that already exist. A major tool to
help existing small businesses are government contracts
specifically set aside for small businesses. However, federal
agencies cancel contract solicitations, often with no warning
and no reason, leaving the small businesses that spent
thousands or tens of thousands of dollars preparing a bid out
in the cold. This bill, the Transparency and Predictability in
Small Business Opportunities Act, would help address this
problem.
This legislation would require agencies to provide to the
SBA a justification for canceled contract solicitations.
Additionally, it would require the agency canceling the
contract solicitation to disclose available information about
plans to reissue similar solicitations. And finally, if the
agency does not plan on reissuing a solicitation, the agency's
director of small and disadvantaged business utilization must
assist the small business in identifying similar contracting
opportunities.
This is a commonsense bill for Main Street America, and
that's why I am proud to support this legislation with Mr.
Latimer that would help provide stability and predictability to
small business contractors.
Mr. Chair, I yield back.
Chairman WILLIAMS. The gentleman yields back. Are there any
other Members who wish to be recognized for a statement on the
bill?
Seeing none, I would like to recognize the Ranking Member
to speak on the bill.
Ms. VELAZQUEZ. Thank you, Mr. Chairman. I commend
Congressmen Latimer and Alford for their work on this important
and timely legislation.
In a hearing last year, we heard testimony from Andrew
Christ, a small employer who discussed how small businesses
spend a significant amount of time and money responding to a
solicitation for a government contract. He stated that putting
together a proposal costs him an average of $10,000 and the
government does not have to provide him with any assistance or
information if that solicitation is later canceled. While the
government has flexibility to change requirements and
solicitations as needed, and we do not change that with this
bill, small firms incur losses they cannot recoup when this
happens. Unfortunately, this bill will not make them whole, but
it will provide them with additional information to adjust
their operations and plans to move forward and, hopefully, to
continue their participation in the federal marketplace.
In 2021, the Department of Defense issued a broad request
for comments regarding barriers facing small businesses working
with them. In their response, the Women's Chamber of Commerce
stated that, and I quote, ``Numerous small business contracts
just go away without explanation or discussion with the
OSDBU.'' Providing a leader more predictability and stability,
as this bill will do, can help reduce the barriers that keep
small businesses from bidding on and winning government
contracts.
It is also a good reminder of why we must protect the SBA
and the OSDBU and arm them with carefully crafted and
deliberate authorities to advocate for small business
government contractors. One cancelled solicitation for a large
corporation is a blip on the radar, but for a small business
who has to decide where to invest their more limited resources,
those sum costs matter.
SBA plays a unique governmentwide role in shaping and
implementing contracting policies that are fair and provide
opportunity for small business. I am hoping that the committee
will work to ensure they continue to play this role and have
the right resources and tools like we give them with this bill
to advocate for small businesses working with any and all
federal agencies. I urge my colleagues to support this bill,
and I yield back.
Chairman WILLIAMS. The gentlelady yields back. I thank you
and I now recognize myself to speak in support of this
legislation for 5 minutes.
H.R. 789, the Transparent and Predictability in Small
Business Opportunities Act, is intended to assist small
businesses that submit bids on contract solicitations that are
later canceled. Submitting a bid on a government contract
requires tremendous time, effort, and money, But agencies often
cancel their solicitations regardless of the cost to small
business. This practice creates a fair amount of uncertainty
and disincentivizes small business participation in government
contracting.
The bill will require agencies to justify their decision to
cancel a contract solicitation to the SBA. It will also help
small businesses that submitted bids or canceled contracts find
other opportunities to compete for a contractor. Small
businesses deserve to be treated fairly in the contracting
process and to fully understand what opportunities are
available to them. This bill should and will ensure that
contracting opportunities are accessible and transparent so
small businesses are not left out in the cold after spending
months and valuable resources preparing a proposal. So, I urge
all of my colleagues to support H.R. 789.
Now, does anyone wish to offer an amendment?
Okay. Seeing none, the question is now on favorably of
reporting H.R. 789 to the House.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it. H.R. 789 is
agreed to.
Mr. ALFORD. Mr. Chair?
Chairman WILLIAMS. The Member is recognized.
Mr. ALFORD. I request a recorded vote, please.
Chairman WILLIAMS. A recorded vote has been requested and a
roll call vote is ordered. Pursuant to Committee rule 13 and
House rule XI, further proceedings on the bill are postponed.
H.R. 787
Okay. The Committee now moves to consideration of H.R. 787,
the Plain Language in Contracting Act, introduced by
Representatives LaLota and Tran. The clerk report the bill.
The CLERK. H.R. 787, a bill to require plain language----
Chairman WILLIAMS. Without objection, H.R. 787 is
considered as read and open for amendment.
The bill sponsor, Mr. LaLota, has an amendment in the
nature of a substitute at the desk. The amendment has been
distributed in advance. The clerk will report the amendment.
The CLERK. Amendment in the nature of a substitute to H.R.
787.
Chairman WILLIAMS. Without objection, the amendment is
considered as read and the substitute will be considered as
base text for the purpose of further amendment.
I now recognize the sponsor of the bill and the amendment,
Mr. LaLota, for a statement on the bill and the amendment.
Mr. LALOTA. Mr. Chairman, thank you.
As an attorney licensed to practice law in the great state
of New York, I wouldn't dare make any anti-lawyer jokes. I
certainly wouldn't say that we should hate lawyers. But a small
business ought not to have to hire a lawyer just to apply for a
simple government contract. Unlike large corporations, small
businesses lack teams of lawyers to navigate complex federal
procurement rules. Government contracts should be accessible,
not a bureaucratic maze favoring big firms. That is why I am
proud to reintroduce the Plain Language in Contracting Act,
ensuring federal agencies use clear, straightforward language
in solicitations. This will remove barriers, increase
transparency, and give small businesses a fair shot.
A naval postgraduate school study of 1 million DOD
solicitations found that less than 3 percent were in plain
English and most were rated difficult or very difficult to
read. With 33 million small businesses in America, only 74,000,
just 0.22 percent, successfully secure federal prime contracts.
Programs exist to help small businesses, but obscure and overly
technical language often shuts them out. If government
contracts remain too convoluted for even many attorneys to
understand, how can we expect small businesses and their owners
to navigate them?
I want to thank Chairman Williams and my colleagues,
Representatives Thanedar and Tran, for joining me in this
bipartisan effort. I urge all of my colleagues to support this
commonsense measure.
And, Mr. Chairman, I yield.
Chairman WILLIAMS. The gentleman yields back.
And I now recognize Mr. Tran for a statement on the bill
and the amendment.
Mr. TRAN. Thank you, Mr. Chairman, for this opportunity to
discuss an essential piece of legislation today, H.R. 787, the
Plain Language in Contracting Act. This bipartisan bill will
help us make great progress in getting new first-time small
businesses to apply for federal contracting opportunities and
ensure that they are written in plain language.
Far too often, bureaucratic barriers and complex government
jargon prevent small business owners, especially veterans and
immigrant entrepreneurs, from accessing and securing federal
contracting opportunities. The number of small business
contracting with government has been shrinking for years, a
roughly 40 percent decrease over the past decade. And I
consistently hear from small business owners in Orange County
that one of the main causes of this problem is that the
barriers to entry are simply too high. H.R. 787 will address
this barrier facing small business owners and mandate federal
agencies to use clear and accessible language and their
contracting opportunities.
I am proud to be the Democratic colead of this bill and I
want to thank Congressman LaLota from Long island for working
with me to improve SBA and simplify the federal contracting
process. Let's continue to empower local businesses and ensure
that every entrepreneur has the opportunity to succeed. I urge
my colleagues to support this important bipartisan bill.
Thank you and I yield back.
Chairman WILLIAMS. The gentleman yields back. Are there any
other Members who wish to be recognized for a statement on the
bill and the amendment?
Seeing none, I would like to recognize the Ranking Member
to speak on the bill and the amendment.
Ms. VELAZQUEZ. Thank you, Chairman Williams. And I really
appreciate working with you and for you working with us on the
amendment to ensure SBA and DOD are in sync on this effort and
that we have one standard for the small business government
contractors who support multiple general federal agencies. And
I appreciate Representative Tran for cosponsoring LaLota's
bill.
The Committee hears regularly about the complexity of the
government's procurement processes and how the requirements on
contractors, especially those seeking a federal contract for
the first time, can appear overwhelming. This complexity can be
further compounded by the language used in contracting
documents, which may be unfamiliar to a small business with no
previous government work. This bill seeks to provide clarity.
It requires certain contracting documents, including Requests
for Proposals and solicitations, to be written in a way that is
clear and concise and can be easily understood by a small
business.
The goals of this bill are commendable. There are certainly
ways in which the federal government can better communicate
with small businesses, and the language used around contracting
opportunity is one.
Thank you again and I yield back.
Chairman WILLIAMS. The gentlelady yields back and thank
you.
And I now recognize myself to speak in support of this
legislation.
Plain Language in Contracting Act is a vital piece of
legislation that will empower small businesses to have greater
ability to compete for valuable government contracts.
Currently, government contract solicitations are written in an
overly complex way that makes it difficult to navigate unless
you are an attorney. Small businesses often lack the army of
attorneys and contract specialists needed to understand these
contracts, which create difficulties in submitting successful
bids.
The wonky nature of this so-called government speak has
contributed to the shocking loss of small businesses in
government contracting. And over the past few years, the
Committee has heard firsthand testimony from small business
owners about how difficult it is to navigate the contracting
processes and red tape, which is made more difficult by unclear
or conflicting government speak. This only drives small
businesses away from competing for government work, decreasing
the resiliency of our industrial base. So, instead of providing
the best product or most valuable service to the taxpayer at
the best value, the firm with the best lawyers or contracting
officer often wins the contract. So, the Plain Language in
Contracting Act makes it easier for small business to navigate
federal contracting by requiring agencies to write plainly.
I want to thank the Ranking Member and her staff for
working with us in drafting the bill for the second Congress in
a row. And I will urge all my colleagues to vote for the Plain
Language and Contracting Act.
Now, does anyone wish to offer an amendment?
Seeing none, the question now occurs on the adoption of
the--on the substitute amendment offered, H.R. 787, by Mr.
LaLota.
All those in favor, say aye.
Opposed?
The opinion of the Chair, the ayes have it. The amendment
in the nature of a substitute to H.R. 787, is adopted.
Mr. LALOTA. Mr. Chairman?
Chairman WILLIAMS. Yes, sir.
Mr. LALOTA. No, go ahead. Keep going.
Chairman WILLIAMS. Okay. All right. Now the question asked
favorably reporting H.R. 787, as amended, to the House.
All those in favor say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it.
Mr. LALOTA. Mr. Chairman?
Chairman WILLIAMS. The Member seeks recognition.
Mr. LALOTA. I now request a recorded vote, sir.
Chairman WILLIAMS. Okay. A recorded vote has been
requested. A roll call vote is ordered. Pursuant to Committee
rule 13 and rule XI, further proceedings on the bill are
postponed.
H.R. 1621
The Committee now moves to consideration of H.R. 1621, the
Entrepreneurs with Disabilities Reporting Act of 2025,
introduced by Representatives McGarvey and Stauber. And the
clerk, will report the bill.
The CLERK. H.R. 1621, a bill to require the administrator
of the Small Business----
Without objection, H.R. 1621, is considered as read and
open for amendment.
I now recognize the bill's sponsor, Mr. McGarvey, for a
statement on the bill. Okay. Okay. He is not here right now. I
will now recognize Mr. Stauber for a statement on the bill.
Mr. STAUBER. Thank you, Mr. Chair.
I rise today in support of H.R. 1621, the Entrepreneurs
with Disabilities Act of 2025. And I thank Mr. McGarvey for
sponsoring this.
Across this nation, individuals with disabilities have the
talent, drive, and vision to start their own businesses, yet
many face challenges that make entrepreneurship unnecessarily
difficult. These are not challenges of ability, but of access:
access to capital, resources, and the support needed to turn
their ideas into successful businesses. The Entrepreneurs with
Disabilities Act ensures that we take a hard look at the
obstacles standing in the way of aspiring entrepreneurs with
disabilities. It directs the Small Business Administration to
assess whether current programs are effectively serving these
individuals and to identify where improvements are needed.
I would like to thank again, my colleague from Kentucky,
Mr. McGarvey, for introducing the bill. If we are serious about
fostering economic growth and opportunity, we cannot leave
behind the millions of Americans with disabilities who want to
contribute, innovate, and build something of their own. This is
not just about fairness. It is about recognizing the economic
power and potential of individuals with disabilities. Removing
barriers to entrepreneurship benefits not only them, but also
our entire communities, our small businesses, and the nation as
a whole. I urge my colleagues to support this commonsense
legislation so that all Americans, regardless of ability, have
the opportunity to succeed.
Thank you and I yield back.
Chairman WILLIAMS. The gentlemen yields back. Are there any
other Members who wish to be recognized for a statement on the
bill?
Ms. SIMON. Yes, I would love to be recognized.
Chairman WILLIAMS. So moved.
Ms. SIMON. Thank you.
Well, thank you, Mr. Chair, and thank you, Ranking Member
Velazquez. And I want to thank my colleague, Representative
Stauber. This is an amazingly important bill, particularly at
this time. Thank you for partnering with me and this side of
the aisle. I am proud to support the ThinkDIFFERENTLY About
Disability Employment Act, which takes an important and
critical step at this point in time. And this bill really is
about including all of us, expanding economic opportunity to
people with disabilities like myself. Small business ownership
has long been a key pathway to success in America. We know
this.
We also know that people with disabilities take up
entrepreneurship at twice the rate of those without
disabilities. Because folks know, particularly those in the
disability community, trying to enter the entrepreneurial
workforce is oftentimes our only way at making ends meet. Able
bodied businesses, often, despite the ADA, don't make the
necessary accommodations to support our sustainability in the
workplace. This bill opens up doors for employment and
entrepreneurship in the disability community by strengthening
collaboration between small businesses, Small Business
Administration, and the National Council on Disability.
Right now, unemployment rates for people with intellectual,
physical, developmental disabilities remain alarmingly high at
almost 80 percent, leaving far too many excluded from the
workforce and living up to their potential. We know that by
hiring individuals with disabilities, it is not just the right
thing to do, it is also good for our economy. U.S. GDP would
grow by $25 billion if we close the employment gap between
people with disabilities and people without.
Our full participation in the workplace strengthens our
workforce overall and drives economic growth. We know this.
This bill helps us identify barriers that employees and
employers face while ensuring that people with disabilities
have access to meaningful career opportunities. I am so proud
to support this effort. It is extremely timely. And I look
forward to seeing its positive impact all across our country.
Thank you. And I yield back.
Chairman WILLIAMS. The gentlelady yields back. Are there
any other Members who wish to be recognized for a statement on
the bill?
Mr. ALFORD. Mr. Chair.
Chairman WILLIAMS. Yes, sir.
Mr. ALFORD. I would like to be recognized to speak, please.
Chairman WILLIAMS. So moved, the gentlemen from Missouri.
Mr. ALFORD. Thank you, Mr. Chair. And thank you,
Congressman Stauber, for your leadership on this very important
issue. Individuals with disabilities, or as I like to call it,
different abilities, often face additional barriers to
traditional employment. This legislation seeks to help those
Americans with different abilities by requiring the SBA and the
National Council on Disability to enter into a memorandum of
understanding to collaborate on employment and entrepreneurship
opportunities for folks who are differently abled. I am proud
to support this legislation to help ensure that all Americans,
all Americans, can find dignity in the workplace.
Thank you. And I yield back.
Chairman WILLIAMS. The gentleman yields back. Are there any
other Members who wish to be recognized for a statement on the
bill? Seeing none, I would like to recognize the Ranking Member
to speak on the bill.
Ms. VELAZQUEZ. Thank you, Mr. Chairman. And I want for the
record to show that Mr. McGarvey, who is the main sponsor of
the bill, is not here because he is the Ranking Member on the
Veterans' Subcommittee and he is attending a hearing.
Chairman WILLIAMS. So moved.
Ms. VELAZQUEZ. I am pleased to support the legislation
offered by Mr. McGarvey and Mr. Stauber, which will require the
SBA to submit a comprehensive report to Congress on the
challenges facing entrepreneurs with disabilities. There are 44
million people with disabilities in the United States.
While progress has been made to increase employment rates,
disabled individuals lag behind people without disabilities.
Only 23 percent participate in the labor force.
Entrepreneurship can be a way to address employment gaps and
provide a path to prosperity. It offers more flexibility,
inclusion, and the ability to work remotely. In fact, 1.8
million small businesses are owned by people with disabilities.
I strongly support this bill, which will require SBA to
conduct comprehensive study of the resources that are available
to entrepreneurs with disabilities, examine their
effectiveness, and determine what actions need to be taken to
help support entrepreneurs with disabilities.
I yield back to you.
Chairman WILLIAMS. The gentlelady yields back and thank you
for that. And I now recognize myself to speak in support of
this legislation. H.R. 1621, the Entrepreneurs with
Disabilities Reporting Act, will require SBA to issue a report
to Congress on the challenges individuals with disabilities
face when starting a business. It will also examine existing
resources across the federal government that are tailored to
help such individuals.
The Government Accountability Office estimates that dozens
of programs across nine federal agencies support employment
opportunities for individuals with disabilities. Unfortunately,
federal agencies often fail to coordinate or collaborate on
such programs to ensure that their efforts are efficient and
not duplicative. This commonsense legislation requires the SBA
carefully examine the fragmented system and do its part to
consolidate and streamline efforts to help individuals with
disabilities.
I thank, also, Representatives McGarvey and Stauber for
introducing this legislation, and urge all our Members to vote
yes. Does anyone wish to offer an amendment? There is an
amendment at the desk. We will briefly pause. Well, okay.
Seeing no amendments, the question is now in favor of reporting
H.R. 1621 to the House.
All those in favor, say aye.
All those opposed, no.
In the opinion of the Chair, the ayes have it.
Mr. STAUBER. Mr. Chair.
Chairman WILLIAMS. Member is recognized.
Mr. STAUBER. Mr. Chair, may I request a recorded vote?
Chairman WILLIAMS. A recorded vote has been requested and
all roll call vote is ordered. Pursuant to Committee Rule 13
and House Rule 11, further proceedings on the bill are
postponed.
H.R. 1634
The committee now moves to consideration of H.R. 1634, the
ThinkDIFFERENTLY About Disability Employment Act, introduced by
Representative Stauber and Simon. The bill is also co-sponsored
by Representatives Alford and Pappas and the clerk will report
the bill.
The CLERK. H.R. 1634, a bill to provide for----
Chairman WILLIAMS. Without objection, H.R. 1634 is
considered and read and open for amendment. I now recognize the
bill sponsor Mr. Stauber for a statement on the bill.
Mr. STAUBER. Thank you, Mr. Chair. I rise today to speak in
favor of my bill, H.R. 1634, ThinkDIFFERENTLY About Disability
Employment Act. As a father to a young man with down syndrome,
I have seen firsthand the potential talent and determination
individuals with disabilities bring to all of our communities.
Yet far too often, they face unnecessary barriers to employment
and entrepreneurship. These roadblocks do not just limit their
opportunities. They deprive our economy of their incredible
contributions.
The ThinkDIFFERENTLY About Disability Employment Act takes
a critical step toward breaking down these barriers. This bill
directs the Small Business Administration and the National
Council on Disability to work together in providing resource
and assistance for individuals with disabilities who want to
start their own businesses or find meaningful employment. It
also ensures that small businesses have the guidance they need
to hire and support employees with disabilities.
I want to thank Representatives Simon, Alford, and Pappas
for their support of this important legislation. This bill is
not just about helping those with disabilities find jobs. It is
about recognizing their strengths, expanding economic
opportunities, and fostering a more inclusive workforce.
Individuals with disabilities should never be overlooked. They
should be empowered. I urge my colleagues to support this
legislation so that every American, regardless of ability, has
the opportunity to contribute, succeed, and thrive in our
economy.
Mr. Chair, I yield back.
Chairman WILLIAMS. The gentlemen yields back. I now
recognize Ms. Simon for a statement on the bill.
Ms. SIMON. Representative--Thank you, Mr. Chair.
Representative Stauber, I want to thank you for your leadership
and it has been a joy to watch you and your leadership putting
folks with disabilities first and centering them, understanding
that there are so few who are leading in that space. Thank you
so much for your commitment not only to your son, but the
disability community throughout the United States. We look to
your leadership and I am certainly learning from your
leadership and hope to partner with you on numerous efforts
during our time here in Congress.
I won't repeat what I said earlier, but knowing that this
committee is going to be standing front and center in this
Congress, in the 119th Congress, advocating and ensuring that
folks who want not a handout, but a hand up, that they get the
resources that they so deserve. The innovation, the hard work
ethic of members of the disability community throughout this
country should be met with the resource to not only uplift them
individually, but to uplift our communities.
I am so excited to be a co-sponsor on this bill and I look
forward not only to this committee continuing to advocate for
the needs and wellbeing for our disabled Americans, but showing
the Congress at large how it is done. Thank you, Representative
Stauber.
Thank you Ranking Member and Mr. Chair. And I will yield
back.
Chairman WILLIAMS. Gentlelady yields back. Are there any of
the Members who wish to be recognized for a statement on the
bill? Okay. Seeing none, I would like to recognize the Ranking
Member to speak on the bill.
Ms. VELAZQUEZ. Thank you Mr. Stauber and Ms. Simon, for
introducing this bill. And I just would like to remind you that
when we conducted a hearing on this topic, I believe that that
was one of the most moving experience that we all had with the
witnesses that participated in the hearing that we conducted to
discuss this, the disabilities, individuals with disabilities
in this country. And to have the opportunity to listen to their
stories was something that is lacking in the hearings that are
conducted here. Because we need to put a face in order to
understand the important role that we and this committee could
play in improving people's lives.
So again, Mr. Stauber and Ms. Simon, thank you so much for
this legislation. As I said before, there is only 23 percent of
individuals with disabilities that participate in the
workforce. So we need to do better. Despite having the skills
and desire to work, individuals with disabilities face barriers
to employment, including discrimination, lack of flexibility
and transportation. Helping small firms hire people with
disabilities can have a direct benefit on their company and in
turn boost the overall economy.
Through this bipartisan legislation, SBA can collaborate
with the National Council on Disability to help employers hire
people with disabilities and provide much needed support to
these entrepreneurs.
I am pleased to support this bill, but I will be remiss if
I didn't mention that while we are working together to improve
the lives of the disabled, President Trump is creating new
barriers by terminating the diversity, equity, and inclusion
policies which have been critical to leveling the playing field
for individuals with disability.
I thank my colleagues for their support of this bill and I
yield back.
Chairman WILLIAMS. The gentlelady yields back and I thank
you for that and now recognize myself to speak in support of
this legislation. Individuals with disabilities are more likely
to be self-employed. However, resources tailored to
entrepreneurs with disabilities at the SBA are sorely lacking.
H.R. 1634, the ThinkDIFFERENTLY About Disability Employment
Act will require the SBA to enter into a memorandum of
understanding with the National Council on Disability and to
collaborate on entrepreneurship and employment opportunities
for individuals with disabilities. The National Council on
Disabilities mission is to provide recommendations to those
policymakers on issues protecting or impacting individuals with
disabilities. By ensuring they coordinate with the SBA,
Entrepreneurs with disabilities will have greater access to
resources needed to achieve the American Dream.
I want to thank Representative Stauber for his commitment
to ensuring Congress works to pave the way to success for
entrepreneurs, employees with disabilities. And I also thank
Ms. Simon for introducing this legislation. So, I urge all my
colleagues to vote yes on this legislation. Does anyone wish to
offer an amendment? Seeing none, the question is now in favor
of reporting H.R. 1634 to the House.
All those in favor, say aye.
All those opposed, no.
In the opinion of the Chair, the ayes have it.
Mr. STAUBER. Mr. Chair.
Chairman WILLIAMS. Recognized Member.
Mr. STAUBER. Mr. Chair, I request a recorded vote.
Chairman WILLIAMS. Recorded vote has been requested. A roll
call vote is ordered, and pursuant to Committee Rule 13 in
House Rule 11, further proceedings on the bill are postponed.
H.R. 1816
Committee now moves to consideration of H.R. 1816, the WOSB
Accountability Act introduced by Ranking Member Velazquez and
Mr. LaLota. The clerk will report the bill.
The CLERK. H.R. 1816 to establish requirements----
Chairman WILLIAMS. Without objection----
The CLERK.--relating----
Chairman WILLIAMS. Without objection, H.R. 1816 is
considered as read and open for amendment. I now recognize the
bill sponsor Ranking Member Velazquez for a statement on the
bill.
Ms. VELAZQUEZ. Thank you, Chairman Williams and Congressman
LaLota for co-sponsoring this bill. Our committee has a
bipartisan history of working together to strengthen and
protect the SBA's contracting programs. This legislation
continues that tradition. It will require federal agencies to
only count contracts awarded to SBA 35 WOSB toward the 5
percent contracting goal.
We want to ensure that women-owned firms are who they say
they are because that is who the program is designed for. We
also want federal agencies to have confidence working with
WOSBs knowing that SBA checked and verified them. The
government-wide WOSB goal is not regularly met, but there are
two other goals that are just important for women owned firms.
First, each federal agency attempts to meet their own 5 percent
goal. This help WOSBs with products or services unique to that
agency's mission compete for their first contract. Once a WOSB
sells their product to one federal agency, the company has met
the government's requirements, and they can more easily sell
those products to other agencies. This process assists in
expanding their markets and diversifying their customer base.
Second, large prime contractors have to meet subcontracting
goals. For many small businesses, subcontracting is how they
get a foot in the door to the federal marketplace. Even then,
the numbers show that women-owned small businesses are not
seeing the contracting opportunities that should accompany
their level of participation in the federal marketplace. Of the
nearly $31 billion awarded to women-owned small businesses in
fiscal year 2023, less than $2 billion was awarded in a way
that only SBA 35 WOSBs could compete. This represents only 0.3
percent of all eligible contract dollars and shows the WOSBs
are competing for and winning work against other small
businesses and larger companies. The goals are not anti-
competition, rather they foster and enhance it.
Mr. Chairman, I appreciate your willingness to work with us
to provide sufficient time and to ensure WOSBs will not be
penalized if SBA face delays.
Thank you and I yield back.
Chairman WILLIAMS. The gentlelady yields back. I now
recognize Mr. LaLota for a statement on the bill.
Mr. LALOTA. Mr. Chairman, this bipartisan bill addresses
two questions. One, should federal contracts meant for women-
owned small businesses actually go to women owned small
businesses? Or two, should contracts meant for women go to
fraudsters, men, exploiting the system for financial gain? The
answer is pretty obvious to us. The bipartisan group of members
behind this effort want to guarantee that contracts meant to go
to women actually go to women.
Right now, both certified and self-certified businesses
count towards the government's WOSB contracting goals, creating
a misleading representation of how many contracts actually go
to legitimate women-owned firms. Unfortunately, this issue is
not new. The SBA's inspector general has consistently warned
that self-certification creates a risk for fraud. This was
especially apparent with the SBA's COVID-19 lending programs
where fraudulent self-certification led to billions of dollars
in taxpayer losses.
That is why I'm proud to join with Ranking Member Velazquez
, my colleague from across the aisle and fellow New Yorker in
championing the Women-Owned Small Business Accountability Act.
This legislation will phase out self-certification from
government wide procurement goals, ensuring that only verified
and certified women-owned businesses are counted towards
federal contracting requirements. In doing so, we will prevent
abuse and fraud in federal small business contracting goals,
ensure contracts go to legitimate women-owned small businesses,
and encourage more federal agencies to award contracts to fully
certified women-owned businesses.
If we truly want to empower women in business, we need to
make sure the system works for them, not against them. It is
time to stop allowing fraudsters to steal opportunities meant
for legitimate women entrepreneurs. I want to thank Chairman
Williams and Ranking Member Velazquez for their bipartisan
leadership on this very important issue that will ensure women-
owned small businesses owners get the opportunities they
deserve and the ones they have earned. I urge all of my
colleagues to support this legislation and vote yes on the WOSB
Accountability Act.
Thank you, Chairman. I yield.
Chairman WILLIAMS. The gentleman yields back. Are there any
of the Members who wish to be recognized for a statement on
this bill? Okay. I now recognize myself to speak in support of
this legislation for five minutes.
H.R. 1816, the WOSB Accountability Act would remove self-
certified firms from inclusion in the government wide women-
owned small business procurement goals. This effectively
eliminates the incentive to self-certify in order to utilize
small business and the set aside contract competitions. And
after years of hard work improving self-certification and other
contracting goals, only two statutory defined goals remain open
to fraud. The women-owned small business and the small,
disadvantaged business procurement goals.
There are ongoing conversations about how Congress can
better align small business contracting to rely on merit-based
opportunities while ensuring a resilient American industrial
base. While those discussions continue to play out, we can
still address avenues for fraudsters who take advantage of the
system that is currently in place. And that is what we are
doing here today. Cutting fraud in the current contract and
operations defined in statute. Fraudsters shouldn't be taking
advantage of existing programs while the government looks to
ensure the future of small business procurement is based on
merit.
It has been known for years that self-certification in any
program presents clear pathway for fraud and abuse. And self-
certification SBA's pandemic loans opened the door even more
for fraudsters. However, because self-certification has been
allowed for years in government contracting, the floodgates are
even installed for WOSB and SDB procurement. And this allowed
the Biden Administration to redistribute contracting priorities
to SDP firms who simply self-certify themselves by checking the
box online, prioritizing DEI agenda to the detriment of small
businesses like those owned by self-service disabled veterans.
So I am proud of this committee's work to remove self-
certification and other programs. Now it is time to do the same
with WOSB and program to help ensure integrity across SBA
programs, while we look to ensure no small business is limited
in their ability to compete.
I urge all my colleagues to join me in supporting H.R. 1816
to address current fraud concerns and with the hope that we can
find common ground to make meaningful merit-based improvements
to federal procurement. Does anyone wish to offer an amendment?
Seeing none, the question is now in favor of reporting H.R.
1816 to the House.
All those in favor, say aye.
All those opposed, no.
In the opinion of the Chair, the ayes have it.
Mr. LALOTA. Mr. Chairman.
Chairman WILLIAMS. Member recognized.
Mr. LALOTA. I request a recorded vote, sir.
Chairman WILLIAMS. A recorded vote has been requested and a
roll call vote is ordered. Pursuant to Committee Rule 13 of
House Rule 11, further proceedings on the bill are postponed.
H.R. 1804
Okay. The committee now moves to consideration of H.R.
1804, the 7(a) Loan Agent Oversight Act introduced by
Representatives Meuser and McIver. The clerk will report the
bill.
The CLERK. H.R. 1804, a bill to amend the Small Business
Act----
Chairman WILLIAMS. Without objection, H.R. 1804 is
considered read and open for amendment. I now recognize the
bill sponsor Mr. Meuser for a statement on the bill.
Mr. MEUSER. Well, thank you very much, Mr. Chairman. As
this committee has discussed extensively in recent months, it
is imperative that the SBA has the oversight capabilities in
place to responsibly manage its loan programs. The SBA
inspector general has reported that nearly 15 percent of all
7(a) loans involved a loan agent. Unfortunately, the OIG has
also reported within the last decade that there has been more
than $335 million in documented loan agent fraud.
My bill, H.R. 1804, 7(a) Loan Agent Oversight Act, will
require the SBA's Office of Credit Risk Management to collect
and report the number of fraudulent loans and a default rate on
loans where a loan agent is involved in the transaction.
The SBA 7(a) loan program exists to assist American small
businesses in obtaining affordable access to capital. Given
this important mission, Congress and the SBA must conduct the
appropriate level of oversight and ensure the program remains a
successful public-private partnership.
I look forward to working with Administrator Loeffler to
continue the 7(a) program's record of success. And I am pleased
to see that her day-one priorities include restoring the
prudent underwriting standards that existed in the program
before the Biden administration removed them. Last Congress,
this legislation passed that of the committee unanimously and I
look forward to a similar result today.
Mr. Chairman, thank you and for bringing this bill forward.
And I urge my colleagues to support its passage. I yield back.
Chairman WILLIAMS. The gentlemen yields back. I now
recognize Ms. McIver for a statement on the bill.
Mrs. MCIVER. Thank you. I just want to start in joining my
colleagues with offering sincere condolences to the Rep.
Turner's family and his friends and to the people of Texas.
Definitely a huge loss for this body.
Thank you, Chairman, and to my Ranking Member for having
this markup today. I would like to speak in support of H.R.
1804, the 7(a) Loan Agent Oversight Act, which I co-lead with
my colleague Congressman Meuser.
The Section 7(a) loan program is the Small Business
Administration's flagship loan program, providing a critical
financial lifeline for small businesses that struggle to secure
traditional loans, with the SBA guaranteeing 50 to 90 percent
of loan amounts to encourage private sector lending. While we
must applaud the work done by the 7(a) program to expand access
to capital for small businesses, we must, at the same time,
work to ensure we keep a keen eye on how this program is
administered to protect small businesses.
This issue is particularly important for the people of my
district, the 10th District of the great state of New Jersey,
where small businesses, especially those in underserved
communities, rely on SBA loans to start and grow their
enterprises. Without sufficient oversight, fraudulent or
predatorial loan agent practices can disproportionately harm
minority-owned businesses, startups, and those already facing
systematic barriers to access to capital.
As we conclude the bills to be considered during this
markup, let us make sure to continue our efforts to foster a
more secure lending environment for Americans--for America's
small businesses, which serve as vital vehicles for economic
prosperity and advancements for millions of hardworking
Americans.
With that, I yield back.
Chairman WILLIAMS. The gentlelady yields back. Are there
any other Members who wish to be recognized for a statement on
the bill? Seeing none, I would like to recognize the Ranking
Member to speak on the bill.
Ms. VELAZQUEZ. Thank you, Mr. Chairman. I want to start off
by thanking the bill's co-sponsors, Mr. Meuser and Ms. McIver,
for working in a bipartisan way on this legislation.
The 7(a) Loan Agent Oversight Act requires the Director of
the Office of Credit Risk Management to submit annual reports
to Congress assessing and analyzing the performance of 7(a)
loans generated through loan agent activity. The report will
also include an analysis, without naming individuals, of the
risks created by individual agents responsible for generating
at least 1 percent of the 7(a) portfolio.
Dating back to 1998, the SBA's Office of Inspector General
has repeatedly identified the increased risk to the 7(a)
portfolio created by loan agents as a top agency management
challenge. Heeding the OIG's warning, the SBA has taken several
steps over the years to identify and track loan agents. The SBA
created and then enhanced its Fee Disclosure and Compensation
Agreement, commonly known as Form 159, and required this form
to be electronically submitted through the Capital Access
Financial System. And I hope the form is updated before the
bill moves to the floor.
According to an October 2023 OIG report, the SBA has made
great progress in resolving its oversight of loan agents and
therefore determined that this management challenge had been
appropriately resolved and closed out the recommendation. Yet,
because loan agent involvement in the 7(a) program is so
significant and has been a long-standing concern for this
committee, it is important for Congress to continue to have the
oversight tools to monitor loan agent involvement in the
Agency's flagship program.
I urge all Members to support the bill and I yield back,
Mr. Chairman.
Chairman WILLIAMS. the gentlelady yields back. I now
recognize myself to speak in support of this legislation. H.R.
1804, the 7(a) Loan Agent Oversight Act is an important piece
of legislation that brings much-needed transparency to fraud in
the flagship 7(a) loan program. Specifically, when third-party
loan agents are involved in the lending process.
Loan agents play an essential role with SBA lending
programs. They facilitate access to capital by connecting
prospective borrowers with lenders offering SBA lending
products. Despite risk and loss being reported at times as a
result of loan agents, the ability for the SBA to track loan
agent data accurately presents a challenge.
This commonsense legislation requires the Small Business
Administration's Office of Credit Risk Management to submit an
annual report containing specific information about 7(a) loans,
including the number and dollar value of fraudulent loans
associated with the loan agreements. And this is information
the SBA already collects. And requiring annual reporting will
bring about greater visibility.
In supporting President Trump's agenda to root out fraud
and abuse, the bill is about providing accountability and
protections for the American taxpayer in Main Street America
which can be done immediately.
And I want to personally thank my colleague from
Pennsylvania, Mr. Meuser for introducing this bill. It is a
great bill. And I urge my colleagues to support H.R. 1804.
Does anyone wish to offer an amendment? All right. Seeing
none, the question is now in favor of the report of H.R. 1804
as amended to the House.
All those in favor, say aye.
All those opposed, no.
In the opinion of the Chair, the ayes have it. H.R. 1804 is
agreed to.
Mr. MEUSER. Mr. Chairman.
Chairman WILLIAMS. So moved. Yes.
Mr. MEUSER. Like to be recognized.
Chairman WILLIAMS. You are.
Mr. MEUSER. I would like to request a recorded vote.
Chairman WILLIAMS. Okay. Recorded vote has been requested
and the roll call vote is ordered. Pursuant to Committee Rule
13 and House Rule 11, further proceedings on the bill are
postponed.
Now, because we have several Members who would like to
attend Mass at 11:00 a.m., we will recess until 11:45 a.m. We
will provide instructions at that time on electronic voting at
11:45. So, if you could please be on time, that would be great.
Committee stands in recess.
[Recess.]
Chairman WILLIAMS. Okay. The committee will now come to
order. The committee will resume consideration of the bills
which roll call votes were requested and postponed. We will
start with H.R. 1642. The question now is on adopting H.R. 1642
and ordering it favorably to the House. The clerk will open the
vote.
[The vote was taken.]
Chairman WILLIAMS. Okay. Are there any other Members who
have not voted or wish to change their vote? Okay. If not, the
clerk will close the vote. The clerk will report.
The CLERK. Mr. Chairman, on this vote, the ayes are 25 and
the noes are 0.
Chairman WILLIAMS. Okay. The motion is agreed to, and H.R.
1642 is adopted and will be reported favorably to the House.
All right, the question now is on adopting H.R. 789, and
ordering it favorably to the House. The clerk will open the
vote.
[The vote was taken.]
Chairman WILLIAMS. Are there any other Members who have not
voted or wish to change their vote? Okay. If not, the clerk
will close the vote and the clerk will report.
The CLERK. Mr. Chairman, on this vote, the ayes are 25 and
the noes are 0.
Chairman WILLIAMS. All right. The motion is agreed to, and
H.R. 789 is adopted and will be reported favorably to the
House. The question now is on adopting H.R. 787 as amended and
ordering it favorably to the House. The clerk will open the
vote.
[The vote was taken.]
Chairman WILLIAMS. All right. Are there any other Members
who have not voted or wish to change their vote? If not, the
clerk will close the vote and the clerk will report.
The CLERK. Mr. Chairman, on this vote, the ayes are 25 and
the noes are 0.
Chairman WILLIAMS. All right, the motion is agreed to, and
H.R. 787 is amended, and is adopted, and will be reported
favorably to the House.
Question now is on adopting H.R. 1621 ordering it favorably
to the House. The clerk will open the vote.
[The vote was taken.]
Chairman WILLIAMS. Are there any other Members who have not
voted or wish to change their vote? If not, the clerk will
close the vote and the clerk will report.
The CLERK. Mr. Chairman, on this vote, the ayes are 25 and
the noes are 0.
Chairman WILLIAMS. Motions agreed to, and H.R. 1621 is
adopted and will be reported favorably to the House.
The question now is on adopting H.R. 1634 and ordering it
favorably to the House. The clerk will open the vote.
[The vote was taken.]
Chairman WILLIAMS. Are there any of the Members who have
not voted or wish to change their vote? If not, the clerk will
close the vote and will report.
The CLERK. Mr. Chairman, on this vote, the ayes are 25 and
the noes are 0.
Chairman WILLIAMS. The motion is agreed to, and H.R. 1634
is adopted and will be reported favorably to the House.
The question now is on adopting H.R. 1816 and ordering it
favorably to the House. The clerk will open the vote.
[The vote was taken.]
Chairman WILLIAMS. Are there any other Members who have not
voted or wish to change their vote? If not, the clerk will
close the vote and the clerk will report.
The CLERK. Mr. Chairman, on this vote, the ayes are 25 and
the noes are 0.
Chairman WILLIAMS. The motion is agreed to, and H.R. 1816
is adopted and will be reported favorably to the House.
The question now is adopting H.R. 1804 in ordering it
favorably to the House. The clerk will open the vote.
[The vote was taken.]
Chairman WILLIAMS. Are there any other Members who have not
voted or wish to change their vote? If not, the clerk will
close the vote and the clerk will report.
The CLERK. Mr. Chairman, on this vote, the ayes are 25 and
the noes are 0.
Chairman WILLIAMS. H.R. 1804 is adopted. The motion is
agreed to and will be reported favorably to the House.
Now, without objection, the committee staff is authorized
to make technical and conforming changes. And Members have two
business days to file additional supplemental dissenting and
minority views. I want to thank all of you for being here
today. This was certainly a bipartisan effort and it shows it
can be done. And if there is no further business, this
concludes today's markup. Without objection, the committee
stands adjourned.
[Whereupon, at 12:03 p.m., the committee was adjourned.]
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