[House Hearing, 119 Congress]
[From the U.S. Government Publishing Office]
MEMBER DAY
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HEARING
BEFORE THE
COMMITTEE ON SMALL BUSINESS
UNITED STATES
HOUSE OF REPRESENTATIVES
ONE HUNDRED NINETEENTH CONGRESS
FIRST SESSION
__________
HEARING HELD
MAY 6, 2025
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[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Small Business Committee Document Number 119-010
Available via the GPO Website: www.govinfo.gov
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U.S. GOVERNMENT PUBLISHING OFFICE
60-426 WASHINGTON : 2025
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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
JIMMY PATRONIS, Florida
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. Derek Tran.................................................. 2
WITNESSES
Hon. Mike Kelly.................................................. 4
Hon. James C. Moylan............................................. 7
Hon. Tony Wied................................................... 8
Hon. Gus M. Bilirakis............................................ 9
Hon. Ben Cline................................................... 10
Hon. LaMonica McIver............................................. 11
Hon. Brian Jack.................................................. 12
MEMBER DAY
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TUESDAY, MAY 6, 2025
House of Representatives,
Committee on Small Business,
Washington, DC.
The Committee met, pursuant to call, at 1:00 p.m., in Room
2360, Rayburn House Office Building, Hon. Roger Williams
[chairman of the Committee] presiding.
Present: Representatives Williams, Patronis, Wied, Jack,
Finstad, Tran, McIver, and Simon.
Chairman WILLIAMS. Before we get started, I want to
recognize Ms. Simon, who is going to lead us in the pledge and
the prayer. Would you please stand?
Ms. SIMON. [Audio malfunction] And we acknowledge that you
put us here to serve and to speak truth and to be together to
do the right thing. The right thing meaning your way and your
stead. The beautiful and amazing guests that we have here today
amplify the tapestry of this beautiful nation that you have set
forth and you allow us to be in, and we are so thankful.
Heavenly Father, in your name, in the name of your son, Jesus
Christ, we say amen.
I pledge allegiance to the flag of the United States of
America. And to the Republic for which it stands, one nation
under God, indivisible, with liberty and justice for all.
Chairman WILLIAMS. Good morning or good afternoon. I now
call the Committee on Small Business to order. Without
objection, the Chair is authorized to declare a recession of
the committee at any time. I now recognize myself for my
opening statement.
Welcome to today's House Committee on Small Business
Opening Day hearing or Member Day hearing. I want to thank each
of you for taking the time to come before the committee to
share what you are hearing from small business owners in your
districts. Member Day is an opportunity for us to get a pulse
on the issues facing Main Street America. We deeply value your
time and the voice of you and your constituents.
Now, to me, owning a small business embodies the very
essence of the American dream. The opportunity for an American
from any background to take risk, work hard, and build a better
future for themselves, their families, and their communities.
Our economy depends on small business and the workers they
employ. In fact, 99 percent of businesses are small, and they
employ half of American workers. From local manufacturers to
retail employees, service workers, and bankers, small
businesses are the heartbeat of our economy, shaping their
communities through their dedication, creativity, and
resilience.
It is no secret that small businesses have faced historic
challenges over the past four years: the COVID-19 pandemic,
out-of-control inflation, broken supply chains, high interest
rates, and a National labor shortage. To add insult to injury
and over-regulation, bad policy under the previous
administration hurts small businesses even further. Every extra
hour of paperwork is one less hour they can tend to their
personal livelihoods, and every inflated tax is an extra dollar
that could have gone back into their business. We see hope on
the horizon through a pro-business administration committed to
lowering taxes and cutting regulations. House Republicans are
working with President Trump and Ambassador Loeffler to create
an environment where businesses can thrive. We salute the
entrepreneurs who continue to fight and give selflessly back to
their communities. We are eager to enact policy solutions that
will help have a path toward success for both now and the
future.
Here on the Committee on Small Business, our mission is to
listen, learn, and better understand the challenges of
committees' opportunity impacts on Main Street America. That is
why we look forward to hearing from representatives from across
the country as they recount the experiences of small business
owners in their district. Today's conversation will shed light
on many of these challenges plaguing American small business.
Increasing the dialogue between Members can--and off the
committee--can only strengthen and broaden our understanding of
how to better serve our nation's biggest job creators.
I want to thank all of you for being here today. I am
looking forward to today's conversation. With that, I yield to
Mr. Tran from the great state of California for opening
remarks.
Mr. TRAN. Thank you, Mr. Chairman. Today we will hear
directly from our fellow Members of Congress about their views
on the federal programs and policies that promote small
business creation and growth. In the last four years, our
nation has seen an unprecedented small business boom and come
back in the face of an equally unprecedented global pandemic
and recession. Under the previous administration, main street
received critical assistance and investment from historic
legislative victories, putting our economy on a uniquely strong
path to recovery. Small employers startup--tech startups--
operating out of their garages, family farms, and main street
restaurants all flourished in the last four years. They are
joined by 22 million new small businesses. We are well on our
way to a slice of the American dream.
But since then, the Trump administration has proven to be a
nightmare for entrepreneurs. Members of both parties are
hearing at town halls nationwide that America's main streets
are increasingly threatened by the economic uncertainty and
chaos emanating from the Trump administration's policies. In
particular, President Trump's tariffs imperil the livelihoods
of millions of American entrepreneurs and employers, all of
whom are staring down added costs ranging from tens of
thousands to hundreds of thousands. In fact, 88 percent of
small firms rely upon imports for the goods they produce and
sell, with many inputs and components lacking viable domestic
alternatives. Furthermore, the suddenness of these tariffs, as
well as their pauses and increases, ignores how most businesses
operate regardless of their size. As the White House repeatedly
flip-flops on tariffs, small business owners and their
customers cannot reasonably predict how products will be priced
next month, next week, or even tomorrow.
Small business owners and even the U.S. Chamber of Commerce
are begging the Trump administration for immediate tariff
relief. And the White House has spurned their pleas for help,
instead promising tax cuts for the rich and powerful at the
expense of the everyday American. And the pain won't let up.
The Trump administration's first hundred days have seen
economic activity contract by 2.8 percent and our ports empty
out. With uncertainty rippling through all sectors of our
nation's economy, America is risking an entirely preventable
recession.
Mr. Chairman, I would be remiss if I didn't mention that
this week is National Small Business Week, where on this
committee we honor the 35 million small businesses in our
nation and recommit to promoting and protecting the jobs and
livelihoods they sustain. I would also be remiss if I didn't
remind my colleagues that these same small businesses are
disproportionately harmed by recession. That is why this
hearing is especially timely. As elected officials and
policymakers, our duty is to build on the progress that small
businesses have made and to give them the resources they need
to thrive. To achieve this, we need a keen understanding of the
greatest challenges, challenges facing small business owners in
our district. I know when we all go home, we are eager to hear
from entrepreneurs about the policies that serve them well and
what we can improve on.
Thank you to all the Members testifying and taking the time
out of their day to share their perspectives that they have
heard from their small business constituents. Today, our
committee has a chance to have an open, frank dialogue about
how we can all stand up and support Main Street America. I look
forward to our discussion. And with that, Mr. Chairman, I yield
back.
Chairman WILLIAMS. The gentleman yields back. And before we
continue, I would like to take a moment to explain how this
hearing will proceed. Each Member will be given 5 minutes to
deliver their testimony. And after they finish speaking, we
will briefly pause as we change the panel to accommodate the
next Member.
With that, I would like to introduce our first Member,
Representative Mike Kelly, my friend and a fellow car dealer
from the great state of Pennsylvania, and I recognize him to
deliver his 5 minutes of testimony.
STATEMENTS OF HON. MIKE KELLY, A REPRESENTATIVE IN CONGRESS
FROM THE STATE OF PENNSYLVANIA; HON. JAMES C. MOYLAN, A
REPRESENTATIVE IN CONGRESS FROM THE TERRITORY OF GUAM; HON.
TONY WIED, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF
WISCONSIN; HON. GUS M. BILIRAKIS, A REPRESENTATIVE IN CONGRESS
FROM THE STATE OF FLORIDA; HON. BEN CLINE, A REPRESENTATIVE IN
CONGRESS FROM THE STATE OF VIRGINIA; HON. LAMONICA MCIVER, A
REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW JERSEY; AND
HON. BRIAN JACK, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF
GEORGIA
STATEMENT OF HON. MIKE KELLY, A REPRESENTATIVE IN CONGRESS FROM
THE STATE OF PENNSYLVANIA
Mr. KELLY. Thank you, Chairman. It is really good to be
with you, especially when the car guys get together. I think we
always talk about how business is going. And quite frankly,
from both opening remarks, I guess it is a tale of two cities.
I watched for four years as we tried to get through the
previous administration with all the types of things that were
put in our way, and now we are into the Trump administration.
And I would just remind you, we are talking about the 30 days
since we started on the tariffs. It is not 30 weeks or 30
months. And I think the impact while we have all these ideas of
how bad it has become.
I got to tell you, I am on the lot when I go home, and
where I am from, it is a little different view of the world.
And I tell people all the time, if you want to know how
important small businesses are, if you have a son who plays
little league baseball, see whose name is on the outfield
fence; if you have a daughter who is maybe performing in a
school play, open up the program, and you are going to see
whose name is inside the program because we pick up the tab on
almost everything there is in our small towns and our small
businesses and wherever it is that we live and work. So it has
been an honor for me to serve with Roger because we understand
each other so much on what it is and it takes to make a
business prosper.
And the other side of it is the economic impact that small
businesses have. We pay incredible taxes. We provide benefits.
We provide an idea that, you know what? This is a business that
I can--I can work as hard as I want, I can keep working, and I
can prosper from it. There are times that it is tougher than
other times. We get that. I have been through both sides of it.
I have been through the situation where I can't imagine how I
am going to make payroll. The 6th and the 21st were always the
biggest days of the month for me, and people would say, is that
an anniversary? I said, no, it was payroll. And I know that for
people who are in small businesses, we never missed a payday.
That is not bragging, by the way. Now, there were days I didn't
get paid, but for the team that worked together every single
day, we were there for them. But I think the backbone of
America really is small. Small business is the big business of
America. And I think the way we participate in our communities,
it has nothing to do with other than the fact that we are all
on the same field at the same time and trying to make sure that
everybody, at the end of the day, walks away thinking, you know
what? That was not a wasted day. That was a day where I
actually achieved something.
When I walked in, I got a chance to meet Roger's family. It
kind of reminds me of my own. And you see these little people
as they grow up. And I think Roger and I are the same. My first
job at the dealership was cleaning restrooms and washing cars
and delivering cars to parts to body shops that needed them. So
we were always on the road or in the shop or doing something.
But the real reward for me was watching John Reamers retire and
Jim Ippolito (phonetic) retire. People say, who are those guys?
I said, well, those are two people that worked for us. One was
a tech and the other worked in the parts department. My dad, in
1971, right after I had graduated from school, called me in and
says, listen, there is going to be a guy coming in to talk to
us today, and he is going to talk to us about a pension
program. I said, why would he be doing that? He said, well, at
21, you have no idea what it looks like, but you will later on.
So why do I bring up those two names? When my dad
instituted that program, when John Reamers retired and Jim
Ippolito retired, they had tears in their eyes when they came
in. My dad had already left the business, but they said, if it
had not been for your dad and the program that he put in place,
we never would have been able to retire on just what we had
been able to save. And I thought, you know what? That is what
my dad was talking about back then. And I think Roger and I
share the same thing. Our commitment is not so much to
ourselves. Our commitment to ourselves is that you are going to
open those doors every day, and you are never going to miss the
6th or the 21st. You are going to be there, not just for the
team that you work with every day, but for the community you
live in.
And so I think when you talk about small business, people
tell me, well, big business is the backbone. I said, no, it is
not. No, it is not. Please come into our communities. They have
a presence, but their presence is name only. It is not that
they are on the field every single day. We don't miss
birthdays; we don't miss anniversaries. And again, as my friend
lost his wife this year, we share in grief times, too. So it is
a pleasure to be with you today. Please keep the eye on the
ball. It is about small businesses making it possible for us to
be prosperous.
I got to tell you, there are two times in my life that I
didn't pay one penny in income tax. And I am on Ways and Means,
and they asked me, how did you get away with that? I said, we
lost money that year. So the key to everything in small
business, and every business, you must be profitable. So you
can do everything. Not only do you pay income tax, but you are
putting money into payroll, into retirement plans, into health
care plans. That takes the burden off hardworking American
taxpayers every day.
So the success of small business is the success of America.
So I can't tell you how proud I am to be here with you today,
sir. And we are the backbone. We are the backbone of America.
Thank you so much. And thanks for having this meeting.
Chairman WILLIAMS. Thank you, Representative Kelly, for
your friendship and your commitment to this country. And if--do
we have any Members that have any questions? Well with--well,
then nobody is asking who sells them cheaper, you or me.
Mr. KELLY. Well, wait. We do, I think. Yes. Yes, ma'am?
Chairman WILLIAMS. Yes, Ms. Simon?
Ms. SIMON. I came all this way. I think you deserve a
question, right? Planes, trains, and automobiles. My name is
Lateefah Simon, and I come from the great state of California,
which our Chair reminds me of often, and I appreciate that.
Well, thank you all, to all the witnesses, but one I just want
to thank you for your testimony. It was heartening. Regardless
of where and who we are, how we vote, you know, your testimony
was extremely compelling. I guess I do have a question, and it
is really the question, and there is no right or wrong answer,
your hopes for this committee as we move forth. You know, there
is so much, so much at stake, clearly, for every American. The
SBA is a very, very important agency. We do some oversight over
SBA. Just curious, for small businesses like yours, you
literally keep folks going, right?
Mr. KELLY. Yes, ma'am.
Ms. SIMON. What do you need? What do you need from the
United States Congress from this particular committee?
Mr. KELLY. I think what we need more than anything else--
because these are not red or blue issues, these are red, white,
and blue issues. I think too often we get separated by our
politics and not our--and we need to look at our policy. The
policies affects every single American every single day and
what we decide on. So I would hope that--and I--and I know that
Roger and I are the same way. Anytime anybody came into our
store, we had always say, what can I help you with today? And I
think when we come in here to the Congress, we should be
looking back home to the three-quarters of a million people
that we represent. Say, what can we do to help you today?
Because I know when small business is successful, America is
successful, and we do so much in our communities, in addition
to payroll, which is a big part of it, but our very presence is
what adds hope and trust in the future for America. It is small
business that is America's biggest business.
Ms. SIMON. I appreciate you talking about payroll. Since I
was 20 years old, I have had staff, and that day before
payroll, when you don't have the cash balance, we all sweat,
and then we figure it out and we make it, and we don't get
paid. So thank you for really modeling. I think, our Chair and
our Ranking Member, who isn't here today, and our Ranking
Member instead, we can say that this is one of the most
productive committees in the United States Congress because we
get exactly what you are saying: that regardless who you are,
what you look like, who you pray to, the backbone of every
small town, of every big city, the sandwich shop, the car
dealer, the--the tire salesman, the local ice cream shop, they
build who we are. They are who we are. The cupcake lady.
Mr. KELLY. Yeah.
Ms. SIMON. So I just really appreciate you, and I hope you
can come back and continue to educate us as we move through a
very, what we think is going to be, a very lively 2 years.
Thank you, sir.
Mr. KELLY. Yes, ma'am. Thank you so much.
Chairman WILLIAMS. Thank you.
Mr. KELLY. Mr. Chairman.
Chairman WILLIAMS. We need to move on to the next.
Mr. KELLY. Okay.
Chairman WILLIAMS. Okay. Thank you for being here.
Mr. KELLY. Thank you.
Chairman WILLIAMS. Appreciate you greatly.
Mr. KELLY. Thank you.
Chairman WILLIAMS. Very much. And now we will bring up
delegate James Moylan from Guam.
STATEMENT OF THE HON. JAMES MOYLAN, A DELEGATE IN CONGRESS FROM
THE TERRITORY OF GUAM
Mr. MOYLAN. Thank you, Mr. Chairman, and Ranking Member
Tran. I want to thank you for hosting this Member Day. Thank
you very much.
For over 6 decades, since what we call Super Typhoon Karen
devastated our island in 1962, the SBA branch office has been
the cornerstone in providing disaster loans and grants,
enabling businesses and residents not only to recover and
rebuild but to thrive as well. However, the recent decision to
close Guam SBA branch office in April of this year poses
significant challenges for our island. The transfer of
responsibility to Hawaii SBA office, more than 3,800 miles and
5 time zones away, poses many risks. The distance and time zone
differences will lead to delays in service and limited
accessibility for small businesses in Guam. Without a local
branch office, our communities will face additional challenges
in accessing much-needed assistance.
Now, I commend the support of SBA's efforts to streamline
spending, empower small businesses, and to eliminate fraud,
waste, and abuse. However, the current reality falls short in
considering the unique challenges of the Pacific Islands. The
current plan to assign a Procurement Center representative to
work alongside the Small Business Development Center, SBDC, at
the University of Guam fails to address the urgent needs of our
local community, especially as we host the military buildup.
While the SBDC plays an important role, it is primarily
designed to support SBA counseling, often with an international
focus. The SBDC is not meant to serve as a substitute for Guam
SBA branch office functions that assist Guam businesses. The
Pacific territories are now the only jurisdiction in the entire
nation that lacks on-the-ground SBA services. Every state has a
district office, even Puerto Rico and the U.S. Virgin Islands,
where they have only a single district office to serve both
territories, SBA is retaining their presence. Yet for Guam, the
Commonwealth of the Northern Marianas, and American Samoa, we
must rely on a district office thousands of miles away to
access SBA services.
The recent decision leaves me with a question: why do small
businesses in the Pacific territories face such a challenge
when nowhere else is this the case? To properly address our
island needs, Guam requires a fully operational SBA branch
office. Faced with unique challenges, including higher costs of
doing business and vulnerabilities to natural disasters, Guam
small businesses rely heavily on all SBA services, especially
direct on-the-ground assistance. Eliminating the presence on
island dismisses federal responsiveness and risks undermining
our local economy.
So I respectfully urge this committee, Mr. Chairman, to
ensure that every state and territory small business
communities has the resources they need to thrive. Small
businesses are the cornerstone of America, and we as Congress
must take action to ensure that main street has the tools they
need to succeed. Small business owners deserve continuity of
service and support to ensure their survival and success,
regardless of where they are located. Mr. Chairman, I thank you
for your attention on this issue. Thank you.
Chairman WILLIAMS. Thank you very much for appearing. And
we do have time for a 1-minute question? From anybody? Okay,
seeing none. Thank you very much. I now recognize
Representative Tony Wied from the great state of Wisconsin for
5 minutes.
STATEMENT OF HON. TONY WEID, A REPRESENTATIVE IN CONGRESS FROM
THE STATE OF WISCONSIN
Mr. WIED. Well, thank you, Mr. Chairman, and thank you to
my colleagues who came to speak today. As most of you may know,
this week is National Small Business Week, a time when we
celebrate the hard work and contributions that entrepreneurs
and small businesses make to our economy.
As a former small business owner, I know firsthand how
difficult it is to run a successful company. For too long,
small businesses on main street have been overlooked in favor
of big businesses on Wall Street. House Republicans are
committed to supporting President Trump's efforts to refocus
the Small Business Administration away from the bloated
regulatory agency primarily staffed by career bureaucrats in
Washington, D.C., towards its original mission of helping small
businesses inside their communities. Last week, this committee
did just that. We passed out of committee bills that moved 30
percent of SBA staff out of Washington, D.C., required proof of
citizenship for SBA loans, and prohibited the SBA from engaging
in any voter registration activities. These are all common
sense bills that refocus the Small Business Administration
toward its original mission.
One of the biggest changes we have seen from the SBA under
the Trump administration is an increased focus on manufacturing
right here in the United States of America. From shipbuilding
to paper products, Wisconsin's 8th district is a manufacturing
hub with almost one quarter of our working population employed
in this vital economic sector. I am committed to improving
access to capital, reducing regulations, and supporting
technical school graduates as we re-shore American
manufacturing. I am looking forward to working with the
Administrator Loeffler and Members of this committee to promote
manufacturing in Wisconsin's 8th district and across our entire
country. There is work to be done, and I, along with the Small
Business Committee colleagues of mine, are committed to making
main street great again. Thank you. I yield back.
Chairman WILLIAMS. The gentleman yields back. 1-minute
question? Okay. Our next Representative and Congressman is Gus
Bilirakis, a good friend from the great state of Florida.
STATEMENT OF HON. GUS BILIRAKIS, A REPRESENTATIVE IN CONGRESS
FROM THE STATE OF FLORIDA
Mr. BILIRAKIS. It is good to see my good friend here, my
fellow baseball fan and also my fellow Floridian, a very good
friend, Jimmy Patronis. Great to see you here, Jimmy. So I want
to thank you, Mr. Chairman. I really appreciate you. I want to
thank you for holding this Member's Day hearing. It is great to
testify in front of you during the National, again, Small
Business Week.
Florida is home, as you know, to approximately 2.3 million
small businesses, which employ about 3.1 million people. So I
said billion, I meant million. This represents 43.2 percent of
the state's private sector workforce. I always enjoy meeting
with small business owners in my district who are the lifeblood
of our community. As a matter of fact, Mr. Patronis has
probably the best restaurant, and I am going to get in trouble
with my constituents, but in any case, one of the best
restaurants in the state of Florida in Panama City. And I know
he doesn't own it anymore, but it is still in his family.
So I have many such meetings this year with small business
owners and have held budget workshops to hear what my
constituents would like to see out of Washington, D.C. The
number one concern I have heard from the owners of these
businesses is the need for an extension of the provisions in
the 2017 Tax Cuts and Jobs Act. I know you agree, Mr. Chairman.
These tax policies have allowed hard-working Americans to hold
on to more of their paychecks and let small businesses in our
state flourish and reinvest in their communities. Some
provisions that have allowed businesses to grow are the
deduction for research and development expenses, bonus
depreciation, and a competitive interest deductibility
standard. The gains that have been made since 2017 are at risk
if we do not extend these tax provisions.
Additionally, small businesses are most at risk since they
are overwhelmingly structured as pass-through entities. They
have benefited from the qualified business income deduction and
the personal income tax rate, which are set to expire. Pass-
through entities account for 48 percent of private sector for-
profit employment in Florida. In my district alone, 63,010
taxpayers claim the 20 percent deduction, the pass-through
deduction, in 2020. This amounted to a collective tax benefit
of $425,022,000. The expiration of this provision would inflict
severe damage to those small business owners and have a
detrimental impact on our community. We can't have that. Within
the community at large, the average taxpayer in Florida would
see a 23 percent tax hike if the 2017 tax cuts are not
extended. It would amount to the largest tax increase in
history. Again, we can't have that, Mr. Chairman. This is
unacceptable as far as I am concerned.
Similarly, I have talked to small business owners who have
been able to hire more workers and expand their businesses but
would have to scale back if the tax cut provisions were to
expire. We need to ensure that owners are given the tools they
need to continue to make these investments and grow their
communities. So again, small businesses are the backbone of
America. I don't have to tell you, Mr. Chairman. A permanent
extension would give business owners the long-term tax
stability they need to plan and invest in their future with
confidence. As small businesses succeed, America succeeds. That
is the bottom line.
I support making the Tax Cuts and Jobs Act provisions
permanent and look forward to continue to work with you again
and for the entire committee. As a matter of fact, Mr.
Patronis, my dad served on this committee, Congressman Bill
Bilirakis, his first term, and I tell you, it is a great
committee. Thank you. God bless you, and I yield back.
Chairman WILLIAMS. Thank you, Gus, for those words, and
also thank you for your family that has been representing this
great country for so long. Thank you very much. Do we have a 1-
minute question? Okay, seeing none. Ben Cline from the great
state of Virginia for 5 minutes. One of the great golf putters
of all time right here.
STATEMENT OF HON. BEN CLINE, A REPRESENTATIVE IN CONGRESS FROM
THE STATE OF VIRGINIA
Mr. CLINE. Mr. Chairman, thank you. It is an honor to be
before the committee. I appreciate the opportunity to be here
on Small Business Week to join you in the celebration. And it
is an honor to discuss legislation that I have introduced that
supports and positively impacts small businesses not only in my
district, the 6th District of Virginia, but across the nation.
The Small Business Regulatory Flexibility Improvements Act
is an important piece of legislation under the jurisdiction of
the committee that will help American small businesses comply
with the overwhelming weight of federal regulation. As you
know, small businesses around the United States are at a
disadvantage when complying with burdensome federal
regulations. And such regulations, including one-size-fits-all
rules that raise prices at the cash register, cause significant
economic harm to small businesses and consumers. Burdensome
regulations also can keep some small businesses out of the
market altogether. Facing insurmountable compliance costs,
potential entrepreneurs all too often choose to never open
their small businesses in the first place.
Under the existing Regulatory Flexibility Act, the FRA,
agencies that issue economically burdensome regulations are
required to take small businesses into account. But all too
often, agencies don't comply with the RFA's mandates. While the
RFA requires agencies to study the effect of their regulations
on small businesses in up to 75 percent of rulemakings, the
agencies either ignored costs on small businesses or
underestimated the regulation's cost, according to NFIB.
H. R. 358, the Small Business Regulatory Flexibility
Improvements Act, would strengthen the RFA's already existing
provisions and deter agencies from skirting their statutory
obligations to American small businesses. H. R. 358 requires
that agencies convene small business review panels when
promulgating all major rules, which gives small businesses a
seat at the table to voice their concerns about the
economically harmful regulations. It also requires regulators
take indirect costs of their regulations into account. As you
know, the bulk of the harm from regulations comes from the
indirect cost of compliance. This bill addresses the oversight
in the federal regulatory process. Further, it authorizes the
Small Business Association's chief advocacy council to create
rules mandating how agencies must conduct their analyses.
Finally, it mandates that all rules as defined under the
Administrative Procedures Act, not just notice and comment
rulemakings, are covered by RFA's analysis requirements. As you
know, Mr. Chairman, the RFA was passed in 1980, but there are
still agencies which do not take the specific needs of small
businesses into account when crafting regulations, and
ultimately, federal regulators have failed in their obligations
to American small business owners under the RFA.
So, Mr. Chairman, in conclusion, H. R. 358, the Small
Business Regulatory Flexibility Improvements Act, is a common
sense effort to ensure regulators comply with the RFA's
provisions as Congress intended by fully considering the total
regulatory impact on small business owners when crafting
legislation. I hope it will be the will of the Committee to
report the bill out and put it to your consideration. And I
thank you for the opportunity today.
Chairman WILLIAMS. Thank you, Congressman. Thank you for
your leadership.
Mr. CLINE. Thank you, Mr. Chairman.
Chairman WILLIAMS. I now recognize Representative McIver
from the great state of New Jersey for 5 minutes.
STATEMENT OF HON. LAMONICA MCIVER, A REPRESENTATIVE IN CONGRESS
FROM THE STATE OF NEW JERSEY
Ms. MCIVER. Thank you, Chairman and Ranking Member, for
holding this hearing, and thank you to our fellow Members of
Congress for coming to share their small business goals with us
today. First of all, happy Small Business Week to all of the
small businesses who are tuned into us today. If you are so
lucky to be tuned into us today via C-Span I proudly represent
the 10th Congressional District in the great state of New
Jersey, which has a GDP of more than $200 billion and is home
to more than 5,000 businesses, many of them thriving small
businesses. These small businesses are not just job creators;
they are community builders, and they are driving growth. They
also include local gems like Big Rocs Deli, owned by and
operated by Rocmond, and Casa De Flora, a beautiful flower shop
owned by Maritza.
We are at a pivotal moment for small businesses like these
and the Small Business Administration. The economy is
officially contracting well on its way into a recession, all
while the SBA engages in mass layoffs of qualified and
experienced employees and moves forward with plans to move its
offices out of the economic hubs that need it most. These
actions are a direct threat to the millions of entrepreneurs
who depend on the SBA. Our job isn't just to support--our job
isn't just to support small businesses in theory. It is to
ensure the SBA can function in real life for real people.
First, we must confront a core challenge: access to
information. For too many small business owners, especially
first-generation and low-income business owners, the process of
applying for SBA loans remains complex and difficult to
navigate. That is unacceptable. SBA must improve its outreach
efforts to ensure that these entrepreneurs get the same clear,
timely, and reliable guidance that any large business would
expect from a bank.
Second, we cannot allow the historic gains made under the
prior administration to slip away. We saw record growth in the
number of small businesses owned by veterans, women, and people
of color. That didn't happen by accident. It was the result of
a fully staffed and funded SBA underneath the Biden and Harris
administration. The SBA had a capital impact of 56 billion in
2024. We must prioritize staffing and resources to ensure as
many small business entrepreneurs as possible are able to share
in that success.
Third, we must think beyond our borders. Small businesses
represent over 98 percent of all U.S. exporters, yet many lack
the tools to navigate international trade, a situation made
worse by the on and again tariff policy of the Trump
administration. If the administration is not going to--not
going to abandon its tariffs policies, then SBA needs to step
up its services to these businesses to help them navigate these
very, very trying times.
And finally, the future of small businesses relies not only
on who owns the companies but on how they are owned. That is
why I am calling for a renewed focus on employee ownership
models, such as cooperatives and employee stock ownership plans
that allow workers to build wealth and equity through their
labor. These models are proven to stabilize businesses and
strengthen local economies. The SBA must play a leadership role
in supporting employee ownership, particularly as older
Americans retire and ownership succession becomes a growing
issue.
These are not partisan ideas. These are not partisan ideas.
They are common sense steps to make the SBA work better for
more people and in more places. We need an SBA that supports
our entrepreneurs at home, opens doors abroad, and ensures
workers share in the prosperity they help create. For these
reasons, I urge my colleagues across the aisle and my
colleagues on this side of my aisle to eliminate barriers to
growth among small businesses, not just in today's discussion,
but in the legislation and oversight to come. Our small
businesses deserve nothing less. With that, I yield back.
Chairman WILLIAMS. The gentlelady yields back. I now
recognize Congressman Brian Jack from the great state of
Georgia for 5 minutes.
STATEMENT OF HON. BRIAN JACK, A REPRESENTATIVE IN CONGRESS FROM
THE STATE OF GEORGIA
Mr. JACK. Well, thank you, Mr. Chairman, and mindful of the
timing of our vote series today, I will be very brief. First
and foremost, Mr. Chairman, I want to thank you for your
leadership on this committee and likewise want to commend the
committee's work. As you have noted long before, this is one of
the last vestiges of bipartisanship on Capitol Hill, and it is
important because we are trying to solve the problems that
affect 99.9 percent of all businesses across our country.
I just want to highlight two things as it relates to
Georgia's incredible 3rd Congressional District. In honor of
not just National Small Business Week, of which we are well
within now, but really Small Business Month over the last month
and really this entire year, I had the privilege of welcoming
to my congressional district about 3 weeks ago Administrator
Loeffler. She is a friend of mine. I was formerly her
constituent before she was appointed, of course, to lead the
Small Business Administration. But I had a chance to bring her
to Troup County, in my district. We had a chance to go to Jane
Foods. If anybody is in Troup County, it is a great place to
visit. And likewise, I took her to really what is Main Street
America, took her to main street in LaGrange. She had a chance
to go to Solomon's clothing store in Charlie Joseph's, which is
the best place to eat if you are in LaGrange. It was very
special for me. It is special for the community to have an
opportunity to share with her some of the challenges that they
face and, likewise, provide some recommendations for
resolutions to those challenges.
And I also just want to highlight in my closing comments, I
had a chance, working with Members of this committee, to really
help a small business in my district. Just a few months ago,
there was a regulation that was handed down by Joe Biden's
Department of Energy the day after Christmas, December 26th,
2024, that would have put out of business a water heater
manufacturing company in my district. Last Friday I welcomed my
second cabinet member to the district, Secretary Chris Wright,
to celebrate the passage of our CRA resolution that repealed
that regulation. We talk a lot. We have heard from innumerable
witnesses throughout the course of this Congress just how
regulatory burdens can drastically impact and affect the way
that small businesses function. In this case, working together
with our colleagues and 11 Democrats crossing the aisle, we
repealed a regulation that would put a factory out of business,
and we celebrated its repeal last Friday with the second
cabinet secretary to visit my district. So excited about that
blueprint for success and look forward to building upon that
going forward and look forward to continuing to serve under
your leadership, Mr. Chairman. Thank you.
Chairman WILLIAMS. Thank you very much. The gentleman
yields back, and I would like to conclude by thanking all the
Members who testified today for taking time out of your busy
schedule to advocate on behalf of small businesses in your
districts and around the country. Our committee will keep your
ideas at the top of mind as we continue addressing the issues
that our nation 's small businesses are facing. Members will
have 5 legislative days to submit statements and supporting
materials for the record. Without objection, so ordered. And if
there is no further business, we will go vote. This committee
is adjourned. Thank you.
[Whereupon, at 1:40 p.m., the committee was adjourned.]
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