[Congressional Record Volume 166, Number 2 (Monday, January 6, 2020)]
[Senate]
[Page S21]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]





                    ADMINISTRATION OF OATH OF OFFICE

  The VICE PRESIDENT. If the Senator-designate will now present herself 
at the desk, the Chair will administer the oath of office.
  The Senator-elect, Kelly Loeffler, escorted by Ms. Ernst, advanced to 
the desk of the Vice President; the oath prescribed by law was 
administered to her by the Vice President; and she severally subscribed 
to the oath in the Official Oath Book.
  The VICE PRESIDENT. Congratulations.
  (Applause, Senators rising.)
  The PRESIDING OFFICER (Mr. Boozman). The Senator from Maryland is 
recognized.


                     Nomination of Jovita Carranza

  Mr. CARDIN. Mr. President, I rise today to discuss the nomination of 
U.S. Treasurer Jovita Carranza to lead the Small Business 
Administration. Treasurer Carranza's nomination comes at a time of 
great change for American small businesses. With the growing diversity 
in America, the face of business ownership in America is naturally also 
becoming more diverse.
  I have witnessed these changes firsthand in my home State of 
Maryland, which currently boasts the highest concentration of women-
owned businesses in the country, as well as the highest concentration 
of minority-owned businesses. Maryland's success has been no accident; 
it is as a result of our leaders' decades-long commitment to creating 
opportunities for underserved entrepreneurs, which began when the late 
Baltimore Congressman Parren J. Mitchell created the first Federal set-
aside for minority contractors in 1977.
  It was with this understanding that I requested a seat on the Small 
Business Committee when I joined this body in 2006, and it is with this 
understanding that I am hopeful that Treasurer Carranza will provide 
much needed leadership at the SBA and serve as an advocate for 
entrepreneurs--especially those from underserved communities--within 
the administration.
  If confirmed to lead the SBA, Treasurer Carranza will enter an agency 
that has not had a Deputy Administrator since April 2018 and that has 
been led by its General Counsel since former Administrator Linda 
McMahon resigned in April 2019. She will join an administration that 
has pushed for drastic cuts at the SBA in every budget it has sent to 
Congress. I am grateful that our Appropriations Committee has 
consistently rejected the administration's devastating budget 
proposals, and I hope that Treasurer Carranza will work to ensure that 
the administration's fiscal year 2021 budget is not more of the same.
  Minorities, women, veterans, and entrepreneurs from other underserved 
communities face specific, historical barriers to business ownership, 
and they need an SBA that has the leadership, vision, and tools 
required to meet their needs. I would like to use this opportunity to 
highlight what I believe are the two most critical areas where the SBA 
is falling short in its support of underserved communities.
  First, SBA must do a better job of providing affordable capital to 
entrepreneurs from underserved communities.
  SBA's various loan programs provide entrepreneurs with affordable 
capital to fund their businesses. These loans are especially important 
for underserved entrepreneurs, who typically have less wealth with 
which to fund a small business and have lower rates of business loan 
approvals.
  Instead of filling in the gaps in the credit markets, SBA's highest 
volume loan program, the 7(a) Program, has mirrored the inequities in 
the market. That is something we need to address. Addressing this issue 
is important not only in Maryland, which, as I mentioned, has one of 
the most diverse small business communities in the country, it is vital 
for the future health of America's economy, considering that women and 
minorities are driving growth in new business formation.
  According to a recent American Express study, the overall business 
ownership rate increased only 9 percent between 2014 and 2019. Over the 
same 5-year period, the number of women-owned businesses increased 21 
percent--more than twice as fast as the overall rate--and the number of 
minority women-owned businesses grew by 43 percent.
  It is clear that the underserved communities are driving the growth 
and business formation in America, and SBA's loan programs must catch 
up to this new reality.
  Second, SBA must do all it can to increase opportunity for small 
business contractors. Recent trends paint an onerous picture of the 
future of small business contracting. A 2019 Bloomberg Government 
report found that despite a steady increase in government spending in 
the past several years, the Federal contracting marketplace is becoming 
less competitive, with the number of contractors working on 
unclassified contracts at a 10-year low. Small businesses are facing 
the brunt of this decrease, which is particularly troubling in 
Maryland, where Federal contracting accounted for 8 percent--roughly 
$33 billion--of our State's GDP in 2018. The jobs created by these 
companies have helped thousands of families in Maryland enter the 
middle class.
  The Senate has taken steps to help small contractors. I am proud to 
share that today SBA will begin implementing the Runway Extension Act--
legislation I introduced that will allow small businesses to make 
critical investments to grow their businesses without fearing they will 
lose access to resources and Federal contracting opportunities.
  But Congress alone cannot reverse the increasing insularity of the 
Federal contracting process; SBA must work with large agencies that are 
driving these trends in Federal contracting to ensure that small 
businesses are given opportunities to become prime contractors and 
supply the Federal Government.
  Treasurer Carranza's prior experience should serve her well at the 
SBA. In nearly 30 years at UPS, where she began as a part-time package 
handler, Treasurer Carranza became the highest ranking Latina in the 
history of the company. She also served in government as Deputy 
Administrator of SBA under President George W. Bush, during which she 
chaired the SBA's Office of Small and Disadvantaged Business 
Utilization Council.
  At a time when America's small businesses are experiencing rapid 
demographic changes and new challenges, SBA needs bold and innovative 
leadership. I am optimistic that Treasurer Carranza can be the leader 
and advocate that SBA and American small businesses need right now. I 
support her nomination. I urge my colleagues to approve her nomination 
as the SBA Administrator.
  With that, I yield the floor.

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