[Congressional Record (Bound Edition), Volume 147 (2001), Part 14]
[House]
[Page 19412]
[From the U.S. Government Publishing Office, www.gpo.gov]



                 ECONOMIC EFFECTS OF SEPTEMBER 11, 2001

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Indiana (Mr. Pence) is recognized for 5 minutes.
  Mr. PENCE. Mr. Speaker, I rise today to offer a few brief comments 
about the continuing impact of the events that happened on the calendar 
1 month ago today. As we, each of us in our own right, dwell on the 
devastation of the Pentagon and at ground zero, the World Trade Center, 
I think it is altogether fitting that we think about the impact that 
the events of September 11 have had on that part of the American 
economy where most of Americans get up and go to work every day, and 
that is small business America.
  The largely rural and medium-sized city district that I serve across 
eastern Indiana is driven by businesses large and small, but truly by 
businesses that fall in the category of small business. Today I held a 
hearing in the Subcommittee on Regulatory Reform and Oversight of the 
Committee on Small Business, where I have the privilege of serving as 
chairman, where we took a hard look at the impact of September 11 on 
small businesses. What we found out from witnesses who gathered from as 
far away as Iowa and Maine was truly disturbing.
  The shutdown of aviation facilities known as general aviation 
facilities and businesses is the first place we looked for impact, and 
it was not a pretty picture.
  A small charter flight that leaves St. Thomas in the United States 
Virgin Islands for Tortola in the British Virgin Islands, some 40 miles 
away, and then flies to the Bahamas to return to the Virgin Islands is 
just one example of the regulatory burdens that are being placed on 
charter businesses upon which many of the businesses that I serve 
depend, and many smaller communities around America rely.
  Due to restrictions on general aviation in what is known as Class B 
air space, pilots cannot get their planes to avionic maintenance 
facilities, flight schools cannot provide flight instruction, and other 
aviation businesses are simply withering on the vine as we speak.
  According to one witness, after the immediate grounding was lifted 
for general aviation facilities, while business has come back, business 
remains at 40 percent from levels of a year ago.
  Even if the FAA removes restrictions from general aviation, the costs 
that they face may make it more difficult to continue. One proprietor 
of a general aviation business was quoted a war-risk insurance annual 
policy increase from $2,300 a year to $57,000 in a single year. In the 
airline bailout legislation, as the media has described it, wherein we 
rendered some $15 billion in assistance to major commercial airlines, 
we dealt with the issue of insurance for commercial airlines; but 
general aviation struggles similarly as well.
  Of course the problems are not just among general aviation and small 
charter facilities, but they extend to small businesses that are 
affected by business travel all over America.
  A travel agent from Lewiston, Maine, spoke with great emotion that 
despite all of the benefits that her creditors have allowed, her 
landlord giving her free rent for the next 3 months, she was in 3 
weeks, according to her estimate, losing $4,000 a week; she was on 
track to lose her travel agency of 33 years' business. When I asked her 
how far in the future are people canceling their travel plans, she 
simply responded under oath, ``I cannot see that far in the future.''
  Here in Washington, D.C., hotels are facing major losses of business 
due to the perception that National Airport and the Capital of the 
United States is not open for business. One small hotel lost $100,000 
due to the cancellation of World Bank events. A hotel operator was one 
of 25 in the D.C. area that suffered similar losses. The question 
remains, what will Congress do?
  Airport concessionaires also spoke of the fixed rent that they pay 
these small business operators, most of which come from the minority 
community, small business operators who have fixed rent payments at 
arenas and airports; and two of the over 400 airports in the United 
States have allowed some accommodation in the fixed rent payments of 
concessionaires.
  Mr. Speaker, we are about to lose a plethora of small businesses in 
America. As we approach an economic stimulus package, let us keep in 
our hearts and minds small business America, and let us remember that 
50 percent of those that file in the top marginal rate are actually 
small businesses filing as individuals under subchapter S. Let us bring 
relief to small business as well.

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