[Congressional Record (Bound Edition), Volume 152 (2006), Part 11]
[Extensions of Remarks]
[Page 14613]
[From the U.S. Government Publishing Office, www.gpo.gov]




             THANK YOU, HECTOR BARRETO, FOR A JOB WELL DONE

                                 ______
                                 

                        HON. DONALD A. MANZULLO

                              of illinois

                    in the house of representatives

                         Monday, July 17, 2006

  Mr. MANZULLO. Mr. Speaker, last Monday was the last day in office for 
Hector Barreto, the second-longest serving SBA Administrator in its 53-
year history. Last week, there was a reception in honor of former 
Administrator Barreto with a broad spectrum of the small business 
community in Washington in attendance. This reflected well upon Mr. 
Barreto and his leadership style to bring people together of diverse 
interests and backgrounds.
  I don't know how Mr. Barreto put up with being in Washington for 
these past 5 years. I'm proud to be associated with Mr. Barreto and 
where he has taken the SBA to serve more small businesses than ever 
before in the history of the agency. I'm also proud to say that Mr. 
Barreto and I have similar backgrounds, growing up in the family 
restaurant business in the Midwest.
  It's amazing to see what has happened during the tenure of Mr. 
Barreto as Administrator of the SBA. Mr. Barreto was confirmed by the 
Senate and then sworn into office on July 25, 2001. Several weeks 
later, our Nation was hit by the awful terrorist attacks on September 
11. More Americans were killed in 9/11 than at Pearl Harbor. Mr. 
Barreto was just getting used to his new job responsibilities and this 
terrible tragedy struck America. Administrator Barreto rose up to the 
challenge by extending Economic Injury Disaster loans to small 
businesses all across America regardless of their proximity to the 
locations of the actual terrorist attacks. The terrorists sought to 
devastate our economy by tearing down the World Trade Center and 
disrupting air travel but they did not count on the resiliency of the 
small business sector and the American people. More than 10,000 small 
businesses across the Nation employing 166,000 workers were helped with 
over $1 billion in 9/11 SBA disaster loans.
  If that wasn't enough, Mr. Barreto achieved great results in other 
programs of the SBA. Between 2000 and 2005, the SBA more than doubled 
the number of loans made through its main business loan guarantee 
programs. The dollar volume also dramatically increased--in 7(a) by 
nearly 40 percent and in the 504 program by threefold. And after a 
series of programmatic shut-downs and curtailments, I joined with Mr. 
Barreto in making the historic decision in late 2004 to finally get the 
7(a) program off the rollercoaster of the appropriations process and 
have it funded entirely through user fees just like the 504 and the 
SBIC program. Now, the 7(a) program is going like gangbusters, serving 
record numbers ,of small businesses throughout all demographic groups, 
as compared to when it was receiving a loan subsidy.
  There has also been a steady increase in the number of individuals 
receiving technical assistance, education, and counseling through the 
SBA and its resource partners. Also, as a result of active engagement 
between the SBA and Federal agencies, Federal procurement dollars going 
to small businesses are at an all-time high. All this was accomplished 
while transforming the SBA into an agency to meet the challenges of the 
21st century. Change is hard but Mr. Barreto made the courageous 
decision to have the SBA operate more like the private sector than a 
bureaucracy. Doing more with less should be praised. not condemned, 
particularly in this tough budget environment.
  Then, Hurricanes Katrina, Rita. and Wilma violently struck the gulf 
coast last year. It was as if a swath of complete devastation 100 miles 
wide ripped through our country from Boston to Chicago. Again. 
Administrator Barreto and his team in the Office of Disaster Assistance 
came through despite enormous obstacles placed in their path, including 
not being able to really get to the areas of deepest destruction until 
well after a month after Hurricane Katrina ravaged New Orleans. The SBA 
and Administrator Barreto in particular took many below-the-belt 
political potshots along the way. I know when a person's integrity has 
been unfairly questioned, and I had to stand up to defend a decent and 
honorable man. I was proud to stand with Mr. Barreto last December in 
the press conference to put some context and additional facts into a 
very complicated situation.
  Just as a side note, it is very interesting to me that the media is 
not reporting that the SBA thus far has approved a record amount of 
over $10 billion in disaster loans to more than 152,000 Gulf States 
residents, representing an accomplishment 2\1/2\ times greater than the 
Nation's previous largest disaster--and all done at a faster pace. That 
is something to be proud of.
  Mr. Speaker, I want to take this brief opportunity to once again 
thank Mr. Barreto for his leadership; for his friendship; and for his 
service to our country. Our Nation's small business community is better 
for Mr. Barreto's tenure as the second longest serving SBA 
Administrator in history. The new SBA Administrator, Steve Preston, has 
some fairly big shoes to fill.
  Freda and I wish Hector Barreto and his family all the best in his 
new endeavor as the new national chairman of the Latino Coalition. I am 
confident that Mr. Barreto will never forget his small business roots.

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