[House Report 117-661]
[From the U.S. Government Publishing Office]
Union Calendar No. 480
117th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 117-661
_______________________________________________________________________
REPORT ON THE ACTIVITIES
of the
COMMITTEE ON SMALL BUSINESS
117TH CONGRESS
December 21, 2022.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
______
U.S. GOVERNMENT PUBLISHING OFFICE
50-120 WASHINGTON : 2023
LETTER OF TRANSMITTAL
----------
House of Representatives,
Committee on Small Business,
Washington, DC, December 21, 2022.
Hon. Cheryl L. Johnson,
Clerk, House of Representatives,
Washington, DC.
Dear Madam Clerk: In accordance with clause 1(d) of rule XI
of the Rules of the House of Representatives, I respectfully
submit the activities report of the Committee on Small Business
for the 117th Congress.
Sincerely,
Nydia M. Velazquez,
Chairwoman.
C O N T E N T S
__________
Page
Committee Jurisdiction and Special Oversight Function............ 1
Rules of the Committee on Small Business......................... 1
Membership and Organization...................................... 15
Authorization and Oversight Plan................................. 17
Legislative Activities........................................... 26
Oversight Summary................................................ 43
Part A--Full Committee Hearings.................................. 43
Part B--Subcommittee Hearings.................................... 63
Part C--Waste, Fraud, Abuse, and Mismanagement................... 93
Part D--Implementation of the Oversight Plan..................... 97
Union Calendar No. 480
117th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 117-661
======================================================================
REPORT ON THE ACTIVITIES OF THE COMMITTEE ON SMALL BUSINESS FOR THE
117TH CONGRESS
_______
December 21, 2022.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Ms. Velazquez, from the Committee on Small Business, submitted the
following
R E P O R T
Clause 1(d) of rule XI of the Rules of the House of
Representatives for the 117th Congress requires that each
standing committee, not later than January 2nd of each odd-
numbered year, submit to the House a report on the activities
of that Committee, including separate sections summarizing the
legislative and oversight activities of that Committee.
COMMITTEE JURISDICTION AND SPECIAL OVERSIGHT FUNCTION
Clause 1(q) of rule X of the Rules of the House of
Representatives sets forth the jurisdiction of the Committee on
Small Business as follows:
(1) Assistance to and protection of small business,
including financial aid, regulatory flexibility, and paperwork
reduction.
(2) Participation of small-business enterprises in Federal
procurement and Government contracts.
In addition, clause 3(l) of rule X of the Rules of the
House of Representatives provides that the Committee on Small
Business shall study and investigate on a continuing basis the
problems of all types of small business.
RULES OF THE COMMITTEE ON SMALL BUSINESS
1. GENERAL PROVISIONS
(A) Rules of the Committee. The Rules of the House of
Representatives are the rules of the Committee on Small
Business (``Committee'') to the extent applicable and are
incorporated by reference.
(B) Appointments by the Chair. Pursuant to the Rules of the
House, the Chair shall designate a Member of the Committee
Majority to serve as Vice Chair of the Committee. The Vice
Chair shall preside at any meeting or hearing during the
temporary absence of the Chair. The Chair also reserves the
right to designate a Member of the Committee Majority to serve
as the Chair at a hearing or meeting.
2. REFERRAL OF BILLS BY THE CHAIR
(A) The Chair will retain consideration of all legislation
referred to the Committee by the Speaker. No action will be
required of a Subcommittee before legislation is considered for
report by the Committee. Subcommittee chairs, pursuant to the
rules set out herein, may hold hearings on any bill referred to
the Committee.
3. SUBCOMMITTEES
(A) Generally. Each Subcommittee of the Committee is part
of the Committee and is subject to the authority and direction
of the Committee, and to the Rules of the House and the rules
adopted herein, to the extent applicable. The Chair and Ranking
Member of the Committee are ex officio Members of all
Subcommittees for the purpose of any meeting conducted by a
Subcommittee.
(B) The Committee shall be organized into the following
five subcommittees:
(1) Subcommittee on Underserved, Agricultural, and
Rural Business Development
This Subcommittee (which will consist of six (6)
Democratic Members and five (5) Republican Members)
will address policies that enhance underserved
communities and rural economic growth, increasing
America's energy independence and ensuring that
America's small businesses can compete effectively in a
global marketplace.
Oversight of a broad array of policies
affecting underserved businesses, including minority,
women, immigrant, veteran, and rural owners.
Oversight of the Small Business
Administration's outreach and structure as it pertains
to increasing assistance to underserved and rural
businesses and entrepreneurs.
Oversight of agricultural policies.
Oversight of trade policies and issues
affecting small firms related to trade agreements.
Oversight of environmental issues and
regulations (including agencies such as the
Environmental Protection Agency and the Army Corps of
Engineers).
Oversight of energy issues, including
expansion of domestic resources, whether they are
renewable or non-renewable.
Oversight of international trade policy with
particular emphasis on agencies that provide direct
assistance to small businesses, such as: the Small
Business Administration's (SBA) Office of International
Trade, the Department of Commerce's United States
Export Assistance Centers, the Department of
Agriculture's Foreign Agricultural Service, and the
Export-Import Bank.
Oversight of infringement of intellectual
property rights by foreign competition.
Examine the implementation and effectiveness
of government programs designed to assist underserved,
rural, and agricultural businesses impacted by the
pandemic.
(2) Subcommittee on Innovation, Entrepreneurship, and
Workforce Development
This Subcommittee (which will consist of six (6)
Democratic Members and five (5) Republican Members)
will address how innovation promotes economic growth
and job creation by small businesses. In addition, the
Subcommittee will examine small business job growth
through the creation and adoption of advanced
technologies. The Subcommittee will review the broad
scope of workforce issues that affect the ability of
small businesses to obtain and maintain qualified
employees.
Oversight of SBA entrepreneurial development
programs, including Small Business Development Centers,
Women's Business Centers, Veteran Business Outreach
Centers, and SCORE.
Oversight of all federal policies that
affect the workforce including, but not limited to, the
roles of the Department of Labor and the National Labor
Relations Board.
Analyze workforce issues, including but not
limited to health care, retirement, and labor
challenges facing small businesses.
Examination of general technology issues,
including intellectual property policy in the United
States.
Oversight of United States
telecommunications policies including, but not limited
to, the National Broadband Plan and allocation of
electromagnetic spectrum.
Oversight of the Small Business Innovation
Research program.
Oversight of the Small Business Technology
Transfer program.
Investigate the state of the nation's
entrepreneurship, the challenges they face, and steps
to strengthen entrepreneurship, including startups,
solopreneurs, self-employed, and microbusinesses.
Examine programs and efforts designed to
assist both small employers and their workers
throughout the COVID-19 pandemic.
(3) Subcommittee on Economic Growth, Tax, and Capital
Access
This Subcommittee (which will consist of six (6)
Democratic Members and five (5) Republican Members)
will evaluate the operation of the financial markets in
the United States and their ability to provide needed
capital to small businesses. In addition, the
Subcommittee will review federal programs, especially
those overseen by the SBA, aimed at assisting
entrepreneurs in obtaining needed capital. Since the
tax policy plays an integral role in access to capital,
this Committee also will examine the impact of federal
tax policies on small businesses.
Oversight of capital access and financial
markets.
Implementation of the Dodd-Frank Wall Street
Reform and Consumer Protection Act.
SBA financial assistance programs, including
guaranteed loans, microloans, certified development
company loans, and small business investment companies.
Oversight of the Department of Agriculture
business and industry guaranteed loan program.
Oversight of general tax policy affecting
small businesses.
The management of the SBA disaster loan
program.
Analyze efforts to address challenges for
the unbanked and underbanked business community and
steps to increase capital access.
Investigate the implementation and efficacy
of programs related to supporting the business
community and nonprofits throughout the COVID-19
pandemic, including but not limited to the Paycheck
Protection Program, the Economic Injury Disaster Loan
program, and other SBA programs.
(4) Subcommittee on Oversight, Investigations, and
Regulations
This Subcommittee (which will consist of six (6)
Democratic Members and five (5) Republican Members)
will probe the efficient operation of government
programs that affect small businesses, including the
SBA, and develop proposals to make them operate in a
more cost-effective manner. This Subcommittee also will
review the regulatory burdens imposed on small
businesses and how those burdens may be alleviated.
Oversight of general issues affecting small
businesses and federal agencies.
Oversight of the management of the SBA.
Oversight of the SBA Inspector General.
Implementation and effectiveness of the
Regulatory Flexibility Act.
Oversight of the Office of Information and
Regulatory Affairs at the Office of Management and
Budget.
Use of the Congressional Review Act.
Transparency of the federal rulemaking
process as required by the Administrative Procedure and
Data Quality Acts.
Evaluating the Paperwork Reduction Act.
Investigate all programs relating to the
COVID-19 pandemic and their impact on the business and
nonprofit community and their employees.
(5) Subcommittee on Contracting and Infrastructure
This Subcommittee (which will consist of six (6)
Democratic Members and five (5) Republican Members)
will assess the federal procurement system, including
those programs designed specifically to enhance
participation by small businesses in providing goods
and services to the federal government. The
Subcommittee will review the broad scope of
opportunities available to small businesses for
rebuilding and modernizing the nations' infrastructure.
Oversight of government-wide procurement
practices and programs affecting small businesses.
Oversight of federal procurement policies
that inhibit or expand participation by small
businesses in the federal contracting marketplace.
All contracting programs established by the
Small Business Act, including HUBZone, 8(a), women-,
and Service Disabled Veteran-Owned Small Business
programs.
Technical assistance provided to federal
contractors and prospective contractors through SBA
personnel, Offices of Small and Disadvantaged Business
Utilization, and Procurement Technical Assistance
Centers.
The SBA Surety Bond Guarantee program.
General oversight of programs available to
small businesses in modernizing and strengthening the
nation's infrastructure.
Explore challenges small contractors and
businesses face caused by the COVID-19 pandemic and
remedial steps to assist them.
Address steps the federal government have
taken or can take to strengthen the supply chain and
create more federal procurement opportunities for small
business concerns.
(C) Powers and Duties of Subcommittees. Each Subcommittee
is authorized to meet, hold hearings, receive evidence, and
report to the Committee on any matters referred to it. Prior to
the scheduling of any meeting or hearing of a Subcommittee, the
Chair of the Subcommittee shall obtain the approval of the
Chair of the Committee.
(D) Hearing Time and Date. No hearing or meeting of a
Subcommittee shall take place at the same time as the meeting
or hearing of the Full Committee or another Subcommittee,
provided however, that the Subcommittee Chairs may hold field
hearings that conflict with those held by other Subcommittees
of the Committee.
4. COMMITTEE STAFF
(A) Majority Staff. The employees of the Committee, except
those assigned to the Minority as provided below, shall be
appointed and assigned, and may be removed by the Chair of the
Committee. The Chair shall fix their remuneration and they
shall be under the general supervision and direction of the
Chair.
(B) Minority Staff. The employees of the Committee assigned
to the Minority shall be appointed and assigned, and their
remuneration determined, as the Ranking Minority Member of the
Committee shall decide.
(C) Subcommittee Staff. There shall be no separate staff
assigned to Subcommittees. The Chair and Ranking Minority
Member shall endeavor to ensure that sufficient Committee staff
is made available in order that each Subcommittee may carry out
the responsibilities set forth in rule 3, supra.
5. MEETINGS
(A) Regular Meetings. The regular meeting day of the
Committee shall be the second Wednesday of every month when the
House is in session. The Chair may dispense with the meeting of
the Committee, if in the sole discretion of the Chair, there is
no need for such meeting.
(B) Additional Meetings. Additional meetings may be called
as deemed necessary by the Chair or at the request of the
majority Members of the Committee pursuant to rule XI, cl. 2(c)
of the rules of the House. At least 3 days' notice, pursuant to
rule XI, cl. 2(g)(3)(A), of such an additional meeting shall be
given unless the Chair, with the concurrence of the Ranking
Minority Member, determines that there is good cause to call
the meeting on less notice or upon a vote by a majority of the
Committee (a quorum being present). Announcements of the
meeting shall be published promptly in the Daily Digest and
made publicly available in electronic form.
(C) Business to be Considered. The determination of the
business to be considered at each meeting shall be made by the
Chair subject to limitations set forth in House rule XI, cl.
2(c).
(D) Meeting Materials. The Chair shall provide to each
Member of the Committee, to the extent practicable, at least 48
hours in advance of a meeting, a copy of the bill, resolution,
report or other item to be considered at the meeting, but no
later than 24 hours before the meeting. Such material also
shall be made available to the public at least 24 hours in
advance in electronic form.
(E) Special and Emergency Meetings. The rules for notice
and meetings as set forth in rule 5 of these rules shall not
apply to special and emergency meetings. Clause 2(c)(2) of rule
XI and clause 2(g)(3)(A) of rule XI of the Rules of the House,
as applicable, shall apply to such meetings.
6. NOTICE AND ANNOUNCEMENT OF HEARINGS
(A) Announcement of Hearings. Public announcement of the
date, place, and subject matter of any hearing to be conducted
by the Committee shall be made no later than seven (7) calendar
days before the commencement of the hearing. To the extent
possible, the seven days shall be counted from 168 hours before
the time of the Committee's hearing.
(B) Exception. The Chair, with the concurrence of the
Ranking Minority Member, or upon a vote by the majority of the
Committee (a quorum being present), may authorize a hearing to
commence on less than 7 days' notice.
(C) Witness Lists. Unless the Chair determines it is
impracticable to do so, the Committee shall make a tentative
witness list available at the time it makes the public
announcement of the hearing. If a tentative witness list is not
made available at the time of the announcement of the hearing,
such witness list shall be made available as soon as
practicable after such announcement is made. A final witness
list shall be issued by the Committee no later than 48 hours
prior to the commencement of the hearing.
(D) Hearing Material. The Chair shall provide to all
Members of the Committee, as soon as practicable after the
announcement of the hearing, a memorandum explaining the
subject matter of the hearing and any official reports from
departments and agencies on the subject matter of the hearing.
Such material shall be made available to all Members of the
Committee no later than 48 hours before the commencement of the
hearing, unless the Chair, after consultation with the Ranking
Minority Member, determines that certain reports from
departments or agencies should not be made available prior to
the commencement of the hearing. Material provided by the Chair
to all Members, whether provided prior to or at the hearing,
shall be placed on the Committee website no later than 48 hours
after the commencement of the hearing, unless such material
contains sensitive or classified information, in which case
such material shall be handled pursuant to rule 16 of the
Committee's Rules.
7. MEETINGS AND HEARINGS OPEN TO THE PUBLIC
(A) Meetings. Each meeting of the Committee or its
Subcommittees for the transaction of business, including the
markup of legislation, shall be open to the public, including
to radio, television, and still photography coverage, except as
provided by House rule XI, cl. 4. If the majority of Members of
the Committee or Subcommittee present at the meeting determine
by a recorded vote in open session that all or part of the
remainder of the meeting on that day shall be closed to the
public because the disclosure of matters to be considered would
endanger national security, would compromise sensitive law
enforcement information, or would tend to defame, degrade, or
incriminate any person or otherwise would violate any law or
rule of the House; provided however, that no person other than
Members of the Committee, and such congressional staff and such
executive branch representatives they may authorize, shall be
present in any meeting which has been closed to the public.
(B) Hearings. Each hearing conducted by the Committee or
its Subcommittees shall be open to the public, including radio,
television and still photography coverage. If the majority of
Members of the Committee or Subcommittee present at the hearing
determine by a recorded vote in open session that all or part
of the remainder of the hearing on that day shall be closed to
the public because the disclosure of matters to be considered
would endanger national security, would compromise sensitive
law enforcement information, or would tend to defame, degrade,
or incriminate any person or otherwise would violate any law or
rule of the House; provided however, that the Committee or
Subcommittee may by the same procedure also vote to close one
subsequent day of hearings. Notwithstanding the requirements of
the preceding sentence, a majority of those present (if the
requisite number of Members are present under Committee rules
for the purpose of taking testimony) may vote: (i) to close the
hearing for the sole purpose of discussing whether the
testimony or evidence to be received would endanger the
national security, would compromise sensitive law enforcement
information, or violate rule XI, cl. 2(k)(5) of the House or
(ii) to close the hearing, as provided clause 2(k)(5) of rule
XI of the House.
(C) Participation in Subcommittee Hearings. The Chair and
Ranking Minority Member are ex officio Members of all
Subcommittees for any hearing conducted by a Subcommittee.
Members of the Committee who wish to participate in a hearing
of the Subcommittee to which they are not Members shall make
such request to the Chair and the Ranking Minority Member of
the Subcommittee at the commencement of the hearing. The Chair,
after consultation with the Ranking Minority Member of the
Subcommittee, shall grant such request.
(D) Non-Participatory Attendance by Other Members of the
House. No Member of the House may be excluded from non-
participatory attendance at any hearing of the Committee or any
Subcommittee, unless the House of Representatives shall by
majority vote authorize the Committee or Subcommittees, for
purposes of a particular subject of investigation, to close its
hearing to Members by the same procedures designated to close
hearings to the public.
(E) Procedure to Participate. Members of Congress who are
not Members of the Committee but would like to participate in a
hearing shall notify the Chair and the Ranking Minority Member
and submit a formal request no later than 24 hours before the
commencement of the meeting or hearing. Such Member may not
vote on any matter; be counted for the purpose of establishing
a quorum; participate in questioning a witness under the 5-
Minute rule, unless permitted to do so by the Chair in
consultation with the Ranking Minority Member; raise points of
order; or offer amendments or motions.
(F) Audio and Video Coverage. To the maximum extent
practicable, the Committee shall provide audio and video
coverage of each hearing or meeting for the transaction of
business in a manner that allows the public to easily listen
and view the proceedings and shall maintain the recordings of
such coverage in a manner easily accessible to the public.
Operation and use of any Committee internet broadcast system
shall be fair and nonpartisan, and in accordance with clauses 4
(b) and (f) of House rule XI and all other applicable rules of
the Committee and the House.
8. WITNESSES
(A) Number of Witnesses. For any hearing conducted by the
Committee or Subcommittee there shall be no more than four non-
governmental witnesses of which the Ranking Minority Member of
the Committee or Subcommittee (as appropriate) is entitled to
select one witness for the hearing.
(B) Witnesses Selected by the Minority. Witnesses selected
by the Ranking Minority Member of the Committee or Subcommittee
shall be invited to testify by the Chair of the Committee or
Subcommittee (as appropriate). Rule 6(A) shall apply with equal
force to witnesses selected by the Ranking Minority Member of
the Committee or Subcommittee.
(C) Small Business Week Exception. The limitations set
forth in the preceding paragraph shall not apply if the
Committee holds a hearing to honor the work of the small
business community in conjunction with the annual celebration
of Small Business Week. Witness limitations for such a hearing
shall be determined by the Chair in consultation with the
Ranking Minority Member.
(D) Statement of Witnesses.
(1) Insofar as is practicable, each witness who is to
appear before the Committee or Subcommittee shall file
an electronic copy of the written testimony with the
Committee and the Ranking Minority Member no later than
48 hours before the commencement of the hearing. In
addition, the witness shall provide 25 copies of the
written testimony by the commencement of the hearing.
The Chair may waive the requirement by the witness
providing 25 copies in which case the Committee or
Subcommittee shall provide the 25 copies.
(2) Each witness shall limit his or her oral
presentation to a five-minute summary of the written
testimony, unless the Chair in consultation with the
Ranking Minority Member extends this time period.
(3) Insofar as is practicable, each non-governmental
witness shall provide to the Committee and the Ranking
Minority Member, no later than 48 hours before the
commencement of the hearing, a curriculum vitae or
other statement describing their education, employment,
professional affiliation or other background
information pertinent to their testimony.
(E) Witness Disclosure. As required by rule XI, cl. 2(g) of
the Rules of the House, each non- governmental witness before
the commencement of the hearing shall file with the Chair a
disclosure form detailing any contracts or grants that the
witness has with the federal government, as well as the amount
and country of origin of any payment or contract related to the
subject of the hearing originating with a foreign government.
Such information shall be posted on the Committee website
within 24 hours after the witness appeared at the hearing.
(F) Failure to Comply. The failure to provide the materials
set forth by the deadlines set forth in these rules may be
grounds for excluding both the oral and written testimony of
the witness unless waived by the Chair of the Committee or
Subcommittee.
(G) Public Access to Witness Materials. The Committee will
provide public access to printed materials, including the
testimony of witnesses in electronic form on the Committee's
website no later than 24 hours after the hearing is adjourned.
Supplemental material provided after the hearing adjourns shall
be placed on the Committee website no later than 24 hours after
receipt of such material.
(H) Questioning of Witnesses. Except when the Committee
adopts a motion pursuant to subdivisions (B) and (C) of clause
2(i)(2) of rule XI of the Rules of the House, Committee Members
may question witnesses only when they have been recognized by
the Chair for that purpose. Members shall have the opportunity,
as set forth in rule XI, cl. 2 (j) of the Rules of the House,
to question each witness on the panel for a period not to
exceed five minutes. For any hearing, the Chair of the
Committee or Subcommittee may offer a motion to extend the
questioning of a witness or witnesses by the Member identified
in the motion for more than five minutes as set forth in rule
XI, cl. 2(j)(B). No Member may be recognized for a second
period of interrogation, subject to the 5-minute rule, until
each Member present, who wishes to be recognized, has been
recognized at least once.
(I) Order of Questioning.
(1) Full Committee Hearings. The Chair of the
Committee shall commence questioning followed by the
Ranking Minority Member. Thereafter, questioning shall
alternate between the Majority and Minority Members.
Before the gavel has been struck, or in the case of
Members arriving simultaneously, the order of
questioning shall be based on seniority among Members
of his or her own party. After the gavel has been
struck, Members first to arrive shall have priority
over Members of his or her own party. Members of
Congress who are not Members of the Committee, if
allowed by the Chair, may be recognized for questioning
of witnesses but only after all Committee Members have
first been recognized.
(2) Subcommittee Hearings. The Chair of the
Subcommittee shall commence questioning followed by the
Ranking Minority Member of the Subcommittee.
Thereafter, questioning shall alternate between the
Majority and Minority Members of the Subcommittee.
Before the gavel has been struck, or in the case of
Subcommittee Members arriving simultaneously, the order
of questioning shall be based on seniority among
Members of his or her own party. After the gavel has
been struck, Subcommittee Members first to arrive shall
have priority over Subcommittee Members of his or her
own party. Members of the Full Committee who are not
members of the Subcommittee and are granted permission
to participate pursuant to committee rule 7(C), may be
recognized for questioning only after all Subcommittee
Members have first been recognized. The order of
questioning for Members of the Full Committee who are
not members of the Subcommittee shall be based on full
committee seniority. Members of Congress who are not
Members of the Subcommittee, if allowed by the Chair,
may be recognized for questioning of witnesses but only
after all Subcommittee Members and Full Committee
Members have first been recognized.
(J) Consideration of Ratio. In recognizing Members to
question witnesses, the Chair may take into consideration the
ratio of Majority and Minority Members present in such a manner
as to not disadvantage the Members of either party.
9. QUORUM
(A) Determining a Quorum. A quorum, for purposes of
reporting a measure or recommendation, shall be a majority of
the Committee Members.
(B) Quorum for a Hearing. For purposes of taking testimony
or receiving evidence, a quorum shall be one Member from the
Majority and one Member from the Minority. The Chair of the
Committee or Subcommittee shall exercise reasonable comity by
waiting for the Ranking Minority Member even if a quorum is
present before striking the gavel to commence the hearing. For
hearings held by the Committee or a Subcommittee in a location
other than the Committee's hearing room or the assigned hearing
room in Washington, DC, a quorum shall be deemed to be present
if the Chair of the Committee or Subcommittee is present.
10. RECORD VOTES
(A) When Provided. A record vote of the Committee shall be
provided on any question before the Committee upon the request
of any Member of the Committee. A record of the vote of each
Member of the Committee on a matter before the Committee shall
be available in electronic form within 48 hours of such record
vote, and, with respect to any roll call vote on any motion to
amend or report, shall be included in the report of the
Committee showing the total number of votes cast for and
against and the names of those Members voting for and against.
(B) Proxy Voting. No vote by any Member of the Committee
with respect to any measure or matter may be cast by proxy.
(C) Public Access to Record Votes. The Chair of the
Committee shall, not later than 24 hours after consideration of
a bill, resolution, report or other item, cause the text of the
reported item and any amendment adopted thereto to be made
publicly available in electronic form.
11. SUBPOENAS
(A) Authorization and Issuance. A subpoena may be
authorized and issued by the Committee in the conduct of any
investigation or series of investigations or activities to
require the attendance and testimony of such witness and the
production of such books, records, correspondence, memoranda,
papers and documents, as deemed necessary. Such subpoena shall
be authorized by a majority of the Full Committee. The
requirement that the authorization of a subpoena require a
majority vote may be waived by the Ranking Minority Member of
the Committee.
(B) Issuance During Congressional Recess. The Chair may
issue a subpoena, in consultation with the Ranking Minority
Member, when the House is out of session for more than three
legislative days.
12. AMENDMENTS DURING MARKUP
(A) Availability of Amendments. Any amendment offered to
any pending legislation before the Committee must be made
available in written form by any Member of the Committee. If
such amendment is not available in written form when requested,
the Chair shall allow an appropriate period for the provision
thereof and may adjourn the markup to provide sufficient time
for the provision of such written amendment. Such period or
adjournment shall not prejudice the offering of such amendment.
(B) Drafting and Filing of Amendments. For amendments to be
accepted during markup, there is no requirement that the
amendments be filed prior to commencement of the markup or
prepared with the assistance of the Office of Legislative
Counsel. Even though it is not necessary, Members seeking to
amend legislation during markup should draft amendments with
the assistance of the Office of Legislative Counsel and consult
with the Chair or Ranking Minority Member's staff (as
appropriate) in the preparation of such amendments.
13. POSTPONEMENT OF PROCEEDINGS
(A) When Postponement is Permissible. The Chair, in
consultation with the Ranking Minority Member, may postpone
further proceedings when a record vote is ordered on the
question of approving any measure or matter or adopting an
amendment. The Chair may resume postponed proceedings, but no
later than 24 hours after such postponement, unless the House
is not in session or there are conflicts with Member schedules
that make it unlikely a quorum will be present to conduct
business on the postponed proceeding. In such cases, the Chair
will consult with Members to set a time as early as possible to
resume proceedings but in no event later than the next meeting
date as set forth in rule 5 of these rules.
(B) Resumption of Proceedings. When proceedings resume on a
postponed question, notwithstanding any intervening order for
the previous question, an underlying proposition shall remain
subject to further debate or amendment to the same extent as
when the question was postponed.
14. COMMITTEE RECORDS
(A) The Committee shall keep a complete record of all
actions, which shall include a record of the votes on any
question on which a recorded vote is demanded. The result of
any vote by the Committee, or if applicable by a Subcommittee,
including a voice vote shall be posted on the Committee's
website within 24 hours after the vote has been taken. Such
record shall include a description of the amendment, motion,
order, or other proposition, the name of the Member voting for
and against such amendment, motion, order, or other
proposition, and the names of Members present but not voting.
For any amendment, motion, order, or other proposition decided
by voice vote, the record shall include a description and
whether the voice vote was in favor or against.
(B) Transcripts. The Committee shall keep a complete record
of all Committee and Subcommittee activity which, in the case
of a meeting or hearing transcript, shall include a
substantially verbatim account of the remarks actually made
during the proceedings subject only to technical, grammatical,
and typographical corrections authorized by the person making
the remarks.
(C) Availability of Records. The records of the Committee
at the National Archives and Records Administration shall be
made available in accordance with rule VII of the Rules of the
House. The Chair of the Committee shall notify the Ranking
Member of the Committee of any decision, pursuant to rule VII,
cal. 3(b)(3) or cal. 4 (b), to withhold a record otherwise
available, and the matter shall be presented to the Committee
for a determination of the written request of any Member of the
Committee.
(D) Publishing and Posting of Records. The Committee Rules
shall be made publicly available in electronic form and
published in the Congressional Record not later than 60 days
after the Chair of the Committee is elected in each odd-
numbered year.
15. COMMITTEE WEBSITE
The Chair shall maintain an official Committee web site for
the purpose of furthering the Committee's legislative and
oversight responsibilities, including communicating information
about Committee's activities to Committee Members and other
Members of the House. The Ranking Minority Member may maintain
a similar web site for the same purpose, including
communicating information about the activities of the Minority
to Committee Members and other Members of the House.
16. ACCESS TO CLASSIFIED OR SENSITIVE INFORMATION
(A) Access to classified or sensitive information supplied
to the Committee or Subcommittees and attendance at closed
sessions of the Committee or a Subcommittee shall be limited to
Members and necessary Committee staff and stenographic
reporters who have appropriate security clearance when the
Chair determines that such access or attendance is essential to
the functioning of the Committee or one of its Subcommittees.
(B) Procedures Governing Availability. The procedures to be
followed in granting access to those hearings, records, data,
charts, and files of the Committee which involve classified
information or information deemed to be sensitive shall be as
follows:
(1) Only Members of the House of Representatives and
specifically designated Committee staff of the
Committee on Small Business may have access to such
information.
(2) Members who desire to read materials that are in
possession of the Committee shall notify the Clerk of
the Committee in writing.
(3) The Clerk of the Committee will maintain an
accurate access log, which identifies the circumstances
surrounding access to the information, without
revealing the material examined.
(4) If the material desired to be reviewed is
material which the Committee or Subcommittee deems to
be sensitive enough to require special handling, before
receiving access to such information, individuals will
be required to sign an access information sheet
acknowledging such access and that the individual has
read and understands the procedures under which access
is being granted.
(5) Material provided for review under this rule
shall not be removed from a specified room within the
Committee offices.
(6) Individuals reviewing materials under this rule
shall make certain that the materials are returned to
the proper custodian.
(7) No reproductions or recordings may be made of any
portion of such materials.
(8) The contents of such information shall not be
divulged to any person in any way, form, shape, or
manner and shall not be discussed with any person who
has not received the information in the manner
authorized by the rules of the Committee.
(9) When not being examined in the manner described
herein, such information will be kept in secure safes
or locked file cabinets within the Committee offices.
(10) These procedures only address access to
information the Committee or Subcommittee deems to be
sensitive enough to require special treatment.
(11) If a Member of the House of Representatives
believes that certain sensitive information should not
be restricted as to dissemination or use, the Member
may petition the Committee or Subcommittee to so rule.
With respect to information and materials provided to
the Committee by the Executive Branch or an independent
agency as that term is defined in 44 U.S.C. 3502, the
classification of information and materials as
determined by the Executive Branch or independent
agency shall prevail unless affirmatively changed by
the Committee or Subcommittee involved, after
consultation with the Executive Branch or independent
agency.
(12) Other materials in the possession of the
Committee are to be handled in the accordance with
normal practices and traditions of the Committee.
17. OTHER PROCEDURES
The Chair of the Committee may establish such other
procedures and take such actions as may be necessary to carry
out the foregoing rules or to facilitate the effective
operation of the Committee.
18. AMENDMENTS TO COMMITTEE RULES
The rules of the Committee may be modified, amended, or
repealed by a majority vote of the Members, at a meeting
specifically called for such purpose, but only if written
notice of the proposed change or changes has been provided to
each Member of the Committee at least 72 hours prior to the
time of the meeting of the Committee to consider such change or
changes.
19. BUDGET AND TRAVEL
(A) Allocation of Budget. From the amount provided to the
Committee in the primary expense resolution adopted by the
House of Representatives in the 117th Congress, the Chair,
after consultation with the Ranking Minority Member, shall
designate one-third of the budget under the direction of the
Ranking Minority Member for the purposes of Minority staff,
travel expenses of Minority staff and Members, and Minority
office expenses.
(B) Authorization of Travel. The Chair may authorize travel
in connection with activities or subject matters under the
legislative or oversight jurisdiction of the Committee as set
forth in rule X of the Rules of the House. The Ranking Minority
Member may authorize travel for any Minority Member or staff of
the Minority in connection with activities or subject matters
under the Committee's jurisdiction as set forth in rule X of
the Rules of the House. Before such travel, there shall be
submitted to the Chair of the Committee in writing the
following at least seven (7) calendar days prior specifying: a)
the purpose of the travel; b) the dates during which the travel
is to occur; c) the names of the states or countries to be
visited and the length of time spent in each; and d) the names
of Members and staff of the Committee participating in such
travel.
MEMBERSHIP AND ORGANIZATION
Committee on Small Business
(Ratio: 15-12)
Nydia Velazquez, New York, Chairwoman
Republicans Democrats
Blaine Luetkemeyer (MO-03), Ranking Member Golden (ME-02)
Roger Williams (TX-25) Vice Ranking Member Crow (CO-06)
Pete Stauber (MN-08) Sharice Davids (KS-03)
Dan Meuser (PA-09) Kweisi Mfume (MD-07)
Claudia Tenney (NY-22) Dean Phillips (MN-03)
Andrew Garbarino (NY-02) Marie Newman (IL-03)
Young Kim (CA-39) Carolyn Bourdeaux (GA-07)
Beth Van Duyne (TX-24) Troy Carter (LA-02)
Byron Donalds (FL-19) Judy Chu (CA-27)
Maria Salazar (FL-27) Dwight Evans (PA-03)
Scott Fitzgerald (WI-05) Chrissy Houlahan (PA-06)
Mike Flood (NE-01) Andy Kim (NJ-03)
Angie Craig (MN-02)
Scott Peters (CA-52)
----------
May 12, 2021--Mr. Scott Peters, California, resigned from the
Committee.
May 12, 2021--Mr. Troy Carter, Louisiana, was appointed to the
Committee, H. Res. 384.
May 25, 2022--Mr. Antonio Delgado, New York, resignation from Congress,
Congressional Record Vol. 168, No. 90.
February 17, 2022--Mr. Jim Hagedorn, Minnesota, served on the Committee
until he passed away.
June 14, 2022--Mr. Scott Peters, California, was appointed to the
Committee, H. Res. 1173.
July 12, 2022--Mr. Mike Flood, Nebraska, was appointed to the
Committee, H. Res. 1225.
SUBCOMMITTEE MEMBERSHIPS
Subcommittee on Underserved, Agricultural, and Rural Business
Development
Jared Golden, Maine, Chairman
Claudia Tenney, New York Troy Carter, Louisiana
Roger Williams, Texas Scott Peters, California
Pete Stauber, Minnesota
Maria Salazar, Florida
Mike Flood, Nebraska
Subcommittee on Innovation, Entrepreneurship, and Workforce Development
Jason Crow, Colorado, Chairman
Young Kim, California Carolyn Bourdeaux, Georgia
Roger Williams, Texas Chrissy Houlahan, Pennsylvania
Claudia Tenney, New York Sharice Davids, Kansas
Andrew Garbarino, New York Dean Phillips, Minnesota
Maria Salazar, Florida Marie Newman, Illinois
Subcommittee on Economic Growth, Tax, and Capital Access
Sharice Davids, Kansas, Chairwoman
Dan Meuser, Pennsylvania Marie Newman, Illinois
Andrew Garbarino, New York Judy Chu, California
Young Kim, California Dwight Evans, Pennsylvania
Beth Van Duyne, Texas Andy Kim, New Jersey
Byron Donalds, Florida Carolyn Bourdeaux, Georgia
Subcommittee on Oversight, Investigations, and Regulations
Dean Phillips, Minnesota, Chairman
Beth Van Duyne, Texas Angie Craig, Minnesota
Dan Meuser, Pennsylvania Kweisi Mfume, Maryland
Byron Donalds, Florida Judy Chu, California
Scott Fitzgerald, Wisconsin Dwight Evans, Pennsylvania
Mike Flood, Nebraska Sharice Davids, Kansas
Subcommittee on Contracting and Infrastructure
Kweisi Mfume, Maryland, Chairman
Maria Salazar, Florida Jared Golden, Maine
Pete Stauber, Minnesota Andy Kim, New Jersey
Dan Meuser, Pennsylvania Marie Newman, Illinois
Scott Fitzgerald, Wisconsin Troy Carter, Louisiana
Mike Flood, Nebraska
AUTHORIZATION AND OVERSIGHT PLAN
Ms. Velazquez, Chair of the Committee on Small Business,
submitted to the Committee on Oversight and Reform and the
Committee on House Administration the following:
REPORT
Rule X, cl. 2(d)(1) of the Rules of the House requires each
standing Committee to adopt an oversight plan for the two-year
period of the Congress and to submit the plan to the Committees
on Oversight and Reform and House Administration not later than
March 1 of the first session of the Congress. Under rule X, the
Committee has oversight authority to investigate and examine
any matter affecting small business. This Report reflects that
broad oversight jurisdiction.
OVERSIGHT OF FEDERAL CAPITAL ACCESS PROGRAMS
The Committee will conduct hearings and investigations into
Small Business Administration (SBA) and other federal agencies
that provide capital to America's entrepreneurs that may
include any or all of the following, as well as matters brought
to the attention of the Committee subsequent to the filing of
this report:
Effectiveness of the capital access programs
to generate jobs in the fastest growing small
businesses.
Effectiveness of the capital access programs
to assist and create jobs in underserved businesses,
including minority, women, immigrant, veteran, and
rural owners.
Effectiveness of the Small Business
Administration's outreach and structure as it pertains
to increasing assistance to underserved and rural
businesses and entrepreneurs.
Whether lenders are meeting their goals to
lend to small businesses and create jobs.
Adequacy of SBA oversight of its lending
partners to ensure that federal taxpayers are properly
protected.
Capabilities of the SBA information
technology to manage the loan portfolio.
Whether SBA rules, regulations, and guidance
result in transparent and reasoned decision making with
respect to capital access programs.
Assessment of credit-scoring algorithms as a
replacement for individual credit assessment by SBA and
its lending partners.
The exercise of discretion by SBA to create
pilot programs and the risk they pose to the taxpayer
and whether such authority should be curtailed or
eliminated.
Whether SBA disaster loan program and its
oversight ensures that small businesses are able to
revive and rebuild communities.
Review the recent change by SBA for fee
waivers and the impact moving from a dollar limitation
to a geographic determination will have on small
businesses.
Efficacy and duplication of federal capital
access programs offered by the Department of
Agriculture to small businesses in rural areas.
Utilization by small businesses of export
capital programs at the Export-Import Bank and the
Overseas Private Investment Corporation.
Study the need to enhance the 7(a) and
Certified Development Company programs so that they are
more effective in reaching borrowers unable to secure
conventional loans.
Analyze the Microloan program with the
intent of making it more affordable for borrowers and
reducing barriers to its growth.
Examine methods to enhance equity financing
to meet the needs of small business borrowers wherein
debt financing is not appropriate and how SBA programs
may be used to increase equity financing.
Continued examination of the Paycheck
Protection Program (PPP), EIDL Advance program, debt
relief, and other small business programs established
by Pub. L. No. 116-136, the Coronavirus Aid, Relief,
and Economic Security (CARES) Act, in providing
emergency simulative capital to small businesses.
Implementation of program clarifications and
enhancements made to PPP, EIDL, Microloan, 504/CDC, and
other SBA programs, including debt relief and fee
reductions established by Pub. L. No. 116-260, the
Consolidated Appropriations Act, 2021, to provide
simulative capital to small businesses to retain and
create jobs.
Continued examination of the Small Business
Lending Fund and State Small Business Credit Initiative
established by Pub. L. No. 111-240, the Small Business
Jobs Act of 2010, in creating jobs and providing
capital to small businesses.
Implementation of crowdfunding and other
provisions of the Jumpstart Our Business Startups Act,
Pub. L. No. 112-106.
Continued oversight and analysis of the role
that the SBA secondary market plays in small business
finance and the effectiveness of changes made by SBA to
the pooling program established in the Federal Register
Notice of October 16, 2017.
Review and oversight into the Master Reserve
Fund at SBA.
Implementation of program clarifications
made to encourage more cooperative and employee stock
ownership plan lending through SBA programs established
by the Main Street Employee Ownership Act of 2018,
passed into law by the John S. McCain National Defense
Authorization Act for Fiscal Year 2019, Pub. L. No.
115-232.
Implementation of changes made to increase
oversight of the 7(a) loan program established by Pub.
L. No. 115-189, the Small Business 7(a) Lending
Oversight Reform Act of 2018.
Examination of the Express Bridge Loan pilot
program for disaster recovery lending for small
businesses and its performance after recent disasters,
such as Hurricanes Harvey, Irma, and Maria and numerous
wildfires.
Investigate franchising contracts to learn
how SBA loans are being utilized, default rates, and
whether small business owners are being harmed in case
improvements in the SBA franchise directory can be
made.
The effectiveness of SBA in minimizing risk
to the taxpayer in the SBA capital access programs.
In performing oversight, the Committee will focus on
particularly risky aspects of financial assistance programs
including, but not limited to, commercial real estate
refinancing, premier certified lenders, participating security
small business investment companies, small business lending
companies, express lenders, and loan programs utilizing
simplified lending applications.
OVERSIGHT OF SBA AND OTHER FEDERAL ENTREPRENEURIAL DEVELOPMENT PROGRAMS
The Committee will conduct hearings and investigations into
the SBA programs that provide training and advice to small
businesses that may include any or all of the following, as
well as matters brought to the attention of the Committee
subsequent to the filing of this Report:
Examining effectiveness of SBA
entrepreneurial development programs in creating jobs
at startups and traditional firms.
Examining effectiveness of enhancements to
SBA entrepreneurial development programs established by
Pub. L. No. 116-136, the Coronavirus Aid, Relief, and
Economic Security (CARES) Act and Pub. L. No. 116-260,
the Consolidated Appropriations Act, 2021, in assisting
small businesses access to federal pandemic support
resources.
Suggesting methods for enhancing
coordination among federal agencies in aiding
entrepreneurs, including, but not limited to,
businesses located in underserved areas, such as rural
and low-income communities and those seeking to provide
goods and services in the federal procurement
marketplace.
Enhancing the efficacy and utilization of
the Manufacturing Extension Partnership at the
Department of Commerce, including developments in
renewable energy.
OVERSIGHT OF FEDERAL GOVERNMENT CONTRACTING MATTERS
The Committee will conduct hearings and investigations into
the federal procurement system that may include any or all of
the following, as well as matters brought to the attention of
the Committee subsequent to the filing of this Report:
Whether fraud or other problems exist in the
federal government contracting programs overseen by the
SBA including the 8(a), HUBZone, service-disabled
veteran, women-owned contracting, and Small Business
Innovation Research programs.
Effectiveness of SBA contracting programs to
increase participation by small businesses in federal
procurement.
Effectiveness of federal agency protections
against contract bundling and consolidation.
The accuracy and utility of SBA size
standards and federal procurement databases.
Operation and effectiveness of federal
agency assistance provided to small businesses
interested in federal procurement, including that
provided by the SBA, Offices of Small and Disadvantaged
Business Utilization and Procurement Technical
Assistance Centers.
Development of federal acquisition policies
and whether small businesses have sufficiently
effective voice in development of such policies.
Cost-effectiveness of outsourcing government
work to private enterprise rather than expanding the
government to do provide the good or service internally
(i.e., government insourcing).
Examining effectiveness of 8(a) small
business federal procurement extension established by
Pub. L. No. 116-260, the Consolidated Appropriations
Act, 2021.
Implementation and efficacy of changes made
in small business federal procurement programs arising
from the enactment of the National Defense
Authorization Acts for FYs 2012-2021.
Examination of the Small Business Innovation
Research program as modified by the National Defense
Authorization Act for FY 2012, Pub. L. No. 112-81,
including, but not limited to, increased efforts at
commercializing federally-funded technology.
Implementation and efficacy of changes made
to the Small Business Innovation Research program
arising from the enactment of the John S. McCain
National Defense Authorization Act for Fiscal Year
2019, Pub. L. No. 115-232.
Implementation and efficacy of changes made
to the HUBZone program arising from the enactment of
the National Defense Authorization Act for Fiscal Year
2018, Pub. L. No. 115-91.
Implementation and efficacy of changes made
to small business programs from enactment of the
William M. (Mac) Thornberry National Defense
Authorization Act for Fiscal Year 2021. Pub. L. No.
116-283.
Monitor the migration of the veteran
certification program from the Department of Veterans
Affairs to the Small Business Administration.
Examine the effects on the supply chain as
they relate to the pandemic and analyze the impact
relief programs have had on small government
contractors.
In performing oversight, the Committee will focus its
efforts on uncovering abuse and misuse of the small business
designation to obtain federal government contracts.
OVERSIGHT OF SBA MANAGEMENT
The Committee will conduct the hearings and investigations
into the management of the SBA that may include any or all of
the following, as well as matters brought to the attention of
the Committee subsequent to the filing of this Report:
The appropriate mission of the SBA.
Whether agency employees in the field are
empowered to assist small businesses.
Organizational structure of the agency to
ensure it is meeting its mission, prevent duplication
of offices, modernize the agency to meet the needs of
the business community, particularly underserved and
rural entrepreneurs.
Effectiveness of personnel management to
ensure that employees are rewarded for assisting small
businesses.
Capabilities of SBA employees to provide
proper assistance to small business owners.
Review the agency's cooperative agreements,
partnerships and co-sponsorships.
Continue to assess the adequacy of the
agency's budgetary requests, financial management, and
reporting goals.
Agency personnel capabilities to properly
manage loan defaults to maximize recovery of
collateral.
Whether SBA improperly utilizes statutory
authority to create untested initiatives and the
procedures by which the agency develops such programs.
Monitor the agency's spending and efforts as
it relates to the pandemic response and fully account
for COVID-19-provided appropriations.
Review the SBA's technology and data systems
in an effort to modernize, strengthen, and improve
interoperability between platforms.
Assess the agency's efforts to secure their
networks and data systems.
In carrying out this oversight, the Committee will focus
particularly on streamlining and reorganizing of the agency's
operations to provide maximum assistance to small business
owners. Offices that primarily provide assistance or advice to
headquarters staff that do not promote the interests of small
businesses or protect the federal government as a guarantor of
loans will be recommended for cuts or elimination.
OVERSIGHT OF FEDERAL REGULATORY AND PAPERWORK BURDENS
The Committee will conduct hearings and investigations into
burdensome federal rules, reporting and recordkeeping
requirements affecting small businesses that may include any or
all of the following, as well as matters brought to the
attention of the Committee subsequent to the filing of this
Report:
Examine agency compliance with the
Regulatory Flexibility Act and Paperwork Reduction Act.
Oversee, to the extent relevant, the work of
the Office of Information and Regulatory Affairs at the
Office of Management and Budget and the Chief Counsel
for Advocacy at the Small Business Administration to
ensure that they are fulfilling their mission to
advocate vigorously on behalf of America's small
business owners in regulatory matters at federal
agencies.
Assess whether small businesses are provided
sufficient compliance assistance, including small
entity compliance guides issued by agencies as mandated
by the Small Business Regulatory Enforcement Fairness
Act.
Evaluate the need to amend and further
strengthen the Regulatory Flexibility Act and the
Paperwork Reduction Act to improve agency compliance
with the laws and ensure that small businesses are not
unnecessarily burdened by regulations.
OVERSIGHT OF FEDERAL TAX POLICY
The Committee will conduct hearings and investigations into
the federal tax code, its impact on small business, and
Internal Revenue Service's (IRS) collection of taxes that may
include any or all of the following, as well as matters brought
to the attention of the Committee subsequent to the filing of
this Report:
Identification of tax code provisions and
proposed rules that hinder the ability of small
businesses to create jobs and recommendations for
modifying those provisions to boost small business job
growth.
Examination of the structure of the tax code
in order to simplify compliance for small businesses.
Assessment of the recordkeeping and
reporting requirements associated with tax compliance
and suggestions for reducing such burdens on small
businesses.
Impact of the tax reform law, Pub. L. No.
115-97, on small business tax liabilities and
compliance and its harm to economic growth and job
creation.
Examining effectiveness of small business
tax provisions established by Pub. L. No. 116-136, the
Coronavirus Aid, Relief, and Economic Security (CARES)
Act and Pub. L. No. 116-260, the Consolidated
Appropriations Act, 2021.
Efficiencies at the IRS that improve the
interaction between the government and small business
owners.
Inefficiencies at the IRS that force small
businesses to divert capital from job growth to tax
compliance.
Investigate incentives that may be used to
support the growth of the micro-entrepreneur.
Analyze tax code restructuring to enhance
the ability of small businesses to offer retirement
benefits through lowering their costs.
OVERSIGHT OF HEALTH CARE POLICY
The Committee will conduct hearings and
investigations into federal health care policy (such as
Medicare and Medicaid), as well as matters brought to
the attention of the Committee subsequent to the filing
of this Report:
The availability of health insurance to
small businesses and their employees.
Implementation and efficacy of changes made
to health care policy through various laws enacted
throughout the 116th Congress, including but not
limited to the tax reform law, Pub. L. No. 115-97.
Examination of increases in efficiencies
that will improve the provision of health care while
reducing costs to small businesses that offer their
workers' health insurance.
OVERSIGHT OF ENERGY POLICY
The Committee will conduct hearings and investigations into
energy policy to reduce the cost of energy and increase
renewable energy that may include any or all of the following,
as well as matters brought to the attention of the Committee
subsequent to the filing of this Report:
Innovations developed by small businesses
that create greater reliance on renewable and clean
energy.
Federal policies that increase dependence on
renewable and clean energy and decrease energy costs.
Policies needed to incentivize production of
renewable and clean energy in the United States.
Examination of commercialization of research
in renewable and clean energy.
Investigate methods to increase energy
efficiency and improve resource conservation practices
for small businesses.
Federal initiatives to streamline business
operations and reduce energy costs for small firms.
The primary thrust of the Committee's efforts will focus on
efforts to use the innovation of America's entrepreneurs to
fuel the drive for greater energy independence, including the
development of renewable and clean energy products.
OVERSIGHT OF TRADE AND INTELLECTUAL PROPERTY POLICY
The Committee will conduct hearings and investigations into
international trade and intellectual property policies of
America and its trading partners that may include any or all of
the following, as well as matters brought to the attention of
the Committee subsequent to the filing of this Report:
Impact of free trade agreements to increase
exports by American small businesses.
Oversight of SBA's Office of International
Trade and the agency's efforts to promote small
business exports.
Examination of the impact of illicit actions
by foreign entities on small businesses and whether the
federal government is doing enough to protect their
interests.
Whether the federal government is doing
enough to protect the intellectual property rights of
small businesses by foreign competitors.
The impact of federal intellectual property
policies, particularly patents and copyrights, to
protect the innovations of American entrepreneurs.
Efforts to increase exports by small
businesses.
Whether the United States Trade
Representative and Department of Commerce sufficiently
protect the interests of small businesses in the
negotiation of free trade agreements.
Whether the United States Trade
Representative takes positions at the World Trade
Organization that sufficiently promote the interests of
American small businesses.
Measure the performance of federal trade
programs, which seek to reduce small firms' costs of
expanding into international markets, including those
administered by the SBA, Departments of Commerce and
Agriculture, the Export-Import Bank, and the Overseas
Private Investment Corporation.
Evaluate the implementation of the National
Export Promotion Strategy, particularly its focus on
small businesses.
Examine efforts methods to increase the
representation of small business interests in the
negotiation of new trade agreements and enforcement of
existing agreements and treaties.
Evaluate the availability and quality of
data measuring the contributions to the nation's trade
performance by small businesses, including information
gathered by the Department of Commerce and the United
States Trade Representative.
Assess current trade duties and tariffs,
both domestic and foreign, to evaluate their impact on
American small businesses, economic growth, and job
creation.
Conduct analysis on the importance of
intellectual property rights to underserved
entrepreneurs and how best to increase their
representation of such rights.
OVERSIGHT OF AGRICULTURE POLICY
The Committee will conduct hearings and investigations into
agriculture policies that may include any or all of the
following, as well as matters brought to the attention of the
Committee subsequent to the filing of this Report:
Examine the impact of federal policies on
family farms, ranchers, and rural small businesses,
including changes made by the 2018 Farm Bill.
Evaluate the impact of access to capital
issues facing rural areas, farmers and agribusinesses.
Analyze the extent to which SBA programs and
United States Department of Agriculture programs
overlap and how they can better coordinate to provide
better services and streamlines assistance to the
agriculture community.
Oversee federal activities to spur economic
development in rural communities.
Examine ways in which the federal government
can enhance the use of next-generation technologies in
small agriculture businesses.
Examine efforts to expand small farm,
producer, and ranch operations and encourage more
women, minorities, young people, and other non-
traditional owners to start and invest in small
agricultural ventures.
Investigate the federal government's
response to agricultural business needs during the
pandemic to ensure such firms receive the necessary
assistance to continue operations.
OVERSIGHT OF TECHNOLOGY AND INNOVATION POLICY
The Committee will conduct hearings and investigations into
technology and telecommunications policies that may include any
or all of the following, as well as matters brought to the
attention of the Committee subsequent to the filing of this
Report:
Examine the impact of federal policies on
broadband deployment, particularly in underserved
areas.
Investigate the economic benefits of
increasing the speed of broadband and proposals for
funding the Universal Service Fund.
Examine the cost and benefits of proposed
reforms to the United States patent system and their
impact on small innovators.
Evaluate the need to increase IP education
and services to underserved innovators.
Monitor efforts to assist small businesses
in cybersecurity hygiene and evaluate the role the SBA
has in the process to collect and disseminate
information and educate small businesses.
Assess the current government-wide
initiative to ensure small technology firms have
adequate contracting opportunities while also
protecting government systems through rigorous
cybersecurity requirements.
Examine ways in which the federal government
can enhance the use of next-generation technologies in
small agriculture businesses.
Investigate and strengthen the vulnerability
of small business cybersecurity and its impact on the
broader federal government's ability to protect itself
against cyberattacks and breaches.
OVERSIGHT OF VETERANS' ENTREPRENEURSHIP POLICY
The Committee will conduct hearings and investigations into
veterans' policies that may include any or all of the
following, as well as matters brought to the attention of the
Committee subsequent to the filing of this Report:
Examine how current entrepreneurial and
capital assistance programs are accommodating the
growing veteran population.
Review federal actions to assist veteran
entrepreneurs and ensure they are consistent with
federal small business policy.
Evaluate the effectiveness of federal
programs that seek to improve veterans' access to
markets and training by implementing and monitoring
enhanced programmatic data collection.
Assess whether the federal government is
sufficiently coordinating activities and allocating
resources appropriately with regard to veteran
entrepreneurship activities and initiatives.
Monitor the transition of federal
entrepreneurial programs from the Department of
Veterans' Affairs to the SBA.
OVERSIGHT OF LABOR AND WORKFORCE POLICY
The Committee will conduct hearings and investigations into
labor and workforce policies that may include any or all of the
following, as well as matters brought to the attention of the
Committee subsequent to the filing of this Report:
Review federal actions to assist employers
in workforce training and analyze ways to meet the
growing need for more skilled workers.
Study the effectiveness of efforts to
encourage more underserved workers to enter fields
where skilled labor is needed.
Evaluate the role immigration policy plays
in assisting small businesses meet their workforce
needs and whether the existing visa system should be
reformed.
Investigate policies to encourage more
participation in labor market through initiatives that
can be offered by small businesses, such as increased
minimum wages, paid sick leave, paid parental leave,
and flexible work arrangements.
Study the role student loan debt plays in
entrepreneurship and methods to address the crisis.
LEGISLATIVE ACTIVITIES
Clause 1(d) of rule XI of the Rules of the House of
Representatives requires that each standing committee, no later
than January 2 of each odd-numbered year, submit to the House a
report on the activities of that committee, including a
separate section summarizing the legislative activities of that
committee.
A. Business Meetings
On February 4, 2021, the Committee held an organizational
meeting to appoint Chairs and Ranking Members of the five
subcommittees and adopt Committee Rules.
On February 10, 2021, the Committee held a markup on the
Committee Print (Providing for reconciliation pursuant to S.
Con. Res. 5, the Concurrent Resolution on the Budget for Fiscal
Year 2021).
On Thursday July 29, 2021, the Committee held a markup on
H.R. 4256, the Investing in Main Street Act of 2021, H.R. 4481,
the Small Business 7(a) Loan Agent Transparency Act, H.R. 4531,
the 7(a) Loan Agent Oversight Act, H.R. 3469, the Veteran
Entrepreneurship Training Act of 2021, H.R. 3462, the SBA Cyber
Awareness Act, H.R. 4515, the Small Business Development Center
Cyber Training Act of 2021, and H.R. 4513, the Small Business
Advanced Cybersecurity Enhancements Act of 2021.
On Thursday, September 9, 2021, the Committee held a markup
on the Committee Print (Providing for reconciliation pursuant
to S. Con. Res. 14, the Concurrent Resolution on the Budget for
Fiscal Year 2022).
On February 3, 2022, the Committee held a markup on H.R.
6445, the Small Business Development Centers Improvement Act of
2022, H.R. 6441, the Women's Business Centers Improvement Act
of 2022, H.R. 6450, the SCORE for Small Business Act of 2022,
H.R. 4877, the One Stop Shop for Small Business Compliance Act
of 2021, and H.R. 6454, the Small Business Advocacy
Improvements Act of 2022.
On Wednesday, May 11, 2022, the Committee held a markup on
H.R. 7352, the PPP and Bank Fraud Enforcement Harmonization Act
of 2022, H.R. 7334, the COVID-19 EIDL Fraud Statute of
Limitations Act of 2022, H.R. 7622, the Small Business
Workforce Pipeline Act of 2022, H.R. 7664, the Supporting Small
Business and Career and Technical Education Act of 2022, H.R.
7670, the Women-Owned Small Business program Transparency Act,
H.R. 5879, the Hubzone Price Evaluation Preference
Clarification Act of 2021, and H.R. 7694, the Strengthening
Subcontracting for Small Businesses Act of 2022.
On Wednesday, September 21, 2022, the Committee held a
markup on H. Res. 1298, Of inquiry directing the Secretary of
Treasury to transmit certain documents to the House of
Representatives relating to the role of the Department of
Treasury in the Paycheck Protection Program of the Small
Business Administration and H.R. 8844, the STEP Improvement Act
of 2022.
B. Legislation
AMERICAN RESCUE PLAN ACT OF 2021
H.R. 1319
Summary
H.R. 1319 provides additional relief to address the
continued impact of the COVID-19 pandemic on the economy,
public health, state and local governments, individuals, and
businesses. Title V outlines the small business policies in the
bill.
This title, as reported from the Committee, provides relief
for small businesses throughout the country adversely impacted
by the COVID-19 pandemic. It provides financial assistance in
the form of grants and forgivable loans to the hardest hit
small businesses and non-profits, strengthening outreach and
education to small firms located in hard to reach and
underserved areas. It also provides additional administrative
funding to the SBA to ensure swift and strong implementation
and oversight of these efforts. More specifically, the title
would provide:
$7.25 billion for expanded eligibility of
small nonprofits and internet publishing organizations
for the Paycheck Protection Program (PPP).
$ 15 billion for adding more funds to the
Targeted Economic Injury Disaster Loan (EIDL) Advance
program and addresses any potential funding shortfalls
to ensure that remaining eligible businesses can access
the $10,000 grant.
$25 billion for the creation and
implementation of the Restaurant Revitalization Fund to
allow SBA to make grants to eligible restaurants for
specified costs such as payroll, operational expenses,
and paid sick leave.
$175 million to establish a Community
Navigator Pilot Program designed to strengthen outreach
and education to small businesses, particularly
underserved firms, that were unable access relief
programs.
$1.25 billion for the Shuttered Venue
Operators Grant program, including a set aside for
technical assistance to help eligible entities apply
for grants.
$840 million for administrative costs to
prevent, prepare and respond to the COVID-19 pandemic,
including expenses related to PPP, aid to venues, and
grants to restaurants.
$460 million for the Economic Injury
Disaster Loan program, of which $70 million is for the
cost of direct loans and $390 million is for
administrative costs.
$25 million for SBA's Office of Inspector
General for oversight, to remain available until
expended.
Legislative History
In the 116th Congress, the Committee on Small Business and
its Subcommittee held many hearings and forums on a wide
variety of subjects relevant to pandemic aid programs,
including the following hearings:
The Impact of Coronavirus on America's Small
Businesses (March 10, 2020)
Member Day Hearing on COVID-19 Response and
Recovery: Committee on Small Business (April 23, 2020)
Update from the Small Business
Administration's Resource Partners on the
Implementation of the CARES Act (May 7, 2020)
A Conversation with SBA Paycheck Protection
Program Lenders (May 13, 2020)
First Look: SBA Office of Inspector General
Preliminary Paycheck Protection Program Report (May 15,
2020)
The Effects of COVID-19 on Rural Economies
(May 20, 2020)
Business Interruption Coverage: Are
Policyholders Being Left Behind? (May 21, 2020)
Small Business Priorities for the Next Phase
of Recovery: How to Leverage the Small Business
Development Center Network (May 28, 2020)
The Economic Injury Disaster Loan Program: A
View from Main Street (June 10, 2020)
Paycheck Protection Program: Loan
Forgiveness and Other Challenges (June 17, 2020)
An Overview of the Dynamic Between the
Defense Production Act and Small Contractors (June 24,
2020)
The Economic Injury Disaster Loan Program:
Status Update from the Administration (July 1, 2020)
Supply Chain Resiliency (July 2, 2020)
Long-Lasting Solutions for a Small Business
Recovery (July 15, 2020)
Putting America Back to Work: The Role of
Workforce Development and Small Business Rehiring (July
16, 2020)
Oversight of the Small Business
Administration and Department of Treasury Pandemic
Programs (July 17, 2020)
21st Century SBA: An Analysis of SBA's
Technology Systems (July 22, 2020)
Kick Starting Entrepreneurship and Main
Street Economic Recovery (September 10, 2020)
Paycheck Protection Program: An Examination
of Loan Forgiveness, SBA Legacy Systems, and inaccurate
Data (September 24, 2020)
A Review of PPP Forgiveness (September 25,
2020)
Taking Care of Business: How Childcare is
Important for Regional Economies (September 30, 2020)
Preventing Fraud and Abuse of PPP and EIDL:
An Update with the SBA Office of Inspector General and
the Government Accountability Office (October 1, 2020)
On February 4, 2021, the Committee on Small Business held a
hearing on the State of the Small Business Economy in the Era
of COVID-19. Committee members heard how the pandemic relief
programs were helping small employers and what additional steps
the federal government could take to strengthen small business
resiliency.
On February 10, 2021, the Committee approved its
recommendations for the small business policies provided in the
American Rescue Plan (Committee Print: providing for
reconciliation pursuant to S. Con. Res. 5, the Concurrent
Resolution on the Budget for Fiscal Year 2021). H.R. 1319,
which included the Committee's recommendations, was introduced
on February 24, 2021, by Representative John Yarmuth (D-KY).
The bill passed the House on February 27, 2021, by a vote of
219 to 212 (Roll Call No. 49). H.R. 1319 was received in the
Senate and read twice. On March 6, 2021, the bill passed the
Senate with an amendment by a vote of 50-49 (Record Vote No.
110). On March 10, 2021, the House voted 220 to 211 to approve
the bill as amended by the Senate (Roll Call No. 72). The bill
was signed into law by President Biden on March 11, 2021 (Pub.
L. No. 117-2).
SBA CYBER AWARENESS ACT
H.R. 3462
Summary
H.R. 3462, requires the SBA to issue annual reports
assessing its information technology (IT) and cybersecurity
infrastructure and notify Congress and affected parties of
cyber incidents when they occur. Specifically, the bill would
require SBA to issue annual reports, which must include the
following information: (1) an assessment of SBA's IT and
cybersecurity infrastructure; (2) its strategy to improve
cybersecurity protections; (3) a detailed account of any IT
equipment of SBA that was manufactured by an entity with a
principal place of business in the People's Republic of China;
and 4) an account of any cybersecurity risk or incident
occurring within the two years preceding the date the report is
submitted, and SBA's actions to remediate the cybersecurity
risk or incident.
In addition, if a cybersecurity risk or incident occurred,
SBA is instructed to notify the House and Senate small business
committees (committees) within 7 days. And within 30 days
notify the individuals and small business concerns affected by
the cybersecurity risk or incident and submit a report
summarizing how the cybersecurity risk or incident occurred and
how many parties were affected to the committees.
Legislative History
H.R. 3462 was introduced on May 21, 2021, by
Representatives Jason Crow (D-CO) and Young Kim (R-CA). The
bill was reported by the Committee on Small Business on October
12, 2021, and passed the House on November 2, 2021, under
Suspension of the Rules, by a vote of 423 to 0 (Roll Call No.
350). H.R. 3462 was received in the Senate and read twice and
referred to the Committee on Small Business and
Entrepreneurship on November 3, 2021. On February 17, 2022, the
Committee on Small Business and Entrepreneurship reported H.R.
3462, without amendment, and the bill was placed on the Senate
Legislative Calendar under General Orders (Calendar No. 281).
On September 28, 2022, the measure passed the Senate with an
amendment in the nature of a substitute and was sent to the
House the following day. On December 6, 2022, the House
concurred with the Senate amendment to the measure, and H.R
3462 was approved by a vote of 417-0 (Roll no. 506). The bill
was signed into law by President Biden on December 21, 2022.
VETERAN ENTREPRENEURSHIP TRAINING ACT OF 2021
H.R. 3469
Summary
H.R. 3469 would codify for five years the Boots to Business
program. The Boots to Business program is a two day, in person,
entrepreneurship program offered by the Small Business
Administration (SBA) as part of the Department of Defense's
Transition Assistance program (TAP). Transitioning service
members and their spouses are eligible to receive counseling
and training services related to self-employment, including a
presentation regarding self-employment and ownership of a small
business concern, an online self-study course focused on
entrepreneurship, an in-person classroom introducing self-
employment and ownership, and an in-depth training regarding
the creation of a business plan. To carry out the program, the
bill allows the Administrator to make grants to Veteran
Business Outreach Centers and also make the program materials
available to both the Department of Defense and the Secretary
of Veterans Affairs. Lastly, H.R. 3469 requires SBA to submit
an annual report evaluating the performance and effectiveness
of the program to the Senate Committee on Small Business and
Entrepreneurship and the House Committee on Small Business.
Legislative History
H.R. 3469 was introduced on May 21, 2021, by
Representatives Bradley Scott Schneider (D-IL) and Roger
Williams (R-TX). The bill was reported from the Small Business
Committee on October 12, 2021, and passed the House on November
2, 2021, under Suspension of the Rules, by a vote of 418 to 2
(Roll Call No. 348). H.R. 3469 was received in the Senate and
read twice and referred to the Committee on Small Business and
Entrepreneurship on November 3, 2021.
INVESTING IN MAIN STREET ACT OF 2021
H.R. 4256
Summary
H.R. 4256 amends the Small Business Investment Act of 1958
to authorize certain banking entities to invest up to 15% of
their capital and surplus in one or more small business
investment companies (SBICs) or any entity established to
invest solely in SBICs, subject to approval of the appropriate
federal banking agency. Specifically, the bill would allow
certain banks and savings associations to increase the amount
that they invest in SBICs.
Legislative History
H.R. 4256 was introduced on June 30, 2021, by
Representatives Judy Chu (D-CA) and Andrew Garbarino (R-NY).
The bill was reported by the Small Business Committee on
October 12, 2021, and passed the House on November 2, 2021,
under Suspension of the Rules, by a vote of 413 to 10 (Roll
Call No. 349). H.R. 4256 was received in the Senate and read
twice and referred to the Committee on Banking, Housing, and
Urban Affairs on November 3, 2021.
SMALL BUSINESS 7(A) LOAN AGENT TRANSPARENCY ACT
H.R. 4481
Summary
H.R. 4481 requires the SBA to conduct oversight of 7(a)
loan agents by establishing a registration system with unique
identifiers for 7(a) agents to help the Office of Credit Risk
Management (OCRM) track and evaluate the performance of 7(a)
loans generated through loan agent activity. H.R. 4481 also
enhances OCRM's and SBA Lender Oversight Committee's
enforcement authority with respect to loan agents.
Legislative History
H.R. 4481 was introduced on July 16, 2021, by
Representatives Dean Phillips (D-MN) and Daniel Meuser (R-PA).
The bill was reported by the Small Business Committee on
October 12, 2022, and passed the House on November 2, 2021,
under Suspension of the Rules, by a vote of 407 to 9 (Roll Call
No. 351). H.R. 4481 was received in the Senate and read twice
and referred to the Committee on Small Business and
Entrepreneurship.
SMALL BUSINESS ADVANCED CYBERSECURITY ENHANCEMENTS ACT OF 2021
H.R. 4513
Summary
H.R. 4513 requires the SBA to establish a central small
business cybersecurity assistance unit within the SBA and a
regional cybersecurity-assistance unit within each Small
Business Development Center (SBDC). These units would allow
small businesses to communicate cyber threats and defensive
measures with the federal government and prohibit any cause of
action against a small business for such communication. The
national cybersecurity and communications integration center
shall have access to all cyber threat indicators or defensive
measures within the central, national, and regional small
cybersecurity assistance units.
In addition, SBA would be required to seek input from the
Office of Advocacy to ensure that any policies and procedures
adopted do not add regulatory burdens onto small business
concerns but leverage resources and relationships to assist
small business concerns in improving cybersecurity practices.
Legislative History
H.R. 4513 was introduced on July 19, 2021, by
Representative Byron Donalds (R-FL), Chairwoman Nydia Velazquez
(D-NY), and Representatives Steve Chabot (R-OH) and Chrissy
Houlahan (D-PA). On October 12, 2021, the Committee on Small
Business reported H.R. 4513, without amendment, and the bill
was placed on the Union Calendar (Calendar No. 102).
SMALL BUSINESS DEVELOPMENT CENTER CYBER TRAINING ACT OF 2021
H.R. 4515
Summary
H.R. 4515 requires the SBA to establish a cyber counseling
certification program for certifying at least 5 or 10% of the
total number of employees of lead SBDCs to provide free
cybersecurity training to small businesses. In addition, the
SBA would be required to reimburse SBDCs for costs related to
the certification program, up to $350,000.
Legislative History
H.R. 4515 was introduced on July 19, 2021, by
Representatives Andrew Garbarino (R-NY), Dwight Evans (D-PA),
Steve Chabot (R-OH), and Chrissy Houlahan (D-PA). The bill was
reported the Small Business Committee on October 12, 2021, and
passed the House on November 2, 2021, under Suspension of the
Rules, by a vote of 409 to 14 (Roll Call No. 353). H.R. 4515
was received in the Senate and read twice and referred to the
Committee on Small Business and Entrepreneurship on November 3,
2021. The Senate Small Business and Entrepreneurship Committee
reported a similar bill on May 25, 2022, and the Senate
approved S. 1687 on September 28, 2022 by a voice vote. On
December 6, 2022, the House of Representatives approved S.
1687, as amended by a vote of 380-46. On December 14, 2022, the
Senate agreed to the House amendment to S. 1687 by unanimous
consent.
7(A) LOAN AGENT OVERSIGHT ACT
H.R. 4531
Summary
H.R. 4531 requires the SBA's Office of Credit Risk
Management (OCRM) to submit an annual report to Congress
regarding the performance and risk associated with 7(a) loans
generated by loan agents, who provide fee-based referral and
loan application services. The report must include: (1) the
number and type of agents assisting applicants for 7(a) loans;
(2) the number of fraudulent loans made for which an applicant
used the services for a 7(a) agent; and (3) the number and
aggregate dollar value of referral fees paid to 7(a) agents).
Legislative History
H.R. 4531 was introduced on July 19, 2021, by
Representatives Daniel Meuser (R-PA) Dean Phillips (D-MN). The
bill was reported by the Small Business Committee on October
12, 2021, and passed the House on November 2, 2021, under
Suspension of the Rules, by a vote of 411 to 9 (Roll Call No.
352). H.R. 4531 was received in the Senate and read twice and
referred to the Committee on Small Business and
Entrepreneurship on November 3, 2021.
INFLATION REDUCTION ACT OF 2022
H.R. 5376
Summary
H.R. 5376 provides for deficit reduction through corporate
tax reform, an excise tax on the repurchase of corporate stock,
and funding the Internal Revenue Service and improving taxpayer
compliance. It also includes prescription drug pricing reform
by lowering prices through drug price negotiation, providing
prescription drug inflation rebates, including maximum out-of-
pocket cap for Medicare beneficiaries, and delaying the
implementation of prescription drug rebate rule.
Additionally, there are specific provisions for Affordable
Care Act subsidies, investments in energy security and clean
energy incentives, rural development and agricultural credit
with the Rural Energy for America program, and funding for the
Department of Housing and Urban Development for loans and
grants. Funding is also provided for coastal and tribal
communities to address climate change, the Department of Energy
for programs regarding energy rebates and efficiency, emergency
response and preparedness, natural resource matters, and the
renewable fuel program through the Environmental Protection
Agency.
Legislative History
On September 9, 2021, the Committee approved its small
business policy recommendations for H.R. 5376 (Committee Print:
providing for reconciliation pursuant to S. Con. Res. 14, the
Concurrent Resolution on the Budget for Fiscal Year 2022). H.R.
5376, which included the Committee's recommendations, was
introduced on September 27, 2021, by Representative John
Yarmuth (D-KY). The bill passed the House on November 19, 2021,
by a vote of 220 to 213 (Roll Call No. 385). H.R. 5376 was
received in the Senate and read twice. On August 7, 2022, the
bill passed the Senate with an amendment by a vote of 51-50
(Record Vote No. 325). The Senate's amendment to H.R. 5376
removed the small business policy recommendations approved by
the Committee. On August 12, 2022, the House voted 220 to 207
to approve the bill as amended by the Senate (Roll Call No.
420). The bill was signed into law President Joe Biden on
August 16, 2022 (Pub. L. No. 117-169).
ONE STOP SHOP FOR SMALL BUSINESS COMPLIANCE ACT OF 2021
H.R. 4877
Summary
H.R. 4877 requires the Small Business and Agriculture
Regulatory Enforcement Ombudsman to create a centralized
website with hyperlinks to the small business compliance guides
for each federal agency and contact information for individuals
who can assist small entities with each guide. In addition, the
bill would require the Ombudsman to include an assessment of
federal agency compliance with Section 212 of the Small
Business Regulatory Enforcement Fairness Act of 1996.
Legislative History
H.R. 4877 was introduced on July 30, 2021, by
Representatives Antonio Delgado (D-NY) and Beth Van Duyne (R-
TX). The bill was reported by the Small Business Committee on
March 7, 2022, and passed by the House on April 26, 2022, under
Suspension of the Rules, by a voice note. H.R. 4877 was
received in the Senate and read twice and referred to the
Committee on Small Business and Entrepreneurship on April 27,
2022. On September 28, 2022, the bill passed the Senate without
amendment by voice vote. The bill was signed into law by
President Biden on October 10, 2022 (Pub. L. 117-118).
WOMEN'S BUSINESS CENTERS IMPROVEMENT ACT OF 2022
H.R. 6441
Summary
H.R. 6441 strengthens the Women's Business Center program
(WBCs) to ensure that women entrepreneurs across the country
have access to free or low-cost counseling and training
services. The bill extends the authorization for the program
for four years, through Fiscal Year 2025, increasing the
authorization level to $31.5 million per year. The bill would
raise the cap on individual center grants from $150,000 to
$300,000, establish an accreditation program to improve the
quality of services provided by centers, recognize the
Association of Women's Business Centers and improve
coordination between the Association and SBA, and enhance SBA's
Office of Women's Business Ownership.
Legislative History
H.R. 6441 was introduced on January 20, 2022, by
Representatives Sharice Davids (D-KS) and Claudia Tenney (R-
NY). The bill was reported by the Small Business Committee on
March 7, 2022, and passed the House on April 26, 2022, under
Suspension of the Rules, by a voice note. H.R. 6441 was
received in the Senate and read twice and referred to the
Committee on Small Business and Entrepreneurship on April 27,
2022.
SMALL BUSINESS DEVELOPMENT CENTERS IMPROVEMENT ACT OF 2022
H.R. 6445
Summary
H.R. 6445 modernizes the Small Business Development Center
network to enable SBDCs to deliver management and technical
assistance to small businesses through their nationwide network
of 62 lead centers, and more than 900 sub-centers. The bill
extends the authorization for four years, through Fiscal Year
2025, increasing the authorization level to $175 million per
year. The bill allows SBDCs to advertise and market its
services, collect fees for partnership activities, and update
its operations. The bill also requires a comprehensive annual
report to measure the effectiveness of the program and its
services.
Legislative History
H.R. 6445 was introduced on January 20, 2022, by
Representatives Jared Golden (D-ME) and the late Jim Hagedorn
(R-MN). The bill was reported by the Small Business Committee
on March 8, 2022, and passed the House on April 26, 2022, under
Suspension of the Rules, by a voice note. H.R. 6445 was
received in the Senate and read twice and referred to the
Committee on Small Business and Entrepreneurship on April 27,
2022.
SCORE FOR SMALL BUSINESS ACT OF 2022
H.R. 6450
Summary
H.R. 6450 provides oversight of SCORE, the nation's largest
network of volunteer expert business mentors. The bill
authorizes the program for two years, through Fiscal Year 2023,
increasing the authorization level to $13.5 million per year.
The bill requires the organization to align salaries and
performance awards with federal standards, devise policies to
protect whistleblowers, and promote diversity by recruiting
diverse volunteers for each chapter of the program and provides
services to rural and underserved communities. In addition, the
SBA is required to submit an annual report on the performance
and effectiveness of the SCORE program to the Senate Committee
on Small Business and Entrepreneurship and the House Committee
on Small Business.
Legislative History
H.R. 6450 was introduced on January 20, 2022, by
Representatives Young Kim (R-CA) and Angie Craig (D-MN). The
bill was reported by the Small Business Committee on March 7,
2022, and passed the House on April 26, 2022, under Suspension
of the Rules, by a voice vote. H.R. 6450 was received in the
Senate and read twice and referred to the Committee on Small
Business and Entrepreneurship on April 27, 2022.
SMALL BUSINESS ADVOCACY IMPROVEMENTS ACT OF 2022
H.R. 6454
Summary
H.R. 6454 expands and clarifies the primary functions and
additional duties of the Office of Advocacy, which include
examining the role of small businesses in the international
economy. Also, the Office would be required to represent the
views and interests of small business before foreign
governments and international entities.
Legislative History
H.R. 6454 was introduced on January 20, 2022, by Ranking
Member Blaine Luetkemeyer (R-MO) and Representative Troy Carter
(D-LA). The bill was reported by the Small Business Committee
on March 7, 2022, and passed the House on April 26, 2022, under
Suspension of the Rules, by a voice note. H.R. 6454 was
received in the Senate and read twice and referred to the
Committee on Small Business and Entrepreneurship on April 27,
2022
RELIEF FOR RESTAURANTS AND OTHER HARD HIT SMALL BUSINESSES ACT OF 2022
H.R. 3807
Summary
H.R. 3807 replenishes the Restaurant Revitalization Fund
and creates a separate industry neutral relief program for
small businesses that were hard-hit by the pandemic. In the
American Rescue Plan, Congress provided $28.6 billion for the
Restaurant Revitalization Fund, which provided relief to more
than 100,000 establishments nationwide. However, more than
278,000 applications were filed, requesting a total of $72.2
billion. The bill provides $42 billion to replenish the
Restaurant Revitalization Fund, allowing the SBA to process the
applications and award grants to the more than 150,000 eligible
entities that originally applied for funding.
The bill provides $13 billion for the newly established
Hard Hit Industries Award program. The program offers grants to
small businesses who have suffered a pandemic-related revenue
loss of 40%. Funds may be used for expenses including mortgage,
rent, utility payments, and payroll. The priority must be those
who have experienced a loss of at least 80% and the second
priority must be those that experienced a loss of at least 60%.
The Restaurant Revitalization Fund and the Hard-Hit Industries
Award program will be funded by monies reclaimed, seized, or
returned to the Federal government, primarily from bad actors
attempting to defraud the programs.
The bill also extends to March 11, 2023, the timeline for
which Shuttered Venue Operators Grant recipients can use grant
funds to cover their expenses.
Legislative History
H.R. 3807 was introduced on June 11, 2021, by
Representatives Earl Blumenauer (D-OR) and Brian Fitzpatrick
(R-PA) and referred to the Small Business Committee. The House
passed the House on April 7, 2022, by a vote of 223 to 203
(Roll Call No. 123). On May 25, 2022, the bill was read the
second time and placed on the Senate Legislative Calendar under
General Orders (Calendar No. 387).
COVID-19 EIDL FRAUD STATUTE OF LIMITATIONS ACT OF 2022
H.R. 7334
Summary
H.R. 7334 establishes a 10-year statute of limitations for
criminal charges and civil enforcement against borrowers who
engage in fraud in all COVID-19 Economic Injury Disaster Loan
programs.
Legislative History
H.R. 7334 was introduced on March 31, 2022, by Ranking
Member Blaine Luetkemeyer (R-MO) and Chairwoman Nydia Velazquez
(D-NY). The bill was reported by the Small Business Committee
on May 17, 2022, and passed the House on June 8, 2022, under
Suspension of the Rules, by a vote of 416 to 3 (Roll Call No.
247). The bill passed the Senate without amendment by voice
vote on July 28, 2022. On August 5, 2022, H.R. 7334 was signed
into law by President Biden (Pub. L. No. 117-165).
PPP AND BANK FRAUD ENFORCEMENT HARMONIZATION ACT OF 2022
H.R. 7352
Summary
H.R. 7352 establishes a 10-year statute of limitations for
criminal charges and civil enforcement against borrowers who
engage in fraud in the Paycheck Protection Program loan.
Legislative History
H.R. 7352 was introduced on March 31, 2022, by Chairwoman
Nydia Velazquez (D-NY) and Ranking Member Blaine Luetkemeyer
(R-MO). The bill was reported by the Small Business Committee
on May 17, 2022, and passed the House on June 8, 2022, under
Suspension of the Rules, by a vote of 421 to 0 (Roll Call No.
246). The bill passed the Senate without amendment by voice
vote on July 28, 2022. On August 5, 2022, H.R. 7352 was signed
into law by President Biden (Pub. L. No. 117-166).
SMALL BUSINESS WORKFORCE PIPELINE ACT OF 2022
H.R. 7622
Summary
H.R. 7622 requires SBA to add work-based learning and
apprenticeship program assistance to the list of services that
must be provided by small business development centers. The SBA
must provide information and assistance to small business
concerns, including disseminating relevant information from the
Department of Labor and other Federal agencies on how to
establish and improve work-based learning opportunities,
apprenticeship programs, pre-apprenticeship programs, and job
training programs.
Legislative History
H.R. 7622 was introduced on April 28, 2022, by
Representatives Jason Crow (D-CO) and Scott Fitzgerald (R-WI).
The bill was reported by the Small Business Committee and
passed the House on June 8, 2022, under Suspension of the
Rules, by a vote of 368 to 52 (Roll Call No. 249). H.R. 7622
was received in the Senate and read twice and referred to the
Committee on Small Business and Entrepreneurship on June 9,
2022.
SUPPORTING SMALL BUSINESS AND CAREER AND TECHNICAL EDUCATION ACT OF
2022
H.R. 7664
Summary
H.R. 7664 directs SBDCs and WBCs to provide support to
small businesses looking to use career and technical education
programs to meet hiring needs and help recent graduates start
small businesses.
Legislative History
H.R. 7664 was introduced on May 3, 2022, by Representatives
Roger Williams (R-TX) and Marie Newman (D-IL). The bill was
reported by the Small Business Committee and passed the House
on June 8, 2022, under Suspension of the Rules, by a vote of
399 to 18 (Roll Call No. 250). H.R. 7664 was received in the
Senate and read twice and referred to the Committee on Small
Business and Entrepreneurship on June 9, 2022.
WOSB PROGRAM TRANSPARENCY ACT
H.R. 7670
Summary
H.R. 7670 requires SBA to submit an annual report to the
Senate Committee on Small Business and Entrepreneurship and the
House Committee on Small Business on the Women-Owned Small
Business Federal Contracting program. Specifically, the report
should include detailed information pertaining to the amount of
contracting dollars awarded through the program, the number of
certifications being issued, the amount of program examinations
being conducted, the number of companies being decertified, and
the number of contracts incorrectly awarded under industries or
NAICS codes ineligible to the program, as well as any actions
taken by SBA to properly train agency personnel.
Legislative History
H.R. 7670 was introduced on May 6, 2022, by Representatives
Chrissy Houlahan (D-PA) and Claudia Tenney (R-NY). The bill was
reported by the Small Business Committee on May 17, 2022, and
passed by the House on June 8, 2022, under Suspension of the
Rules, by a vote of 402 to 19 (Roll Call No. 251). H.R. 7670
was received in the Senate and read twice and referred to the
Committee on Small Business and Entrepreneurship on June 9,
2022,
STRENGTHENING SUBCONTRACTING FOR SMALL BUSINESS ACT OF 2022
H.R. 7694
Summary
H.R. 7694 requires federal agencies to consider prior
compliance with subcontracting plans when evaluating offers for
contracts.
Legislative History
H.R. 7694 was introduced on May 10, 2022, by
Representatives Pete Stauber (R-MN) and Kweisi Mfume (D-MD).
The bill was approved by the Small Business Committee on May
17, 2022, and passed the House on June 8, 2022, under
Suspension of the Rules by a vote of 411 to 11 (Roll Call No.
252). H.R. 7694 was received in the Senate and read twice and
referred to the Committee on Small Business and
Entrepreneurship on June 9, 2022.
HUBZONE PRICE EVALUATION PREFERENCE CLARIFICATION ACT OF 2021
H.R. 5879
Summary
H.R. 5879 clarifies that the HUBZone price evaluation
preference applies to orders.
Legislative History
H.R. 5879 was introduced on November 4, 2021, by
Representatives Marie Newman (D-IL) and Maria Elvira Salazar
(R-FL). The bill was reported by the Small Business Committee
on May 17, 2022, and passed the House on June 8, 2022, under
Suspension of the Rules, by a vote of 359 to 61 (Roll Call No.
248). H.R. 5879 was received in the Senate and read twice and
referred to the Committee on Small Business and
Entrepreneurship on June 9, 2022.
COLLATERAL REQUIREMENTS FOR DISASTER LOANS ACT
H.R. 8482
Summary
H.R. 8482 makes permanent the increased threshold limits
for the minimum major-disaster loan amount for which the SBA
may require collateral.
Legislative History
H.R. 8482 was introduced on July 21, 2022, by
Representatives Nydia Velazquez (D-NY) and Garret Graves (R-
LA). On July 21, 2022, the bill was referred to the House
Committee on Small Business. A version of H.R. 8482 was
included as an amendment to H.R. 5118, the ``Continental Divide
Trail Completion Act.'' H.R. 5118 was approved by the House on
July 29, 2022, by a vote of 218 to 199 (Roll Call No. 413).
H.R. 5118 was received in the Senate on August 2, 2022.
OF INQUIRY DIRECTING THE SECRETARY OF TREASURY TO TRANSMIT CERTAIN
DOCUMENTS TO THE HOUSE OF REPRESENTATIVES RELATING TO THE ROLE OF THE
DEPARTMENT OF THE TREASURY IN THE PAYCHECK PROTECTION PROGRAM OF THE
SMALL BUSINESS ADMINISTRATION
H. RES. 1298
Summary
H. Res. 1298 directs the Department of Treasury to provide
the House of Representatives with any documents and
communications about the Treasury's role with respect to the
Paycheck Protection Program, including those related to the
requirement for the Secretary of the Treasury to testify before
the Small Business Committee.
Legislative History
H. Res. 1298 was introduced on July 28, 2022, by
Representative Blaine Luetkemeyer (R-MO). On September 21,
2022, the Small Business Committee held a mark-up and ordered
the Resolution, as amended, to be reported without
recommendation by a vote of 25-0. The first adopted amendment
was offered by Representative Van Duyne (R-TX) and request all
documents and communications relating to the total amount of
funding recovered from fraudulently obtained COVID-19 relief,
specifically COVID EIDLs, EIDL Advances, Targeted Advances, and
the Restaurant Revitalization Fund. The amendment by
Representative Van Duyne was adopted by a vote of 17-4. The
second adopted amendment was offered by Representative Meuser
(D-PA) and requests all documents and communications relating
to Treasury's actions to assist small businesses with
addressing the impact of federal regulations. The amendment by
Representative Meuser was adopted by a vote of 12-8. The Small
Business Committee reported the Resolution as amended on
September 28, 2022. On September 28, 2022, the bill was placed
on the House Calendar, Calendar No. 123.
STEP IMPROVEMENT ACT OF 2022
H.R. 8844
Summary
H.R. 8844 modernizes and strengthens the State Trade
Expansion Program (STEP), which seeks to increase the number of
small businesses that export and raise the value of existing
small business exporters. The bill extends the authorization
for four years, through Fiscal Year 2026, at a level of $30
million per year. It also makes improvements to the grant
process. Specifically, the bill would create a standardized
application process, increase flexibility for rant recipients,
improve communicate annually between SBA and the States. It
would also require the SBA to collect performance metrics and
report to Congress annually.
Legislative History
H.R. 8844 was introduced on September 15, 2022, by
Representatives Dwight Evans (D-PA), Young Kim (R-CA), Marie
Newman (D-IL), and Mike Flood (R-NE). On September 20, 2022,
the bill was ordered to be reported by voice vote. On December
6, 2022, the House of Representatives approved the bill, under
Suspension of the Rules, by a vote of 380-46. H.R. 8844 was
received in the Senate and read twice and referred to the
Committee on Small Business and Entrepreneurship on December 7,
2022.
SBIR AND STTR EXTENSION ACT OF 2022
S. 4900
Summary
S. 4900 reauthorizes and modifies the Small Business
Innovation Research (SBIR) program, the Small Business
Technology Transfer (STTR) Program, and related pilot programs
for three years, through Fiscal Year of 2025. Specifically, the
bill expands federal research security practices within the
SBIR and STTR programs to protect against technology theft by
malign foreign governments, requires the Department of Defense
to increase the use of open topic solicitations to attract new
ideas, raise the performance standards for more experienced
firms, and requires new reports by the SBA Office of Inspector
General and Government Accountability Office.
Legislative History
S. 4900 was introduced in the Senate on September 20, 2022,
by Chairman Benjamin Cardin (D-MD) and Senator Joni Ernst (R-
IA). The bill was read twice, considered, read the third time,
and passed without amendment by unanimous consent on September
20, 2022. The bill passed the House, under Suspension of the
Rules, by a vote of 415 to 9 (Roll Call No. 461) on September
29, 2022. S. 4900 was signed into law by President Biden on
September 30, 2022 (Pub. L. No. 117-183.)
In addition, a provision to extend the SBIR, STTR, and
pilot programs for two years was included in the National
Defense Authorization Act for Fiscal Year 2023. Another
provision to extend the programs for five years was included in
H.R. 4521, United States Innovation and Competition Act.
OVERSIGHT SUMMARY
Clause 1(d) of Rule XI of the Rules of the House of
Representatives requires each standing committee, not later
than January 2 of each odd numbered year, to submit to the
House a report on the activities of that committee, including a
separate section summarizing the oversight activities of that
committee. The report shall also include a delineation of any
hearings held pursuant to clauses 2(n), (o), or (p) of Rule XI
related to waste, fraud and abuse in government programs.
PART A
Full Committee Hearings
First Session of the 117th Congress
STATE OF THE SMALL BUSINESS ECONOMY IN THE ERA OF COVID-19
On Thursday, February 4, 2021, the Committee on Small
Business held a hybrid hearing titled, ``State of the Small
Business Economy in the Era of COVID-19.'' The hearing allowed
Members to assess the state of the small business economy after
nearly a year into the global COVID-19 pandemic. Members heard
how relief efforts such as the Paycheck Protection Program
(PPP), Economic Injury Disaster Loan program (EIDL), and
Shuttered Venue Operator program (SVOG) have benefited small
firms. Members also heard about potential improvements that may
be needed in these programs along with other policies that will
be needed to spur equitable recovery from COVID-19 for all
small businesses in 2021.
Witnesses on the panel included: Dr. Robert W. Fairlie,
Professor, Department of Economics, University of California-
Santa Cruz, Santa Cruz, CA; Ms. Sharon Pinder, President & CEO,
Capital Region Minority Supplier Development Council, Silver
Spring, MD; Mr. Stephen Schoaps, Owner, Strother Cinema,
Seminole, OK; and Ms. Karen Kerrigan, President & CEO, SBE
Council, Vienna, VA.
In his testimony, Dr. Fairlie testified regarding his
recent research on the impact of COVID-19 on small businesses
owned by people of color, showing that over 40 percent of
Black-owned businesses and over 30 percent of Latino-owned
businesses closed due to the pandemic. Ms. Pinder testified
that fully leveraging the Defense Production Act and
implementing ``Buy American'' policies could help the
development and growth of minority-owned businesses, especially
in the area of advanced manufacturing. In his testimony, Mr.
Schoaps spoke of the hardships COVID-19 has presented for his
small two-screen theater in rural Oklahoma, and about the
measures he's taken to generate some revenue in compliance with
social distancing guidelines. Ms. Kerrigan's testimony
presented numerous surveys conducted of small business owners
on the sustainability of their businesses in the COVID-19 era,
and on how their needs as entrepreneurs have changed in order
to adapt.
THE NEXT STEPS FOR THE PAYCHECK PROTECTION PROGRAM
On Wednesday, March 10, 2021, the Committee on Small
Business held a hybrid hearing titled, ``The Next Steps for the
Paycheck Protection Program.'' The hearing provided an overview
of the Paycheck Protection Program (PPP) and an update for
Members on the current state of the First and Second Draw
loans, as well as loan forgiveness. Members also heard feedback
on the impact of the five programmatic changes recently
announced and suggestions from stakeholders regarding the
future of the program.
Witnesses on the panel included: Ms. Hilda Kennedy, Founder
& President, AmPac Tri-State CDC, Ontario, CA; Ms. Lisa Bombon,
President & CEO, Unico Communications, Inc., San Antonio, TX;
Ms. Lisa Simpson, Vice President of Firm Services, American
Institute of CPAs, Durham, NC; and Ms. Alice Frazier, President
& CEO, Bank of Charles Town, Charles Town, WV.
In her testimony, Ms. Kennedy discussed some program
changes that would greatly benefit Schedule C filers (sole
proprietors) and allow them more time to complete and submit a
loan application, given the recent changes made to benefit
these applicants. Her testimony also discussed the importance
of the Federal Reserve's PPP Liquidity Facility for helping
CDCs and other CDFIs make more PPP loans. Ms. Bombin's
testimony touched upon the local network of CDFIs, small banks,
SBDCs, and other small business resources she relied on to
navigate the PPP and eventually find a lender who would make a
loan to her microbusiness. Ms. Simpson's testimony identified
some of the ongoing challenges facing the program, including
error codes resulting from front-end anti-fraud checks, and the
needlessly long time it takes to clear loan applications with
holds. Ms. Frazier testified on the approaching March 31
application deadline, and concerns that some loan applications
submitted on time but still in SBA's approval queue may not be
funded before the deadline.
UPDATE ON SBA'S PANDEMIC RESPONSE PROGRAMS
On Tuesday, April 20, 2021, the Committee on Small Business
held a hybrid hearing titled, ``Update on SBA's Pandemic
Response Programs.'' The hearing provided the Committee the
opportunity to hear from the Small Business Administration's
(SBA) Office of Inspector General (OIG) and the Government
Accountability Office (GAO) about the lack of internal controls
and potential for fraud in the Paycheck Protection Program
(PPP) and the Economic Injury Disaster Loan (EIDL) programs.
Witnesses on the panel included: Dr. William Shear, the
Director of Financial Markets and Community Investment for GAO
and Mr. Hannibal ``Mike'' Ware, Inspector General for the SBA.
Dr. Shear discussed how SBA put limited controls in place
in the PPP and EIDL programs, leaving both programs susceptible
to fraud. He also discussed how SBA has begun to take steps to
address the limited controls, including developing a loan
review process, and estimating improper payment rates, develop
and implement an oversight plan. But he did state that SBA has
yet to conduct portfolio-level analysis of the EIDL program,
conduct a formal fraud risk assessment for both PPP and EIDL,
and address the issues identified by SBA's auditor, KPMG. He
did note that SBA has been more responsive to GAO in recent
months and that the agency is providing GAO with data. Mr. Ware
discussed the OIG's recommendations, stated that 23 OIG
recommendations still remained open, but emphasized that the
agency was taking steps to close-out these recommendations and
that 20 of the OIG recommendations had been resolved. He also
discussed the actions of the OIG to increase staffing and
facilitate recovery of fraudulent PPP and EIDL loans.
HARNESSING THE POWER OF IMMIGRANT-OWNED BUSINESSES TO BUILD BACK BETTER
On Wednesday, April 28, 2021, the Committee on Small
Business held a remote hearing titled, ``Harnessing the Power
of Immigrant-owned Businesses to Build Back Better.'' The
hearing provided Members the opportunity to hear from experts,
SBA Resource Partners, and small business owners about the
vital role of immigrant-owned businesses in building a
recovery, as well as the challenges they face.
Witnesses on the panel included: Mr. David Dyssegaard
Kallick, Deputy Director & Director of Immigration Research,
Fiscal Policy Institute, New York City, New York; Mr. Daniel
Fitzgerald, Associate Regional Director, San Diego & Imperial
Small Business Development Center Network, San Diego, CA; Ms.
Jaja Chen, Co-Owner and Chief of Strategic Initiatives and
Business Partnerships, Waco Cha, Waco, TX, and Mr. Jose Ponce,
President, RE/MAX Gold, Fenton, MO.
Mr. Kallick testified about immigrants and their
disproportionate role in launching Main Street businesses, like
grocery stores, gas stations, and restaurants, and the need for
those businesses to generate economic growth in local areas.
Mr. Fitzgerald testified about the role his SBDC plays in a
heavily immigrant community, providing multi-lingual services
to help new arrivals start companies and build wealth. Ms. Chen
testified about the strength immigrant-owned businesses bring
to their communities through cultural diversity as well as the
challenges she faces as an Asian-American business owner during
times of increased hate crimes against the Asian American
Pacific Islander communities. Mr. Ponce stressed the importance
of Hispanic-owned businesses in the American economy as well as
the need for continued investments in largely Hispanic
communities to help Hispanic families build wealth and
financial literacy.
OVERVIEW OF THE SMALL BUSINESS INNOVATION RESEARCH AND SMALL BUSINESS
TECHNOLOGY TRANSFER PROGRAMS
On Thursday, May 13, 2021, the Committee on Small Business
held a hybrid hearing titled, ``Overview of the Small Business
Innovation Research and Small Business Technology Transfer
Programs.'' The hearing allowed Members to assess the state of
the small business economy after nearly a year into the global
COVID-19 pandemic. The hearing introduced Members to the Small
Business Innovation Research (SBIR) and Small Business
Technology Transfer (STTR) Programs, known as ``America's Seed
Fund,'' and their impact on pioneering small business.
Witnesses on the panel included: Dr. Joyce Tung, Vice
President of Research, 23andMe, Inc, Sunnyvale, CA; Ms. Pat
Keady, Co-founder, CEO and President, Aerosol Devices Inc.,
Fort Collins, CO; Ms. Rebecca Todd, Innovation Consultant,
Arkansas Small Business and Technology Development Center,
Little Rock, AK; and Mr. Jere Glover, Executive Director, Small
Business Technology Council, Washington, DC.
In her testimony, Dr. Tung testified about how SBIR helped
launch 23andMe's technologies now sold worldwide. Ms. Keady
presented Aerosol Devices' experience as a current SBIR and
STTR participant on the cusp of the private investment stage.
In her testimony, Ms. Todd demonstrated the role of technical
and business assistance providers, specifically in the Federal
and State Technology (FAST) Partnership (FAST) program. Mr.
Glover testified to the great success the SBIR/STTR program and
its evolution over the past 30 years.
AN EXAMINATION OF THE SBA'S COVID-19 PROGRAMS
On Wednesday, May 26, 2021, the Committee on Small Business
held a remote hearing titled, ``An Examination of the SBA's
COVID-19 Programs.''
The sole witness included: The Honorable Isabella Casillas
Guzman, the Administrator of the Small Business Administration
(SBA).
Administrator Guzman discussed her first 100 days in
office, detailing the round-the-clock work at the agency to
deliver relief to small businesses to get through the pandemic.
She reported that the agency is seeing the impact, with jobs
rebounding, proprietors' income increasing, and small
businesses building back to pre-pandemic levels. The
Administration updated the Committee Members on the launch of
two new grants programs--the Restaurant Revitalization Fund
(RRF) and the Shuttered Venues Operating Grant (SVOG). With
regard to RRF, Administrator Guzman discussed SBA outreach,
available language services, and program set asides, reporting
that SBA received more than 362,000 applications, totaling $75
billion. With regard to the SVOG, she discussed the number of
applications and total funding requests. Administrator Guzman
also provided updates on the Paycheck Protection Program (PPP),
Economic Injury Disaster Loan Program (EIDL), the Targeted
Advance and the Supplemental Targeted Advance, as well as the
Debt Relief Program and the launch of the Community Navigator
Pilot Program, which will help build bridges to small
businesses owned by women, veterans, and socially and
economically disadvantaged individuals. In sum, Administrator
Guzman is working to use every tool at her disposal to bring
businesses back, create jobs, and build and equitable recovery
that will work for everyone.
MEMBER DAY HEARING
On Tuesday, June 29, 2021, the Committee on Small Business
held a hybrid hearing titled, ``Committee on Small Business:
2021 Member Day Hearing.'' Participating Members testified
before the Committee about their legislative interests and
priorities as they relate to policies under the Committee's
legislative jurisdiction. House rule X, Clause 1(q) defines the
legislative jurisdiction of the Committee.
Witnesses on the panel included: the Honorable Earl
Blumenauer, Member of Congress serving Oregon's 3rd District;
and the Honorable Ed Case, Member of Congress representing
Hawaii's 1st District.
Representative Blumenauer testified before the Committee
encouraging the urgent need to replenish the Restaurant
Revitalization Fund (RRF). As the primary sponsor of the RRF,
Representative Blumenauer discussed the economic impact
restaurants have in local communities, stated that they are one
of the hardest-hit small businesses of any sector. Case
testified on behalf of the continued impacts of COVID-19 on
Hawaii's small businesses, and the need to ensure small
businesses are fully included in the national recovery. Due to
Hawaii's economic reliance on the hospitality industry,
Representative Case argued in favor of the RRF and SVOG. More
specifically, he highlighted the need for meaningful and
enforceable set-asides for small business contractors.
STRENGTHENING THE CYBERSECURITY POSTURE OF AMERICA'S SMALL BUSINESS
COMMUNITY
On Tuesday, July 20, 2021, the Committee on Small Business
met for a hybrid hearing titled, ``Strengthening the
Cybersecurity Posture of America's Small Business Community.''
Small businesses are highly vulnerable to cybersecurity threats
as employers, suppliers, and consumers in a modern digital
economy. Many cannot afford dedicated Information Technology
(IT) staff to navigate and mitigate risks and are wary of
investments in pricey software. This hearing provided Members
the opportunity to examine the many cybersecurity threats
facing small businesses and identify available resources.
Witnesses on the panel included: Ms. Tasha Cornish,
Executive Director, Cybersecurity Association of Maryland,
Baltimore, MD; Ms. Sharon Nichols, State Director, Mississippi
SBDC, University, MS; Ms. Kiersten Todt, Managing Director,
Cyber Readiness Institute, New York, NY; and Mr. Graham
Dufault, Senior Director for Public Policy, ACT, The App
Association, Arlington, VA.
In her testimony, Ms. Cornish explained how her
organization represents, supports, and advocates for Maryland's
cybersecurity industry. Ms. Nichols demonstrated the current
and potential role of SBA Resource Partners, specifically
SBDCs, in helping small businesses navigate constantly changing
cybersecurity risks and responsibilities. Ms. Todt explained
small business cyber vulnerabilities and their role in securing
supply chains. Mr. Dufault emphasized the need for
Congressional action, including the recently introduced H.R.
4515, the Small Business Development Center Cyber Training Act,
and other legislation that facilitates greater info sharing
between the federal and private sector.
WHAT COMES NEXT? PPP FORGIVENESS
On Wednesday, September 1, 2021, the Committee on Small
Business held a remote hearing titled, ``What Comes Next? PPP
Forgiveness.'' The hearing updated Members on the loan
forgiveness phase of the Small Business Administration's (SBA)
Paycheck Protection Program (PPP), and provided information
about legislative and administrative efforts to continue
streamlining the forgiveness process for borrowers and lenders.
Witnesses on the panel included: Tracy C. Ward, Director of
the SBA 504 Loan program, Self-Help Ventures Fund, Durham, NC;
Ms. Leslie Payne, Assistant Vice President of Commercial
Lending, Affinity Federal Credit Union, Basking Ridge, NJ; Ms.
Marla Bilonick, President and CEO, National Association for
Latino Community Asset Builders, Washington, DC; and Mr. Robert
Fisher, President and CEO, Tioga State Bank, Chairman,
Independent Community Bankers of America, Spencer, NY.
In her testimony, Ms. Ward discussed the impact broad,
accessible loan forgiveness would have for the smallest of
small businesses, especially those owned by women and
minorities. She also testified that SBA should rescind
Procedural Notice 5000-20078, which makes ``excess loan amount
errors'' (a borrower or lender good faith mistake in
calculating loan amount) ineligible for loan forgiveness. Ms.
Payne's testimony presented the view from a lender who opted-in
to SBA's Direct Forgiveness Portal despite having already
developed its own. Specifically, she testified her credit union
chose to opt-in to the direct portal because they wanted to
maximize forgiveness options for their members. Ms. Bilonick
testified some Community Development Financial Institutions
(CDFIs) in her association are directing clients almost
exclusively to SBA's Direct Forgiveness Portal, and that some
large CDFIs (including one with almost half a million PPP loans
in the portfolio) are finding it challenging to follow up
directly with each individual borrower. She also recommended
SBA make excess loan amount errors forgivable. Mr. Fisher's
testimony encouraged SBA to respect lenders' choice to not use
the direct portal and keep the direct portal an opt-in program.
NATIONAL SMALL BUSINESS WEEK: CELEBRATING OUR MAIN STREET CHAMPIONS
On Tuesday, September 14, 2021, the Committee on Small
Business held a remote hearing titled, ``National Small
Business Week: Celebrating our Main Street Champions.'' The
hearing provided Members an opportunity to hear from small
businesses in their districts on the issues facing them
throughout the pandemic and the resilience they displayed in
the face of adversity.
Witnesses on panel one included: Mr. Tod Greenfield, Vice
President, Greenfield Clothing, Brooklyn, NY; Ms. Jan Haviland,
Owner and President, Haviland Corp. Linn, MO; Ms. Shelonda
Stokes, President, Downtown Partnership of Baltimore,
Baltimore, MD; Ms. Natasha Hudson, Owner, Hudson's on Mercer,
Dripping Springs, TX; Ms. Gena Felder, Chief Financial Officer,
TJ Hale, Menomonee Falls, WI.
Witnesses on panel two included: Mr. Eric Childs, Owner,
Mind's Eye Comics, Burnsville, MN; Ms. Krystal Hernandez,
Owner, La Plaza F!esta, Madelia, MN; Mr. Maurice Contreras,
President, Volcanica Coffee Company, Suwanee, GA; Mr. Mark J.
Lunde, CEO, Lunde Auto Sales, Wadena, MN; and Mr. Barry
Schlouch, President, Schlouch Incorporated, Blandon, PA.
Witnesses on panel three included: Mr. Jaime Di Paulo,
President and CEO, Illinois Hispanic Chamber of Commerce,
Chicago, IL; Ms. Susan Shaw, Owner, Shaw Insurance Agency,
Hurst, TX; Mr. Donald Fox, President and Chief Executive
Officer, Fox Theatres LLC, Wyomissing, PA; Mr. Mitch Cook, Co-
Owner, Avalon Bagels to Burgers, Yorba Linda, CA; and Mr. Greg
Owens, Chief Executive Officer, Sherrill Manufacturing Inc.,
Sherrill, NY.
Mr. Greenfield testified on the history of his clothing
company, his ability to adapt by manufacturing PPE during the
early days of the pandemic, and the way pandemic relief
programs like the Paycheck Protection Program (PPP), the
Economic Injury Disaster Loan (EIDL) program, and the Employee
Retention Tax Credit (ERTC) kept his business alive. Ms.
Haviland testified about the history of her company, her
experience with pandemic relief programs like PPP, and the cost
increases from suppliers. Ms. Stokes shared her experience as
President of the Downtown Partnership during the COVID-19
pandemic and the importance of being intentional about
inclusive economic growth and the creation of a new program
called BOOST, which stands for Black-Owned and Operated
Storefront Tenancy, that helped to fill storefronts that were
emptied by the pandemic. Ms. Hudson told the story about how a
music venue and bar was able to adapt during the pandemic and
continue to serve its community. Ms. Felder detailed her story
as CFO of TJ Hale during the pandemic and the problems they
experienced working with pandemic relief programs.
Mr. Childs testified about acquiring his favorite comic
bookstore, his passion for early childhood literacy and
educating children about real life superheroes in black
history, and the impact educators can have on those children.
Ms. Hernandez testified about the challenges her Mexican
restaurant has faced not only through the pandemic, but
previously when a fire devastated her business. Mr. Contreras
shared the story of the origin of his coffee business 17 years
ago, his dedication to high quality coffee produced with low-
emissions, and the donations of his sales to charity. Mr. Lunde
testified about troubles in the economy that impact his
business, such as the need to pay workers a living wage, the
lack of affordable childcare, and the lack of available workers
due to unemployment insurance. Mr. Schlouch testified about his
meticulous safety plans to protect his workers from COVID-19 in
his aim to get to zero COVID in his construction sites.
Mr. Di Paulo shared his dedication to helping Latino
companies grow through his role as president and CEO of the
Illinois Hispanic Chamber of Commerce. Ms. Shaw testified about
her company's ability to stay open during the pandemic and
creating an environment safe enough for people to come into
work every single day. Mr. Fox shared his efforts to create
such a great movie theater experience for his customers that he
can compete with much larger national chains and the way PPP,
EIDL, and ERTC helped him keep his doors open when people were
unable to go to movie theaters. Mr. Cook shared the story of
his company, Avalon Bagels to Burgers, and the way PPP allowed
them to stay open during the pandemic and overcome supply chain
issues. Mr. Owens shared the story of his manufacturing company
throughout the pandemic and emphasized that the U.S. needs to
take action against the unfair trade practices employed by
China.
EMPOWERING EMPLOYEE-OWNED BUSINESSES AND COOPERATIVES THROUGH ACCESS TO
CAPITAL
On Thursday, September 30, 2021, the Committee on Small
Business held a hybrid hearing titled, ``Empowering Employee-
Owned Businesses and Cooperatives Through Access to Capital.''
The hearing educated Members on the challenges faced by
employee-owned businesses in the post-COVID-19 economy,
focusing on access to affordable capital. The hearing provided
an update on the Small Business Administration's (SBA)
implementation of the Main Street Employee Ownership Act of
2018, which contained a series of reforms to SBA's 7(a) loan
guarantee program intended to improve access for employee-owned
firms.
Witnesses on the panel included: Mr. R.L. Condra, Senior
Vice President, National Cooperative Bank, Arlington, VA; Ms.
Tatia Cooper, President, Home Care Associates, Philadelphia,
PA; Mr. Gary Sherman, Chairman and Chief Development Officer,
Eagle Communications, Hays, KS; and Ms. Alice Frazier,
President and Chief Executive Officer, Bank of Charles Town,
Charles Town, WV.
In his testimony, Mr. Condra discussed the continued
inability of cooperatively owned businesses to meet SBA's
requirement of a personal or entity guarantee of any 20 percent
owner of a co-op to access a 7(a) loan, despite the Main Street
Employee Ownership Act's rule that SBA provide practical
alternatives for co-ops to secure a 7(a) loan. He also
testified in support of a cooperative lending pilot program at
SBA that waives personal or entity guarantees. Ms. Cooper
testified on the power of the worker ownership model and the
culture of pride it creates among worker-owners. She also
testified that access to a 7(a) loan would help her co-op
obtain affordable capital at a time when demand for services
outpaces supply. Moreover, it would help her co-op remain self-
sufficient, expand scope of service, and improve wages and
other benefits. Mr. Shorman testified regarding the challenges
businesses with Employee Stock Ownership Plans (ESOPs) face in
transitioning to employee ownership, including restricted
access to the 7(a) loan program. He urged SBA permit lenders in
the Preferred Lending Program to make 7(a) loans to ESOPs under
their delegated lending authority, as intended by the Main
Street Employee Ownership Act. Ms. Frazier testified
approximately 800 community banks have ESOPs, and that for
those banks, the ESOP structure provides an important source of
capital and liquidity, helps them remain independent, and aids
with succession planning.
SBA'S ENTREPRENEURIAL DEVELOPMENT PROGRAMS
On Wednesday, October 6, 2021, the Committee on Small
Business held a hybrid hearing titled, ``SBA's Entrepreneurial
Development Programs.'' During the hearing, Committee Members
heard from the Small Business Administration's (SBA) Associate
Administrator for the Office of Entrepreneurial Development
(OED).
Witnesses on the panel included: Mr. Mark Madrid, Associate
Administrator, Office of Entrepreneurial Development, Small
Business Administration, Washington D.C.
Mr. Madrid testified about the SBA's entrepreneurial
development counseling, training, and outreach programs
specifically, the Small Business Development Centers, Women's
Business Centers, SCORE, and the Community Navigator Pilot
Program. Mr. Madrid spoke to the importance of these programs
in helping small business owners and entrepreneurs maintain and
grow their businesses, especially throughout the pandemic. Mr.
Madrid also testified about SBA OED's efforts to reach
underserved communities of small business owners and how SBA's
Resource Partners and the Community Navigator Pilot Program are
actively engaged in this outreach. In addition, Mr. Madrid
addressed the oversight concerns of Members and states that OED
is actively working to track and close any SBA Office of
Inspector General (OIG) and Government Accountability Office
(GAO) recommendations. In sum, SBA OED is working diligently to
operate SBA's counseling and training programs efficiently and
effectively.
ENTREPRENEURSHIP IN THE NEW ECONOMY
On Wednesday, November 3, 2021, the Committee on Small
Business held a hybrid hearing titled, ``Entrepreneurship in
the New Economy.'' The hearing allowed Members to examine the
increase in American entrepreneurship and discuss how
businesses are rebuilding from a once-in-a-generation economic
crisis. Members heard from experts alongside small business
owners to describe the changing nature of the economy coming
out of the pandemic.
Witnesses on the panel included: Ms. Ellie Diop, Chief
Executive Officer, Eliza Revella Consulting Services, Los
Angeles, CA; Mr. Andrew Fogaty, Executive Director, 36Squared
Business Incubator, Chicago, IL; Ms. Stephanie E. DeVane, Vice
President of Entrepreneurship & Business Development, National
Urban League, New York, NY; and Mr. Raymond Keating, Chief
Economist, Small Business & Entrepreneurship Council (SBE
Council), Vienna, VA.
In her testimony, Ms. Diop shared her unconventional path
to entrepreneurship after investing her $1,200 federal stimulus
check to start Eliza Revella Consulting Services also known as
Ellie Talks Money. Noticing the digital marketing strategy,
sales, and funding gap that many Black and women-owned small
businesses experienced, Ms. Diop leveraged her corporate skills
to start her online coaching and counseling business targeted
at this clientele. Ms. Diop accredited her company's success to
digital platforms like Instagram, Twitter, Tik Tok, and
YouTube, which provided the space to share content,
information, and products. Mr. Fogaty's testimony covered four
main issues facing American entrepreneurship: access to
capital, reducing the digital divide, manufacturing, and
working with underserved communities. Specifically, he
discussed the importance that access to capital has for an
entrepreneur's success, how supply chain challenges
demonstrated the need to support in domestic manufacturing, and
how the Economic Injury Disaster Loan (EIDL), Paycheck
Protection Program (PPP), and federal stimulus checks have
helped entrepreneurs navigate the pandemic. Ms. DeVane's
testimony presented data on how the COVID-19 pandemic and
resulting economic disruption disproportionately impacted
minority-owned businesses and minority lending. Ms. DeVane
presented policy recommendations on behalf of the National
Urban League which included enhancing outreach campaigns to
make federal programs more accessible; increasing access to
capital; supporting pathways to prime federal contracts;
increasing minority incubator support; and enhancing technical
assistance. Mr. Keating discussed how entrepreneurs are central
to the economic growth as they are job creators and risk
takers. Also, Mr. Keating made comments on immigration noting
that immigrants are not taking American jobs but rather
spurring economic growth. He followed up by stating immigrants
fill workforce vacancies doing jobs that others are unwilling
to do.
A DISCUSSION WITH SBA ADMINISTRATOR ISABELLA CASILLAS GUZMAN
On Tuesday, November 16, 2021, the Committee on Small
Business held a hearing titled, ``A Discussion with SBA
Administrator Isabella Casillas Guzman.'' The hearing was an
opportunity for Members to hear about Administrator Guzman's
vision for the agency as it emerges from the pandemic and
discuss the opportunities and challenges that exist for small
businesses. Members also discussed recent proposals to improve
access to capital for underrepresented entrepreneurs and small-
dollar borrowers, especially in light of Federal Reserve
research showing that only 13 percent of Black-owned businesses
and 20 percent of Hispanic-owned businesses received all the
capital they needed.
The sole witness included: The Honorable Isabella Casillas
Guzman, Administrator, U.S. Small Business Administration,
Washington, D.C.
Administrator Guzman's testimony provided the Committee
with an update on SBA's COVID-19 relief efforts, particularly
with Paycheck Protection Program (PPP) forgiveness. She
testified that more than three out of every four PPP loans have
been forgiven, representing a total of more than $610 billion.
She also testified regarding the effectiveness of SBA's PPP
Direct Forgiveness Portal, through which most forgiveness
applicants have been able to access using a mobile device in a
process that now takes approximately six minutes to complete.
Administrator Guzman also testified that SBA has approved more
than 3.8 million Economic Injury Disaster Loans (EIDL) for a
total of more than $292 billion, plus an additional $26 billion
in COVID-19 EIDL grants. She also testified about the
efficiency improvements SBA has made to the program, including
accelerating the processing rate from 1.86 applications to 20
applications per loan officer per day, and clearing a backlog
of almost 1 million loan increases and grant applications. The
Administrator discussed a policy change, which would restore
the statutory maximum of the $2 million loan size by removing
the $150,000 limit imposed by the previous administration in
2020, and additional changes to provide 24 months of additional
deferment, and allow for more flexibility in the use of funds,
including paying down commercial debt. Administrator Guzman
also testified that SBA's Resource Partners and grantee
networks provided millions of hours of business counseling to
entrepreneurs, supporting close to 1 million jobs and helping
more than 60,000 entrepreneurs launch their businesses
throughout the pandemic.
Second Session of the 117th Congress
REVIEW OF SBA'S TOP MANAGEMENT AND PERFORMANCE CHALLENGES IN FISCAL
YEAR 2022 AND SBA OIG'S SEMIANNUAL REPORT TO CONGRESS
On Wednesday, January 12, 2022, the Committee on Small
Business met for a hybrid hearing titled, ``Review of SBA's Top
Management and Performance Challenges in Fiscal Year 2022 and
SBA OIG's Semiannual Report to Congress.'' Each year, the Small
Business Administration's (SBA) Office of Inspector General
(OIG) releases a report on the most significant management and
performance challenges facing SBA. The goal is to focus
attention on issues to enhance the effectiveness of the agency
and its programs. In addition, every six months OIG submits a
report on its independent oversight of the SBA. The hearing
covered issues related to SBA's management of its programs
related to pandemic relief, contracting and counseling, access
to capital, and disaster assistance, as well as information
technology (IT) controls. In addition, this hearing gave
Members an opportunity to ask questions about the concerns
raised by OIG in these reports, as well as to inquire about the
agency's implementation of OIG's recommendations.
The sole witness included: Mr. Hannibal ``Mike'' Ware,
Inspector General, Office of the Inspector, U.S. Small Business
Administration.
Mr. Ware testified about his office's efforts to address
SBA's pandemic relief efforts. This included issuing 18
reports, and he highlighted the office's investigative work,
which resulted in 366 indictments, 294 arrests, and 142
convictions related to COVID EIDL or PPP. Additionally, the OIG
helped recover and save $4.2 billion in pandemic relief funds
that were connected to fraudulent activity in Fiscal Year 2021.
He also mentioned that his office will be using data analytics,
which includes leveraging artificial intelligence and machine
learning to get in front of fraud and expand the reach of the
office's oversight. He testified that the current leadership at
SBA is taking their recommendations seriously and moving to
quickly resolve them, and he added that this administration is
focused on having an internal control environment to prevent
fraud. Also, he testified that SBA's is more prepared now more
than ever in terms of the control environment that is currently
in place from a risk perspective, and it is stronger now than
it has ever been. Mr. Ware testified that the agency's
information technology system is still not working as promised,
and they are still examining that issue. As to the government
reaching its statutory goal of awarding 23 percent of contracts
to small businesses, Mr. Ware said the agency has been
transparent with its efforts and all government agencies should
be aware of how to calculate its small business contracting
percentage. Finally, Mr. Ware testified about his office's work
with the Pandemic Responsibility Accountability Committee to
help triage hotline call intakes and to document pandemic
relief fraud that is occurring across the government to prevent
the same things from happening the in the future.
THE POWER, PERIL, AND PROMISE OF THE CREATIVE ECONOMY
On Wednesday, January 19, 2022, the Committee on Small
Business held a remote hearing titled, ``The Power, Peril, and
Promise of the Creative Economy.'' Members heard from experts
alongside creative workers demonstrate the power of the
creative economy and its importance to a robust economic
recovery. The hearing provided recommendations for investments
in key infrastructure and provided a roadmap for bringing arts,
culture, and creativity into the center of long-term recovery.
Witnesses on the panel included: Mr. Carson Elrod, Co-
Founder & Co-Leader, Be An #ArtsHero and Director of Government
Affairs, Arts Workers United, Brooklyn, NY; Ms. Nataki Garrett,
Artistic Director, Oregon Shakespeare Festival, Ashland, OR;
Ms. Sandra Karas, Secretary-Treasurer, Actors' Equity
Association, New York, NY; and Ms. Raeanne Presley, Co-Owner,
Presleys' Country Jubilee (Presleys' Theater), Branson, MO.
Mr. Elrod began his testimony by emphasizing the power of
the creative economy comparing creative businesses to stars
that anchor solar systems of interdependent local commercial
businesses. He detailed his personal experience joining the 2.7
million Americans who experienced unemployment during the
pandemic while demonstrating the particular toll lockdowns had
on creative industries and ancillary businesses. Recognizing
government agencies as valuable resources of direct economic
stimulus, Mr. Elrod recommended Congress support an inclusive
relief package that would help bolster the creative economy. As
the Artist Director for the Oregon Shakespeare Festival (OSF)
at the onset of the pandemic, Ms. Garrett laid off 90 percent
of OSF's workforce. Citing the ``Great Resignation,'' workers'
transferable skills, and the barriers of in-person performances
with heightened safety precautions, Ms. Garrett elaborated on
how existing struggles have long threatened the creative
economy. She described the arts as a formative industry that
impact everything from schools, culture, to the economy and
expressed concern that creatives and support staff will not
survive without federal support. Ms. Garrett concluded by
advocating support for bipartisan House bills such as the
Creative Economy Revitalization (CERA) Act, the Performing Arts
Parity Act, and the Arts Education for All Act. Ms. Karas'
overall testimony emphasized support for stronger worker
protections throughout the arts sector. Representing Actors'
Equity Association, she highlighted that without a large union
presence, the gains across the creative economy witnessed
within the last couple of decades will quickly erode.
Furthermore, Ms. Karas discussed how unions can drive economic
growth for businesses and workers in the creative economy. Ms.
Karas suggested Congress pass the Performing Artist Tax Parity
Act or PATPA, to modernize a tax code that punishes arts
workers for seeking work with targeted relief to entertainment
workers. Additionally, she encouraged more critical gains made
during the pandemic should continue by expanding subsidies for
the Affordable Care Act, which was vital for this industry. Ms.
Karas also encouraged those subsidies are renewed, and the
unemployment system undergo serious reform. Ms. Presley echoed
the significance of live music and entertainment in Branson,
Missouri while also highlighting how independent venues are
struggling to survive. Ms. Presley underscored the creative
economy's unique ability to drive tourism and impact local
economies nationally. Yet throughout the pandemic, many live
venues, such as Presleys' Country Jubilee, had low consumer
confidence as venues no-show rate increased to 20-50 percent.
Ms. Presely finished by requesting the House pass the SOS
Extension Act.
COMPETITION AND THE SMALL BUSINESS LANDSCAPE: FAIR COMPETITION AND A
LEVEL PLAYING FIELD
On Tuesday, March 1, 2022, the Committee on Small Business
held a hybrid hearing titled, ``Competition and the Small
Business Landscape: Fair Competition and a Level Playing
Field.'' Committee Members heard from various experts and
academics about competition policy through the lens of American
small firms. This hearing examined the history of antitrust law
and the historical importance of encouraging fair competition,
and their potential impacts on small firms.
Witnesses on the panel included: Dr. Diana L. Moss,
President American Antitrust Institute, Washington, DC; Dr.
Carl Shapiro, Distinguished Professor of the Graduate School at
the University of California at Berkeley University of
California, Berkeley, Berkeley, CA; Mr. Barry Lynn, Executive
Director Open Markets Institute, Washington, DC; and Dr.
Douglas Holtz-Eakin President American Action Forum,
Washington, DC.
In her testimony, Dr. Moss spoke to the impact lax
antitrust enforcement in the U.S. had in contributing to a
decline in small and independent businesses; she encouraged
legislators and policymakers to carefully consider how
antitrust fits within a broader policy framework for promoting
small business and how different policy tools can work in
complementary ways. Dr. Shapiro illustrated the role that
regulatory bodies, courts, and policymakers have in producing
equitable outcomes for consumers via a reexamination of
antitrust legislation. He demonstrated how strong antitrust
policies are the backbone of sustainable and diverse
competition as they regulate large firms' overuse of their
market power. Mr. Lynn highlighted the impact monopolies and
corporate power can have on individual liberty. He further
discussed the necessary presence of a small business-centered
economy upheld through consumer-friendly programs that
prioritize equitable competition. Dr. Holtz-Eakin emphasized
issues facing small businesses, such as inflation and
regulations, and gave his perspective on how to alleviate those
concerns.
OVERVIEW OF THE SMALL BUSINESS INNOVATION RESEARCH AND SMALL BUSINESS
TECHNOLOGY TRANSFER PROGRAMS
On Tuesday, March 8, 2022, the Committee on Small Business
held a hybrid hearing titled, ``Overview of the Small Business
Innovation Research (SBIR) and Small Business Technology
Transfer (STTR) programs.'' This was the third hearing in a
series on the SBIR and STTR programs, which expire September
30, 2022, and need to be reauthorized. The first hearing was
May 13, 2021, and the second hearing was June 23, 2021. These
programs foster partnerships between small businesses and the
federal government by making competitive awards to develop
technologies that are important to our country and later have
commercial application. The Small Business Administration (SBA)
is responsible for coordinating policy across the 11
participating agencies, monitoring implementation of the
programs, maintaining policy directives, and developing annual
reports to Congress. Members had the opportunity to hear
directly from SBA on issues related to the reauthorization of
the programs.
The sole witness included: Mr. John Williams, Director of
Innovation and Technology, Office of Investment and Innovation,
U.S. Small Business Administration, Washington, D.C.
In his testimony, Mr. Williams raised concerns about the
fast-approaching expiration date of the programs and talked
about the consequences if Congress does not act soon.
Specifically, he said, ``agencies may start to delay new
solicitations due to the potential that the SBIR and STTR
program authority will expire. This would create a gap in new
starts that cannot be made up . . . The real burden will fall
heavily on small business innovators, especially new program
entrants.'' He talked about the program's ability to attract
the best and the brightest, including the 2020 Nobel Prize for
Chemistry winner. He highlighted examples of how SBIR and STTR
provide innovative cost-savings in national defense
capabilities and propel health benefits, including 99 drugs
between 1996-2020, of which 16 percent made a ``significant''
advance over other available treatments. During questions from
the members, Mr. Williams explained limited resources for his
office and explained the roll of multiple award winners,
particularly how critical they are to the Department of
Defense's warfighting capabilities.
SMALL BUSINESS ADMINISTRATION'S FY 2023 BUDGET
On Wednesday, April 27, 2022, the Committee on Small
Business held a hybrid hearing titled, ``Small Business
Administration's FY 2023 Budget.'' Committee Members heard from
Administrator Guzman about the priorities for the agency and
discussed specific funding requests for Fiscal Year 2023.
Additionally, the Committee discussed ongoing agency efforts
related to the pandemic programs.
The sole witness was the Honorable Isabella Casillas
Guzman, Administrator, United States Small Business
Administration.
In her testimony, Administrator Guzman discussed how the
Administration's budget proposal, which requests $1.06 billion
in funding for the Small Business Administration, would build
upon the agency's successes and make it easier for all small
businesses to grow. One of the top priorities for the
Administration is to make sure the programs are reaching all
Americans.
Administrator Guzman highlighted important data and
reported that business applications have risen by more than 30
percent from pre-pandemic levels, and in 2021 alone, 5.4
million Americans applied to start a business.
Regarding the COVID relief programs, the Administrator
reported that in Fiscal Year 2021, the SBA distributed more
than $450 billion in financial relief through the Paycheck
Protection Program (PPP), COVID Economic Injury Disaster Loan
and Advance (EIDL) programs, Restaurant Revitalization Fund
(RRF), and Shuttered Venue Operators Grant (SVOG) programs. The
Administrator made programmatic changes that protected the
economic relief programs from fraud, and she announced the
creation of the SBA new Fraud Risk Management Board (FRMB), and
the appointment of a Special Counsel for Enterprise Risk.
The Administration's proposed budget requests the authority
to transfer $320 million in already-appropriated targeted EIDL
advance balances to support the servicing of COVID EIDL and
other COVID-related programs. The Administrator emphasized the
importance of the transfer given SBA will be responsible for
servicing 3.9 million COVID EIDL loans, totaling more than $361
billion.
With regard to the core programs, the Administrator
testified that the capital programs reached record levels in
Fiscal Year 2021--a reflection of the surge in American
entrepreneurship and evidence that demand for SBA capital
support is outpacing available resources. She also discussed
the importance of investments in the innovation programs, as
well as the Entrepreneurial Development programs.
In terms of the contracting programs, the Administrator
testified that the number of small businesses contracting with
the federal government declined by nearly 40 percent over the
past decade. She outlined the investments the agency will make
to reverse the trends and increase opportunities for more small
businesses. The Administrator also reiterated the importance of
the budget request of $20 million to manage the transition of
the Center for Verification and Evaluation, which is
responsible for verifying veteran eligibility for veteran-owned
small businesses and service-disabled small businesses.
SBA MANAGEMENT REVIEW: OFFICE OF CAPITAL ACCESS
On Wednesday, May 18, 2022, the Small Business Committee
held a hearing titled, ``SBA Management Review: Office of
Capital Access.'' The Small Business Administration's (SBA)
Office of Capital Access (OCA) is responsible for managing the
agency's loan programs, which provide guarantees for short- and
long-term loans on reasonable terms for small businesses who
cannot access credit elsewhere. Specifically, OCA administers
SBA's 7(a) Loan Guarantee Program, the 504/Certified
Development Company (504/CDC) Loan Program, the Microloan
Program, and the Surety Bond Program. During the COVID-19
pandemic, OCA also administered the Paycheck Protection Program
(PPP) and COVID-19 Economic Injury Disaster Loan (EIDL)
Program. OCA therefore plays a key role in the nation's
entrepreneurship atmosphere. This hearing presented Members an
opportunity to assess the current Office and program
operations, as well as assess the agency's efforts to increase
access to affordable capital for all and to promote a more
equitable economy. The hearing also provided Members an
opportunity to conduct oversight over the agency's pandemic
relief programs.
The sole witness on the panel included: Mr. Patrick Kelley,
Associate Administrator, Office of Capital Access, U.S. Small
Business Administration, Washington, D.C.
Mr. Kelley's testimony highlighted how SBA's business loan
programs supported almost $45 billion in lending in FY 2021,
supported in large part by temporary program enhancements
enacted by Congress, including debt relief, fee waivers, and
increased guarantee rates. He testified small manufacturers,
which are key to President Biden's goal of addressing supply
chain bottlenecks by increasing domestic production of goods,
benefit uniquely from the 504/CDC Loan Program. To that end,
the House of Representatives passed the 504 Modernization and
Small Manufacturer Enhancement Act of 2021, which increases the
maximum loan size for small manufacturers from $5.5 million to
$6.5 million and adjusts the program's occupancy rules to make
it easier for small businesses to finance the purchase of an
existing multi-story building with a 504 loan. He also
testified regarding the importance of increasing small-dollar
lending in the agency's flagship 7(a) loan Program, and the
extension of the Community Advantage Pilot Loan Program, which
targets small business in underserved markets. He also
testified SBA is working to make the business loan programs
more accessible to employee-owned businesses and those seeking
to transition to employee ownership. Furthermore, Mr. Kelley
also provided an update on PPP forgiveness, testifying that SBA
has processed almost 10 million loan forgiveness decisions,
representing about 88 percent of all PPP loans, totaling $721
billion. He also testified regarding the administration of the
COVID-19 EIDL program, which was in the wind-down phase at the
time of the hearing.
Throughout the hearing, Mr. Kelley responded to questions
regarding SBA's announcement it would no longer accept
applications for COVID EIDL loan modifications,
reconsiderations, or appeals due to the program's funds being
exhausted. This announcement came a day before the date on
which SBA designated as the deadline to submit such
applications. Mr. Kelley testified that by the close of
business on May 6, there were approximately 61,000 loan files
seeking loan modification, reconsideration, or appeal that were
eligible for funding, were approved for funding, and have funds
obligated. He also testified there were approximately 9,000
loan files seeking reconsideration that will not be approved
for reasons related to credit criteria, tax information, and
other issues.
MILITARY TO MAIN STREET: SERVING VETERAN ENTREPRENEURSHIP
On Wednesday, June 8, 2022, the Committee on Small Business
held a hearing hybrid titled, ``Military to Main Street:
Serving Veteran Entrepreneurship.'' Transitioning from military
service to civilian life presents unique challenges for
aspiring veteran entrepreneurs. The hearing provided Members an
opportunity to explore the resources and programs available
through the Small Business Administration (SBA) for veterans
and their spouses, especially the Boots to Business Program,
when transitioning to civilian life. The SBA provides a variety
of counseling, training, and lending options tailored to the
needs of veterans and their families' ensuring veterans and
their spouses and become successful small business owners.
Witnesses on the panel included: Dr. Michael Haynie,
Executive Director of the Syracuse University Institute for
Veterans and Military Families, Syracuse University; Mr.
Brenton Peacock, Director, Florida Veterans Business Outreach
Center at Gulf State College; Ms. Laurie Sayles, President &
Chief Executive Officer, Civility Management Solutions; and Mr.
Joe Shamess, Founder & General Partner, Flintlock Capital.
Dr. Haynie spoke to the entrepreneurial spirit of the
veteran community but stressed that more should be done to help
transitioning veterans access capital, navigate local
resources, and expand support for veteran business resources
and training programs. Dr. Haynie stated that many veterans are
interested in pursuing entrepreneurship but transitioning to
civilian life can present unique challenges. Dr. Haynie also
testified about the increasing diversity of the veteran
population and how this can present additional challenges,
particularly regarding access to capital, for veteran
entrepreneurs. He acknowledged how women and black veterans are
motivated to pursue entrepreneurship to become financially
independent and increase personal income, but their capital
access is significantly more limited than their white male
counterparts.
Mr. Peacock testified about the Florida Veterans Business
Outreach Centers (VBOCs) Boots to Business Program that helps
ensure transitioning veterans and their spouses access the
resources to bring their business from idea to fruition. He
noted that the Florida VBOC has a particular focus in
government contracting with their veterans receiving 322 prime
contracts, with a total value of over $329 million.
Ms. Sayles testified about her experience as the CEO of a
SBA certified 8(a), VA verified Service-Disabled Veteran,
economically disadvantaged woman, and women-owned small
business. She advocated for an increase of incentives for prime
contractors and the Federal Government to award more contracts
to women veteran-owned small businesses.
Mr. Shamess testified that veterans could be better served
by finding to increase coordination between SBA programs to
better benefit veterans. Mr. Shamess testified that creating a
comprehensive list of programs designed to assist aspiring
veteran entrepreneurs and integrating those programs more
thoroughly into the Department of Defense's (DOD) Transition
Assistance Program (TAP) would be beneficial.
ARE GOVERNMENTWIDE CONTRACTS HELPING OR HURTING SMALL CONTRACTORS?
On Tuesday, June 14, 2022, the Committee on Small Business
met for a remote hearing titled, ``Are Governmentwide Contracts
Helping or Hurting Small Contractors?'' The hearing took place
at 10:00 a.m. in Room 2360 of the Rayburn House Office Building
and via the Zoom platform. The hearing examined governmentwide
contracts--particularly those known as Best-In-Class (BIC)
contracts--and assessed their impact on the federal small
business base.
Witnesses on the panel included: Ms. Amber Hart, Co-founder
and Co-owner, The Pulse of GovCon, LLC, Sterling, VA; Mr.
Isaias ``Cy'' Alba IV, Partner, PilieroMazza, PLLC, Washington,
DC; Ms. Lynn Ann Casey, Founder and CEO, Arc Aspicio,
Washington, DC; and Ms. Rebecca Askew, CEO & General Counsel,
Circuit Media LLC, Denver, CO.
In the hearing, witnesses spoke about the Federal
procurement landscape and expounded on the numerous challenges
governmentwide contracts pose for small businesses, something
that the Committee began exploring in a previous hearing. Ms.
Hart, for example, focused on the bundling and consolidation
that is being caused by the Category Management initiative and
its use of BIC contracts. She noted that this is ultimately
reducing channels for acquisition and has significantly shrunk
the number of small businesses providing goods and services for
the government. Additionally, she expressed that one of the
main challenges of current BIC vehicles is that they are
inconsistent among themselves when it comes to factors like
size standard recertifications, bid requirements, experience
qualifications, ramping timelines and procedures, and how set-
asides are tracked. In this respect, she advocated for
standardization to provide certainty and clarity to small
businesses.
Similarly, Ms. Casey and Ms. Askew stated that
governmentwide and BIC contracts require significant resources
in terms of time, money, and human capital to bid on them. They
both also agreed that for those small businesses that do this
investment, any delays from agencies in selecting awardees can
be especially detrimental. Ms. Casey also noted that the move
of contract requirements to BIC contracts often resulted in
contract holders not being able to recompete for work, which
burdens small businesses and agencies alike. Another important
aspect that came out of the hearing was how small businesses
are practically being forced to joint ventures with big
businesses to pursue BIC opportunities, something that as
stated by Ms. Casey, many small businesses do not want to do.
Finally, Mr. Alba in his testimony made a series of
recommendations to ensure governmentwide and BIC contracts
become more accessible to small businesses. These included
having more frequent on ramps, not moving small business
requirements to best-in-class contracts without first
conducting an impact analysis on how the small business base
would be harmed by the move and ensuring that the ``Rule of
Two'' is followed on task orders.
SBA MANAGEMENT REVIEW: OFFICE OF GOVERNMENT CONTRACTING AND BUSINESS
DEVELOPMENT
On Thursday, June 23, 2022, the Committee on Small Business
met for a hybrid hearing titled, ``SBA Management Review:
Office of Government Contracting and Business Development.''
The hearing took place at 10:00 a.m. in Room 2360 of the
Rayburn House Office Building and through Zoom. The hearing
allowed Members to learn more about the Office of Government
Contracting and Business Development (GCBD), which works to
create an environment that fosters maximum participation by
small businesses in the federal procurement space. The purpose
of the hearing was to examine GCBD's administration of the
SBA's business development and contracting programs, progress
towards implementing key legislation, and the ongoing efforts
to address administrative challenges.
The sole witness for the hearing included: Ms. Bibi
Hidalgo, Associate Administrator, Office of Government
Contracting and Business Development, U.S. Small Business
Administration, Washington, D.C.
In her testimony, Ms. Hidalgo highlighted certain changes
that the GCBD Office has been working on in collaboration with
the White House, the Office of Management and Budget and
partner agencies to ensure that socioeconomic firms have a
strong footing on which to compete in the Federal marketplace.
These changes included incorporating all socioeconomic firms
into Tier 2 credit under the Category Management initiative,
tracking all new entrants into the Federal marketplace,
publicly releasing FY20 disaggregated contracting data, adding
small business goals to Senior Executive Service (SES)
performance evaluations, and increasing the contracting goal
for small and disadvantaged firms to 15 percent by 2025, with
an initial goal of 11 percent for this fiscal year.
Additionally, throughout the hearing, Ms. Hidalgo discussed
numerous matters that are of particular interest to Members
such as information technology (IT) improvements. In this
regard, she mentioned that the Office has been working to
modernize their current IT certification systems although they
are also working towards having one IT platform for all of the
certification programs. In terms of the budget, Ms. Hidalgo
specified that the $5 million in additional funding requested
would help fund additional staff, particularly procurement
center representatives and commercial market representatives,
which currently are at historic low levels. Finally, regarding
the 8(a) program, Ms. Hidalgo stated that her office would
welcome legislation extending said program an addition year for
8(a) participants to account for the disruptions caused by the
COVID-19 pandemic.
LEVERAGING THE INFRASTRUCTURE INVESTMENT AND JOBS ACT: THE ROLE OF THE
SBA'S BOND GUARANTEE PROGRAM
On July 27, 2022, the Committee on Small Business met for a
hybrid hearing titled: ``Leveraging the Infrastructure
Investment and Jobs Act: The Role of the SBA's Bond Guarantee
Program.'' The hearing took place at 10:00 a.m. in Room 2360 of
the Rayburn House Office Building and through Zoom. The hearing
examined the SBA's Surety Bond Guarantee Program, which has
been assisting small businesses in obtaining bonds and winning
contracts for more than 50 years. The hearing focused on the
program's operations and explored potential ways to improve it,
considering the heightened role the program will play as part
of rebuilding the nation's infrastructure.
The witnesses for the hearing were: Mr. Peter Gibbs,
President, Foundation Surety & Insurance Solutions, Bowie, MD--
Testifying on behalf of the National Association of Surety Bond
Producers, Mr. Ralph Pulver, Regional Underwriting Officer,
Travelers Bond & Specialty Insurance, Hartford, CT--Testifying
on behalf of the Surety & Fidelity Association of America, Mr.
Alan Gravel, President, Willow Construction, Inc., Powder
Springs, GA; and Mr. Joel Griffith, Research Fellow, The
Heritage Foundation, Washington, DC.
In the hearing, both Mr. Gibbs and Mr. Pulver emphasized
that changes made to the program in recent years have been
successful in enhancing the program and expanding the number of
small firms that can participate in it. For example, they both
agreed that raising the contract guarantee thresholds,
permanently reducing the fees charged from contractors and
increasing the guarantee up to 90 percent for participating
surety companies had been impactful changes. In addition, Mr.
Gibbs provided a series of recommendations to further
streamline and improve the program. Specifically, some of the
reforms suggested are: 1. further increasing the contract
guarantee thresholds from $10 million to $20 million in federal
contracts and on non-Federal contracts from $6.5 million to $10
million; 2. Exploring techniques to manage, mitigate, and
transfer risk which may attract participation from the
reinsurance industry; 3. consider adding other surety products
to the program which may be difficult for small businesses to
obtain in the marketplace and; 4. enhancing resources for the
program in areas such as information technology and marketing
to increase efficiencies and expand program awareness.
In contrast, Mr. Gravel underscored the importance of the
program by relating the story of his company. Mr. Gravel
explained that his company started making use of the Surety
Bond Guarantee Program to access bonds and bid for construction
work following the financial crisis of 2008-2012 which had
ended his company's progress toward financial security. He
recounted that during those dark times, they could have chosen
to declare bankruptcy but instead they decided not to give up.
In his view, had the SBA program not been available, his
company might have eventually recovered, but it would have
taken much longer and it would have been a lot more painful.
Through the program, his company returned to financial health,
providing good incomes to employees, paying taxes, and
completing quality projects for the community and the
environment.
SBA MANAGEMENT REVIEW: OFFICE OF INTERNATIONAL TRADE
On Tuesday, September 20, 2022, the Committee on Small
Business held a hybrid hearing titled, ``SBA Management Review:
Office of International Trade.'' The hearing reviewed the Small
Business Administration's (SBA) Office of International Trade.
The Office of International Trade is responsible for supporting
small business international trade development and works in
cooperation with other federal agencies, public, and private
sector groups to encourage and assist small businesses looking
to export. The hearing gave Members an opportunity to learn
more about the Office's operations as well as its
implementation of its flagship exporting program for small
businesses, the State Trade Expansion Program (STEP).
The sole witness was: Mr. Gabriel Esparza, Associate
Administrator, Office of International Trade, U.S. Small
Business Administration.
Mr. Esparza testified about the importance of STEP for
small businesses and expressed support for H.R. 8844, the
``STEP Improvement Act of 2022.'' Over the past decade, STEP
has helped 12,000 small businesses and generated approximately
$5.5 billion in export sales. In 2022, SBA experienced the
highest demand for STEP in both the number of states/
territories applying and the dollar amount requested. The
Associate Administrator shared anecdotal stories of small
businesses that took advantage of STEP to visit trade shows,
work with wholesalers, and utilize translation services, and
are reaping the benefits with booming sales.
Under his leadership, one of the main priority's will be to
provide adequate education and training to small businesses to
prepare them for the complexities and inner workings of
international trade, supported by partners within SBA, other
federal entities, and public-private partnerships.
Mr. Esparza further testified that the Administrator has
tasked the Office of International Trade with developing more
customer centric approaches to meet small businesses where they
are. To that end, the office has been reorganized around having
a strong marketing function to increase awareness of STEP,
particularly with historically underserved communities, women
small business owners, veteran small business owners, and rural
small business owners. It will continue to work closely with
small businesses that are exporting, as well as, those that
could be potentially importing, as the program has proven to be
a generator of export sales and sustainer of jobs.
In addition, Mr. Esparza testified that because of digital
tools and e-commerce, small businesses can export faster than
ever, and that SBA has a specific focus on new-to-exporting
firms as well as companies that come from traditionally
underserved communities. Finally, Mr. Esparza stated that SBA
is aware of the feedback from the July 19th hearing that some
states are concerned with the administrative requirements of
the STEP grant. Mr. Esparza stated he has spent time with STEP
grants managers and is seeking to strike the right balance
between protecting taxpayer dollars and improving the
efficiency of the program.
PART B
Subcommittee Hearings
First Session of the 117th Congress
PERSPECTIVES FROM MAIN STREET: RAISING THE WAGE
On Wednesday, February 24, 2021, the Subcommittee on
Oversight, Investigations, and Regulations held a hybrid
hearing titled, ``Perspectives from Main Street: Raising the
Wage.'' The hearing provided the Subcommittee the opportunity
to hear from economists and small business owners about the
impact of raising the federal minimum wage to $15 per hour.
Witnesses on the panel included: Dr. Heidi Shierholz,
Senior Economist and Director of Policy at the Economic Policy
Institute, Washington, D.C.; Mr. John Puckett, Owner and CEO of
Punch Pizza, St. Paul, MN; Ms. Rebecca Hamilton, Co-CEO, W.S.
Badger Company, Gilsum, NH; Ms. Rachel Greszler, Research
Fellow in Economics, Budget, and Entitlements, The Heritage
foundation, Washington, D.C.
Dr. Shierholz explained the broader economic effects of
raising the minimum wage and focused on how it would improve
material conditions for low-wage workers, lift nearly a million
people out of poverty, result in lower turnover rates among
small businesses, build a stronger workforce, and help
stimulate struggling communities. Mr. Puckett spoke from his
own experience as a restaurant owner and how keeping his
starting wages for his employees well above the federal and
state minimum wages has given him a competitive advantage for
better workers and helped him craft a more sustainable business
model. Ms. Hamilton also spoke from experience as a small
business owner, a manufacturer from rural New Hampshire, and
how making her minimum wage a living wage gave her a
competitive advantage in recruitment and retention in a state
where the minimum wage is still $7.25, the federal minimum. Ms.
Greszler emphasized the potential costs to raising the minimum
wage, such as decreased employment, possible business closures,
and inflation, especially for childcare costs.
THE ROLE OF COMMUNITY NAVIGATORS IN REACHING UNDERSERVED BUSINESSES
On Thursday, March 18, 2021, the Subcommittee on
Underserved, Agricultural, and Rural Business Development held
a hybrid hearing titled, ``The Role of Community Navigators in
Reaching Underserved Businesses.'' During the hearing,
Committee Members heard from Small Business Administration
(SBA) Resource Partners and stakeholders from state level
community navigator programs.
Witnesses on the panel included: Ms. Rebecca Shi, Executive
Director, American Business Immigration Coalition; Ms. Bridget
Weston, CEO, SCORE; Ms. Pilar Guzman Zavala, CEO, Half Moon
Empanadas; and, Mr. Bruce Strong, State Director, Minnesota
SBDC.
Ms. Shi testified about the mechanics of a state level
community navigator program and how using this approach, her
organization managed to help more underserved businesses in
Illinois, Florida, Texas, and South Carolina. Ms. Guzman Zavala
testified about her experience participating in a community
navigator program in Florida and how the program was essential
to her securing a Paycheck Protection Program (PPP) loan to
help keep her business operational. Ms. Weston and Mr. Strong
testified that the Community Navigator Pilot Program would
complement existing SCORE and Small Business Development Center
(SBDC) diversity initiatives and help SBA's Resource Partners
better reach underserved communities. Ms. Weston and Mr. Strong
also testified about their belief that the Community Navigator
Pilot Program is not duplicative and will enhance SCORE and
SBDC efforts across the country.
THE INTERACTION BETWEEN THE PAYCHECK PROTECTION PROGRAM AND FEDERAL
ACQUISITION RULES: WHAT IT MEANS FOR GOVERNMENT CONTRACTORS
On Tuesday, March 23, 2021, the Subcommittee on Contracting
and Infrastructure met for a remote hearing titled, ``The
Interaction Between the Paycheck Protection Program and Federal
Acquisition Regulations: What it Means for Government
Contractors.'' The hearing examined the extent to which the
Federal Acquisition Regulations Credits Clause interplays with
the Paycheck Protection Program (PPP) and its implications for
federal contractors. The Committee also learned more about how
agencies are handling the matter, available guidance, and
industry concerns.
Witnesses on the panel included: Mr. Greg Bingham, Partner
and Co-lead of the Government Contracts Group, HKA, Washington,
D.C.; Ms. Susan Moser, CPA/CITP, Advisory Services Partner,
Cherry Bekaert, LLP, Tysons, VA; Ms. Robin Greenleaf, PE, CEO &
Founder, Architectural Engineers, Boston, MA, who testified on
behalf of the American Counsel of Engineering Companies (ACEC);
and Mr. Carlos A. Penin, PE, President, CAP Engineering, Coral
Gables, FL.
In his testimony, Mr. Bingham provided an overview of FAR
Part 31 cost principles and the credits clause. Furthermore,
Ms. Moser explained how the forgiveness of a PPP loan could
trigger an allowable cost credit in favor of the Government if
proceeds of the loan were used towards direct or indirect costs
on flexibly priced government contracts and discussed available
guidance from the Department of Defense (DOD) and the Defense
Contract Audit Agency (DCAA) regarding the matter.
On the other hand, Ms. Greenleaf and Mr. Penin discussed
concerns from architectural and engineering (A/E) firms with
draft guidance from the Federal Highway Administration (FHWA)
pertaining treatment of PPP funds and the application of the
FAR credits clause. In particular, they alleged that proposed
guidance from FHWA would require all PPP loan forgiveness
credits to be accounted for as indirect costs, which would in
turn result in a reduction of their indirect cost rates. Thus,
they advocated for a waiver of the FAR credits clause.
During the hearing, Ms. Moser explained how such proposed
guidance from FHWA would be inconsistent with FAR cost
principles. The hearing served as an opportunity for witnesses
to present their recommendations as to how to address
industry's concerns. Ultimately, there was consensus among the
witnesses about the need for FHWA to develop and issue better
guidance- one that is in alignment with a proper application of
the FAR credits clause.
SUPPLY CHAIN RESILIENCY AND THE ROLE OF SMALL MANUFACTURERS
On Thursday, April 29, 2021, the Subcommittee on Economic
Growth, Tax, and Capital Access held a remote hearing titled,
``Supply Chain Resiliency and the Role of Small
Manufacturers.'' The hearing provided an update on the current
state of supply chains for small manufacturers across multiple
sectors. The hearing also provided Members an outlook for the
near future of the manufacturing industry as the economy slowly
begins to recover from the COVID-19 pandemic. Members also
heard about the SBA capital access and investment programs
small manufacturers use to finance their operations.
Witnesses on the panel included: Mr. Claudio Dente,
President, Dentec Safety Specialists, Lenexa, KS; Mr. Wes
Hampp, Co-Founder and Managing Partner, Holleway Capital
Partners, LLC, Overland Park, KS; Ms. Kimberly Glas, President
& CEO, National Council of Textile Organizations, Washington,
DC; and Mr. David Taylor, President & CEO, Pennsylvania
Manufacturers' Association, Harrisburg, PA.
In his testimony, Mr. Dente discussed the challenges his
business faced in needing to rapidly adjust production to meet
demand for masks and respirators. He also highlighted some of
the unique challenges manufacturers face in accessing
affordable long-term capital. Mr. Hampp's testimony touched on
the importance of patient, equity capital as the manufacturing
sector remains in a state of uncertainty, since equity
investors are positioned to provide capital injections as
market conditions dictate. Specifically, Mr. Hampp discussed
the role SBA's capital access and investment programs,
specifically the Small Business Investment Company (SBIC)
Program can play in helping finance the domestic manufacturing
sector. Mr. Hampp also highlighted the role SBA's Paycheck
Protection Program (PPP) played in helping stabilize small
firms at a time when economic uncertainty was at a peak, saying
the program helped many firms, who would have otherwise closed,
stay afloat. Ms. Glas' testimony covered issues faced
specifically by small manufacturers in the textile industry,
including competition from overseas. She also discussed how
SBA's capital access programs, specifically the 7(a) and 504
loan guaranty programs, can supplement trade policy to help
shore up the domestic manufacturing base. Mr. Taylor's
testimony identified the inability to recruit and retain a
skilled workforce as one of the most significant challenges
facing the manufacturing sector currently. He encouraged
Congress to reform the ``highly fragmented'' state-federal
workforce development programs.
GROWING JOBS THROUGH INFRASTRUCTURE INVESTMENT
On Thursday, May 6, 2021, the Subcommittee on Innovation,
Entrepreneurship, and Workforce Development held a remote
hearing titled, ``Growing Jobs through Infrastructure
Investment.'' The hearing provided the Subcommittee the
opportunity to hear from small business owners, union members,
and workforce development experts about the need for workforce
development investment in the American Jobs Plan.
Witnesses on the panel included: Mr. Michael Tamasi,
President and CEO, Accurounds, Avon, MA; Dr. Annette Parker,
President, South Central College, Mankato, MN; Mr. Eddie
Bustamante, Political and Legislative Director, LiUNA Local
720, Denver, CO; Mr. Gus Bruner, President and Project
Executive, Caliagua, Inc., Anaheim, CA.
Mr. Tamasi explained the need for more workforce
development in the manufacturing sector from the perspective of
a small business owner who struggles finding skilled labor, and
as a result invests his time and resources in training and
upskilling workers alongside involvement in state workforce
development programs. Dr. Parker drew from her years of
experience in workforce development to explain the success of
community colleges in partnering with the private sector and
local communities to train a local workforce with in-demand
skills. Mr. Bustamante highlighted the role of labor unions in
training skilled workers through apprenticeships. Mr. Bruner
emphasized the need for federal infrastructure investment and
explained why workforce development efforts would be needed to
help implement the plan.
EXAMINING THE ROLE OF COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS AND
MINORITY DEPOSITORY INSTITUTIONS IN SMALL BUSINESS LENDING
On Tuesday, May 18, 2021, the Subcommittee on Economic
Growth, Tax, and Capital Access held a hybrid hearing titled,
``Examining the Role of Community Development Financial
Institutions and Minority Depository Institutions in Small
Business Lending.'' The hearing introduced Members to Community
Development Financial Institutions (CDFIs) and Minority
Depository Institutions (MDIs), and discussed the impact these
institutions make in their communities, especially with respect
to supporting local entrepreneurs. Members also learned about
the SBA and non-SBA programs intended to support CDFIs and
MDIs.
Witnesses on the panel included: Ms. Aissatou Barry-Fall,
President and CEO, Lower East Side People's Federal Credit
Union, New York, NY; Mr. Everett Sands, Founder and CEO,
Lendistry, Brea, CA; Mr. Robert James II, President, Carver
CDE, Chairman, National Bankers Association, Savannah, GA; and
Mr. Walter L. Davis, Founder, Peachtree Providence Partners
Holding Company, Charlotte, NC.
In her testimony, Ms. Barry-Fall discussed the challenges
her small CDFI credit union faced in needing to rapidly respond
to meet demand for PPP loans, especially during the second
round of funding once the credit union was able to get on the
SBA platform. She also highlighted the unique challenges small
CDFIs faced in maximizing their PPP lending, since many small
lenders did not have sufficient deposits to meet demand for
PPP. Mr. Sands' testimony touched on the role technology can
play in helping promote a more fair and transparent small
business lending market. Mr. Sands also discussed the role
SBA's Community Advantage Program can play in helping CDFIs and
other mission-based lenders finance small businesses who
struggle to access capital from banks. Mr. James' testimony
covered issues directly impacting the nation's MDIs, including
the lack of an office at SBA dedicated to preserving MDIs and
promoting their participation in SBA's programs. He also
discussed how Treasury's Emergency Capital Investment Program
will improve access to capital for MDIs, improving their
ability to make small-dollar loans. Mr. Davis' testimony urged
Congress to consider allowing CDFIs to qualify to receive
equity investments as Opportunity Zone businesses, which would
arguably allow for more capital to flow to minority-owned
businesses.
THE SMALL BUSINESS ADMINISTRATION'S ENTREPRENEURIAL ECOSYSTEM: AN
UPDATE AND NEXT STEPS WITH SBA'S RESOURCE PARTNERS
On Wednesday, May 19, 2021, the Subcommittee on Innovation,
Entrepreneurship, and Workforce Development held a hybrid
hearing titled, ``The Small Business Administration's
Entrepreneurial Ecosystem: An Update and Next Steps with SBA's
Resource Partners.'' During the hearing, Committee Members
heard from Small Business Administration (SBA) Resource
Partners and a Small Business Development Center (SBDC) client.
Witnesses on the panel included: Mr. Tee Rowe, President
and CEO, America's SBDC; Ms. Bridget Weston, CEO, SCORE; Ms.
Corinne Hodges, CEO, Association of Women's Business (AWBC);
and Mr. Patrick Montgomery, Founder/CEO, Kansas City Cattle
Company, Kansas City, Missouri.
Mr. Rowe testified about SBDCs work with small business
owners across the country, and how requests for SBDC services
have risen during the pandemic. Mr. Rowe also testified on
SBDCs efforts moving forward including SBDC cybersecurity
services, increasing outreach to underserved communities, and
importance of the reauthorization of SBA's entrepreneurial
development programs. Mr. Weston testified about SCORE's
network of volunteer mentors, the program's accomplishments in
closing all the SBA Office of Inspector General's (OIG)
recommendations, and SCORE's plan to use additional funding to
expand their outreach and services. Ms. Hodges spoke about how
the Women's Business Center (WBC) serves underserved women-
owned small businesses and women entrepreneurs, the work they
did throughout the expansion, and how the program can be
improved through reauthorization. Mr. Montgomery testified
about how his local SBDC helped him troubleshoot and grow his
business and how vital the Resource Partner network, and the
services they provide, are to small business owners and
entrepreneurs.
A REVIEW OF THE SBA'S GRANT PROGRAMS
On Thursday, May 27, 2021, the Subcommittee on Oversight,
Investigations, and Regulations held a remote hearing titled,
``Road to Recovery: The Impact of SBA Pandemic Grant
Programs.'' The hearing gave Members an opportunity to hear
from small business owners and advocates about the
implementation and effectiveness of the SBA's pandemic related
grant programs, the Shuttered Venue Operators Grant (SVOG) and
the Restaurant Revitalization Fund (RRF).
Witnesses on the panel included: Ms. Cheetie Kumar, Chef
and Owner of Garland Restaurant, Raleigh, NC; Ms. Esther Baruh,
Director of Government Relations, National Association of
Theatre Owners, Washington, DC; Mr. Chris Montana, Owner and
CEO of Du Nord Craft Spirits, Minneapolis, MN; and Mr. Mark
Maguire, Owner of Maguire's Kitchen & Catering, Dallas, TX.
Overall, witnesses discussed the impact of the COVID-19
pandemic on restaurants and live venue and theater industry.
The small businesses in these sectors have faced unprecedented
declines in business, as they were forced to shut down for much
of 2020. Restaurants faced dramatic decreases in sales, while
venues and theaters were mostly shuttered. Throughout the
COVID-19 pandemic Congress has made improvements to the SBA's
economic relief programs, created new support programs, and
provided in influx of loans and grants to help small businesses
across the country. The task of implementing the legislation
and new SBA grant programs like SVOG and RRF has expanded the
role of SBA.
At the hearing Ms. Kumar discussed the importance of the
RRF to her business, and the challenges her restaurant faced
during the pandemic. She also discussed the impact of COVID-19
on the restaurant industry and outlined that many people left
this sector for better and more stable employment. Ms. Baruh
discussed the enormous challenges facing the theater industry,
the need for relief, and some of the challenges with the SVOG.
She discussed that while SBA has been engaged and responsive to
stakeholders, the task of setting up and administering a new
grant program has proved to be a difficult task for SBA leaving
many businesses struggling to hang on. However, at the time of
the hearing SVOG funding was just starting to be released. Mr.
Montana discussed the importance of SBA's RRF to minority owned
businesses and outlined that challenge that his business faced
in access SBA's initial relief through PPP. He also talked
about the importance of federal relief in keeping his business
going. Mr. Maguire also discussed the RRF, and the importance
of both prioritizing awards as well as the need for more
funding in the program. He also talked about the challenges of
bringing employees back to the food industry. Each of the
witnesses talked about the importance of SBA relief programs,
and the need for additional engagement from Congress and the
SBA as sectors continue to struggle with the economic downturn
brought on by COVID-19.
UTILIZATION OF SMALL CONTRACTORS IN THE INFRASTRUCTURE PLAN
On Thursday, June 10, 2021, the Subcommittee on Contracting
and Infrastructure met for a hybrid hearing titled,
``Utilization of Small Contractors in the Infrastructure
Plan.'' It focused on the importance of infrastructure
investment and the contracting opportunities for small
businesses, who will play a central role in upgrading the
nation's infrastructure. The hearing provided Committee Members
the opportunity to learn more where contractual opportunities
lie as well as the resources small businesses need to undertake
infrastructure projects.
Witnesses on the panel included: Ms. Sheila Ohrenberg,
National President, Women Construction Owners and Executives
(WCOE) and President, Sorella Group, Kansas City, KS; Mr. Ralph
Thomas III, National Director Emeritus, National Association of
Minority Contractors (NAMC) and Attorney, Law Offices of Ralph
C. Thomas III PLLC, Washington, DC; Mr. Josh Bone, Executive
Director, ELECTRI International, Washington, DC, who testified
on behalf of the National Electrical Contractors Association
(NECA); and Ms. Annie Mecias-Murphy, Treasurer and Board
Member, Associated Builders and Contractors (ABC), Florida
First Coast Chapter, and Co-Owner & President, JA&M Developing
Corp., Pembroke Pines, FL.
In general, witnesses highlighted the need for a robust
infrastructure plan that would result in additional contracting
opportunities for small businesses, especially in the aftermath
of the COVID-19 pandemic. Specifically, Ms. Ohrenberg
underscored the need to couple this investment with more
accountability with respect to the Women-Owned Small Business
Goals, increasing transparency of the Small Business
Procurement Scorecard and excepting the Miller thresholds for
periodic adjustments for inflation. Similarly, Mr. Bone
highlighted the importance of enforcing prompt payment
provisions. He also talked about his organization's efforts
toward building a more skilled workforce given that training is
an essential component of any infrastructure investment. In
turn, Mr. Thomas' testimony focused on what this infusion of
capital would mean for all those underrepresented small
businesses across the country that participate in the
Department of Transportation's Disadvantaged Business
Enterprise (DBE) Program and ensuring the DBE 10 percent goal
is met or surpassed. Finally, Ms. Mecias-Murphy provided her
perspective as a small business owner, including her support
for increasing the sole-source thresholds in the various SBA
contracting programs.
REVERSING THE DECLINE IN WOMEN ENTREPRENEURSHIP: OPPORTUNITIES FOR
REBUILDING THE ECONOMY
On Tuesday, June 15, 2021, the Subcommittee on Economic
Growth, Tax, and Capital Access met for a hybrid hearing
titled, ``Reversing the Decline in Women Entrepreneurship:
Opportunities for Rebuilding the Economy.'' This hearing gave
Members an opportunity to hear about how the pandemic has
exacerbated perpetual challenges facing women entrepreneurs and
how many women responded with innovative solutions.
Witnesses on the panel included: Ms. Sherry Turner,
Executive Director, Kansas City Women's Business Center,
Fairway, KS; Ms. Tammy Williams, Founder and CEO,
Envision2bWell, Inc., West Chester, PA; Ms. Ayris Scales, CEO,
Walker's Legacy Foundation, Washington, DC; and Ms. Natalie
Buford-Young, CEO, Springboard Enterprises, Vienna, VA.
Overall, the hearing discussed how women-owned small
businesses have been severely impacted by the coronavirus
pandemic with many reporting a decline in sales and fear of
permanent closure. Witnesses discussed how women
entrepreneurship can become an economic engine of growth, and
how Congress will need to consider ways to support women
entrepreneurs, workers, and small business owners. Ms. Turner
discussed the important role that WBCs play in supporting women
entrepreneurs and small businesses, and the increased role of
WBCs during the pandemic in providing education and technical
assistance. Ms. Williams discussed her role as a tech
entrepreneur, and the challenges she has faced in accessing
capital and vital mentorship as she grows her business. Ms.
Scales outlined the specific challenges facing women-
entrepreneurs of color, and the vital role that
entrepreneurship can play in supporting economic growth and
prosperity. Ms. Buford-Young talked about access to capital,
and the challenges that women face in accessing venture
capital. Each of the witnesses talked about the importance of
SBA relief programs, and the need for additional engagement
from Congress and the SBA in bolstering women entrepreneurship
in help overcome the economic downturn brought on by COVID-19.
SUPPORTING SMALL ENTITIES THROUGH INVESTMENTS IN THE NATIONAL
INFRASTRUCTURE: BROADBAND
On Wednesday, June 16, 2021, the Subcommittee on
Underserved, Agricultural, and Rural Development met for a
hybrid hearing titled, ``Supporting Small Entities through
Investments in the National Infrastructure: Broadband.'' At
this hearing, Members examined broadband as a critical part of
the nation's infrastructure and strategies to reduce the
digital divide, including how the American Jobs Plan allocates
$100 billion to reach full broadband coverage.
Witnesses on the panel included: Ms. Peggy Schaffer,
Executive Director, ConnectMaine Authority, Augusta, ME; Mr.
Dan Sullivan, President, Downeast Broadband Utility, Calais,
ME; Mr. Matt Dunne, Founder and Executive Director, Center on
Rural Innovation, Hartland, VT; and Mr. Tim Waibel, President,
Minnesota Corn Growers Association, Burnsville, MN.
In her testimony, Ms. Schaffer explained Maine's broadband
strategies, the impact of federal funding programs, and the
role of local governments. Mr. Sullivan presented the benefits
of municipally owned broadband infrastructure. Mr. Dunne
explained the necessity of broadband for revitalizing rural
communities and expanding economic opportunities. Mr. Waibel
emphasized modern farmers' need for reliable and affordable
internet access to fully utilize technologies.
PRIORITIZING SMALL UNDERSERVED AND RURAL BUSINESSES IN THE SBIR/STTR
PROGRAMS
On Thursday, June 23, 2021, the Subcommittee on
Underserved, Agricultural, and Rural Development held a hybrid
hearing titled, ``Prioritizing Small Underserved and Rural
Businesses in the SBIR/STTR Programs.'' The hearing was
scheduled to begin at 2:00 P.M. but was delayed by votes; it
took place both in the hearing room and on Zoom. This was the
second hearing in a series on the Small Business Innovation
Research (SBIR) and Small Business Technology Transfer (STTR)
programs, which is authorized through September 30, 2022. The
SBIR and STTR programs share four goals, one is to foster
inclusion and diversification among innovative firms. At this
hearing, Members examined agency strategies and measured
progress made towards the diversification goal.
Witnesses on the panel included: Dr. Joshua A. Henry,
President and Founder, GO Lab, Inc., Belfast, ME; Ms. Nancy
Min, Founder, ecoLong, Buffalo, NY, she testified on behalf of
the Clean Energy Business Network; Dr. Angelique Johnson,
Founder & Chief Executive Officer, MEMStim LLC, Louisville, KY;
and Dr. David Green, Chief Executive Officer, Physical Sciences
Inc., Andover, MA.
In his testimony, Dr. Henry emphasized the need for SBIR/
STTR, but called for improvements to the program's challenging
application and burdensome requirements. Ms. Min reflected on
the importance of support programs for SBIR/STTR participants
with limited internal resources. Dr. Johnson outlined specific
program reforms that would increase diversity among SBIR/STTR
awardees. As an awardee of 1,413 SBIR/STTR projects, Dr. Green
presented his business' strategies for success.
CMMC IMPLEMENTATION: WHAT IT MEANS FOR SMALL BUSINESSES
On Thursday, June 24, 2021, the Subcommittee on Oversight,
Investigations, and Regulations met for a hybrid hearing
titled, ``CMMC Implementation: What It Means for Small
Businesses.'' It centered on the Cybersecurity Maturity Model
Certification (CMMC) framework, which is the Department of
Defense's latest initiative to increase cybersecurity
preparedness across the defense industrial base. The hearing
provided Members with the opportunity to learn more about this
initiative, how it is being implemented and the compliance
challenges it poses for small businesses.
Witnesses on the panel included: Mr. Jonathan T. Williams,
Partner, PilieroMazza PLLC, Washington, DC; Mr. Scott Singer,
President, CyberNINES, Madison, WI; Ms. Tina Wilson, Chief
Executive Officer, T47 International, Inc., Upper Marlboro, MD;
and Mr. Michael Dunbar, President, Ryzhka International LLC.,
Pompano Beach, FL, who testified on behalf of the HUBZone
Contractors National Council.
The hearing shed light onto the many difficulties the CMMC
initiative entails for small businesses, including the
complexity of the regulations, duplication between these cyber
regulations and existing ones, unclear implementation
timelines, potential bottlenecks in obtaining certification,
concerns as to potential fraudulent actors taking advantage of
small business and lack of clear guidance in terms of the CMMC
level that will be required from subcontractors. All four
witnesses presented their recommendations how to tackle these
challenges. For example: Mr. Williams highlighted that the SBA
and DOD mentor-protege programs could be utilized to ensure
that mentors provided small businesses with the resources and
guidance needed to obtain CMMC certification. He also advocated
for not requiring CMMC certification from joint ventures if
member companies to the joint venture were certified.
All 4 witnesses agreed that the most significant concern is
the costs associated with the initiative, which have not yet
been clearly defined by DOD. In this respect, Mr. Dunbar
advocated for more cost transparency and building guardrails
for rising compliance costs while Ms. Wilson expressed the need
for a balanced cost approach to guarantee small businesses will
be able to remain in the defense industrial base. Finally, Mr.
Singer advocated for the identification of additional streams
of funding that can help small businesses assume these costs.
JOBS! JOBS! JOBS!
On Wednesday, June 30, 2021, the Subcommittee on
Innovation, Entrepreneurship, and Workforce Development held a
hybrid hearing titled, ``Jobs! Jobs! Jobs!'' The hearing
provided Subcommittee Members the opportunity to hear from
academics, nonprofit leaders, SBA Resource Partners, and small
business about the overall landscape of entrepreneurship and
the decades long decline in startup rates in the United States.
The hearing also discussed the Next Generation Entrepreneurship
Corps Act, legislation introduced by Chairman Jason Crow (D-
CO).
Witnesses on the panel included: Mr. John Dearie,
President, Center for American Entrepreneurship, Great Falls,
VA; Dr. J.D. LaRock, President and CEO, Network for Teaching
Entrepreneurship, New York City, NY; Ms. Denyse Airheart,
Director of Business Pathways, Mi Casa Resource Center, Denver,
CO; and Mr. Craig Etking, President and CEO, Intelligence360,
Sugarland, TX.
Mr. Dearie testified about the decades long decline in
entrepreneurship rates around the country, including voicing
his support for H.R. 1226, the Next Generation Entrepreneurship
Corps Act. Dr. LaRock testified about the need to increase the
interaction between the education system and entrepreneurial
development. Ms. Airheart emphasized the need for more
mentorship for small business owners, who are often not aware
of many of the resources available to those starting firms. Mr.
Etkin discussed the business landscape and emphasized the need
to maintain favorable business conditions to help small firms
recover.
RURAL AMERICAN RECOVERY: THE ROLE OF SMALL BUSINESSES AND
ENTREPRENEURSHIP
On Tuesday, July 13, 2021, the Subcommittee on Underserved,
Agricultural, and Rural Business Development held a remote
hearing titled, ``Rural American Recovery: The Role of Small
Businesses and Entrepreneurship.'' This hearing gave Members of
the Committee the opportunity to hear about the benefits small
firms bring to rural communities, difficulties they face, and
how the Small Business Administration can play a role in
supporting them, such as through the Office of Rural Affairs.
Witnesses on the panel included: Mr. Nathan Ohle, CEO,
Rural Community Assistance Partnership, Washington, DC; Ms.
Jessica Campos, Women's Business Center Director, Center for
Rural Affairs, Lyons, NE; Mr. Brett Challenger, Senior Vice
President, CoBank, Greenwood Village, CO; and Mr. Alan
Crawford, Owner and President, Rangaire Manufacturing,
Cleburne, TX.
Overall, witnesses talked about the importance of rural and
Main Street businesses as the backbone of communities across
the nation. The Committee heard about the unique challenges
rural entrepreneurs face compared to their urban counterparts.
Among the top challenges are geographic isolation, inadequate
broadband internet service, difficulty in hiring and retaining
qualified workers, barriers to capital and reluctance from
major industries to provide service in rural areas. Mr. Ohle
talked about the role of the federal government in bolstering
entrepreneurial infrastructure to support small businesses and
rural communities. Ms. Campos talked about how SBA Resource
Partners and the SBA can do more to support and engage with
rural small businesses. Mr. Challenger talked directly about
the previous work of the SBA Office of Rural Affairs and the
importance of investing in this office so that it can continue
to function. Mr. Crawford talked about the economic challenges
that his business is facing due to the COVID-19 pandemic. This
hearing provided Members with a solid understanding of why the
Office of Rural Affairs is important to supporting rural small
businesses and entrepreneurs.
INNOVATION AS A CATALYST FOR NEW JOBS: SBA'S INNOVATION INITIATIVES
On Wednesday, July 14, 2021, the Subcommittee on Economic
Growth, Tax, and Capital Access held a remote hearing titled,
``Innovation as a Catalyst for New Jobs: SBA's Innovation
Initiatives.'' During the hearing, Committee Members heard from
participants of the Small Business Administration (SBA) Growth
Accelerator Fund Competition, innovation experts, and small
business owners.
Witnesses on the panel included: Mr. E. LaVerne Epp,
Executive Chair, KU Innovation Park, Lawrence, Kansas; Mr.
Benjamin Johnson, Chairman, Innovation Advocacy Council,
Westerville, Ohio; Dr. Gabriel R. Burks, Vice President and
Head of R&D, FrostDefense Envirotech Inc., Champaign, IL; and
Mr. Jeffrey Maguire, Managing Partner & Co-Founder, Clearly
Clean LLC, Orwigsburg, PA.
Mr. Epp testified about his experience leading the KU
Innovation Park, a six-year Growth Accelerator Fund Competition
recipient, and the positive impact it has had on high-growth
small businesses. Mr. Johnson testified on behalf of the
Innovation Advocacy Council (IAC) and spoke to the importance
of supporting innovation-based businesses and how additional
support for SBA's programs can enhance and increase those types
of businesses. Dr. Burks testified about his experience in the
EnterpriseWorks growth accelerator, an SBA Growth Accelerator
Fund Competition recipient, and how it has positively impacted
his business, FrostDefense. Dr. Burks spoke to the resources
provided by the growth accelerator and how they have enabled
FrostDefense to grow and pivot when necessary. Mr. Maguire
spoke to the importance of patents and how protecting and
defending patents can be a time and money drain.
SBA'S ROLE IN CLIMATE SOLUTIONS
On Wednesday, July 21, 2021, the Subcommittee on Oversight,
Investigations, and Regulations met for a hybrid hearing
titled, ``SBA's Role in Climate Solutions.'' This hearing
allowed Members to learn more about the role that small
businesses can play in addressing climate change, and how
federal programs and services support small businesses as they
adapt, innovate, and thrive.
Witnesses on the panel included: Ms. Laurel Walk, Chief
Lending Officer, Colorado Lending Source, Ltd., Denver, CO; Mr.
Rick Chapman, General Manager, The Port of Sunnyside Club,
Inc., Stillwater, MN; Dr. Lynn Abramson, President, Clean
Energy Business Network, Washington, DC; and Mr. Mark Glenn,
Owner and Chief Executive Officer, FASTSIGNS, Carrollton, TX.
This hearing discussed the opportunities and challenges to
America's energy production, manufacturing, and what is needed
to position America as a clean energy leader. The Committee
heard about how small businesses play a vital role in the clean
energy economy. From adopting sustainable practices, installing
energy efficient equipment, manufacturing components of large-
scale renewable energy projects, to research and innovation,
small entities can be found in every state playing a crucial
role in developing climate smart solution. Ms. Walk testified
on the important role of the SBA 504 loan program, the need to
continue adequate support of the program, and how the program
can support integrating sustainability and clean energy into
small business projects. Mr. Chapman discussed climate related
disasters and the impacts on small businesses. He also talked
about resiliency and the importance of supporting pre-disaster
mitigation. Dr. Abramson provided important testimony on the
clean energy economy, the varied roles that small businesses
play, and the importance of supporting clean energy and energy
efficiency policies and programs. Dr. Abramson also outlined
the importance of supporting research and development in the
clean energy sectors. Mr. Glenn talked about the economic
challenges that his business is facing due to the COVID-19
pandemic, as well as some recycling efforts of his business.
Overall, this hearing provided insight for Members on the
impacts of climate change on small businesses, and what small
firms can do to engage with the clean energy economy.
WEALTH FOR THE WORKING CLASS: THE CLEAN ENERGY ECONOMY
On Tuesday, July 27, 2021, the Subcommittee on Innovation,
Entrepreneurship, and Workforce Development held a hybrid
hearing titled, ``Wealth for the Working Class: The Clean
Energy Economy.'' The hearing provided Subcommittee Members the
opportunity to hear from small businesses and advocates about
the opportunities available for small businesses in the clean
energy economy, the issues faced by many firms looking for
workers, and the ways to minimize negative impacts related to
decarbonization.
Witnesses on the panel included: Ms. Leticia Colon de
Mejias, CEO, Energy Efficiency Solutions, Windsor, CT; Mr.
James Hasselbeck, Director of Operations, ReVision Energy,
Inc., Portland, ME; Mr. Samuel Gilchrist, Western Campaigns
Director, Natural Resources Defense Council (NRDC), Denver, CO;
and Mr. Tom Greer, Proprietor/Owner, Hub City Brewing Co.,
Belen, NM.
Ms. Colon de Mejias testified about the need for adequate
workforce development and labor codes in energy efficiency as
well as the need to encourage more diversity in the industry
and the benefits of it being led by small firms. Mr. Hasselbeck
testified about his own experience utilizing apprenticeship
programs to train workers and how it made the clean energy
economy more inclusive to workers. Mr. Gilchrist testified on
the work NRDC is doing to diversify the economies of former
coal mining communities that will be disproportionately
affected by decarbonization and explained the role of small
businesses and workforce development initiatives in ensuring a
just transition. Mr. Greer testified about the use of energy in
his brewing company and the need to maintain cheap energy
options through all of the above energy policies.
SUSTAINABLE FORESTRY'S ROLE IN CLIMATE SOLUTIONS
On Wednesday, September 29, 2021, the Subcommittee on
Underserved, Agricultural, and Rural Business Development met
for a hybrid hearing titled, ``Sustainable Forestry's Role in
Climate Solutions.'' As the Federal Government considers
options for infrastructure investments and ways to help
mitigate and adapt to climate change, the forestry sector
offers multiple avenues to address these goals while also
promoting small business development in rural and underserved
communities. Sustainable forest management can provide economic
and social benefits to meet the needs of present and future
generations and also play a fundamental role in the natural
resource infrastructure of our nation. This hearing allowed
Members to learn more about the role of sustainable forestry
and how small businesses across this sector are helping to
address climate change.
Witnesses on the panel included: Mr. Dana Doran, Executive
Director, Professional Logging Contractors of Maine, Dr. Adam
Daigneault, Assistant Professor of Forest, Recreation, and
Conservation Policy & Economics, University of Maine, Mr. Mark
Thibodeau, Regional Manager, ReEnergy, and Mr. Scott Dane,
Executive Director, American Loggers Council.
Overall witnesses discussed the tremendous forest and
woodland natural resources that cover about 33 percent of our
country and provide numerous environmental and economic
benefits. Mr. Doran discussed how sustainable forestry
management and timber harvesting can be part of the solution
and not part of the problem in terms of climate change. He also
discussed forestry's role in supporting rural communities and
the economy. Dr. Daigneault outlined details on how forests are
highly valued for the diverse ecosystem services that they
provide, including the production of timber, fiber and fuel
resources, carbon sequestration, climate change mitigation,
freshwater, habitat, recreation, and preservation of cultural
values. He also brought up the importance of well-managed
forests and how they can provide a wide range of co-benefits to
society. Mr. Thibodeau discussed how sustainable forestry is an
important contributor to mitigating climate change and reducing
the risk of wildfire. He also highlighted the importance of
wood markets and wood utilization for forest maintenance. Mr.
Dane discussed that both public and private lands cannot be
managed in a healthy and sustainable way without logging and a
viable timber industry. Overall, this hearing was a well-
rounded discussion about the small businesses and markets of
the forestry sector and the importance of sustainable managed
forests to support climate change adaptation and mitigation.
GROWING THE SMALL BUSINESS SUPPLIER BASE IN GOVERNMENT CONTRACTING
On Wednesday, October 13, 2021, the Subcommittee on
Contracting and Infrastructure met for a remote hearing titled,
``Growing the Small Business Supplier Base in Government
Contracting.'' It focused on Category Management, an initiative
that has substantially contributed to the decrease in the
federal small business supplier base. The hearing examined
Category Management's impact on small businesses serving as
prime contractors and explored potential solutions to reverse
the decline.
Witnesses on the panel included: Ms. Alba Aleman, Chief
Executive Officer and Founder, Citizant Inc., Chantilly, VA,
who testified on behalf of the U.S. Women's Chamber of
Commerce; Ms. Lynn Ann Casey, Chief Executive Officer and
Founder, Arc Aspicio, Washington, DC; Mr. Victor Holt, Chief
Executive Officer and Founder, V-Tech Solutions Inc., Silver
Spring, MD, testifying on behalf of the HUBZone Council; and
Ms. Sophia Tong, Chief Executive Officer and Founder, T and T
Consulting Services Inc., Falls Church, VA, who testified on
behalf of the Montgomery County Chamber of Commerce.
The witnesses underscored how Category Management is
adversely impacting small businesses. In particular, Ms. Alba
Alem n explained that Category Management is taking away
contracting opportunities for small businesses, having taken
approximately 30 percent of her company's work away. She stated
that Category Management relies on massive contracting
vehicles--known as Best in Class or BICs--in which small
businesses cannot compete because of the extensive experience,
credentials and requirements they include. As a result, CM was
acting as a barrier to entry, hindering competition and
stifling innovation. Similarly, Ms. Casey stated that Category
management is contributing to the decrease in the federal small
business supplier base and expressed how she has seen a
decrease in the amount and scope of contracts available to
small businesses. She added that many of the requirements
previously performed by small businesses were moving to BIC
vehicles and therefore--because small businesses were
oftentimes not BIC contract holders--they were effectively
barred from recompeting on the work.
In their testimonies, Mr. Holt and Ms. Tong concurred with
what had been previously said and expounded on the challenges.
Mr. Holt highlighted how BICs have limited number of awardees
and how some don't allow for future ``on ramp'' opportunities
to get into the vehicle after initially awarded. Furthermore,
Ms. Tong elaborated on the unique difficulties that may arise
from serving as a subcontractor to a BIC holder, such as very
thin profit margins or losing the relationship with the
government client. Given all these challenges, the witnesses
agreed with and expressed support for an amendment introduced
as part of the National Defense Authorization Act for FY 2022
that would have exempted stand-alone contracts given to small
businesses in any of the socioeconomic set-aside programs
(8(a), WOSB, SDVOSB and HUBZone) from Category Management and
its goals.
GLOBAL SUPPLY CHAINS AND SMALL BUSINESS TRADE CHALLENGES
On Wednesday, October 20, 2021, the Subcommittee on
Oversight, Investigations, and Regulations met for a hybrid
hearing titled, ``Global Supply Chains and Small Business Trade
Challenges.'' The COVID-19 pandemic exposed many weaknesses in
the global supply chains that small businesses rely on to
provide goods and services. As the economy seeks to recover,
small firms and consumers alike continue to experience product
shortages and transportation delays that hinder a strong
recovery. The hearing allowed Members to examine the issues
causing disruptions, challenges small entities face in
adjusting to the disruptions, and steps Congress can take to
strengthen supply chain resiliency.
Witnesses on the panel included: Mr. Kevin Loe, Director of
Customer Engagement, Redi-Rock International, Mr. Chris
O'Brien, Chief Commercial Officer, C.H. Robinson, Ms. Christine
Lantinen, President and Owner, Maud Borup Inc., and Mr. John C.
Fowke, President, Homes by John C. Fowke Inc.
This hearing was multifaceted, discussing both supply chain
issues as well as the Small Business Administration's trade
support programs. Mr. Loe discussed the State Trade Expansion
Program (STEP) and how it was helpful in supporting his
company's engagement in international trade. As a result,
RediRock has grown export revenue by more than $3.5 million.
Mr. O'Brien outlined how economic growth, weather, labor
availability, regulations, transportation infrastructure, and
other factors impact our global supply chains. He also outlined
how the world's supply chains and transportation infrastructure
wasn't built to handle the near shut down of the early months
of COVID-19 followed by the very rapid restart as many
industries came back online and demand increased across the
globe. Ms. Lantinen outlined her experiences as a small
business owner struggling to get materials and components in
from other countries, as well as challenges with domestic
trucking capacity. She also discussed the labor challenges her
business has faced because people left the workforce and
standards for pay rates have increased. Mr. Fowke outlined
similar supply chain challenges for his industry in accessing
raw materials due to supply chain constraints, as well as
challenges with higher wage demands.
A REVIEW OF THE SBIC PROGRAM
On Wednesday, October 27, 2021, the Subcommittee on
Economic Growth, Tax, and Capital Access held a hybrid hearing
titled, ``A Review of the SBIC program.'' The hearing educated
Members about the Small Business Administration's (SBA) Small
Business Investment Company (SBIC) program, which is designed
to provide debt and equity financing to high-growth small
businesses lacking access to adequate capital from traditional
sources. Members also discussed recent proposals to target SBIC
investment to underrepresented businesses and critical sectors,
as well as ways to improve investor diversity in the program.
Witnesses on the panel included: Ms. Holly Huels, Founder
and Managing Partner, Holleway Capital Partners, LLC, St.
Louis, MO; Mr. Carl Kopfinger, Senior Vice President, TD Bank,
Philadelphia, PA; Ms. Carmen Palafox, Partner, MiLA Capital,
Chatsworth, CA; and Mr. John Mickelson, Managing Partner,
Midwest Growth Partners, West Des Moines, IA. Mr. Kopfinger
provided written testimony, but due to unforeseen circumstances
was unable to participate during the hearing.
In her testimony, Ms. Huels discussed the current state of
program operations after multiple years of reported
mismanagement. Ms. Huels reported improvements in this area,
but also identified more areas that need improvement, including
the agency's information technology systems and staffing
shortages. Mr. Kopfinger's written testimony from the
perspective of a SBIC limited partner (LP) discussed the role
banks play in the SBIC program. His testimony also mentioned
that despite it being a challenging year, zero SBIC debenture
funds and non-leveraged SBIC funds entered liquidation, which
is the equivalent of a bank's ``workout'' group. Ms. Palafox
testified that the SBIC program can help women and
underrepresented fund managers grow their presence, activate
more investment into startups, and generate other benefits to
society. She also testified in support of efforts to improve
diversity in the SBIC program, including through a Micro-SBIC
license and an Emerging Managers program. Mr. Mickelson
testified in support of allowing Rural Business Investment
Companies (RBICs) licensed by the U.S. Department of
Agriculture to draw leftover federal funds from the SBIC
program. He also testified in support of the creation of a
Micro-SBIC license to help create a more inclusive pool of
talented investors to invest in rural and underserved
communities.
THE COMMUNITY COLLEGE PIPELINE TO SMALL BUSINESSES
On Thursday, November 4, 2021, the Subcommittee on
Innovation, Entrepreneurship, and Workforce Development held a
hybrid hearing titled, ``The Community College Pipeline to
Small Businesses.'' The hearing provided Subcommittee Members
the opportunity to hear from educational leaders and business
executives about the importance of community colleges in
rebuilding the American economy, retooling the American
workforce, and revitalizing American businesses during the
recovery from the COVID-19 pandemic and recession.
Witnesses on the panel included: Dr. Anne Kress, Ph.D.,
President, Northern Virginia Community College, Annandale, VA;
Dr. Rebecca A. Corbin, Ed.D., President & CEO, National
Association for Community College Entrepreneurship, Cary, NC;
Mr. Joe Garcia, Chancellor, Colorado Community College System,
Denver, CO; and Mr. Frank Boecker, Manager of Human Resources,
Sunwest Electric, Inc., Anaheim, CA.
Dr. Kress discussed the important initiatives that Northern
Virginia Community College is doing to accelerate the adoption
of apprenticeships and emphasize the importance of noncredit
courses to help adult learners adapt to changing workforce
needs. Dr. Corbin discussed the initiatives her organization is
establishing in partnership with community colleges to foster
more entrepreneurship among community college students. Mr.
Garcia discussed the importance of the community college system
in delivering quality and affordable education as well as a
pathway into the middle class and good-paying jobs. Mr. Boecker
discussed the needs of businesses for skilled workers and his
experience recruiting workers as a human resource manager and
member of the associated builders and contractors.
Second Session of the 117th Congress
THE INFRASTRUCTURE INVESTMENT AND JOBS ACT'S BENEFITS FOR SMALL
BUSINESS
On Tuesday, February 15, 2022, the Subcommittee on
Underserved, Agricultural, and Rural Business Development held
a hearing titled, ``The Infrastructure and Jobs Act's Benefits
for Small Businesses.'' Members heard from small firms and
experts about how small firms can utilize the funds available
to grow their businesses and obtain lasting success. The
hearing provided Subcommittee Members an opportunity to explore
the benefits President Biden's Infrastructure Investment and
Jobs Act has for small businesses.
Witnesses on the panel included: Mr. Ed Mortimer, Vice
President, Transportation Infrastructure United States Chamber
of Commerce, Washington, DC; Mr. Mark Ouellette, President, and
Chief Executive Officer, Axiom Technologies, LLC., Machias, ME;
Mr. Jason J. Shedlock, Regional Organizer, Laborers'
International Union, New England Region Organizing Fund
President, Maine State Building & Construction Trades Council,
Portland, ME; and Mr. Terrance Lee Baker, Owner, Operator, and
Independent Contractor T.L. Baker Pilot Car Escort Services,
Blooming, Prairie, MN.
Mr. Mortimer emphasized the importance of investment within
America's aging infrastructure and illustrated the relationship
between access to transportation and broadband to quality of
life. Mr. Ouellette discussed the importance of the
Infrastructure and Job Act on his ability to provide
healthcare, hire more employees, all while increasing his
bottom line. Mr. Shedlock discussed how the vitality of the
American middle class is centered around strong trade unions
and their respective ability to safely and effectively rebuild
the nation. Finally, Mr. Baker called upon his experiences
scaling small businesses to display the risk of changing
infrastructure priorities.
THE 8(A) PROGRAM: OVERVIEW AND NEXT STEPS TO PROMOTE SMALL BUSINESS
SUCCESS
On Wednesday, March 2, 2022, the Subcommittee on
Contracting and Infrastructure met for a hybrid hearing titled,
``The 8(a) Program: Overview and Next Steps to Promote Small
Business Success.'' The hearing took place at 11:00 a.m. in
Room 2360 of the Rayburn House Office Building and through
Zoom. The hearing focused on the SBA's 8(a) program, which is a
9-year business development program that helps disadvantaged
small businesses better compete in the American economy. The
hearing examined how the program currently works as well as the
resources it provides to small businesses. Members heard from
stakeholders about ways to modernize the program and improve
its effectiveness.
Witnesses on the panel included: Mr. Darryl K. Hairston,
Retired, Small Business Advisor, Woodbridge, VA; Ms. Jackie
Robinson-Burnette, CEO, Senior Executive Strategic Solutions,
Woodbridge, VA; Mr. Arshdeep Khurana, President & CEO, Avosys
Technology, Inc., San Antonio, TX; and Ms. Qin Li, CEO, Soliel
LLC, Vienna, VA.
In general, the witnesses provided numerous recommendations
to improve the program. Among the most important suggestions,
Mr. Hairston recommended aligning the goals and
responsibilities of the Office of Government Contracting and
Business Development and the Office of Field Operations as both
offices have overlapping roles in the program. He also proposed
tailoring 7(j) training based on the developmental stage of
small businesses. Similarly, Ms. Robinson-Burnette recommended
giving priority to graduated 8(a) firms to serve as mentors to
other 8(a) participants in the Mentor Protege program,
highlighted the importance of having small business executives
present when overarching and governmentwide procurement
policies are being set, advised that all procurement-related
positions within the SBA need to be filled and proposed
increasing 8(a) sole-source thresholds.
Mr. Khurana and Ms. Li--two business owners--offered
suggestions based on their personal experiences participating
in the program. Mr. Khurana agreed that increasing the 8(a)
sole-source thresholds is needed and recommended giving current
participants an additional year in the program due to the
operational disruptions caused by the COVID-19 pandemic.
Lastly, Ms. Li suggested that the SBA should provide more
oversight of the Mentor Protege program, which is widely used
by 8(a) participants.
AN EMPIRICAL REVIEW OF THE PAYCHECK PROTECTION PROGRAM
On Wednesday, March 16, 2022, the Subcommittee on
Oversight, Investigations, and Regulations held a hearing
titled, ``An Empirical Review of the Paycheck Protection
Program.'' The hearing allowed Members to hear from government
and academic researchers about their studies on the Small
Business Administration's (SBA) Paycheck Protection Program
(PPP), a new forgivable loan guarantee program within the U.S.
Small Business Administration (SBA) that delivered almost $800
billion in capital to small businesses. The researchers focused
on the changes Congress and SBA made to PPP mid-way through to
help program funds reach as many underserved businesses as
possible after the initial round of funding went to
predominantly large and sophisticated businesses.
There were two witness panels. The witness on the panel one
included: Mr. William Shear, Director of Financial Markets and
Community Investment for the U.S. Government Accountability
Office (GAO). Witnesses on the second panel included: Dr.
Robert Fairlie, Professor of Economics, University of
California-Santa Cruz, Santa Cruz, CA; Dr. Manju Puri, J.B.
Fuqua Professor of Finance, Duke University Fuqua School of
Business, Durham, NC; Dr. Iryna Demko, Research Associate,
Center for Economic Development, Maxine Goodman Levin College
of Urban Affairs, Cleveland State University, Cleveland, OH;
and Mr. Robert Barnes, President and Chief Executive Officer,
PriorityOne Bank, North Magee, MS (testifying on behalf of the
Independent Community Bankers of America).
In his testimony, Mr. Shear presented the findings of the
GAO's study and report of PPP program changes intended to
increase lending to the smallest businesses and those in
underserved markets. Specifically, GAO found by the time PPP
closed in June 2021, lending in traditionally underserved
counties was proportional to their representation in the
overall small business community. In response to questions, Mr.
Shear stated the two program modifications that stood out most
to him were the inclusion of Community Development Financial
Institutions (CDFIs) and actions taken to help smaller banks
participate.
During the second panel, Dr. Fairlie's testimony provided
the first analysis of how PPP funds were disbursed to minority
communities during the third (and final) round of the program,
which was targeted to such communities. He testified the
``rebooted'' PPP that ran from January to May 2021 appears to
have been disbursed to minority communities as intended. He
attributed this to the empowerment of CDFIs in later rounds, as
well as the 14-day application exclusivity period for
microbusinesses. Dr. Puri testified about the use of banks to
deliver of PPP funds, focusing specifically on the difference
between big and small banks, and found significant differences
in how big and small banks prioritize small clients: big banks
were more likely to prioritize larger clients early. She found
prior lending relationships helped firms gain early PPP access,
but little evidence that relationships with big banks helped
more--if anything, small bank relationships helped firms get
early PPP access, especially with small bank lenders.
Dr. Demko testified that small woman--and minority-owned
firms did not receive PPP loans in the same sizes as their
white male-owned counterparts. Unlike the research groups led
by Drs. Fairlie and Puri, Dr. Demko and her co-author also
conducted a micro-level analysis of PPP, which consisted of 19
structural interviews with a variety of small businesses in
Northeast Ohio. Results from these interviews showed businesses
that received smaller loan amounts had more difficulty with the
loan application process, filed a larger number of
applications, and pursued more alternative funding sources
compared to businesses that received larger loans. Mr. Barnes'
testimony provided the community bank perspective on PPP. He
testified his bank has experienced zero cases of fraud in the
more than 1,200 loans they made because of the bank's due
diligence and careful underwriting, which he testified is
typical of community bank PPP lenders.
On this point, Committee Members noted this is in contrast
with some online nonbank PPP lenders, who have been shown to be
associated with a significantly larger portion of potential PPP
loan fraud. He also testified regarding his bank's desire to
not ``saddle'' any PPP borrowers with unexpected debt, which is
aligned with pending legislation introduced by Small Business
Committee Members regarding good faith loan amount
miscalculations. Mr. Barnes also testified in support of SBA's
504/CDC loan program, in which many community banks participate
as third-party lenders. He stated that lending pauses, even
brief ones, are very disruptive to lenders and borrowers, and
testified in support of a ``shock-absorbing'' mechanism in the
504/CDC program (such as one that already exists in the
7(a)loan program) that would allow the program to continue
lending despite unexpected increases in demand.
CATALYZING ECONOMIC GROWTH THROUGH SBA COMMUNITY-BASED LENDING
On Tuesday, March 29, 2022, the Subcommittee on Economic
Growth, Tax, and Capital Access held a hearing titled,
``Catalyzing Economic Growth through SBA Community-Based
Lending.'' This hearing allowed Members to hear from these
lenders and learn how SBA's business loan programs, especially
those delivered by community-based lenders, can better meet the
needs of small businesses in underserved markets. These include
the 504/CDC Loan program, the SBA Microloan program, and the
Community Advantage Pilot Loan Program. The SBA Paycheck
Protection Program (PPP) helped small businesses stay afloat
throughout the COVID-19 pandemic. In later phases of the
program, Congress made changes to allow community-based
lenders, including SBA Certified Development Companies (CDCs),
SBA Microloan Intermediaries, and Treasury-certified Community
Development Financial Institutions (CDFIs) to originate more
PPP loans. Research shows the changes improved the program's
reach into underserved markets. While the PPP closed on May 31,
2021, to new applications, the hearing explored how community-
based lenders who helped deliver PPP to underserved markets can
continue to play a vital role in providing affordable capital
to entrepreneurs in these markets.
Witnesses on the panel included: Mr. Manny Flores,
President/Chief Executive Officer, SomerCor, Chicago, IL; Mr.
Kerry Doi, President/Chief Executive Officer, Pacific Asian
Consortium in Employment (PACE), Los Angeles, CA; and Ms.
Brooke Mirenda, President/Chief Executive Officer, SEDCO,
Clearwater, FL.
Mr. Flores' testimony highlighted how CDCs in the SBA 504
Loan program can help alleviate supply chain and manufacturing
shortfalls in the American economy. At the end of FY 2021, the
504 program experienced a brief but highly disruptive lending
pause due to program demand exceeding authorized levels. To
prevent another lending pause in future fiscal years, he also
testified in support of combining the authorization levels of
the regular 504 and 504 debt refinance programs bringing them
under the same authorization level of $15 billion. As a CDC
also participating in SBA's Community Advantage Pilot Loan
program (CA), Ms. Flores testified in support of making the CA
program permanent. Mr. Doi testified about the role CDFIs play
as financiers for small firms but also in providing essential
social and technical services that meet the unique needs of
immigrants, asylees, and those historically excluded from
traditional banking. He also testified about the financial
strength of the SBA Microloan program, evidenced by the
program's cumulative default rate of less than two percent. Ms.
Mirenda's testimony echoed support for combining the
authorization levels for 504 programs. She also testified in
support of extending the authorization of the 504 Express Loan
program, which was created in the Economic Aid Act to
streamline loan processing and approval for 504 loans of
$500,00 or less. Under the Economic Aid Act, the program will
sunset in September 2023, however as of the date of this
hearing, SBA had not issued a rule implementing the program.
She testified extending the sunset to 2027 would allow the
program sufficient operating time to assess performance and
efficacy.
SKILL, UPSKILL, AND RESKILL: ANALYZING NEW INVESTMENTS IN WORKFORCE
DEVELOPMENT
On Thursday, March 31, 2022, the Subcommittee on
Innovation, Entrepreneurship, and Workforce Development held a
hybrid hearing titled, ``Skill, Upskill, and Reskill: Analyzing
New Investments in Workforce Development.'' Subcommittee
members heard from an expert, a union leader, a community
college president, and a small business owner about ongoing
issues with the labor market, new investments in workforce
development through the Bipartisan Infrastructure Law, and how
small businesses can engage more effectively with workforce
development opportunities.
Witnesses on the panel included: Mr. Gerald Lee Arnold,
Business Manager and Financial Secretary Treasurer, Denver
Pipefitters Local #208, Denver, CO; Dr. Mordecai Brownlee,
Ed.D., President, Community College of Aurora, Aurora, CO; Mr.
Joseph W. Kane, Fellow, Brookings Institution, Washington, DC;
and Ms. Diana Benck, General Operations Manager and Owner, West
Side Tractor Sales Co., Lisle, IL.
Mr. Arnold testified about the value of registered
apprenticeships in training a qualified workforce and
strategies to get small businesses more involved in the
apprenticeship process. Dr. Brownlee explained the importance
of community colleges in skilling and upskilling lower income
communities and providing them with a pathway to economic
mobility. Mr. Kaine provided the committee with a broader
perspective on the country's workforce challenges and how the
government can utilize the Bipartisan Infrastructure Law to
train a new generation of the infrastructure workforce. Ms.
Benck outlined her experience as a small business owner and
issues she faced, particularly with the lack of skilled
workers, like service technicians.
SBA MANAGEMENT REVIEW: OFFICE OF ADVOCACY
On Wednesday, April 6, 2022, the Subcommittee on
Underserved, Agricultural, and Rural Business Development, held
a hearing titled, ``SBA Management Review: Office of
Advocacy.'' During the hearing, Committee Members heard from
the Office of Advocacy regarding their operations,
responsibilities, and how Congress can better support their
mission.
The sole witness included: Mr. Major Clark III, Deputy
Chief Counsel for Advocacy, performing the non-exclusive
functions and duties of the Chief Counsel for Advocacy.
Mr. Clark testified about the history of the Office of
Advocacy and its role as an independent office within the Small
Business Administration. In addition, Mr. Clark testified on
the importance of the Office's economic and legal research
teams to ensure regulations do not unduly burden small
businesses, as well as the importance of the Office's Regional
Advocates that directly interact with small businesses across
the country. Mr. Clark also testified about the Office's role
in overseeing federal agencies' compliance with the Regulatory
Flexibility Act (RFA) and ensuring that small business
interests are represented in the regulatory process.
MOVING UPWARDS AND ONWARDS: THE WORKFORCE AND INNOVATION NEEDS OF THE
AVIATION AND AEROSPACE INDUSTRY
On Thursday, May 12, 2022, the Subcommittee on Innovation,
Entrepreneurship, and Workforce Development held a hybrid
hearing titled, ``Moving Upwards and Onwards: The Workforce and
Innovation Needs of the Aviation and Aerospace Industry.''
Subcommittee members heard from industry representatives and
small business owners about the needs and concerns of the
Aerospace and Defense Industry, particularly focused on supply
chain issues and supporting workforce development initiatives.
Witnesses on the panel included: The Honorable Eric
Fanning, President, Aerospace Industries Association,
Arlington, VA; Ms. ML Mackey, CEO, Beacon Interactive Systems,
Division Chair, Small Business Division, National Defense
Industries Association, Arlington, VA; Mr. Blake Scholl, CEO,
BOOM Supersonic, Denver, CO; Ms. Judy Burns, CEO, Patriot
Machine, St. Charles, MO.
The Honorable Eric Fanning testified about the broader
industry as a whole what role it plays in the U.S. economy
and national security, the challenges they face as a result of
the COVID-19 pandemic, and policy options Congress should
examine to maintain U.S. technological superiority. Ms. Mackey
testified about the importance of federal research and
development programs for the innovation workforce, and what
investments could be made to strengthen the aviation workforce,
like pilots and engineers. Mr. Scholl testified as the CEO of
an innovative company, looking to bring back supersonic flight
to the mainstream and how important the Small Business
Innovation Research program was to give his company more
legitimacy both to investors and to the government. Ms. Burns
testified about how hard it is to recruit and retain skilled
workers, especially amid supply chain disruptions and higher
costs for raw materials.
FINTECH AND TRANSPARENCY IN SMALL BUSINESS LENDING
On Wednesday, July 13, 2022, the Oversight, Investigations,
and Regulations held a hearing titled ``Fintech and
Transparency in Small Business Lending.'' This hearing allowed
Members to examine the effect of innovations in financial
technology (``Fintech'') and online lending on small
businesses. During the hearing, Members heard perspectives on
issues related to online small business lending from lenders,
industry advocates, and academics, with a focus on assuring a
fair but efficient small business credit market among non-bank,
online lenders.
Witnesses on the panel included: Mr. Sean Salas, Chief
Executive Officer, Camino Financial, Los Angeles, CA; Ms. Joyce
Klein, Senior Director, Business Ownership Initiative, Aspen
Institute, Washington, DC; Ms. Diane Paterson, Regional
Director, Twin Cities Small Business Development Center,
Minneapolis, MN; and Dr. John Griffin, James A. Elkins
Centennial Chair in Finance, McCombs School of Business, The
University of Texas, Austin, TX.
Mr. Salas' testimony highlighted how, as a Fintech lender
that is also certified by the Treasury Department as a
Community Development Financial Institution (CDFI), he can
provide affordable capital to underserved businesses while
disclosing all terms and costs in a fair, responsible, and
transparent manner. Mr. Salas also testified about how
technological advances in the financial services sector can be
used to help reach borrowers who are harder to reach by
traditional lending institutions, and how technology can be
used to help lower costs for borrowers.
Ms. Klein testified that improving transparency and
disclosure in small business financing is increasingly
important because higher-cost, short-term financing is becoming
a common and often dominant product that small businesses
encounter in the market. She also testified about the need to
apply Truth in Lending-like disclosures to small business
loans, and that the Consumer Financial Protection Bureau (CFPB)
is the appropriate federal regulator for the small business
lending market given the CFPB's current jurisdiction over the
Truth in Lending Act and Section 1071 of the Dodd-Frank Act.
She also testified in support of a strong nationwide disclosure
standard, including disclosure of the annual percentage rate
(APR), for small business loans to prevent jurisdiction-
shopping by online lenders.
Ms. Paterson testified her Small Business Development
Center (SBDC) regularly interacts with small business owners
who struggle to navigate confusing fine print, adverse interest
rates, loan terms, and pre-payment penalties that have the
power to put them out of business. Her testimony provided an
example of a small business that took out a $100,000 online
loan with a 12-month term, almost 60 percent interest rate, and
a $20,000 pre-payment penalty to supplement an existing bank
loan. The business and SBDC struggled to get the original bank
to refinance the online loan largely due to the high pre-
payment penalty, but eventually did refinance the loan to
ensure the viability of the business and the repayment of the
bank's original loan, since business closure would mean default
on the bank's original loan. Ms. Paterson testified this is a
rare outcome, and that most businesses in that position usually
have no choice but to default.
Dr. Griffin's testimony summarized the main findings from
his and his co-author's paper titled ``Did Fintech Lenders
Facilitate PPP Fraud?'' which overall are that there is a
greater likelihood for potentially fraudulent PPP loans among
Fintech-originated loans. In response to questions from
Members, Dr. Griffin also stated he believes the CFPB should
play a role in overseeing the small business lending market. He
also stated he would like to see more public transparency of
data already being collected by small business lenders, and
that it should be made available to the CFPB or another
appropriate federal agency for public consumption. He also
agreed APRs should be disclosed for small business loans, and
stated that even as a finance professor, he finds his
colleagues sometimes confused by some of the terms in various
loan documents.
A REVIEW AND ASSESSMENT OF THE SBA HUBZONE PROGRAM
On Thursday, July 14, 2022, the Subcommittee on Contracting
and Infrastructure met for a hybrid hearing titled, ``A Review
and Assessment of the SBA HUBZone program.'' The hearing took
place at 10:00 a.m. in Room 2360 of the Rayburn House Office
Building and through Zoom. The hearing focused on the
Historically Underutilized Business Zone (HUBZone) program that
is administered and overseen by the Small Business
Administration. The hearing examined how the program is
working, its challenges and benefits, and what additional
reforms are needed.
Witnesses on the panel included: Mr. Matthew Schoonover,
Managing Member, Schoonover & Moriarty LLC, Olathe, KS; Ms.
Shirley Bailey, CEO, Summit Federal Services, LLC & HUBZone
Council Chair, Oakland, MD; Ms. Ines Rivas-Hutchings, Founder &
President, Intec Group LLC & Women in Construction Owners and
Executives (WCOE) Member, Paducah, KY; and Mr. Brent Lillard,
CEO & Co-Founder, GovSmart, Inc., Charlottesville, VA.
In the hearing, Mr. Schoonover and Ms. Bailey expressed
concerns with the Federal Government's continuous failure to
meet the 3% HUBZone goal because it precluded the Government
from achieving the purpose of the program, which is economic
development and lifting communities out of poverty. On a
related matter, both Mr. Schoonover and Ms. Rivas-Hutchings
noted concerns with not enough awards being issued under the
HUBZone program. In their view, having more contracts being
issued as HUBZone set asides would incentivize more firms to
participate in it.
Overall, all witnesses provided suggestions to improve the
program. Among the changes suggested, Mr. Schoonover
recommended recognizing HUBZone firms as eligible firms under
the Department of Transportation Disadvantaged Business
Enterprise rogram while Ms. Bailey recommended extending the
HUBZone price evaluation preference to orders, embracing
telework, increasing HUBZone sole-source thresholds and
providing contracting officers additional and recurring
training on the program. Additionally, Mr. Lillard recommended
providing the program parity with other small business programs
in areas like increasing its contracting goal and Ms. Rivas
Hutchings recommended reforming the SBA's Small Business
Procurement Scorecard to enhance transparency and accuracy.
THE SBA OFFICE OF INTERNATIONAL TRADE AND THE STEP PROGRAM AS KEY TOOLS
FOR RECOVERY AND EXPANSION
On Tuesday, July 19, 2022, the Subcommittee on Economic
Growth, Tax, and Capital Access held a hearing hybrid titled,
``The SBA Office of International Trade and the STEP Program as
Key Tools for Recovery and Expansion.'' The hearing reviewed
the Small Business Administration's (SBA) State Trade Expansion
Program (STEP). The Small Business Jobs Act of 2010 authorized
the creation of a three-year State Trade and Export Promotion
pilot grant initiative to increase the number and value of
small business exports. In 2015, through the Trade Facilitation
and Trade Enforcement Act of 2015, the SBA was directed to
formally establish STEP and provide grants to states to
increase the number of small business exporting or proposals
that would assist rural, women-owned, and socially or
economically disadvantaged small businesses.
Witnesses on the panel included: Mrs. Mary Waters, Deputy
Commissioner for International Trade, Georgia Department of
Economic Development; Mr. William Spear, Manager, New Jersey
Office of Export Promotion and Director, NJ STEP; Mr. Luther
Tooks, CEO, Pyramid Foods, LLC; and Mr. Devan Walding, Vice
President Sales, RADIUS.
Mrs. Waters testified that Georgia was an early participant
in STEP in 2011 and 2012 but stepped away after the application
was denied. Georgia reapplied in 2020 during the pandemic to
expand Georgia's financial assistance awards to small
businesses. Mrs. Waters stated that STEP is a valuable resource
for Georgia small businesses and that program reauthorization
is critical to supporting greater U.S. exports. In addition,
Mrs. Waters testified that measuring return on investment by
long-term outcomes, reducing administrative requirements, and
increasing funding to $30 million are steps that can be taken
to improve the program.
Mr. Spear testified about New Jersey's successful
involvement in STEP, how New Jersey implements uncomplicated
reporting requirements for participating small businesses, and
how STEP is an administratively easier program than other
federal grants. Mr. Spear stated that throughout the pandemic,
New Jersey saw an increase in interest in the program,
especially from newer companies, and that New Jersey plans to
focus on new to export firms in the upcoming grant cycle.
Finally, Mr. Spear stated that New Jersey has applied for the
maximum grant amount for the 2022 cycle and looks forward to a
continued partnership with the SBA. Mr. Tooks testified that
STEP helped him export his barbeque rubs and sauces to Canada
and Mexico. STEP was particularly helpful with translating
their marketing brochure and labels translated into Spanish and
properly reformatted to meet the requirement for sale in
Mexico. Mr. Walding testified that STEP has enabled RADIUS to
participate and compete in exporting channels that the company
would otherwise struggle, or be unable, to afford. The
availability of STEP grants allowed RADIUS to start a dialogue
around what opportunities would provide the best return on
investment for their brand and made in America products.
SBA DISTRICT OFFICE COLLABORATION WITH RESOURCE PARTNERS
On Wednesday, July 20, 2022, the Subcommittee on
Underserved, Agricultural, and Rural Business Development held
a hearing hybrid titled, ``SBA District Office Collaboration
with Resource Partners.'' A strong relationship is necessary
between the Small Business Administration (SBA) and its
Resource Partners to ensure important information is flowing
from the agency to small business across the country. SBA's
District Offices are a critical component in this flow or
information as they are the Agency's representatives in the
field and tasked with forming productive relationships with the
Resource Partners in their area.
Witnesses on the panel included: Mr. Mark Delisle, State
Director, Maine SBDC; Ms. Nancy Strojny, Assistant District
Director, SCORE Maine; Mr. J.D. Collins, State Director,
Michigan SBDC; and Mr. John William ``Bill'' Leaverton,
Regional Director, America's SBDC at Tarleton State University.
Mr. Delisle testified about the successful relationship
Maine SBDC has with the Maine District Office and how that has
directly contributed to the success of the Maine SBDC program.
Mr. Delisle testified that the Maine SBDC has meetings, events,
and promotional activities with the District Office. In
addition, Mr. Delisle and Ms. Strojny testified about the
oversight performed by the District Office over Maine SBDC and
SCORE Maine respectively. Ms. Strojny testified that the
quarterly meetings held with the Maine District Director is an
opportunity for the Resource Partners to discuss current
issues, opportunities, and provide updates. Mr. Collins
testified that the Michigan SBDC and Michigan District Office
did not always have the strongest relationship, but by
establishing monthly meetings, sharing best practices, and
increasing collaboration, he was able to develop a robust
relationship between Michigan Resource Partners and their
District Office. Mr. Leaverton testified that the SBDC at
Tarleton enjoys a collaborative relationship with the SBA but
that more can be done to assist rural entrepreneurs and small
business owners. One idea Mr. Tarleton presented is
establishing ways to provide direct access to capital for small
and micro businesses in rural areas that do not have fixed
assets to obtain traditional financing.
RIGHT TO REPAIR AND WHAT IT MEANS FOR ENTREPRENEURS
On Wednesday, September 14, 2022, the Subcommittee on
Underserved, Agricultural, and Rural Business Development held
a hybrid hearing titled, ``Right to Repair and What it Means
for Entrepreneurs.'' The hearing provided Members the
opportunity to hear from small business owners and experts
about the impacts of repair restrictions on small businesses,
misconceptions on the right to repair movement, and what policy
proposals exist to resolve this issue.
Witnesses on the panel included: Ms. Gay Gordon-Byrne,
Executive Director, Digital Right to Repair Coalition, North
River, NY; Mr. Brian Clark, Co-Owner, The iGuys' Tech Shop,
LLC, Conway, NH; Mr. Jim Gerritsen, Marketing Manager, Wood
Prairie Family Farm, Bridgewater, ME; Mr. Ken Taylor,
President, Ohio Machinery Co., Broadview Heights, OH.
Ms. Gordon-Byrne testified about the need to pass Right to
Repair laws similar the original Massachusetts law because of
the benefits it can deliver for farmers, rural communities, and
independent businesses as well as reduce the amount of e-waste
society produces. Mr. Clark testified to his experience as an
independent repair shop owner, and the hurdles he faces
accessing genuine parts, tools, manuals, and schematics from
manufacturers. He detailed the attempts by manufacturers to
control various aspects of his business and emphasized the need
to protect rural, independent repair shops so that residents
can maintain access. Mr. Gerritsen testified about his
reluctance to buy new farm equipment to avoid repair
restrictions imposed by manufacturers. He emphasized the
importance of time during his planting and harvesting season
and how devastating potential breakdowns could be if he wasn't
able to repair his own equipment immediately. Mr. Taylor
testified about the complexity of the issue and the need to
ensure that proper right to repair laws don't also threaten the
intellectual property of manufacturers, the profitability of
distributors, and the safety of consumers.
BACK TO SCHOOL, BACK TO STARTUPS: SUPPORTING YOUTH APPRENTICESHIP,
ENTREPRENEURSHIP, AND WORKFORCE DEVELOPMENT
On Thursday, September 15, 2022, the Subcommittee on
Innovation, Entrepreneurship, and Workforce Development held a
hybrid hearing titled, ``Back to School, Back to Startups:
Supporting Youth Apprenticeship, Entrepreneurship, and
Workforce Development.'' The hearing provided Members the
opportunity to hear from experts, program leaders and
educational institutions about youth apprenticeship as a means
of supporting and investing in workforce development.
Witnesses on the panel included: Mr. Noel Ginsburg, Founder
and Chief Executive Officer, CareerWise, Denver, CO; Ms.
Deborah Kobes, Senior Director, Jobs for the Future (JFF),
Washington, DC; Ms. Shani Watkins, Director, West Sound
Technical Skills Center, Bremerton School District, Bremerton,
WA; and Mr. Jared Ebbing, Economic Development Director for
Mercer County, OH; Mercer County, OH.
Mr. Ginsburg testified that apprenticeships for high school
students are not only beneficial to the educational development
of the students, but also to the growth of small businesses.
Ms. Kobes emphasized the need for equitable access to youth
apprenticeships for lower income and minority individuals
through supportive services, such as transportation or internet
access. She also called on congressional support for employers
through means of legislation and public funds. Ms. Watkins
brought attention to CTE programs, such as hands-on active
learning, and the implementation of work study experience in
high school to equip a better prepared workforce. She stated
that models surrounding apprenticeship in other countries, like
Denmark, could be replicated to fit the country's workforce
needs. Mr. Ebbing emphasized the need to raise awareness of the
careers that exist in local communities through websites and
create connections between entrepreneurs for an emerging
workforce.
BUILDING SUSTAINABLE BUSINESSES THROUGH EMPLOYEE OWNERSHIP AT SBA
On Tuesday, December 6, 2022, the Subcommittee on
Oversight, Investigations, and Regulations held a hybrid
hearing titled ``Building Sustainable Businesses through
Employee Ownership at SBA.'' The hearing gave Members an
opportunity to hear about the challenges faced by employee-
owned businesses in accessing affordable capital from the SBA,
and SBA and Congressional efforts to address those issues.
Witnesses on the panel included: Ms. Mo Manklang, Policy
Director, U.S. Federation of Worker Cooperatives, Philadelphia,
PA; Mr. Corey Rosen, Founder, National Center for Employee
Ownership, Covina, CA; Mr. Keith D. Butcher, Partner, Mosaic
Capital, Saint Louis, MO; and Mr. Scott Lockard, President,
Hampton Enterprises, Lincoln, Nebraska.
Ms. Manklang testified about the benefits of the worker
cooperative model, including better wages, benefits, and
stability. She also testified about the lack of support by SBA
after the passage of the Main Street Employee Ownership Act of
2018. She further testified that she only found one case of a
worker co-op being able to access a 7(a) loan in the last five
years. In her view, the main issues with SBA are its lack of
outreach and education to business owners about the employee
ownership model; and the personal guarantee requirement is at
odds with the co-op ownership structure. Mr. Rosen testified
about how SBA has failed to implement the Main Street Employee
Ownership Act as intended by Congress and it has resulted in
providing few 7(a) loans to ESOPs and co-ops. He further added
that SBA has the authority to implement the changes being
proposed in the bills recently introduced by Chairwoman
Velazquez and Subcommittee Chairman Phillips. Finally, he added
SBA has failed to do any meaningful outreach to ESOPs and co-
ops as envisioned by the Main Street Employee Ownership Act.
Mr. Butcher testified about the opportunity SBA has to
provide capital to encourage small businesses to transition to
employee ownership. This would address the massive succession
of Baby Boomer businesses that is coming to fruition. He added
that while the 7(a) program can be utilized to meet the needs
for companies in a value range less than $15 million, the SBIC
program can be a strong influence on the next size category of
businesses. Mr. Lockard testified about some of the challenges
facing small businesses today to include high labor costs and
shortages, supply chain issues, and inflation.
PART C
Waste, Fraud, Abuse, and Mismanagement
Of the hearings delineated above, the following were
devoted specifically to an examination of programs within the
Committee's jurisdiction with a focus on potential
mismanagement, waste, fraud and abuse.
HEARINGS ON SBA MANAGEMENT AND BUDGET
The Committee continued its oversight of the management of
SBA through hearings and meetings with agency officials and
stakeholder groups. During 2021 and 2022, to date, numerous SBA
officials, industry representatives and small business owners
were questioned about the operation of SBA programs:
A Committee hearing to assess the state of
the small business economy in the COVID-19 era was held
on February 4, 2021.
A series of hearings with the SBA
Administrator Isabella Casillas Guzman were held on May
26, 2021, November 16, 2021, April 27, 2022, and
December 7, 2022.
A series of management review hearings were
held with on:
October 6, 2021, Associate
Administrator Dark Madrid testified before the
Committee on the operations of the SBA's
Entrepreneurial Development programs.
March 8, 2022, Mr. John
Williams, Director of Innovation and
Technology, Office of Investment and
Innovation, testified before the Committee on
Small Business Innovation Research and Small
Business Technology Transfer programs
April 6, 2022, Mr. Major Clark,
Deputy Chief Counsel for Advocacy testified on
the Office of Advocacy.
May 18, 2022, Associate
Administrator Patrick Kelley testified on the
Office of Capital Access
June 23, 2022, Associate
Administrator BiBi Hildalgo testified on the
Office of Government Contracting and Business
Development.
September 20, 2022, Associate
Administrator Gabriel J. Esparza testified on
the Office of International Trade.
A series of hearings were held with the
Office of Inspector General and Government
Accountability Office.
On January 12, 2022, the OIG
testified on two reports: SBA's Top Management
and Performance Challenges in FY 2022 and SBA
OIG's Semiannual Report to Congress.
On April 20, 2021, the Honorable
Hannibal ``Mike'' Ware, Inspector General, and
Mr. William Shear, Director of Financial
Markets and Community Investment, Government
Accountability Office testified on SBA's
Pandemic Response programs.
Subcommittee on Underserved, Agricultural,
and Rural Business Development hearing on the role of
the Community Navigator Pilot Program in reaching
underserved businesses was held on March 18, 2021.
Subcommittee on Economic Growth, Tax, and
Capital Access hearing to examine the role of SBA's
loan and investment programs in supporting small
manufacturers was held on April 29, 2021.
Subcommittee on Innovation,
Entrepreneurship, and Workforce hearing on SBA's
entrepreneurial development ecosystem.
Subcommittee on Oversight, Investigations,
and Regulations hearing to review SBA's grant programs,
including the Shuttered Venue Operators Grant and the
Restaurant Revitalization Fund was held on May 27,
2021.
Subcommittee on Underserved, Agricultural,
and Rural Development hearing examining SBA's role in
supporting small businesses in rural communities was
held on July 13, 2021.
Subcommittee on Oversight, Investigations,
and Regulations hearing examining SBA's Role in Climate
Solutions was held on July 21, 2021.
Committee hearing examining efforts to
improve access to the 7(a) loan guarantee program for
employee-owned firms was held on September 30.
Subcommittee on Economic Growth, Tax, and
Capital Access hearing examining the SBIC program was
held on October 27, 2021.
Subcommittee on Contracting and
Infrastructure hearing ways to modernize and improve
the SBA's 8(a) program was held on March 2, 2022.
Committee held hearings on the Small
Business Innovation Research and Small Business
Technology Transfer programs on March 8, 2022, June 23,
2021, and May 13, 2021.
Multiple hearings were held on the Paycheck
Protection Program: on March 16, 2022, a hearing was
held on an empirical review of the Paycheck Protection
Program; on September 1, 2021, a hearing was held on
legislative and administrative efforts to streamline
the forgiveness process for borrowers and lenders; on
March 23, 2021, a hearing was held to examine the
extent the FAR Credits Clause interacts with the
Paycheck Protection Program and its implications for
federal contractors; and on March 10, 2021, a hearing
was held examining the state of the first and second
draw loans, as well as loan forgiveness.
Subcommittee on Economic Growth, Tax, and
Capital Access hearing on how SBA loan programs can
better meet the needs of the underserved markets was
held on March 29, 2022.
Committee hearing to review how the SBA
supports Veteran entrepreneurs transition to civilian
life.
Subcommittee on Contracting and
Infrastructure hearing to review and assess SBA's
HUBZone program was held on July 14, 2022.
Committee hearing on small businesses
perspective on STEP and its effectiveness in providing
exporting opportunities was held on July 19, 2022.
Committee hearing to review the relationship
between SBA district offices and SBA Resource Partners
was held on July 20, 2022.
Committee hearing on how to improve and
modernize the SBA's Bond Guarantee program was held on
July 27, 2022.
HEARINGS ON SBA FINANCIAL ASSISTANCE PROGRAMS
In the 117th Congress, the Committee continued its focus on
SBA's capital access programs. During 2021 and 2022, to date,
numerous SBA officials, industry representatives and small
business owners were questioned regarding frequent concerns
about the struggle for small businesses to access capital to
fund their operations. Below is a list of hearings that were
held on SBA's capital access programs that were not included
above.
Committee hearing to examine the role of
CDFIs and MDIs in small business lending was held on
May 18, 2021.
Committee hearing regarding the effect of
innovations in financial technology and online lending
on small businesses was held on July 13, 2022.
HEARINGS ON FEDERAL PROCUREMENT
During the 117th Congress, the Committee continued to
examine federal procurement rules as they affect small
businesses. Below is a list of hearings that were held on
federal procurement programs that were not included above.
Committee hearing on contracting
opportunities for small businesses in the
Infrastructure Plan was held on June 10, 2021.
Subcommittee on Contracting and
Infrastructure hearing examining the decline in the
small business supplier base in government contracting
was held on October 13, 2021.
Committee hearing examining governmentwide
contracts and assessing their impact on the federal
small business base was held on June 14, 2021.
HEARINGS ON SBA ENTREPRENEURIAL DEVELOPMENT PROGRAMS
During the 117th Congress, the Committee continued to
examine SBA's Entrepreneurial Development programs. During 2021
and 2022, to date, numerous SBA officials, industry
representatives and small business owners were questioned
regarding delivery of the entrepreneurial development programs.
Below is a list of hearings that were held on federal
procurement programs that were not included above.
Subcommittee on Economic Growth, Tax, and
Capital Access hearing examining federal investment in
innovation as a means to foster entrepreneurship was
held on July 14, 2021.
Committee hearing on the boom in
entrepreneurship in 2020, and the changing nature of
the economy coming out of the pandemic was held on
November 3, 2021.
PART D
Implementation of the Oversight Plan
Subpart 1--Oversight of Federal Capital Access Programs
7(a) Program
The Committee held numerous hearings and conducted
oversight over the SBA's 7(a) Loan Guaranty program (7(a)
program), which is the agency's flagship loan program. Under
the 7(a) program, private sector lenders (mostly banks but also
some non-depository lenders) originate commercial and working
capital loans up to $5 million to small businesses who cannot
access credit elsewhere. SBA guarantees 50 to 90 percent of
each 7(a) loan made, depending on loan characteristics,
assuring the lender that if a borrower defaults on the loan,
SBA will purchase the loan and the lender will receive an
agreed-upon portion of the outstanding balance. For the
majority of 7(a) loans, SBA relies on lenders with delegated
authority to process and service loans, and ensure borrowers
meet the program's eligibility requirements.
On May 18, 2022, the Committee held an oversight hearing
and management review hearing with the Office of Capital
Access. The Office of Capital is responsible for managing the
agency's 7(a) program. During the hearing, Members examined the
operations of the 7(a) program. Members also asked questions
about SBA's success in facilitating loans being made to small
businesses in underserved areas. Associate Administrator Kelley
discussed the need to increase small-dollar lending in the 7(a)
loan program and target small business in underserved markets.
He also answered questions about improving the 7(a) program to
make it more accessible to employee-owned businesses and those
seeking to transition to employee ownership.
As part of its legislative efforts, the Committee approved
two bills to increase the Office of Credit Risk Management's
(OCRM) oversight of 7(a) loan agents and brokers. Increased
risk to SBA's business loan programs introduced by loan agents
and brokers has been consistently cited by Office of Inspector
General as a top management and performance challenge facing
the agency, most recently in FY 2021. H.R. 4481 would require
OCRM to establish a registration system for 7(a) agents to
collect data to help OCRM track and evaluate loan performance
for loans generated through loan agent activity. It also
enhances OCRM's and the SBA Lender Oversight Committee's
enforcement authority with respect to 7(a) agents. H.R. 4531
would require OCRM to submit an annual report to Congress
regarding the performance of and risk associated with 7(a)
loans generated through loan agent activity. Both bills passed
the House on November 2, 2021, and were received in the Senate
and referred to the Committee on Small Business and
Entrepreneurship on November 3, 2021.
Also, the Committee continues to monitor the subsidy rate
for the 7(a) program, as part of one of the Committee's long
term oversight priorities. The Committee would like to continue
to see SBA achieve a zero-subsidy rate for the 7(a) program, so
it will not have to raise fees on borrowers or lenders or
request an appropriation from Congress.
504/Certified Development Company Program
Building on its efforts from the 116th Congress, the
Committee held hearings, conducted oversight, and approved
legislation to improve the 504/Certified Development Company
program (504 loan program) in the 117th Congress. During the
Committee's oversight hearing with the Office of Capital
Access, Members inquired about how increasing the maximum loan
size for manufacturers could address the supply chain issues
the country is experiencing. During multiple other hearings,
the Committee heard from witnesses on how the 504 loan program
could help alleviate supply chain and manufacturing shortfalls.
As part of its legislative oversight efforts the Committee
helped shepherd two bills through the House (H.R. 1482 and H.R.
1490) that would improve the 504 loan program. The two bills
were approved by the House, under Suspension of the Rules, on
April 15, 2021. H.R. 1482 revises the duties of the Office of
Credit Risk Management to include oversight of a Certified
Development Company that participates in the 504 loan program.
H.R. 1490 updates the 504 loan program and enhances small
manufacturers' ability to access affordable capital. The bills
were received in the Senate and referred to the Committee on
Small Business and Entrepreneurship on April 19, 2021.
As part of its ongoing oversight efforts, the Committee
continues to monitor the agency's FY23 budget request for the
504 loan program. At the end of FY 2021, the 504 loan program
experienced a brief but highly disruptive lending pause due to
program due to demand exceeding authorization program. level of
$7.5 billion. Committee staff held several meetings with SBA,
House Appropriations staff, and stakeholders to increase the
504-authorization cap for Fiscal Year 2022. H.R. 2471, the FY22
Consolidated Appropriations bill, provides $11 billion for the
504 program.
Community Advantage Program
The Committee held many hearings examining SBA's lending
programs, which includes the Community Advantage (CA) Pilot
program in the 117th Congress. At these hearings, the Committee
heard testimony in support of making the CA Pilot Program
permanent. During the Committee oversight hearing of the Office
of Capital Access on May 18, 2022, Associate Administrator
Kelley mentioned the need to extend of the CA Pilot Program in
order to assist small businesses in underserved markets.
As part of its oversight duties, the Committee has focused
on legislative efforts to expand SBA-backed lending in
underserved markets to ensure SBA loans are distributed
equitably. Also, the legislative efforts are to ensure that SBA
lending programs meet the credit, management, and technical
assistance needs of small businesses in underserved markets. In
the Build Back Better Act (renamed to the Inflation Reduction
Act), the Committee approved a recommendation to appropriate
funds for a CA loan program. It would have provided $600
million over 10 years to enhance, improve, and expand the CA
program. On November 16, 2022, H.R. 9311, the ``Community
Advantage Loan Program Permanency Act of 2022'' was introduced
in the House. H.R. 9311 would permanently authorize the CA
program under the Small Business Act and require SBA to provide
free or low-cost in-person and online training upfront and on
an ongoing basis to CA lenders.
Microloan Program
During the 117th Congress, the Committee held hearings and
approved legislation in its efforts to provide oversight over
SBA's Microloan program. On March 29, 2022, the Subcommittee on
Economic Growth, Tax, and Capital Access held a hearing on
SBA's business loan programs and how utilize them to support
business in underserved markets. Testimony was provided that
indicated that SBA's Microloan program was strong and the
default rates for the program was less than two percent. On May
18, 2022, the Committee held an oversight hearing with the
Office of Capital Access, which administers the program. The
hearing provided Members of the Committee the opportunity to
ask questions regarding the success of the program in providing
small dollar loans to startups and small businesses.
On April 15, 2021, the House approved two bills (H.R. 1487
and H.R. 1502) that would improve the SBA's Microloan program.
H.R. 1487, requires the SBA to report certain metrics related
to the disbursement of microloans to small businesses. H.R.
1502, optimizes the operations of the Microloan program and
lowers costs for small business concerns and intermediary
participants in the program. The bills were received in the
Senate and referred to the Committee on Small Business and
Entrepreneurship on April 19, 2021.
Small Business Investment Company Program
In the 117th Congress, oversight of the Small Business
Investment Company (SBIC) program was a top priority. The
Subcommittee on Economic Growth, Tax, and Capital Access held a
hearing to review the program on October 27, 2021. The hearing
also examined proposals to target investments to
underrepresented businesses and to improve investor diversity
in the program. Moreover, the Subcommittee heard testimony in
support of the establishment of a micro-SBIC license to
increase investments in rural and underserved communities.
Further, the Subcommittee heard about the need to update SBA's
IT systems and to add more staff in the Office of Investment
and Innovation.
In order to increase investments by SBIC's in
underrepresented businesses, the Committee included multiple
provisions in the Committee's recommendations for the Build
Back Better Act (renamed to the Inflation Reduction Act).
First, the Committee recommended $9.5 billion be appropriated
to establish a subprogram within the SBIC program--titled the
Venture Small Business Investment Companies program--to provide
patient capital to underserved markets and critical industries.
The Committee also recommended providing $20 million to
implement the Emerging Managers program, which is a mentorship
program to pair less-experienced fund managers interested in
getting their first SBIC license with highly-experienced SBIC
managers to provide guidance and advice. Additionally, $40
million was to be provided to implement the MicroCap SBIC
license subprogram to increase SBIC diversity. Finally, the
Committee recommended appropriating $2.5 million to expand
awareness and utilization of the SBIC program, and $2 million
to establish a working group to provide recommendations on how
to increase demographic and geographic diversity in the
program.
Furthermore, the Committee worked on improving access to
investment capital for small businesses by approving H.R. 4256
on July 29, 2021. The bill would increase the amount of capital
and surplus a financial institution or savings association may
invest in a SBIC from 5 to 15 percent. The bill was approved by
the House on November 2, 2021, and was received in the Senate
and referred to the Committee on Banking, Housing, and Urban
Affairs on November 3, 2021.
As part of its continued oversight of this program, the
Committee intends to review the recently released proposed rule
by the SBA to create a new class of SBICs, called Accrual
SBICs. The purpose of the Accrual SBICs to unlock more patient
capital financing for small businesses and implement changes to
lower financial barriers to program participation for new fund
managers. According to the SBA, reducing financial and
administrative barriers to participate in the SBIC program and
modernizing the program's license offerings to align with a
more diversified set of private funds investing in underserved
small businesses is an Administration priority.
Subpart 2--Oversight of Pandemic Related Programs
Paycheck Protection Program
In response to the COVID-19 pandemic, Congress created the
Paycheck Protection Program (PPP), which was implemented with
the assistance of the Department of Treasury. The program was
designed to help small employers access critical financial
assistance quickly. The Committee held numerous oversight
hearings on the PPP to assess the effectiveness of the program
and review the program's reach and performance, particularly to
women, minorities, and underserved communities.
During the 116th and 117th Congress', the Committee not
only held numerous hearings, but also held briefings and
meetings with SBA management, the OIG, and small businesses
regarding PPP. In addition, the Committee has worked with the
House Select Subcommittee on the Coronavirus Crisis as part of
its oversight efforts of PPP. These oversight efforts led the
Committee to offer legislative changes before the Second Draw
PPP Loan that the GAO found increased lending to the smallest
businesses and those in underserved markets.
Moreover, the Committee's hearings with Administrator
Guzman on March 26, 2021, and November 16, 2021, provided
insight on steps the agency was taking to address fraud within
the PPP. Similar hearings to address SBA's plans to address
fraud were held with the OIG and GAO during the 117th Congress.
At those hearings, both entities outlined program deficiencies
and steps SBA personnel could take to address fraudulent loans.
As part of its continued oversight, the Committee will continue
to monitor the SBA's implementation of recommendations offered
by the OIG and GAO.
After multiple meetings with the OIG and the Pandemic
Review Accountability Committee the Committee was notified to
the fact that one of the biggest challenges in prosecuting PPP
fraud is the discrepancy in the statute of limitations
governing bank-originated and Fintech-originated PPP fraud.
Most bank-originated PPP fraud is being prosecuted as bank
fraud, which has a 10-year statute of limitations. Meanwhile,
Fintech-originated PPP fraud must be prosecuted as wire fraud
since Fintech companies are technically not financial
institutions. To address this discrepancy, the Committee
approved H.R. 7352, introduced by Chairwoman Velazquez, which
established a statute of limitations of ten years for all PPP
loan fraud cases. H.R. 7352 was signed into law by President
Biden on August 5, 2022.
Currently, the Committee is monitoring SBA's process of
forgiving PPP loans. The Committee held hearings in 2021 and
2022, which brought to light the fact that overpayments due to
good faith calculation errors by the small businesses, or even
its lender, will not be forgiven by the SBA. Currently, over
300,000 PPP borrowers are facing financial hardship due to good
faith loan amount miscalculations, some due to no fault of
their own. On September 15, 2022, Congresswoman Houlahan,
Congresswoman Chu, and Chairwoman Velazquez led a letter
addressed to Administrator Guzman that requests SBA work with
Congress to immediately address this issue. The Committee will
continue to examine legislative way to fix this good faith
error issue.
COVID-19 Economic Injury Disaster Loan Program
On March 6, 2020, Congress passed legislation, which deemed
the COVID-19 outbreak a declarable disaster under the Small
Business Act, allowing Economic Injury Disaster Loans (COVID-19
EIDL) to be available to small businesses. During the 117th
Congress, the Committee has conducted robust oversight over the
COVID-19 EIDL program. The Committee has held hearings,
briefings, and sent inquiries to SBA in order to shed light on
the policy issues associated with the program, and approved
legislation to address those issues.
During the hearings regarding the COVID-19 EIDL program,
the Committee learned of the success of the program in helping
to provide needed capital to help the smallest of small
business staff afloat during the pandemic. However, the design
of the program and the safeguards put in place when the program
was first rolled out contributed to the significant amount of
fraud seen today. At the Committee's January 12, 2022, hearing
with SBA Inspector General Ware, it was estimated that there
could be up to $80 billion in potentially fraudulent loans.
Hearings with Administrator Guzman and Associate Administrator
Kelley, in 2022, allowed Members to inquire about the
improvements the Biden Administration and SBA has made to
safeguard against fraud within the program.
The Committee also worked with the House Select
Subcommittee on the Coronavirus Crisis to lead inquiries into
SBA's management of the COVID-19 EIDL program under the Trump
Administration. As well as, led inquiries into the contractors
and subcontractors that were selected to help run the program.
On February 11, 2021, the Committee and Subcommittee sent
letters to RER, Rocket Loans, and Rapid Finance requesting
information about the $750 million contract awarded to RER to
manage the program. The letter highlighted the Committees were
investigating the fraud controls for the project and the
potential waste of taxpayer funds. On July 14, 2021, the
Committee and Subcommittee sent a letter to SBA raising
concerns regarding the Trump Administration's management of the
program.
The Committee also took legislative action to deter fraud
within the program. The CARES Act streamlined the COVID-19 EIDL
application process and removed the requirement that an
applicant submit a tax return or a tax return transcript.
However, the OIG recommended requiring a tax transcript, and
not relying on self-certification, to verify eligibility to
help prevent fraudulent loans from being disbursed. Congress
addressed this issue and permitted the SBA to require an
applicant to submit a tax return before obligating funds. In
the 117th Congress, SBA implemented this change, which helped
prevent the disbursement of loans to bad actors. Also, as
discussed above with the PPP statute of limitations bill, the
Committee approved legislation to create a 10-year statute of
limitations for all COVID EIDL fraud, including for EIDL
Advances and Targeted EIDL Advances. This would give
prosecutors extra time to go after bad actors who have
defrauded the COVID-19 EIDL program. H.R. 7352 was signed into
law by President Biden on August 5, 2022.
The Committee also spent a significant amount of time
focused on the customer service operations of the COVID-19 EIDL
program. During hearings in the 117th Congress, Members raised
issues their constituents were experiencing to include long
call wait times into the customer service centers, lack of
transparency or lack of information from SBA personnel, and
inaccurate or conflicting information provided by SBA personnel
to applicants. The Committee also looked into SBA and Internal
Revenue Service (IRS) issues in processing applicant tax return
request, further discussed below. Committee staff held
briefings with the SBA and IRS to discuss these issues. In the
beginning of 2022, the Committee sent an inquiry to the agency
looking for more information and answers regarding the
processing of COVID-19 EIDL applications.
The SBA is now in the process of servicing the COVID-19
EIDLs, almost 4 million loans were disbursed that totaled close
to $400 billion. An applicant has up to 30 years to pay back a
loan. The Committee will continue its oversight to ensure that
EIDL loan recipients are receiving the required services they
need from the agency. Also, the Committee wants to ensure that
the agency has the resources needed to service such a large
portfolio.
Restaurant Revitalization Fund
The American Rescue Plan created a Restaurant
Revitalization Fund (RRF) and provided SBA with $28.6 billion
for grants to qualifying food and beverage establishments, $5
billion of which was set aside for businesses with less than
$500,000 in gross receipts in 2019. The program had an initial
21-day priority period where SBA is to prioritize grants to
women or veterans owned small businesses, and other socially or
economically disadvantaged small business concerns. It took SBA
four months to stand up this new multibillion-dollar grant
program. Given the amount of documentation and paperwork
required for each application, the Committee conducted
oversight to ensure the timely administration of the program.
On May 26, 2021, the Committee held an oversight hearing
examining the SBA's COVID relief programs, which included RRF.
During the hearing Members were able to ask questions to
Administrator Guzman about the rollout of the RRF program. They
also asked questions about outreach for the program and
language services being provided. During the oversight hearing,
the Members also were told about the popularity of the program
and how the funds for the program were exhausted in a short
time frame.
Additionally, the U.S. Court of Appeals for the Sixth
Circuit ruled that the SBA's prioritization of RRF funds was
unconstitutional under the Equal Protection Clause. In response
to this and other rulings, the SBA sent letters to priority RRF
applicants who had been notified that their applications had
been approved that they will not receive funding until non-
priority applications are processed. However, the funds were
exhausted before this could occur. On July 29, 2021, the
Committee sent a letter to Administrator Guzman asking for more
information regarding SBA's notification to these priority
applicants. As part its oversight of SBA's COVID relief
programs, the Committee has strived to ensure that small
business in underserved markets were getting the financial
relief that they need. During the pandemic women, minority, and
veteran owned small businesses borne an outsized burden of the
economic harms.
In response to funds being exhausted for this program, the
Committee worked on legislation (H.R. 3807), to provide $42
billion to replenish the RRF. The bill passed the House on
April 7, 2022, and was received in the Senate on the same day.
As part of its oversight duties, the Committee will
continue to examine the needs of restaurants that did not
receive any funds from RRF, and other possible policy options
to assist those small businesses. In fact, the Committee has
held meetings about funds that are still leftover in the
program that can be disbursed to eligible small businesses.
Currently, SBA and the Department of Justice are working on
plans to distribute those funds.
Shuttered Venues Operating Grant Fund
The Economic Aid Act created the Shuttered Venue Operators
Grant (SVOG) program, and provided SBA with $15 billion for
grants to eligible live venue operators or promoters,
theatrical producers, live performing arts organization
operators, museum operators, motion picture theatre operators,
or talent representatives who demonstrate revenue loss. The
SVOG program had three different priority periods for
applicants, depending on the amount of lost revenue. Through
this program the SBA was able to award an initial grant up to
45% of gross earned revenue, capped at $10 million. The
American Rescue Plan provided an additional $1.25 billion for
SVOG, and allowed entities to apply for both PPP and SVOG which
was previously forbidden by the Economic Aid Act.
As part of its oversight, the Committee held numerous
hearings to conduct oversight over the SVOG program. On May 26,
2021, the Committee heard from Administrator Guzman regarding
the rollout of the program and the processing of applications.
Members were given the opportunity to ask questions about the
initial issues with the rollout of the program, such as the
need to close the portal on April 8, 2021. During the SBA's
budget hearing on April 7, 2022, Members heard from the
Administrator regarding the agency's FY 2023 budget request for
SBA's pandemic relief programs to include the SVOG program.
Furthermore, the Subcommittee on Oversight, Investigations, and
Regulations held a hearing on the impact of SBA's pandemic
grant programs on May 27, 2021. Members heard from the National
Association of Theater Owners about the importance of the SVOG
program, but also about the problems venues had in accessing
funds from the program.
On January 24, 2022, the Committee sent a letter to
Administrator Guzman asking SBA to work with the Committee to
make improvements to the program to address the economic
impacts felt by venues due to the Omicron Variant. At the
Committees' January 19, 2022, hearing on the creative economy,
arts workers testified that the economic recovery for venues
had halted because of the Omicron Variant, and additional
assistance was needed. However, SVOG program rules restricted
recipients of initial SVOG grants from using proceeds to cover
expenses incurred after December 31, 2021, so, during this
time, these venues were left without a tool to address the
ongoing crisis. In order to address this matter, H.R. 3807, the
``Relief for Restaurants and other Hard Hit Small Business Act
of 2022,'' included a provision that extend the period, until
March 11, 2023, in which SVOG recipients can use grant funds to
cover their expenses. The bill passed the House on April 7,
2022, and was received in the Senate on the same day. On May
25, 2022, the bill was placed on the Senate Legislative
Calendar under General Orders.
Going forward, the Committee will continue its oversight
and will monitor SBA's audits of SVOG awardees. SBA's audit
plan will help combat the possibility of fraud and abuse within
the SVOG program.
Subpart 3--Oversight of Entrepreneurial Development Programs
The SBA offers a wide range of free or low-cost counseling
and training services through its entrepreneurial development
ecosystem to help entrepreneurs launch and grow their small
businesses. To deliver these resources, the SBA relies on its
four primary Resource Partners: Small Business Development
Centers (SBDCs), Women's Business Centers (WBCs), Service Corps
of Retired Executives (SCORE), and Veterans Business Outreach
Centers (VBOCs). During the 117th Congress, the Committee
focused its oversight efforts on ensuring these programs were
operating effectively in creating jobs at startups and
traditional firms, meeting the needs of underserved
populations, and using taxpayers' dollars responsibly.
On May 19, 2021, the Subcommittee on Innovation,
Entrepreneurship, and Workforce Development held a hearing with
representatives from the SBDC, WBC, and SCORE programs to learn
how these programs could be improved and strengthened through
reauthorization. In addition, on October 6, 2021, the Committee
held a hearing with SBA Associate Administrator Mark Madrid to
discuss the status of SBA's counseling and training programs,
including the SBDCs, WBCs, and SCORE, and how reauthorizing
these programs could help improve their operation. Following
these hearings, the Committee worked with Representative Jared
Golden (D-ME) on H.R. 6445, the ``Small Business Development
Center Improvement Act of 2022,'' which would reauthorize the
SBDC program for four years, allow for the promotion and
advertisement of the program, and strengthen oversight through
an annual report to Congress. The Committee also worked with
Representative Sharice Davids (D-KS) on H.R. 6441, the
``Women's Business Center Improvement Act of 2022,'' to
reauthorize the WBC program for four years, create an
accreditation program for WBCs, and require annual reports to
Congress. Lastly, the Committee worked with Representative
Young Kim (R-CA) on H.R. 6450, the ``SCORE for Small Business
Act of 2022,'' which reauthorizes the program for two fiscal
years and maintains the progress and safeguards SCORE has put
in place to bring the program in line with federal operating
standards. These bills were marked up in Committee and passed
the House in the 117th Congress but were not considered in the
Senate.
On June 8, 2022, the Committee held a hearing with
representatives from the veteran business community to learn
more about the Boots to Business program offered by the VBOCs
as part of the Department of Defense's (DOD) Transition
Assistance program (TAP) and build support for the program..
The Committee heard testimony from both veterans and VBOC
employees that spoke of the success of the Boots to Business
program, with more than 20,000 service members participating in
the program in Fiscal Year 2021. Prior to the hearing, the
Committee worked with Representative Bradley Schneider on H.R.
3469, the ``Veteran Entrepreneurship Training Act of 2021,'' to
codify the Boots to Business program for five years. H.R. 3469
passed the House on November 2, 2021. A companion bill passed
the Committee on Small Business and Entrepreneurship in the
Senate, but it was not considered by the full Senate.
Subpart 4--Oversight of Federal Government Contracting
One of the core functions of SBA is to ensure that a fair
proportion of contracts and subcontracts are awarded to small
businesses. To accomplish this mission, SBA has a wide range of
contracting programs and supporting resources to level the
playing field through better access to the federal procurement
system. During the 117th Congress, the Committee focused its
oversight activities on ensuring these programs and resources
are implemented in a transparent manner and in accordance with
law. In addition, the Committee focused on highlighting the
challenges that are limiting firms from adequately competing.
The Committee and Subcommittee on Contracting and
Infrastructure held numerous hearings to explore the issues
facing small businesses contractors with the federal
government. One of the major obstacles is an initiative known
as Category Management which was discussed in two separate
hearings held on October 13, 2021, and June 14, 2022. Taking
into consideration how this initiative has significantly
disrupted the procurement landscape, the Committee asked
Administrator Guzman about the Agency's efforts to increase
participation and opportunities for small businesses in federal
government contracting during the April 27, 2022 hearing.
Similarly, during an oversight hearing with the Associate
Administrator of the Office of Government Contracting and
Business Development, Ms. Bibi Hildalgo, Members inquired about
small business participation on federal contracts. Associate
Administrator testified that the agency is monitoring the
progress of all agencies towards congressionally mandated goals
for small businesses contracting and is fully committed to
equity in procurement. They also heard about updates to the IT
platform for all certification programs and the work done by
the Administration to increase the federal contracting goal for
small and disadvantaged firms. Aligned with these efforts, the
Committee sent a letter to the Office of Management and Budget
on March 23, 2022, in response to a Memorandum titled
``Advancing Equity in Federal Procurement.'' In this letter,
the Committee inquired about certain policies included in the
Memo, which range from increasing the goals for socioeconomic
small business participation to reforms regarding Category
Management.
The Committee also studied an initiative known as the
Cybersecurity Maturity Model (CMMC), which seeks to protect the
Defense Industrial Base (DIB) from cyber-attacks. In this
respect, the Subcommittee on Oversight, Investigations, and
Regulations held a hearing on June 24, 2021, to discuss the
impact of the CMMC model on the DIB and the importance of
balancing cybersecurity with maintaining a diverse and robust
industrial base. Consequently, a provision was included in the
National Defense Authorization Act for Fiscal Year 2022
requiring the Department of Defense to report on the effects of
the CMMC framework on small businesses.
As part of its legislative oversight of the SBA's
contracting programs, the Committee held multiple hearings to
discuss specific programs and ways to improve them. For
example, the Committee held a hearing on the Surety Bond
Guaranty program on July 27, 2022, and the Subcommittee on
Contracting and Infrastructure held hearings on the 8(a)
program and the HUBZone program on March 2, 2022, and July 14,
2022, respectively. Equally important, the Committee approved
three measures to make the programs more robust and
transparent. H.R. 5879, the ``HUBZone Price Evaluation
Preference Clarification Act of 2021,'' clarifies that the
price evaluation preference applies to task orders. This
clarification will help create a more equitable contracting
system and allows federal agencies to spend more funds with
HUBZone firms. H.R. 7670, the ``WOSB Program Transparency
Act,'' requires the SBA to report the number and total dollar
amounts of contracts awarded under the Women-Owned Small
Business Federal Contracting program. Finally, H.R. 7694, the
``Strengthening Subcontracting for Small Businesses Act of
2022,'' encourages compliance with subcontracting plans. All
three bills were approved by the House on June 8, 2022.
The Committee also worked on numerous bipartisan
contracting provisions, some of which were included in the
National Defense Authorization Act for Fiscal Year 2022 and the
National Defense Authorization Act for Fiscal Year 2023. In
addition to the CMMC provision, the 2022 NDAA includes a
provision to protect small contractors by exempting the Miller
Act thresholds from periodic adjustments for inflation and a
provision authorizing the SBA's Office of Hearings and Appeals
to decide appeals relating to qualified HUBZone small business
concerns. Similarly, the 2023 NDAA includes a provision to
require additional data and codify the Small Business Scorecard
in the Small Business Act, and another to strengthen a
reporting requirement about bundled and consolidated contracts.
Finally, the Committee engaged in various efforts to
promote contracts with small businesses. For example, on
January 20, 2021, President Biden announced a national strategy
to respond to the pandemic which included increasing production
of testing and PPE by leveraging the Defense Production Act. In
response to this announcement, Chairwoman Velazquez and
Subcommittee Chairman Mfume, sent a letter to President Biden
to request that any effort to leverage the Defense Production
Act to respond to the COVID-19 pandemic should include small
businesses, in particular minority-owned businesses.
Subpart 5--Oversight of SBA Management
The Committee actively oversees the management of SBA
through hearings, letters, and meetings with agency officials
and industry representatives. The SBA assists small businesses
through business loans, loan guarantees, counseling, and
contracting preferences. A primary concern for the Committee is
to ensure that adequate levels of funding are available to
fully implement SBA programs.
The Committee held multiple hearings with Administrator
Guzman in the 117th Congress. The hearings reviewed SBA's
management of the pandemic relief programs, capital access
programs--specifically efforts undertaken by SBA to improve
access to capital for underserved small businesses and small-
dollar borrowers, government contracting programs, and
entrepreneurial development programs.
At the Committee hearing with Administrator Guzman to
discuss the SBA's FY 2023 budget on April 27, 2022, the
Administrator announced the creation of a new Fraud Risk
Management Board (FRMB), and the appointment of a Special
Counsel for Enterprise Risk. The Committee was pleased at the
steps the SBA was taken to address fraud withing the current
pandemic relief programs and to create a system to prevent
fraud in its programs going forward. Prior to the hearing, the
Committee learned of the FRMB and asked for additional
information from the agency regarding SBA's new fraud oversight
strategy. The Committee also wanted to ensure that the new
strategy was in conformance with the GAO's Fraud Risk
Framework. The Committee intends to continue to provide
oversight over SBA's implementation of a fraud risk strategy
and the work conducted by the FRMB.
As discussed in other sections of the report, the Committee
has been steadfast in its oversight of the billions of dollars
that were disbursed by SBA as part its pandemic relief
programs. These programs will need to be monitored for years to
come.
Also, of concern to the Committee was the transfer of the
management of the disaster lending program from the Office of
Disaster Assistance to the Office of Capital Access, which was
announced by Associate Administrator Kelley at the Committee's
oversight hearing of the Office of Capital Access. Because of
the importance of the disaster lending program in helping
businesses and homeowners, the Committee followed-up with this
agency regarding this transfer. The Committee wanted to get a
better and more detailed understanding regarding the program
change, and how it would impact the agency's long standing and
proven disaster loan program.
As discussed in further detail above, the Committee was
concerned about SBA's FY 2023 budget request to reduce funding
for the CDC/504 loan program. The Committee raised these
objections in its May 17, 2022, Views and Estimates Letter,
which was transmitted to the Committee on Budget a required by
House Rules and the Congressional Budget Act. In the letter the
Committee also raised concerns about SBA's funded unproven
pilot programs, in particular the Committee believes that
instead of funding the Cybersecurity for Small Business Pilot
program the agency should instead focus its efforts on
improving cybersecurity assistance offered by its existing
network of entrepreneurial development service providers In
addition, the letter requests increased funding and support for
the Small Business Centers, Women's Business Centers, State
Trade Expansion Program, the Native American Outreach program,
the Small Business Set-Aside programs, the Office of Field
Operations, Office of Information Technology, and the Office of
Rural Affairs.
On October 15, 2021, the OIG released its report on the
most serious management and performance challenges facing the
SBA in Fiscal Year 2022. And on November 30, 2021, the OIG
released its Semiannual Report to Congress (April 1, 2021
through September 30, 2021), which highlighted its independent
oversight of the SBA, as required by law. On January 12, 2022,
the Committee held an oversight hearing to examine the
management and performance challenges identified in the OIG's
FY 2022 report, the OIG's Semiannual Report, and discuss SBA's
efforts to address these challenges.
Finally, throughout this Congress, the Committee also held
several management review hearings to evaluate budgetary
requests, financial management, and reporting goals in each of
the offices at SBA. The respective Associate Administrator from
each department testified before the Committee at these
hearings, which are detailed throughout this report. Moreover,
Committee staff met regularly with Associate Administrators and
other SBA employees to conduct oversight.
Subpart 6--Oversight of Federal Regulatory and Paperwork Burdens
During the 117th Congress, the Committee continued to
prioritize oversight of federal agency regulations and
paperwork requirements to ensure small businesses are not
unduly burdened. On Wednesday, April 6, 2022, the Subcommittee
on Underserved, Agricultural, and Rural Business Development,
held an oversight hearing with the Office of Advocacy. Mr.
Major Clark III, Deputy Chief Counsel for Advocacy, testified
about the Office's role in elevating the concerns of small
businesses through the Federal rulemaking process. The hearing
also examined Advocacy's role in monitoring agencies'
compliance with the Regulatory Flexibility Act (RFA).
Legislatively, the Committee worked with former
Representative Antonio Delgado (D-NY) to advance H.R. 4877, the
``One Stop Shop for Small Business Compliance Act of 2021,''
which would require the SBA and Agriculture Regulatory
Enforcement Ombudsman (Ombudsman) to create a centralized
website for compliance guides. H.R. 4877 would reduce the
administrative burden on small businesses by housing small
business compliance guides for any rule for which an agency
must prepare a final regulatory flexibility analysis in one
place. In addition, H.R. 4877 requires the Ombudsman to report
to Congress on federal agencies' compliance with the Small
Business Regulatory Enforcement Fairness Act of 1996 (SBREFA).
H.R. 4877 was signed into law by President Biden on October 10,
2022 (Pub. L. No. 117-188).
As part of its ongoing oversight efforts, the Committee
continued to monitor federal agencies compliance with the
SBREFA, which requires agencies to report to Congress annually
on small entity compliance guides that are required for every
final rule that has a significant impact on a substantial
number of small entities under the Regulatory Flexibility Act.
Subpart 7--Oversight of Federal Tax Matters
During the 117th Congress, the Committed conducted
oversight of tax issues that arose with the processing of
COVID-19 EIDL and PPP applications. In 2021, SBA started
requiring COVID-19 EIDL applicants to submit a copy of their
tax return with their application so their information could be
verified in order to prevent fraud within the program. In order
to receive a copy of the tax return, the SBA would send a Form
4506-T to the Internal Revenue Service (IRS) to process the tax
return request for the applicant. During the Committee's
oversight, which included meetings and briefings, it found that
delays at the IRS and administrative errors by the SBA
detrimentally impacted COVID-19 EIDL applicants receiving their
loans in a timely manner.
In addition, Chairwoman Velazquez sent a letter to
Secretary Yellen at the Department of Treasury and
Administrator Guzman at the SBA regarding the high number of
PPP loan application denials of business owners whose ITINs
numbers were expired by the IRS. This issue adversely impacted
immigrant business owners from receiving PPP loans and relief
from other SBA programs.
Subpart 8--Oversight of Health Care Policy
With the impact of the pandemic on small businesses and
their employees nationwide, the Committee conducted oversight
of the pandemic healthcare policies that affected small
businesses during the 117th Congress. On November 4, 2021,
President Biden and the Department of Labor's Occupation Safety
and Health Administration (OSHA) issued the details of a
requirement for employers with 100 or more employees to ensure
workers are fully vaccinated or face testing for COVID-19 on a
weekly basis. The OSHA Emergency Temporary Standard (ETS) will
also require that these employers provide paid time for
employees to get vaccinated, and ensure all unvaccinated
workers wear a face mask in the workplace. In response to this
ETS, the Committee held a bipartisan briefing for Members to
get a better understanding of how the ETS was going to protect
employees and customers, and the potential impact of this
policy on small businesses.
Subpart 9--Oversight of Energy Policy
In the 117th Congress, several hearings were held detailing
how small businesses can be involved in the clean energy
economy. On July 21, 2021, the Subcommittee on Oversight,
Investigations, and Regulations held a hearing regarding the
role small businesses can play in addressing climate change and
the impact of climate change on small businesses. The hearing
also discussed opportunities for small businesses in the clean
energy economy. The Subcommittee on Innovation,
Entrepreneurship, and Workforce Development held a hearing on
July 27, 2021, that examined the opportunities for small
businesses, workers, and consumers in the clean energy economy.
The clean energy economy has the potential to create millions
of good-paying jobs across tens of thousands of businesses
while lowering energy prices for consumers. The Subcommittee on
Underserved, Agricultural, and Rural Business Development held
a hearing about the role of sustainable forestry and how small
businesses across this sector are helping to address climate
change on September 29, 2021.
Subpart 10--Oversight of Trade Policy
The State Trade Expansion Program (STEP) aims to increase
the number of small businesses that export and raise the value
of existing small business exporters. The SBA Associate
Administer of the Office of International Trade is responsible
for overseeing the program and awards matching funds to states
and territories for participation in trade missions,
international marketing efforts, workshops, export trade show
exhibits, and other promotional activities. In the 117th
Congress, the Committee worked to ensure the STEP program meets
the needs of its participants and expands access to export
markets across the country, in preparation for the
reauthorization of the program.
On July 19, 2022, the Subcommittee on Economic Growth, Tax,
and Capital Access held a hearing to learn about the importance
of STEP for small businesses. Economic development officials
from Georgia and New Jersey highlighted how STEP has been a
valuable resource for the small businesses in their states. On
September 20, 2022, the Committee held an oversight hearing
with the Office of International Trade. The hearing gave
Members an opportunity to learn more about the Office's
operations implementation of its flagship exporting program for
small businesses, STEP. During the hearing, Associate
Administrator Esparaza acknowledged that some states were
concerned with the administrative requirements of the STEP
grant. He committed to work on those issues and improving the
effectiveness and efficiency of the program.
On September 21, 2022, the Committee approved H.R. 8844,
the ``STEP Improvement Act of 2022,'' which would reauthorize
STEP for 4 fiscal years. In addition, the legislation would
improve the implementation of the program by creating a
standardized application process, increasing spending
flexibility for grant recipients, improving communication
between SBA and States, collecting performance metrics and
reporting to Congress. H.R. 8844, was approved by the House on
XX, and was received in the Senate and referred to the
Committee on Small Business and Entrepreneurship on December 6,
2022.
Moreover, although under related to STEP, the Committee
looked at other ways to increase international trade
opportunities for small businesses. In doing so, the Committee
approved a measure, H.R. 6454, which makes clear that the
Office of Advocacy has the authority to examine international
economic data, and represent small business interests in
international discussions, particularly in trade negotiations.
The Office of Advocacy has participated in a number of
international regulatory cooperation and international trade
initiatives that have impacted small businesses. Their ability
to conduct outreach to small business sectors and examine the
potential economic effects of agreements on small businesses
can help level the playing field for small businesses, and in
turn, open vast new markets for smaller firms. H.R. 6454 was
approved by the House on April 26, 2022.
Subpart 11--Oversight of Agriculture
During the 117th Congress, the Committee conducted hearings
and oversight on the important role small businesses play in
the agriculture sector of the economy. Small businesses are
engaged in a wide range of farm and food related activities as
producers, distributors, and retailers domestically and in the
international market. The Subcommittee on Underserved,
Agricultural, and Rural Development held a hearing on September
14, 2022, on the impacts of repair restrictions on farmers and
businesses in rural communities. The Subcommittee heard
testimony regarding the hardships on farmers caused by the fact
that they cannot repair their equipment immediately due to the
repair restrictions. On June 16, 2021, the Subcommittee on
Underserved, Agricultural, and Rural Development held a hearing
examining leveraging investments in broadband to support small
businesses. During the hearing Mr. Tim Waibel, President of the
Minnesota Corn Growers Association, testified that modern
farmers need reliable and affordable internet to utilize the
technologies to run a successful farm. Finally, during a
Committee hearing on the SBA's SBIC program on October 27,
2021, Mr. John Mickelson, Managing Partner of Midwest Growth
Partners, testified that Rural Business Investment Companies
licensed by the U.S. Department of Agriculture should be able
to draw leftover funds from the SBIC program.
Subpart 12--Oversight of Technology, Competition, and Innovation Policy
During the 117th Congress, the Committee held hearings and
conducted oversight on the importance of innovation,
competition, and cybersecurity. The Committee also addressed
how the lack of access to broadband is impacting rural
communities, and the Committee conducted oversight on SBA's
efforts to modernize its legacy technology systems, such as
Certify.gov. The Committee also examined the systems used to
implement the PPP loan and COVID-19 EIDL programs.
Competition
On March 1, 2022, the Committee held a hearing to examine
the history of antitrust law and the historical importance of
encouraging fair competition and their potential impacts on
small firms. In particular, the hearing focused on whether
America's competition policy has stifled small business
innovation. In addition, the hearing examined policies that
could be instituted that would create a level playing field for
small businesses when they compete with larger corporations.
The Committee sent a letter to the Federal Trade Commission
and the Department of Justice on July 1, 2022, to submit their
findings and policy recommendations to promote competitive
labor markets and worker mobility in the creative economy that
resulted from a workshop the two agencies held titled, ``Making
Competition Work: Promoting Competition in Labor Markets.'' In
response to the letter, the two agencies held a briefing for
the Committee highlighting their work in this field,
specifically the steps they are taking to promote competition
in the creative industry and to protect and help workers that
are employed in the industry.
Cybersecurity
The Committee, in the 117th Congress, has been focused on
enhancing resources and conducting oversight of the SBA's
cybersecurity efforts. This includes reviewing the agency's
internal cybersecurity plans and plans to assist small
businesses in defending themselves from cyberattacks. The
financial and reputational harms of a cyberattack can be
devastating for a small business, and the Committee wants to
ensure that the resources are available protect these
businesses from bad actors.
In the 117th Congress, as part of its legislative oversight
efforts, the Committee approved three bills that would address
the increasing evolving cyberattacks aimed at small businesses.
The three bills are as follows: H.R. 3462, directs the SBA to
issue reports on its cybersecurity infrastructure and issue
reports in the event of cyberthreats, breaches, and
cyberattacks at the agency; H.R. 4515, helps Small Business
Development Centers become better equipped to assist small
businesses with their cybersecurity needs; and H.R. 4513, would
facilitate greater collaboration between small businesses and
the federal government, and ultimately fortify our nation's
cyber defenses. H.R. 3462 passed by the House on November 2,
2021, and was recently passed by the Senate, with an amendment
on December 6, 2022. H.R. 4515 passed the House on November 2,
2021, and was received in the Senate and referred to the
Committee on Small Business and Entrepreneurship on November 3,
2021. H.R. 4513 was reported to the House on October 12, 2021.
SBIR/STTR
On March 8, 2022, the Committee on Small Business held an
oversight hearing titled ``Overview of the Small Business
Innovation Research (SBIR) and Small Business Technology
Transfer (STTR) programs.'' This was the third hearing in a
series on the SBIR and STTR programs, which were set to expire
on September 30, 2022. The sole witness was Mr. John Williams,
the Director of Innovation and Technology for the SBA's Office
of Investment and Innovation (OII). SBA OII is responsible for
coordinating policy across the 11 participating agencies,
monitoring implementation of the programs, maintaining policy
directives, and developing annual reports. Director Williams
raised concerns about the fast-approaching expiration date of
the programs and the consequences of a shut down on small
business innovators and federal research agencies.
After months of bipartisan and bicameral negotiations, the
Committee finalized an agreement. The House passed S. 4900, the
``SBIR and STTR Extension Act of 2022'' to reauthorize the
SBIR, STTR, and pilot programs for three years (through 9/30/
2025) to provide stability and certainty for the small
businesses and the agencies that rely on their technology. It
also expands federal research security practices within the
SBIR and STTR programs to protect against technology theft by
malign foreign governments, requires the Department of Defense
to increase the use of open topic solicitations to attract new
ideas and new firms, raises the performance standards for more
experienced firms while preserving the golden standard of
competition based on merit-based, best science rather than
award caps or quotas, and requires new reports by the OIG and
GAO. President Biden signed the bill into law on September 30,
2022, P.L. 117-183.
Subpart 13--Oversight of Labor and Workforce Policy
The Committee held hearings to analyze the workforce needs
of small businesses often through the lens of workforce
development programs. The Committee held a hearing on September
15, 2022, on the importance of apprenticeship and training
programs to assist small businesses in hiring and retaining
high-skilled workers, and held a hearing on March 31, 2022, on
how apprenticeships can be used to build a skilled workforce to
meet the needs of small businesses. The Committee also examined
innovations in community college programs to help retool the
American workforce. Also, the Committee held hearings on how
investments in infrastructure could help create millions of
good paying jobs for American workers.
On May 11, 2022, the Committee approved H.R. 7622, the
``Small Business Workforce Pipeline Act of 2022,'' and H.R.
7664, the ``Supporting Small Business and Career and Technical
Education Act of 2022.'' These two pieces of legislation will
help small firms attract and retain qualified workforces by
utilizing apprenticeships and career and technical education
programs. Both bills were approved by the House on June 8,
2022. Both bills were received in the Senate and referred to
the Committee on Small Business and Entrepreneurship on June 9,
2022.