Member Day Hearing on COVID-19 Response and Recovery, April 23, 2020 — House Committee on Small Business
- Date
- 2021-06-30
Summary
The printed record of the Member Day Hearing on COVID-19 Response and Recovery held April 23, 2020 by the Committee on Small Business of the U.S. House of Representatives, 116th Congress, published as Small Business Committee Document Number 116–080. Chairwoman Nydia M. Velázquez presided, and Members of Congress who are not on the committee testified for 2 minutes each on the Paycheck Protection Program and other CARES Act relief for small businesses. In her opening statement the Chairwoman cites an additional $310 billion for the program and states that at least 90 publicly traded companies got PPP loans. Ranking Member Steve Chabot urges more funding for the program. The appendix lists additional material for the record, including a PPP letter and written testimony from dozens of Representatives.
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MEMBER DAY HEARING ON COVID-19 RESPONSE AND RECOVERY: COMMITTEE ON SMALL BUSINESS HEARING BEFORE THE COMMITTEE ON SMALL BUSINESS UNITED STATES HOUSE OF REPRESENTATIVES ONE HUNDRED SIXTEENTH CONGRESS SECOND SESSION HEARING HELD APRIL 23, 2020 Small Business Committee Document Number 116–080 Available via the GPO Website: www.govinfo.gov U.S. GOVERNMENT PUBLISHING OFFICE SBD026 with DISTILLER VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 F:\DOCS\41291.TXT DEBBIE Congress.#13 WASHINGTON : 2021 41–291 HOUSE COMMITTEE ON SMALL BUSINESS NYDIA VELÁZQUEZ, New York, Chairwoman ABBY FINKENAUER, Iowa JARED GOLDEN, Maine ANDY KIM, New Jersey JASON CROW, Colorado SHARICE DAVIDS, Kansas KWEISI MFUME, Maryland JUDY CHU, California DWIGHT EVANS, Pennsylvania BRAD SCHNEIDER, Illinois ADRIANO ESPAILLAT, New York ANTONIO DELGADO, New York CHRISSY HOULAHAN, Pennsylvania ANGIE CRAIG, Minnesota STEVE CHABOT, Ohio, Ranking Member AUMUA AMATA COLEMAN RADEWAGEN, American Samoa, Vice Ranking Member TROY BALDERSON, Ohio KEVIN HERN, Oklahoma JIM HAGEDORN, Minnesota PETE STAUBER, Minnesota TIM BURCHETT, Tennessee ROSS SPANO, Florida JOHN JOYCE, Pennsylvania DAN BISHOP, North Carolina MELISSA JUNG, Majority Staff Director JUSTIN PELLETIER, Majority Deputy Staff Director and Chief Counsel KEVIN FITZPATRICK, Staff Director SBD026 with DISTILLER (II) VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 F:\DOCS\41291.TXT DEBBIE CONTENTS OPENING STATEMENTS Page Nydia Velázquez ...................................................................................................... Hon. Steve Chabot ................................................................................................... 1 2 WITNESSES Hon. Ed Case ........................................................................................................... Hon. Andy Barr ........................................................................................................ Hon. Gilbert Ray Cisneros, Jr. ............................................................................... Hon. Gus M. Bilirakis ............................................................................................. Hon. Veronica Escobar ............................................................................................ Hon. Ted Budd ......................................................................................................... Hon. Jimmy Gomez ................................................................................................. Hon. Mark E. Amodei .............................................................................................. Hon. Susie Lee ......................................................................................................... Hon. Bradley Byrne ................................................................................................. Hon. Michael C. Burgess ......................................................................................... Hon. Earl L. ‘‘Buddy’’ Carter .................................................................................. Hon. Elaine G. Luria ............................................................................................... Hon. John R. Curtis ................................................................................................. Hon. Derek Kilmer .................................................................................................. Hon. Greg Pence ...................................................................................................... Hon. Joe Neguse ...................................................................................................... Hon. Mike Johnson .................................................................................................. Hon. H. Morgan Griffith ......................................................................................... Hon. Tom Malinowski ............................................................................................. Hon. Dusty Johnson ................................................................................................ Hon. John Katko ...................................................................................................... Hon. Brian K. Fitzpatrick ....................................................................................... Hon. Kim Schrier ..................................................................................................... Hon. Dean Phillips .................................................................................................. Hon. Fred Keller ...................................................................................................... Hon. Adam B. Schiff ................................................................................................ Hon. David P. Roe ................................................................................................... Hon. Max Rose ......................................................................................................... Hon. Elissa Slotkin .................................................................................................. Hon. Mikie Sherrill .................................................................................................. Hon. Steve Womack ................................................................................................. Hon. Steven Horsford .............................................................................................. Hon. Scott R. Tipton ................................................................................................ Hon. Haley M. Stevens ............................................................................................ Hon. Chip Roy .......................................................................................................... Hon. Mike Thompson .............................................................................................. Hon. Glenn Thompson ............................................................................................. Hon. Abigail Davis Spanberger .............................................................................. 14 14 15 16 17 18 19 20 20 21 22 22 23 24 24 25 26 27 28 28 29 30 31 32 33 34 34 35 36 37 38 38 39 40 41 41 42 43 44 APPENDIX Prepared Statements: None. Questions for the Record: None. Answers for the Record: None. Additional Material for the Record: PPP Letter ......................................................................................................... SBD026 with DISTILLER (III) VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00003 Fmt 5904 Sfmt 0486 F:\DOCS\41291.TXT DEBBIE 47 IV Page SBD026 with DISTILLER Additional Material for the Record—Continued State of North Carolina Department of Insurance ........................................ Rep. Bunn Testimony ....................................................................................... Rep. Ted Budd Testimony ................................................................................ Rep. Deb Haaland Testimony .......................................................................... Rep. Derek Kilmer Testimony ......................................................................... Rep. Tom Malinowski Testimony .................................................................... Rep. Dusty Johnson Testimony ....................................................................... Rep. Joe Neguse Testimony ............................................................................. Rep. Tom Rice Testimony ................................................................................ Rep. Jamie Raskin Testimony ......................................................................... Rep. Val Butler Demings ................................................................................. Rep. Albio Sires Testimony .............................................................................. Rep. David Joyce Testimony ............................................................................ Rep. Rosa DeLauro Testimony ........................................................................ Rep. Roger Marshall Testimony ...................................................................... Rep. Jerrold Nadler Testimony ....................................................................... Rep. Debbie Mucarsel-Powell Testimony ........................................................ Rep. Debbie Mucarsel-Powell Additional Material CARES 2.0 Priorities ... Rep. Zoe Lofgren Testimony ............................................................................ Rep. Dan Bishop Testimomny ......................................................................... Rep. Guy Reschenthaler Testimony ................................................................ Rep. Abigail Spanberger Testimony ................................................................ Rep. Ted Budd Testimony ................................................................................ Rep. Kevin Hern Testimony ............................................................................ Rep. Peter Olson Testimony ............................................................................ Rep. Brian Fitzpatrick Testimony ................................................................... Rep. H. Morgan Griffith Testimony ................................................................ Rep. Jahana Hayes Testimony ........................................................................ Rep. Scott Peters Testimony ............................................................................ Rep. Ed Case Testimony .................................................................................. Rep. Gil Cisneros Testimony ........................................................................... Rep. Kathleen Rice Testimony ........................................................................ VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00004 Fmt 5904 Sfmt 0486 F:\DOCS\41291.TXT DEBBIE 52 53 55 57 58 60 61 63 65 67 69 71 72 74 78 80 82 84 88 89 91 93 95 97 101 102 104 107 111 114 116 117 MEMBER DAY HEARING ON COVID-19 RESPONSE AND RECOVERY THURSDAY, APRIL 23, 2020 HOUSE OF REPRESENTATIVES, COMMITTEE ON SMALL BUSINESS, Washington, DC. The committee met, pursuant to call, at 11:07 a.m., in Room 2359, Rayburn House Office Building, Hon. Nydia M. Velázquez [chairwoman of the Committee] presiding. Present: Representatives Velázquez, Finkenauer, Kim, Crow, Davids, Chu, Evans, Schneider, Espaillat, Houlahan, Craig, Chabot, Balderson, Stauber, Burchett, Spano, Joyce, and Bishop. Chairwoman VELÁZQUEZ. Good morning. The committee will come to order. I would like to thank everyone for joining us this morning, and I want to especially thank my colleagues for joining us today for the House Committee on Small Business Members’ Day hearing on the response to COVID-19. We have a hard stop at 1 p.m. We will move as quickly as we can, but should we not be able to accommodate every Member in person today, we will be accepting statements for the record until Thursday, April 30. Today is a chance for the committee to hear directly from our fellow Members of Congress about their thoughts on the COVID-19 response and priorities for the next package as it relates to small business issues within the committee’s jurisdiction. I would like to remind everyone that we are practicing social distancing and taking other precautions for all in attendance. I appreciate your cooperation in this effort so that we can protect ourselves and our hardworking staff. Three weeks ago, when Congress created the Paycheck Protection Program, we did so with the goal of providing a lifeline to small businesses. The program experienced unprecedented demand and has proven successful, helping more than 1.6 million entities support their employees. As a result, we will be replenishing that program later today. While we are moving quickly to provide an additional $310 billion, we still have an obligation to examine what is and is not working, as well as gain a better understanding of how to best move forward if the PPP must be extended again. There have been many red flags that suggest the CARES Act has not been implemented as Congress intended. The piecemeal guidance and fact sheets Treasury and SBA have released are, in many instances, confusing, contradictory, and provide little clarity to the SBD026 with DISTILLER (1) VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 2 SBD026 with DISTILLER millions of small businesses that are in desperate need of assistance. We are also aware that at least 90 publicly traded companies got PPP loans, and, in some cases, more than one. This is unacceptable, and I have called on the SBA to use its administrative authority now to prevent further misuse. Congress will also be exploring ways to address this breach of the public trust in the next relief package. As such, should we need to allocate more money for these programs to meet demand beyond today’s infusion, we must pair that with commonsense reforms to the program that will ensure we are truly helping all American small businesses. Thank you again to all the Members for being with us today. I look forward to our discussion and to working on your ideas to provide the best opportunity for survival and recovery for small businesses in all of our communities across this country. I now would like to yield to the Ranking Member, Mr. Chabot, for his opening statement. Mr. CHABOT. Thank you, Madam Chair, and thank you for holding this important hearing. Before I begin, I want to mention that the Chairwoman has been in our thoughts and prayers over these last few weeks. We wish you nothing but the best as you continue to recover. Small businesses, entrepreneurs, and startups play a critical role within the American economy. Not only do they employ half of the nation’s workers, but they are also responsible for creating two out of every three of the new jobs in this nation. In order to measure the health of the nation’s economy, one needs only to take the pulse of Main Street America. Unfortunately, COVID-19 has devastated small businesses and their employees. As a response, Congress created the Paycheck Protection Program to provide assistance to as many small businesses as possible during this emergency period. They are a low interest loan that can be forgiven if used for payroll and other qualified expenses. Small businesses have a tool available to assist them as they try to weather this storm. Thus far, the program has experienced extremely high demand. Within a 2-week span, all the money within the Paycheck Protection Program was exhausted. I urge my colleagues to vote to inject more dollars into this program as quickly as possible. Yesterday, this Committee hosted a bipartisan call with the Small Business Administrator, Jovita Carranza. Committee members amplified issues facing their local small businesses directly to the leader of the SBA. Today, we will hear from other Members who have been fighting for their small businesses. I look forward to hearing their thoughts and their ideas on how the CARES Act relief programs have been implemented and suggestions on how Congress can improve them moving forward. The SBA moved quickly and stood up this brand new program in a week. While there have certainly been bumps in the road and more clarity is necessary, the SBA rose to the challenge of assisting the nation’s smallest firms when no other options were available. As Members of Congress, it is critically important that we work together to assist the nation’s small businesses, entrepreneurs, and VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00006 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 3 SBD026 with DISTILLER startups. Main Street businesses are counting on Federal assistance, so let’s deliver. I yield back. Chairwoman VELÁZQUEZ. Thank you, Mr. Chabot. The gentleman yields back. Due to the floor schedule today and the high demand for participation, we will do our best to accommodate all of the Members who wish to provide testimony. I would like to remind everyone that they will have 2 minutes to provide testimony, and I ask you stay within this timeframe to the best of your ability. Let’s get started. Let me welcome Congresswoman Abby Finkenauer, Chairwoman of the Subcommittee on Rural Development, Agriculture, Trade, and Entrepreneurship, from Iowa. Ms. FINKENAUER. Thank you, Madam Chair, and thank you to the members of the Committee here today. It is an honor to get to serve with you, and it is an honor to get to represent the folks of the First District in Iowa. I know this is a hard time for our small businesses and for our Americans all across our country, my State, and in my district. You know, it is something that we are all coming together here today trying to do more and making sure that our folks have what they need. What we do know is that we are likely, you know, as this continues, we are going to have to step up and continue to listen to the folks in our districts about what they are going through and what they need. And one of the stories I just wanted to quickly share here today is from a man in Monticello who has a sporting goods store. You know, he has six employees, and, with high school sports canceled for the spring, he is sitting on over $100,000 in uniforms and equipment he can’t sell. He is worried about his six employees, and if he is able to keep this store afloat. You know, this is why we are doing this stuff today. And here is the big thing for me when we looked at plussing up this program. We needed to make sure, and we did today, but we must do more to make sure that our community-based financial institutions also have those dollars to put out there into our communities. You see, this isn’t just about the big businesses that need millions of dollars to stay afloat. It is the ones who need $10,000, $5,000, $20,000, who have maybe 10 employees, 5 employees. And, in my district in particular, with the amount of credit unions and also small community banks, we need to make sure that they have what they need so this actually touches folks all across our country, and, again, specifically folks in my district. I am honored to be here with you guys today to continue to do more, and it will be our job to continue to listen to folks in our districts and get them what they need. And, with that, Madam Chair, I yield back. Chairwoman VELÁZQUEZ. The gentlelady yields back. Now the gentleman from Minnesota, Mr. Stauber, Ranking Member of the Subcommittee on Contracting and Infrastructure, is recognized for 2 minutes. Mr. STAUBER. Madam Chair, it is great to see you today, and I wish you all the best. VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00007 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 4 SBD026 with DISTILLER Chairwoman VELÁZQUEZ. Thank you. Mr. STAUBER. Ranking Member Chabot, thanks for all your work. Thank you for giving me the opportunity to testify before you today on behalf of the constituents of Minnesota’s Eighth Congressional District, and I know the problems that my constituents face during this pandemic are not unique. The whole country is in this together. But I would like to take this opportunity to share what Minnesotans have experienced, their struggles during this nationwide shutdown, and how I think we can come out of this more resilient, self-reliant, and stronger than ever. Economic injury disaster loans and the Paycheck Protection Program have been major lifelines for the small businesses of my district. However, as guidance for each program may come out in segments and continue to be forthcoming, many struggle to understand which program is best for them. Additionally, promises were made in the CARES Act that made small businesses believe they would receive their loans in a timely fashion. Instead, some have received a fraction of what they were promised, while many others received nothing at all. I know that the individuals at the SBA and the Treasury are working around the clock to effectively implement each part of the CARES Act and provide as much clarity as possible along the way, but my constituents are rightfully frustrated. As a small business owner myself, I know that financial uncertainty is completely destabilizing. Many businesses fear that by the time they get their loans or even get notice that their application has been processed and approved, they will have already shut their doors, and some for good. With this in mind, I have two priorities that we must take on as leaders of the Small Business Committee. The mom-and-pop shops are the recipients of the loans. The businesses with even as few as two or three employees matter just as much as those with a maximum of 500. And we also must prioritize getting the PPP and the EIDL loans out the door as quickly as possible. I am happy that we are passing legislation today to replenish the PPP program and these critical funds for our small businessmen and women. If there was ever a time to put aside partisanship, it is now. I stand ready and willing to assist any way I can to ensure that, as I said in the beginning of this statement, our Nation, together, we will come out stronger, more resilient, and more self-reliant than ever. We must recognize that small businesses are the engine of our economy. And I yield back, Madam Chair. Chairwoman VELÁZQUEZ. The gentleman yields back. The gentleman from New Jersey, Mr. Kim, Chairman of the Subcommittee on Economic Growth, Tax and Capital Access, is recognized for 2 minutes. Mr. KIM. Great. Thank you, Chairwoman, for this opportunity to talk about the critical issues our small business owners and the millions across our country who depend on small businesses for their livelihood, what they face during this crisis. VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00008 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 5 SBD026 with DISTILLER Every day my staff and I talk with small business owners in my district who have either had to close their doors or are close to doing so. We talk with neighbors fighting to get on unemployment, hoping the money in their account is enough to pay the next mortgage or rent check, hoping that they can keep food on the table. Later today, we will pass a bill to provide additional relief to those same people I hear from. All told, we have set aside twothirds of a trillion dollars aimed to help small business owners keep people on payroll and keep their doors open. If you have been a small business owner who has received this help, it has been a lifesaver. But we need to be clear, the Paycheck Protection Program has been flawed and does not provide the longterm solutions or certainty our small business owners deserve. From day one, we have seen the Paycheck Protection Program fail our small business owners. We have seen inconsistent and unclear rules that have made it difficult for lenders to get online and small businesses to get the support they need. And we have seen small businesses who want to do the right thing struggle to meet stringent eligibility and program requirements, including the unnecessary 75/25 formula and exclusion of many local nonprofits and associations at the front lines of this crisis. This simply doesn’t work for the small sectors and in some parts of this country. We have seen money go to big businesses disguised as small ones while mom-and-pop shops on Main Street wait for Congress to add more money to the pot. All of these things need to be fixed, and they need to be fixed now. But even if we fix the problems in the Paycheck Protection Program and fully fund it for months to come, it won’t solve the real problem that we face, which is that we have to get our country moving forward. We have to stand up a national testing program to be able to do so. And we set out a course on that, and I urge all of us to work together to make sure that that happens, that we test those, and we know who is sick and who is healthy, and open up our economy again. Thank you, and I yield back. Chairwoman VELÁZQUEZ. The gentleman yields back. Dr. Joyce from Pennsylvania, Ranking Member of the Subcommittee on Rural Development, Agriculture, Entrepreneurship, and Trade, is recognized for 2 minutes. Mr. JOYCE. Thank you, Madam Chairwoman. In this Committee, we often stress that small business is truly the backbone of our economy, and perhaps this has never been more evident than during this coronavirus pandemic, which we recognize is truly a public health and an economic crisis. The 13th District of Pennsylvania is home to many small businesses, all of which which have been significantly affected by the ongoing coronavirus outbreak as the government forced businesses to temporarily close their doors. Thanks to the resources of the 116th Congress and the CARES Act, nearly 70,000 small businesses in Pennsylvania were approved for Paycheck Protection Program loans to keep them afloat while we fight this invisible enemy. Unfortunately, far too many busi- VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00009 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 6 SBD026 with DISTILLER nesses in my district were shut out of the program when the funds ran dry last week. Additionally, initial confusion on size limitation and guidance that did not consider the unique business models of agricultural producers kept many farmers from accessing this relief. While I am pleased to see the progress that we have made to include farmers, more must be done to ensure the future of our agricultural producers and food supply chain. Over the past weeks, I have spoken with workers, small business owners, and farmers in my district who are truly counting on the Paycheck Protection Program. They are counting on Congress to help them weather this storm. And, even though our small businesses continue to face trial, there are many that have stepped up, from Guy Chemicals in Somerset County, to the Mason Dixon Distillery in Adams County. Small businesses have changed their course to provide hand sanitizer and other items needed by frontline responders. These men and women are not only the backbone of our economy, they are the hearts of our community. And Congress must continue to deliver on our promises for them. I thank you, Madam Chair, and I thank the Ranking Member, Mr. Chabot, for your leadership and for your continued support in these trying times, and I yield back the balance of my time. Chairwoman VELÁZQUEZ. The gentleman yields back. Now we recognize the gentleman from Colorado, Mr. Crow, Chairman of the Subcommittee on Innovation and Workforce Development. Mr. CROW. Madam Chairwoman, Ranking Member Chabot, thank you for convening this Member Day session of the Small Business Committee. I am honored to be here and serve beside both of you and all the other members during these unprecedented times. I have heard from hundreds of constituents for whom the Paycheck Protection Program and the EIDL grant and loan programs have been lifelines, but the shortages of these programs have both been well documented. So I am pleased that we are voting today to ensure that these programs have the funding that they need. I have also heard about how our Nation’s chambers of commerce and 501(c)(6) organizations desperately need assistance. Some of my local chambers have been forced to lay off staff, cut hours, and are facing other immense challenges in accomplishing their critical mission. So we have to make sure we are addressing that problem and providing funding to these 501(c)(6) organizations. I would like to highlight my draft legislation, the Small Business Credit Support Act, which will help business development companies invest more money in more small businesses under the Small Business Investment Company Program. My bill would increase the amount that they can invest in these SBICs. By expanding the SBIC Program, we can further incentivize Main Street to help Main Street during these critical times. Also, as millions of our businesses apply for and receive assistance from the Small Business Administration, we need to address the cybersecurity needs at the SBA, especially considering recent VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00010 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 7 SBD026 with DISTILLER developments that up to 8,000 EIDL borrowers may have had their personal information exploited from a cyber vulnerability. My bill, the Small Business Cyber Awareness Act, would require the SBA to report these breaches within 180 days and create a better infrastructure framework to move forward and address vulnerabilities. Finally, as we all know, oversight of important loan and grant programs is one of the most important roles of this Committee. We have all been very concerned about recent reports of larger, publicly traded companies using programs intended for our Nation’s small businesses. So I look forward to working with all the members of this Committee to addressing the misuse of these relief programs and ensure that transparency and accountability are hallmarks of our Nation’s response to this crisis and Congress’ actions going forward. Thank you again for your time this morning. I look forward to working with you on efforts to both protect our businesses and expand investment in our Nation’s small businesses. I yield back. Chairwoman VELÁZQUEZ. The gentleman yields back. Now we recognize the gentleman from North Carolina, Mr. Bishop, for 2 minutes. Mr. BISHOP. Thank you, Madam Chairman. Chairwoman Velázquez, Ranking Member Chabot, and fellow Committee members, thank you for taking the time to hold this hearing today. I wish we were meeting under different circumstances, as no one could have anticipated the devastation that this virus has caused to the American people, especially small business owners and their employees. Last month, Congress came together and reassured small business by providing necessary relief through the Paycheck Protection Program. Though this program is not perfect, it has helped over 39,000 small businesses receive over $8 billion of relief in North Carolina. As the coronavirus forced Congress to stay home, I had the opportunity to responsibly visit Hornwood, Incorporated, which is a specialty textile manufacturer and the largest employer in Anson County, North Carolina. In order to fulfill their civic duty, Hornwood has begun the process of manufacturing PPE for frontline workers. When PPP applications first went online, Hornwood immediately filed an application to receive a loan. Due to a snafu in the process, they were unable to receive a loan when the funding ran out on April 16, so it is good that Congress, albeit tardily, is back in Washington to provide funding for this program so that small businesses like Hornwood can receive this critical funding. The Paycheck Protection Program is an emergency program, and, in my opinion, everyone involved is working to ensure that small businesses survive this crisis. However, the easiest way to address this concern is to begin the process of safely reopening the economy. My biggest observation is that the Federal Government cannot provide sufficient relief to substitute for a free and open economy. We all know that this debate is raging in every corner of our Na- VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00011 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 8 SBD026 with DISTILLER tion, and I will continue to push for data transparency so leaders at all levels of government can begin to make educated decisions. However, we are gathered here today to discuss how this Committee can work to provide needed relief to small businesses. I would like to commend leaders throughout the country for stepping up to the plate and working with the SBA and Treasury to serve as conduits for the Paycheck Protection Program. Lenders did not ask for this task, but dutifully stepped up in this time of need. Lenders have been able to process the loans in record time and better than any government agency. Thank you, Madam Chairwoman. My time has expired, and I yield back. Chairwoman VELÁZQUEZ. The gentleman’s time has expired. Now I would like to recognize the gentlelady from Kansas, Ms. Davids. Ms. DAVIDS. Thank you, Chairwoman Velázquez and Ranking Member Chabot, for holding this Member Day hearing on the COVID-19 response and recovery. I have heard firsthand how the coronavirus is impacting Kansas small businesses and the livelihoods of my constituents, and I am glad to be able to share those priorities today. Small businesses are the backbone of our economy, and no place is that truer than the Kansas Third Congressional District I am so proud to represent. Failing to support our small businesses through this crisis would have enormous and devastating consequences. And, while incredibly important, the State and local stay-at-home orders are definitely creating tremendous challenges for small business owners and employees. There are many challenges and fixes that we need to incorporate into the Emergency Injury Disaster Loan, or EIDL, program and the Paycheck Protection Program. First and foremost, we need more money for these programs now, and I am glad that the House is voting today to increase that funding, but it is simply not enough. Congress must pass H.R. 6506, the Paycheck Protection Program Extension Act, which I am a cosponsor of, and would provide $900 billion in additional PPP funding. We have to make sure that the assistance is going to those who need it most, not just big corporations and the well connected. It is essential that the PPP and EIDL loans make it into the hands of minority, women, and veteran owned businesses. I am encouraged that the PPP Increase Act, which the House will vote on today, sets aside $60 billion for small and medium lenders, credit unions, and community development financial institutions, which are more likely to work with smaller and less-advantaged businesses. It is also critical that the congressional intent is followed in implementation of these programs. For example, in creating the PPP, Congress expanded program eligibility to include all tribal enterprises with fewer than 500 employees. However, the SBA and Treasury severely limited and essentially excluded tribal enterprises, especially tribal gaming. Tribally owned gaming operations provide important job opportunities in their areas and invaluable support to tribal governments, VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00012 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 9 SBD026 with DISTILLER who, in turn, provide housing, healthcare, and other services for their members. That is why I led a letter with 37 of my House and Senate colleagues from both sides of the aisle expressing our concerns and frustration on that. I spoke with Administrator Carranza about this. I am glad that we are making progress on some of these issues, but a lot more work is necessary, and I am looking forward to working with all of you on those issues. Thank you, and I yield back. Chairwoman VELÁZQUEZ. The gentlelady yields back. Now we recognize the gentlelady from California, Ms. Chu, Chairwoman of the Subcommittee on Investigations, Oversight and Regulations, for 2 minutes. Ms. CHU. Thank you, Chairwoman Velázquez, for calling this hearing in response to the COVID-19 pandemic. Today, Congress will vote to extend funding for both the Paycheck Protection Program and the Economic Injury Disaster Loan and Grant Program. In a great step forward, this bill includes a $60 billion set-aside in lending authority specifically for small community lenders in the PPP that will truly serve small businesses. But, by doing this, we address the banks’ behavior that made such a set-aside necessary in the first place. For example, my constituent Yuan owns an auto repair shop and has both a business checking account with Bank of America and a credit card with JPMorgan Chase. Despite these longstanding relationships, both of these banks refused to accept Yuan’s application for a PPP loan. But, with this set-aside, this will change. But PPP must also be improved. It must be improved with translations for immigrant entrepreneurs. It must meet the needs of our independent restaurants, which have no assurances that they will be permitted to legally reopen before the end of the 8-week PPP loan period. Under the current structure, these businesses risk exhausting their PPP funds and being forced to lay off their employees even before they can legally and safely reopen. It must be improved by extending eligibility for PPP to 501(c)(5) nonprofit labor unions to ensure that workers have a seat at the table. And it must be improved by addressing the unique needs of the self-employed, like many of those working in the creative industries. SBA’s regulations limiting EIDL emergency grants to $1,000 per employee and requiring that 75 percent of loan forgiveness applies to payroll costs do not account for self-employed workers who may spend as much or more on expenses like health insurance and rent as they do on their salaries. Thank you, and I look forward to continuing work to improve these programs. Chairwoman VELÁZQUEZ. The gentlelady yields back. Now we recognize the gentleman from Pennsylvania, Mr. Evans, Vice Chair of the Committee. Mr. EVANS. Thank you, Madam Chairperson, and I thank the Ranking Member also. As my colleagues have said, this is an unprecedented time. This pandemic is a true test of our resilience as a Nation. Small busi- VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00013 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 10 SBD026 with DISTILLER ness has been devastated. However, my office has heard that many local businesses are unable to access these needed programs. This is greatly concerning. It is essential that the SBA program fulfill the objective of Congress to help small businesses who cannot survive without these loans. News that large restaurant chains received $20 million in PPP loans has eroded the public trust and confidence in these programs and government. While many of us are wearing masks, we need the SBA to be transparent with taxpayers’ dollars. In addition to thinking about what small business needs right now, it is imperative to think about how our operation in the future. Social distancing will entirely be required for the immediate future. Consequently, Temple Small Business Development Center in Philadelphia is creating two new business training centers. The first is the Center for Hospitality Resilience, which will instruct small businesses about new regulations that affect the food, hotel, and the event industry. The second is the Center of Digital Transformation for Small Businesses. The center will help small businesses transition to ecommerce, which is likely becoming the main source of revenue for many businesses. It is crucial that we help small businesses not only get through this immediate crisis, but we also assist them in preparing for the future. Thank you, Madam Chair, and I yield back the balance of my time. Chairwoman VELÁZQUEZ. The gentleman yields back. Now we recognize the gentleman from Illinois, Mr. Schneider, for 2 minutes. Mr. SCHNEIDER. Thank you, Madam Chair, for holding this hearing. I am so greatly appreciative of your leadership on this Committee, especially at this difficult time. And I also want to make a special call out to your staff. The Committee staff has just been extraordinary through this entire crisis. I am grateful we are having this hearing today as well. The 30 million U.S. small businesses employing 55 percent of our American workforce is the lifeblood of our economy. They are also the heartbeat of our local communities. From urban neighborhoods to suburban villages and rural towns across the country, they make our Nation work. From the start of this crisis, this Committee has stood up for small businesses in every COVID relief bill, starting with the first one on March 4. We will do so again today, adding additional funds for both PPP and the EIDL loans. Yesterday, we had a bipartisan call with SBA Administrator Carranza. On that call, I stressed the need for the SBA to provide applicants to the EIDL program with an update on the status of their application. Many of my constituents applied for this program weeks ago, some on the very first day of eligibility, and have yet to hear back. These business owners are making the hard decisions today about the future of their businesses and need to be able to plan their long-term financial outlook. They deserve to know whether VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00014 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 11 SBD026 with DISTILLER they can rely on the EIDL program as a resource. We deserve answers. On our call with the SBA Administrator, I also stressed the critical need for the administration to provide lenders and borrowers with clear, updated guidance about how the PPP loans are being disbursed. The Administrator did not instill confidence that the SBA is prepared for the next round of PPP funds, which is why the work of this Committee is so critical. It is our responsibility to hold the administration accountable for making proper use of the emergency funding Congress has provided. I look forward to working with my colleagues on and off this Committee to exercise the proper oversight of the SBA. We must make sure the SBA is following congressional intent and get this funding to the small businesses that so desperately need it. Thank you again, Madam Chair. I yield back. Chairwoman VELÁZQUEZ. The gentleman yields back. Now we recognize the gentlelady from Pennsylvania, Ms. Houlahan, for 2 minutes. Ms. HOULAHAN. Thank you, and I am very grateful to be here and to be in service with all of you at this very critical time. It has never been more evident to me and I think to all of us about this critical committee’s responsibility and that the work that we do here is so essential, that we cannot simply afford to be partisan at this time. I am also very grateful, as Mr. Schneider is, to you and to your staff. You have conducted yourself with enormous professionalism at this very difficult time. I have spent the last weeks listening to our community, holding virtual townhalls with small businesses all over the region, and spent time in food banks, seeing the real trauma that this is causing. The pain and worry in our communities was palatable. I am grateful that we have replenished many of our small business programs, but I deeply worry that it will be drained within days and weeks again. I am grateful that this program now allows for agricultural businesses to be included, but I look forward, as many of you do, to when all nonprofits will also be included. And I am grateful that we have carved out part of the PPP to include community lenders and to be able to be directed to our smallest of small businesses. I am also grateful that this bill provides for our hospitals and for testing. These small businesses and small business programs are meant to be emergency programs and are meant to make sure that we are able to address the situation for as long as it exists. But this situation will exist as long as the virus is with us, and we absolutely need to make sure we have a robust testing system developed, a nationwide robust testing system developed, to be able to return ourselves and our communities to normalcy. And this requires, I believe also, our legislation to be conducted with triggering mechanisms to establish for future opportunities for funding these programs if and when they become necessary. I believe that we need to not continuously have to reauthorize what is clearly a lifeline for our small businesses until such time as we are able to get out of this pandemic. VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00015 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 12 SBD026 with DISTILLER I look forward to continuing to work with this Committee and the body to protect and defend this Nation and our small businesses, and I yield back, Madam Chair. Chairwoman VELÁZQUEZ. The gentlelady yields back. Now we recognize the gentleman from Florida, Mr. Spano, for 2 minutes. Mr. SPANO. Thank you, Madam Chair, and I don’t have any planned comments. I just would like to say I appreciate your leadership during this process. And I am excited, although the circumstances surrounding all that the Nation has been through these last 2 months isn’t anything any of us would have asked for, it is an honor to and a humbling privilege to be able to serve on a Committee that had so much to do with the solutions, I think, economically to getting our Nation back on track. So I look forward to your continued leadership, and it is an honor to serve with you. Thank you, Madam Chair. Chairwoman VELÁZQUEZ. Thank you. The gentleman yields back. Now we recognize the gentlelady from Minnesota, Ms. Craig, for 2 minutes. Ms. CRAIG. Thank you so much, Chairwoman and Ranking Member, and to my colleagues on the Small Business Committee. I am honored to serve on the Small Business Committee during such a critical time in our Nation’s history and appreciate all of the work you have been doing to help return our Main Streets to prosperity. I appreciate the opportunity to come before you today to share my district’s experience with the Paycheck Protection Program and the Economic Injury Disaster Loan Program. I have spoken with my team, and I have worked to help many, many small businesses across the district. Whether it is a florist in Apple Valley or the Cannon River Winery, I have heard numerous times that the implementation of the PPP has been flawed, and small businesses are waiting far too long to get the relief they urgently need. I realize we are facing unprecedented times and that the SBA is working hard, but it must do better. For every success story that is shared with my office, at least a dozen people reach out saying that they have been unable to successfully apply for a loan. These stories are heartbreaking. Constituents also report receiving far less money than was promised through the EIDL program, and we must fix that. I recently had a call with a number of restaurant owners in my district, and they uniformly noted that the PPP as it stands will not allow their businesses the flexibility to fully achieve the goals that we set for the program. Fixing this and providing additional support for nonprofits and cooperatives must be resolved in future bills. We must also ensure that we are holding the SBA accountable through oversight that ensures that big corporations are not crowding out the Main Street businesses that this program was intended to help. This means getting more data on loan applications and issuance, including breakdowns by demographics and by congressional districts. VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00016 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 13 SBD026 with DISTILLER I am grateful that we will pass a bill today to add additional funding to the Paycheck Protection Program and the EIDL program, but our work in this Committee going forward must ensure that both the amount and the flexibility of these funds are really helpful to the small businesses that need it the most. I know we are all here to help protect each of the American Dreams represented by the small businesses in our districts. I look forward to our continued work together. Thank you, and I yield back. Chairwoman VELÁZQUEZ. The gentlelady yields back. Now we recognize the gentleman from New York, Mr. Espaillat, for 2 minutes. Mr. ESPAILLAT. Thank you, Madam Chair. Small businesses on Main Street are the strength of our communities, and the COVID-19 pandemic has made that clear when we see all the storefronts close down and hear from our constituents about the incredible volume of aid they need and deserve. These small businesses define the identity and character of our communities. For the past two and a half weeks, I have engaged with small businesses in Harlem, East Harlem, Washington Heights, Inwood, and the Northwest Bronx about the great difficulties they have been encountering accessing the assistance provided by the CARES Act. I can literally count in one hand, Madam Chair, in one hand, the number of small businesses in my district who have received assistance. These thousands of small businesses that were supposed to be helped by this legislation are not getting any help. But many of them, many of them have not seen a dime. They got tricked. They got led astray. They got bamboozled. And they are, respectfully, Madam Chair, mad as hell. I am mad as hell. This is a major problem. It is absolutely not how any of us intended for this program to work. The actors who perpetrated this must be investigated, and they must face consequences. We need to make sure that Main Street is bailed out. Just like Wall Street got bailed out, Main Street must be bailed out right now. I am glad that the relief package we will vote on today will set aside funds for mission-based lenders and insured depository institutions, especially in New York City, where the credit union, minority depository institutions, micro loan lenders, and other small insured depository institutions involved in this relief program, institutions like Banco Popular, Carver Federal Savings, Harlem Entrepreneurial Fund, Neighborhood Trust Federal Credit Union, and the Upper Manhattan Empowerment Zone are used and trusted by our constituents. Thank you, Madam Chair. We must do better. We must bail out Main Street. Thank you, Madam Chair. I yield back. Chairwoman VELÁZQUEZ. The gentleman yields back. The gentleman from Hawaii, Mr. Case, is recognized for 2 minutes. VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00017 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 14 STATEMENT OF THE HON. ED CASE, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF HAWAII Mr. CASE. Madam Chairwoman and members of the Committee, as a former Committee member, I am grateful to be able to share the profound impact of the COVID-19 pandemic on Hawaii’s small businesses. Small businesses are the lifeblood of my State. Hawaii has 132,640 small businesses. That is about one business for every 11 people. They are also smaller than those of most other States. A vast majority employ less than 100 people, with the average just 12 people. Yet small businesses employ a majority of the Hawaii workforce. Our small businesses are also the most diverse in the Nation, 62.6 percent are minority owned, by far the highest. More than a quarter of Native Hawaiian and other Pacific Islander-owned businesses in our country are found in Hawaii. As Hawaii’s largest industry is tourism and hospitality, with international and domestic travel dried up and stay-at-home orders and travel restrictions at home, our economy and small businesses are especially hard hit by COVID-19. Just weeks ago, our unemployment rate was one of the Nation’s lowest at just 2.6 percent. Today, well more than one-third of our labor force has filed unemployment claims, and our small businesses are hanging by a thread if they are not already closed. This committee’s incredibly hard work has been a lifeline to them, just as throughout our Nation. Especially important are your efforts to ensure the immigrant and underbanked communities are not left behind. Equally important are the small businesses of the tourism industry. They were some of the first impacted by this pandemic, and they will be some of the last to recover. As we continue our efforts together, I urge this Committee to consider Hawaii’s unique needs and additional assistance. While existing programs provide temporary relief, greater assistance will be needed to keep these small businesses and a very significant portion of my Hawaii’s economy alive until our State can fully reopen for business. I continue to stand ready to assist and incredibly appreciate your efforts. Mahalo. Chairwoman VELÁZQUEZ. The gentleman yields back. Now we recognize the gentleman from Kentucky, Mr. Barr, for 2 minutes. STATEMENT OF THE HON. ANDY BARR, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF KENTUCKY SBD026 with DISTILLER Mr. BARR. Chairwoman Velázquez, Ranking Member Chabot, thank you for holding today’s hearing. As a member of the Financial Services Committee, I was closely involved in the development of the CARES Act and, during this crisis, have been in frequent contact with lenders supporting small businesses as Treasury and SBA implement the bill. I would like to address three concerns. First, SBA’s breach of its statutory obligations to its lender partners. Second, overreach by VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00018 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 15 the SBA in its eligibility rules. And, third, the need to clarify that new owners of preexisting businesses qualify. First, Congress deputized lenders to deliver small business aid, and the CARES Act mandates that the SBA pay lenders’ processing fees within 5 days of loan distribution. Many lenders already distributed funds to borrowers, yet Treasury and the SBA have not provided guidance on how lenders receive these fees. Lenders worked around the clock to process loans and help their customers. One community bank in Kentucky told me that their employees worked 24 hours a day in three 8-hour shifts with supervisors working 16- to 18-hour days. They only took off one day: Easter Sunday. Their story is not unique. It is shared by small community lenders across the country. These lenders must be compensated for their work as directed by the statute. Just as Treasury and the SBA called on lenders to quickly get money out to small businesses, Treasury and the SBA should not hold up their end of the deal. Second, the SBA’s reliance on the existing 7(a) eligibility criteria boxes out businesses that Congress did not intend to exclude. Horse racing has a long and storied history in Kentucky, and horse tracks provide significant downstream economic benefits to their communities, but some horse tracks are ineligible for PPP loans. I expressed these concerns to Secretary Mnuchin and continue to voice my support for local horse tracks. I am hopeful that the SBA will align its guidance with congressional intent and modify this eligibility criteria. Finally, one of my constituents was denied a PPP loan because he purchased the business after February 15. The CARES Act provides only that the borrower must have been operational prior to February 15 to qualify. The intent of Congress is that the business itself must have been a going concern and operational prior to February 15 regardless of the ownership at the time. Despite repeated requests for a FAQ from Treasury to fix this, we still have no official clarification. So I appreciate the opportunity to testify about these three issues and appreciate the Chairwoman’s oversight. I yield back. Chairwoman VELÁZQUEZ. Thank you. The gentleman yields back. The gentleman from California, Mr. Cisneros, is recognized for 2 minutes. STATEMENT OF THE HON. GILBERT RAY CISNEROS, JR., A REPRESENTATIVE IN CONGRESS FROM THE STATE OF CALIFORNIA SBD026 with DISTILLER Mr. CISNEROS. Madam Chairwoman, members of the House Committee on Small Business, thank you for allowing me this opportunity to speak on behalf of the small businesses in my district who are dealing with the economic consequences of the COVID-19 pandemic. At this moment of incredible economic uncertainty, we must work together to help our small businesses survive this crisis. The Payroll Protection Program and expanded eligibility for the Economic Injury Disaster Loan are well intentioned and a strong first VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00019 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 16 step. However, I have heard from many in my district frustrated with the rollout of these economic relief programs, including how limited access often resulted in big banks prioritizing large companies. I urge the Committee to continue to provide strong oversight. Additionally, current eligibility requirements prevent organizations that are trusted by small businesses from receiving Federal support. This includes local chambers of commerce, like in Brea and Chino Hills, and trade associations like the National Association of Hispanic Real Estate Professionals that provide targeted help to minority and underserved businesses. I urge the Committee to expand PPP eligibility to include 501(c)(5)s and 501(c)(6)s. These organizations ensure that economic uncertainty does not undermine their ability to serve. Further, I have serious concerns that minority, women, and veteran owned small businesses are at increased risk during this crisis. Business owners of color have historically faced greater barriers in accessing capital, especially small business owners with English as a second language. I urge the Committee to direct lenders to prioritize PPP loans for small businesses owned by minorities, women, veterans, and those in underserved and rural markets in the next stimulus package, and ensure information is distributed in multiple languages to reach all audiences. Finally, I urge the Committee to advance legislation that will provide more certainty to our small businesses. The initial PPP funding provider under CARES lasted less than 2 weeks. We need to establish automatic mechanisms, such as those included in the bipartisan PPP Extension Act introduced by Rep. Kilmer, so that we do not keep lurching from crisis to crisis. Now is the time for swift action for small businesses. My district is home to many small businesses from a diverse range of industries. And, with that, I thank you for this time to testify in front of the Committee. Chairwoman VELÁZQUEZ. The gentleman yields back. Now we recognize the gentleman from Florida, Mr. Bilirakis. STATEMENT OF THE HON. GUS M. BILIRAKIS, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF FLORIDA SBD026 with DISTILLER Mr. BILIRAKIS. Thank you, Madam Chair. I want to thank the Chairwoman for allowing us to do this. I want to thank the Committee as well for holding this Member Day hearing on the coronavirus crisis. Since the establishment of the Paycheck Protection Program, I have heard from countless constituents, small business constituents and owners, that the application process was difficult to navigate and that many lenders were not receptive to their needs. Meanwhile, we discover that many well-known business chains received millions of dollars in program funds and that those applications may have been prioritized by lending institutions. In response to these revelations, I submitted to Committee and leadership a letter asking that any future funding of PPP loans contain a set-aside specifically for the truly small business, the mom and pops of our Nation. VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00020 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 17 I was pleased to see my recommendation take form in today’s funding package that set aside funds for small community banks and credit unions, which have a good track record locally of getting money into the hands of the businesses that need it most. But as we move forward we need to find better ways to ensure our local businesses get the help they need during this time or any future crisis. I am working on legislation that would ensure that a portion of the PPP funds or funds from any future similar program go toward truly small businesses. Our Nation’s family-owned businesses and sole proprietors shouldn’t have to compete with national or international chains during this time of crisis. They are in our communities. They are for our communities. They engage in local charities and teach our kids leadership lessons. Let us be there for them. They have been there for us, Madam Chair, for so many years. And I appreciate it very much. Chairwoman VELÁZQUEZ. Thank you. Mr. BILIRAKIS. I yield back. Chairwoman VELÁZQUEZ. The gentleman yields back. Now we recognize the gentlelady from Texas, Ms. Escobar, for 2 minutes. STATEMENT OF THE HON. VERONICA ESCOBAR, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF TEXAS SBD026 with DISTILLER Ms. ESCOBAR. Thank you, Chairwoman Velázquez and Ranking Member Chabot, for giving me the opportunity to share what is happening to small businesses in my community of El Paso. Over the past month, I have been holding calls with El Pasoans, including a small business telephone townhall, to gain a deeper understanding of what is happening on the ground as we confront the coronavirus pandemic. The Paycheck Protection Program, or PPP, was established as a quick infusion of capital for small businesses that have been directly affected by the pandemic. However, I have heard from many El Pasoans that have yet to receive their loans from the Small Business Administration even after being approved. Additionally, those who have applications pending say they are experiencing a lack of communication regarding their application status. As the next round of PPP funding is approved today by the House, the Small Business Administration needs to ensure that funds are distributed in a timely manner and provide effective communication throughout the process. Another issue many business owners have raised is the lack of flexibility; for example, the 75-to-25 spending ratio that the Small Business Administration requires for PPP loans. Under this rule, 75 percent of the loan must go toward payroll costs, while the other 25 percent can go to other business expenses, like rent. This ratio simply doesn’t work for businesses that have small payrolls and larger business expenses. We should not be punishing businesses simply because they have fewer employees than others. The next round of coronavirus package should include a remedy for VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00021 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 18 the thousands of businesses who have applied for PPP loans but need flexibility. Finally, I know I am not alone when I say that it has been sickening to see that small businesses like those in El Paso have been placed in the back of the line and that large corporations and publicly traded companies have been put to the front of the line. Our small businesses are the backbone of our local economies, and leaving them out in the cold is simply unacceptable. Congress must impose stronger restrictions on who can receive PPP loans in future funding bills and conduct robust oversight over the program to ensure that the funding is flowing to those who are intended. Finally, Madam Chairwoman, I just want to say thank you for your incredible leadership during such an unprecedented crisis. We are all very grateful. I yield back. Chairwoman VELÁZQUEZ. Thank you. The gentlelady yields back. The gentleman from North Carolina, Mr. Budd, is recognized for 2 minutes. STATEMENT OF THE HON. TED BUDD, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NORTH CAROLINA SBD026 with DISTILLER Mr. BUDD. Thank you, Chairwoman Velázquez, Ranking Member Chabot, members of the Committee. Thank you for the opportunity to testify today. You know, small businesses employ 48 percent of the American workforce, and, as a small business owner myself, I know that these businesses are often tightly knit teams working together to provide services and products in their communities. And, when they are forced to make the agonizing decision to furlough or lay off workers, it feels like they are firing a member of their own family, because, many times, they are. What makes this all the more tragic is that the economic variables that are forcing their hand are totally beyond their control, and the situation is simply not their fault. That is why, today, I am going to vote to provide more than $300 billion in additional funding for the Paycheck Protection Program. This program has already given a lifeline to more than 30 million small businesses, and we need to keep up the momentum. With each passing day, the spread of the virus has slowed, but our knowledge of the virus has skyrocketed. Given those facts, we have to begin reopening the economy. Now, this can be accomplished while also listening to our medical experts and the President’s guidelines. I have spent weeks on the phone with small business owners across my district who don’t know how they are going to pay their workers if the economy remains indefinitely shut down. Since 43 percent of small businesses are considering permanently closing if this shutdown continues, we have to get the gears of our economy moving again before they crumble and devastate the entire American workforce for years to come. I look forward to working with you all to reopen our country and to kicking off a great American comeback. Thank you again for the opportunity to testify today, and I yield back. VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00022 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 19 Chairwoman VELÁZQUEZ. Thank you. The gentleman yields back, and the gentleman from California, Mr. Gomez, is recognized for 2 minutes. STATEMENT OF THE HON. JIMMY GOMEZ, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF CALIFORNIA SBD026 with DISTILLER Mr. GOMEZ. Chairwoman Velázquez, I want to thank you for having me here today. I urge the Committee to ensure small businesses and underserved communities receive the critical financial assistance they need and are not turned away by big banks. California’s 34th Congressional District, like others, have been devastated by the economic destruction caused by the coronavirus. It is home to many talented artists and creatives that allow our film, television, and theater industries to thrive. Like other freelancers and self-employed individuals, they are still waiting to apply for the pandemic unemployment insurance. And, if they did apply for a Paycheck Protection Program loan, they were last in line. My district is also home to vibrant small businesses and nonprofits predominantly owned by families, women, and people of color. For example, Corissa and Gabriel Hernandez are co-owners of Xelas Bar in Boyle Heights, a staple in the community. They applied for both the Economic Injury Disaster Loan and the Paycheck Protection Program over 3 weeks ago and have not received aid. They had to make difficult decisions to furlough their entire staff. They are one of many. Edmundo Rodriguez is the owner of Elsa’s Bakery based out of Highland Park. When he went in to apply for the paycheck protection loan, he was turned away from his business’ bank despite being a client for over 20 years. He didn’t even have a chance to apply before the funds ran out. He is one of many. It didn’t matter that they applied the first day these loans became available. Funds were exhausted before they made it into the pockets of those that needed it the most: brick and mortars. Meanwhile, national hotels and restaurant chains received millions. It is evident big banks are prioritizing larger loans rather than loans on a first come, first served basis. Community-based financial institutions rather than private banks are more committed to making capital accessible to the communities they serve. The Paycheck Protection Program and the Healthcare Enhancement Act take a step in the right direction by setting aside $60 billion for community-based lenders, such as small banks, credit unions, minority depository institutions, and community development financial institutions. But this isn’t enough. I urge the Committee for more funds to community financial institutions and then direct the U.S. Department of the Treasury to reveal who is getting the loans and who is not getting the loans. And, with that, I yield back. Chairwoman VELÁZQUEZ. The gentleman yields back. The gentleman from Nevada, Mr. Amodei, is recognized for 2 minutes. VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00023 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 20 STATEMENT OF THE HON. MARK E. AMODEI, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEVADA Mr. AMODEI. Thank you, Madam Chairman, and I appreciate the opportunity to appear in front of you today. The purpose of my accepting your invitation to testify falls under the lessons learned category. This is the first page of the CARES Act. It is a statute enacted by the House, enacted by the Senate, signed by the President. This is the first page of section 120.110 of the Code of Federal Regulations. It was not enacted by the House, it was not enacted by the Senate, and it was not signed by any President of the United States. It is a Clinton-era regulation that SBA promulgated to process SBA loans during regular times. Nothing wrong with it in and of itself until, in applying the CARES Act, the SBA issues guidance to financial institutions that says our internal regulations say you cannot apply for a loan. Now, the operative language in the CARES Act was any small business, which is defined as 500 or less employees. Those folks are all fully licensed, legally operating in their jurisdictions, paying people, sponsor Little League teams, healthcare, retirement, all those things. Many of them were shut out because of this situation and other ones where internal regs were used as a reason to say you cannot apply. My purpose in appearing here today is to suggest to this Committee that we need to basically make a differentiation between economic disaster, in terms of when we pass something that says we want to reach as many people as possible, and internal regulations, which are 25-plus years old that, quite frankly, bear no resemblance to the time that we are at today. So I would commend the Committee’s attention to this under lessons learned so that we don’t have people that are basically turned away who are otherwise very deserving under the specific language of the statute. Thank you, Madam Chair, and I yield back. Chairwoman VELÁZQUEZ. The gentleman yields back. The gentlelady, Ms. Lee from Nevada, is recognized for 2 minutes. STATEMENT OF THE HON. SUSIE LEE, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEVADA SBD026 with DISTILLER Mrs. LEE. Thank you, Madam Chair. I want to thank you and the Committee and your staff. I remember being on a phone call with your staff when we passed the CARES Act, and the attention in looking at all the possible scenarios really was commendable. I was so hopeful when we passed the CARES Act that we were going to get the needed aid to our companies, our small businesses. It was called the Paycheck Protection Act, as you are well aware, to protect the paychecks of all employees. What was not included in that act was an exception. Yet that exception is impacting my community quite significantly. I share the views of my colleague from Nevada, Mr. Amodei, as well. There was no statutory mandate excluding gaming from this bill, and yet, basically, Washington bureaucrats chose to apply a regulation that was not meant in this bill. VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00024 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 21 So I ask that this Committee—first of all, I ask that the administration finally do the right thing and address this administratively. And if they cannot do that or refuse to do it—which, by the way, it is sort of bizarre that the bigger part of the CARES package applied to our bigger gaming operators. They get to access that money. I am talking about the restaurant owners, the tavern owners, convenience store owners. These are all employees all deserving of protection. I know you understand that, and I thank you for all of your work. I ask that if the administration continues to make this exception—and, in my opinion, overreach—that this Committee will address this statutorily in the next round. So thank you so much for all of your help. Chairwoman VELÁZQUEZ. Thank you. Now we recognize Mr. Byrne from Alabama. STATEMENT OF THE HON. BRADLEY BYRNE, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF ALABAMA SBD026 with DISTILLER Mr. BYRNE. Thank you, Madam Chairman. I appreciate the opportunity to be here today to speak on behalf of the small business owners in my district. Let’s not forget that no matter how much money we pump out of Washington, it doesn’t take the place of the American economy. At some point, we have got to get back to work. I am pleased to know that 27,000 loans have been approved for the small businesses in the State of Alabama. Most of those are pretty small dollar loans. And I am grateful before the legislation for the House today that sets aside specific funding for small banks. Alabama community bankers have been doing yeoman’s work processing thousands of small dollar PPP loans, and I hope that all financial institutions will step up to the plate and make a commitment to do the same. Unfortunately, while we have seen some success with PPP, the evidence is clear that the SBA bureaucracy is failing our small businesses when it comes to the Economic Injury Disaster Loans, EIDL loans. The CARES Act promised $10,000 grants within 3 days of application was a lifeline for thousands of small businesses in my district. It was supposed to be there to help them get this money in this unprecedented time. In addition to the grantees, businesses are also in desperate need of the promised underlying loans to meet working capital needs, often to supplement their PPP loans. Yet many of my constituents who have received the EIDL loans and grants were disappointed in the small amounts that were provided. Most have simply heard nothing from the SBA and are unable to obtain answers over the telephone system, currently the only process to check on their loan status. As of April 20, the SBA reported it had only approved 183 EIDL loans for the entire State of Alabama, and it appears SBA has only processed at most a quarter of grant applications. The situation is totally unacceptable. Today I submit to the Committee a letter I sent to the SBA with 103 of our colleagues. We have asked SBA to brief all of us on the EIDL situation and provide answers that our constituents desperately need. Thank you again for the time today, and I yield back. Chairwoman VELÁZQUEZ. The gentleman yields back. Mr. Burgess from Texas, you are recognized for 2 minutes. VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00025 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 22 STATEMENT OF THE HON. MICHAEL C. BURGESS, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF TEXAS Mr. BURGESS. Thank you. Is that on now? Chairwoman VELÁZQUEZ. Yes. Mr. BURGESS. I thank the Chair, and I thank the members of the Committee for allowing me to testimony. This novel coronavirus has caused a public health crisis unlike anything seen in recent memory. It has not only infected hundreds and thousands of Americans; it has infected and affected our Nation’s economy. Temporarily shuttering businesses to social distance is correct, but it has left numerous small businesses struggling to survive. The Paycheck Protection Program and the Economic Injury Disaster Loan program are vital, and our Nation’s small businesses are the backbone of our economy, and they do need a lifeline during this time of crisis. Unfortunately, within the Paycheck Protection Program and the Economic Injury Disaster Loan Programs provided by the CARES Act excluded 501(c)(6) organizations, which includes our local chambers of commerce. Within the 26th District of Texas, chambers of commerce have literally worked around the clock to ensure that their members have access to needed resources. These organizations need support to be able to afford their payroll, their billing, and to provide essential services for their members. Ranking Member Chabot was good enough to join me on a call with my chambers locally earlier this month, and this very problem was delineated while he was on the call. I also request that the Committee work to relax the affiliation rules to allow more businesses with small local branches to be able to receive assistance. Some businesses employ between 10 and 20 people and operate like a small business but are unable to receive assistance because their parent company comprises more than 500 employees. During this time, we really do need to be practical to ensure that no hard-working Americans lose their job or their business. As this Congress moves to replenish small business funding, we must extend assistance to 501(c)(6) organizations and relax the affiliation rules. We cannot leave them behind. I thank you for your attention. I yield back. Chairwoman VELÁZQUEZ. The gentleman yields back. The gentleman from Georgia, Mr. Carter, is recognized. STATEMENT OF THE HON. EARL L. ‘‘BUDDY’’ CARTER, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF GEORGIA SBD026 with DISTILLER Mr. CARTER. Thank you, Madam Chair, and I thank the Committee for all the work that you have done. I know you have done yeoman’s work, and we appreciate it, especially in supporting the small businesses across the country. Its members, your members, have been a valuable resource as the Paycheck Protection Program has rolled out over the last month. It is nothing short of unprecedented to stand up a $349 billion program and send out funds to businesses in such a short period. While I am happy to report positive stories of businesses in my district, it is not without its flaws, and I would like to highlight some priorities for the program going forward. VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00026 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 23 First of all, in ensuring that funds reach our rural communities and agriculture producers, the initial confusions about who was eligible for the program, how loans should be calculated, or simply just submitting it to the SBA system led to a delay for many small businesses in receiving a loan or even missing out completely on the program’s first round of funding. One of the biggest confusions that has hindered applications has been around how 1099 independent contractors should be considered for PPP. The legislative text provides two options. Small businesses can include them in their applications, or 1099 workers can apply individually. However, the PPP FAQ says businesses should not include them. This must be clarified. The inability to get clear guidance for PPP loans and the justifiable fear of the program running out of funds has been some of the biggest frustrations my constituents have had over the past month. The provisions in today’s replenishment of PPP, that $60 billion be set aside for smaller lenders, will be helpful, but we need to ensure funds are truly going to smaller businesses, especially those in rural America. More should also be done to promote the PPP liquidity facility created by the Federal Reserve to encourage banks to provide PPP loans with zero risk. Lenders hitting their lending limit need to be aware of the resources. In closing, again, I want to thank this Committee for your work and for the opportunity to share my district’s experiences with PPP, and I want to reiterate the need for Congress to provide small businesses with certainty throughout this pandemic. Thank you, and I yield back. Chairwoman VELÁZQUEZ. The gentleman yields back. The gentlelady from Virginia, Ms. Luria, is recognized for 2 minutes. STATEMENT OF THE HON. ELAINE G. LURIA, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF VIRGINIA SBD026 with DISTILLER Mrs. LURIA. Thank you. Thank you, Madam Chair. Small businesses are the backbone of my district as the 115,000 people employed by small businesses account for more than half of all employees in the district. In this time of crisis, more work must be done to help all small businesses. Despite congressional intent, some business cannot benefit from the Payroll Protection Program. SBA must clarify the affiliation rules as it relates to PPP loans. For seasonal businesses, I recommend directing SBA to base loan eligibility on revenues from the same timeframe last year rather than from the prior 4 months. I also recommend allowing businesses to defer the start of the 8-week period during which expended loans can be forgiven until the date the businesses can reopen. To continue to ensure access for PPP funds, the Committee should incentivize banks to serve new customers or prohibit banks from restricting which businesses can apply for PPP loans. The Committee should also prohibit big banks from considering the size of a loan while processing applications so the smallest customers have an equal shot at funding. Businesses that can provide lower payroll costs as a share of overall operating costs should be allowed to use more of their loan for nonpayroll costs. This change would VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00027 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 24 be especially beneficial for the hospitality and aqua culture and fishery industries, which need to pay rent or other maintenance and overhead costs for their facilities and equipment. Additionally, the Committee should require the SBA to provide applicants with clear and transparent timelines for when the loan grants and applications will be processed. Finally, the Committee must help the SBA balance the quick distributions of funds with the program’s integrity. On behalf of the small businesses of coastal Virginia, thank you for this opportunity to share these priorities for the upcoming COVID-19 relief legislation, and I will submit my full testimony for the record. I yield back. Chairwoman VELÁZQUEZ. The gentlelady yields back. The gentleman from Utah, Mr. Curtis is now recognized. STATEMENT OF THE HON. JOHN R. CURTIS, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF UTAH Mr. CURTIS. Thank you, Madam Chair, for this opportunity, and members of the Committee. This is an unprecedented time in our Nation’s history, and many of our small businesses across the country are experiencing unimaginable losses due to no fault of their own. Small businesses are the backbone of the Utah economy. As a matter of fact, they make up over 90 percent of the businesses in my district. As a former small business owner, I have a soft spot in my heart for these courageous entrepreneurs who make constant sacrifices in order to grow our businesses and our economy. Ultimately, when this is all over, I don’t believe it will be government that saves us. I believe it will be our small businesses. The recently passed CARES Act pumps billions of dollars into Utah’s economy and small businesses, giving over 21,000 Utah businesses with under 500 employees critical help at an important time. Despite this, businesses throughout my community need more help and now. This bill we will vote on later today is critical to delivering resources to the parts of the country and economy that are currently on life support, and I am grateful to be here in Washington, D.C., with you and my colleagues to vote for this legislation to help our small business owners and employees. Thank you. I yield back the balance of my time. Chairwoman VELÁZQUEZ. The gentleman yields back. Mr. Kilmer from Washington, you are recognized for 2 minutes. STATEMENT OF THE HON. DEREK KILMER, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF WASHINGTON SBD026 with DISTILLER Mr. KILMER. Thank you, Madam Chair, and members of the Committee. Small businesses aren’t only the backbone of our economy, they are our economy’s star running back. They rack up the tough yards, and they score the touchdowns on Main Streets across this country, creating over 60 percent of new jobs in the private sector. As we work to contain the spread of coronavirus and save lives, our star running back, our small businesses, are getting tackled behind the line of scrimmage. I think the Federal Government should do some blocking and call some plays for them. And that is why the CARES Act included funding for loan programs to help small VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00028 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 25 businesses and their workers get through this crisis, including the Paycheck Protection Program to help employers keep their workers on the payroll, and I thank this Committee for its leadership on that program. But these programs have had a rocky rollout, and clearly, more funding is needed. I believe there is no time to lose because businesses are making decisions right now about whether to hunker down and weather through this or fold the tent. And that is why I introduced the bipartisan Paycheck Protection Program Extension Act to nearly triple the funding in the PPP and to extend the program’s duration. Our businesses need certainty and breathing room to help build demand. My bill will ensure that every qualified small business is able to access the critical assistance needed to retain their workforce and cover basic operating costs for the duration of the pandemic, including the ability to get more assistance should tough times continue. We also need to think about what it means if businesses can’t fully reopen in 2 months. We can’t just think about the next play, but we need to know what our call will be in multiple situations. That is why Federal assistance should build in automatic triggers to kick in if economic conditions remain dire and provide additional help when needed. We need a game plan that includes more help for small businesses facing challenges now, one that also includes stabilizers that work quickly and automatically to get help where it is needed when it is needed. It is time for a comprehensive strategy to help small businesses. Think of it as Main Street beast mode to empower them to score the points our economy will desperately need. I hope this Committee will consider the PPP Extension Act as part of that plan. Thank you, Madam Chair. Chairwoman VELÁZQUEZ. Thank you. The gentleman yields back. The gentleman from Indiana, Mr. Pence, is recognized for 2 minutes. STATEMENT OF THE HON. GREG PENCE, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF INDIANA SBD026 with DISTILLER Mr. PENCE. Thank you, Madam Chair. Thank you for the opportunity to come before your Committee today. I am glad Congress has come together on a bipartisan agreement to replenish relief funding for small business. The health and safety of Hoosiers and all Americans is and will remain my top priority. Like all of us here today, we have also been hearing from small businesses in the Sixth District of Indiana throughout this pandemic and across the country. Today I want to address property owners who are not receiving the relief they so desperately need. With customers sheltering in place, landlords in my district and nationwide are facing a catastrophic revenue collapse that will create lasting damage in our communities on the property values and on the property tax revenues. Madam Chair, even giant retailers who have kept their doors open to provide essential services are not paying their rents. Retail stores are shutting down and closing, but there is no relief for the landlords who run the town centers and strip malls which house these stores. The government has VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00029 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 26 forced stores and malls to shut down, and many landlords are generously forgiving rent to suffering small businesses, but the property owners are also financially suffering. We are on the brink of defeating this virus, but when our country reopens, will there be stores to open back up? My colleagues on this esteemed Committee, we must ensure landlords are not forgotten in this process. There are many Americans who currently own buildings with no paying tenants in them, and they have major issues looming. There are several companies like that in the Sixth District and across the Hoosier State. As a small business owner, I feel it is my duty to speak up for them in D.C. as we fight to defeat this virus and provide relief for the American people. God bless all. I pray everyone stays safe. I yield back. Chairwoman VELÁZQUEZ. The gentleman yields back. The gentleman from Colorado, Mr. Neguse, is recognized for 2 minutes. STATEMENT OF THE HON. JOE NEGUSE, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF COLORADO SBD026 with DISTILLER Mr. NEGUSE. Thank you so much, Madam Chair, for giving us this opportunity, and thank you for your leadership over the course of the last several months. The Paycheck Protection Program has provided some relief to struggling small businesses in my district. However, the rigidness of the SBA in Washington, D.C.’s interpretation of several of these provisions in the CARES Act has blocked numerous small businesses in my district, including startups in Boulder and Fort Collins, seasonal businesses in mountain communities and resort areas, and mom-and-pop restaurants across Colorado from accessing these critical funds. And so, with regards to the PPP, I would respectfully request that the Committee consider the following proposals: First, extending the covered period for loan forgiveness to longer than 8 weeks so it better reflects the current stay-at-home orders. Providing flexibility for small businesses with low labor costs who are unfairly disadvantaged by the rigid 75/25 rule as promulgated by the SBA, a huge issue in the mountain communities and resort areas that I represent. Also, providing flexibility for seasonal small businesses by tying the look back period with the corresponding year ago 2019 period so that our ski areas can recover when this public health emergency has passed. I represent Vail, Breckenridge, Winter Park, some of the best communities in our country, and they have been hit tremendously hard by this public health emergency. Eliminating the gaming exception, which Representative Lee articulated earlier today from the great State of Nevada: The Wall Street Journal reported that the hardest hit county in the United States of America economically is Gilpin County, which I have the honor of representing in Colorado, where mom-and-pop restaurants have been severely impacted by the exception that I mentioned. And then, finally, transparency and accountability provisions, which I know that the Chairwoman cares so deeply about, so that VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00030 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 27 we can ensure that the taxpayers know how these funds are being spent and to stop some of the abuses that we have read about. Again, I thank the Chairwoman as well as the Ranking Member for their leadership in these very trying times and appreciate your consideration of these proposals. Chairwoman VELÁZQUEZ. Thank you. The gentleman yields back. Mr. Johnson from Louisiana is recognized for 2 minutes. STATEMENT OF THE HON. MIKE JOHNSON, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF LOUISIANA SBD026 with DISTILLER Mr. JOHNSON OF LOUISIANA. Thank you, Madam Chair, and Ranking Member Chabot, all members of the Committee for your work and swift action in helping to produce the Paycheck Protection Program. It has worked as we all had hoped. It has been a critical lifeline, as you know, saving millions of jobs and helping countless small businesses to stay afloat while we are in these uncharted waters. We will get through this. In Louisiana, it has worked very well. We have had already 26,635 loans approved worth more than $5.1 billion, and that has been essential. The small businesses are the backbone all of economy, as we all know, and as we add this additional funding to the Paycheck Protection Program today, we are going to help a lot more businesses. Three ideas very quickly that I hope you will consider going forward. Number one, I want to associate myself with the remarks of Congressman Pence a few moments ago. We do have a catastrophic revenue collapse, and many landlords and property owners who didn’t have any relief in the PPP, and they have been crying out for help, and I think some of that is very well deserved. Number two, the chambers of commerce. As you know, the 501(c)(6) organizations were left out of the PPP, and I just believe, and I know you do, our local chambers are going to be critical players as we begin to rebuild the economy. They are the ones that are going to help plug all this back in to get the events rebooked and to help the small businesses. So they need some due regard. And, finally, the last idea, as has been mentioned a couple of times, Mr. Neguse and others have said it, we need some flexibility, I think, on the back end of this for the repayment of this. There are some businesses who are not having their employees come back due to no fault of their own, and I think we need to give them due deference on that. They are in good faith. We can separate the ones that aren’t. But the ones that are doing what we hoped and intended ought to be given that. So delighted to work with you. Thank you for your partnership and the opportunity to speak today, and I thank you for all your work. I yield back. Chairwoman VELÁZQUEZ. The gentleman yields back. The gentleman from Virginia, Mr. Griffith, is recognized for 2 minutes. VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00031 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 28 STATEMENT OF THE HON. H. MORGAN GRIFFITH, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF VIRGINIA Mr. GRIFFITH. Thank you so much for holding this hearing today. Small businesses throughout the country have seen their revenues become nonexistent in a matter of days due to stay-athome orders meant to stop the spread of the coronavirus. The Paycheck Protection Program has allowed many small businesses to stay afloat and mitigate some of these layoffs and revenue losses. Though there were some technical problems early on, I was surprised at how quickly Treasury and the SBA were able to move. By April 11th, I was hearing from businesses across my district that they were getting the funds that they had applied for. The Economic Injury Disaster Loan Program has not been nearly as successful, even though in the first aid package that Congress passed in late February we added additional money to help fund that program. I have heard numerous complaints from small businesses in my district over the past 2 months who have yet to receive those funds, and they don’t know the status of their applications. I would urge the Committee to investigate the reasons for SBA’s delay on this program. I would also urge the Committee to assess the feasibility of having banks, credit unions, and small community lenders carry out the EIDL program as well as PPP. While the PPP loan program has been a success, I am afraid it could be a bridge to nowhere. While many businesses have been able to keep their employees and to stay open, without at least beginning to reopen our economy before the end of the 8-week period, the bridge that Congress has provided will collapse or leave our businesses out on the end of the bridge with nowhere to go. These business owners will once again have the sad duty of laying off those same employees and, in many cases, closing their doors forever. And just a few examples were my district where I have been out and about, the guy who does the oil change on my car says that his business is only 45 percent of what it was before. One of the local fast food restaurants has lines in the drive-through way back. Even though it looks like they are being successful, their business is off by 55 percent. So I would have to agree with my colleagues who have asked for some flexibility on that repayment, and I would also have to say that, while those things are happening and some things have been pushed off, the real estate taxes, the personal property taxes, the business license taxes all are going to have to be paid at some point, and yet these businesses don’t have the revenues that they anticipated. I yield back. Thank you so much. Chairwoman VELÁZQUEZ. The gentleman yields back. We recognize the gentleman from New Jersey, Mr. Malinowski, for 2 minutes. STATEMENT OF THE HON. TOM MALINOWSKI, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW JERSEY SBD026 with DISTILLER Mr. MALINOWSKI. Thank you, Chairwoman Velázquez, Ranking Member Chabot, for the opportunity to testify about the Paycheck Protection Program. The PPP is an important, necessary pro- VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00032 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 29 gram to keep businesses alive and employees on the payroll, but I don’t need to tell you that the rollout of this program in many parts of the country has been a disaster. I have been in close touch with small business owners in my district, and it is difficult to fully capture the level of fear, frustration, and uncertainty that they are feeling right now. They are also just plain ticked off when they read that a national steakhouse chain made off with $20 million, that favored bank customers who didn’t need help nearly as much as they did got concierge service while they wait on hold for hours, day after day, hoping for some small piece of news. I am delighted that we are setting aside money for community banks now, but I am livid that the Senate and the administration refused to consider a single change to the program to ensure that banks treat all of their customers with equal respect. I am angry that some of us were accused of playing politics because we wanted to fix this program before punting more money into it. We all know it is going to need more money again soon, and I believe it should be fully funded for the duration of this crisis, but let’s do better than that. Before we add more money to PPP, let’s add rules that prevent big companies with access to other capital from gobbling up loans that should be going to truly small businesses. Let’s create a dedicated pot of money for those truly small businesses so the bagel shop, the laundromat, the flower shop with four or five employees isn’t competing against companies with 400 or 500. Let’s add stronger eligibility requirements to ensure the program is only open to businesses actually at risk of going under. And I wish it went without saying, but big banks should not be writing the rules here. We should be. The banks have to be made to understand that they have been drafted just as soldiers in a war are drafted. For this purpose, they are agents of the American people, acting in our interest, not their own. And if that hasn’t been made clear enough, it is on us to make it so. We are in the worst economic crisis since the Great Depression. How we respond will decide whether the economy of the early 2020s will look like that of the early 1930s. Small businesses are digging deep, and to do right by their employees, the rest of us need to step up and have their backs. Thank you, Madam Chair. Chairwoman VELÁZQUEZ. The gentleman yields back. The gentleman from South Dakota, Mr. Johnson, is recognized for 2 minutes. STATEMENT OF THE HON. DUSTY JOHNSON, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF SOUTH DAKOTA SBD026 with DISTILLER Mr. JOHNSON OF SOUTH DAKOTA. Madam Chairman, Mr. Ranking Member, thank you. Of course, I also want to thank the 11,000 South Dakota businesses that participated in the PPP, the Paycheck Protection Program. Our recovery, which will take place over time, will be much more successful and will happen more rapidly because those businesses kept their employees on the payroll during this difficult time. Congress has done a number of things right, a lot of things right with our coronavirus response packages, but of course, we have not VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00033 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 30 been perfect, and today I want to highlight two key areas where we still need to act. First, we have left too many organizations on the outside of PPP looking in, and so we need to adjust eligibility criteria so that cooperatives, small gaming operations, local hospitals with governmental affiliations, 501(c)(6) organizations, and franchises, that they too can keep their employees off the unemployment rolls. That will help this economy. Second, I cannot stress how important it is that we continue to get assistance to our agricultural producers. Farm and ranch country have been simply battered by a combination of unbelievable market volatility and steep price declines. Now, we have made some progress securing $23 billion for producers, but more funding is clearly, clearly needed. We also need to adjust payment limits and to provide flexibility to support producers who have no place to take their livestock because the processing plants in their area have been shuttered or drastically have reduced their capability. Those are the two most important issues that I wanted to talk about today, ma’am, but there are more that I have outlined in this letter to the Speaker and to the Republican leader, and I hope that it can be added to the record of today’s proceeding. Thank you for this opportunity. Chairwoman VELÁZQUEZ. Thank you. The gentleman yields back. Mr. Katko from New York, you are recognized for 2 minutes. STATEMENT OF THE HON. JOHN KATKO, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW YORK SBD026 with DISTILLER Mr. KATKO. Thank you, Madam Chair, and thank you all for being here today. I am here not to complain. I am here to say thank you on behalf of the many hundreds and probably thousands of small businesses in my district that have benefited from the PPP program. I want to thank the Committee for their bipartisan work in response to the COVID-19 pandemic. I want to commend the SBA and Treasury for their expeditious work to provide relief to America’s small business community. Think about it: They distributed $250 billion in loans and grant support to small businesses before the Treasury was able to give $1,200 checks to people they knew where they were and where their accounts were. That is pretty remarkable, and I commend them for that. Over $20 billion in paycheck program loans have already been approved in New York State. Funds from the Economic Injury Disaster Loan program have begun to make their way out across the State, amounting to over $210 million in advance funds. That is fantastic. These programs have helped many small businesses in central New York to keep their doors open and their workers paid. I can’t tell you how many businesses I have heard from, often calling up in an emotional state, saying: Thank you. You saved our jobs. You saved our business. I worked my whole life for this and hit this disaster, and were it not for this program, I would have shut my doors. That is working. That is what government is supposed to do: help out small businesses and get out of the way. VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00034 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 31 And that is exactly what we are doing here. The Paycheck Protection Program and Healthcare Enhancement Act, Phase 3.5, is going to ensure that more small businesses in my district are able to obtain relief. I liken it to a race car at the beginning of the track, revving its engine. They are all ready to go; they are just waiting for us to get it across the finish line today, and we are going to do that. It provides an additional $310 billion for the Paycheck Protection Program to ensure more businesses can participate. It increases funding for the Economic Injury Disaster Loan program by $60 billion. I am also pleased that the legislation allows small and medium size farms, which are all over my district, to take advantage of this program, which it badly needed to do, and that was a well done adjustment by all of you. It provides $2.1 billion to support the Small Business Administration as they work to administer these programs. Congress must work to ensure that the PPP remains available to struggling businesses going forward during this crisis. Additional funding will be necessary to continue providing relief and ensure that small businesses have confidence in the program. Additional work is needed to ensure that the program accurately reflects the payroll needs of all businesses. I am proud to advocate with Representative Angie Craig of Minnesota for additional flexibility for seasonal employees, which I think is very important. And, with that, Madam Chair, I yield back. Thank you. Chairwoman VELÁZQUEZ. The gentleman yields back. The gentleman from Pennsylvania, Mr. Fitzpatrick, is recognized for 2 minutes. STATEMENT OF THE HON. BRIAN K. FITZPATRICK, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF PENNSYLVANIA SBD026 with DISTILLER Mr. FITZPATRICK. Thank you, Madam Chairwoman, and thank you to the Ranking Member as well. Madam Chair, I am going to cut right to the chase here. We all know what the issues are. The PPP was well intended, poorly executed. It clearly missed the mark. We are here today to put more money into the program. Clearly needed. There have got to be guardrails put up on this program that prevent what we have seen in Pennsylvania, which I am sure all my colleagues have seen, where anybody under 500 employees is all put in the same bucket regardless of whether they are a hedge fund owner or a brokerage firm that is down 10 percent revenue with no plan to lay off their employees. And at the same time, you have small mom-and-pop shops, pizza shop owners, owner-operated day care centers that have no access to capital, no cash flow, who are getting denied. That is not the congressional intent of the Paycheck Protection Program. We have got to fix it. We have got to include our nonprofit communities as well. We all know what we need to do here. Let’s fix this because this is a make-or-break moment for our country. Second, Madam Chair, is a topic that Madam Chairwoman raised regarding business interruption insurance. I signed onto a letter along with this Committee. I used to be a member of this Committee as well. We have two choices going forward. God forbid, VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00035 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 32 we are down this path. We either choose the path of government bailouts, or we create an insurance product. Right after 9/11, we created the TRIA program, which made all the sense in the world. It was market priced. It was risk based. And it was federally backstopped. There are a lot of industry tradespeople out there that are trying to say that this is not their problem. They don’t want to be a part of the solution. They have to be part of solution. We can create a product where they can make money that insures our small businesses because, Madam Chairwoman, there are now small banks in our community that are now telling small businesses they will no longer extend lines of credit and financing unless they can show some level of insurance. That has got to be the solution going forward. These bailouts are inefficient. They miss the target. They result in endless deficits and the endless printing of money, and they miss the mark as PPP has. We can fix it. Let’s work together with the Treasury Department to make sure that those guardrails are set up so that we protect our mom-and-pop small businesses and not give these loans out to people that don’t need them. Madam Chair, I yield back. Chairwoman VELÁZQUEZ. Thank you. The gentleman yields back. The gentlelady from Washington, Ms. Schrier, you are recognized for 2 minutes. STATEMENT OF THE HON. KIM SCHRIER, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF WASHINGTON SBD026 with DISTILLER Ms. SCHRIER. Thank you, Chairwoman Velázquez, and Ranking Member Chabot, for holding this hearing. The Paycheck Protection Program is extremely popular based on the demand that we are seeing. And for the livelihood of small businesses and nonprofits, it is imperative, as you have heard many times, that we get its implementation right. We can’t punish the smallest businesses just because they don’t have longstanding lending relationships with banks. We need automatic triggers so the loans and forgiveness will renew if this economic strain persists far longer than we anticipated and businesses need to keep their idle employees on payroll for more than 8 weeks. Otherwise, their employees will just end up on unemployment 8 weeks later. The lack of detailed guidance from the administration about requirements for PPP loan forgiveness puts small businesses in challenging positions when they have to make decisions at a moment about payroll, leases, and work orders. My constituents have expressed concerns about banks not honoring the first come, first served ethos. I have heard from several businesses that their PPP application goes unanswered by their bank while larger customers are actively courted and have their applications approved quickly. I realize these are anecdotes, and we will know more when we have good oversight, but many businesses who act quickly and do everything right are still getting overlooked by their banks. Now, there are restaurant owners in Auburn who haven’t heard about their EIDL application. Cashmere Mountain Bed & Breakfast in Leavenworth, Washington, applied for a PPP loan on the first possible day and used their local bank. They haven’t yet re- VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00036 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 33 ceived a loan or a word. Their business averages $80,000 per year and has just two employees, and they have been left out. I am hopeful that struggling businesses will get help with the passage of today’s PPP and Healthcare Enhancement Act. The setaside for funds to be distributed through small local banks should help, but as you continue to consider changes to the PPP, we want to make sure the little restaurant owner and the bed and breakfast owner are taken care of. Thank you very much. Chairwoman VELÁZQUEZ. Thank you. The gentlelady yields back. At this time, the Committee is going to take a short 5-minute break. The Committee stands in recess. [Recess.] Mr. EVANS. [Presiding.] The Committee will come back to order. We will resume with members’ testimony, starting with Mr. Phillips of Minnesota, who is recognized for 2 minutes. STATEMENT OF THE HON. DEAN PHILLIPS, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF MINNESOTA SBD026 with DISTILLER Mr. PHILLIPS. Thank you, Mr. Evans, and as a small business owner myself, I am grateful to all of you for the important work you do on behalf of small businesses. In a couple of hours, I will be voting to inject another $310 billion into our exhausted small business relief programs, but I do so with serious reservations. While the need is as real as it is urgent, the programs simply are not working as intended. Far too many small businesses in my district and throughout the country have not been able to access the PPP or EIDL programs even as they face the real prospect of having to close their doors for good. Once again, I am afraid a Federal program designed to support every business is benefiting those which need it the least at the expense of those which need it the most. Take independent restaurants, cafes, bars, and clubs, for example, the quintessential community small businesses without which no American town would ever be the same. Most are now shut down, and many are being shut out. Take Jason, the owner of Monie’s Bar and Grill in small but might by Maple Plain, Minnesota. PPP did not work for him due to the 75/25 rule, the 8-week window, and other challenges with the covenants. So he applied for an EIDL loan on April 8th, over 2 weeks ago, and what did he hear back? Crickets. Not even an acknowledgment of receipt of his application. You could say that Monie’s couldn’t get the money. Now, there are thousands of businesses in my district that have benefited from PPP and EIDL loans, and I am grateful for that, but there are thousands more who have been shut out and need our help now. It will not matter how much money we throw at the problem if the system by which it is distributed is inaccessible to businesses who need it the most. My recent letter to Treasury Secretary Steve Mnuchin proposes much-needed commonsense changes, and I submit it for the record. Despite these challenges, I do remain hopeful. And this bill, while imperfect, will surely help more people, but our job is not done. We must fix what is broken and ensure that intensive oversight and accountability is present where the money flows and VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00037 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 34 where it goes. And to the small businesses of our country, I say: Keep the faith because help is on the way. Thank you, Mr. Chair. Mr. EVANS. Mr. Keller of Pennsylvania. STATEMENT OF THE HON. FRED KELLER, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF PENNSYLVANIA Mr. KELLER. Thank you, and I appreciate the opportunity to talk about how the provisions of the PPP and the CARES Act have positively impacted the businesses in Pennsylvania’s 12th Congressional District. In the first round of PPP funding, Pennsylvania had nearly 70,000 small businesses take advantage of the program. These businesses received a combined total of $15 billion in loans. Similarly, 700 Pennsylvania small businesses have received loans through the SBA’s EIDL program for over $138 million. The Paycheck Protection Program and the EIDL have been important and successful programs in keeping small businesses open and people hired during this pandemic. Every dollar used in these programs to keep businesses operating and people employed is a dollar invested in our economic recovery and also a dollar not spent on unemployment. I can talk from experience with talking to people in my district that there has been robust interest in the small business components of our COVID-19 response in Pennsylvania’s 12th. Recently, our office facilitated a successful call between small businesses and banks in our district and regional officials from the U.S. Small Business Administration. The Small Business Administration, which had been a great resource throughout the process, answered questions for over an hour from small businesses and lenders. We had hundreds of people on the call and found that the information was helpful in their process for applying for small business relief. One of the persistent questions we have received is how these programs apply to our agricultural community. While qualifying farms have been able to access paycheck protection benefits, I am glad to see language in H.R. 266 that will confirm EIDL benefits apply to qualifying farms. Small businesses employ nearly half of all Americans. They are the heart of our economy and will be a major player in our economic recovery. Many speak about finding a way to the new normal. At least as far as the economy is concerned, I hope we return to the old normal where the American worker built the greatest economy the world has ever seen. Thank you, and I yield back. Mr. EVANS. Mr. Schiff from California, you are recognized for 2 minutes. STATEMENT OF THE HON. ADAM B. SCHIFF, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF CALIFORNIA SBD026 with DISTILLER Mr. SCHIFF. Thank you, Madam Chair, Ranking Member Chabot, members of the Small Business Committee for the opportunity to provide feedback on this vitally important program passed as part of the CARES Act. I am pleased we are providing additional funding for SBA relief programs, but I am deeply concerned that, without further programmatic changes and further as- VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00038 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 35 sistance, many small businesses will be forced to close permanently, causing enormous economic suffering and slowing our recovery. Many small businesses and nonprofits in my district are frustrated by the difficulty of getting help and finding a lender. They have been moved to the back of the line behind larger businesses with established relationships and feel forgotten. This is a particular issue, as we have seen in the recent New York Times report, for small businesses that are customers of very large banks but are not the favored customers of those banks. Congress must get to work funding those businesses, large and small, that need it. Small businesses that have seen their revenue cut to zero in weeks cannot survive much longer. They will close, and many will not come back. So I strongly urge the Committee and Congress to consider programmatic changes that ensure greater access to the PPP and EIDL programs but also how we go further to get help to the businesses and nonprofits that most need it. I am also puzzled why the first tranche of funding has been distributed inequitably among the States with California receiving one of the smallest per capita amounts. I ask the Committee to look into this disparity and make sure that SBA loans are distributed fairly. And, finally, I would ask the Committee to consider the interplay between the small business program and unemployment compensation. In discussions with local businesses, like the Tallyrand Restaurant in Burbank, many are having difficulty rehiring workers who are already laid off and on unemployment compensation. They want to participate in this program. They are required to rehire employees, but those employees have already gone on to the unemployment system. So, if we could consider how that interplay works and affects these small businesses, to make sure they keep their doors open. Finally, I would like to advocate for a broader vision in the next major relief package like a large payroll guarantee program that would be equitable for businesses large and small. It would be efficient. It would avoid layoffs and I think will be commensurate with the size of the economic challenge facing the country. So I thank you for your attention and your work on this, and I yield back. Mr. EVANS. Mr. Roe of Tennessee, you are recognized for 2 minutes. STATEMENT OF THE HON. DAVID P. ROE, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF TENNESSEE SBD026 with DISTILLER Mr. ROE. I thank the Chair and the Ranking Member for holding this very important meeting. We have rolled out an amazing PPP plan in a very short period of time. With that said, any program like this is going to have a few hiccups, and there are three changes I would like to discuss today, basically. One is to encourage the SBA to allow lenders the discretion to offer loans to companies in Chapter 11. We have a newspaper business in my district that has a strong underlying book of business, but the structural changes in the news industry has left it saddled with some debt. Before the crisis, they were on track to reopen, but now the business is not sure it can survive. I think by asking lend- VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00039 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 36 ers to review the underlying business and ensure that it is in a strong position can save many businesses. Number two, I would like to encourage this, specifically to allow medical practices that have more than 500 employees but less than 500 at its individual practice locations to be afforded the same PPP loans as the hospitality industry and restaurants. In fact, CMS actually requires medical practices to submit applications to qualify for an accountable care organization by each practice location. And the SBA wants to look at the total number of people working there, and this makes no sense. Absent this action, there won’t be a private practice of medicine, I am afraid. My practice has been there for 50 years, and for the first time ever, we laid off a third of our employees. And, lastly, I want to encourage the Committee to start considering a different start date for the loan forgiveness. In Sevier County, Tennessee, where Dollywood is, there is a lot of entertainment. This goes across the country. And if you have, let’s say, a Comedy Barn, and you use this program, there is nobody there because the Governor has shut that down. We can’t open it. So it would really help these businesses, when the Governor gives his okay in our State to open these businesses back up, that the clock then starts for the 8-week loan forgiveness. I appreciate very much the opportunity to speak today, and I yield back the balance of my time. Mr. EVANS. Mr. Rose of New York, you are recognized for 2 minutes. STATEMENT OF THE HON. MAX ROSE, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW YORK SBD026 with DISTILLER Mr. ROSE. Thank you very much for your time. Thank you, Chairwoman Velázquez, Ranking Member Chabot, for having us here today and for your leadership for New York City businesses, Chairwoman, especially. I commend this Committee’s amazing work in establishing both the PPP and EIDL programs, two unprecedented programs that have seen unprecedented demand demonstrate how responsive government should work when confronting national crises. As you all know, true small businesses are facing absolutely immense challenges accessing these programs, challenges made worse during the turmoil and uncertainty of this pandemic. Nowhere is that more so the cases than for businesses on Staten Island and south Brooklyn, two of the locations hardest hit by this virus in the entire world. Small businesses in my district need help. They cannot afford to wait. I come before this Committee to ask that you help these businesses by addressing the following issues: We can start by ensuring history does not repeat itself by letting the big banks prioritize the wealthiest clients while small businesses in my district wait for even a reply after submitting their application. By using prescriptive language in future relief bills, we must look out for the businesses who need help the most and make it harder for big corporations to use emergency relief funds to optimize their bottom line. We also have to look ahead. The banking industry estimates that this next tranche of money could last only a week or so. Based off VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00040 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 37 what I am hearing from my district, I can’t tell you—I can’t tell my constituents with a straight face that they will be able to access these funds again when they—after this dries up. I was proud to see $60 billion put aside for State and Federal credit unions, micro lenders and such, but we need to do more for the nonprofit sector as well. Look. Plain and simple, more relief very well might be needed. This crisis is far from over. And I thank you again for all of your extraordinary leadership. Mr. EVANS. Ms. Slotkin of Michigan, you are recognized for 2 minutes. STATEMENT OF THE HON. ELISSA SLOTKIN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF MICHIGAN SBD026 with DISTILLER Ms. SLOTKIN. Thank you. Mr. Chairman, Ranking Member Chabot, thank you for the opportunity to share the effects of the COVID-19 crisis on Michigan and Michigan’s Eighth District. I consider the bill that we are going to vote on today as a mustpass piece of legislation. In Michigan, we have been deeply hard hit by this crisis. Only two States have lost more lives to COVID-19, and Michigan is a fraction of the size of those States. Our Governor, Gretchen Whitmer, has issued Stay Home, Stay Safe, designed to limit the spread of the virus. And that has unquestionably saved lives, but it comes at a real cost to our economy. Small businesses, retail shops and cafes, brew pubs, restaurants, greenhouses and lawn companies, hair salons, and machine shops, they have had to close and sharply reduce their business activity in order to keep their workers and their customers safe. In response, we have tried to do anything we can to get those business owners a scrap of information in this process, and I thank you all for doing such wonderful work to keep people informed. We have held virtual summits with businesses, done Facebook Live events in the Detroit and Lansing areas. Main Street businesses across the district are eager for any news. In that environment, the passage of the PPP program, Paycheck Protection Program, was absolutely necessary, and replenishing it today is as well. Let me share what I have heard from some of our businesses. In Brighton, a receipt of a PPP loan means the Work Skills Corporation can continue programs that last year placed 1,200 people in jobs providing services to our most vulnerable residents. The Cookies and Cream Ice Cream Shop in Lake Orion got a PPP loan and were able to keep nine seasonal employees on the payroll, preparing for their springtime opening. In Rochester Hills, PPP helped keep Dutton Farms alive so it can continue to provide economic opportunities for the developmentally disabled. And in Lansing, our very beloved minor league baseball team, the Lugnuts, is better equipped to weather the storm and bring us that summertime joy. And I thank you for passing this legislation. I thank you for proposing it and for allowing our smallest businesses to benefit this time around. Thanks so much. Mr. EVANS. Thank you. Ms. Sherrill of New Jersey, you have 2 minutes. VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00041 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 38 STATEMENT OF THE HON. MIKIE SHERRILL, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW JERSEY Ms. SHERRILL. Thank you. Thank you to Chairwoman Velázquez, to Acting Chair Evans, and Ranking Member Chabot and the Subcommittee for this opportunity. Thank you to my colleague, Representative Kim, for advancing New Jersey’s priorities on this Subcommittee. As many of you know, New Jersey is one of the hardest-hit States in the Nation. Along with New York, we account for 45 percent of the cases nationwide. So I am grateful for the Committee’s work in helping our struggling small businesses face this unprecedented pandemic. I testify today for New Jersey’s small businesses and towns as we continue to develop future stimulus packages. I want to highlight two key issues I am seeing in New Jersey. First, additional funds to the Paycheck Protection Program is only the first step. We must take the lessons learned and apply them now. I hear from companies daily: a Nutley Florist who cannot find a lender, an engraving store in Little Falls who cannot find out the status of their loan, a yoga studio in Verona whose bank stopped taking applications, and the list goes on. It is not sufficient to nearly add more funding. We must make it easier for businesses to access these funds and live up to the intention of the program we created. The $10,000 EIDL grants promised within 3 days are now only marginally available, devastating small businesses in NJ-11 and demoralizing owners who are fighting to take care of their employees. Second, we must ensure direct funding for smaller towns and counties. The CARES Act took the first step of providing funding for States and larger localities but ignored counties like Morris in my district, which falls just under the population threshold to qualify for the funds. For more rural Sussex County, COVID challenges are still resource intensive. Direct funding is critical to keep the fight up for our constituents. We must rectify this. We must support our county officials and mayors as they face unexpected budget shortfalls through no fault of their own on top of the COVID19 crisis. Local electeds from towns like Hopatcong and Chatham Township are incredibly concerned about revenue loss from sources like construction permits, which had already dropped because of the SALT deduction cap and an inability of residents to pay property taxes. So thank you for this opportunity. I look forward to working with you on a bipartisan basis as we move forward on critical legislation. Thank you very much. Mr. EVANS. Thank you. Mr. Womack of Arkansas, you are recognized for 2 minutes. STATEMENT OF THE HON. STEVE WOMACK, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF ARKANSAS SBD026 with DISTILLER Mr. WOMACK. Thank you, Acting Chairman Evans, and to my colleague, Mr. Chabot, for your leadership and to have the opportunity here to be heard today at this hearing. I come today pretty much with my Ranking Member of the Budget Committee hat on. I will save the specifics for what I think could VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00042 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 39 happen to the small business piece of the act that we have passed and what we are considering today and talk a little more generally about where we are as a country fiscally. No doubt the coronavirus is a challenge unlike anything we have faced before. I think we would all agree that this pandemic has impacted every facet of our life and our economy. Our response, just as this situation, has been unprecedented. We acted swiftly to help families and businesses across the Nation. It was the right thing to do. Between the CARES Act, the Families First Act, we delivered immediate relief to support medical workers and hospitals, helped families and workers, and stabilized the economy to the best of our ability. With no template on how to navigate these times, the goal was to make resources immediately available, and we did. There is no doubt that these efforts delivered assistance. For example, Arkansas alone saw 21,000 PPP loans administered, totaling $2.7 billion, to help the small businesses in Arkansas and keep workers on the payroll. However, our continued response must be focused on doing what is necessary, not what is wanted. We must ensure our efforts are targeted to help the needy, not prop up the opportunistic. Discussions about another high-dollar legislative package are already underway and even though the full effects of this crisis nor the impact of the bills we have already had signed into law are fully known. May I remind my colleagues that, before anyone had heard of COVID-19, this Nation was on track to overspend itself by more than a trillion dollars. I believe it is important to address the needs of our Nation, but I also believe it has to be done in a very responsible way. We have to be targeted. It has to be temporary. And it must be transparent. The insatiable appetite to throw a lot more money at the problem must be constrained. With that, Mr. Acting Chairman, I yield back the balance of my time. Mr. EVANS. Thank you. Mr. Horsford of Nevada, you are recognized for 2 minutes. STATEMENT OF THE HON. STEVEN HORSFORD, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEVADA SBD026 with DISTILLER Mr. HORSFORD. I want to thank the acting Chairman—it is great to see you in that role—and to the Ranking Member, Mr. Chabot, and members of the Small Business Committee and to the staff for keeping us safe. I want to thank you for allowing me to address an issue that is important to my State of Nevada but also that affects some 43 other States in our country. The gaming industry is vital to local small businesses. It supports more than 350,000 small business jobs and delivers $52 billion annually in small business revenue, including construction, manufacturing, retail, and wholesale firms. In many States, especially in my State of Nevada, gaming pays a significant share and contributes significantly to State budgets with more than $10.7 billion in gaming taxes and Tribal revenue. However, in light of COVID-19, commercial and Tribal casino operators have been forced to close their doors. And while many small VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00043 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 40 businesses are able to participate in the Paycheck Protection Program, which we have provided now $660 billion in relief, the SBA has used unfair and, I would say, discriminatory guidance and has stated that small businesses that have a portion of gaming revenue are to be precluded from receiving any of these funds. This is outrageous. Nevada currently is ranked 43rd out of 50 States in the amount of money that we have received from PPP. We have over 8,700 businesses who have been funded with the loan, but disproportionately restaurants, small taverns, and other local businesses are not even eligible to apply, and, therefore, Nevada is being left out. On top of that, my minority-, women-, and veteranowned businesses have not gotten an equal share of the funding either. So, while I am voting for this bill today, I am calling on this Committee to join with me and members of our delegation to fix this issue that prohibits gaming companies from getting their share of the money. And I am asking you, Mr. Chairman, to work with us as we address this issue, not just for Nevada but for all of the United States. Thank you, and I yield back. Mr. EVANS. Mr. Tipton of Colorado, you are recognized for 2 minutes. STATEMENT OF THE HON. SCOTT R. TIPTON, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF COLORADO SBD026 with DISTILLER Mr. TIPTON. Thank you, Ranking Chair Evans, and my colleague, Ranking Member Chabot, for the opportunity to be able to address Small Business Committee. We would like to echo some of the same comments that were made by my colleague in regard to making sure that we know where the dollars are going and showing some fiscal restraint as well. However, in Colorado, healthcare workers and officials have responded admirably to the COVID-19 crisis, but there are a few easily resolvable issues on the business side that could help maximize Colorado’s healthcare response. Many of our rural hospitals in Colorado are in a unique situation of being partially owned by the county and the district under State laws. While they function like nonprofits, their ownership structure has created confusion about whether they are eligible for the PPP as the Small Business Act prohibits government-owned entities from accessing Small Business Administration loans. I have written to the SBA to be able to seek clarification on this issue and was told by the administration’s liaisons that they are working on it. Meanwhile, I have heard from at least two rural hospitals in my district that were approved for PPP loans and received funds but who have subsequently been cautioned by their attorneys against using those funds in the event that they are deemed ineligible for the PPP program. Rural hospitals operate on an extremely thin margin, and the PPP would be a lifeline for many of them. Unfortunately, because there has been a lack of clear guidance from the SBA, and the interim funding package was silent on the issue, county and districtowned hospitals are in limbo. We need to clarify this issue now because we need clarity on it now. We cannot afford to lose rural hospitals and to have them close their doors in the midst of this pan- VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00044 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 41 demic. I would like to ask this Committee, Treasury, and the SBA to take up these concerns and to come together to resolve this issue for rural hospitals and the many, many Coloradans who rely on them. Thank you for this time. Mr. EVANS. Thank you. Ms. Stevens of Michigan, you are recognized for 2 minutes. STATEMENT OF THE HON. HALEY M. STEVENS, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF MICHIGAN Ms. STEVENS. Thank you, Acting Chair Evans and Ranking Member Chabot and members of this distinguished Committee. Thank you for the opportunity to testify and for your continued leadership to our country’s impeded economy and to our struggling small businesses in the face of a public health crisis to the likes our Nation has never seen. In Michigan, I am working around the clock with small businesses and the 25 beautiful towns I have the privilege of representing, comprised of beautiful downtowns with restaurants, gyms, hotels, mom-and-pop shops, sandwich stores, and people who came to this great Nation to build these businesses; people who grew up in my communities, who were born here, who graduated from West Bloomfield High School, from Waterford Kettering, from Churchill High School; people who have given it all to achieve the American Dream; people like my parents, who are small business owners. We must, my friends, orient our policymaking towards long-term economic viability in our new scientific reality. We are not as in charge as we would like, but I am optimistic. I have hope. We must evolve and truly reckon with the task at hand for the health outcomes oriented towards the science, for the economic viability, for our workers, and their employees. We cannot feign the revenue loss for businesses. We do not intend to feign revenue loss for businesses. We must achieve standardized health guidelines for the operation of our cities, for our enterprises, the employers in our cities, and the very functions of society. We will learn, we will evolve, and we will continue to prevail. I am grateful for my credentials as a former Treasury official during the last financial crisis, and I worked closely on the State Small Business Jobs Act of 2010. Many Michigan businesses have shared obstacles to accessing the Payment Protection Program funds, from the lack of guidance and oversight for lenders, to the lack of transparency in distribution. Many businesses will be dealing with the impacts of the pandemic for years, and we will not be successful without additional flexibilities. I remain committed to you, Mr. Chairman, and to this Committee as we move forward for the health and success of our overall economy. Thank you. Mr. EVANS. Mr. Roy of Texas, you are recognized for 2 minutes. STATEMENT OF THE HON. CHIP ROY, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF TEXAS SBD026 with DISTILLER Mr. ROY. I thank the Chair. VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00045 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 42 Twenty-six million unemployed Americans; 43 percent of American families have had a reduction in their paycheck or an elimination of their paycheck. I would posit that what we are doing is not working. We have met twice. We have spent $2 trillion, and now are throwing another $460 billion, whatever the number is, at it. And I am going to hold my nose and vote for the bill today because there are 700,000 businesses on the outside looking in hoping to get some capital to keep the jobs afloat and to keep the businesses they inherited or built alive. But we have got to change our approach. We have got to get our businesses back up and running. We have got to restart our economy. We can’t fund our economy from Washington. We have got to get people back to work. And, if we are going to continue to have programs, they need to actually function. As many of my colleagues previously have talked about, I think my friend, Mr. Phillips, I think, who spoke a little bit earlier, about the extent to which the PPP program isn’t functioning the way it needs to to work. And the combination of the unemployment insurance program where we are paying people more to not work than to work is fundamentally undermining the ability of businesses to get the benefit of a forgivable loan that requires them being able to go back and rehire people. This is not the way for us to do business. And Congress is going to have to meet, we should be here every single day until America is back, because we can’t allow the 75 percent requirement, the 8week requirement, the 2-year repaid loans. We are asking businesses to take a gamble, to go borrow money, to start paying back their loan in 6 months, feeling like they have got to repay it in 2 years, hoping that they will get it forgiven, to rehire people they can’t rehire because of unemployment insurance is paying people more not to work than to work. That is not a way to do business. Mr. Chairman, I hope we can do better, and we should be meeting regularly to fix this problem. Thank you, sir. Mr. EVANS. Thank you. Mr. Thompson of California, you are recognized for 2 minutes. STATEMENT OF THE HON. MIKE THOMPSON, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF CALIFORNIA SBD026 with DISTILLER Mr. THOMPSON OF CALIFORNIA. Thank you, Mr. Evans. I am concerned about reports regarding the small businesses unable to access relief enacted under the CARES Act. Mr. EVANS. Can we—your microphone. Can you start over? Mr. THOMPSON OF CALIFORNIA. It shows red. Is it on? Mr. EVANS. It should be on now, yeah. Mr. THOMPSON OF CALIFORNIA. I am concerned about the inability of businesses to access relief that we passed and provided for under the CARES Act. Like other Members, I have received many desperate calls from small business owners who have encountered major difficulties applying for the Paycheck Protection Program and the Economic Injury Disaster Loan Program. These programs were to help businesses survive and save the jobs of their employees. This is, in part, because some mainstream VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00046 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 43 banks are prioritizing their well-heeled clients ahead of mom-andpop businesses who need the assistance the most. In my district, for example, one business owner applied to 10 banks. Another owner applied at four banks and finally received a $200,000 loan from a bank in North Dakota. My district is in California. And they got that loan because they called in a favor from a friend who got the loan moved to the top of the list. One constituent with a 42-year very positive existing relationship was passed over. These stories show that, even with an existing relationship with a bank, some folks are left out in the cold. Large corporations, like Potbelly and Ruth Chris, which are highly capitalized, received funding that accelerated the depletion of critical SBA loan relief. Small businesses were not getting access to loans, and many have been unable to apply before the first batch of funding ran out. They must lose—they may lose their businesses, and their employees, our priority for passing this bill, will be out of a job. I respectfully urge this Committee in the next legislation to close the corporate loopholes that place large businesses above the small businesses in the PPP, and reexamine the way in which PPP reimburses banks to ensure that they don’t cherry pick loans that they process. And I respectfully ask that eligibility for the PPP be extended to 501(c)(6) organizations. Thank you for your time. Mr. EVANS. Thank you. Mr. Thompson of Pennsylvania, you are recognized for 2 minutes. STATEMENT OF THE HON. GLENN THOMPSON, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF PENNSYLVANIA SBD026 with DISTILLER Mr. THOMPSON OF PENNSYLVANIA. Mr. Evans, thank you so much. And thank you to the Chair, Ranking Member, and all the members of the House Committee on Small Business. I want to thank you for the opportunity to share feedback from small business owners and lenders from Pennsylvania’s 15th Congressional District. I am grateful for the SBA’s work in recent weeks to implement PPP and deliver relief directly to millions of small businesses and their employees. In this 2-week period, I have learned a lot working with small business owners. Many have expressed concern, as small rural banks are still in need of assistance as funds went out to many with prior relationships with the Small Business Administration. Many have voiced concerns with PPP loan forgiveness. Specifically, I have heard PPP lenders and borrowers expressing that current guidance needs to further account for real world contingencies. Some employers are concerned with former employees who may not return on payroll in a timely manner. Treasury states that, to qualify for forgiveness, the employer has until June 30 to restore employment and salary level for any changes made to staff and payroll. Employers have reached out to me personally voicing that, under the current economy, it is difficult to restore pre-pandemic employment. Second, some lenders and borrowers share the concern that 75 percent of the total amount of a PPP loan must be used towards VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00047 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 44 payroll costs for the loan to be forgiven completely. This has caused confusion for some business owners who borrowed 2.5 multiple over the payroll costs for the PPP interim final rule from the Treasury. Business owners are concerned that that may result in a failure to have the loans forgiven. Finally, I am appreciative of the support provided by CARES for our Nation’s farmers and ranchers through USDA and SBA. Many have struggled mightily in the past decade as prices have been challenging and average farm income was nearly halved. Just as prices began to rebound and trade negotiations improved, this pandemic started, devastating markets as restaurants and schools closed their doors. It is said that 54 percent of all meals prior to this pandemic were eaten at restaurants, and people have now returned to the kitchen table. So I am pleased to see that today’s legislation will ensure agriculture’s eligibility for the Economic Injury Disaster Loans, and I thank you for your support. In conclusion, I want to thank the Chair, the Ranking Member, and the members of the Subcommittee for your continued dedication to our Nation’s small businesses. I appreciate your consideration, and I look forward to working together in the future. Mr. EVANS. Thank you. Ms. Spanberger of Virginia, you are recognized for 2 minutes. STATEMENT OF THE HON. ABIGAIL DAVIS SPANBERGER, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF VIRGINIA SBD026 with DISTILLER Ms. SPANBERGER. Good morning, and thank you to Chairwoman Velázquez and Ranking Member Chabot, and to you, Mr. Evans, for providing me with the opportunity to address the Small Business Committee today. According to the Small Business Administration, small businesses make up 99 percent of Virginia’s businesses. These 700,000 Virginia businesses are not just a statistic, a building, or a sign out front; they are the dreams of our neighbors. But, right now, across Virginia, COVID-19 has put these dreams in jeopardy. Yes, many businesses have found innovative ways to adapt to these challenging times, but, in conversation after conversation with business owners in my district, I have heard dire concerns about their livelihoods, their families, and their employees. Today, we are taking the right step in providing additional robust funding to the Paycheck Protection Program. I am the first to acknowledge that there have been issues with the implementation of the PPP, but I also know that, in this moment of crisis, this assistance is still desperately needed in central Virginia and throughout the country. Just last week, I spoke with a small business owner in my district who said PPP has been a, quote, ‘‘godsend’’—yes, that is the word he used—for his businesses and his employees. Others have called it a lifeline. It is not an overstatement to say that PPP funding is ensuring his business’ very survival. Once we move forward with this additional PPP funding, we should also attempt to fix some of the major issues with the pro- VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00048 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 45 SBD026 with DISTILLER gram, including that all eligible businesses, not just a bank’s top customers, can get these loans. I also urge my colleagues to review the guidance that was put in place surrounding payroll costs in these forgivable loans. The socalled 75/25 rule was not passed by Congress in the CARES Act. It was not signed into law by President Trump. But, yet, the SBA and the Treasury Department added this guidance before Democrats and Republicans could express our deep reservation about this onerous requirement. The 75/25 rule has been overly restrictive on many businesses in my district, including restaurants. The implementation of PPP has been unfair to many American businesses, and rescinding this burdensome requirement would allow our businesses to use these loans to cover expenses related to their unique individual circumstances. It would level the playing field. And, while outside this committee’s jurisdiction, I also want to mention two additional items that we must include in future iterations of coronavirus response legislation. Our next package must include additional funding for States and localities, including my rural counties in central Virginia, to address the challenges caused by decreased tax revenue. They need funding for law enforcement, they need funding for EMS, and they need funding to keep the lights on and the water running throughout our communities. We can’t leave our rural communities behind. Our businesses need these local services to stay afloat and eventually to reopen their doors. And, to keep our rural businesses connected, we also need to push forward on additional funding for high-speed broadband internet in future response packages. I have been vocal about this issue since I arrived in the House, and central Virginia’s rural communities need additional support to build reliable access to an increasingly online economy. Thank you again for holding today’s hearing, and I look forward to working with you as we fight to preserve the businesses and to protect the workers that keep our communities strong. Thank you. Mr. EVANS. I would like to thank you, and thank Madam Chair and Ranking Members, all members of the Small Business Committee. If there are no other comments, I would like to conclude this hearing by once again thanking all my colleagues for being here today. I can hear the pain and frustration in your voice when you talk about the needs of our small firms, and I hear you and share many of the same concerns. Rest assured we will be doing all we can do to improve the PPP and ensure the money gets into the hands of the truly small and underserved businesses, their employees, who need it the most. I encourage you to work with my staff and the Republican colleagues as our priorities. And with unanimous consent, Members have 3 legislative days to submit statements and supporting material to the record. Without objection, it is so ordered. If there is no further business to come before the Committee, we are adjourned, and thank you very much. VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00049 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 46 SBD026 with DISTILLER [Whereupon, at 1:30 p.m., the Committee was adjourned.] VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00050 Fmt 6633 Sfmt 6633 F:\DOCS\41291.TXT DEBBIE 47 VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00051 Fmt 6602 Sfmt 6602 F:\DOCS\41291.TXT DEBBIE Insert offset folio 47 here 41291.001 SBD026 with DISTILLER APPENDIX VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00052 Fmt 6602 Sfmt 6602 F:\DOCS\41291.TXT DEBBIE Insert offset folio 48 here 41291.002 SBD026 with DISTILLER 48 VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00053 Fmt 6602 Sfmt 6602 F:\DOCS\41291.TXT DEBBIE Insert offset folio 49 here 41291.003 SBD026 with DISTILLER 49 VerDate Mar 15 2010 12:56 Jun 30, 2021 Jkt 000000 PO 00000 Frm 00054 Fmt 6602 Sfmt 6602 F:\DOCS\41291.TXT DEBBIE Insert offset folio 50 here 41291.004 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