Authorization and Oversight Plan, 118th Congress — House Committee on Small Business

Summary

The Authorization and Oversight Plan of the Committee on Small Business of the U.S. House of Representatives for the 118th Congress, adopted under Rule X, clause 2(d) of the Rules of the House. The plan states that the Committee found no SBA programs with lapsed authorizations or unreviewed permanent authorizations meeting the rule's parameters. It lists oversight topics for federal capital access programs, including review of the Paycheck Protection Program, the Economic Injury Disaster Loan program and other COVID-19 relief programs. Further sections cover entrepreneurial development programs, government contracting, SBA management, regulatory and paperwork burdens, tax policy, and trade and intellectual property. It closes with SBA programs and offices it may examine for spending reductions and a note on §18 of the Small Business Act on programmatic duplication.

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                         AUTHORIZATION AND OVERSIGHT PLAN
                           COMMITTEE ON SMALL BUSINESS
                           U.S. HOUSE OF REPRESENTATIVES
                                  118TH CONGRESS
Rule X, clause 2(d) of the Rules of the House requires each standing committee of the House to
adopt and submit an authorization and oversight plan for this Congress to the Committee on
Oversight and Accountability and the Committee on House Administration by March 1 of the
first session of Congress.

The following is the authorization and oversight plan for the Committee on Small Business and
its subcommittees for the 118th Congress. The Committee will conduct oversight and
investigations pursuant to its legislative and oversight jurisdiction under Rule X, which permits
the Committee to investigate any matter affecting small business.

Rule X, clause 2(d)(2) requires that committee oversight plans include a list of programs or
agencies within each committee’s jurisdiction with lapsed authorizations that received funding in
the prior fiscal year, or a program or agency with a permanent authorization, which has not been
subject to a comprehensive review by the committee in the prior three Congresses. The
Committee has found no Small Business Administration Programs (SBA) that fit these
parameters.

Rule X, clause 2(d)(2) also requires a description of the programs or agencies to be authorized in
the current Congress or the next Congress, and any oversight to support the authorization of each
such program or agency in the current Congress, and recommendations for changes to existing
law for moving such programs or agencies from mandatory funding to discretionary
appropriations, where appropriate. The Committee may consider reforms and improvements to
various SBA programs as noted throughout this Authorization and Oversight Plan.

                         Oversight of Federal Capital Access Programs

The Committee will conduct hearings and investigations of SBA and other federal agencies that
provide capital to American’s entrepreneurs that may include any or all of the following, as well
as matters brought to the attention of the Committee subsequent to the filing of this Report:

   •   Effectiveness of the capital access programs to generate jobs in the fastest growing small
       businesses.
   •   Whether lenders are meeting their goals to lend small businesses and create jobs.
   •   Risk to the taxpayers of the capital access programs.
   •   Adequacy of SBA oversight of its lending partners to ensure that federal taxpayers are
       properly protected.
   •   Capabilities of the SBA information technology to manage the loan portfolio.
   •   Whether SBA rules, regulations, and guidance result in transparent and reasoned decision
       making with respect to capital access programs.



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   •   Assessment of credit-scoring algorithms as a replacement for individual credit assessment
       by SBA and its lending partners.
   •   The exercise of discretion by SBA to create pilot programs and the risk they pose to the
       taxpayer and whether such authority should be curtailed or eliminated.
   •   Whether SBA disaster loan program and its oversight ensures that small businesses are
       able to revive and rebuild communities without unduly placing the federal taxpayer at
       risk.
   •   Review of the Paycheck Protection Program, the Economic Injury Disaster Loan
       program, and other COVID-19 related relief programs related to small business.
   •   Efficacy and duplication of federal capital access programs offered by the Department of
       Agriculture to small business in rural areas.
   •   Utilization by small businesses of export capital programs at the Export-Import Bank and
       the Overseas Private Investment Corporation.
   •   Continued examination of the Small Business Lending Fund and State Small Business
       Credit Initiative established by Pub. L. No. 111-240, the Small Business Jobs Act of
       2010, in creating jobs and providing capital to small businesses.
   •   Impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub. L. No.
       111-203, on small business access to capital.
   •   Implementation of crowdfunding and other provisions of the Jumpstart Our Business
       Startups Act, Pub. L. No. 112-106.
   •   Review of proposed changes to capital access programs, to include lifting the moratorium
       on licensing new Small Business Lending Companies.
   •   Implementation of program clarifications made to encourage more cooperative and
       employee stock ownership plan lending through SBA programs established by the Main
       Street Employee Ownership Act of 2018, passed into law by the John S. McCain
       National Defense Authorization Act for Fiscal Year 2019, Pub. L. No. 115-232.

In performing oversight, the Committee will focus on risky aspects of financial assistance
programs including, but not limited to, commercial real estate financing, premier certified
lenders, participating security small business investment companies, small business lending
companies, express lenders, and loan programs utilizing simplified lending applications.

          Oversight of SBA and Other Federal Entrepreneurial Development Programs

The committee will conduct hearings and investigations into the SBA programs that providing
training and advice to small businesses that may include any or all of the following, as well as
matters brought to the attention of the Committee subsequent to the filing of this Report:

   •   Examining effectiveness of SBA entrepreneurial development programs, including
       programs for veterans, in creating jobs at startups and traditional firms.
   •   Determining whether certain programs should be eliminated as a result of their
       ineffectiveness or duplications of programs provided by other agencies or by the private
       sector.
   •   Suggesting methods for enhancing coordination among federal agencies in providing
       assistance to entrepreneurs, including, but not limited to, businesses located in rural areas
       and those seeking to provide goods and services in the federal procurement marketplace.
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   •   Recommending improvements in assistance to small businesses in rural areas and low-
       income areas
   •   Review SBA’s transition from EDMIS to Nexus, the new data collection system for
       Entrepreneurial Development programs.

                     Oversight of Federal Government Contracting Matters

The Committee will conduct hearings and investigations into the federal procurement system that
may include any or all of the following, as well as matters brought to the attention of the
Committee subsequent to the filing of this Report:

   •   Whether fraud or other problems exist in the federal government contracting programs
       overseen by the SBA.
   •   Effectiveness of SBA contracting programs to increase participation by small business in
       federal procurement.
   •   Review SBA certification systems to ensure timely and accurate processing of
       applications and continue to monitor the migration of the veteran certification program
       from the Department of Veterans Affairs to the Small Business Administration.
   •   Effectiveness of federal agency protection against contract bundling and consolidation.
       The accuracy and utility of SBA size standards and federal procurement databases.
   •   Operation and effectiveness of federal agency assistance provided to small businesses
       interested in federal procurement, including that provided by the SBA, Offices of Small
       and Disadvantaged Business Utilization and Procurement Technical Assistance Centers.
   •   Development of federal acquisition policies and whether small businesses have
       sufficiently effective voice in development of such policies.
   •   Cost-effectiveness of outsourcing government work to private enterprise rather than
       expanding the government to provide the good or service internally.
   •   Implementation and efficacy of changes made in small business federal procurement
       programs arising from the enactment of the National Defense Authorization Acts.
   •   Examination of the Small Business Innovation Research Program as modified by the
       National Defense Authorization Act for FY2012, Pub. L. No. 112-81, including but not
       limited to, increased efforts at commercializing federally funded technology.
   •   Review the implementation of Small Business Innovation Research Program and Small
       Business Technology Transfer programs as extended by Pub. L. No. 117-183.

In performing oversight, the Committee will focus its efforts on uncovering abuse and misuse of
the small business designation to obtain federal government contracts.

                                Oversight of SBA Management

The committee will conduct hearings and investigations into the management of the SBA that
may include any or all of the following, as well as matters brought to the attention of the
Committee subsequent to the filing of this Report:

   •   The fulfillment of the mission of the SBA.
   •   Whether agency employees in the field are empowered to assist small business.
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   •   Whether field offices are appropriately staffed.
   •   Duplication of offices and missions at SBA headquarters.
   •   Effectiveness of personnel management.
   •   Capabilities of SBA employees to provide proper assistance to small business owners.
   •   Agency personnel capabilities to properly manage loan defaults to maximize recovery of
       collateral.
   •   Whether SBA improperly utilizes statutory authority to create untested initiatives and the
       procedures by which the agency develops such programs.
   •   Policies and procedures to ensure fair and competitive contracting opportunities for small
       business.
   •   Monitor the agency’s spending and efforts as it relates to the pandemic response and fully
       account for Covid-19-provided appropriations.
   •   Review the SBA’s technology and data systems in an effort to modernize, strengthen, and
       improve interoperability between platforms.
   •   Assess the agency’s efforts to secure their networks and data systems.

In carrying out this oversight the Committee will focus particularly on streamlining and
reorganizing of the agency’s operations to provide maximum assistance to small business
owners. Offices that primarily provide assistance or advice to headquarters staff that do not
promote the interests of small businesses or protect the federal government as a guarantor of
loans will be recommended for cuts or elimination.

                    Oversight of Federal Regulatory and Paperwork Burdens

The Committee will conduct hearings and investigations into unnecessary, burdensome, and
duplicative federal rules, reporting and recordkeeping requirements affecting small businesses
that may include any or all of the following, as well as matters brought to the attention of the
Committee subsequent to the filing of this Report:

   •   Consumer Financial Protection Bureau.
   •   Consumer Product Safety Commission Department of Agriculture.
   •   Department of Commerce.
   •   Department of Energy, particularly the Office of Energy Efficiency and Renewable
       Energy.
   •   Department of Health and Human Services, particularly the Centers for Medicare and
       Medicaid Services and the Food and Drug Administration.
   •   Department of the Interior.
   •   Department of Homeland Security, particularly the Transportation Security
       Administration.
   •   Department of Labor, particularly the Occupational Safety and Health Administration
       and the Wage and Hour Division.
   •   Department of Transportation, particularly the Federal Aviation Administration and the
       Federal Motor Carrier Safety Administration.
   •   Department of the Treasury, particularly the Internal Revenue Service.


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   •   Environmental Protection Agency, particularly the office of Environmental Justice and
       External Civil Rights.
   •   Federal Communications Commission.
   •   Federal Financial Institutions Examination Council and its constituent agencies.
   •   Office of Management and Budget, particularly the Office of Federal Procurement
       Policy.
   •   Securities and Exchange Commission.

The Committee will identify specific rules and regulations already issued or at the proposed rule
stage to assess the impact on small business. In addition, the Committee will examine agency
compliance with the Regulatory Flexibility Act, the Small Business Regulatory Enforcement
Fairness Act, and the Paperwork Reduction Act. The Committee will pay close attention to the
effect that regulations have on startups. Oversight of the regulatory process also will, to the
extent relevant, examine the work of the Office of Informational and Regulatory Affairs and the
Office of Management and Budget. Special attention will be paid to the work performed by the
Chief Counsel for Advocacy at the Small Business Administration to ensure that office is
fulfilling its mission to advocate vigorously on behalf of America’s small business owners in
regulatory matters at federal agencies. Finally, this oversight will entail an examination of
compliance by federal agencies with amendments to Executive Order 12866 and memoranda on
regulatory flexibility and regulatory compliance issued on January 18, 2011, as well as Executive
Order 13272.

                                Oversight of Federal Tax Policy

The Committee will conduct hearings and investigations into the federal tax code, its impact on
small business, and Internal Revenue Services’ (IRS) collection of taxes that may include any or
all of the following, as well as matters brought to the attention of the Committee subsequent to
the filing of this Report:

   •   Identification of tax code provisions and proposed rules that hinder the ability of small
       businesses to create jobs and recommendations for modifying those provisions to boost
       small business job growth.
   •   Examination of the structure of the tax code in order to simplify compliance for small
       businesses.
   •   Assessment of the recordkeeping and reporting requirements associated with tax
       compliance and suggestions for reducing such burdens on small businesses.
   •   Evaluation of the estate tax provisions to determine whether they inhibit the ability of
       successive generations to maintain successful job creating enterprises.
   •   Efficiencies at the IRS that improve the interaction between the government and small
       business owners.
   •   Inefficiencies at the IRS that force small businesses to divert capital from job growth to
       tax compliance.




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                       Oversight of Trade and Intellectual Property Policy

The Committee will conduct hearings and investigations into international trade and intellectual
property policies of America and its trading partners that may include any or all of the following,
as well as maters brought to the attention of the Committee subsequent to the filing of this
Report:

   •   Impact of free trade agreements to increase exports by American small businesses.
   •   Oversight of SBA’s Office of International Trade and the agency’s efforts to promote
       small business exports.
   •   Examination of the impact of illicit actions by foreign entities on small businesses and
       whether the federal government is doing enough to protect their interests.
   •   Whether the federal government is doing enough to protect the intellectual property rights
       of small businesses by foreign competitors.
   •   The impact of federal intellectual property polices, particularly patents and copyrights, to
       protect the innovation of American entrepreneurs.
   •   Efforts to increase exports by small businesses.
   •   Whether the United States Trade Representative takes position at the World Trade
       Organization that sufficient promote the interests of American small business.

The focus of oversight will emphasize the best mechanisms to promote and protect advanced
technology innovations of small business.

                              Reductions in Programs and Spending

In addition to the programs and policies already cited, the committee will examine any and all
offices and programs that fall within the Committee’s legislative jurisdiction to find areas that
could lead to reduction in the federal deficit. Some programs and offices may include:

   •   Express Loan Program overseen by SBA.
   •   Emerging Leaders initiative started by SBA.
   •   Clusters Program initiated by SBA.
   •   Innovation and Impact Fund Pilot Programs operated by the SBA.
   •   SBA Office of Policy.
   •   SBA Regional Administrators.
   •   Office of Advocacy Regional Advocates.
   •   SBA Deputy District Directors.
   •   SBA Office of International Trade.
   •   SBA’s Cybersecurity for Small Business Pilot Program

In particular, the Committee will assess whether a reorganization of offices to more critical
functions at the SBA will provide a more effective agency at helping small businesses to
generate growth.




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                                  Programmatic Duplication

The Committee notes that §18 of the Small Business Act prohibits duplication of any effort by
the Small Business Administration if a program is already offered by another federal agency
unless the Small Business Administration expressly authorizes the duplication. The Committee
will continue to monitor the Small Business Administration for programs that duplicate the
efforts of other federal agencies.




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