The Honorable Isabella Casillas Guzman, Administrator, United States Small Business Administration (March 27, 2024)

Summary

In a letter dated March 27, 2024, to SBA Administrator Isabella Casillas Guzman, House Committee on Small Business members write about the Small Business Administration's return to work policy. The letter cites Government Accountability Office data indicating SBA headquarters is operating at 10 percent capacity, and says the SBA's FY2025 funding request includes a $42 million allocation for rent, a 30 percent increase over FY23 funding. It quotes testimony that the SBA has 50 percent occupancy on any given day and asks for the action plan submitted to the Office of Management and Budget, telework data and communications about a December 3, 2023 visit, no later than April 10, 2024. The signature block names Roger Williams, Chairman, among other Committee members.

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                                               March 27, 2024

The Honorable Isabella Casillas Guzman
Administrator
United States Small Business Administration
409 3rd Street, SW
Washington, DC 20416

Dear Administrator Guzman:

         We write concerning the Small Business Administration’s (SBA) return to work policy.
House Committee on Small Business (Committee) Republicans have consistently raised
questions around the SBA’s in-office work policies and their detrimental impact on the SBA’s
ability to help America’s small businesses. Chairman Roger Williams led nine Committee
members in a letter expressing concerns about work-from-home policy last summer.1
Unfortunately since then it seems the SBA has made little progress in returning to work to ensure
America’s small business needs are met.

       Despite the Biden Administration’s belated realization that work from home policies are
counterproductive to servicing the American public, it appears that the SBA has failed to
implement an effective strategy to return its employees. Nearly a year after the Biden
Administration ended the COVID-19 Public Health Emergency, the SBA is still not back to
work. Data from the Government Accountability Office (GAO) indicates that the SBA's
headquarters is operating at a mere 10 percent capacity, placing it in the bottom quartile of office
usage among Federal Agencies.2

        Despite this consistent underutilization, the SBA's recent release of their FY2025 funding
requests includes a staggering $42 million allocation for rent—marking a 30 percent increase
over FY23 funding. This Committee is deeply troubled by the rationale behind such a substantial
increase in funding over just two years. In your testimony during the Committee hearing, you
stated, “[w]e have 50 percent occupancy on any given day,” a dramatically different number than
that of GAO. Even if that is true, leaving a multimillion dollar building empty between 50 and 90
percent of the time is unacceptable and a waste of taxpayer dollars. This is also inconsistent with
what we witnessed with our own eyes on December 3, 2023, when we toured SBA and walked
past rows and rows of empty desks.


1
  Letter from Roger Williams, et. al., Chairman, H. Comm. on Small Bus., to Isabella Guzman, Administrator, Small
Bus. Admin. (Aug. 14, 2023).
2
  U.S. GOV’T ACCOUNTABILITY OFFICE, GAO-23-106200, PRELIMINARY RESULTS SHOW FEDERAL BUILDINGS
REMAIN UNDERUTILIZED DUE TO LONGSTANDING CHALLENGES AND INCREASED TELEWORK (Jul. 13, 2023).
The Honorable Isabella Casillas Guzman
March 27, 2024
Page 2 of 3


       The White House Chief of Staff, Jeff Zients, finally bowed to reality and has attempted to
curb the federal workforce’s lax work-from-home policies. Mr. Zients directed agency heads,
including yourself, to submit action plans outlining their strategies for complying with return-to-
work policies to the Office of Management and Budget (OMB) by January 26, 2024.

        When pressed about this action plan, you stated, “[w]e are complying with the standards,
SBA is back five days a pay period.” This answer is rather deceptive, as the pay period is a total
of ten days, or showing up to work 50 percent of the time. Perhaps more concerning is the
guidance given to SBA employees: beginning January 2, 2024 employees are required to report
to a physical office 4 days a pay period, with supervisors, managers, and political appointees
required at 5 days a pay period, contradicting what was stated in your testimony.

        Despite your answers, we are still concerned with the SBA’s extreme work from home
policies and what that entails for America’s 33 million small businesses. To that end, we request
the following information no later than April 10, 2024:

   1. The action plan on returning to work that you submitted to the Office of Management and
      Budget at the request of White House Chief of Staff, Jeff Zients.

   2. The average amount of days SBA employees spend in telework status in a pay period.

   3. What percentage of employees spend entire pay periods in telework status.

   4. The current number of permanent employees with the SBA’s Headquarters as their main
      office.

   5. The percentage of applicable employees currently adhering to the guidance of five days a
      pay period in the office.

   6. Why does the Small Business Administration need $42,000,000 for office space when the
      vast majority of its employees telework?

   7. All communications and written documents regarding the Congressional visit that took
      place December 3, 2023.

       To schedule the delivery of your response or ask any related follow-up questions, please
contact the Committee on Small Business Majority Staff at (202) 225-5821. The Committee on
Small Business has broad authority to investigate “problems of all types of small business” under
House Rule X. Thank you in advance for your cooperation with this inquiry.
The Honorable Isabella Casillas Guzman
March 27, 2024
Page 3 of 3

                                    In God We Trust,




_________________________                      _________________________
Roger Williams                                 Mark Alford
Chairman                                       Member of Congress
Committee on Small Business                    Committee on Small Business




_________________________                      _________________________
Blaine Luetkemeyer                             Pete Stauber
Vice Chairman                                  Member of Congress
Committee on Small Business                    Committee on Small Business




_________________________                      _________________________
Dan Meuser                                     Beth Van Duyne
Member of Congress                             Member of Congress
Committee on Small Business                    Committee on Small Business




_________________________                      _________________________
Jake Ellzey                                    Aaron Bean
Member of Congress                             Member of Congress
Committee on Small Business                    Committee on Small Business




cc:   The Honorable Nydia M. Velasquez, Ranking Member
      Committee on Small Business


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