Markup of H.R. 6079, H.R. 6078, H.R. 6133 and H.R. 6021 — Committee on Small Business

Summary

Transcript of a markup before the Committee on Small Business, United States House of Representatives, on March 11, 2020 (Small Business Committee Document Number 116–079), with Hon. Nydia Velázquez, chairwoman of the Committee, presiding. The committee considered H.R. 6079, the Microloan Improvement Act of 2020; H.R. 6078, the Microloan Transparency and Accountability Act of 2020; H.R. 6133, the Step Improvement Act of 2020; and H.R. 6021, the Northern Mariana Islands Small Business Development Act. Chairwoman Velázquez calls them four bipartisan bills, two of them modernizing the Microloan program. The transcript records H.R. 6079 being agreed to and reported to the House, and the appendix reprints the text of each bill.

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“Markup of H.R. 6079, H.R. 6078, H.R. 6133 and H.R. 6021 — Committee on Small Business.” Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/chrg-116hhrg41895-de08969bde/, SHA-256 f9a1660736deae6c6779f12683e597f97f1e7bfed97829bdc267e05951d3e024.

Full text

MARKUP OF: H.R. 6079, ‘‘MICROLOAN IMPROVE-
MENT ACT OF 2020’’ H.R. 6078, ‘‘MICROLOAN
TRANSPARENCY AND ACCOUNTABILITY ACT
OF 2020’’ H.R. 6133, ‘‘STEP IMPROVEMENT
ACT OF 2020’’ H.R. 6021, ‘‘NORTHERN MAR-
IANA ISLANDS SMALL BUSINESS DEVELOPMENT
ACT’’

HEARING
BEFORE THE

COMMITTEE ON SMALL BUSINESS
UNITED STATES
HOUSE OF REPRESENTATIVES
ONE HUNDRED SIXTEENTH CONGRESS
SECOND SESSION

HEARING HELD
MARCH 11, 2020

Small Business Committee Document Number 116–079
Available via the GPO Website: www.govinfo.gov

U.S. GOVERNMENT PUBLISHING OFFICE
41–895 WASHINGTON : 2020

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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
JUDY CHU, California
MARC VEASEY, Texas
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

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CONTENTS
OPENING STATEMENTS
Page
Hon. Nydia Velázquez ............................................................................................. 1
Hon. Steve Chabot ................................................................................................... 2

APPENDIX
Additional Material for the Record:
H.R. 6079, ’Microloan Improvement Act of 2020’ .......................................... 13
H.R. 6078, ’Microloan Transparency and Accountability Act of 2020’ ......... 20
H.R. 6133, ’Step Improvement Act of 2020’ .................................................... 25
H.R. 6021, ’Northern Mariana Islands Small Business Development Act’ .. 33

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MARKUP OF: H.R. 6079, ‘‘MICROLOAN IM-
PROVEMENT ACT OF 2020’’ H.R. 6078,
‘‘MICROLOAN TRANSPARENCY AND AC-
COUNTABILITY ACT OF 2020’’ H.R. 6133,
‘‘STEP IMPROVEMENT ACT OF 2020’’ H.R.
6021, ‘‘NORTHERN MARIANA ISLANDS SMALL
BUSINESS DEVELOPMENT ACT’’

WEDNESDAY, MARCH 11, 2020

HOUSE OF REPRESENTATIVES,
COMMITTEE ON SMALL BUSINESS,
Washington, DC.
The committee met, pursuant to call, at 11:34 a.m., in Room
2360, Rayburn House Office Building. Hon. Nydia Velázquez
[chairwoman of the Committee] presiding.
Present: Representatives Velázquez, Finkenauer, Golden, Kim,
Crow, Davids, Evans, Schneider, Espaillat, Delgado, Houlahan,
Craig, Chabot, Radewagen, Hern, Hagedorn, Stauber, Burchett,
Joyce, and Bishop.
Also Present: Representative Sablan.
Chairwoman VELÁZQUEZ. Welcome to our first markup of the
Second Session of the 116th Congress. Today, we will be consid-
ering four bipartisan bills: two of them modernizing the Microloan
program, and another will give small businesses the tools they
need to enter and thrive in the global marketplace. The last bill
will ensure that 1,7000 small businesses that employ 18,000 people
in the Commonwealth of the Northern Mariana Islands will have
access to valuable SBA programs and resources.
Before we get down to business, I would like to take a moment
to thank the Ranking Member and his staff and all of the Members
of the Small Business Committee for their tireless bipartisan work
on behalf of small businesses.
Over the course of the past year, our committee has held a num-
ber of hearings to review programs at SBA. We have heard from
Administrator Carranza and her team of associate administrators,
Inspector General Ware, and small businesses throughout the
country to determine what is working well and what can be im-
proved at SBA.
The four bills that we are considering today are a plethora of
hard work. They will make much needed improvements to SBA
programs to make it easier for entrepreneurs to grow their small
businesses.
With that, let us turn to the bills under consideration.
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H.R. 6079, the Microloan Improvement Act of 2020, introduced
by Mr. Kim and cosponsored by Mr. Burchett; H.R. 6078, the
Microloan Transparency and Accountability Act of 2020, introduced
by Mr. Burchett and cosponsored by Mr. Kim; H.R. 6133, the State
Trade Expansion Program Improvement Act of 2020, introduced by
Ms. Finkenauer and cosponsored by Mr. Spano; and H.R. 6021, the
Northern Mariana Islands Small Business Development Act, intro-
duced by Mr. Sablan of the Commonwealth of Northern Mariana
Islands and cosponsored by Ms. Radewagen of American Samoa.
All of today’s bills are a result of the committee’s commitment to
bipartisanship, and I urge Members to support them.
I would now like to recognize our Ranking Member, Mr. Chabot,
for his opening remarks.
Mr. CHABOT. Thank you, Madam Chair, for holding today’s
meeting. Again, I appreciate your willingness to work with me and
with all the Members on our side, as well as our staff in such a
bipartisan manner.
All four of these bills are led by Members of both parties, which
has become standard practice in our committee, and we thank you
for that.
I will be brief in my opening as we will discuss each bill as it
is called.
Before we begin, I want to say that work here in our committee
continues to be of critical importance.
Just yesterday, for an example, we held an exceptional hearing
where we discussed, in depth, the effect coronavirus is having on
American’s small businesses and could have in the immediate and
long-term future.
As each of us know here in this committee, as the small business
economy goes, so goes our national economy.
Because of the coronavirus pandemic, small firms are suffering
from significant supply chain disruptions, economic uncertainty,
and a generalized sense of concern.
Historically, such sentiments do not bode well for business, and
especially small business. Without question, the health of our citi-
zens is our number one priority, but in this committee our respon-
sibility is to continue to seek out ways to help small firms and their
employees navigate difficult times such as these.
Today, we have the opportunity to advance four bills that
strengthen several initiatives administered through the Small
Business Act. I support each of these measures and thank each of
our Members, both republican and democratic alike, for their lead-
ership and work on these bills.
I yield back.
Chairwoman VELÁZQUEZ. Thank you, very much. The gen-
tleman yields back.
Before we get into the individual bills, are there any Members
present who seek recognition for the purposes of making an open-
ing statement?
H.R. 6079
Our first bill today is H.R. 6079, the Microloan Improvement Act
introduced by Mr. Kim and cosponsored by Mr. Burchett. The bill
enhances the Microloan program, which has been a lifeline of af-

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fordable capital for thousands of aspiring entrepreneurs each yeah,
especially those from underserved communities.
I would like to now recognize the gentleman from New Jersey,
Mr. Kim, the sponsor of the bill, for an opening statement.
Mr. KIM. Thank you, Chairwoman. Thank you to my colleague
from Tennessee, Mr. Burchett, for working across the aisle with me
on this important legislation that will modernize SBA’s Microloan
program.
Many entrepreneurs, especially those from underserved commu-
nities, have great difficulty in securing much-needed capital for
their businesses. For these individuals, traditional loans may be
out of reach. The Microloan program helps to alleviate this problem
by extending business loans and technical support to entre-
preneurs.
Earlier this month, I chaired a hearing under the Subcommittee
on Economic Growth, Tax, and Capital Access, which examined the
SBA’s Microloan program where we heard testimony that rein-
forced the immense value of this program. The program has mean-
ingfully improved the well-being of tens of thousands of businesses
nationwide.
In my district alone, 198 businesses received microloans in the
total amount of almost $3.25 million in fiscal year 2019. Without
these microloans, many of these entrepreneurs would be unable to
pay bills, would have to cut staff, or worse, shut their doors.
However, the program in its present form is not without its
faults. Many of the shortcomings of the program stem from the fact
that it is long overdue for modernization.
A common critique form participating lenders is that antiquated
rules unnecessarily restrict their lending activity. To resolve this
and other concerns regarding the Microloan program, Mr. Burchett
and I introduced the Microloan Improvement Act. In short, this bill
seeks to inject the program with much-needed flexibility that will
ease access to capital for small business owners.
This bill is an important step toward improving a program that
has been critical to the success of small businesses. I thank this
committee for its support of these efforts, and I look forward to a
new chapter for the Microloans Program.
I yield back.
Chairwoman VELÁZQUEZ. Thank you. The gentleman yields
back.
I now would like to recognize the gentleman from Tennessee, Mr.
Burchett, the cosponsor of the bill, for an opening statement.
Mr. BURCHETT. Which bill are we on? We are on 6079?
Chairwoman VELÁZQUEZ. Correct.
Mr. BURCHETT. Okay, great.
Well, thank you Madam Chair. I appreciate you and the Ranking
Member’s leadership on this issue, and I was happy to work with
Mr. Kim on the Microloan Improvement Act in order to help grow
small businesses in our rural areas. I ask for overwhelming sup-
port. I do want to thank our staffs for all the hard work they do
both sides of the aisle. They seem to do all the work and we get
all the credit, so it would be nice to recognize them at this time.
I also want to thank everybody for their support.

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I yield the remainder of my hard-earned time. Back to you,
Chairlady.
Chairwoman VELÁZQUEZ. Thank the gentleman. The gen-
tleman yields back.
Now are there any other Members who wish to be recognized for
a statement on H.R. 6079?
I now recognize the Ranking Member.
Mr. CHABOT. Thank you, Madam Chair. I will be brief.
To assist small dollar borrowers, the SBA offers the Microloan
program, where small businesses can receive loans of $50,000 or
less from nonprofit intermediaries. Beyond financing, the Microloan
program also requires the nonprofit intermediaries to deliver tech-
nical assistance in counseling small business borrowers.
I want to thank Mr. Kim from New Jersey, and Mr. Burchett
from Tennessee, for working in a bipartisan manner to introduce
this bill. H.R. 6079 updates and modernizes outdated provisions in
the Microloan program, such as the 155th rule, while also adding
key flexibility requirements. I fully support this commonsense leg-
islation and urge my colleagues to vote yes.
I yield back.
Chairwoman VELÁZQUEZ. The gentleman yields back.
I now recognize myself briefly.
The Microloan program provides funding to nonprofit, inter-
mediary lenders, who in turn lend to very small businesses and
startups that are not ready for bank loans.
These intermediaries help small businesses succeed by providing
training and technical assistance. Mr. Kim put forth a bill designed
to make it easier for microloan intermediaries to provide affordable
capital to existing microbusinesses and prospective entrepreneurs.
Notably, the bill illuminates the owners 155th rule.
I want to thank Mr. Kim and Mr. Burchett for their leadership
on this issue, and I encourage all my colleagues to vote yes.
I would like to ask unanimous consent to submit letters of sup-
port from friends of the Microloan program, AEO, WIPP, that are
for our microloan bills today.
So ordered.
If there is no further discussion, the committee will come to con-
sideration of H.R. 6079.
The clerk will read the report of the title of the bill.
The CLERK. H.R. 6079, the Microloan Improvement Act.
Chairwoman VELÁZQUEZ. Without objection, H.R. 6079 is con-
sidered as read and open for amendment at any time.
Are there any Members who wish to offer an amendment?
Seeing none, the question is now on H.R. 6079.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the chair, the ayes have it.
H.R. 6079 is agreed to.
The question now occurs on reporting H.R. 6079 to the House.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it, and H.R. 6079 is
reported to the House.

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Without objection, the committee staff is authorized to correct
punctuation, make other necessary technical corrections, and con-
forming changes.
Members have 2 days to file additional supplemental, dissenting,
and minority views.
H.R. 6078
Our second bill today is H.R. 6078, the Microloan Transparency
and Accountability Act introduced by Mr. Burchett and cosponsored
by Mr. Kim. These bills offer incentives to microloan intermediaries
to provide management assistance to rural entrepreneurs.
I would now like to recognize the gentleman from Tennessee, Mr.
Burchett, around an opening statement on H.R. 6079.
Mr. BURCHETT. Thank you, Chairlady and Ranking Member. I
really do appreciate you all’s leadership and allowing us to bring
these important issues forward.
I am also thanking you all’s staffs and our staffs that really do
great work, and I am very appreciative of it.
Do you have to have an end course to get the results that I think
we are getting for American small business owners?
Again, I want to thank my colleague, Mr. Kim. That will be Kim
Tim in 2020 could be the new slogan. I do not know. His work with
me on this bill, the Microloan Transparency and Accountability
Act, this legislation would incentivize microloan intermediaries to
involve themselves in rural small business and the Microloan pro-
gram, while also improving the transparency on how taxpayer dol-
lars are being spent at the SBA. Expanding the program is essen-
tial to small businesses in rural areas, but ensuring the account-
ability is also important.
I ask for everyone’s support. Once again, I yield the remainder
of my hard-earned time back to the committee, as long as we all
endorse the Kim Tim 2020 plan. Thank you.
Chairwoman VELÁZQUEZ. The gentleman yields back.
Now I would like to recognize the cosponsor of the bill, the gen-
tleman from New Jersey, Mr. Kim.
Mr. KIM. Thank you, Chairwoman. Just to make sure, so I am
at the top of the ticket?
Mr. BURCHETT. Yes, sir. I do not really want all that hassle.
Mr. KIM. You just want to be in the mix there.
Mr. BURCHETT. Yeah, you know.
Chairwoman VELÁZQUEZ. I endorse that.
Mr. BURCHETT. The occasional picture in front of the Christ-
mas tree at Christmas time.
Mr. KIM. We will get our staff to work out the details.
Chairwoman VELÁZQUEZ. Two minutes remain.
Mr. BURCHETT. Chairlady, you are out of order.
Mr. KIM. It has been really great working with my colleague
from Tennessee on these bills, trying to find ways that we can
move the needle forward, and this was a great example of, again,
just finding something very tangible, something very specific that
we can build off of.
I really think that this is something that is very much needed.
The studies are showing the rural businesses, especially those in
the developmental stages, are in particular need of the strategic
support.

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For this bill to be able to have the bonus 5 percent technical as-
sistance grant to intermediary servicing rural areas, these are the
types of things that are just real tangible things that can move the
needle forward.
It has been a pleasure working with Mr. Burchett on this, and
we are going to do Kim Tim 2020.
I yield back. Thanks a lot.
Chairwoman VELÁZQUEZ. The gentleman yields back.
Now we recognize the Ranking Member, Mr. Chabot.
Mr. CHABOT. Thank you, Madam Chair.
I would suggest that the gentleman that has just been talking
should include Mr. Hagedorn. Then we would have the Kim Tim
and Jim Plan. So there you go.
To enhance the dissemination of microloans in rural areas—do
we have another one?
Chairwoman VELÁZQUEZ. That was a boom.
Mr. CHABOT. Maybe I should just yield back my time now.
Specifically, H.R. 6078 gives microloan intermediaries that serv-
ice rural communities the opportunity to receive bonus technical
assistance grants. Additionally, it requires the SBA to conduct an
annual portfolio risk analysis to ensure the growing program is
protecting and safeguarding taxpayer dollars.
I would like to thank Mr. Burchett and Mr. Kim for working to-
gether to protect American taxpayer dollars and to ensure our
rural communities utilize this program to its fullest.
I yield back my time.
Chairwoman VELÁZQUEZ. The gentleman yields back.
Now I recognize myself briefly.
Earlier this Congress, this committee held hearings on the pro-
gram where, among other things, we heard about the challenges
that intermediaries face in providing technical assistance, espe-
cially in rural areas. Intermediaries must drive 2 hours or more to
a borrower’s place of business to conduct training, which can be ex-
pensive.
These costs all come out of the intermediaries’ bottom line and
the measure the gentleman from Tennessee has put forward to
make numbers with at least 25 percent of their loan portfolio in
rural areas eligible for a bonus technical assistance grant is a rea-
sonable one that I support and will encourage my colleagues to
support.
I thank both Mr. Burchett and Mr. Kim, and I urge a yes vote.
I yield back the balance of my time.
If there is no further discussion, the committee will come to con-
sideration of H.R. 6078.
The clerk will read the report of the title of the bill.
The CLERK. H.R. 6078, the Microloan Transparency——
Chairwoman VELÁZQUEZ. Without objection, H.R. 6078 is con-
sidered as read and open for amendment at any time.
Does anyone wish to offer an amendment?
Seeing none, the question is now on H.R. 6078.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it.
H.R. 6078 is agreed to.

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The question now occurs on reporting H.R. 6078 to the House.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it.
H.R. 6078 is reported to the House.
Without objection, the committee staff is authorized to correct
punctuation, make other necessary technical corrections, and con-
forming changes.
Members have 2 days to file additional supplemental, dissenting,
and minority views.
H.R. 6133
The third bill that we are considering today is H.R. 6133, the
STEP Improvement Act of 2020 introduced by Ms. Finkenauer and
cosponsored by Mr. Spano.¢This bill reauthorizes the State Trade
Expansion Program (STEP) through 2024 and makes important im-
provements to streamline the application process and provides
states with increased flexibility to use funds.
I would now like to recognize the gentlewoman from Iowa, Ms.
Finkenauer, the sponsor of the bill, for an opening statement.
Ms. FINKENAUER. Thank you, Madam Chair.
As the Congresswoman from Iowa’s 1st Congressional District, I
know firsthand that for our small businesses, the ability to access
new markets and export goods promotes economic successes at
home and in our communities.
Given the importance of trade in my home state, especially for
our farmers and our small business owners, who our farmers are
also small business owners and manufacturers, I have made it a
priority to improve and strengthen the State Trade Expansion Pro-
gram.
The State Trade Expansion Program gives small businesses the
tools they need to start exporting and expanding into new markets.
Many small businesses operate with razor-thin margins and only
have a few employees. They do not always have the resources to
attend a new trade show, design an international marketing cam-
paign, or navigate foreign countries’ complex rules and regulations.
That is where the State Trade Expansion Program comes in. It
is important that we reauthorize this program before it expires at
the end of September. At the same time, we also need to fix some
of the program’s administrative challenges which we have heard
about from folks in Iowa, from folks who have come to testify in
front of our committee and other stakeholders.
In the Rural Development, Agriculture, Trade, and Entrepre-
neurship Subcommittee that I chair with Ranking Member, Dr.
Joyce, we held two hearings, actually, dedicated to better under-
standing and addressing the challenges that have come up with the
State Trade Expansion Program. I also have a roundtable in my
district to hear from the Iowa Economic Development Authority
and small businesses that have used this program and used it suc-
cessfully. What we heard was that the State Trade Expansion Pro-
gram (STEP) is a great resource for our states. But we also heard
about very confusing application process, really tight timelines, and
poor communication from staff at the Small Business Administra-
tion.

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That is why today, taking all the feedback I have heard here in
D.C., and especially back at home, I am proud to introduce the
STEP Improvement Act of 2020. This bill will reauthorize the State
Trade Expansion Program for 4 more years and make improve-
ments, like creating a standard timeline and timeframe for applica-
tions, opening more channels for input and communication between
the Small Business Administration and the states, and collecting
better data on how the program helps our small businesses.
I want to thank my colleague, Mr. Spano, who is introducing this
legislation with me today, you know, this is a bipartisan issue, one
that we have been happy to work on bipartisanly in Congress, you
know, this last year, but for many years prior to this as well when
this program was originally created, and I am glad we were able
to work across the aisle again to get this done today.
I urge all Members of this committee to support this bill.
With that, Madam Chair, I yield back.
Chairwoman VELÁZQUEZ. Thank you. The gentlelady yields
back.
Are there any other Members who wish to be recognized for a
statement on H.R. 6133?
The Ranking Member is recognized for 5 minutes.
Mr. CHABOT. Thank you, Madam Chair. I would like to thank
Ms. Finkenauer and Mr. Spano for their leadership on this legisla-
tion.
H.R. 6133, the STEP Improvement Act of 2020, will reauthorize
the SBA’s State Trade Expansion Program for the next 4 fiscal
years. The program facilitates small business participation and
trade missions, ensures international marketing efforts, workshops,
and other promotional activities.
Since its establishment as a pilot initiative in 2010, STEP has
been subject to numerous oversight reports issued by the GAO and
the SBA’s Office of the Inspector General. This committee has care-
fully reviewed each report and collected feedback from stakeholders
to determine the reforms included within the STEP reauthoriza-
tion. State trade agencies and the State International Development
Organization have sent in letters of support for the bill.
H.R. 6133 reinforces our commitment to seeing the SBA fulfill its
goals relating to the STEP program and maximizes every dollar to
help small businesses reach their potential in the international
market. The bill provides greater flexibility to state trade agencies
and enhances accountability at the SBA, a balance that will greatly
improve program functions.
Therefore, I would support this legislation and urge my col-
leagues to do so on both sides and yield back my time.
Chairwoman VELÁZQUEZ. Thank you. The gentleman yields
back.
Now I recognize myself briefly.
First, I would like to commend Representative Finkenauer for
the work she did as the Chair of the Rural Development, Agri-
culture, Trade, and Entrepreneurship Subcommittee, which held
two substantive hearings on STEP. This bill is a product of those
efforts and a tremendous amount of hard work.

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The State Trade Expansion Program helps small businesses
navigate the complexities of an international marketplace and is an
invaluable tool for small businesses looking to export.
In fiscal year 2019, SBA supported $974 million in export sales
from STEP. While impressive, more can be done to help small busi-
nesses access new markets and export goods abroad and in turn
boost our local economies at home. This bill delivers on the commit-
tee’s priority to expand exporting opportunities and ensures small
businesses have the resources they need to compete abroad.
I thank Ms. Finkenauer and Mr. Spano for their leadership, and
I urge my colleagues to support this bill.
I ask unanimous consent to enter a letter of support from the
State International Development Organizations.
Without objection.
If there is no further discussion, the committee will move to con-
sideration of H.R. 6133.
The clerk will read the report of the title of the bill.
The CLERK. H.R. 6133, the——
Chairwoman VELÁZQUEZ. Without objection, H.R. 6133 is con-
sidered as read and open for amendment at any point.
Are there any Members who wish to offer an amendment?
Seeing none, the question is now on H.R. 6133.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it.
H.R. 6133 is agreed to.
The question now occurs on reporting H.R. 6133 to the House.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it.
H.R. 6133 is reported to the House.
Without objection, the committee staff is authorized to correct
punctuation, make other necessary technical corrections, and con-
forming changes.
Members have 2 days to file additional supplemental, dissenting,
and minority views.
H.R. 6021
The final bill before us today is H.R. 6021, the Northern Mariana
Islands Small Business Development Act, sponsored by Mr. Sablan
of the Commonwealth of the Northern Mariana Islands, and co-
sponsored by Ms. Radewagen of American Samoa.
This bill takes the long-overdue step of including the Common-
wealth of the Northern Mariana Islands in the Small Business De-
velopment Center programs and the FAST program.
I would now like to recognize the bill’s sponsor, the gentleman
from the Commonwealth of the Northern Mariana Islands, Mr.
Sablan, for an opening statement.
Mr. SABLAN. Thank you very much Chairwoman Velázquez,
Ranking Member Chabot, and Members of the committee, for al-
lowing me to sit in and explain my view on H.R. 6021.
Thank you for your leadership supporting small businesses and
for including my bill, the Northern Mariana Islands Small Busi-
ness Development Act in today’s markup.

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My bill ensures the 1,700 small businesses in the Marianas are
eligible for grants through the Small Business Development Center
Program and through FAST, the Federal and State Technology
Program.
The Marianas is the only place in the United States not included
in these programs which help small businesses access the knowl-
edge and capital needed to compete successfully for federal con-
tracting opportunities. My bill would correct that by ensuring ac-
cess on the same basis as their counterparts across the nation.
Under H.R. 6021, the Marianas can apply to establish a lead
SBDC, which would make available renewable funding to expand
the reach and capacity of the existing SBDC service center on
Saipan.
With additional funding, small businesses on Saipan, Tinian, and
Rota, the three mostly inhabited islands in the Marianas, will have
better access to free or low-cost services such as incubator work-
spaces for entrepreneurs, business planning, operations, and other
areas required for small business growth and success.
H.R. 6021 would also help our small businesses participate in
federal research and development opportunities.
My bill does this by including the Marianas in the SBA’s FAST
program which funds outreach and assistance to small businesses
interested in competing for the Small Business Innovation Re-
search and Small Business Technology Transfer programs.
I want to also thank the committee for including a provision from
my bill H.R. 2603, into H.R. 6079, the Microloan Improvement Act
just voted for reporting to the House.
My provision would provide Marianas small business owners ac-
cess to the SBA’s Microloan program.
SBA microloans provide up to $50,000 typically not offered by
banks for working capital or the acquisition of materials, supplies,
or equipment. This program also provides marketing, management,
and technical assistance to assist women, low-income and veteran
entrepreneurs in my district.
Both H.R. 6021 and H.R. 6079 provide the small businesses in
my district access to the full range of SBA resources needed to help
our economy and help aspiring entrepreneurs make their dreams
of small business ownership a reality.
I would like to thank the gentlelady from American Samoa for
cosponsoring my bill H.R. 6021.
Madam Chair, I yield back the remainder of my time. I urge
members of the committee to support H.R. 6021. I yield back.
Thank you.
Chairwoman VELÁZQUEZ. Thank you. The gentleman yields
back.
I would now like to recognize the bill cosponsor, the gentlewoman
from American Samoa, Ms. Radewagen, for an opening statement.
Ms. RADEWAGEN. Talofa and Hofa Adai.
Today, I am proud to speak in support of H.R. 6021, the North-
ern Mariana Islands Small Business Development Act. This bill
would allow the Northern Mariana Islands to establish a Small
Business Development Center and gain access to other Small Busi-
ness Administration programs. As of right now, the Northern Mari-

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anas is the only territory that does not have an SBDC, and I urge
all my colleagues to support this bill.
I yield back, Madam Chair.
Chairwoman VELÁZQUEZ. The gentlelady yields back.
Are there any other Members that wish——
The Ranking Member is recognized for 5 minutes.
Mr. CHABOT. Thank you, Madam Chair, and I will be brief.
I would like to congratulate and thank Mr. Sablan and Ms.
Radewagen for their leadership on this legislation. I want to also
thank you, Madam Chairwoman.
Our last bill is one that extends a matter of simple fairness to
American citizens. Currently, the Northern Mariana Islands, part
of the United States since 1975, is the only U.S. jurisdiction not in-
cluded for eligibility in certain SBA programs, such as the very im-
portant SBDC Lead Center Grant program. The Northern Mariana
Islands 55,000 inhabitants deserve the same access to SBA pro-
grams as any other American citizens, and this bill ensures that
they do have that.
It is quite simple, bipartisan, and it is a just piece of legislation.
I urge my colleagues to support it. Again, I thank Mr. Sablan and
Ms. Radewagen, and I yield back.
Chairwoman VELÁZQUEZ. The gentleman yields back.
Now I recognize myself briefly.
First, I would like to commend Mr. Sablan and Ms. Radewagen
for their work on this bill. Mr. Sablan, it is true that representa-
tion matters. I am sorry that it took this long to bring fairness and
access to all the programs that exist under the Small Business Ad-
ministration. That should be the rule in every federal agency—that
we open all of the programs to American citizens.
With that, if there is any further discussion, the committee will
move on to consideration of H.R. 6021.
The clerk will read the report of the title of the bill.
The CLERK. H.R. 6021, the Northern Mariana——
Chairwoman VELÁZQUEZ. Without objection, H.R. 6021 is con-
sidered as read and open for amendment at any time.
Does anyone wish to offer an amendment?
Seeing none, the question is now on H.R. 6021.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it.
H.R. 6021 is agreed to.
The question now occurs on reporting H.R. 6021 to the House.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it.
H.R. 6021 is reported to the House.
Without objection, the committee staff is authorized to correct
punctuation, make other necessary technical corrections, and con-
forming changes.
Members have 2 days to file additional supplemental, dissenting,
and minority views.
I would like to thank all of the Members for their participation
today. If there is no further business to come before the committee,
we are adjourned. Thank you.

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[Whereupon, at 12:09 p.m., the committee was adjourned.]

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APPENDIX

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