From Nothing to Something: The Story of the American Dream — Committee on Small Business (February 28, 2023)
Summary
Transcript of the hearing From Nothing to Something: The Story of the American Dream, before the Committee on Small Business, United States House of Representatives, on February 28, 2023 (Small Business Committee Document Number 118–002). Hon. Roger Williams, chairman of the Committee, presided and calls it the first hearing of the Committee on Small Business for the 118th Congress. Witnesses were Ms. Zan Prince, Chairman of the Board, First Bank Texas; Mr. Drew Davis of Crippling Hot Sauce; Mr. Roy Heim, President, Heim Construction Company; and Ms. Corrine Hendrickson of Corrine’s Little Explorers. The contents list no questions or answers for the record and no additional material, and the committee adjourned at 11:46 a.m.
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“From Nothing to Something: The Story of the American Dream — Committee on Small Business (February 28, 2023).”
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FROM NOTHING TO SOMETHING: THE STORY
OF THE AMERICAN DREAM
HEARING
BEFORE THE
COMMITTEE ON SMALL BUSINESS
UNITED STATES
HOUSE OF REPRESENTATIVES
ONE HUNDRED EIGHTEENTH CONGRESS
FIRST SESSION
HEARING HELD
FEBRUARY 28, 2023
Small Business Committee Document Number 118–002
Available via the GPO Website: www.govinfo.gov
U.S. GOVERNMENT PUBLISHING OFFICE
51–185 WASHINGTON : 2023
HOUSE COMMITTEE ON SMALL BUSINESS
ROGER WILLIAMS, Texas, Chairman
BLAINE LUETKEMEYER, Missouri
PETE STAUBER, Minnesota
DAN MEUSER, Pennsylvania
BETH VAN DUYNE, Texas
MARIA SALAZAR, Florida
TRACEY MANN, Kansas
JACK ELLZEY, Texas
MARC MOLINARO, New York
MARK ALFORD, Missouri
ELI CRANE, Arizona
AARON BEAN, Florida
WESLEY HUNT, Texas
NICK LALOTA, New York
NYDIA VELÁZQUEZ, New York, Ranking Member
JARED GOLDEN, Maine
KWEISI MFUME, Maryland
DEAN PHILLIPS, Minnesota
GREG LANDSMAN, Ohio
MORGAN MCGARVEY, Kentucky
MARIE GLUESENKAMP PEREZ, Washington
HILLARY SCHOLTEN, Michigan
SHRI THANEDAR, Michigan
JUDY CHU, California
SHARICE DAVIDS, Kansas
CHRIS PAPPAS, New Hampshire
BEN JOHNSON, Majority Staff Director
MELISSA JUNG, Minority Staff Director
(II)
CONTENTS
OPENING STATEMENTS
Page
Hon. Roger Williams ................................................................................................ 1
Hon. Nydia Velázquez ............................................................................................. 2
WITNESSES
Ms. Zan Prince, Chairman of the Board, First Bank Texas ................................ 5
Mr. Drew Davis, Founder and Owner, Crippling Hot Sauce ............................... 7
Mr. Roy Heim, President, Heim Construction Company ..................................... 8
Ms. Corrine Hendrickson, Owner, Corrine’s Little Explorers .............................. 10
APPENDIX
Prepared Statements:
Ms. Zan Prince, Chairman of the Board, First Bank Texas ......................... 35
Mr. Drew Davis, Founder and Owner, Crippling Hot Sauce ........................ 38
Mr. Roy Heim, President, Heim Construction Company .............................. 39
Ms. Corrine Hendrickson, Owner, Corrine’s Little Explorers ...................... 43
Questions for the Record:
None.
Answers for the Record:
None.
Additional Material for the Record:
None.
(III)
FROM NOTHING TO SOMETHING: THE STORY
OF THE AMERICAN DREAM
TUESDAY, FEBRUARY 28, 2023
HOUSE OF REPRESENTATIVES,
COMMITTEE ON SMALL BUSINESS,
Washington, DC.
The Committee met, pursuant to call, at 10:00 a.m., in Room
2360, Rayburn House Office Building, Hon. Roger Williams [chair-
man of the Committee] presiding.
Present: Representatives Williams, Luetkemeyer, Stauber,
Meuser, Van Duyne, Mann, Ellzey, Molinaro, Alford, Bean, Hunt,
LaLota, Velázquez, Mfume, Phillips, Landsman, McGarvey,
Gluesenkamp Perez, Scholten, and Davids.
Chairman WILLIAMS. Opening prayer and pledge. Please bow
your head. Heavenly Father, God of all people, help us, give us the
strength today and energy to make a difference, not only for our
districts, but for this great country. In your name, we pray, amen.
Would you please join me in the pledge?
Okay. All right. I now call the first hearing of the Committee on
Small Business for the 118th Congress to order.
Without objection, the Chair is authorized to declare a recess of
the Committee at any time.
I now recognize myself for my opening statement.
I want to thank our witnesses for being here today and under-
stand that all of you have traveled a long way to share your sto-
ries. We are extremely grateful that you chose to give us your most
precious resource, which is your time, to share your firsthand expe-
riences to inspire others to pursue the American Dream.
As I have said before, this Committee seeks to be a voice for
main street America in Washington. And the goal today is to learn
more about the current state of small businesses from the people
who know it best: our country’s entrepreneurs. And as job creators,
you are the driving force of our nation’s economy, accounting for
more than half the payroll of this entire country. More importantly,
you have the backbone of your local communities, though many of
your struggles often go unnoticed.
I’ve been carrying on my family business for over 50 years and
I understand the highs and the lows of being your own boss. Amer-
ica’s entrepreneurs have confronted numerous historic challenges
over the past few years. The COVID-19 pandemic, out-of-control in-
flation, broken supply chains, high interest rates, and a national
labor shortage. But as the small businesses have done countless
times before, they endure.
(1)
2
Here on this Committee, we will work to create an environment
where businesses can thrive. Small business owners dedicate their
lives and finances to the products and services they bring to the
marketplace. An extra hour of paperwork is one less hour they can
tend to their business. Every inflated tax is an extra dollar that
could have been reinvested back into the business and their com-
munity. Every job vacancy is one more role a small business owner
must cover themselves.
As we listen to these firsthand accounts, we salute the small
businesses who continue to fight and give selflessly back to their
communities. We are eager to enact policy solutions that will help
have a path toward success for both now and success in the future.
I wanted to have this hearing on the American dream first so we
can celebrate the risk takers here today and across the country
who have worked countless days and nights to make their dream
a reality. I am excited to have all of you here today with us, and
I am very much looking forward to today’s hearing.
With that, I want to yield to our distinguished Ranking Member
from New York, Ms. Velázquez.
Ms. VELÁZQUEZ. Thank you, Mr. Chairman. I would like to
welcome all of the witnesses for being able to be here and share
your experiences.
I would also like to welcome all of our new Small Business Com-
mittee Members and welcome back those returning from the 117th
Congress. The story of the American dream has been the story of
our nation’s independent business owners, those who take the reins
of their own destiny, and bring ideas to life in the marketplace.
From the corner store to the tech start-up, these risk takers em-
body the ingenuity and determination to achieve the highest of
American ideals. Not only do they serve as essential economic an-
chors, providing the foundations of our communities, they serve as
the bedrock of our sprawling democracy. They help distribute
wealth and power, promote competition, and provide opportunities
for individuals to achieve financial independence.
Over the past 3 years, the COVID-19 pandemic defined the small
business economy and presented numerous hurdles for our nation’s
entrepreneurs. Congress recognized these firms as a top priority
and knew that there would be no recovery without a robust small
business economy. In the early days of the pandemic, we created
the Paycheck Protection Program and the COVID EIDL program,
providing small firms with the support needed to maintain oper-
ations and protect jobs. A year later, we passed the American Res-
cue Plan, which expanded upon these programs and created new
ones, like the Restaurant Revitalization Fund. These policies help
ensure that main street will lead the way in our economic recovery.
Now, nearly 4 years after the pandemic struck, we are seeing the
fruits of this historic investment. GDP has returned to its pre-pan-
demic trend, up 6.7 percent over the past 2 years. Unemployment
is now the lowest it has been since 1969, with over 12 million jobs
created under the Biden-Harris Administration and over 500,000
created this January alone. Small business has been driving the ro-
bust labor market scene over this past year. According to the Wall
Street Journal, while large businesses lost nearly 800,000 net jobs
since April 2020, small businesses created a net 3.5 million. Most
3
importantly, more and more Americans are turning to entrepre-
neurship. After 40 years of decline, small business applications
shot up, with over 10 million submitted over the past 2 years. This
trend is encouraging, and it signals the determination and resil-
ience of the American people in the face of crisis.
This goes to show, when you prioritize building the economy from
the bottom up and the middle out, American entrepreneurs respond
with results.
However, the road to recovery has had its share of bumps, to say
the least. It is no secret that, despite encouraging trends in recent
months, the costs of running a business remain high. The pan-
demic, alongside geopolitical conflicts, induced enormous global eco-
nomic challenges that have affected businesses, large and small.
Supply chain disruptions and ongoing labor shortages have created
headaches for business owners across the country.
Additionally, surging energy prices due to the conflict in Ukraine
and the price-gouging by some of our nation’s most profitable busi-
nesses, helped push inflation to a 40-year high. Early retirement
during the pandemic and lack of immigration over the past four
years has also decreased the pool of skilled workers from which
small businesses can hire. Democrats tackled this problem head on
by lowering energy costs through the Inflation Reduction Act and
bolstering supply chains with legislation like the CHIPS and
Science Act. Additionally, the Bipartisan Infrastructure Law made
massive strides toward making government contracting by small
minority-owned firms more attainable.
We have made great progress over the past 2 years, but our job
is far from over. I look forward to working with our Members on
both sides of the aisle to address the challenges small firms face
and ensure they remain the top priority of our economy.
With that, Mr. Chairman, thank you for holding this important
hearing.
Chairman WILLIAMS. Thank you. Now, I will introduce our wit-
nesses.
It is my honor today to introduce Zan Prince to today’s hearing.
Ms. Prince has had a long and distinguished career in the Texas
banking industry. Since 1990, Ms. Prince has worked at First Bank
Texas, a locally owned business that traces its founding all the way
back to 1880. For 33 years, Ms. Prince has served the community
in which she also calls home, eventually ascending to her current
role as Chairman of the Board in 2015.
In addition to her work at First Bank Texas, Ms. Prince has been
an integral part and active Member of her local community
through her involvement in numerous nonprofits, chambers of com-
merce, and the Parker County Health Foundation. Her extensive
career and knowledge in local banking make Ms. Prince a tremen-
dously well-informed expert today about the issues facing small
businesses and main street communities today.
So, Ms. Prince, thank you for being here today and joining the
Committee, and I am looking forward to today’s conversation.
I now recognize my colleague, Congressman Luetkemeyer, for 1
minute to briefly introduce his constituent, who is appearing before
us today. Congressman.
Mr. LUETKEMEYER. Thank you, Mr. Chairman.
4
Our next witness is Drew Davis, a native of Hillsboro in Mis-
souri’s Third District, Drew is here today as the owner of Crippling
Hot Sauce.
Drew is a unique witness for a couple of reasons, first being that,
as a small business owner, he is still actually in high school. He
is only 17 years old. Drew also has cerebral palsy, a disability that
inspired his brand’s name and poses various challenges for his day-
to-day life. But Drew has never let his circumstances keep him
from pursuing his dreams. He set his mind to starting a business,
and Crippling Hot Sauce was born with a sense of humor.
Crippling Hot Sauce is made from all local products, from the
vegetables to the labels, and Drew’s business has continued to
grow, selling thousands of bottles from his website and retailers
across our State. Not only is Crippling Hot Sauce a local Missouri-
made business, but it is also a small business with a cause. Five
percent of the proceeds from every bottle goes to cerebral palsy re-
search.
I am very proud of this young and determined entrepreneur that
calls the Third District his home and even prouder to introduce
him to this Committee.
Thank you for making the trip, Drew, and thank his parents for
being here as well today and their support for their fine son’s en-
trepreneurial activity.
I also want to thank the rest of the witnesses for being here as
well.
And with that, Mr. Chairman, I yield back.
Chairman WILLIAMS. Thank you, Mr. Luetkemeyer.
I now recognize my colleague, Congressman Meuser, for 1 minute
to briefly introduce his constituent, who is appearing before us
today.
Mr. MEUSER. Thank you, Mr. Chairman.
r next witness is Mr. Roy Heim. Mr. Heim is the founder and
owner of Heim Construction Company, headquartered in
Orwigsburg, Pennsylvania, in the heart of my Congressional Dis-
trict.
In 1990, Mr. Heim founded his initial business, Roy A. Heim
Construction, hiring just three employees, who still work with
Heim Construction today. After marrying his wife, Deborah, they
founded Heim Construction in 1994. Today, Heim Construction is
a full-service general contracting, design, build, and construction
management firm that builds commercial, industrial, institutional,
and residential facilities. Thanks to their hard work, Heim Con-
struction has gone from hiring just a few employees to now serving
as the livelihood of 65 dedicated and hardworking Pennsylvanians.
Heim helps build everything from dams and streetscapes to hos-
pitals, surgery centers, and dormitory for Penn State, and I have
seen some of the work. Heim Construction is also involved in road
and infrastructure projects throughout Pennsylvania. You could say
Mr. Heim’s business has literally become a pillar of the community.
Roy embodies the spirit of the American entrepreneur and has
spent over 30 years building his successful business in spite of the
many challenges small business feels along the way.
With his diverse set of projects and decades of experience, Mr.
Heim notes firsthand how today’s economic headwinds are impact-
5
ing small businesses like his across America and will provide valu-
able insight into the current state of main street America.
I want to thank Mr. Heim very much for making the trip here
and to all of our witnesses for testifying before this Committee, and
I look forward to today’s conversation.
Appreciate it.
Chairman WILLIAMS. Thank you, Congressman.
Mr. MEUSER. I yield back.
Chairman WILLIAMS. Thank you. I will now recognize the
Ranking Member, Ms. Velázquez, for 1 minute to introduce the last
witness.
Ms. VELÁZQUEZ. Thank you, Mr. Chairman.
Our final witness today is Ms. Corrine Hendrickson. Ms.
Hendrickson has owned and operated Corrine’s Little Explorers
Family Child Care Center in New Glarus, Wisconsin, since 2007
and has been a registered, certified mentor, trainer, and consultant
for early childhood educators and business owners since 2018. She
has served on the Wisconsin Early Childhood Education Board
from 2015 through 2021, including serving as the Board’s president
in 2020. Additionally, she won the Terri Lynne National Childcare
Teacher Award in 2020 and the Wisconsin Family Child Care Pro-
vider of the Year award in 2017.
She currently serves on the Main Street Alliance leadership team
and as secretary for the Green County Childcare Network since
2012. She holds a degree in Elementary Education and is currently
pursuing a master in Infant and Early Childhood Mental Health
through UW Madison.
Thank you, Ms. Hendrickson, for joining us, and we look forward
to hearing your testimony.
Welcome.
Chairman WILLIAMS. Thank you, Ranking Member Velázquez.
And we appreciate all of you being here today, all of you are win-
ners, and thanks for taking time to be here with all of us today.
So, before recognizing each witness for their testimony, I would
like to remind them that the oral testimony is restricted to 5 min-
utes. If you see the light in front of you turn red, that is a danger
sign in front of you. It means your 5 minutes have concluded, and
you should wrap up your testimony. There are no such restrictions
on your written testimony, all of which will be submitted for the
record.
I would now like to recognize Ms. Prince for her 5 minute open-
ing remarks.
Ms. Prince.
STATEMENTS OF ZAN PRINCE, CHAIRMAN OF THE BOARD,
FIRST BANK TEXAS; DREW DAVIS, FOUNDER AND OWNER,
CRIPPLING HOT SAUCE; ROY HEIM, PRESIDENT, HEIM CON-
STRUCTION COMPANY; CORRINE HENDRICKSON, OWNER,
CORRINE’S LITTLE EXPLORERS
STATEMENT OF ZAN PRINCE
Ms. PRINCE. Good morning, Chairman Williams, Ranking Mem-
ber Velázquez, and other Members of the Committee, thank you so
much for the opportunity to share our story with you today.
6
First Bank Texas is a family-owned community bank, the fulfill-
ment of the American dream of Joe Sharp, a man with a strong
foundation of hard work and an entrepreneurial spirit from West
Texas dry land cotton farmer roots. He was a product of strong
faith, family values, and a public education.
First Bank Texas mission statement is to achieve high perform-
ance through our employees to partner with bank customers and
our community to make this a better place for our families and
businesses while demonstrating a kingdom purpose. For us, that
means we take God-given talents coupled with American opportu-
nities to make a difference.
Joe Sharp led our family and a group of investors to Baird,
Texas, in 1982 to acquire a very small community bank. That bank
has grown to a billion in assets, with 14 locations. Our bank is a
small business that has grown and prospered despite ever-increas-
ing regulation and requirements to be fair.
In 1982, bank documents were simple. Over time, we have added
layers of consumer protection that do little to protect consumers.
Fiscal and regulatory policy are important. The 2017 tax cuts, real-
ly all tax cuts, benefit both the bank and customers.
But there are still threats on the horizon. The proposed CFPB
Rule 1071 to collect small business loan data to ensure fair access
to credit by all small business owners misrepresents the lending
market. There are no two small businesses that are alike. If en-
acted, the process for lending to small businesses will be bogged
down in technicalities that ignore creative entrepreneurial plans to
establish or grow a business.
Our organization is grounded in providing access to products and
services without regard to gender or ethnicity. Please remember
that every bank crisis has had adequate laws to hold those ac-
countable, yet every crisis brings more laws and rules.
The 2008 response to the financial crisis is a textbook example.
It should have focused on the cause, big banks, but instead im-
posed costly regulations on community banks.
We have been blessed to be able to serve our communities in
ways that would have never been considered in 1982. We have an
amazing family of employees that are not only committed to our
customers and communities, but committed to individual growth
through bank-sponsored education and training. Our bank has
weathered all kinds of financial conditions since 1880, and through
those trials, we worked with people to survive the challenge. Some
businesses talk about high touch—we live it.
Community banks provided 42 percent of the PPP loans that
gave direct stimulus to main street, and the bank was honored to
participate in that.
Community banks serve the financial needs of small businesses
who employ almost half of the American workers. Small businesses
and community banks are the backbone of the community. They
need reasonable regulations, fair tax code, and access to credit to
provide products and services to their customers. We have all expe-
rienced ups and downs in the economy. Today, many businesses
struggle with the lack of labor, increasing expenses, and supply
chain issues.
7
I would like to introduce you to a couple of small businesses in
our community. The first is run by Sherry Watters. She does hand-
painted items on all sorts of things and sends those not only to cus-
tomers in Weatherford, but all over the country. The second busi-
ness was run by Debra Smith, who recently retired after building
and servicing pools in our area for decades. She employed as many
as 110 people, creating opportunities for both the company and her
employees. Both ladies have built their businesses on hard work
and entrepreneurial spirit, integrity, and excellence that makes our
community great.
Community banks provide 77 percent of all agricultural loans
and over 50 percent of small business loans. We provide community
partnerships that help schools, charities, and all the businesses
that make our communities thrive. Without community banks and
small businesses, who fills the gap? Who makes a difference in our
community? Who provides that which is unique to who we are
today? I encourage you to focus on an environment that creates op-
portunities for these small businesses and community banks.
The United States is the best place in the world to live and work.
I, like you, are dedicated to preserving that which makes America
great.
Thank you for your service to our country and your time today.
I look forward to your questions.
Chairman WILLIAMS. Thank you, Ms. Prince.
Next, I would like to recognize Mr. Davis for his 5 minute open-
ing remarks.
STATEMENT OF DREW DAVIS
Mr. DAVIS. Thanks for having me today.
My name is Drew Davis. I own Crippling Hot Sauce. What origi-
nally started as a school project quickly became more than that.
Crippling Hot Sauce was presented as a business project in my
business class in my junior year. I only got an 82 percent. So, like
any straight A student would do, I went up and asked the teacher
at the time, why? That is why, when he said, I thought it was a
great idea, just a little unrealistic. So, instead of getting mad that
day, I went home. After 1,200 hours and $3,000 in my own money
saved up between Christmas and other occasions, I launched Crip-
pling Hot Sauce.
I started Crippling Hot Sauce with a mission to help break the
stigma between people with disabilities and the able-bodied com-
munity, and show people that we could do whatever we put our
mind to, same with all of you guys. So, after all of that, we
launched and fast-forward to today, 7 months later, we have sold
more than 16,000 bottles and now more than 96 retail locations
across Missouri.
That being said, many small businesses face challenges. Because
of my age and my situation, I have been forced to adapt with many
challenges, one of those being banks. Because of my age, even
though I had an LLC, it was most difficult to set up a business ac-
count and what you need. I had to call every small bank in my
area just to find one that would set me up a business account, even
with a writer.
8
Another challenge was manufacturing. Because I only had $3,000
to my name, finding one with a low enough order quantity was dif-
ficult. I had to call about 15.
The third challenge was just networking, but I have been fortu-
nate enough to been introduced with a bunch of groups, such as the
Missouri Grocers Association and more.
The fourth challenge, of course, was inflation. Inflation has af-
fected the grocer industry significantly. For example, it has forced
my bottles up more than 25 percent since I started. I have been
fortunate enough to grow more, so I have just offset that cost with
higher order amounts. But for many small business owners that
are not as fortunate.
That being said, this opportunity has been really great for me be-
cause learning and bringing myself out of this bubble. And thanks
for Google, thank you, because I wouldn’t ever been here without
Google and being able to research what I did in such a short
amount of time.
And thanks for this opportunity, guys. I really appreciate it.
Chairman WILLIAMS. Thank you.
Mr. DAVIS. They call me Sauce Boss.
Chairman WILLIAMS. We appreciate it. Thank you.
I now recognize Mr. Heim for his 5 minute opening remarks.
STATEMENT OF ROY HEIM
Mr. HEIM. Good morning, Chairman Williams, Ranking Member
Velázquez, and Members of the U.S. House Committee on Small
Business.
First of all, this is not my testimony, but I would like to say con-
gratulations, and great job. I was not a straight A student, by the
way, so you did good. You are better off than me.
So, thank you for the invitation to testify this morning to discuss
the opportunities—or, excuse me—thank you for the invitation to
testify this morning and for the opportunity to discuss the Amer-
ican entrepreneurship and how I started and grew my business. I
would also like to thank all of you on the Committee, all of you
Committee Members, for the hard work you do on behalf of the
small business owners like myself.
My name is Roy Heim. I am the president of Heim Construction
Company, headquartered in Orwigsburg, Pennsylvania, a small
rural town in Eastern PA. Also born and raised there, I am an
elected School Board Member and an appointed Vo-Tech Board
Member for the Blue Mountain High School District in Schuylkill
County, PA. I am also a Board Member of several associations, in-
cluding the Associated Builders and Contractors, the Association of
General Contractors, and the Associated Pennsylvania Contractors,
which is heavy highway contractors.
I attended K through twelve and graduated Blue Mountain High
School. During high school, I was also a carpentry student for four
years at the Schuylkill Technology Center, a Vo-Tech School that
I am still involved with through the School Board. I spent most of
my senior year in high school in a co-op program, where I have
gained knowledge on many aspects of my job in the construction in-
dustry.
9
After high school, I took a job working on infrastructure projects
in Pennsylvania. A few years before, I was given the opportunity
to move to Homer, Alaska, to work on the Bradley Lake Hydraulic
Project. The Project, which is still an active energy producer, in-
volved in boring a 3.5-mile tunnel with a diameter of 24 feet and
constructing a brand new 610-foot long, 125-foot high, concrete-
faced and rock-filled gravity dam, all at the bottom of a glacier. I
spent approximately 2 years on the project, gaining invaluable ex-
perience.
Upon returning home, I worked for a concrete contractor for ap-
proximately 6 months before leaving to start up my own business
as a small general contractor in 1991.
Heim Construction started with two to three employees and has
been growing ever since. Today, Heim Construction is a construc-
tion management, design builds, construction general contractor,
concrete service company that does millions of dollars of public and
private work, including many state, federal, and federally assisted,
funded projects. We have been in business for 30 years and cur-
rently employ approximately 95 wonderful men and women.
Over many years that we have been in business, the number of
federal and state regulatory requirements surrounding the con-
struction industry has also grown significantly. We spend an enor-
mous amount of time and money to stay compliant, employing 15
full-time employees in our office who work countless hours to en-
sure we remain in compliance with the forever-changing regula-
tions. Many of these laws and regulations, while well-intended,
make it much more difficult, if not impossible, for small businesses
to comply, complete, and survive, let alone profit.
Another issue threatening a small business like mine is tying of
state and federal construction funding to special interests. Today,
the merit shop contractors, which would be non-union labor forces
employ more than 88 percent of all professionalisms in the con-
struction industry. For example, when the federal government
issues Executive Orders or passes regulations mandating or
prioritizing PLAs, which are project labor agreements, it can tie the
federal funds to use of union-only labor and discriminates against
nearly 88 percent of the contractors whose workers have made a
decision not to join a union. This eliminates a fair and open com-
petition among contractors, harmful to the construction industry,
its workers, and ultimately taxpayers who pay more because of the
limited resources and competition. That 88 percent is the heart of
small business community in the construction industry that you
are here to protect and help and thrive.
I have a relationship with the unions. I hire them, they hire me.
We do jobs across the state together. There is no reason to mandate
union-only labor when we can compete and work together with
each other.
An additional issue facing a small business like mine is the Build
America, Buy America Acts. While we fully support the intentions
behind the Act to keep jobs and manufacturing in our country, the
recent modification and amendments and legal decisions and the
Executive Branch actions surrounding these Acts have left even the
federal officials confused on how to get the projects completed and
to ensure compliance. The law fails to consider the limitations on
10
supply chains’ ability to supply all the components needed to con-
struct federal construction projects. All of us have felt how fragile
the supply chain can be through COVID. The contractor’s ability to
fully comply with these Acts will require transitioning from global
supply chain to a U.S.-based one that is not fully capable of han-
dling the demand. Congress and the Biden Administration need to
act immediately to add flexibility to the form of exemptions.
And I know I am running out of time, Chairman, but I will skip
over.
So, while these are just some of the implications of each regu-
latory obstacle, I have attached a non-exhaustive list of federal and
state regulatory requirements that impact construction industry
jobs created.
So, I want to thank you again for the opportunity to serve as a
witness, and I look forward to answering any of your questions you
may have.
Chairman WILLIAMS. Thank you.
Now, I recognize Ms. Hendrickson for 5 minutes.
STATEMENT OF CORRINE HENDRICKSON
Ms. HENDRICKSON. My name is Corrine Hendrickson, and I
have owned and operated Corrine’s Little Explorers Family Child
Care in rural New Glarus, Wisconsin, for about 15 years. I have
been a Member of Main Street Alliance for 2. Thank you for invit-
ing me to speak to you today about my small business and not only
my American Dream, but the ability of those I work with to
achieve theirs.
The only reason I can be here today is because I was able to hire
a couple of substitutes last year utilizing federal rescue fund dol-
lars, thereby increasing the wage I could offer by $3 an hour and
a monthly bonus of $250. This allows me to go to appointments,
take classes, and appear before you today without closing my busi-
ness, subsequently allowing parents to work. However, my one sub-
stitute finished her Master’s in Social work, and my second one has
been offered a full time manufacturing job that pays substantially
more than I can, with benefits. So she gave her notice. I cannot
compete.
I began my American dream wanting to become a teacher. After
I graduated with a teaching license into a 2001 recession job mar-
ket, I substitute taught and worked in retail so my fiancé and I
could buy a home. It was possible then because we had one very
minimal student loan to pay off with 3 percent interest that went
down if you paid on time, and homes were far more affordable com-
pared to starting career wages. Compare that to today, when large
corporations and investors have driven prices up exponentially, in-
creasing our home value this year by about 15 percent or $50,000.
In summer 2007, when our son was 6 months old, some friends
and I were together for our usual Monday evening dinner while our
volunteer firefighter husbands were at meetings. And the three of
them were very pregnant and unable to find care only wait lists.
I was now the head store manager and offered to quit and start
a family childcare business.
Because of the parents’ lack of access to paid family medical
leave, I opened my business only 6 weeks after the first two were
11
born and 2 days after leaving my retail job. Had we been renting,
my dream most likely would have ended before it started. Due to
liability reasons, most landlords don’t allow family childcare in
their rental. Liability insurance is expensive and becoming more
difficult for licensed group and family childcare businesses. Over
the last 2 years, prices have risen drastically or non-renewal no-
tices are being sent instead of bills.
Furthermore, childcare as a business plan has a notoriously low
profit margin, so purchasing a home would have been impossible
without any access to capital. On average, parents pay more than
college tuition for one infant or toddler enrolled in care. Moreover,
for 2 or more children, it is more than their mortgage or rent be-
cause fixed costs for food, liability insurance, rent, utilities, toys
and books that need to be replaced, continuing education, licensing
costs, et cetera, are extremely high for childcare businesses. This
leaves little left for profit or wages. Many of those fixed costs are
increasing due to the lack of enforcement of our price gouging and
anti-monopoly laws enabling corporate concentration by pushing
out competition, lowering quality, while raising the prices.
Early care and education businesses are the corner for all other
small businesses as key to workforce development and the economy
both today and in the future by caring for and educating young
children while parents work, continue their education, and pursue
their American dreams.
Secondly, my business product is children. We create tomorrow’s
workforce and future business owners. The first 5 years of a child’s
life are when 90 percent of brain development happens, laying the
foundational skills of self esteem, self awareness, self control, crit-
ical thinking, creativity, collaboration and curiosity by curating,
play based environments that are child centered and teacher sup-
ported—all skills that my fellow small business owners state they
need in our workforce and are lacking. This is detrimental to the
future ingenuity and competitiveness necessary to pursue the
American dream.
By investing in childcare, our rural economy’s decline can be re-
versed drastically and replace the 90,000 family childcare busi-
nesses lost between 2010 and 2019. Since COVID, investments to
all small businesses and to parents in the form of increased tax
credits and deductions increase the affordability of having children.
Without the PPP, I probably wouldn’t still be in business. In-
creased investment in childcare due to COVID has increased wages
and viability for childcare businesses. Significantly raising wages
without also raising tuition has been possible.
Empty classrooms are reopening since our employees are staying
and coming into the field. However, once the federal ARPA funding
runs out, if the state and federal government refuses to continue
investing, I will be raising my rates 25 percent a week per child.
This means parents will have to either receive significant pay
raises from their employers, remove their child from regulated
care, or be unable to find work. If tuition gets too high, more
childcare businesses will close due to lack of enrollment. Addition-
ally, we are still down about 80,000 employees, leaving exponen-
tially more parents unable to work since their child is on wait list
instead of in care.
12
Nationally, the lack of infant and toddler childcare costs our
economy at least 122,000,000,000 annually.
In conclusion, from the perspective of small businesses, our gov-
ernment is choosing to focus on big business and corporations ig-
noring the dire needs of small businesses around the country,
eliminating the opportunity to truly live up to the American dream.
Thank you.
Chairman WILLIAMS. Thank you.
And I would just like to tell our witnesses, you see people moving
forward and backwards. There is a lot of voting going on, different
committees, so you are going to see people coming and going.
So let me start out by saying the banking industry is critical to
the health of main street America. Whether it is getting a loan,
starting capital, developing a revolving line of credit to keep up
with expenses, everyone needs a good relationship with a banker.
We saw firsthand how important it was at the beginning of the
COVID-19 pandemic, where businesses with existing relationships
had a much easier time getting their PPP loans than their counter-
parts that had not made that connection.
And as we have heard today, inflation is impacting many busi-
nesses across our country. This has caused the Federal Reserve to
raise interest rates at a pace we haven’t seen since the 1980s.
So my question, Ms. Prince, as a community banker, can you talk
about what you are seeing on the ground as it relates to the in-
creasing interest rates and the effect they are having on the busi-
nesses you serve?
Ms. PRINCE. Absolutely. Thanks for asking.
Many businesses today that were very profitable, very viable in
the lower interest rate environment are finding themselves with an
interest expense that is probably unsustainable. And with the focus
on additional increases, that puts people that were on the bubble
not really able to get a loan and to service that loan. So interest
rates have had a huge negative process in our community.
We do lots of construction loans, we do lots of real estate loans,
and those have slowed down substantially with the increase in cost.
Most of those people that are buying a first mortgage today don’t
remember the 80s, but an 8 percent, a 7 percent, a 6 percent mort-
gage is just insurmountable for them. So interest rates are huge.
Chairman WILLIAMS. Thank you.
Mr. Davis, your passion and drive to be successful should be an
inspiration for all Americans. And too many people see an obstacle
as too big and simply give up without even trying. And you were
brave enough to put yourself in the game rather than just sit on
the sidelines. And before your 18th birthday, you have already
overcome many unique challenges that many seasoned business
owners have never previously had to navigate through until the
last few years. So I hope you keep working with this so one day
you will have too many employees working for you at the hot sauce
company to come before the Small Business Committee.
Now, there is something I heard that really impressed me in lis-
tening to your story. When you are a business owner and you make
a profit, you do not just sit on that money. You hire an additional
worker, you invest in new equipment, you think of ways you can
give back to the community. And so for some people, giving back
13
is an afterthought once they have already built a successful busi-
ness, but for others, it is ingrained into the DNA from the start.
So question is, can you share with the Committee how you give
back to the cerebral palsy community through your business?
Mr. DAVIS. Yes. Five percent of our profits go to the National
Cerebral Palsy Research Foundation. And this is important be-
cause not only will this research go towards ways to make people
better live with cerebral palsy, but since cerebral palsy is a brain—
it is basically a fancy word for brain damage, the research could
also further affect the people that also have paresthesis and like
are paralyzed and not just the 764,000 people a year that struggle
with cerebral palsy.
Through stem cell transplants, as well as other things, I believe
as we further increase profit, that could substantially help our con-
tributions, which could further speed up the rate in which we are
able to give, which will maybe eventually help more people into the
workforce, which will generate even more revenue for us, which
will help the wonderful economy that the United States has.
Chairman WILLIAMS. Thank you.
In the brief time the time that I have. Mr. Heim, your industry
has been one of the most impacted by supply chain disruptions. So
can you talk briefly about how the pandemic shifted your view and
where you sourced materials? And do American businesses cur-
rently have the capacity to meet your needs?
Mr. HEIM. So sure. Thank you.
So I could just tell you about the last project we just had. It was
a 3 year project. We bid the project before the COVID and COVID
came into play. We waited approximately a year and a half to 2
years just to get air conditioners. There is still today—if you want
to buy an electrical panel, you are going to wait a year to just find
an electrical panel. So today it is very, very difficult for us to plan
to try to understand how to price. So——
Chairman WILLIAMS. My time is up now. Thank you for that.
With that, I yield back.
And now I recognize the Ranking Member of New York for 5
minutes for questions.
Ms. VELÁZQUEZ. Thank you, Mr. Chairman.
Ms. Hendrickson, many small businesses like yours are facing in-
creased costs during this period of high inflation. One potential
source of this inflation is the continued concentration of market
power over the past several decades. How has the concentration in
certain industries affected the price you pay for basic supplies for
your business?
Ms. HENDRICKSON. Thank you.
So for me, as a family child care provider, I am not able to buy
things at scale or go through larger corporations and things like
that to purchase. So I have to go to the store to get things myself
or purchase online.
A few years ago, Office Max and Office Depot were allowed to
merge. Since then, my prices for paper, ink, et cetera, have gone
up exponentially and have not come back down along with the
quality. My paper frequently jams. I have gone through several
printers and things like that, and it is very frustrating because
when I purchase something I want it to be higher quality. And
14
with that corporate concentration, it gets rid of competition and
takes away that ability for people like that.
Same thing with companies like Amazon that have taken over.
You now auto reorder. I don’t have a lot of time, but I have noticed
those prices have actually gone up more than if I were to purchase
from the original proprietors and.
Ms. VELÁZQUEZ. Funds from the American Rescue Plan and re-
imbursement from the USDA gave you some much needed breath-
ing room with respect to hiring staff and higher wages. Can you
speak more about the importance of maintaining those funds in fix-
ing our country’s broken childcare model?
Ms. HENDRICKSON. Yes.
So because childcare has such a low profit margin, we are only
able to charge what parents can pay, unfortunately, which isn’t a
whole lot when you are looking at people at the beginning of their
careers. And so we look at the average market rate really isn’t com-
parative to what it actually costs to have a childcare business. So
we actually are able to use government supports. Finally, the first
time in my entire career, I have had money that I knew was com-
ing in every single month, and I was able to take that money and
pay my operational costs, raise my own wage, and also hire people,
which has been a breath of fresh air for all of those families as
well.
Ms. VELÁZQUEZ. Thank you.
Ms. HENDRICKSON. The USDA food program has increased to
one tier, and if we were to make that permanent through the
USDA Farm Bill, that would help offset cost to parents about $15
a week. Group centers, unfortunately, aren’t always eligible, and so
getting them into that as eligible, no matter what, would also help
offset those costs for those centers so they would be able to pass
those savings on to families or increase the wages so they can re-
cruit and retain highly qualified staff.
Ms. VELÁZQUEZ. Thank you.
Mr. Heim, it is well known that the construction industry has
been having difficulties in finding skilled workers. Has that been
your experience?
Mr. HEIM. Yes, very much so. So, right now, our industry na-
tionwide is short about 460,000 people. We are all fighting for peo-
ple left and right. I have got on the school board and now work
with the technical school board. In our county alone, we have 197
children on a waiting list to try to get into the technical school,
which only compounds our problems that we can’t grow and we
can’t get better.
Ms. VELÁZQUEZ. Do you think that common sense bipartisan
immigration reform could increase your ability to meet the current
demands for work that you are taking on?
Mr. HEIM. I do.
Ms. VELÁZQUEZ. Okay. Thank you.
Mr. Davis, thank you so much for being here. It is an incredible
story of resilience.
Can you talk to us about how this work has helped you to gain
more self confidence to hire other people and then to give back to
our community and your community?
15
Mr. DAVIS. Yes. So through COVID, I really got reserved and
stopped talking to people. But when I started Crippling Hot Sauce,
it kind of helped me break out of my funk and go out there and
talk to people. And has increased my social skills a lot. And I have
also learned a lot through it, through having to talk to people and,
you know, kind of screwing up on business pitches. And I just take
everything as a learning experience and say I will get them next
time. And if that ever happens, you know, at least I tried. But I
have consistently gotten better through the last 7 months, and I
am just happy to kind of be that representation in the disabled
community, because not many people have that.
Ms. VELÁZQUEZ. Mr. Chairman, I yield back.
Chairman WILLIAMS. Thank you very much. Thank you very
much.
The gentleman from Missouri, Mr. Luetkemeyer, is recognized
for 5 minutes.
Mr. LUETKEMEYER. Thank you, Mr. Chairman.
Mr. Davis, thank you so much for your testimony today, and you
are an inspiration to all of us. You know, if I was the teacher who
gave you 82 percent on your business plan, I think I would have
a problem. So did you go back to the teacher and say, hey, you
know, look what we are doing now, and see if he would reconsider
your grade? Or was it too late?
Mr. DAVIS. I mean, they didn’t renew his contract for the next
year. I think says something.
Mr. LUETKEMEYER. I think it does too.
Mr. DAVIS. I actually was told that he ended up buying it, which
I thought was kind of funny. And he is like, it is really good. And
I am like——
Mr. LUETKEMEYER. Very good. Well, again, you are an inspi-
ration to all of us.
You know, everybody has an impetus for starting a business, and
yours was to show that you had a good plan. If you just put your
hard work behind it, look what can happen. And I think that all
of you here this morning have got that same story.
Mr. Heim, your testimony on all the different community projects
and community things that you are involved in is a testament, I
think, to small businesses. Our communities don’t grow unless our
small businesses are there and our small businesses don’t grow un-
less our community is there. And by participating in the commu-
nity, you make sure the community grows so that your business
can grow. It is a symbiotic relationship there that has to be there,
otherwise, neither one happens. And so you are a perfect example
of that. So thank you for your community involvement. Yeah.
Mr. HEIM. May I comment to that?
Mr. LUETKEMEYER. Sure.
Mr. HEIM. So, I didn’t list all the stuff I do. I am a Little League
coach and basketball coach and so on. But the one thing that we
do miss is we need leadership with our youth today. And being in
this business, hearing me create, being around other business lead-
ers, help me get that leadership that then you can transfer to your
community and to the children, I think that is very important.
Mr. LUETKEMEYER. Very well said. Very well said. Mr. Davis,
I would like to ask you a couple of questions about your business,
16
your business model. You talked about inflation affecting it. I know
in your written testimony you say you absorb the price of some of
the—or some of the cost of some of the fluctuations. Do you con-
tinue to absorb all of it? Do you pass some of it on? How are you
looking at your business model?
Mr. DAVIS. So considering we are on the premium hot sauce
spectrum, I have just been ordering more to further offset those
costs because with hot sauce, there is a very large fluctuation on
what it can cost. And our goal for the next couple of years is get
as many people to try it as they can. And since many people are
struggling with inflation, we just want to keep prices down as low
as possible to get people to try and contribute to the cause, no mat-
ter the profit margin. I know I haven’t taken anything as far as
I wasn’t around with the PPP or anything like that. It has all been
my own money, which has helped because I don’t have interest
rates following me.
But I think to add to that, to further help representation in the
disabled community, getting more grants and tax subsidies towards
underprivileged people, I think would substantially help the econ-
omy because the disabled community is a large part and not many
people have access because of cost that it costs to have a disability.
Mr. LUETKEMEYER. Appreciate that. I think that is extremely
important. One of the things you talk about in your testimony here
is that permitting and licensing process that you had to go through.
Everybody, all small businesses here this morning going to talk
about government rules and regulations. Can you give us a little
idea of the cost? Do you have an idea of what the cost is or percent-
age of cost that is in your pricing of your product for rules and reg-
ulations just off the top of your head?
Mr. DAVIS. Not exactly, but I would estimate it is between 10
percent, because a lot of that is through my manufacturer and I
know a lot of those things are per county. So there is not, like, a
thing that is like you get this for the State of Missouri and you are
good for all counties. Each county has their own health depart-
ment. And that really makes it confusing because you have to have
this for this county and that for this county. And I think if we kind
of fast-line the application process and the licensing process, more
people would get into the grocer industry, which would make it to
where there would be more competition for the big corporations.
Mr. LUETKEMEYER. I am running out of time. I got one more
really important question here. In Missouri, they allow you to have
a personalized license plate. Does your personalized license plate
read Sauce Boss?
Mr. DAVIS. That is a good idea, though.
Mr. LUETKEMEYER. Thank you for your testimony.
Mr. BEAN. [Presiding] Thank you very much. The gentleman
from Minnesota, Mr. Phillips, you are recognized for 5 minutes.
Mr. PHILLIPS. Thank you, Mr. Chairman, and greetings. I think
the world of all of you. I am a business person myself. I know how
tough it is to run a successful business during the best of times and
how tough, tough, tough it is during the worst of times, which, of
course, the past 3 years have been.
And also, I love the mosaic here because it is this great eco-
system of business. Now you have a lender, a builder, a product
17
maker, and a service provider. And I want to thank you for being
part of this extraordinary ecosystem.
I do a series at home called ‘‘On the Job with Dean,’’ where I
visit small businesses every week I am back home, and I do a 2-
or 3-hour shift. I don’t get paid, which means I am being paid what
I am worth. And it is probably the most fun and illuminating part
of this entire service.
So my question to each of you is, if you had your Member of Con-
gress join you at your business for just a day, for an afternoon,
what specifically would you like them to take back to this Com-
mittee about their experience?
Ms. Prince, maybe you can start.
Ms. PRINCE. Sure. Thank you. I think I would invite Chairman
Williams to our loan committee so that he understood what it takes
for the small business to put together a package and present it to
a bank and to go through the entire process. So, it is not very sim-
ple. It used to be, it is not anymore. But I think it would be eye-
opening to see the amount of information that they have to provide,
that the bank has to require in order to make a sound credit deci-
sion going forward.
Mr. PHILLIPS. I appreciate it. Thank you. Mr. Heim?
Mr. HEIM. So, I think I would ask Mr. Meuser to spend the
afternoon and then quite a few evenings going to municipal meet-
ings, dealing with EPA and DEP and trying to get a permit ap-
proved that could take us up to a year to get done. So, that process
is something that, unless you do it, you really don’t understand it.
Mr. PHILLIPS. Yeah, permitting reform.
Mr. HEIM. Correct.
Mr. PHILLIPS. Yeah, thank you. Mr. Davis?
Mr. DAVIS. I mean, my industry is kind of unique because I
could basically take any of you guys and show you how complicated
some of the paperwork and stuff has to be. And I think each of you
would have the same kind of mindset going out of it that it is real-
ly hard and both on the state and federal level. Things can be done
for any state because, like I said, there is 50 states and each of
them have their own rules and regulations.
Mr. PHILLIPS. Yeah. Thank you. Ms. Hendrickson?
Ms. HENDRICKSON. I would invite you to start your day with
me at 6:30 in the morning, cleaning and prepping for all of the chil-
dren to show up, and then having those few conversations with
parents about what their night was, what I can expect that day,
and then enjoy spending time with the children, but then also see-
ing how many different things I am doing at one time, between dia-
pering and feeding and, you know, navigating between the children
that are playing really well, but then somebody wants to come in
and hasn’t quite learned yet how to ask to play and how important
that is. Because even we notice that the adults sometimes don’t
know how to ask to play nicely either. And I think that would be
something that would be great to take back with.
And then, also, then getting them all down—like getting lunch
ready, getting them fed, getting them down for naps. While they
are napping, I do my paperwork and my meetings. And you could
learn how to do the USDA food program and all those other things
that I have to try and keep track of, enter my receipts and all the
18
things I have to do as my own accountant because I don’t have—
there aren’t enough accountants out there that actually understand
the implications of family childcare and all of the different various
tax write-offs that we have that we should be getting. And that
leaves a lot of money on the table.
And then the children start to wake up. And so then we do bath-
room and diapering and everything, and then we go outside and
play. We have done that a few times by now. And then the parents
come and pick up. I let them know how their day was. The children
leave.
I now have to do laundry, dishes, do all kinds of other things,
paperwork. My own children that are 16 and 14 deal with their
things. And then sometimes I am still on meetings and classes and
running meetings, mentoring until about 7, 8:00 at night, and then
you could go home.
Mr. PHILLIPS. Wow. By the way, I have to say, I think my col-
leagues can relate to adults that don’t play nicely together some-
times.
With my brief time left, you know, during the pandemic we
passed some legislation to help small businesses. It was imperfect.
There was some fraud, of course. But just quickly, if I might just
add, I know, Mr. Davis, you indicated you didn’t secure a PPP loan
because you started your business. Ms. Hendrickson, did you——
Ms. HENDRICKSON. Yes.
Mr. PHILLIPS.—see any support?
Ms. HENDRICKSON. Yes, I did, actually. I was able to through
my small community bank. They reached out and worked with me
very, very much. And I actually then helped other people who are
unable to access the PPP through their larger banks because they
were not prioritizing them, get that PPP through my bank.
Mr. PHILLIPS. Terrific.
Ms. HENDRICKSON. So, it was fantastic.
Mr. PHILLIPS. Nr. Heim?
Mr. HEIM. Yes, we did. So, because we do medical work in the
State of Pennsylvania, we were allowed to continue working, so it
did keep us working.
Mr. PHILLIPS. A PPP loan or?
Mr. HEIM. A PPP, right.
Mr. PHILLIPS. Terrific.
Mr. HEIM. And then what we did is there was a few crews that
worked for the Department of DOT, and they could not work, so
we kept them employed and we actually did community work. We
did a ballfield. We went and we did a ballfield over for the local
town, but we did everything we could to keep them working and
make sure they were employed.
Mr. PHILLIPS. Terrific. And my time has expired, but Ms.
Prince, I was going to ask you about how we could have done that
better as someone who clearly——
Mr. BEAN. And, Ms. Prince, let us come back. In fact, I will pick
you up with that question when it comes to my turn——
Mr. PHILLIPS. Perfect.
Mr. BEAN.—so stay right there.
Mr. PHILLIPS. Thank you all very much.
Mr. BEAN. Well done.
19
Mr. PHILLIPS. I yield back.
Mr. BEAN. Mr. Phillips, thank you very much. Let us go to the
gentleman from Pennsylvania, Mr. Meuser, who is recognized for
5 minutes.
Mr. MEUSER. Thank you very much, Mr. Chairman. Thank you
very much to our witnesses, to my friend Roy Heim, for making the
trip again, and to all of you.
So, yeah, I spent most of my adult life in small business and
growing into, fortunately, a larger business. And all my customer
base for small businesses certainly know the trials and tribulations
that many of you are expressing and all that you do give along
with employing 95 percent, in my district anyway, or make up 95
percent of the businesses, employ almost 75 percent of those who
are employed. In my district over 100,000 people work for small
businesses. And yet small businesses tend to be under the gun
from energy costs that have risen. And many small businesses
work with the energy industry, which hasn’t been—particularly
natural gas in Northern Pennsylvania, which hasn’t been—which
has been kind of under fire as well, the inflation, the regulations,
the interest rates, the access to capital, the supply chain issues, the
workforce. So we know the issues that you have, this committee is
about trying to find solutions.
So, Mr. Heim, I am going to start with you, if you wouldn’t mind.
Well, first of all, what you brought up about all the giving that
small businesses do, that is just so very important, how main
street does pay for the Little Leagues and are usually the most
charitable and involved in communities. So that should always be
noted, that level of continued value-add or additional value-add.
But in your testimony, you submitted an exhaustive list, or a non-
exhaustive list, nearly 50 pages long with details of regulations
that your construction business contends with.
Now, how long was that list 30 years ago when you began your
business? Was it the same? Was it a lot shorter?
Mr. HEIM. Due to a lot of ignorance and not really under-
standing, I couldn’t tell you how long ago that—how big that list
was. But, yes, in all honesty, in the last 10 years, that list has
grown quite a bit and became more stringent. So, there might have
been policies in place, but they have gotten tighter and tighter over
the last 10 years.
Mr. MEUSER. If you were trying to start a business to yours
similar today as you did 30 years ago, would it be possible? How
much more difficult would it be today for a small business to start
like yours, because that is the business you know best, versus
when you started 30 years ago?
Mr. HEIM. So, to start the business, probably not that hard. To
be compliant and do it correctly and grow, very difficult. Very dif-
ficult.
Mr. MEUSER. Very difficult.
Mr. HEIM. Because I can tell you, unless you have an attorney,
an accountant, and everything, and spending that 50- to $100,000
right up front to understand all the rules and regulations that you
must abide by?
Mr. MEUSER. Twice as difficult? Three times more? How much
more difficult today than 30 years ago?
20
Mr. HEIM. I would say three times more.
Mr. MEUSER. Okay. And that is due to, not taxes, it is due to
bureaucracy and regulations.
Mr. HEIM. Correct.
Mr. MEUSER. Added regulations.
Mr. HEIM. Correct.
Mr. MEUSER. Okay. So what about inflation, the costs that you
have been contending with? If you were doing a project 3 years ago
that cost $5 million, what would that project cost just 3 years
later?
Mr. HEIM. So, today, and I can only tell you this to try to make
things simple, if you did a typical office facility today that 2 years
ago might have been $125 a square foot, today you are looking at
$250 a square foot.
Mr. MEUSER. So, perhaps double?
Mr. HEIM. Of course.
Mr. MEUSER. Double in a 3-year period.
Mr. HEIM. A lot of it, you know, it is labor, it is material, it is,
quite frankly, not being able to understand if you can get the mate-
rial and people are charging more.
Mr. MEUSER. And, you know, like you, I respect unions. I re-
spect all workers. I respect all Americans, for that matter. And you
can understand the joining a union doesn’t label anybody anything
other than they are part of a union. We support unions.
But when you are expressing it related to PLAs, should the re-
quirement be to have an opportunity to bid for a contract, be that
you are a union, that you only employ unions? That certainly limits
the competition, but also excludes you and 88 percent of the work-
force, as you stated.
Mr. HEIM. Right. I don’t believe the government should put any
impediments in front of anyone to able to procure work. So, we do
Penn DOT work. They want to put a PLA or the federal govern-
ment wants to put it. We are all prequalified. We are all bonded.
We all do the work. I work with unions every day. I get hired by
unions. I hire union contractors so we can be fair and we can work
together. And I have a great relationship with them, but there is
no need to single people out.
Mr. MEUSER. Thank you for your testimony. I yield back, Chair-
man.
Mr. BEAN. Thank you very much. Let us go to Kentucky where
Mr. McGarvey is standing by. He is recognized for 5 minutes.
Mr. MCGARVEY. Thank you. It is great to see everyone. I echo
the comments of Mr. Phillips. It is great to see so many people in
so many different capacities and to hear your all stories echo so
much of what we saw. I was in the state legislature in Kentucky
when the pandemic started, and so I was on the ground. And from
the people who received PPP loans or from all the community
bankers in Kentucky, we heard, who were sleeping in their offices
to make sure that business had access to capital, to the people who
were trying to build things and keep things going, to the number
of Americans who started new business as a way to deal with some
of the pressures of the pandemic. It is really great to see all of you
here and to hear your stories.
21
To make this, if I ask my questions, you know, one of the things
I did yesterday before coming to Washington was drop my 4-year-
old off at her childcare facility. And as the parents, working par-
ents of three young kids, I know how vital affordable and accessible
childcare is for every young family in this country.
Unfortunately, like a lot of places in the United States, Kentucky
is facing a childcare crisis. And we have a Kentucky Center for
Economic Policy that says that over half of the Commonwealth of
Kentucky is a childcare desert right now. That means little or no
child care is available. Almost half of the childcare centers have
closed their doors over the last decade. And when parents are able
to find child care, I know this firsthand, it can cost almost as much
as a year of tuition at the University of Louisville.
This is something we have got to get right. In my state, over
100,000 women alone have left the workforce and not returned to
the workforce because of what we are facing in child care.
So, my question is for Ms. Hendrickson. You know, we hear a lot
from small business owners about that there aren’t enough quali-
fied workers, that there is a lot of pressures. How can continued
investment in child care and childcare centers by the federal gov-
ernment help with providing child care with childcare providers
and also help with the labor force as a whole?
Ms. HENDRICKSON. Well, we are the workforce behind the
workforce. Without us, people can’t work. And without us, the chil-
dren will not be ready to work. Because, again, that brain develop-
ment starts at birth, not when they are five or four or three or
whatever magical age school officially starts. And we can also meet
the diverse needs of our community with the hours that are need-
ed. So, people who work late at night or second shift or third shift
or weekends, our small businesses are there for them to help meet
those needs.
However, because of the fact that we can only charge so much,
we cannot pay that in wages because that is the piece that is miss-
ing is that wage piece. Our military currently does fund childcare
that way. The rest of the OECD countries fund childcare at .76 per-
cent of GDP. The United States is second from the bottom, only
above Croatia at .35. If we even get that up to the average, it
would be enough to get childcare off of the ground. Subsidized, we
would have high-quality educators who can stay in the field. Right
now, three out of four people with a degree in education, early
childcare education do not work in the field. We are highly sought
out by other people because they know we have people skills. They
know that we are educated. They know that we have patience and
that we have a lot of passion. So by funding those core pieces of
that wage so that we can get the wage rates up from about $12
an hour to a sustainable living wage even, let alone can measure
it with our other very valuable small business owners and employ-
ees that normally are making at least 18-, 20-, $25 an hour with
health care, with paid family medical leave, and with retirement.
We can’t even offer any of those things.
My retirement right now is about $3,000 besides what I have
with my husband. And that is because he has a great job. And so,
you know, right there, that investment would make the world of
the difference for us and our people and all of the other small busi-
22
nesses that rely on us and employers that rely on us in order to
have a workforce.
Mr. MCGARVEY. I really appreciate that you even answered
some of my other questions in that really good response. But I love
how you said the workforce behind the workforce, which is so im-
portant. I think it shows why continued investment and making
sure we have quality, affordable childcare is important to every
small business in this country.
Mr. Davis, I do want to ask you a question. I am a MSSU alum.
I married a Jeff City girl. So, it is great to see you here. It is great
to see your success story.
I also want to point out I got on your website while we have been
sitting here, your sense of humor doesn’t stop at the name of your
business. The sauces themselves, Just For the Parking—Mild Crip-
pling Hot Sauce, Limping Medium, and then Crippling Agony. It is
great to hear your success story.
And as we see individuals with different abilities that are less
likely than their peers to participate in the workforce, as you
noted, they face greater barriers to starting their own businesses.
How can the federal government do a better job of helping job cre-
ators who do have different abilities?
Mr. DAVIS. Yeah, it is just grants and tax credits and things of
that nature because we don’t have as great as an opportunity, a lot
of us, to get in the workforce, because as much as it has gotten bet-
ter, there still is a lot of workplace discrimination against people
with disabilities and other underprivileged individuals. And I think
that people with disabilities statistically make less than even
women do on average. That is not necessarily right because a lot
of us, like I said, do have the same intellectual capabilities. And
it is just going back to thinking how they did in the early 1900s
where disabled people were only in the life skills classes and stuff
like that. But it has gotten way better, and I am just here to help
push the envelope even further and show everybody what can be
done in such a situation.
Mr. MCGARVEY. Thank you. And I am out of time, but thank
you all.
Mr. BEAN. Thank you very much, Mr. McGarvey. Let us go to
Texas, where Mr. Ellzey is recognized for 5 minutes.
Mr. ELLZEY. Thank you, Mr. Chairman. Thank you all for being
here today.
And I am going to echo Mr. McGarvey on the sense of humor,
Drew, that you have. And I can only imagine how many times you
have gone up to a place that has some parking and you might see
somebody get out that has got the placard. And I think that that
is a nice shot across the bow, that Just For the Parking Hot Sauce
clearly is from experience.
To your parents, would you raise your hands, please? You have
got to be exceptionally proud of this young man who doesn’t sound
like he is 17. He sounds like he is 37, 47. The wisdom in this young
man is vastly beyond his years. You have to be exceptionally proud,
and I guarantee you that that is the first young man in his class
who is going to be a multimillionaire.
And my hope is, is that at the age of 25, you sold out to some-
body much, much bigger for a billion dollars, and you and your par-
23
ents can go do whatever the heck you want or start another multi-
billion-dollar company. So thank you for your stubbornness, for
your sense of humor, for the points that you have made here today.
As you have been talking, I have watched everybody else around
here nod their heads. So you not only speak for your family, for
yourself, for your company, but you speak for many other people
throughout this country. And I see a much bigger, brighter spot-
light for you in the near future, but you got to get out of high
school first. I am sure that is probably part of the priority. So,
thank you for building this business and thank you for coming to
us today.
Ms. Prince, as a fellow Texan, I would just like to ask you, and
it may have been briefly brought up today, as we know, the CFPB,
the funding structure for the CFPB is before the Supreme Court
right now. And it is going to be interesting to see what happens,
if that is struck down, their funding structure, which, of course,
comes from the Federal Reserve instead of the appropriations proc-
ess of the United States Congress, which means there is really no
mechanism for constitutionally the Congress to regulate what the
CFPB does. So, I am curious to see what happens with rule 1071.
Of course, that won’t come out until, I think, September of next
year. But how much more time is your company having to spend
on meeting the restrictions or the requirements of 1071 and who
does 1071 help?
Ms. PRINCE. So, 1071 hasn’t been enacted yet, so we are not
currently collecting the information. But if enacted, we would be
collecting information as though you were doing a real estate, a
home mortgage. We would do all the demographics, the income, all
the different pieces on every small business loan as though a small
business loan can be put in a box and that all are alike, which just
isn’t true.
So, if you look at the people here, the demographics, the needs,
the supply chain needs, all the labor needs, all of those things go
into what make a small business unique. And so, going forward, we
would hope that there is no inaction of CFPB’s 1071 rule, which
really just creates a whole other layer of regulation and reporting,
such as HMDA for real estate mortgages.
Mr. ELLZEY. Does it help anybody get a loan?
Ms. PRINCE. It doesn’t help anybody get a loan.
Mr. ELLZEY. Okay.
Ms. PRINCE. It may, in fact, hinder people from credit access be-
cause if you are just looking at a statistical representation of the
small business, you are not looking at their business plan, you are
not looking at their creativity, you are not looking at their passion,
you are not looking at a young man who decided that he would go
to multiple small banks, to multiple manufacturers, to multiple
sources before he got what he wanted and before someone recog-
nized that that young man had a vision, he had a business plan,
and he had something that would work.
So it is really important that we leave some of the business deci-
sion-making in the hands of loan committees and the business ac-
cess, loan access to really people who have an entrepreneurial spir-
it and are creative in their plans.
24
Mr. ELLZEY. Thank you, ma’am. I appreciate what community
banks do. I started out with a big national bank, and I love that
a community bank set up people I know, people who I can contact.
And thank you for your service in providing for our country’s fi-
nances.
Ms. PRINCE. Thank you.
Mr. ELLZEY. Real quick, Mr. Heim, thank you for building
America. I don’t have any questions for you, but I know this is a
tough business to be in right now.
And finally, Ms. Hendrickson, thank you for being here and
thank you for taking care of the children while the rest of America
works. I know it is a struggle from time to time, and I hope things
turn around very quickly for you and would like to see how we can
help. So, thank you all very much.
I yield back my time, Mr. Chairman.
Mr. BEAN. Thank you. Thank you very much, Mr. Ellzey. We
are in the city of Washington, but now we are going to the State
of Washington, where Ms. Gluesenkamp Perez is standing by and
she is recognized for 5 minutes.
Ms. GLUESENKAMP. Thank you, Mr. Chair. And thank you so
much to all of our witnesses for being here.
Mr. Heim, in your testimony you mentioned your involvement in
trying to get high schoolers in the trades and your early involve-
ment in high school. You know, and I know I am part of the gen-
eration where all of our best trade schools got turned into—or trade
programs got turned into computer programming classes instead of
the auto shop. I work and own an auto repair shop myself, work
in the trades. And our kids are being told directly and indirectly
that basically you did something wrong if you ended up working
with your hands for a career. And right, we are seeing the con-
sequences of that. We are short, what, 350,000 workers in the con-
struction trades alone.
And so my question to you is, what do we do to restore the pres-
tige and sort of the dignity back to working in the trades in your
perspective?
Mr. HEIM. So, that is great because you are right on target. Six
years ago, I worked with a state rep by the name of Michael
Tobash, myself and a few other people, and we started—in Penn-
sylvania, they passed a law where eight teachers can now get con-
tinuing ed credits by going out to industry. Instead of just doing
other stuff, they actually go to industry. And the results out of that
was tremendous. They didn’t understand what the local commu-
nity, what the local business has done. They didn’t understand how
much money the people were making, so on and so on. So, we have
done that.
And I can tell you, our local school, we have done open houses
with industry involved. We have changed the whole concept of how
we teach. And like I said, there is 197 children. Our local school
that graduates 240 students, we had 88 eighth graders apply for
the ninth grade to go to technical school.
Now, the unfortunate part about it, because there is no funding
and the school is not big enough, only about 15 percent of them got
in. But that perception, I think, is changing along with what is
going on and when it costs $150 to get your toilet looked at and
25
it is not fixed yet, that is also making parents, I think, look at it
a little different now.
Ms. GLUESENKAMP. Yeah. Thank you so much.
Ms. Hendrickson, I really appreciate you being here. Thank you
so much for the work you do. I am a mother of an 18-month-old,
so I was on all those wait lists. I live in a childcare desert. It is
about 4 hours of driving every day that my child goes to daycare.
So, thank you for sticking it out. Thank you for your persistence
and to your employees who choose to work in an underfunded, un-
derpaid job. I would not be here without folks like you and your
team. So I guess my question is, well, first, could you kind of speak
to the challenges of recruitment? And could you also talk, like,
what can we do in Congress?
Ms. HENDRICKSON. So, the number one challenge is the wage.
We cannot pay anything. Wisconsin was about $10 an hour on fam-
ily childcare. We make less than minimum wage by the time you
put our hours in. And so we really need to be able to get those
wages up without pricing parents out. So, we have to have some
sort of system where the money goes directly to the wages.
In Wisconsin, we took our ARPA funding and we actually put it
into two pots. Every single program is eligible every single month
to get money. One part is for operational costs, the other part goes
directly to the teachers. And we fought for that as a group within
our state and worked with our state licensing agency to make that
happen. And that is what we are continuing to try and do because
it really comes down to those wages.
And we also need some more health care and paid family medical
leave and other things that all of us really small businesses cannot
access because we cannot afford to provide those things for our-
selves or for our employees. And so that way if we had it more—
took our taxes and more equitably distributed them, we would then
be able to help encourage all of our people to be able to do what
they love and not have to worry about being tied to a different em-
ployer because they need health care.
That is also why a lot of parents actually aren’t able to stay
home with their children longer. They have their baby and they
have to drop off after 6 weeks because they don’t have any paid
medical leave. That would also help offset some of those crunches
for infant care, especially because if a parent is able to stay home
longer, they don’t need care for longer. And so those spots won’t be
as filled with those infants and toddlers, which I am all for health
and safety requirements, I do not want ratios. Imagine having six
babies, all of you, while you are trying to, you know, interact with
each of them and meet their needs.
Ms. GLUESENKAMP. Thank you so much. And finally, Mr.
Davis, I am just so impressed with your entrepreneurship and that
spirit will carry you so far, and I think it is great.
One thing that I have heard from other entrepreneurs is that
people who rely on SSDI or SSI or other federal support sometimes
choose not to take on that risk and, you know, risk their benefits
as they start a business. Do you have thoughts on that quickly?
Mr. DAVIS. So, I never took SSI. I never really believed in it just
because I want to save it for those that really need it because I
know plenty of people that don’t really need it, but are eligible for
26
it. And those that clearly do need it, need a very comprehensive
proof when it is pretty obvious, which I think is kind of
contradictive. But, yeah, I never really believed in it. So, my par-
ents did a good job of instilling that in me at a young age that you
could work, so you are going to work. So, yeah, I had that by them
and I thank them for that every day.
Mr. BEAN. They are giving you the thumbs up behind you, too,
Drew. Thank you very much.
Ms. GLUESENKAMP. Thank you so much. Thank you.
Mr. BEAN. Very good. We are going to Missouri, where Mr.
Alford is recognized for 5 minutes.
Mr. ALFORD. Thank you, Chairman. What an honor to be here
today. Thank you to all of our wonderful witnesses today. Drew, I
think you need your own reality show. That would be some reality
show.
Thank you, Chairman and Ranking Member, for holding this im-
portant hearing today. I am really honored to serve on the Small
Business Committee, especially having been a small business
owner myself in the State of Missouri. Small business, it really is
the fabric of America, businesses that contribute greatly to the
American economy, our way of life. Making America great is simply
reclaiming the hope of the American Dream for everyone and really
setting us on a renewed course of achievement, prosperity, patriot-
ism, and unity for our country.
Today, as we have all recognized here today, businesses are
plagued by rampant inflation, ongoing supply chain issues, unwav-
ering workforce shortages, overregulation in a lot of cases, we have
talked about that. And I really believe that our nation is great be-
cause of small businesses. And I am honored to be here today with
this Committee and other Committee Members to hold the Biden
administration accountable, to create a business-friendly Small
Business Administration and once again unleash the American
Dream for all Missourians and for all Americans. It is so impor-
tant.
We have a lot of small businesses to be proud of in the great
State of Missouri, in our Fourth District, like the Stanton Brothers.
They are a family farm located in Boone County. Much like your
story, Drew, they started their business out of a first grade project.
They have grown it to a business producing 42,000 eggs per week
on their fifth generation family farm. So, we are very proud of
them. And it is really our job I see it, Mr. Chairman, as our job
of this Committee to work together so that many more Americans
can achieve the American Dream, just like the Stanton Brothers
did and just like you have done, Drew.
And I want to start with you, Mr. Davis. You are really an inspi-
ration for us. I don’t say that lightly. I thank you for being here,
for representing Missouri and America. I kind of see it as our job
to help you grow. And aside from the things that you have brought
up, the grants and tax subsidies, what else can we do to make it
easier for you to grow your business, hire more people, and really
become a rich part of the fabric of America?
Mr. DAVIS. So, for the grocer industry, that is one word: dis-
tribution. Getting more connections to the distributors is huge be-
cause you need a distributor in the grocer industry to really grow.
27
And there is a lot of connections out there, but not enough for the
amount of people there are wanting to launch these small busi-
nesses. And there is a lot of great small businesses in the grocer
industry that hasn’t been as fortunate as I was getting a bunch of
the media attention that allowed me to get some of these connec-
tions and distribution. So, it is more making those well known so
that we can have more lower priced goods for consumers.
Mr. ALFORD. More competition. That would be great. Would you
like a little competition for your hot sauce?
Mr. DAVIS. Mainly it is for those big corporations that like the
price gouging and stuff because that really affects us small busi-
nesses because people look at, you know, the franks that are made
in overseas manufacturing facilities with, you know, child labor.
And they are like, why can I buy franks for $2.99 and here is a
6.99. So, it would really help us with the competition and getting
more higher quality goods on the market.
Mr. ALFORD. I want to talk a little bit about supply chain issues
because I know, especially 2 years ago, getting bottles made was
a difficulty. The wine industry faced that. All sorts of bottling
issues going on. Are you facing that now with the supply chain
issues, with bottle caps, labels, that sort of thing? Talk about that.
We got 40 seconds left.
Mr. DAVIS. Yeah, the lead time for those things are more sub-
stantial than ever. I know I tried to put in an order for one of my
flavors for just like 6,000 bottles and they are like, sorry, we don’t
have that in our warehouse right now.
And same with plastic caps. I mean, they are like, well, do you
want just black or will you settle on white and black? I am starting
to have to do different colors. It is going to look like the United
States flag, which I love the United States, but it confuses the con-
sumer. They think it is different flavors and stuff like that.
Mr. ALFORD. Got 10 seconds left. Where can I sample your
product? Did you bring some today?
Mr. DAVIS. I did.
Mr. ALFORD. All right, let us break it out. It is almost lunch-
time. Thank you so much. I really appreciate you and God bless
you all. I yield back.
Mr. BEAN. Thank you, Mr. Alford. Let us go to Michigan, where
Ms. Scholten just walked in in the nick of time. She is recognized
for 5 minutes.
Ms. SCHOLTEN. Thank you so much. This here. Thank you so
much. Sorry, I thought you were talking to me. Thank you, Mr.
Chair.
First of all, thank you to all of our witnesses. I am glad he asked
the question about where the hot sauce was. I can’t wait to try it
myself.
We in Congress can sometimes lose sight of what it is like on the
ground running a small business day to day. And your perspective
is invaluable, helping us craft policy that meets you where you are
and helps you stay competitive. Thank you so much for taking the
time to be here.
These questions are for Mr. Heim. As the Ranking Member on
the Subcommittee on Contracting and Infrastructure, I am espe-
cially interested in how the contracting and subcontracting dynam-
28
ics play out in the construction sector in particular. In your experi-
ence, what role do prime contractors play in helping the sub-
contractors grow their businesses in particular?
Mr. HEIM. So today, probably more than ever, with the ability
to find tradespeople, we do spend a lot of time educating, also. So,
there is a lot of people that have got into our industry that nec-
essarily are not educated. They are tradespeople, they are not busi-
ness leaders. So, we do spend—like me personally have spent a lot
of time with different individuals, bringing them in, talking about
what a prevailing wage is, how to comply with prevailing wages,
literally how to look at blueprints. So, there is a lot of gentlemen
that can build stuff out there, but really don’t understand how to
look at a blueprint. So, yeah, we do spend a lot of time dealing with
the smaller businesses.
Ms. SCHOLTEN. Mm-hmm. And what would be your number
one recommendation, or one or two recommendations, that you
would have for subcontractors who are eventually interested in be-
coming prime contractors?
Mr. HEIM. Recommendations? Get ready, you are going for a
ride. I don’t know that I really have any recommendations. I mean,
every individual is a little different. Everyone has a little different
training and thinks a little different. So, it is almost on an indi-
vidual basis. I don’t know that there is an overall recommendation
I would have.
You know, save your money because there is going to be a time,
right? And really, I guess the number one recommendation I would
have is make a relationship with your bank, make a relationship
with your accountant, have a relationship with your attorney, be
part of affiliations that are part of your association so you can get
educated. I mean, I think that would be the overall.
Ms. SCHOLTEN. That is great. Thank you. I appreciate that.
Yeah, I yield back.
Mr. BEAN. Thank you so much, Ms. Scholten. Seems it is my
turn. U am Aaron Bean from Florida, and I am pleased to recog-
nize myself for 5 minutes.
I, too, was a small business owner and I started up some small
business. I also was a banker. So, there is great excitement when
things are happening as they are at the table right there.
I want to remind you, even some of our largest businesses start-
ed small, both Apple and Google started in family garages. And if
you don’t believe me, you can Google that right now.
And Drew Davis, how about this? Do you know the story of
FedEx where Fred Smith actually wrote a term paper? I think he
got a C on the creation of FedEx. And who is laughing now with
that?
Let us go back to Ms. Prince. As a banker myself for many years
and, Mr. Phillips, you didn’t get to answer Mr. Phillips’ questions
earlier, what are you seeing different now versus servicing loans as
it was with the previous administration? Has it changed? Is there
anything different about banking now than it used to be?
Ms. PRINCE. So, every day the regulatory requirement increases
or the interpretation of a regulatory requirement is ever-changing.
So, we spend a whole lot of time. Back in the day when our family
first got involved, compliance or regulatory compliance was prob-
29
ably a part of a person, a part of a full-time employee. Today it is
at least six full-time employees. It is a whole other group of people
within our organization that are trained compliance officers,
trained in regulations. And we spend a whole lot more money
reaching out to make sure that all of our pieces are in place, not
to provide a safe and sound loan, but to provide a safe and sound
loan that checks all the boxes, that has all the pieces of each and
every regulation, like I said, that is an ever-changing interpreta-
tion.
Mr. BEAN. I gotcha. What do your customers say? I know when
I was there every loan I made to every business that I felt, you
know, a part of the excitement of growing that business and mak-
ing sure that they grew and, most importantly, could pay us back
and that they would thrive as well. What are your customers say-
ing? What is the word on the street at First Texas State Bank?
Ms. PRINCE. So, our customers are expressing the same things
about supply chains and finding labor and ever-increasing costs.
Our customers are very concerned about interest rates and they
are concerned about the same sort of regulatory requirements. So,
they want to go in, they want to get a permit, they want to do their
job. They want to do their job right. They want to know that they
can predict the cost of that so that they end up walking away with
a profit. And in the current environment, that is an ever-changing
process, also. Right? If you started in 2019, or we started to build
a building in 2020, the price went up probably 50 or 60 percent be-
fore that building was complete. And most people don’t have that
in their business plan.
So, we need a tax environment that is good, but we need a regu-
latory environment that is appropriate. We need interest rates that
are reasonable. We need energy. We need the things that are all
the inputs into our businesses so that they can be profitable and
successful.
Mr. BEAN. Thank you very much.
Ms. PRINCE. And I am with you. Every one of those busi-
nesses——
Mr. BEAN. You feel for them.
Ms. PRINCE.—we are attached to them, we have a partnership
with them. We are there to make sure that we weather the storm
with them.
Mr. BEAN. Very good. No, I am with you.
Mr. Heim, I have got a lot of questions, but guess what? That
clock on me is eaten up. You have talked about inflation kicking
your tail, but there is something on your mind right now. What is
it?
Mr. HEIM. So, in dealing with banks for the last 30 years, the
one thing that I really notice is as these regulations grew and as
your conditions grew, right, we lost our relationship with our bank-
ers. So, what used to be you go out to lunch, they start to fully un-
derstand your business and understand why you need what you
need. Today, I don’t think that is there anymore. I think you are
writing on a piece of paper on if they feel adequate for you to get
a loan or not. But it is no longer that personal relationship.
Mr. BEAN. To that end, there are people like Ms. Prince—and
I thrived on that because the big banks, I was a small little banker
30
and that was my little secret weapon that I could develop that rela-
tionship. So, she is already nodding, she gets that. And that is why
bankers like Ms. Prince are going to thrive.
With the last few seconds that I have, let us go back to Drew
Davis. Drew Davis, everybody wants to know you are 17. Are you
a junior? You are a junior now, about to be a senior or you are a
senior?
Mr. HEIM. So, I am a senior running my business out of the li-
brary 5 hours a day because I only have two classes.
Mr. BEAN. No. Well, we are all proud of it. Your folks are proud.
They are beaming tall. But with the last few seconds, everybody
wants to know, what are you doing next? Are you going to college?
Are you going to just go full-time on the hot sauce? What is next
for Drew Davis?
Mr. DAVIS. I mean, I don’t really know because every time I
think I know what is next, something else happens. But to that
tune, I think I am going to be traveling a lot next year and into
later this year, just focusing on scaling and getting our story out
there because I think it is an important one. And just have as
many people get Crippling Hot Sauce in their hands as humanly
possible.
Mr. BEAN. Very good. And hopefully, a lot of people are seeing
it today. Let us wrap up with Maryland. Mr. Mfume, you are recog-
nized for 5 minutes.
Mr. MFUME. Thank you very much, Mr. Chairman. I want to
add my thanks to the others who have commended you for gath-
ering us for this hearing today. I want to particularly thank the
witnesses for diverse testimony. As Dean Phillips said when he was
here earlier, I think he referred to all of you as a mosaic, a banker,
a construction worker, company, a product maker, and a service
provider.
One of the things about being the caboose is that in the end, ev-
erything that can be said has been said. It is just that not every-
body has said it. So, bear with me for a few minutes as I go
through just really some observations. I don’t know if I have got
that many questions.
Mr. Heim, let me just let you know that I heard your invitation
to Representative Meuser, and I see he did not say yes. So, I am
going to commit him to come work with you from can’t-see in the
morning to can’t-see at night in Pennsylvania. And when I go on
to the floor to vote, I will let him know that he is expected to follow
up. I am doing unto him as he would do unto me. Trust me.
And one of the things that has been interesting from my perspec-
tive is the fact that so many people, Mr. Chairman, have talked
about children and their children and other children and providing
and also building a future for those children. I keep hearing the
terms three-year-olds and four-year-olds. And that was a long time
ago for me. So, I was particularly happy that Ms. Prince mentioned
and said, does anybody remember the 1980s? Yes, there are some
of us still around who remember that. And for me, the perspective
is interesting. In the 1980s, I was a freshman on this Committee.
Ronald Reagan was president, and I spent five terms here in this
Committee hearing testimony like this.
31
My angst is that now, many, many years later, I am still hearing
the same issues, the same problems. And I wonder, is it a matter
of having come a long way or still having a much longer way to
go.
I left this body after five terms on my own, walked out the door
and wanted to go see the rest of the world. And here I am 26 years
later, back on this committee hearing this. So, I am hoping that as
we establish, Mr. Chair, a record here that that record really pro-
vides direction so that we can come out of this fashioning legisla-
tion to be able to assist with the problems that we have heard
about today, which are not new, but seriously should not be al-
lowed to continue and to go on. It is a good record. I want to thank
all of you for adding to it.
I am going to use this. I think I have got 2 minutes here just
to say a couple of things and ask a couple of quick questions. Ms.
Hendrickson, you talked about the increased costs that you are fac-
ing and how, unfortunately, you have got to continue to pass it on
and pass it on to parents. Unlike big corporations, small businesses
don’t have teams of lawyers and tax accountants. And so I am real-
ly interested in knowing if you have some thoughts on the tax code
and how it affects you and a suggestion of something that might
be done to make it more palatable.
Ms. HENDRICKSON. I think just fair taxation in general. All of
us small business owners pay a much larger percent of our income
into a system that then takes that money and it goes to the larger
corporations and goes to those types of things so that our small
businesses have a harder time then and are paying for those large
businesses to buy back stock and things like that for their share-
holders.
Mr. MFUME. So, a greater sense of fairness.
Ms. HENDRICKSON. Yes, definitely. And reinvesting in our peo-
ple, especially our rural communities, because everybody is leaving
because main street businesses are leaving. And when somebody
drives through, they do not have a place to stop to eat because
there is nothing left. We can look at it as like our interstate sys-
tem. They go around everybody, and the fastest person who can
drive on that the fastest gets——
Mr. MFUME. I see.
Ms. HENDRICKSON.—the most instead of our.
Mr. MFUME. So, you would support tax credits for reinvest-
ments——
Ms. HENDRICKSON. Yes.
Mr. MFUME.—back into small businesses.
Ms. HENDRICKSON. Yeah.
Mr. MFUME. Good. Mr. Davis, I want to ask you just one or two
quick things. First of all, I want to commend you. I have got a 17-
year-old grandson, so he is on his way to college, and in 4 years
I may send him directly to you so that he might find a way to get
his first job. But I want to commend you seriously on what you are
doing. I don’t even remember what I was doing at 17, but I know
I wasn’t as accomplished as you are. So thank you for being here.
Thank you also for the simple eloquence of your example so that
other people who watch this, who may have a disability, may come
to understand that that is not the end of the world for them. And
32
we have heard on this committee over and over again, well, why
do you need to focus on this group and why do you need to focus
on that group? And we focus too much on women or we focus too
much on minorities or disadvantaged businesses or veterans. Well,
I am going to add to that category that we ought to find some way
to focus also on individuals like yourself who have overcome a
great disability and who are contributing back to the country. So
I want to congratulate you on that.
I see my time—this time does not last long, ladies and gentle-
men. It is fleeting. Mine has expired and it is starting to flash in
front of me. So, let me just thank you again for being here for your
testimonies.
Drew, I do have a few seconds. Would you go ahead and, for the
record, kind of sum up what your feelings are about this, particu-
larly from your perspective?
Mr. DAVIS. Yes. So, I believe, like you mentioned, that from my
ownership of Crippling Hot Sauce, millions of dollars,, of tax dol-
lars could be generated off of just simple grants from those individ-
uals that aren’t as fortunate as I am. I have been lucky enough to
meet a bunch of individuals, and I just really thank everybody that
has been with me along the way. But I have talked to hundreds
of people with disabilities through my kind of statistical analysis
just to see how people respond off of the name. And I also ask them
simple questions. And the main answer is, man, we would like to
do something like you. We just don’t know where to start because
there is not representation and there is not many resources out
there.
Mr. MFUME. Thank you. Thank you, Mr. Chairman.
Chairman WILLIAMS. Now we go to Mr. Molinaro for 5 minutes.
Mr. MOLINARO. Thank you, Mr. Chairman. I have some pre-
pared questions I wanted to get to, but I wanted to echo my col-
leagues’ comments. Eighty percent of those with disabilities are un-
employed in America. Eighty percent. And Mr. Davis, Drew, I am
going to plant a question your mind and I am going to let you an-
swer it last.
I have spent a great deal of time in the disabilities workspace.
Creating a pipeline to jobs is so, so challenging. You are inspiring
in your own right. But there are countless young people and adults
living with intellectual, physical, and developmental disabilities
today who would like to enter the workforce. I would like you to
close. I am going to take my time, but I want you to close with the
one thing that you want them to know about how to be a success.
And I say this as the father of a child with a disability who often
needs to be inspired. And I want her to hear your words before we
close today.
Mr. Chairman, there is little question that small businesses are
the backbone of our local economy. Seventy percent of new jobs are
created by existing small businesses. During the last 2-1/2 years,
small businesses felt the brunt of the pandemic economic closure
and the challenges that we face. I know many of my colleagues
have already asked so many questions already. I am sorry that I
might repeat one or two in my few moments.
But first to Mr. Heim. I live in a place where access to workforce,
like lots of places in America, is a challenge. But because it is a
33
more rural part of New York, limited access to transportation.
Daycare is a massive obstacle. Educational opportunity is limited,
and in many cases, of course, New York leads the nation in out-
migration. So, we see more people leaving other states than any
other place in America.
Can you talk briefly? What are the things you have done or
would do to expand access to that workforce?
Mr. HEIM. So, you are asking how do we get them not to leave?
Mr. MOLINARO. Yes. I mean, I know the answer.
Mr. HEIM. We are in the same shape.
Mr. MOLINARO. Yeah.
Mr. HEIM. Pennsylvania is the same way. So, we are in a rural
area, also. You know, honestly, I believe it starts at high school.
It starts at middle school. We need to retrain the way kids are
thinking. We need to get them to understand that, you know, doing
what we do in our trades or being in manufacturing is a good
thing. There is a lot of money to be made out there. And in our
industry there is something to be very proud of. When you are done
working for the day, you could step back and you can look at some-
thing for the rest of your life and say, I was part of that and you
can take your grandchildren there and so on. So, it is really edu-
cating the youth, really, and getting a mindset change.
Mr. MOLINARO. Yeah. We often say that our educational out-
comes don’t meet our economic needs. And in some ways, the lack
of vocational training, applied sciences, and others not only dimin-
ishes the value of the work, but demoralizes the individual. And I
find that many people trying to enter the workforce, in particular,
lacking access to that kind of education feel worth less. And, of
course, they spent 2 years listening to governors like mine say that
certain people were essential and certain people were not as if gov-
ernment has any right to dictate. So I appreciate you pointed that.
Did you want to add to that?
Mr. HEIM. No.
Mr. MOLINARO. Ms. Prince, so, you know, my part of New
York, upstate, rural, massive what we call financial deserts, bank-
ing deserts, access to capital is a major concern. What are the—
what particular steps would make sense to broaden access to cap-
ital, in particular, support and spur innovation? Knowing that
Drew gets the last 60 seconds of my time.
Ms. PRINCE. Okay. So. in our organization, we have 14 loca-
tions. Some of those locations are in the metroplex, some of those
locations are in communities as small as 1,500 people. So, we have
made a commitment to those deserts, as you say, to make sure that
they still have access to community bankers who are focused on
their needs and preserving their way of life.
When you think about the people who have left to take—because
they didn’t want a construction job, the same thing has happened
across the country in ag jobs. Ag families have lost generation after
generation to the city. And we need those people back just like we
need the construction people back.
Mr. MOLINARO. I appreciate that. Mr. Chairman, I appreciate
the opportunity to Chair the Subcommittee on Innovation Work-
force Development and I appreciate that honor. Drew is a living ex-
ample of what we need to do to spur innovation.
34
Drew, what would you tell those living with disabilities what
they need to do to be a success?
Mr. DAVIS. So, mine would be just to push the envelope. There
is a bunch of technological resources you got out there from tech-
nology. My favorite new one is AI and which I use to write a lot
of my captions because I can’t write as fast as a lot of people can.
But it is just to use your resources. Don’t be afraid of them.
And live your life like a story, one page at a time, and just con-
tinue seeing what you could do. If you fail, it is okay. If you don’t,
you are a legend.
Mr. MOLINARO. Mr. Chairman, you are a legend. I yield back
my time.
Chairman WILLIAMS. That is a great way to close. And I want
to thank all the witnesses today. You all have really done a great
job. And one thing I want you to take back home, because every-
body looks at Washington, we are a disaster. We are a mess up
here, we know that. But at the same time, I think you can see
today that we do have a lot of things we agree on. And this was
a great hearing today where I think everybody agrees on the im-
portance of small business and that sort of thing. So I want to
thank all of you for being here.
So, without objection, Members have 5 legislative days to submit
additional materials and written questions for the witnesses to the
Chair, which will be forwarded to the witnesses. I ask the wit-
nesses to please respond promptly.
And if there is no other further business, without objection, the
Committee is adjourned. Thank you.
[Whereupon, 11:46 a.m., the committee was adjourned.]
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