Markup of H.R. 4256, "Investing in Main Street Act of 2021", H.R. 4481 — Committee on Small Business
Summary
A markup before the Committee on Small Business, House of Representatives, on July 29, 2021, covering bills including H.R. 4256, the Investing in Main Street Act of 2021, H.R. 4481, the Small Business 7(A) Loan Agent Transparency Act, and H.R. 4531, the 7(A) Loan Agent Oversight Act. It also lists H.R. 3469, the Veteran Entrepreneurship Training Act of 2021, and bills on small business cybersecurity. Hon. Nydia Velázquez presided as chairwoman of the Committee, which met at 10:01 a.m. in Room 2360 Rayburn House Office Building and via Zoom. The contents list opening statements by Hon. Nydia Velázquez and Hon. Blaine Luetkemeyer and appendix material listing the bills and remarks submitted by Rep. Brad Schneider.
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“Markup of H.R. 4256, ‘Investing in Main Street Act of 2021’, H.R. 4481 — Committee on Small Business.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/chrg-chrg-117hhrg45660-chrg-117hhrg45660/
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MARKUP OF: H.R. 4256, ‘‘INVESTING IN MAIN
STREET ACT OF 2021’’, H.R. 4481, ‘‘SMALL
BUSINESS 7(A) LOAN AGENT TRANSPARENCY
ACT’’, H.R. 4531, ‘‘7(A) LOAN AGENT OVER-
SIGHT ACT’’, H.R. 3469, ‘‘VETERAN ENTREPRE-
NEURSHIP TRAINING ACT OF 2021’’, H.R. 3462,
‘‘SBA CYBER AWARENESS ACT’’, H.R. 4515,
‘‘SMALL BUSINESS DEVELOPMENT CENTER
CYBER TRAINING ACT OF 2021’’, H.R. 4513,
‘‘SMALL BUSINESS ADVANCED CYBERSECURITY
ENHANCEMENTS ACT OF 2021’’
HEARING
BEFORE THE
COMMITTEE ON SMALL BUSINESS
UNITED STATES
HOUSE OF REPRESENTATIVES
ONE HUNDRED SEVENTEENTH CONGRESS
FIRST SESSION
HEARING HELD
JULY 29, 2021
Small Business Committee Document Number 117–029
Available via the GPO Website: www.govinfo.gov
U.S. GOVERNMENT PUBLISHING OFFICE
45–660 WASHINGTON : 2021
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HOUSE COMMITTEE ON SMALL BUSINESS
NYDIA VELÁZQUEZ, New York, Chairwoman
JARED GOLDEN, Maine
JASON CROW, Colorado
SHARICE DAVIDS, Kansas
KWEISI MFUME, Maryland
DEAN PHILLIPS, Minnesota
MARIE NEWMAN, Illinois
CAROLYN BOURDEAUX, Georgia
TROY CARTER, Louisiana
JUDY CHU, California
DWIGHT EVANS, Pennsylvania
ANTONIO DELGADO, New York
CHRISSY HOULAHAN, Pennsylvania
ANDY KIM, New Jersey
ANGIE CRAIG, Minnesota
BLAINE LUETKEMEYER, Missouri, Ranking Member
ROGER WILLIAMS, Texas
JIM HAGEDORN, Minnesota
PETE STAUBER, Minnesota
DAN MEUSER, Pennsylvania
CLAUDIA TENNEY, New York
ANDREW GARBARINO, New York
YOUNG KIM, California
BETH VAN DUYNE, Texas
BYRON DONALDS, Florida
MARIA SALAZAR, Florida
SCOTT FITZGERALD, Wisconsin
MELISSA JUNG, Majority Staff Director
ELLEN HARRINGTON, Majority Deputy Staff Director
DAVID PLANNING, Staff Director
(II)
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CONTENTS
OPENING STATEMENTS
Page
Hon. Nydia Velázquez ............................................................................................. 1
Hon. Blaine Luetkemeyer ....................................................................................... 2
APPENDIX
Additional Material for the Record:
H.R. 4256 ........................................................................................................... 20
H.R. 4481 ........................................................................................................... 22
H.R. 4531 ........................................................................................................... 26
H.R. 3469 ........................................................................................................... 29
H.R. 3462 ........................................................................................................... 38
H.R. 4515 ........................................................................................................... 43
H.R. 4513 ........................................................................................................... 47
Mark-up Remarks—Boots to Business submitted by Rep. Brad Schneider 57
America’s SBDC ................................................................................................ 61
(III)
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MARKUP OF: H.R. 4256, ‘‘INVESTING IN MAIN
STREET ACT OF 2021’’, H.R. 4481, ‘‘SMALL
BUSINESS 7(A) LOAN AGENT TRANS-
PARENCY ACT’’, H.R. 4531, ‘‘7(A) LOAN
AGENT OVERSIGHT ACT’’, H.R. 3469, ‘‘VET-
ERAN ENTREPRENEURSHIP TRAINING ACT
OF 2021’’, H.R. 3462, ‘‘SBA CYBER AWARE-
NESS ACT’’, H.R. 4515, ‘‘SMALL BUSINESS DE-
VELOPMENT CENTER CYBER TRAINING ACT
OF 2021’’, H.R. 4513, ‘‘SMALL BUSINESS AD-
VANCED CYBERSECURITY ENHANCEMENTS
ACT OF 2021’’
THURSDAY, JULY 29, 2021
HOUSE OF REPRESENTATIVES,
COMMITTEE ON SMALL BUSINESS,
Washington, DC.
The committee met, pursuant to call, at 10:01 a.m., in Room
2360 Rayburn House Office Building and via Zoom, Hon. Nydia
Velázquez [chairwoman of the Committee] presiding.
Present: Representatives Velázquez, Golden, Crow, Davids,
Mfume, Phillips, Newman, Carter, Bourdeaux, Chu, Evans,
Delgado, Houlahan, Andy Kim, Craig, Luetkemeyer, Williams,
Stauber, Meuser, Tenney, Garbarino, Young Kim, Van Duyne,
Donalds, and Fitzgerald.
Chairwoman VELÁZQUEZ. Good morning. With a quorum being
present, I call this morning’s meeting of the Committee on Small
Business to order. Without objection, the Chair is authorized to de-
clare recess at any time.
I would like to begin by noting some important requirements. In
accordance with the Attending Physician’s most recent guidance,
all Members and staff who attend this hybrid markup in person
will be required to wear masks in the hearing room. Furthermore,
all Members and staff who have not been fully vaccinated must
also maintain 6-foot social distancing from others. With that said,
Members will be allowed to briefly remove their masks if they have
been recognized to speak.
As required by House rule, copies of the measures have been
made available to Members and the public at least 24 hours in ad-
vance.
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Today, we will be considering seven bipartisan bills that will
make it easier for small business owners across America to launch
and grow their small businesses. As we know, access to capital re-
mains one of the biggest challenges facing small businesses today,
and we will take up three bills to improve SBA programs to meet
the capital needs for small firms.
Besides access to capital, cybersecurity is increasingly becoming
a threat to entrepreneurial success. To that end, we will consider
three bills to address the increasing and evolving cyber attacks
aimed at small businesses.
Finally, we will also take up a bill to assist aspiring veteran en-
trepreneurs who have made many sacrifices for our country.
Before we get down to business, I would like to thank the Rank-
ing Member, Mr. Leutkemeyer, for his collaboration on these seven
bills, as well as the staff of the Small Business Committee from
both sides. I look forward to working on many more. Our small
businesses depend on our bipartisanship and cooperation now more
than ever.
The seven bills that we are considering today are a product of
the hearings and hard bipartisan work of our Members. I strongly
support each of the seven bills to be marked up today.
I would like to recognize the distinguished Ranking Member, Mr.
Leutkemeyer, for his opening statement.
Mr. LEUTKEMEYER. Thank you, Madam Chair, for holding this
markup. We believe that this legislation that we are talking about
today will help strengthen our nation’s job creators and the Small
Business Administration’s programs. The SBA, along with many
other Federal agencies, raced to assist the nation as COVID-19 de-
scended upon America.
Through the quick action taken by the Trump administration
and Congress, numerous small business relief programs were cre-
ated to help our nation’s smallest firms survive the pandemic as
well as the state and local shutdown orders that followed. Many of
these programs included the Paycheck Protection Program, PPP,
which proved to be a lifeline during many months of uncertainty.
The PPP program also proved to be a major success through its
partnership with private sector lenders to get money to a strug-
gling small business more quickly and efficiently.
With that being said, while our country continues to move for-
ward toward recovery, many of SBA’s COVID programs are nearing
completion. For example, nearly 11 million loans disbursed under
PPP are now going through the PPP loan forgiveness process. Al-
though the PPP has been and continues to be successful through
private sector lending, other programs have been hampered with
countless instances of fraud, bureaucratic delays, and constitu-
tional questions.
According to the SBA’s Inspector General, the Economic Injury
Disaster Loan, EIDL program, which is a direct lending program
through SBA, not private lenders, has been subject to rampant lev-
els of fraud and abuse. Additionally, the Shuttered Venue Opera-
tors Grant, SVOG program, has been plagued with inexcusable
delays while the Restaurant Revitalization Fund Program, RRF,
has been ruled unconstitutional due to biased priority groups the
Democrats created in the enacting legislation.
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Nevertheless, our nation’s small businesses, entrepreneurs, and
startups continue to face extreme obstacles throughout the recovery
due to the Democrat-induced inflation, the looming labor crisis, and
the potential for increased taxes for the middle class. These
headwinds are putting main street, USA’s recovery in jeopardy. We
must fix these issues to protect the American worker.
On that note, I look forward to working with all of my colleagues
today and going forward to discuss pro-growth policies that will
produce an environment where small businesses can operate inde-
pendently without the government standing in their way. While we
have these debates it is critical that we also ensure the SBA’s tra-
ditional programs are operating efficiently and effectively, and that
is what bring us to today’s markup.
In a bipartisan fashion, Members on both sides of the aisle have
considered and have identified areas where this Committee can ad-
just existing SBA programs to better position small businesses.
Many of these bills were in the works in previous sessions of Con-
gress, but some take a new approach to provide increased oversight
of the SBA’s programs. With the SBA’s lending programs, the
Small Business Investment Company, SBIC, continues to provide
small businesses across the United States with access to capital.
Today’s SBIC legislation will provide even more access to capital by
examining the role of banks and other savings institutions within
the program.
Beyond the SBIC program we have two bills that examine the
role of loan agents within the SBA’s 7(a) Loan Program. The 7(a)
Loan Program, the SBA’s largest traditional lending tool which pro-
vides access to capital for small businesses that cannot find it else-
where, as the SBA continues to use more loan agents within their
programs, it is essential that the agency has a clear view of how
these agents operate.
According to an October 2020 report, the SBA’s Inspector Gen-
eral stated, ‘‘Previous OIG audits and investigations have shown
SBA could not effectively identify and track loan agent involvement
in its 7(a) and 504 Loan programs or portfolios and have outdated
enforcement regulations. OIG investigations have also revealed a
pattern of fraud by loan packagers and other fee-based agents in
the 7(a) Loan Program involving hundreds of millions of dollars.’’
The bills before by the gentleman from Pennsylvania, Mr.
Meuser, and the gentleman from Minnesota, Mr. Phillips, will focus
on loan agents and examine the SBA’s oversight capabilities. The
discussion of loan agents will not end today. I look forward to ex-
ploring their role within this program and other SBA programs
moving forward.
When it comes to our veterans, the Boots to Business Program
is an important resource available to the men and women who
have valiantly served our country. I commend the gentleman from
Texas, Mr. Williams, and the gentleman from Illinois, Mr. Schnei-
der, for continuing the Boots to Business effort during the 117th
Congress.
Lastly, the Committee will examine three separate cybersecurity
bills that will address the needs of small businesses as well as en-
suring that SBA has a safe and sound cyber infrastructure net-
work. As we all heard at our cyber hearing last week, America’s
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smallest firms are increasingly vulnerable to the exploits of
cybercriminals. Often a cyber attack on a small business results in
a permanent operational damage to its ecosystem. We must have
the structure in place to assist these small businesses through dif-
ficult times and educate small business owners on the tools avail-
able to protect them from these cyber attacks.
Again, I would like to thank the Chair for bringing these bills to
the Committee. I support the approach taken by the Committee
Members to address these issues.
With that, Madam Chair, I yield back.
Chairwoman VELÁZQUEZ. Thank you very much. The gen-
tleman yields back.
Before we get into the individual bills, are there any Members
present who seek recognition for the purpose of making an opening
statement?
Seeing none, we will move to consideration of H.R. 4256, the ‘‘In-
vesting in Main Street Act of 2021,’’ introduced by Congresswoman
Chu and cosponsored by Congressman Garbarino. This bill will
harmonize the Small Business Investment Act of 1958 with the Of-
fice of the Comptroller of the Currency’s national bank charter per-
centage requirements.
I would now like to recognize the gentlewoman from California,
Ms. Chu, the sponsor of the bill, for an opening statement.
Ms. CHU. Thank you, Chairwoman Velázquez and Ranking
Member Luetkemeyer for your support of this legislation. Also,
thank you to my colleague, Representative Garbarino, for your
partnership.
The Investing in Main Street Act would make a simple common-
sense change to small business investing laws to ensure that SBA-
certified small business investment centers, or SBICs, can take full
advantage of capital available from traditional banks and federal
saving associations. Even though banking rules allow financial in-
stitutions to invest up to 15 percent of their capital and surplus in
SBICs, small business investing rules prevent that. The Small
Business Investment Act caps these investments far lower at just
5 percent of capital and surplus. The Investing in Main Street Act
amends this outdated law to ensure that banks can invest the full
15 percent in SBICs, a simple change that will dramatically in-
crease the amount of investment capital available to our country’s
small businesses.
By raising this cap, this legislation will deliver more investments
and more financing to our small businesses for whom even small
investments can mean so much. Already SBICs have helped compa-
nies like Tesla, Apple, and Intel get off the ground back when they
were considered small businesses. They fill a gap in the investment
ecosystem and level the playing field by providing equity invest-
ments and financing opportunities to the smallest businesses which
face the highest barriers to secure investments from traditional pri-
vate investors.
In fact, in fiscal year 2020, SBICs made nearly a quarter of their
financing to underserved businesses and the nearly 300 certified
SBICs in operation today have invested or committed $32 billion in
small businesses nationwide. Last year, in my state of California
alone, SBICs made nearly 300 financings totaling over $670 mil-
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lion. By raising the investment cap from 5 percent to 15 percent,
we could potentially triple those numbers in the years to come.
That growth will be so important as our country faces a long eco-
nomic recovery ahead of us, especially as the Delta variant threat-
ens to erase some of the hard-earned gains we made this spring
and summer.
America’s small businesses have endured one of the most chal-
lenging periods in our country’s history and now is the time to help
them rebuild and grow. The Investing in Main Street Act would do
just that. I urge the Committee to vote yes on this critical legisla-
tion, and I yield bank.
Chairwoman VELÁZQUEZ. Thank you. The gentlewoman yields
back. I would now like to recognize the gentleman from New York,
Mr. Garbarino, for an opening statement.
Mr. GARBARINO. Thank you, Madam Chair, and thank you
Ranking Member for holding today’s markup on all the bills before
us. I would also like to thank Representative Judy Chu from Cali-
fornia for joining forces with me to better support the SBA’s Small
Business Investment Company program.
The SBIC program is a unique tool that provides private equity
capital to small businesses in a prudent way. In fiscal year 2020,
the program helped finance over 1,000 small businesses and sup-
ported over 91,000 jobs, all while running on zero cost subsidy to
the American taxpayer.
However, as this program advances, its rules regarding the role
of banks and savings associations are becoming increasingly out-
dated. H.R. 4256, the ‘‘Investing in Main Street Act of 2021,’’ will
update these rules by addressing how much money a bank or other
savings institutions can invest in an SBIC from 5 percent to 15
percent. Importantly, with any investment above 5 percent a bank
or savings institution would need the approval from its federal fi-
nancial regulator in order to proceed.
The changes within H.R. 4256 would also level the SBIC rules
with longstanding requirements at the Office of the Comptroller of
the Currency. The SBIC program has the ability to play an impor-
tant role in the long-term outlook for small businesses, but Con-
gress must modernize its rules to keep pace. H.R. 4256 delivers
modernization and provides further access to capital for small busi-
nesses in my district in New York and beyond. I look forward to
continuing with my counterparts to ensure this bill makes progress
and is sent to the House floor swiftly.
Madam Chair, I yield back the balance of my time.
Chairwoman VELÁZQUEZ. The gentleman yields back. Are
there any other Members who wish to be recognized for a state-
ment on H.R. 4256?
I would now like to recognize the Ranking Member.
Mr. LEUTKEMEYER. Thank you, Madam Chair. I would like to
thank the gentlelady from California, Ms. Chu, and the gentleman
from New York, Mr. Garbarino, for working on this legislation in
the 117th Congress.
The changes reflected in H.R. 4256 will address and update how
banks and savings institutions operate within the SBIC program.
As we continue to examine the post COVID-19 small business envi-
ronment it will be critically important to ensure the existing SBA
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program are ready for recovery. H.R. 4256 is a step in the right di-
rection. The Investing in Main Street Act passed the House in the
last two Congresses and I look forward to working with the Chair
to ensure it passes again and moves forward all the way to the
Senate. I urge my colleagues to support H.R. 4256.
With that, Madam Chair, I yield back the balance of my time.
Chairwoman VELÁZQUEZ. Thank you. The gentleman yields
back. I would now like to recognize myself briefly.
Improving access to capital has been a top priority of mine and
it is important that SBA programs and rules governing them are
consistent, especially if multiple agencies have issued similar guid-
ance. This bill improves SBA access to capital programs by harmo-
nizing the statutory provisions of the Small Business Investment
Act with similar regulations published by the OCC.
Thank you, Ms. Chu and Mr. Garbarino, for reintroducing this
bill. I am pleased to support it and I urge a yes vote.
If there is no further discussion, the Committee will move on to
consideration of H.R. 4256. The clerk will report the bill.
H.R. 4256
The CLERK. H.R. 4256, ‘‘Investing in Main Street Act of
2021’’——
Chairwoman VELÁZQUEZ. Without objection, H.R. 4256 is con-
sidered as read and open for amendment at any time. Does anyone
seek recognition to offer an amendment?
Seeing none, the question is now on H.R. 4256.
All in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it and H.R. 4256 is
agreed to.
The question now occurs on reporting H.R. 4256 favorably to the
House.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it and H.R. 4256 is
reported to the House.
Without objection, Committee staff is authorized to correct punc-
tuation and make other necessary technical corrections and con-
forming changes. Without objection, Members have 2 business days
to file additional supplemental, dissenting, and minority views.
H.R. 4481
Our second bill today is H.R. 4481, the ‘‘Small Business 7(a)
Loan Agent Transparency Act,’’ introduced by Congressman Phil-
lips and cosponsored by Congressman Meuser. This bill will estab-
lish a registration system for 7(a) agents by assigning them a
unique identifier. It allows SBA to collect data to help track and
evaluate the performance of loans generated through loan agent ac-
tivity.
I would now like to recognize the gentleman from Minnesota, Mr.
Phillips, the sponsor of the bill, for an opening statement.
Mr. PHILLIPS. Thank you, Chairwoman Velázquez, and greet-
ings to my colleagues. Let me just begin quickly. I know it is in
vogue to criticize one party, Democrats, for inflation right now. I
want to remind everybody that after an economy is shut down be-
cause of a pandemic we should expect inflation. I think as Mem-
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bers of the Small Business Committee having a markup today, we
should be celebrating the fact that our GDP in the United States
of America now exceeds pre-pandemic levels. Let us do a little cele-
brating in a Committee that surely should on a day like this.
I want to speak to H.R. 4481 and urge support of the bill, the
‘‘Small Business 7(a) Loan Agent Transparency Act.’’ The Small
Business Administration 7(a) Loan Guarantee Program is the agen-
cy’s flagship loan program. In fiscal year 2020, the SBA approved
over 42,000 7(a) loans, totaling nearly $22.6 billion.
The SBA also administered several subprograms within 7(a) that
offers streamlined and expedited loan procedures for particular
groups of borrowers, including the SBA Express and Community
Advantage Pilot Programs. It was on this framework that Congress
first established the Paycheck Protection Program, which has been
responsible for extending more than $790 billion in relief to small
businesses throughout the United States in the wake of the
coronavirus pandemic. Together these programs work to fulfill the
SBA’s mission of aiding and protecting the interests of small busi-
nesses, particularly those that might not otherwise obtain financ-
ing under reasonable terms and conditions.
The capital provided by the 7(a) program supports small busi-
nesses seeking to purchase real estate, equipment, and supplies to
provide short- and long-term working capital or to refinance cur-
rent business debt. Its importance cannot be overstated.
In February of 2020, this Committee held a hearing to examine
the management of SBA’s Office of Credit Risk Management, which
is responsible for the oversight of SBA lenders and its 7(a) loan
portfolio. During the hearing OCRM’s director testified that SBA
lacks a way to uniquely identify and systemically track loan agent
activity. Instead, they must rely on self-reported lender reviews to
obtain information about 7(a) agents.
Without these unique identifiers there is very little data that is
collected about those responsible for the processing billions and bil-
lions in taxpayer funds and working with small businesses across
the country. This can potentially place small businesses at risk and
is an opportunity for the adoption of a bipartisan commonsense so-
lution to help protect the hard-earned resources of Americans.
The ‘‘Small Business 7(a) Loan Agent Transparency Act’’ would
require OCRM to establish a registration system for 7(a) agents
that collects data to help OCRM track and evaluate performance
of loans generated through agent activity. OCRM will need to es-
tablish a database with the type of services performed by 7(a)
agents and require the registration before an agent provides serv-
ices to a lender or borrower. These provisions will improve enforce-
ment and oversight actions and will address the increased risk in-
troduced by loan agents, which has been cited as one of the top
management and performance challenges facing SBA.
While on this topic of strengthening oversight for the 7(a) pro-
gram, I would also like to briefly speak in support of the bill from
my friend, the gentleman from Pennsylvania, Mr. Meuser, his ‘‘7(a)
Loan Agent Oversight Act.’’ That bill is a companion to my own
and would require OCRM to submit a report to Congress on the
performance of loans that are generated through agent activity and
any risks involved in that work. I applause and celebrate Mr.
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Meuser’s leadership on this legislation and look forward to voting
in favor of it this morning as well.
I want to thank the Chairwoman, the Ranking Member, and the
Small Business Committee majority and minority staffs for work-
ing so diligently with us on this legislation. I also want to thank
my friend and colleague Mr. Meuser for his support and coauthor-
ship of the bill. Finally, to extent my gratitude to our cosponsors,
Reps. Donalds, Garbarino, Tenney, Salazar, and Oversight Ranking
Member Van Duyne.
I urge the Committee to adopt this measure and its companion
H.R. 4531, and report them favorably to the House.
With that, Madam Chair, I yield back.
Chairwoman VELÁZQUEZ. Thank you. The gentleman yields
back.
I would now like to recognize the cosponsor of the bill, Congress-
man Meuser, for an opening statement.
Mr. MEUSER. Well, thank you very much, Madam Chair, for
holding this markup to evaluate a number of these very important
bills that are very crucial, we feel, to the small business ecosystem.
As we examine access for capital for small businesses it is imper-
ative that we also look at the SBA’s existing 7(a) Loan Program,
as we are. I want to thank my friend, the gentleman from Min-
nesota, for his leadership as well and for working with me on the
role agents will pay within this program. Thank you, Mr. Phillips.
I do look forward to working in a bipartisan manner to ensure
the SBA has the correct level of oversight in place for the growing
population of agents within its flagship 7(a) Loan Program, as we
all understand how important this is.
So, I thank you, Madam Chair, and I yield back.
Chairwoman VELÁZQUEZ. The gentleman yields back. Are
there any other Members who wish to be recognized for a state-
ment on H.R. 4481?
I now recognize the Ranking Member for an opening statement.
Mr. LEUTKEMEYER. Thank you, Madam Chair. The utilization
and role of loan agents within the SBA’s government-guaranteed
lending programs is critically important. This bill and H.R. 4531
will spark an important conversation on whether SBA has its eyes
on who is participating in these programs. I have been told of
many problems with loan agents and we are going to have to take
a hard look at the role and activities of loan agents. Proper admin-
istration oversight of these programs will remain a high priority of
mine as this Congress moves forward.
I want to thank both gentlemen for working on these bills and
proposing solutions. I urge my colleagues to support the bill in
front of us today. I yield back.
Chairwoman VELÁZQUEZ. The gentleman yields back. Thank
you. I would now like to recognize myself briefly.
Our Committee has consistently heard from the agency’s watch-
dog about the increased risk associated with loans originated
through agent activity.
In October 2020, SBA’s IG identified increased risk introduced by
loan agents as one of the top management and performance chal-
lenges facing the agency in this fiscal year. This bill sets up a reg-
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istry for loan agents at SBA to help the agency monitor loan per-
formance for loans that originated with agents.
I want to really thank Mr. Phillips for introducing this bill and
I am pleased to support it. I urge a yes vote.
If there is no further discussion, the Committee will move on to
consideration of H.R. 4481. The clerk will report the bill.
The CLERK. ‘‘H.R. 4481, the Small Business 7(a) Loan Agent
Transparency Act.’’
Chairwoman VELÁZQUEZ. Without objection, H.R. 4481 is con-
sidered as read and open for an amendment at any point. Does
anyone seek recognition to offer an amendment?
Seeing none, the question is now on H.R. 4481.
All in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it and H.R. 4481 is
agreed to.
The question now occurs on reporting H.R. 4481 favorably to the
House.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it and H.R. 4481 is
reported to the House.
Without objection, Committee staff is authorized to correct punc-
tuation and make other necessary technical corrections and con-
forming changes. Without objection, Members have 2 business days
to file additional supplemental, dissenting, and minority views.
H.R. 4531
The next bill under consideration is H.R. 4531, the ‘‘7(a) Loan
Agent Oversight Act,’’ introduced by Congressman Meuser and co-
sponsored by Congressman Phillips. This bill will require an an-
nual report by SBA on the performance of and risks associated
with loans generated through loan agent activity.
I would now like to recognize the gentleman from Pennsylvania,
Mr. Meuser, the sponsor of the bill, for an opening statement.
Mr. MEUSER. Thank you very much, Madam Chair. As I men-
tioned earlier, it is imperative that the SBA has the oversight capa-
bilities in place to manage its access to capital programs. With that
in mind, Congress must be in a position to determine if congres-
sional intent is being followed. Without accurate information we
cannot perform that oversight that is so needed to safeguard and
protect American taxpayer dollars.
While Mr. Phillips’ bill, H.R. 4481, takes the steps to ensure the
SBA can track the role of agents within the SBA’s largest tradi-
tional lending program, my bill, H.R. 4531, the ‘‘7(a) Loan Agent
Oversight Act,’’ will ensure Congress receives the data it needs to
conduct proper oversight. H.R. 4531 would provide information on
how many loans have been processed with the assistance of loan
agents and the default rates of loans that are associated with loan
agents.
Additionally, the legislation requires the SBA to perform a risk
analysis on agents who operate within the program. At the end of
the day, these are government programs that were developed to as-
sist main street, USA for access to capital. Given this important
mission, Congress and the SBA must conduct the appropriate level
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of oversight. The information that will be provided to Congress
under H.R. 4531 will be paramount as we measure the effective-
ness of these programs and whether the SBA has the correct over-
sight requirements in place to administer such a significant pro-
gram.
As more small businesses utilize the SBA’s programs, it is in-
creasingly important for Congress to understand how different
groups assist small businesses and lenders through the lending
process.
Madam Chair, thank you for bringing these bills forward and I
look forward to working with my colleagues to further enhance the
small business environment in Pennsylvania and across the nation.
I yield back.
Chairwoman VELÁZQUEZ. Thank you. The gentleman yields
back.
Are there any other Members who wishes to be recognized for a
statement on H.R. 4531?
I will now recognize the Ranking Member.
Mr. LEUTKEMEYER. Thank you, Madam Chair. SBA’s Inspec-
tor General has spoken clearly on loan agents within the SBA pro-
grams. The bills before us today heed the warnings of the Inspector
General, who lists loan agents as a top management and perform-
ance challenge for the agency. With documented fraud totaling
hundreds of millions of dollars, H.R. 4531 will shed light on what
is truly happening within this program and provide Members of
Congress the information they need to continue to safeguard these
programs.
I look forward to examining the role of loan agents within the
traditional programs of SBA and the COVID relief programs that
were created and activated during the pandemic. I commend Rank-
ing Member Meuser of the Subcommittee on Economic Growth,
Tax, and Capital Access for crafting this legislation with Chairman
Phillips of the Oversight, Investigations, and Regulations Sub-
committee.
Madam Chair, with that, I urge my colleagues to support H.R.
4531, and I yield back.
Chairwoman VELÁZQUEZ. Thank you. The gentleman yields
back. Now I would like to recognize myself briefly.
To complement the loan agent registration established under Mr.
Phillips’ bill it is important for the agency to also report back to
Congress and the public on the performance of this loan. This bill
requires such a report on an annual basis.
I want to thank Mr. Meuser for introducing this bill and I am
pleased to support it. I urge a yes vote.
If there is no further discussion, the Committee will move on to
consideration of H.R. 4531. The clerk will report the bill.
The CLERK. H.R. 4531, the 7(a) Loan Agent Oversight——
Chairwoman VELÁZQUEZ. Without objection, H.R. 4531 is con-
sidered as read and open for amendment at any time.
Does anyone seek recognition to offer an amendment?
Seeing none, the question is now on H.R. 4531.
All in favor, say aye.
All those opposed, say no.
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In the opinion of the Chair, the ayes have it and H.R. 4531 is
agreed to.
The question now occurs on reporting H.R. 4531 favorably to the
House.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it and H.R. 4531 is
reported to the House.
Without objection, Committee staff is authorized to correct punc-
tuation and make other necessary technical corrections and con-
forming changes. Without objection, Members have 2 business days
to file additional supplemental, dissenting, and minority views.
H.R. 3469
We will now move on to H.R. 3469 introduced by Congressman
Schneider and cosponsored by Congressman Williams. H.R. 3469
makes improvements to SBA’s Boots to Business program as well
as offering certainty to transitioning veterans by authorizing the
program for 5 years.
I would now like to recognize the gentleman from Texas, Mr.
Williams, for an opening statement.
Mr. WILLIAMS. Thank you, Madam Chair. I represent Fort
Hood, one of the largest military bases in the world, and it is a
great honor to fight on behalf of these brave individuals every day
in Washington. Our veterans and servicemembers play a vital role
in our entrepreneurship economy.
These honorable men and women who served their country de-
serve to be equipped with the training and expertise to make a suc-
cessful career transition from the military. Many of them already
have the leadership. They have got problem-solving, their commu-
nications skills are the best, and we have in the armed forces skills
that translate well into entrepreneurial and business success.
The Boots to Business entrepreneurial education and training
program administered by the SBA’s Veterans Business Outreach
Centers is a valuable resource for transitioning servicemembers
looking to start their own businesses. This program is about more
than just getting a job. It is about getting a career and that is what
is important, and ensuring our veterans can successfully transition
from the battlefield to the business world.
That is why I am proud to co-lead with Congressman Schneider
the ‘‘Veterans Entrepreneurship Training Act of 2021,’’ which codi-
fies the Boots to Business program for 5 years. It will provide our
veterans and military families with a curriculum to lead them
through key steps for creating business concepts and give them the
foundational knowledge to bring their plan into fruition.
Additionally, this legislation facilitates the sharing of materials
with Departments of Defense and Veterans Affairs to include on
their websites, manuals, and local facilities and further expand the
impact of this program. This legislation passed the House with al-
most unanimous support last Congress and I urge my colleagues to
support our veteran entrepreneurs again this Congress with H.R.
3469.
With that, Madam Chair, I yield my time back.
Chairwoman VELÁZQUEZ. Thank you. The gentleman yields
back.
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I would like to enter into the record Mr. Schneider’s statement.
Without objection, his statement is entered for the record.
I would like to recognize the Ranking Member.
Mr. LEUTKEMEYER. Thank you, Madam Chair. It is an honor
to support legislation that empowers our veterans in their quest for
entrepreneurship. Last year, the Boots to Business program sup-
ported over 20,000 veterans, servicemembers, and military spouses
worldwide through the Introduction to Entrepreneurship course.
Our servicemembers are our nation’s best and brightest, and this
bipartisan legislation will codify the Boots to Business program for
5 years to further assist transitioning servicemembers in launching
and growing their own small businesses.
With that, Madam Chair, I urge my colleagues support and I
yield back.
Chairwoman VELÁZQUEZ. Thank you. The gentleman yields
back. I now would like to recognize myself briefly.
Starting a business after leaving military service provides an op-
portunity for veterans to not only build a new career, but to secure
their livelihoods. Authorizing the Boots to Business program for
the next 5 years will provide more than 18,000 new
servicemembers each year with the counseling, training, and tech-
nical assistance necessary to launch and grow their small busi-
nesses.
The skills they develop in the military—leadership, perseverance,
resourcefulness, and discipline—make them ideal business owners.
They are dedicated to their local communities and play a critical
role in boosting economic growth.
I want to thank Representative Schneider and Representative
Williams for their bipartisan work on this bill. I urge a yes vote
for those military servicemembers who have served this country
honorably.
If there is no further discussion, the Committee will move on to
consideration of H.R. 3469. The clerk will report the bill.
The CLERK. H.R. 3469——
Chairwoman VELÁZQUEZ. Without objection, H.R. 3469 is con-
sidered as read and open for amendment at any time.
Does anyone seek recognition to offer an amendment?
Seeing none, the question is now on H.R. 3469.
All in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it and H.R. 3469 is
agreed to.
The question now occurs on reporting H.R. 3469 favorably to the
House.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it and H.R. 3469 is
reported to the House.
Without objection, Committee staff is authorized to correct punc-
tuation and make other necessary technical corrections and con-
forming changes. Without objection, Members have 2 business days
to file additional supplemental, dissenting, and minority views.
H.R. 3462
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We will now consider H.R. 3462, the ‘‘SBA Cyber Awareness
Act,’’ introduced by Congressman Crow and cosponsored by Con-
gresswoman Young Kim. This bill directs the SBA to issue reports
on its cybersecurity infrastructure and in the event of cyber
threats, breaches, and cyber attacks at the agency.
I would now like to recognize Congressman Crow from Colorado,
the sponsor of the bill, for an opening statement.
Mr. CROW. Madam Chairwoman, thank you for the opportunity
to speak in support of H.R. 3462, the ‘‘SBA Cyber Awareness Act.’’
Our small businesses are the backbone of our economy, but are
increasingly the target of cyber attacks and theft of data and intel-
lectual property. Unfortunately, federal agencies are not immune to
such attacks either. According to the SBA’s Office of the Inspector
General, IT security is one of the most serious management and
performance challenges facing the agency in more than 20 years.
Over the course of the COVID-19 pandemic, unprecedented de-
mand for relief programs, like PPP and EIDL, have overwhelmed
SBA’s legacy systems. As a result, the glitch in the EIDL applica-
tion system led to an exposure of personal information of over
8,000 applicants with no public announcement of the data breach
until weeks later.
The SBA Cyber Awareness Act would direct the SBA to issue an
annual report assessing its cybersecurity infrastructure. The bill
also requires the SBA to report cyber threats, breaches, and cyber
attacks to the committees of jurisdiction and notify affected individ-
uals within 30 days of an incident.
Cyber attacks are one of the biggest threats to our economy and
small businesses. This bill would ensure that we are doing every-
thing we can to protect the millions of small businesses the SBA
serves and prepare them for 21st century threats.
I urge my colleagues to support the ‘‘SBA Cyber Awareness Act’’
and I thank the Chairwoman for the opportunity to speak on its
behalf, and I yield back.
Chairwoman VELÁZQUEZ. Thank you. The gentleman yields
back. Now I would like to recognize the gentlelady from California,
Ms. Kim, for an opening statement. She is the cosponsor of the bill.
Ms. YOUNG KIM. Thank you, Madam Chair. I would like to be
recognized to talk in support of the bill, H.R. 3462. I want to thank
the Chairwoman and Ranking Member for holding this important
markup.
I appreciate our Committee’s focus on cybersecurity with the
hearing last Tuesday as well as today with several cybersecurity
bills before us. One of the discussion points raised in last Tuesday’s
cybersecurity hearing was the concern small businesses have with
the government’s own cybersecurity measures. Many of us sitting
in this room have been the victims of a cyber attack on a govern-
ment agency, like the OPM data breach in 2015. We know how
critical it is for the government to protect its networks and safe-
guard our own personal information that we disclose to the govern-
ment. This is important data, like our birthdays and Social Secu-
rity numbers.
Fifty percent of small businesses with 500 or less employees say
that it is likely that they will experience a cyber attack in the next
12 months. One in four are experiencing more cyber attacks com-
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pared to a year ago. That is why I am voicing my support for H.R.
3462, the ‘‘SBA Cyber Awareness Act.’’ I want to thank my col-
league and my friend, Mr. Crow, for working with me on this im-
portant legislation. The ‘‘SBA Cyber Awareness Act’’ promotes
transparency within the SBA, so that Congress and affected indi-
viduals with data housed in SBA systems are timely notified in the
event of a cyber incident.
When the SBA discovered a flaw in its EIDL application system,
leading to the exposure of personal information for up to 8,000 in-
dividuals, the agency failed to make any public announcement of
the breach. It was not until weeks later that the SBA notified af-
fected individuals or even Members of Congress. This was simply
unacceptable and I believe the urgent necessity of this legislation
is very clear.
In addition to timely notification, the bipartisan bill requires an
annual cybersecurity report from the SBA, detailing any cyber inci-
dents and remediation efforts undertaken as well as an assessment
of the SBA’s information technology and cybersecurity infrastruc-
ture. Such measures can only enhance the cybersecurity measures
in place at the SBA and may even eleviate some of the concerns
small business owners and entrepreneurs might have in engaging
with the agency.
With that, I urge my colleagues to support this legislation, and
I yield back.
Chairwoman VELÁZQUEZ. Thank you. The gentlelady yields
back. Are there any other Members who wish to be recognized for
a statement on H.R. 3462?
I would now like to recognize the Ranking Member.
Mr. LEUTKEMEYER. Thank you, Madam Chair. The govern-
ment arguably has the greatest responsibility of any entity in this
country to protect its data and implement robust cybersecurity pro-
tections. The SBA is a part of that. Small business owners depend
on the SBA to keep the personal information that they have dis-
closed safe and secure. This legislation contains the necessary ac-
countability and transparency measures small businesses need
when interacting with the federal government. I support the bipar-
tisan bill and urge my colleagues to do the same.
With that, Madam Chair, I yield back.
Chairwoman VELÁZQUEZ. The gentleman yields back. I would
now like to recognize myself briefly.
For more than 20 years, the SBA’s Office of Inspector General
has listed IT security as one of the most serious management and
performance challenges facing the agency. The demand for the Pay-
check Protection Program and the Economic Injury Disaster Loan
programs inundated SBA’s legacy system, leading to backend sys-
tem crashes, portals operating slowly, and a glitch that led to a
data breach of applicants’ personal information. SBA failed to make
any public announcement about the data breach. It took weeks for
the agency to send paper notifications to affected individuals.
We trust that SBA has taken the necessary steps to recover, but
we want a notification system in place before the next cybersecu-
rity incident. This bill sets new reporting requirements to ensure
congressional and public awareness.
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I want to thank Mr. Crow and Mrs. Young Kim for this vital leg-
islation. I urge a yes vote.
If there is no further discussion, the Committee will move on to
consider H.R. 3462. The clerk will report the bill.
The CLERK. H.R. 3462——
Chairwoman VELÁZQUEZ. Without objection, H.R. 3462 is con-
sidered as read and open for amendment at any point.
Does anyone seek recognition to offer an amendment?
Seeing none, the question is now on H.R. 3462.
All in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it and H.R. 3462 is
agreed to.
The question now occurs on reporting H.R. 3462 favorably to the
House.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it and H.R. 3462 is
reported to the House.
Without objection, Committee staff is authorized to correct punc-
tuation and make other necessary technical corrections and con-
forming changes. Without objection, Members have 2 business days
to file additional supplemental, dissenting, and minority views.
H.R. 4515
We will now consider H.R. 4515, the ‘‘Small Business Develop-
ment Center Cyber Training Act of 2021,’’ introduced by Congress-
man Garbarino and cosponsored by Mr. Evans, Ms. Houlahan, and
Mr. Chabot. This bill helps Small Business Development Centers
become better equipped to assist small entities with their cyberse-
curity needs.
I would now like to recognize the gentleman from New York, Mr.
Garbarino, the sponsor of the bill, for an opening statement.
Mr. GARBARINO. Thank you, Chairwoman. The use of informa-
tion technology in this modern age is inescapable. We rely on it to
do everything from the mundane to the miraculous. This can, how-
ever, be a double-edged sword.
As indispensable as it is to our everyday lives, it also exposes us
to a host of new vulnerabilities. Just a few short weeks ago, a se-
ries of widely reported ransomware attacks caused significant dis-
ruption and damage to thousands of individuals and businesses, in-
cluding small businesses.
Cyber criminals are, unfortunately, targeting small businesses
precisely because of their lack of knowledge and awareness of prop-
er cyber hygiene as a result of weak and nonexistent cybersecurity
measures. The outcome of a cyber attack can be catastrophic for
small business owners, leaving many unable to recover from the
loss of their intellectual property and resources. This is why this
legislation introduced by myself, Congressman Evan, Congress-
woman Houlahan, and former Ranking Member Chabot is so crit-
ical. Congressman Phillips and Congresswoman Tenney are also co-
sponsors and they are on this Committee and I want to thank
them.
H.R. 4515, the ‘‘Small Business Development Center Cyber
Training Act of 2021,’’ utilizes the far reach and resources of the
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SBDCs across the country to assist small businesses with planning
and implementing cybersecurity measures to defend against cyber
attacks. This bipartisan bill establishes a cyber counseling certifi-
cation program for SBDC staff to ensure that they are properly
educated and trained on the latest cyber threat developments, so
that the information may be shared with small businesses seeking
assistance from the SBDCs.
The cyber assistance offered by trained SBDC staff would be pro-
vided at no or low cost to small businesses. By leveraging the ex-
pertise of SBDCs and their partner agencies, small businesses can
take a more proactive and defensive approach to cybersecurity. Un-
derstanding that this will require resources, the legislation author-
izes the SBA to reimburse SBDCs for employee certification costs
up to $350,000 per fiscal year.
The bill also utilizes existing federal resources to cover the reim-
bursement costs. Small businesses are in dire need of assistance to
combat rapidly evolving cyber threats and this commonsense, bi-
partisan legislation will help them get there.
I urge my colleagues to support this measure, and I yield back.
Chairwoman VELÁZQUEZ. Thank you. The gentleman yields
back. I would now like to recognize the gentleman from Pennsyl-
vania, Mr. Evans.
Mr. EVANS. Thank you, Madam Chair and Ranking Member.
And thank you, Madam Chair, for your leadership of this Com-
mittee. Thank you for what you have done and I thank my co-lead-
ers in terms of this particular issue.
As you know, I consider small businesses to be the foundation of
our community. They are the engines that drive innovation, inven-
tiveness, investments, and economic development. They are the pil-
lars that prop up our community.
Yet, as technology makes things easier, it is also open to
vulnerabilities. The same tools that are making our lives better are
also making our personal information easier to access for both good
and bad actors. The FBI 2020 Cyber Crime Report showed that at-
tacks on business email accounts cost $1 trillion and this doesn’t
represent the future picture. As many businesses do not report
these cyber attacks, around 60 percent of firms go out of business
within 6 months after a data breach.
However, good cybersecurity does not come cheap. It can cost
tens of thousands of dollars to establish a good defense against
cyber attacks. Because of the evolving world of cyber threats, cyber-
security is an ongoing cost. As a result, it is critical we help our
small businesses that are the backbone of our nation’s economy and
ensure that they are given the training they need to defend them-
selves from cyber attacks.
I thank you, Madam Chair and Ranking Member, for your lead-
ership on this, and I yield back. Back to you.
Chairwoman VELÁZQUEZ. The gentleman yields back. Now I
recognize the gentlelady from Pennsylvania, Ms. Houlahan, cospon-
sor of the bill.
Ms. HOULAHAN. Thank you, Madam Chair. I want to make the
following really clear to everyone on this Committee and the Amer-
ican people if it hasn’t been already clear, if we aren’t protecting
our small businesses, then we are not protecting our economy. The
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rise in cyber attacks against our economic infrastructure should be
the cause for very serious alarm. We need to be doing everything
our power to not only shore up our defenses, but also to equip our
small businesses and business owners with the tools that they need
to be able to defend their businesses.
I am really proud to partner with Representative Chabot, Evans,
and Garbarino on this effort to support the passage of the Small
Business Development Center, or SBDC, Cyber Training Act of
2021. We have to ensure that SBDCs are equipped to help our na-
tion’s small businesses and that they have the resources and the
guidance that they need to respond to cyber threats. I urge my col-
leagues to join me in full support of this bill.
Thank you and I yield back, Madam Chair.
Chairwoman VELÁZQUEZ. The gentlewoman yields back. Are
there any other Members who wish to be recognized for a state-
ment on this bill? I recognize the Ranking Member.
Mr. LEUTKEMEYER. Thank you, Madam Chair. It is abun-
dantly clear that no business, regardless of size or the amount of
available resources, is 100 percent safe from cyber threats. If large
businesses can become victims of cybercrimes, small businesses are
even more vulnerable.
This bipartisan legislation will make it possible for small busi-
nesses to receive guidance and counseling from the SBDCs on the
most up-to-date cybersecurity practices at virtually no cost. This is
exactly what small businesses need. I urge my colleagues’ support.
Madam Chair, with that, I yield back.
Chairwoman VELÁZQUEZ. The gentleman yields back. I would
like to make a statement myself.
Small businesses are especially vulnerable to cyber attacks due
to limited resources and technical knowledge. SBDCs are ready,
willing, and able to fill this gap. H.R. 4515 will establish a cyber
counseling certification program in SBDCs to provide specific, free-
of-charge cyber training for small businesses.
Congress and the SBA must meet the demand for cybersecurity
training and resources. Thank you to my colleagues for reintro-
ducing this bill. I urge a yes vote.
If there is no further discussion, the Committee will move on to
consideration of H.R. 4515. The clerk will report the bill.
The CLERK. H.R. 4515, the Small Business Development——
Chairwoman VELÁZQUEZ. Without objection, H.R. 4515 is con-
sidered as read and open for amendment at any point.
Does anyone seek recognition to offer an amendment?
Seeing none, the question is now on H.R. 4515.
All in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it and H.R. 4515 is
agreed to.
The question now occurs on reporting H.R. 4515 favorably to the
House.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it and H.R. 4515 is
reported to the House.
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Without objection, Committee staff is authorized to correct punc-
tuation and make other necessary technical corrections and con-
forming changes. Without objection, Members have 2 business days
to file additional supplemental, dissenting, and minority views.
H.R. 4513
We will now take up the bill on the final bill on the agenda, H.R.
4513, the ‘‘Small Business Advanced Cybersecurity Enhancements
Act of 2021,’’ introduced by Congressman Donalds and myself, Con-
gresswoman Houlahan, and Congressman Chabot. This bill will
provide additional resources and protection for small employers
and encourage good faith collaboration with the federal govern-
ment.
I would now like to recognize the gentleman from Florida, Mr.
Donalds, the sponsor of the bill, for an opening statement.
Mr. DONALDS. Thank you, Madam Chair, and thank you as
well, Ranking Member. I would also like to thank you, Madam
Chair, for holding last Tuesday’s Committee hearing on the cyber-
security posture of America’s small businesses. The testimony we
heard from the witnesses made it abundantly clear that having a
consistent, rapid flow of information between the private and pub-
lic sectors is critical in the fight against cybercrime. Because small
businesses are targeted by cybercriminals nearly half of the time,
these businesses collectively have a wealth of critical information
that could be utilized to identify, prevent, and mitigate future at-
tacks.
Unfortunately, as we learned in the hearing, small businesses
are often reluctant to disclose to anyone, especially the govern-
ment, any information about cyber attacks that may have been sus-
tained. This ultimately leaves our national cybersecurity posture in
a weakened state and vulnerable to attack.
The federal government has recognized this dilemma and has
taken steps to both prevent and mitigate cyber attacks on small
businesses. However, small business reluctance and unwillingness
to engage still exists.
We must give small businesses the confidence that they need to
engage with the federal agencies tasked with protecting them,
which is why the Chairwoman and I, along with Congresswoman
Houlahan and former Ranking Member Chabot introduced H.R.
4513, the ‘‘Small Business Advanced Cybersecurity Enhancements
Act of 2021.’’ This bipartisan legislation safeguards small busi-
nesses from cyber attacks by establishing the Small Business De-
velopment Centers as a primary liaison for information sharing for
small businesses seeking to report cyber threats.
This bill authorizes the free flow of information from the SBDCs
to cybersecurity experts at the Department of Homeland Security
and, importantly, expands the Cybersecurity Information Sharing
Act, or CISA, protections for small businesses. By expanding liabil-
ity protections and giving small businesses a readily accessible and
local resource to tap into when dealing with cyber threats, the bill
removes many of the barriers small business owners are facing
when confronted with a cyber attack.
I urge my colleagues to support this bill, and I yield back.
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Chairwoman VELÁZQUEZ. The gentleman yields back. Are
there any other Members who wish to be recognized for a state-
ment on this bill? I would like to recognize the Ranking Member.
Mr. LEUTKEMEYER. Thank you, Madam Chair. Cybercrime is
a booming industry and cybercriminals are strongly incentivized to
come up with new methods of attack. We know when small busi-
nesses are attacked they may be reluctant to disclose such informa-
tion to the government agencies tasked with helping them. The
more we know, the better prepared we can be, both defensively and
offensively, against future cyber attacks. H.R. 4513 encourages
small businesses to work with the federal government instead of
fearing it.
I urge my colleagues to support the bill before us. With that,
Madam Chair, I yield back.
Chairwoman VELÁZQUEZ. The gentleman yields back. Thank
you. I would now like to recognize myself.
Protecting our nation from malicious cyber actors is a top priority
of this Committee. It is vital that the federal government work
closely with the private sector, not just the large corporations and
contractors, but also the small firms that drive our supply chains.
Everyone has a role to play.
Last week, experts detailed the cybersecurity landscape for small
firms and the tangled web of public and private support mecha-
nisms. This bill facilitates regular collaboration between small
businesses and the federal government, and ultimately fortifies our
nation’s cyber defenses.
Thank you, Mr. Donalds, for reintroducing this bill. I am pleased
to be an original cosponsor. I urge my colleagues to vote yes.
If there is no further discussion, the Committee will move on to
consideration of 4513. The clerk will report the bill.
The CLERK. H.R. 4513——
Chairwoman VELÁZQUEZ. Without objection, H.R. 4513 is con-
sidered as read and open for amendment at any point.
Does anyone seek recognition to offer an amendment?
Seeing none, the question is now on H.R. 4513.
All in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it and H.R. 4513 is
agreed to.
The question now occurs on reporting H.R. 4513 favorably to the
House.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it and H.R. 4513 is
reported to the House.
Without objection, Committee staff is authorized to correct punc-
tuation and make other necessary technical corrections and con-
forming changes. Without objection, Members have 2 business days
to file additional supplemental, dissenting, and minority views.
I want to thank all of the Members for their participation today.
If there is no further business to come before the Committee, with-
out objection, this meeting is adjourned.
[Whereupon, at 11:02 a.m., the committee was adjourned.]
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APPENDIX
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Æ
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File and source
- File
- chrg_chrg-117hhrg45660_chrg-117hhrg45660.pdf
- Size
- 2,071,415 bytes
- SHA-256
- 849e808b4b84e588e8d55e8f7e33e512b2337cbcffe74976fb51ca5e67a8c10b
- Original
- www.govinfo.gov