Statement of the Hon. Nydia Velazquez on A Year in Review: The State of Small Business in America

Summary

Statement of the Hon. Nydia Velazquez dated December 12, 2023 on the hearing titled A Year in Review: The State of Small Business in America. The statement says small businesses faced cascading crises, including the initial COVID shock, rising costs, supply chain disruptions and labor shortages. It cites four and a half million business applications so far this year, 22 straight months of unemployment under 4 percent, and quarterly growth first at 4.9 percent and revised to 5.2 percent. It names the American Rescue Plan, the Bipartisan Infrastructure Law, the CHIPS and Science Act and the Inflation Reduction Act.

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Statement of the Hon. Nydia Velazquez on A Year in Review: The State of Small Business in America

December 12, 2023

Thank you, Mr. Chairman, and thank you to all our witnesses for travelling across the country to be with us today.

It is important that on occasion we hold hearings like this to take stock and understand the landscape for small businesses and the impact of our policymaking.

Over the last several years, small businesses have faced a series of cascading crises. From the initial COVID shock that closed more small businesses than any other time in history, to the following years of rising costs, supply chain disruptions, and labor shortages, we understand that running a business has been no easy task.

However, despite this array of challenges, our country’s small businesses are more resilient than ever, and they are helping to build a strong economy from the bottom up and the middle out.

And while there is no argument that many small businesses are still struggling, we must also acknowledge the clear, positive economic indicators we saw in 2023.

First, we can all be proud of the ongoing small business boom. So far this year, entrepreneurs applied to start another four and a half million businesses, accelerating even more from the record-breaking years of 2021 and 2022.

Second, we’ve seen a significant drop in inflation without a dramatic increase in unemployment – something that was unthinkable prior to this year, and a step in the right direction toward a soft landing.

As a matter of fact, we have had 22 straight months of unemployment under 4 percent, the longest stretch in 50 years. And while prices remain elevated, consumers and small businesses are getting relief in key areas, like gas prices.

Hopefully, price stabilization will give business owners the confidence to make long-term investments and give the Fed the wherewithal to lower interest rates next year.

Finally, we cannot ignore last quarter’s blockbuster growth, initially at 4.9 percent, and recently revised upward to 5.2 percent.

The strength of our economy in the face of these challenges has been propelled by many of the investments made last Congress, through legislation like the American Rescue Plan, the Bipartisan Infrastructure Law, the CHIPS and Science Act, and the Inflation Reduction Act.

Despite this year being messy and chaotic on Capitol Hill, my hope is that these investments will give small firms the fuel they need to grow to their full potential.

I’d like to once again thank our witnesses for joining us today and I yield back.

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