Member Day — Hearing Before the Committee on Small Business, One Hundred Eighteenth Congress (November 30, 2023)
Summary
Printed hearing record titled Member Day before the House Committee on Small Business, Document Number 118-032, dated November 30, 2023. Chairman Roger Williams opens by thanking Members who do not sit on the committee for sharing what they hear from small businesses in their districts. Opening statements are listed from Ranking Member Nydia Velazquez and Representatives Jill Tokuda, Ed Case, Jen Kiggans and Blake Moore. The hearing closed at 10:31 a.m., and prepared statements are in the appendix.
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“Member Day — Hearing Before the Committee on Small Business, One Hundred Eighteenth Congress (November 30, 2023).”
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[House Hearing, 118 Congress]
[From the U.S. Government Publishing Office]
MEMBER DAY
HEARING
BEFORE THE
COMMITTEE ON SMALL BUSINESS
UNITED STATES
HOUSE OF REPRESENTATIVES
ONE HUNDRED EIGHTEENTH CONGRESS
FIRST SESSION
__________
HEARING HELD
NOVEMBER 30, 2023
__________
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Small Business Committee Document Number 118-032
Available via the GPO Website: www.govinfo.gov
________
U.S. GOVERNMENT PUBLISHING OFFICE
54-162 WASHINGTON : 2024
-----------------------------------------------------------------------------------
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
JAKE ELLZEY, Texas
MARC MOLINARO, New York
MARK ALFORD, Missouri
ELI CRANE, Arizona
AARON BEAN, Florida
WESLEY HUNT, Texas
NICK LALOTA, New York
NYDIA VELAZQUEZ, 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
C O N T E N T S
OPENING STATEMENTS
Page
Hon. Roger Williams.............................................. 1
Hon. Nydia Velazquez............................................. 2
Hon. Jill Tokuda, a Representative in Congress from the State of
Hawaii......................................................... 3
Hon. Ed Case, a Representative in Congress from the State of
Hawaii......................................................... 5
Hon. Jen Kiggans, a Representative in Congress from the State of
Virginia....................................................... 7
Hon. Blake Moore, a Representative in Congress from the State of
Utah........................................................... 9
APPENDIX
Prepared Statements:
Hon. Jill Tokuda, a Representative in Congress from the State
of Hawaii.................................................. 11
Hon. Ed Case, a Representative in Congress from the State of
Hawaii..................................................... 14
Hon. Jen Kiggans, a Representative in Congress from the State
of Virginia................................................ 16
Hon. Blake Moore, a Representative in Congress from the State
of Utah.................................................... 18
Questions for the Record:
None.
Answers for the Record:
None.
Additional Material for the Record:
Hon. Mark Alford Statement for Member Day on the VA's T4NG2
Contract................................................... 20
MEMBER DAY
----------
THURSDAY, NOVEMBER 30, 2023
House of Representatives,
Committee on Small Business,
Washington, DC.
The Committee met, pursuant to call, at 10:02 a.m., in Room
2360, Rayburn House Office Building, Hon. Roger Williams
[chairman of the Committee] presiding.
Present: Representatives Williams, Velazquez, Landsman, and
Davids.
Chairman WILLIAMS. Okay, before we get started I recognize
myself to lead us in the Pledge and the prayer. Please stand.
I pledge allegiance to the flag of the United States of
America. And to the Republic for which it stands, one nation
under God, indivisible, with liberty and justice for all.
Bow your head, please.
Heavenly Father, God of all people, thank you for allowing
us to be here today to do things together as a team to make our
country better and be open-minded about it. In Your name we
pray. Amen.
Good morning. I now call the Committee on Small Business 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.
Welcome to today's House Committee on Small Business Member
Day Hearing. I want to thank each of you who may not sit on
this Committee for taking the time to come and share with us
what you are hearing from small businesses in your districts. I
think this is an excellent way for those of us on the Committee
to broaden our understanding and hear about what is going on in
different parts of the country. It is also beneficial to hear
how different Members interact with small businesses in their
districts.
As I am sure we all have seen, America's entrepreneurs have
had to confront historic challenges over the past few years--
the COVID-19, out of control inflation, broken supply chains,
high interest rates, and a national labor shortage. But as
small business have done countless times before, they endure.
Here on the Committee on Small Business we are working to
create an environment where businesses can thrive and survive,
and we all know that small business owners dedicate their lives
and finances to the products and services they bring to the
marketplace. Every extra hour of paperwork is one less hour
they can tend to their personal livelihoods; every inflated tax
is an extra dollar that could have gone somewhere else; and
every job vacancy is one more a small business owner must cover
themselves.
As we listen to the firsthand accounts, we salute the small
businesses who continue to fight and give selflessly back to
their communities, and we are eager to enact policies and
solutions that will help pave a path toward success for both
now in the future.
That is why we are looking forward to our conversation
today. There is always something we can learn and increasing
the dialogue about small businesses between Members and it can
only strengthen and broaden our collective experience in how to
better serve our nation's biggest job creators.
I want to thank you all for being here with us today. I
look forward to today's conversation.
With that, I yield to our distinguished Ranking Member from
the great state of New York, Ms. Velazquez.
Ms. VELAZQUEZ. Thank you, Mr. Chairman.
Today is a chance for the Committee to hear directly from
our fellow Members of Congress about their priorities for
supporting programs and policies that promote small business
creation and growth.
Small businesses have experienced unprecedented challenges
over the past few years. In 2020, the pandemic closed more
small businesses than any other year on record. As the COVID
crisis began to ease, many small businesses were then
confronted with supply chain problems, staffing shortages, and
rising costs.
Despite all of these challenges, small employers have been
the driving force behind our economic recovery from the
pandemic. This is in part due to the bipartisan efforts of this
Committee over the years which helped provide over $1 trillion
in relief to small firms during a time of need.
Today we continue to see the fruits of that historic
investment. Since President Biden took office, Americans have
filed a record 14.6 million applications to start businesses
and recorded record job creation rates.
At the same time, unemployment remains near historic lows,
and more than 14 million jobs have been created since the start
of 2021.
As Members of Congress, it is our responsibility to help
build on the progress small businesses have made and supply
them with the resources they need to thrive. To do this we must
have a keen understanding of the top challenges facing
entrepreneurs back home in our district. I know that when we
travel back to our districts, we are eager to hear from our
local small business owners to understand what policies are
working for them and what we can improve on.
For the Members testifying here today, I know that you have
been gathering feedback from main street businesses in your
district. I look forward to your insights, and I appreciate you
taking the time to be a voice for small business constituents
today. This Committee's mission is to open the lucrative
federal marketplace to entrepreneurs, strengthen capital
markets for all small employers, and give small firms the tools
they need to take care of their employees and build their
companies.
We do so while working together. Our Committee has a long
history of bipartisanship because we all agree that small
businesses truly are the backbone of our economy. They unify us
in our work and hold our communities together. Today we have
the chance to engage in an open dialogue on how we can
collaborate to support small firms.
Thank you again to all the Members for being here today. I
look forward to our discussion.
Thank you. I yield back.
Chairman WILLIAMS. So before we continue I would like to
take a moment to explain the rules of civil proceeding. That is
like talking to the choir. I get it. But I do want to emphasize
one thing about this Committee. We are a bipartisan Committee.
We get a lot of things done together and so forth and we are
proud of that.
So each Member will be given 5 minutes to deliver their
testimony and after they finish speaking we will briefly pause
as we change the panel to accommodate the next Member.
With that I would like to introduce our first Member, the
Honorable Jill Tokuda from the great state of Hawaii.
Representative Tokuda--am I saying that correctly?
Ms. TOKUDA. Tokuda.
Chairman WILLIAMS. Tokuda. I am from Texas remember. Okay.
All right.
The representative who represents Hawaii's Second
Congressional District, which includes suburban Oahu and the
remainder of the Hawaiian Islands, elected November of 2022 to
serve in the 118th Congress. The representatives serves on the
House Committee on Agriculture, the Committee on Armed
Services, and the select Subcommittee on the Corona virus
pandemic. So representative, it is nice to have you here. Thank
you for taking the time to come see us and I recognize you for
5 minutes.
STATEMENT OF HON. JILL TOKUDA, A REPRESENTATIVE IN CONGRESS
FROM THE STATE OF HAWAII
Ms. TOKUDA. Thank you, Chairman Williams, Ranking Member
Velazquez, and distinguished Members of the House Small
Business Committee. Mahalo for the opportunity to testify
before you today.
Small businesses are the backbone of our economy in Hawaii.
From tour operators to local foods that I know most of you have
enjoyed, jewelry and clothing, product manufacturing and
service providers, small businesses in Hawaii support their
local communities through jobs and investments and have made
Hawaii a leading destination for both business and tourism.
I want to thank this Committee for its decisive action
during the COVID-19 pandemic. Your work helped to save
countless Hawaii small businesses from going under. You saved
jobs.
I am testifying before you today to ask for your help once
again to respond to a historic crisis on Maui that is impacting
our entire state.
I am honored to represent Hawaii's Second Congressional
District which spans all eight of our major Hawaiian islands,
including the island of Maui which suffered considerable
devastation and death from the August 8 fires, the deadliest
wildfires in U.S. history in over a century. In just a single
day, the Maui wildfires cause significant physical damage and
emotional trauma that will be felt in Lahaina on Maui and
throughout our entire state for generations to come.
Lahaina was home to as many as 1,000 businesses, many of
them small mom and pop, family owned and operated, many of them
microbusinesses with nine employees or less. By some estimates,
the catastrophic damage inflicted upon our Maui communities as
a result of the fires has caused up to $6 billion in economic
losses. According to state agencies, 40 percent of Maui's
economy depended on tourism and visitor spending on Maui made
up about 1/3 of total visitor spending in our state.
Because of the fires, visitor numbers on Maui are at
historic lows. From the latest monthly data, just over 94,000
visitors coming to Maui in September of 2023. That volume
represents a more than 57 percent drop from September of 2022.
In addition to the physical damage from the fires, small
businesses throughout Hawaii, especially Maui, are facing an
economic crisis. In response, the Hawaii Small Business
Administration and Small Business Development Centers have
acted swiftly to provide resources and support to businesses in
need, and I want to commend them for their responsiveness and
their unwavering commitment to getting our business back on
track.
As of the end of October, the small business administration
has served over 7,900 individuals and approved 1,219 disaster
assistance loans for almost $200 million; 398 business loans
totaling $59 million; and 821 loans for homeowners and renters
totaling $140.9 million. While this assistance has been
critical in helping residents rebuild and recover from the
fires, too many businesses in my district are still,
unfortunately, getting left behind from existing federal
programs.
Just as you recognize in the midst of the pandemic,
supplemental programs are needed to meet the needs that arise
from unprecedented disaster. I have heard from countless small
business owners still recovering from the economic impact of
the pandemic who cannot qualify for SBA assistance because of
program capital requirements or could not take on more loans
because they had existing debt from pandemic error programs.
Over 4,700 EIDL loans totaling roughly $569 million were made
to my county during the pandemic.
Understanding the compounding financial impact COVID and
the fire have had on our small business, I introduced the
Microenterprise Assistance and Urgent Investment for Supporting
Trade, Recovery Operations, and Neighborhood Growth, or the
MAUI STRONG Act. This bill would help businesses reestablish
themselves and provide an economic bridge to recovery by
providing grants of up to $20,000 to nonprofits, small
businesses with fewer than 25 employees, and independent
contractors that expense revenue lost because of the fires.
These funds would help cover a variety of expenses that come
with rebuilding and restarting a business.
In addition to the need for direct relief, changes to
federal contracting laws would go a long way in supporting
local businesses recovering from disaster. FEMA and the U.S.
Army Corps of Engineers are to be commended for their swift
action hiring local 8(a) Native Hawaiian Organizations to
perform debris removal, construct a temporary school, and
provide cultural oversight of operations in the burn zone and
Lahaina. Native Hawaiian small businesses have repeatedly
demonstrated their ability to do critical work across federal
government and we should take the example of the fires to
ensure Native Hawaiian businesses can receive 8(a) direct
awards above the competitive threshold from all federal
agencies, not just through the Department of Defense.
My bill, H.R. 3830 would do just that, so that Native
Hawaiian organizations have parity with Native America and
Alaska Native owned businesses.
Chairman Williams, Ranking Member Velazquez, our Small
Business Committee Members, small businesses and entrepreneurs
in Hawaii are emblematic of the hard working spirit that makes
our nation so great. At this time of unprecedented disaster in
my home state of Hawaii, Congress must do everything possible
to support those who are struggling.
I truly appreciate this opportunity to testify before you
today and look forward to working with you to support our State
of Hawaii. Mahalo.
Chairman WILLIAMS. Well, thank you very much. And I would
just like to say I have been to every state in the union but
Hawaii. But just from your testimony we have a thing called the
Texas spirit that we talk about all the time. And it sounds
like you have got the Hawaii spirit.
Thank you for being here.
Now we will introduce our next Member, The Honorable Ed
Case. Ed, thank you for being here from the great state of
Hawaii. Is everybody from Hawaii here? Representative Case
represents Hawaii's First Congressional District, which covers
the urban portion of Oahu. Congressman Case previously
represented Hawaii's Second Congressional District from 2002 to
2007 after serving as a state representative from 1994 to 2002.
His positions in the legislature included majority leader.
Since returning to Congress in 2019, Representative Case has
served on the House Committee on Appropriations where he is
currently a Member of the Subcommittee on Defense and the
Subcommittee on Homeland Security.
Congressman Case, it is nice to have you here. Thank you
for being here and I recognize you for 5 minutes.
STATEMENT OF HON. ED CASE, A REPRESENTATIVE IN CONGRESS FROM
THE STATE OF HAWAII
Mr. CASE. Thank you so much Mr. Chair and Ranking Member.
It is great to be back. You missed the most important part
which is I was a former Member of this Committee during my--
yes, I did. So I have very good memories and have taken many,
many lessons from my service on this Committee.
I appreciate the opportunity to talk with you today. Like
my colleague, Ms. Tokuda--and by the way, I endorse everything
that she just said to you--I am on the bills that she referred
to you. I am here to talk to you about Maui today and the
specific devastating August 2023 Maui wildfires which had so
much impact throughout our community but were particularly
impactful on our small businesses.
They were, as she has testified, one of the worst natural
disasters in our country's history with significant death and
displacement, burned areas throughout Lahaina in particular but
not only Lahaina. And a particularly deep impact on our small
businesses.
Small businesses on Maui and businesses throughout Hawaii
linked to Maui, have experienced what anybody would call a
severe economic disruption following the fires. The State of
Hawaii revised its statewide economic growth projections for
2023 and 2024 downward from 1.8 percent to 1.1 percent for 2023
and 2.0 to 1.5 percent in 2024.
Far worst impacts on Maui, clearly just measured by initial
unemployment claims as an example, which jumped from an average
of 130 cases per week before the wildfire, 865 cases in the
first week after to almost 5,000 in the second week after the
fire. Unemployment went up to about 8.6-8.8 percent.
This economic consequence of the fires is hitting our
Hawaii small businesses hard. Still, they comprise the vast
majority of our workforce and are the backbone of our economy.
Hawaii is a state where small businesses is truly king. We have
some 130,000 small businesses, and the average small business
employs just 12 people. So it is a small, small business state.
They already were recovering from COVID-19 but they find
themselves particularly grappling with the aftermath of these
recent wildfires.
The SBA, as Ms. Tokuda has referred to, has responded
admirably. They have approved almost 2,000 disaster loans, $243
million of loans, and while this is commendable progress, it is
very, very clear that much more needs to be done. And the
existing programs are falling short. This is really something
that we saw during COVID because when we went into COVID we
discovered that the programs of the small business were not
exactly adapted to the crisis that we were being faced with and
we needed to modify those and we did. And I think that was
successful.
And so take that same theory and apply it to the Maui
wildfires, which present their own microcosm of small business
consequence and the need to actually adjust both our laws and
our programs from the small business perspective to specify
particular needs that are on Maui.
I am going to, myself, soon be introducing what we refer to
as the Heal Maui Act, which is a comprehensive legislative
proposal designed to provide swift and meaningful and direct
support to our small business and their specific conditions on
Maui during these times.
There are several key provisions that directly address
these issues. First of all, they seek to augment the existing
SBA Economic Injury Disaster EIDL Loan program.
Second, they would establish a new loan program under the
7(a) initiative to directly address the immediate financial
challenges many businesses face in the aftermath of the
wildfires.
And finally, for those that have already taken out SBA
disaster loans post-wildfire, my Heal Maui Act would offer a
beacon of hope through loan cancellations where appropriate,
recognizing the need to alleviate the weight of debt during
these time when the businesses may not be able to open at all
for a number of years. And therefore, we need to find some way
to allow them to survive through a very difficult time of
recovery.
Again, this is not anything particularly new but what it
does do is to take the lessons of our COVID-19 related
refinements of the small business programs and continue them
forward in another disaster which is every bit the same
disaster as COVID-19 but with its own specific conditions that
we need to adjust to.
So I commend to you not only the legislation that Ms.
Tokuda referred to, and not only the need to assist our small
businesses in Maui but in particular as well the Heal Maui Act
which I will soon introduce. And I ask for your favorable
consideration when that ends up with the Committee.
I appreciate your time. I appreciate your focus. I
appreciate your effort. And Mahalo.
Chairman WILLIAMS. What did you just say?
Mr. CASE. Mahalo.
Chairman WILLIAMS. Thank you.
Mr. CASE. That is Texan for thank you.
Chairman WILLIAMS. That is what I thought. That is what I
thought I heard. But anyway, thank you for being here, too. And
you have got a unique situation. I listened to your testimony.
Adjustments, flexible, like we do in business anyway are needed
and I think, you know, when you think about it, what your small
business owners are going through, it is a real test of
capitalism and entrepreneurship to begin to take something and
start it all over again. And so we need to do what we can to
make sure that happens. Thanks for being here.
Mr. CASE. Thank you very much.
Chairman WILLIAMS. Sure.
I will now introduce our next Member, The Honorable Jen
Kiggans, from the great state of Virginia. Representative
Kiggans serves Virginia's Second Congressional District, which
includes Virginia Beach, the Eastern Shore, and parts of
Chesapeake and South Hampton. Representative Kiggans served
three sessions in the Virginia State Senate before her election
to the House, and prior to elected office, the Congresswoman
served as a helicopter pilot in the U.S. Navy and worked as a
geriatric nurse practitioner. Thank you for all of that. In the
U.S. House, she sits on the Armed Services, Natural Resources,
and Veterans Affairs Committee. So Congresswoman, thank you for
being here, and you are recognized for 5 minutes.
STATEMENT OF HON. JEN KIGGANS, A REPRESENTATIVE IN CONGRESS
FROM THE STATE OF VIRGINIA
Ms. KIGGANS. Thank you, Mr. Chair. Thank you for the
Committee and for the warm welcome. I appreciate that.
I have the honor of representing Virginia's Second
Congressional District, which is home to one of the largest
veteran populations in the country. So I appreciate the
opportunity to be here today to discuss my Investing in Vets
Act.
Small businesses, as we know, are the cornerstone of the
American economy. In fact, our country's entrepreneurs employ
nearly half of all private sector workers and account for most
new jobs created since 1995. Veterans who serve our country and
are injured in the line of duty face tightened challenges
during the already difficult transition from active duty
service to civilian life.
According to the Bureau of Labor Statistics, 27 percent of
veterans have a service-connected disability. Following their
service, many veterans use the invaluable professional and life
skills they learned in the military to have successful careers
across a wide array of industries.
Starting, owning, and operating a small business, much like
serving our country, requires hard work, determination, and
sacrifice, which is why it is no surprise than many veterans
have successes in these ventures. In fact, some of the most
dynamic and successful businesses in my district are veteran
owned.
I am also very proud that as of 2017, our Commonwealth
boasts nearly 13,000 veteran-owned small businesses. As you
know, small businesses face many barriers to success, including
competing for government contracts.
My Investing in Vets Act weeks to fix this by increasing
the federal contracting goal for service-disabled, veteran-
owned small businesses from 3 to 5 percent. My bill will help
make small businesses more competitive when trying to secure
federal contracting opportunities. Additionally, this bill
would require these businesses to be certified by the Small
Business Administration rather than the existing self-
certification process. This important step will reduce fraud
and ensure that the benefits of this program are going to those
it intends to help.
This legislation will provide an important economic boost
for our veteran-owned small business at a time when rising
prices have wreaked havoc on our nation's entrepreneurs.
Once again, thank you to Chairman Williams, Ranking Member
Velazquez, and all the Members of the Small Business Committee
for giving me the opportunity to testify on my bill today.
Thank you, and I yield back.
Chairman WILLIAMS. Thank you very much. And self-
certification is always something that is to be questioned in
many cases; right?
Well, thank you for being here, and thank you for your
history now and what you have done in the past for our country.
Thank you.
All right, last but not least I would like to introduce the
last Member appearing before us today, The Honorable Blake
Moore from the great state of Utah. Representative Moore
represents Utah's First District consisting of communities
spread across northern Utah. Before being elected to Congress,
Representative Moore was a small business owner himself in the
healthcare and financial services industries. He has also had
the honor of representing the United States abroad as a foreign
services officer. After his election in 2021, he was honored to
be selected as the first-ever Utah Republican on the Ways and
Means Committee. Representative Moore was also elected to serve
as Vice Chair of the House of Republican Conference earlier
this month, and he is one of the great centerfielders of all-
time in the congressional baseball games.
Mr. MOORE. That is what we were waiting for.
Chairman WILLIAMS. So Congressman Moore, it is good to see
you, and you are recognized for 5 minutes.
STATEMENT OF HON. BLAKE MOORE, A REPRESENTATIVE IN CONGRESS
FROM THE STATE OF UTAH
Mr. MOORE. Thank you, Chairman. Thank you AKA Skipper.
Ranking Member, also. My apologies in advance for all of the
baseball references that you probably have to endure on this
Committee. To all the Members of the Committee, thank you for
allowing me the opportunity to testify you on the critical
issues of this Committee's jurisdiction.
My remarks are going to be grounded in two major concerns
that I have for the future of our nation and that is
maintaining and growing a strong middle class and the burden
that we are going to have with respect to retirement on our
younger generation.
And so in that vein this is what this particular piece of
legislation ultimately tries to accomplish. Now, it is
important always for me to be thinking about the big picture
and any type of legislation that we put forward needs to be
concerned with, you know, what are some of our biggest
challenges going forward. And again, a strong middle class with
respect to alleviating the retirement burden that will exist on
our next generation.
With respect to small businesses, the State of Utah is the
proud home of over 330,000 small businesses that employ more
than 600,000 Utahans across a variety of industries and this
work that this Committee does is vital.
I want to speak briefly about a bipartisan and bicameral
legislation that I am proud to co-lead. It is H.R. 3383, the
Employee Equity Investment Act of 2023. I was joined by
Representatives Dean Phillips, Dusty Johnson, and Krissy
Houlahan in introducing this vital legislation that will
support small business owners who aim to pursue employee-owned
arrangements.
The Senate companion was introduced by Senators Marco Rubio
and Chris Van Hollen. And according to the most recent
Department of Labor data there were nearly 6,500 companies with
employee stock ownership plans (ESOPs) in the United States as
of 2021, including 59 ESOPs with approximately 22,000 workers
in my home state of Utah. So Utah-based ESOPs distributed more
than $200 million to employee owners in 2021, bringing greater
financial security to these Utah families. Again, strong middle
class, allowing for individuals as they pursue their career to
have equity ownership is, in my opinion, one of the best ways
to continue to grow our middle class along with good pro-growth
tax policy that I focus on on Ways and Means.
Going forward, expanding these arrangements would be a good
thing for workers and businesses alike. The Employee Equity
Investment Act would do just that by leveraging the Small
Business Administration's small business investment company to
provide loan guarantees for investment funds committee to
expanding employee ownership such as through ESOPs or worker
cooperatives. These investment funds would provide financing
for owners selling a company to their employee. While also
helping maintain current employee-owned companies, it would
achieve this on a no subsidy basis on behalf of the taxpayer.
Access to the capital necessary for ESOP conversion has
been a major barrier to establishing more employee-owned
companies. This legislation will provide a meaningful
opportunity to expand employee-owned structures, and as I have
noted, this will benefit local economies.
Research shows that ESOPs outperform competitors, create
higher quality jobs that retain employees at a higher rate,
provide greater job security for workers during economic
downturns, and improve the retirement security of employee
owners. As almost 50 percent of private businesses in the
United States are owned by individuals approaching retirement
age--again, 50 percent of private businesses in the United
States are owned by individuals nearly going to retire,
bolstering employee ownership could help prevent businesses
from shuttering and keep economic activity in our local
communities. In Utah, this so-called ``silver tsunami'' could
affect 25,300 firms representing 280,000 employees and over $50
billion in revenue.
Lastly, we are proud that the Employee Equity Investment
Act has the support of over 20 industries and community
stakeholders.
I look forward to working with the Members of this
Committee to advance this important policy. And again, thank
you both again for hosting this today and allowing for me to
speak on this critical issue again that will strengthen the
middle class and provide security for retirement for younger
generations.
Chairman WILLIAMS. Thank you, Congressman, for being here.
I think you are right on. Being a business person myself it is
always, as businesses get older, who do I pass it on to? And in
most cases your employees, they are the best ones you have got
in the business. They are your employees. They understand it.
So thank you for that vision. I appreciate it very much.
Are there any other Members who would like to be recognized
by the Committee?
Seeing no other comments, I would like to conclude by
thanking all of you, the witness today, for taking time out of
your busy schedule to be here on behalf of small business. Our
Committee will keep your ideas at the top of our mind as we
continue to address the issues that our nation's small
businesses are facing.
Members will have 5 legislative days to submit statements
and supporting materials for the record.
Without objection, so ordered.
And I do want to, before we leave, say Happy Birthday to
Ben Johnson. If you will all bear with me I am going to sing
him Happy Birthday.
This is your birthday song. It does not last too long. Hey!
Happy Birthday.
Finally, again, I would like to thank the Ranking Member
and her team for making this Committee one of the best there
is.
And if there is no further business, this Committee is
adjourned.
[Whereupon, at 10:31 a.m., the committee was adjourned.]
A P P E N D I X
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