Report on the Activity of the Committee on Small Business, 118th Congress — House Report 118–953
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Summary
House Report 118–953, the Report on the Activities of the Committee on Small Business for the 118th Congress, dated December 26, 2024 and committed to the Committee of the Whole House on the State of the Union as Union Calendar No. 802. A letter of transmittal from Chairman Roger Williams submits the report to Acting Clerk Kevin F. McCumber under clause 1(d) of rule XI of the Rules of the House. The report sets out the Committee's jurisdiction and its rules, including meeting, hearing notice and witness questioning procedures. Its contents also list membership, the authorization and oversight plan, legislative activities, hearings, and a section on waste, fraud, abuse and mismanagement. The oversight summary closes with a subpart on programmatic duplication describing a November 14, 2023 hearing on the SBA's Office of Entrepreneurial Development.
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1
Union Calendar No. 802
118TH CONGRESS REPORT
" HOUSE OF REPRESENTATIVES !
2d Session 118–953
REPORT ON THE ACTIVITY
OF THE
COMMITTEE ON SMALL BUSINESS
118TH CONGRESSS
DECEMBER 26, 2024.—Committed to the Committee of the Whole House
on the State of the Union and ordered to be printed
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U.S. GOVERNMENT PUBLISHING OFFICE
57–826 WASHINGTON : 2025
E:\Seals\Congress.#13
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LETTER OF TRANSMITTAL
HOUSE OF REPRESENTATIVES,
COMMITTEE ON SMALL BUSINESS,
Washington, DC, December 26, 2024.
Hon. KEVIN F. MCCUMBER,
Acting Clerk, House of Representatives,
Washington, DC.
DEAR MR. CLERK: In accordance with clause 1(d) of rule XI of the
Rules of the House of Representatives, I respectfully submit the ac-
tivities report of the Committee on Small Business for the 118th
Congress.
Sincerely,
ROGER WILLIAMS,
Chairman.
(III)
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CONTENTS
Page
Letter Of Transmittal .............................................................................................. (III)
Committee Jurisdiction And Special Oversight Function .................................... 1
Rules Of The Committee On Small Business ........................................................ 1
Membership And Organization ............................................................................... 17
Authorization And Oversight Plan ......................................................................... 19
Report ....................................................................................................................... 19
Legislative Activities ............................................................................................... 25
A. Business Meetings ....................................................................................... 25
B. Legislation .................................................................................................... 26
Oversight Summary ................................................................................................ 37
C. Part A—Full Committee Hearings ............................................................. 37
D. Part B—Subcommittee Hearings ............................................................... 61
E. Part C—Waste, Fraud, Abuse, And Mismanagement .............................. 71
F. Part D—Implementation Of The Oversight Plan ...................................... 75
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(V)
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Union Calendar No. 802
118TH CONGRESS REPORT
" HOUSE OF REPRESENTATIVES !
2d Session 118–953
REPORT ON THE ACTIVITIES OF THE COMMITTEE ON
SMALL BUSINESS FOR THE 118TH CONGRESS
DECEMBER 26, 2024.—Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
Mr. WILLIAMS of Texas, from the Committee on Small Business,
submitted the following
R E P O R T
Clause 1(d) of rule XI of the Rules of the House of Representa-
tives for the 118th Congress requires that each standing com-
mittee, not later than January 2nd of each odd-numbered year,
submit to the House a report on the activities of that Committee,
including separate sections summarizing the legislative and over-
sight activities of that Committee.
COMMITTEE JURISDICTION AND SPECIAL OVERSIGHT
FUNCTION
Clause 1(q) of rule X of the Rules of the House of Representatives
sets forth the jurisdiction of the Committee on Small Business as
follows:
(1) Assistance to and protection of small business, including
financial aid, regulatory flexibility, and paperwork reduction.
(2) Participation of small-business enterprises in Federal
procurement and Government contracts.
In addition, clause 3(l) of rule X of the Rules of the House of Rep-
resentatives provides that the Committee on Small Business shall
study and investigate on a continuing basis the problems of all
types of small business.
RULES OF THE COMMITTEE ON SMALL BUSINESS
1. GENERAL PROVISIONS
(A) Applicability of House Rules.
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(1) The Rules of the House of Representatives, so far as they
are applicable, are the rules of the Committee on Small Busi-
ness (‘‘the Committee’’) and its Subcommittees.
(2) Each subcommittee is part of the Committee and is sub-
ject to the authority and direction of the Committee and its
rules so far as applicable.
(3) Except where the term ‘‘the Committee’’ and ‘‘sub-
committee’’ are specifically referred to, the following rules shall
apply to the Committee and its subcommittees as well as the
to their respective chairs, ranking minority members, and
members.
(4) Rule XI of the Rules of the House, which pertains entirely
to Committee procedure, is incorporated and made a part of
the rules of the Committee to the extent applicable.
(B) Appointments by the Chair. Pursuant to the Rules of the
House, the Chair shall designate a Member of the Committee Ma-
jority to serve as Vice Chair of the Committee. The Vice Chair shall
preside at any meeting or hearing during the temporary absence of
the Chair. The Chair also reserves the right to designate a Member
of the Committee Majority to serve as the Chair at a hearing or
meeting.
(C) Authority to Conduct Investigations. The Committee and its
subcommittees, after consultation with the Chairman of the Com-
mittee, may conduct such investigations and studies as they may
consider necessary or appropriate in the exercise of their respon-
sibilities under Rule X of the Rules of the House and in accordance
with clause 2(m) of House Rule XI.
2. MEETINGS IN GENERAL
(A) Regular Meetings. The regular meeting day of the Committee
shall be the second Wednesday of every month when the House is
in session. The Chair is authorized to dispense with a regular
meeting or to change the date thereof when circumstances warrant
as determined by the sole discretion of the Chair.
(B) Additional Meetings. Additional meetings may be called as
deemed necessary by the Chair or at the request of the majority
Members of the Committee pursuant to Rule XI, cl. 2(c) of the rules
of the House. At least 3 calendar days’ notice, pursuant to Rule XI,
cl. 2(g)(3)(A), of such an additional meeting shall be given unless
the Chair, with the concurrence of the Ranking Minority Member,
determines that there is good cause to call the meeting on less no-
tice or upon a vote by a majority of the Committee (a quorum being
present). Announcements of the meeting shall be published
promptly in the Daily Digest and made publicly available in elec-
tronic form.
(C) Business to be Considered. The determination of the business
to be considered at each meeting shall be made by the Chair sub-
ject to limitations set forth in House Rule XI, cl. 2(c).
(D) Meeting Materials. The Chair shall provide to each Member
of the Committee, to the extent practicable, at least 48 hours in ad-
vance of a meeting, a copy of the bill, resolution, report, or other
item to be considered at the meeting, but no later than 24 hours
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before the meeting. Such material also shall be made available to
the public at least 24 hours in advance in electronic form.
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(E) Special and Emergency Meetings. The rules for notice and
meetings as set forth in Rule 5 of these Rules shall not apply to
special and emergency meetings. Clause 2(c)(2) of Rule XI and
clause 2(g)(3)(A) of Rule XI of the Rules of the House, as applicable,
shall apply to such meetings.
(F) Open Meetings. Each meeting of the Committee or its Sub-
committees for the transaction of business, including the markup
of legislation, shall be open to the public, including to radio, tele-
vision, streaming, and still photography coverage, except as pro-
vided by House Rule XI, cl. 4. If the majority of Members of the
Committee or Subcommittee present at the meeting determine by
a recorded vote in open session that all or part of the remainder
of the meeting on that day shall be closed to the public because the
disclosure of matters to be considered would endanger national se-
curity, would compromise sensitive law enforcement information, or
would tend to defame, degrade, or incriminate any person or other-
wise would violate any law or rule of the House; provided however,
that no person other than Members of the Committee, and such
congressional staff and such executive branch representatives they
may authorize, shall be present in any meeting which has been
closed to the public.
(G) Open Hearings. Each hearing conducted by the Committee or
its Subcommittees shall be open to the public, including radio, tele-
vision, and still photography coverage. If the majority of Members
of the Committee or Subcommittee present at the hearing deter-
mine by a recorded vote in open session that all or part of the re-
mainder of the hearing on that day shall be closed to the public be-
cause the disclosure of matters to be considered would endanger
national security, would compromise sensitive law enforcement in-
formation, or would tend to defame, degrade, or incriminate any
person or otherwise would violate any law or rule of the House;
provided however, that the Committee or Subcommittee may by
the same procedure also vote to close one subsequent day of hear-
ings. Notwithstanding the requirements of the preceding sentence,
a majority of those present (if the requisite number of Members are
present under Committee Rules for the purpose of taking testi-
mony) may vote: (i) to close the hearing for the sole purpose of dis-
cussing whether the testimony or evidence to be received would en-
danger the national security, would compromise sensitive law en-
forcement information, or violate Rule XI, cl. 2(k)(5) of the House
or (ii) to close the hearing, as provided clause 2(k)(5) of Rule XI of
the House.
(H) Participation in Subcommittee Hearings. The Chair and
Ranking Minority Member are ex officio Members of all Sub-
committees for any hearing conducted by a Subcommittee. Mem-
bers of the Committee who wish to participate in a hearing of the
Subcommittee to which they are not Members shall make such re-
quest to the Chair and the Ranking Minority Member of the Sub-
committee at the commencement of the hearing. The Chair, after
consultation with the Ranking Minority Member of the Sub-
committee, shall grant such request.
(I) Non-Participatory Attendance by Other Members of the
House. No Member of the House may be excluded from non-
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participatory attendance at any hearing of the Committee or any
Subcommittee, unless the House of Representatives shall by major-
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ity vote authorize the Committee or Subcommittees, for purposes
of a particular subject of investigation, to close its hearing to Mem-
bers by the same procedures designated to close hearings to the
public.
(J) Procedure to Participate. Members of Congress who are not
Members of the Committee but would like to participate in a hear-
ing shall notify the Chair and the Ranking Minority Member and
submit a formal request no later than 24 hours before the com-
mencement of the meeting or hearing. Such Member may not vote
on any matter; be counted for the purpose of establishing a
quorum; participate in questioning a witness under the 5-Minute
rule, unless permitted to do so by the Chair in consultation with
the Ranking Minority Member; raise points of order; or offer
amendments or motions.
(K) Audio and Video Coverage. To the maximum extent prac-
ticable, the Committee shall provide audio and video coverage of
each hearing or meeting for the transaction of business in a man-
ner that allows the public to easily listen and view the proceedings
and shall maintain the recordings of such coverage in a manner
easily accessible to the public. Operation and use of any Committee
internet broadcast system shall be fair and nonpartisan, and in ac-
cordance with clauses 4 (b) and (f) of House Rule XI and all other
applicable rules of the Committee and the House.
3. MEETING AND HEARING PROCEDURES IN GENERAL
(A) Notice and Information for Members and the Public
(1) Public announcement of the date, place, and subject mat-
ter of any hearing to be conducted by the Committee shall be
made no later than seven (7) calendar days before the com-
mencement of the hearing. To the extent possible, the seven
days shall be counted from 168 hours before the time of the
Committee’s hearing.
(2) The Chair, with the concurrence of the Ranking Minority
Member, or upon a vote by the majority of the Committee (a
quorum being present), may authorize a hearing to commence
on less than 7 days’ notice.
(3) A list of witnesses shall be made available as soon as
practicable after the hearing is noticed to the public. A final
witness list shall be issued by the Committee no later than 48
hours prior to the commencement of the hearing.
(4) The Chair shall provide to all Members of the Committee,
as soon as practicable after the announcement of the hearing,
a memorandum explaining the subject matter of the hearing
and any official reports from departments and agencies on the
subject matter of the hearing. Such material shall be made
available to all Members of the Committee no later than 48
hours before the commencement of the hearing, unless the
Chair, after consultation with the Ranking Minority Member,
determines that certain reports from departments or agencies
should not be made available prior to the commencement of
the hearing. Material provided by the Chair to all Members,
whether provided prior to or at the hearing, shall be placed on
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the Committee website no later than 48 hours after the com-
mencement of the hearing, unless such material contains sen-
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sitive or classified information, in which case such material
shall be handled pursuant to Rule 16 of the Committee’s Rules.
(B) Questioning of Witnesses. Except when the Committee adopts
a motion pursuant to subdivisions (B) and (C) of clause 2(j)(2) of
Rule XI of the Rules of the House, Committee Members may ques-
tion witnesses only when they have been recognized by the Chair
for that purpose. Members shall have the opportunity, as set forth
in Rule XI, cl. 2 (j) of the Rules of the House, to question each wit-
ness on the panel for a period not to exceed five minutes. For any
hearing, the Chair of the Committee or Subcommittee may offer a
motion to extend the questioning of a witness or witnesses by the
Member identified in the motion for more than five minutes as set
forth in Rule XI, cl. 2(j)(B). No Member may be recognized for a
second period of interrogation, subject to the 5-minute rule, until
each Member present, who wishes to be recognized, has been recog-
nized at least once.
(C) Order of Questioning
(1) Full Committee Hearings. The Chair of the Committee
shall commence questioning followed by the Ranking Minority
Member. Thereafter, questioning shall alternate between the
Majority and Minority Members. Before the gavel has been
struck, or in the case of Members arriving simultaneously, the
order of questioning shall be based on seniority among Mem-
bers of his or her own party. After the gavel has been struck,
Members first to arrive shall have priority over Members of his
or her own party. Members of Congress who are not Members
of the Committee, if allowed by the Chair, may be recognized
for questioning of witnesses but only after all Committee Mem-
bers have first been recognized.
(2) Subcommittee Hearings. The Chair of the Subcommittee
shall commence questioning followed by the Ranking Minority
Member of the Subcommittee. If present, the Chair and Rank-
ing Minority Member of the Committee shall then be recog-
nized for questioning, respectively. Thereafter, questioning
shall alternate between the Majority and Minority Members of
the Subcommittee. Before the gavel has been struck, or in the
case of Subcommittee Members arriving simultaneously, the
order of questioning shall be based on seniority among Mem-
bers of his or her own party. After the gavel has been struck,
Subcommittee Members first to arrive shall have priority over
Subcommittee Members of his or her own party. Members of
the Full Committee who are not members of the Subcommittee
and are granted permission to participate pursuant to com-
mittee rule 7(C), may be recognized for questioning only after
all Subcommittee Members have first been recognized. The
order of questioning for Members of the Full Committee who
are not members of the Subcommittee shall be based on full
committee seniority. Members of Congress who are not Mem-
bers of the Subcommittee, if allowed by the Chair, may be rec-
ognized for questioning of witnesses but only after all Sub-
committee Members and Full Committee Members have first
been recognized.
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(D) Consideration of Ratio. In recognizing Members to question
witnesses, the Chair may take into consideration the ratio of Ma-
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jority and Minority Members present in such a manner as to not
disadvantage the Members of either party.
(E) Remote Participation. Except as provided by section 3(j) of H.
Res. 5, 118th Congress and these regulations, witnesses shall tes-
tify before a committee in person. No remote testimony will be ac-
cepted from witnesses testifying in a government capacity. In the
event the chair of a committee determines that testimony of a wit-
ness appearing in a non-governmental capacity is necessary and
such a witness is only available to participate remotely due to ex-
treme hardship or other exceptional circumstances, the chair may
allow the witness to participate remotely, with written approval
from the Majority Leader.
(1) The official record of the committee proceeding shall in-
clude a letter from the chair detailing the necessity of allowing
the witness to participate remotely, a description of why the
witness could not participate in person, why such testimony
was necessary for purposes of fulfilling Congress’s Article I re-
sponsibility, and a letter from the Majority Leader approving
of such remote participation.
(2) The witness must agree to remain on the platform until
excused by the chair. The witness should conduct a pre-hearing
technology test with staff designated by the chair, to ensure
the witness will have sufficient internet connection during the
hearing, and to minimize the possibility of any technical
issues.
(3) No witness appearing in a governmental capacity may
participate remotely. No witness testifying before a committee
in response to a subpoena is permitted to testify remotely, un-
less both the chair of the committee and the Majority Leader
authorize such testimony in writing and printed in the Con-
gressional Record.
(4) Any text based or private messaging function in the soft-
ware platform used to facilitate the participation of a remote
witness must be disabled unless it is used to provide technical
support to the witness, which may be excluded from the public
video stream and will not be considered a committee record.
(5) Only witnesses approved for remote participation may
have participatory access on the software platform.
(6) Committees may only utilize a software platform certified
by the Chief Administrative Officer. The Chief Administrative
Officer should inform committees, including the ranking minor-
ity members, each time a software platform is certified.
(7) Witnesses participating remotely should appear before a
nonpolitical, professional appropriate background that is mini-
mally distracting to other members and witnesses, to the
greatest extent possible. It remains within the full discretion
of the chair to enforce rules of decorum for committee pro-
ceedings.
(8) Any committee report of activities submitted pursuant to
clause 1(d)(1) of rule XI should include a list of hearings con-
ducted with remote participation.
(9) A witness participating remotely in a committee pro-
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ceeding shall be visible onscreen within the software platform
until excused by the chair. The witness shall disclose to the
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chair and ranking member any additional individual(s) present
off screen.
(10) Witness counsel shall be allowed access on the remote
proceeding software platform if they are not in the physical
presence of the witness. It is recommended that counsel facili-
tate a separate secure line of communication with the witness.
A witness may not be unmuted by any other individual and
should be allowed to use such secure line of communication
while testifying to confer with counsel.
(11) A witness may not allow an individual not invited to tes-
tify to speak on the platform. The committee chair may only
provide an exception when the other individual is necessary to
facilitate the witness’s participation in the hearing (e.g. trans-
lators).
(12) A chair may not authorize remote participation for more
than one witness at a committee hearing without the approval
of the Majority Leader in writing and printed in the Congres-
sional Record.
(F) Transcripts of proceedings. A stenographic record of all testi-
mony shall be kept of public meetings and hearings and shall be
made available on such conditions as the Chair may prescribe.
4. REFERRAL OF BILLS BY THE CHAIR
The Chair will retain consideration of all legislation referred to
the Committee by the Speaker. No action will be required of a Sub-
committee before legislation is considered for report by the Com-
mittee. Subcommittee chairs, pursuant to the rules set out herein,
may hold hearings on any bill referred to the Committee.
5. SUBCOMMITTEES
(A) Generally. Each Subcommittee of the Committee is part of
the Committee and is subject to the authority and direction of the
Committee, and to the Rules of the House and the rules adopted
herein, to the extent applicable. The Chair and Ranking Member
of the Committee are ex officio Members of all Subcommittees for
the purpose of any meeting conducted by a Subcommittee.
(B) The Committee shall be organized into the following five sub-
committees:
1. Subcommittee on Rural Development, Energy, and Supply
Chains. This Subcommittee (which will consist of six (6) Re-
publican Members and five (5) Democratic Members) will ad-
dress issues to enhance rural economic and business growth,
increase America’s energy independence, and ensure America’s
small businesses can compete effectively in a global market-
place. This Subcommittee will review supply chain disruptions
impacts on small businesses and the importance of having
products made in America.
• Oversight of the Small Business Administration’s out-
reach and structure as it pertains to increasing assistance
to rural businesses and entrepreneurs.
• Oversight of agricultural policies, including those re-
lated to the Farm bill to enhance small business interests..
• Oversight of trade policies and issues affecting small
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firms related to trade agreements.
• Oversight of energy issues.
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• Oversight of international trade policy with particular
emphasis on agencies that provide direct assistance to
small businesses, such as: the Small Business Administra-
tion’s (SBA) Office of International Trade, the Department
of Commerce’s United States Export Assistance Centers,
the Department of Agriculture’s Foreign Agricultural Serv-
ice, and the
• Export-Import Bank.
• Oversight of infringement of intellectual property
rights by foreign competition.
• Examine the implementation and effectiveness of gov-
ernment programs designed to assist rural and agricul-
tural businesses impacted by the pandemic.
• Examine the impact of supply chain disruptions on
small businesses.
2. Subcommittee on Innovation, Entrepreneurship, and
Workforce Development. This Subcommittee (which will consist
of six (6) Republican Members and five (5)Democratic Mem-
bers) will address how innovation promotes economic growth
and job creation by small businesses. In addition, the Sub-
committee will examine small business job growth through the
creation and adoption of advanced technologies. The Sub-
committee will review the broad scope of workforce issues that
affect the ability of small businesses to obtain and maintain
qualified employees.
• Oversight of SBA entrepreneurial development pro-
grams.
• Oversight of all federal policies that affect the work-
force including, but not limited to, the roles of the Depart-
ment of Labor, the Occupational Safety and Health Admin-
istration, and the National Labor Relations Board.
• Analyze workforce issues, including but not limited to
health care, retirement, and labor challenges facing small
businesses.
• Examination of general technology issues, including
cyber security issues confronting small businesses and in-
tellectual property policy in the United States.
• Oversight of United States telecommunications poli-
cies including, but not limited to, the National Broadband
Plan and allocation of electromagnetic spectrum.
• Oversight of the Small Business Innovation Research
Program.
• Oversight of the Small Business Technology Transfer
Program.
• Investigate the state of the nation’s entrepreneurship,
the challenges they face, and steps to strengthen entrepre-
neurship, including startups, solopreneurs, self-employed,
and microbusinesses.
• Examine programs and efforts designed to assist both
small employers and their workers throughout the Covid–
19 pandemic.
3. Subcommittee on Economic Growth, Tax, and Capital Ac-
cess. This Subcommittee (which will consist of six (6) Repub-
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lican Members and five (5) Democratic Members) will evaluate
the operation of the financial markets in the United States and
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their ability to provide needed capital to small businesses. In
addition, the Subcommittee will review federal programs, espe-
cially those overseen by the SBA, aimed at assisting entre-
preneurs in obtaining needed capital. Since the tax policy plays
an integral role in access to capital, this Committee also will
examine the impact of federal tax policies on small businesses.
• Oversight of capital access and financial markets in-
cluding FinTech and digital asset companies.
• SBA financial assistance programs, including guaran-
teed loans, microloans, certified development company
loans, and small business investment companies.
• Implementation of the Dodd-Frank Wall Street Re-
form and Consumer Protection Act
• Oversight of the Consumer Financial Protection Bu-
reau.
• Oversight of the Department of Agriculture business
and industry guaranteed loan program.
• Oversight of general tax policy affecting small busi-
nesses.
• Oversight of the Internal Revenue Service.
• The management of the SBA’s COVID Relief programs
and the agency’s disaster loan program.
• Analyze efforts to address challenges for the unbanked
and underbanked business community and steps to in-
crease capital access
• Review the challenges and opportunities presented by
Fintech companies as it relates to small business capital-
ization.
• Investigate the implementation and efficacy of pro-
grams related to supporting the business community and
nonprofits throughout the Covid–19 pandemic, including
but not limited to the Paycheck Protection Program, the
Economic Injury Disaster Loan program, and other SBA
programs.
4. Subcommittee on Oversight, Investigations, and Regula-
tions. This Subcommittee (which will consist of six (6) Repub-
lican Members and five (5) Democratic Members) will review
the regulatory burdens imposed on small businesses by federal
agencies and how those burdens may be alleviated. This Sub-
committee will also probe the efficient operation of government
programs that affect small businesses, including the SBA, and
develop proposals to make them operate in a more efficient
manner.
• Oversight of general issues affecting small businesses
and federal agencies.
• Oversight of the management of the SBA.
• Oversight of the SBA Inspector General.
• Oversight of the SBA’s Office of Advocacy.
• Implementation and effectiveness of the Regulatory
Flexibility Act.
• Oversight of the Office of Information and Regulatory
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Affairs at the Office of Management and Budget.
• Use of the Congressional Review Act.
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• Transparency of the federal rulemaking process as re-
quired by the Administrative Procedure and Data Quality
Acts.
• Evaluating the Paperwork Reduction Act.
• Investigate all programs relating to the Covid–19 pan-
demic, SBA’s anti-fraud framework, and their impact on
the business and nonprofit community and their employ-
ees.
5. Subcommittee on Contracting and Infrastructure. This
Subcommittee (which will consist of six (6) Republican Mem-
bers and five (5) Democratic Members) will assess the federal
procurement system, including those programs designed spe-
cifically to enhance participation by small businesses in pro-
viding goods and services to the federal government. The Sub-
committee will review the broad scope of opportunities avail-
able to small businesses for rebuilding and modernizing the
nations’ infrastructure.
• Oversight of government-wide procurement practices
and programs affecting small businesses.
• Oversight of federal procurement policies that inhibit
or expand participation by small businesses in the federal
contracting marketplace.
• Oversight of all contracting programs established by
the Small Business Act or those relying on or modeled
after programs in the Small Business Act
• Review technical assistance provided to federal con-
tractors and prospective contractors through SBA per-
sonnel, Offices of Small and Disadvantaged Business Utili-
zation, and Procurement Technical Assistance Centers.
• Review the SBA Surety Bond guarantee program.
• General oversight of programs available to small busi-
nesses in modernizing and strengthening the nation’s in-
frastructure.
• Address steps the federal government has taken or
can take to strengthen the supply chain and create more
federal procurement opportunities for small business con-
cerns.
• Analyze implementation of the infrastructure law to
ensure the participation of small businesses and review
steps needed to strengthen their competitiveness in infra-
structure projects.
(C) Powers and Duties of Subcommittees. Each Subcommittee is
authorized to meet, hold hearings, receive evidence, and report to
the Committee on any matters referred to it. Prior to the sched-
uling of any meeting or hearing of a Subcommittee, the Chair of
the Subcommittee shall obtain the approval of the Chair of the
Committee.
(D) Hearing Time and Date. No hearing or meeting of a Sub-
committee shall take place at the same time as the meeting or
hearing of the Full Committee or another Subcommittee, provided
however, that the Subcommittee Chairs may hold field hearings
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that conflict with those held by other Subcommittees of the Com-
mittee.
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6. WITNESSES
(A) Number of Witnesses. For any hearing conducted by the
Committee or Subcommittee there shall be no more than four non-
governmental witnesses of which the Ranking Minority Member of
the Committee or Subcommittee (as appropriate) is entitled to se-
lect one witness for the hearing.
(B) Witnesses Selected by the Minority. Witnesses selected by the
Ranking Minority Member of the Committee or Subcommittee shall
be invited to testify by the Chair of the Committee or Sub-
committee (as appropriate). Rule 6(A) shall apply with equal force
to witnesses selected by the Ranking Minority Member of the Com-
mittee or Subcommittee.
(C) Small Business Week Exception. The limitations set forth in
the preceding paragraph shall not apply if the Committee holds a
hearing to honor the work of the small business community in con-
junction with the annual celebration of Small Business Week. Wit-
ness limitations for such a hearing shall be determined by the
Chair in consultation with the Ranking Minority Member.
(D) Statement of Witnesses.
(1) Insofar as is practicable, each witness who is to appear
before the Committee or Subcommittee shall file an electronic
copy of the written testimony with the Committee and the
Ranking Minority Member no later than 48 hours before the
commencement of the hearing.
(2) Each witness shall limit his or her oral presentation to
a five-minute summary of the written testimony, unless the
Chair, in consultation with the Ranking Minority Member, ex-
tends this time period.
(3) Insofar as is practicable, each non-governmental witness
shall provide to the Committee and the Ranking Minority
Member, no later than 48 hours before the commencement of
the hearing, a curriculum vitae or other statement describing
their education, employment, professional affiliation, or other
background information pertinent to their testimony.
(E) Witness Disclosure. As required by Rule XI, cl. 2(g) of the
Rules of the House, each non-governmental witness before the com-
mencement of the hearing shall file with the Chair a disclosure
form detailing any contracts or grants that the witness has with
the federal government, as well as the amount and country of ori-
gin of any payment or contract related to the subject of the hearing
originating with a foreign government. Such information shall be
posted on the Committee website within 24 hours after the witness
appeared at the hearing.
(F) Failure to Comply. The failure to provide the materials set
forth by the deadlines set forth in these rules may be grounds for
excluding both the oral and written testimony of the witness unless
waived by the Chair of the Committee or Subcommittee.
(G) Public Access to Witness Materials. The Committee will pro-
vide public access to printed materials, including the testimony of
witnesses in electronic form on the Committee’s website no later
than 24 hours after the hearing is adjourned. Supplemental mate-
rial provided after the hearing adjourns shall be placed on the
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Committee website no later than 24 hours after receipt of such ma-
terial.
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7. QUORUM
(A) Generally. A majority of the members of the Committee or a
subcommittee shall form a quorum for the Committee or sub-
committee, respectively, except that two members, one Member
from the Majority and one Member from the Minority, shall con-
stitute a quorum for taking testimony and receiving evidence.
(B) Quorum for a Hearing. For purposes of taking testimony or
receiving evidence, a quorum shall be one Member from the Major-
ity and one Member from the Minority.
(C) The Chair of the Committee or Subcommittee shall exercise
reasonable comity by waiting for the Ranking Minority Member
even if a quorum is present before striking the gavel to commence
the hearing.
(D) Field Hearings. For hearings held by the Committee or a
Subcommittee in a location other than the Committee’s hearing
room or the assigned hearing room in Washington, DC, a quorum
shall be deemed to be present if the Chair of the Committee or
Subcommittee is present.
8. RECORD VOTES
(A) When Provided. A record vote of the Committee shall be pro-
vided on any question before the Committee upon the request of
any Member of the Committee. A record of the vote of each Mem-
ber of the Committee on a matter before the Committee shall be
available in electronic form within 48 hours of such record vote,
and, with respect to any roll call vote on any motion to amend or
report, shall be included in the report of the Committee showing
the total number of votes cast for and against and the names of
those Members voting for and against.
(B) Proxy Voting. No vote by any Member of the Committee with
respect to any measure or matter may be cast by proxy.
(C) Public Access to Record Votes. The Chair of the Committee
shall, not later than 24 hours after consideration of a bill, resolu-
tion, report or other item, cause the text of the reported item and
any amendment adopted thereto to be made publicly available in
electronic form.
9. SUBPOENAS, OATHS, AND DEPOSITIONS
(A) Issuance of Subpoena. A subpoena may be authorized and
issued by the Chairman, in accordance with clause 2(m) of Rule XI
of the House of Representatives with 24-hour notice and consulta-
tion with the Ranking Member.
(1) The Committee may authorize and issue a subpoena
under clause 2(m) of House Rule XI if authorized by a majority
of the Members voting.
(B) Oaths. The Chairman of the Committee, or any member of
the Committee designated by the Chairman, may administer oaths
to any witness.
(C) Deposition Authority. Pursuant to section 3(k) of House Reso-
lution 5 of the 118th Congress, the Chair upon consultation with
the Ranking Minority Member may order the taking of depositions,
including pursuant to subpoena, by a member or counsel of the
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Committee. Depositions taken by a member or counsel of the Com-
mittee shall be subject to regulations issued by the Committee on
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13
Rules and printed in the Congressional Record. A witness shall not
be required to testify unless the witness has been provided with a
copy of section 3(k) of H. Res. 5, 118th Congress, and these regula-
tions.
10. AMENDMENTS DURING MARKUP
(A) Availability of Amendments. Any amendment offered to any
pending legislation before the Committee must be made available
in written form by any Member of the Committee. If such amend-
ment is not available in written form when requested, the markup
may be recessed subject to the call of the Chair to provide sufficient
time for the provision of such written amendment. Such recess
shall not prejudice the offering of such amendment.
(B) Drafting and Filing of Amendments. For amendments to be
accepted during markup, there is no requirement that the amend-
ments be filed prior to commencement of the markup or prepared
with the assistance of the Office of Legislative Counsel. Even
though it is not necessary, Members seeking to amend legislation
during markup should draft amendments with the assistance of the
Office of Legislative Counsel and consult with the Chair or Rank-
ing Minority Member’s staff (as appropriate) in the preparation of
such amendments.
11. POSTPONEMENT OF PROCEEDINGS
(A) When Postponement is Permissible. The Chair, in consulta-
tion with the Ranking Minority Member, may postpone further pro-
ceedings when a record vote is ordered on the question of approv-
ing any measure or matter or adopting an amendment. The Chair
may resume postponed proceedings, but no later than 24 hours
after such postponement, unless the House is not in session or
there are conflicts with Member schedules that make it unlikely a
quorum will be present to conduct business on the postponed pro-
ceeding. In such cases, the Chair will consult with Members to set
a time as early as possible to resume proceedings but in no event
later than the next meeting date as set forth in Rule 2 of these
Rules.
(B) Resumption of Proceedings. When proceedings resume on a
postponed question, notwithstanding any intervening order for the
previous question, an underlying proposition shall remain subject
to further debate or amendment to the same extent as when the
question was postponed.
12. COMMITTEE RECORDS
(A) The Committee shall maintain a complete record of all ac-
tions, which shall include a record of the votes on any question on
which a recorded vote is demanded. The result of any vote by the
Committee, or if applicable by a Subcommittee, including a voice
vote shall be posted on the Committee’s website within 24 hours
after the vote has been taken. Such record shall include a descrip-
tion of the amendment, motion, order, or other proposition, the
name of the Member voting for and against such amendment, mo-
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tion, order, or other proposition, and the names of Members
present but not voting. For any amendment, motion, order, or other
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14
proposition decided by voice vote, the record shall include a descrip-
tion and whether the voice vote was in favor or against.
(B) Transcripts. The Committee shall maintain a complete record
of all Committee and Subcommittee activity which, in the case of
a meeting or hearing transcript, shall include a substantially ver-
batim account of the remarks actually made during the proceedings
subject only to technical, grammatical, and typographical correc-
tions authorized by the person making the remarks.
(C) Availability of Records. The records of the Committee at the
National Archives and Records Administration shall be made avail-
able in accordance with Rule VII of the Rules of the House. The
Chair of the Committee shall notify the Ranking Member of the
Committee of any decision, pursuant to Rule VII, cl. 3(b)(3) or cl.
4 (b), to withhold a record otherwise available, and the matter shall
be presented to the Committee for a determination of the written
request of any Member of the Committee.
(D) Publishing and Posting of Records. The Committee Rules
shall be made publicly available in electronic form and published
in the Congressional Record not later than 60 days after the Chair
of the Committee is elected in each odd-numbered year.
13. COMMITTEE WEBSITE
The Chair shall maintain an official Committee website for the
purpose of furthering the Committee’s legislative and oversight re-
sponsibilities, including communicating information about Commit-
tee’s activities to Committee Members and other Members of the
House. The Ranking Minority Member may maintain a similar
website for the same purpose, including communicating informa-
tion about the activities of the Minority to Committee Members
and other Members of the House.
14. ACCESS TO CLASSIFIED OR SENSITIVE INFORMATION
(A) Access to classified or sensitive information supplied to the
Committee or Subcommittees and attendance at closed sessions of
the Committee or a Subcommittee shall be limited to Members and
necessary Committee staff and stenographic reporters who have
appropriate security clearance when the Chair determines that
such access or attendance is essential to the functioning of the
Committee or one of its Subcommittees.
(B) Procedures Governing Availability. The procedures to be fol-
lowed in granting access to those hearings, records, data, charts,
and files of the Committee which involve classified information or
information deemed to be sensitive shall be as follows:
(1) Only Members of the House of Representatives and spe-
cifically designated Committee staff of the Committee on Small
Business may have access to such information.
(2) Members who desire to read materials that are in posses-
sion of the Committee shall notify the Clerk of the Committee
in writing.
(3) The Clerk of the Committee will maintain an accurate ac-
cess log, which identifies the circumstances surrounding access
to the information, without revealing the material examined.
(4) If the material desired to be reviewed is material which
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the Committee or Subcommittee deems to be sensitive enough
to require special handling, before receiving access to such in-
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formation, individuals will be required to sign an access infor-
mation sheet acknowledging such access and that the indi-
vidual has read and understands the procedures under which
access is being granted.
(5) Material provided for review under this rule shall not be
removed from a specified room within the Committee offices.
(6) Individuals reviewing materials under this rule shall
make certain that the materials are returned to the proper
custodian.
(7) No reproductions or recordings may be made of any por-
tion of such materials.
(8) The contents of such information shall not be divulged to
any person in any way, form, shape, or manner and shall not
be discussed with any person who has not received the infor-
mation in the manner authorized by the rules of the Com-
mittee.
(9) When not being examined in the manner described here-
in, such information will be kept in secure safes or locked file
cabinets within the Committee offices.
(10) These procedures only address access to information the
Committee or Subcommittee deems to be sensitive enough to
require special treatment.
(11) If a Member of the House of Representatives believes
that certain sensitive information should not be restricted as
to dissemination or use, the Member may petition the Com-
mittee or Subcommittee to so rule.
(12) With respect to classified information and materials pro-
vided to the Committee by the Executive Branch or an inde-
pendent agency as that term is defined in 44 U.S.C. § 3502,
the classification of information and materials as determined
by the Executive Branch or independent agency shall prevail
unless affirmatively changed by the Committee or Sub-
committee involved, after consultation with the Executive
Branch or independent agency.
(13) Other materials in the possession of the Committee are
to be handled in accordance with House Rules.
15. OTHER PROCEDURES
The Chair of the Committee may establish such other procedures
and take such actions as may be necessary to carry out the fore-
going rules or to facilitate the effective operation of the Committee.
16. AMENDMENTS TO COMMITTEE RULES
The rules of the Committee may be modified, amended, or re-
pealed by a majority vote of the Members, at a meeting specifically
called for such purpose, but only if written notice of the proposed
change or changes has been provided to each Member of the Com-
mittee at least 72 hours prior to the time of the meeting of the
Committee to consider such change or changes.
17. COMMITTEE STAFF
(A) Majority Staff. The employees of the Committee, except those
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assigned to the Minority as provided below, shall be appointed and
assigned, and may be removed by the Chair of the Committee. The
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Chair shall fix their remuneration and they shall be under the gen-
eral supervision and direction of the Chair.
(B) Minority Staff. The employees of the Committee assigned to
the Minority shall be appointed and assigned, and their remunera-
tion determined, as the Ranking Minority Member of the Com-
mittee shall decide.
(C) Subcommittee Staff. There shall be no separate staff assigned
to Subcommittees. The Chair and Ranking Minority Member shall
endeavor to ensure that sufficient Committee staff is made avail-
able in order that each Subcommittee may carry out the respon-
sibilities set forth in Rule 3, supra.
18. BUDGET AND TRAVEL
(A) Allocation of Budget. From the amount provided to the Com-
mittee in the primary expense resolution adopted by the House of
Representatives in the 118th Congress, the Chair, after consulta-
tion with the Ranking Minority Member, shall designate one- third
of the budget under the direction of the Ranking Minority Member
for the purposes of Minority staff, travel expenses of Minority staff
and Members, and Minority office expenses.
(B) Authorization of Travel. The Chair may authorize travel in
connection with activities or subject matters under the legislative
or oversight jurisdiction of the Committee as set forth in Rule X of
the Rules of the House. The Ranking Minority Member may au-
thorize travel for any Minority Member or staff of the Minority in
connection with activities or subject matters under the Committee’s
jurisdiction as set forth in Rule X of the Rules of the House. Before
such travel, there shall be submitted to the Chair of the Committee
in writing the following at least seven (7) calendar days prior speci-
fying: (a) the purpose of the travel; (b) the dates during which the
travel is to occur; (c) the names of the states or countries to be vis-
ited and the length of time spent in each; and (d) the names of
Members and staff of the Committee participating in such travel.
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MEMBERSHIP AND ORGANIZATION
Committee on Small Business (Ratio: 15–12)
Roger Williams, Texas, Chairman
Republican Members Democrat Members
ROGER WILLIAMS (TX), Chairman NYDIA M. VELÁZQUEZ (NY), Ranking Member
BLAINE LUETKEMEYER (MO) JARED GOLDEN (ME)
PETE STAUBER (MN) KWEISI MFUME (MD) *
DAN MEUSER (PA) DEAN PHILLIPS (MN)
BETH VAN DUYNE (TX) GREG LANDSMAN (OH)
MARIA SALAZAR (FL) MORGAN MCGARVEY (KY)
TRACEY MANN (KS) MARIE GLUESENKAMP PEREZ (WA)
JAKE ELLZEY (TX) HILLARY SCHOLTEN (MI)
MARC MOLINARO (NY) SHRI THANEDAR (MI)
MARK ALFORD (MO) JUDY CHU (CA)
ELI CRANE (AZ) SHARICE DAVIDS (KS)
AARON BEAN (FL) CHRIS PAPPAS (NH)
WESLEY HUNT (TX) LAMONICA MCIVER (NJ) *
NICK LALOTA (NY)
CELESTE MALOY (UT) *
* Mr. Kewisi Mfume resigned from the Committee on June 4, 2024
* Ms. Celeste Maloy joined the Committee on December 6, 2023
* Ms. LaMonica McIver joined the Committee on September 24, 2024
SUBCOMMITTEE MEMBERSHIPS
Subcommittee on Economic Growth, Tax and Capital Access
Dan Meuser, Pennsylvania, Chairman
Republican Members Democrat Members
BLAINE LUETKEMEYER (MO) GREG LANDSMAN (OH), Ranking Member
BETH VAN DUYNE (TX) DEAN PHILLIPS (MN)
MARK ALFORD (MO) JUDY CHU (CA)
NICK LALOTA (NY) SHARICE DAVIDS (KS)
JARED GOLDEN (ME)
Subcommittee on Oversight, Investigations, and Regulations
Beth Van Duyne, Texas, Chairman
Republican Members Democrat Members
MARK ALFORD (MO) KWEISI MFUME (MD), Ranking Member *
ELI CRANE (AZ) MARIE GLUESENKAMP PEREZ (WA)
AARON BEAN (FL) JARED GOLDEN (ME)
WESLEY HUNT (TX) SHRI THANEDAR (MI) *
LAMONICA MCIVER (NJ) *
* After Mr. Mfume resigned, Mr. Shri Thanedar (MI) became Ranking Member
* After Mr. Mfume resigned, Ms. LaMonica McIver (NJ) joined the Subcommittee
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Subcommittee on Rural Development, Energy, and Supply Chains
Wesley Hunt, Texas, Chairman
Republican Members Democrat Members
BLAINE LUETKEMEYER (MO) MARIE GLUESENKAMP PEREZ (WA), Ranking
PETE STAUBER (MN) Member
DAN MEUSER (PA) JARED GOLDEN (ME)
TRACEY MANN (KS) HILLARY SCHOLTEN (MI)
CELESTE MALOY (UT) GREG LANDSMAN (OH)
Subcommittee on Contracting and Infrastructure
Nick LaLota, New York, Chairman
Republican Members Democrat Members
MARIA SALAZAR (FL) HILLARY SCHOLTEN (MI), Ranking Member
JAKE ELLZEY (TX) KWEISI MFUME (MD) *
MARC MOLINARO (NY) MORGAN MCGARVEY (KY)
AARON BEAN (FL) JUDY CHU (CA)
CELESTE MALOY (UT) SHRI THANEDAR (MI)
LAMONICA MCIVER (NJ) *
* After Mr. Mfume resigned, Ms. LaMonica McIver (NJ) joined the Subcommittee
Subcommittee on Innovation, Entrepreneurship, and Workforce
Development
Marc Molinaro, New York, Chairman
Republican Members Democrat Members
TRACEY MANN (KS) MORGAN MCGARVEY (KY), Ranking Member
MARIA SALAZAR (FL) SHRI THANEDAR (MI)
JAKE ELLZEY (TX) CHRIS PAPPAS (NH)
ELI CRANE (AZ) DEAN PHILLIPS (MN)
JUDY CHU (CA)
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AUTHORIZATION AND OVERSIGHT PLAN
Mr. Williams, Chair of the Committee on Small Business, sub-
mitted to the Committee on Oversight and Reform and the Com-
mittee on House Administration the following:
REPORT
Rule X, clause 2(d) of the Rules of the House requires each
standing committee of the House to adopt and submit an author-
ization and oversight plan for this Congress to the Committee on
Oversight and Accountability and the Committee on House Admin-
istration by March 1 of the first session of Congress.
The following is the authorization and oversight plan for the
Committee on Small Business and its subcommittees for the 118th
Congress. The Committee will conduct oversight and investigations
pursuant to its legislative and oversight jurisdiction under Rule X,
which permits the Committee to investigate any matter affecting
small business.
Rule X, clause 2(d)(2) requires that committee oversight plans in-
clude a list of programs or agencies within each committee’s juris-
diction with lapsed authorizations that received funding in the
prior fiscal year, or a program or agency with a permanent author-
ization, which has not been subject to a comprehensive review by
the committee in the prior three Congresses. The Committee has
found no Small Business Administration Programs (SBA) that fit
these parameters.
Rule X, clause 2(d)(2) also requires a description of the programs
or agencies to be authorized in the current Congress or the next
Congress, and any oversight to support the authorization of each
such program or agency in the current Congress, and recommenda-
tions for changes to existing law for moving such programs or agen-
cies from mandatory funding to discretionary appropriations, where
appropriate. The Committee may consider reforms and improve-
ments to various SBA programs as noted throughout this Author-
ization and Oversight Plan.
OVERSIGHT OF FEDERAL CAPITAL ACCESS PROGRAMS
The Committee will conduct hearings and investigations of SBA
and other federal agencies that provide capital to American’s entre-
preneurs that may include any or all of the following, as well as
matters brought to the attention of the Committee subsequent to
the filing of this Report:
D Effectiveness of the capital access programs to generate
jobs in the fastest growing small businesses.
D Whether lenders are meeting their goals to lend small
businesses and create jobs.
D Risk to the taxpayers of the capital access programs.
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D Adequacy of SBA oversight of its lending partners to en-
sure that federal taxpayers are properly protected.
D Capabilities of the SBA information technology to manage
the loan portfolio.
D Whether SBA rules, regulations, and guidance result in
transparent and reasoned decision making with respect to cap-
ital access programs.
D Assessment of credit-scoring algorithms as a replacement
for individual credit assessment by SBA and its lending part-
ners.
D The exercise of discretion by SBA to create pilot programs
and the risk they pose to the taxpayer and whether such au-
thority should be curtailed or eliminated.
D Whether SBA disaster loan program and its oversight en-
sures that small businesses are able to revive and rebuild com-
munities without unduly placing the federal taxpayer at risk.
D Review of the Paycheck Protection Program, the Economic
Injury Disaster Loan program, and other COVID–19 related
relief programs related to small business.
D Efficacy and duplication of federal capital access programs
offered by the Department of Agriculture to small business in
rural areas.
D Utilization by small businesses of export capital programs
at the Export-Import Bank and the Overseas Private Invest-
ment Corporation.
D Continued examination of the Small Business Lending
Fund and State Small Business Credit Initiative established by
Pub. L. No. 111–240, the Small Business Jobs Act of 2010, in
creating jobs and providing capital to small businesses.
D Impact of the Dodd-Frank Wall Street Reform and Con-
sumer Protection Act, Pub. L. No. 111–203, on small business
access to capital.
D Implementation of crowdfunding and other provisions of
the Jumpstart Our Business Startups Act, Pub. L. No. 112–
106.
D Review of proposed changes to capital access programs, to
include lifting the moratorium on licensing new Small Busi-
ness Lending Companies.
D Implementation of program clarifications made to encour-
age more cooperative and employee stock ownership plan lend-
ing through SBA programs established by the Main Street Em-
ployee Ownership Act of 2018, passed into law by the John S.
McCain National Defense Authorization Act for Fiscal Year
2019, Pub. L. No. 115–232.
In performing oversight, the Committee will focus on risky as-
pects of financial assistance programs including, but not limited to,
commercial real estate financing, premier certified lenders, partici-
pating security small business investment companies, small busi-
ness lending companies, express lenders, and loan programs uti-
lizing simplified lending applications.
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OVERSIGHT OF SBA AND OTHER FEDERAL ENTREPRENEURIAL
DEVELOPMENT PROGRAMS
The committee will conduct hearings and investigations into the
SBA programs that providing training and advice to small busi-
nesses that may include any or all of the following, as well as mat-
ters brought to the attention of the Committee subsequent to the
filing of this Report:
D Examining effectiveness of SBA entrepreneurial develop-
ment programs, including programs for veterans, in creating
jobs at startups and traditional firms.
D Determining whether certain programs should be elimi-
nated as a result of their ineffectiveness or duplications of pro-
grams provided by other agencies or by the private sector.
D Suggesting methods for enhancing coordination among fed-
eral agencies in providing assistance to entrepreneurs, includ-
ing, but not limited to, businesses located in rural areas and
those seeking to provide goods and services in the federal pro-
curement marketplace.
D Recommending improvements in assistance to small busi-
nesses in rural areas and low-income areas.
D Review SBA’s transition from EDMIS to Nexus, the new
data collection system for Entrepreneurial Development pro-
grams.
OVERSIGHT OF FEDERAL GOVERNMENT CONTRACTING MATTERS
The Committee will conduct hearings and investigations into the
federal procurement system that may include any or all of the fol-
lowing, as well as matters brought to the attention of the Com-
mittee subsequent to the filing of this Report:
D Whether fraud or other problems exist in the federal gov-
ernment contracting programs overseen by the SBA.
D Effectiveness of SBA contracting programs to increase par-
ticipation by small business in federal procurement.
D Review SBA certification systems to ensure timely and ac-
curate processing of applications and continue to monitor the
migration of the veteran certification program from the De-
partment of Veterans Affairs to the Small Business Adminis-
tration.
D Effectiveness of federal agency protection against contract
bundling and consolidation. The accuracy and utility of SBA
size standards and federal procurement databases.
D Operation and effectiveness of federal agency assistance
provided to small businesses interested in federal procurement,
including that provided by the SBA, Offices of Small and Dis-
advantaged Business Utilization and Procurement Technical
Assistance Centers.
D Development of federal acquisition policies and whether
small businesses have sufficiently effective voice in develop-
ment of such policies.
D Cost-effectiveness of outsourcing government work to pri-
vate enterprise rather than expanding the government to pro-
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D Implementation and efficacy of changes made in small
business federal procurement programs arising from the enact-
ment of the National Defense Authorization Acts.
D Examination of the Small Business Innovation Research
Program as modified by the National Defense Authorization
Act for FY2012, Pub. L. No. 112–81, including but not limited
to, increased efforts at commercializing federally funded tech-
nology.
D Review the implementation of Small Business Innovation
Research Program and Small Business Technology Transfer
programs as extended by Pub. L. No. 117–183.
In performing oversight, the Committee will focus its efforts on
uncovering abuse and misuse of the small business designation to
obtain federal government contracts.
OVERSIGHT OF SBA MANAGEMENT
The committee will conduct hearings and investigations into the
management of the SBA that may include any or all of the fol-
lowing, as well as matters brought to the attention of the Com-
mittee subsequent to the filing of this Report:
D The fulfillment of the mission of the SBA.
D Whether agency employees in the field are empowered to
assist small business.
D Whether field offices are appropriately staffed.
D Duplication of offices and missions at SBA headquarters.
D Effectiveness of personnel management.
D Capabilities of SBA employees to provide proper assistance
to small business owners.
D Agency personnel capabilities to properly manage loan de-
faults to maximize recovery of collateral.
D Whether SBA improperly utilizes statutory authority to
create untested initiatives and the procedures by which the
agency develops such programs.
D Policies and procedures to ensure fair and competitive con-
tracting opportunities for small business.
D Monitor the agency’s spending and efforts as it relates to
the pandemic response and fully account for Covid–19-provided
appropriations.
D Review the SBA’s technology and data systems in an effort
to modernize, strengthen, and improve interoperability be-
tween platforms.
D Assess the agency’s efforts to secure their networks and
data systems.
In carrying out this oversight the Committee will focus particu-
larly on streamlining and reorganizing of the agency’s operations to
provide maximum assistance to small business owners. Offices that
primarily provide assistance or advice to headquarters staff that do
not promote the interests of small businesses or protect the federal
government as a guarantor of loans will be recommended for cuts
or elimination.
OVERSIGHT OF FEDERAL REGULATORY AND PAPERWORK BURDENS
The Committee will conduct hearings and investigations into un-
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recordkeeping requirements affecting small businesses that may in-
clude any or all of the following, as well as matters brought to the
attention of the Committee subsequent to the filing of this Report:
D Consumer Financial Protection Bureau.
D Consumer Product Safety Commission Department of Agri-
culture.
D Department of Commerce.
D Department of Energy, particularly the Office of Energy
Efficiency and Renewable Energy.
D Department of Health and Human Services, particularly
the Centers for Medicare and Medicaid Services and the Food
and Drug Administration.
D Department of the Interior.
D Department of Homeland Security, particularly the Trans-
portation Security Administration.
D Department of Labor, particularly the Occupational Safety
and Health Administration and the Wage and Hour Division.
D Department of Transportation, particularly the Federal
Aviation Administration and the Federal Motor Carrier Safety
Administration.
D Department of the Treasury, particularly the Internal Rev-
enue Service.
D Environmental Protection Agency, particularly the office of
Environmental Justice and External Civil Rights.
D Federal Communications Commission.
D Federal Financial Institutions Examination Council and its
constituent agencies.
D Office of Management and Budget, particularly the Office
of Federal Procurement Policy.
D Securities and Exchange Commission.
The Committee will identify specific rules and regulations al-
ready issued or at the proposed rule stage to assess the impact on
small business. In addition, the Committee will examine agency
compliance with the Regulatory Flexibility Act, the Small Business
Regulatory Enforcement Fairness Act, and the Paperwork Reduc-
tion Act. The Committee will pay close attention to the effect that
regulations have on startups. Oversight of the regulatory process
also will, to the extent relevant, examine the work of the Office of
Informational and Regulatory Affairs and the Office of Manage-
ment and Budget. Special attention will be paid to the work per-
formed by the Chief Counsel for Advocacy at the Small Business
Administration to ensure that office is fulfilling its mission to advo-
cate vigorously on behalf of America’s small business owners in
regulatory matters at federal agencies. Finally, this oversight will
entail an examination of compliance by federal agencies with
amendments to Executive Order 12866 and memoranda on regu-
latory flexibility and regulatory compliance issued on January 18,
2011, as well as Executive Order 13272.
OVERSIGHT OF FEDERAL TAX POLICY
The Committee will conduct hearings and investigations into the
federal tax code, its impact on small business, and Internal Rev-
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of the following, as well as matters brought to the attention of the
Committee subsequent to the filing of this Report:
D Identification of tax code provisions and proposed rules
that hinder the ability of small businesses to create jobs and
recommendations for modifying those provisions to boost small
business job growth.
D Examination of the structure of the tax code in order to
simplify compliance for small businesses.
D Assessment of the recordkeeping and reporting require-
ments associated with tax compliance and suggestions for re-
ducing such burdens on small businesses.
D Evaluation of the estate tax provisions to determine
whether they inhibit the ability of successive generations to
maintain successful job creating enterprises.
D Efficiencies at the IRS that improve the interaction be-
tween the government and small business owners.
D Inefficiencies at the IRS that force small businesses to di-
vert capital from job growth to tax compliance.
OVERSIGHT OF TRADE AND INTELLECTUAL PROPERTY POLICY
The Committee will conduct hearings and investigations into
international trade and intellectual property policies of America
and its trading partners that may include any or all of the fol-
lowing, as well as matters brought to the attention of the Com-
mittee subsequent to the filing of this Report:
D Impact of free trade agreements to increase exports by
American small businesses.
D Oversight of SBA’s Office of International Trade and the
agency’s efforts to promote small business exports.
D Examination of the impact of illicit actions by foreign enti-
ties on small businesses and whether the federal government
is doing enough to protect their interests.
D Whether the federal government is doing enough to protect
the intellectual property rights of small businesses by foreign
competitors.
D The impact of federal intellectual property polices, particu-
larly patents and copyrights, to protect the innovation of Amer-
ican entrepreneurs.
D Efforts to increase exports by small businesses.
D Whether the United States Trade Representative takes po-
sition at the World Trade Organization that sufficient promote
the interests of American small business.
The focus of oversight will emphasize the best mechanisms to
promote and protect advanced technology innovations of small busi-
ness.
REDUCTIONS IN PROGRAMS AND SPENDING
In addition to the programs and policies already cited, the com-
mittee will examine any and all offices and programs that fall with-
in the Committee’s legislative jurisdiction to find areas that could
lead to reduction in the federal deficit. Some programs and offices
may include:
D Express Loan Program overseen by SBA.
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D Emerging Leaders initiative started by SBA.
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D Clusters Program initiated by SBA.
D Innovation and Impact Fund Pilot Programs operated by
the SBA.
D SBA Office of Policy.
D SBA Regional Administrators.
D Office of Advocacy Regional Advocates.
D SBA Deputy District Directors.
D SBA Office of International Trade.
D SBA’s Cybersecurity for Small Business Pilot Program.
In particular, the Committee will assess whether a reorganiza-
tion of offices to more critical functions at the SBA will provide a
more effective agency at helping small businesses to generate
growth.
PROGRAMMATIC DUPLICATION
The Committee notes that § 18 of the Small Business Act pro-
hibits duplication of any effort by the Small Business Administra-
tion if a program is already offered by another federal agency un-
less the Small Business Administration expressly authorizes the
duplication. The Committee will continue to monitor the Small
Business Administration for programs that duplicate the efforts of
other federal agencies.
LEGISLATIVE ACTIVITIES
Clause 1(d) of rule XI of the Rules of the House of Representa-
tives requires that each standing committee, no later than January
2 of each odd-numbered year, submit to the House a report on the
activities of that committee, including a separate section summa-
rizing the legislative activities of that committee.
A. BUSINESS MEETINGS
On Monday, February 6, 2023, the Committee held an organiza-
tional meeting to appoint Chairs and Ranking Members of the five
sub-committees and adopt Committee Rules.
On Tuesday, February 28, 2023, the Committee held a meeting
to consider the Committee’s Budget Views and Estimates for Fiscal
Year 2024.
On Tuesday, May 23, 2023, the Committee held a markup on
H.R. 1644, The Small Business 7(a) Loan Agent Transparency Act,
H.R. 1651, the 7(a) Loan Agent Oversight Act, H.R. 1541, the
Small Business Workforce Pipeline Act of 2023, H.R. 1730, the
Supporting Small Businesses and Career and Technical Education
Act of 2023, H.R. 1606, the Veteran Entrepreneurship Training Act
of 2023, and H.R. 3511, the Service-Disabled Veteran Opportunities
in Small Business Act.
On Tuesday, July 18, 2023, the Committee held a markup on
H.R. 4667, the RECLAIM Taxpayer Funds Act, H.R. 4666, a bill to
require the SBA OIG to submit quarterly reports on PPP/EIDL
fraud, H.R. 4480, the SERV Act, H.R. 3995, The Small Business
Regulatory Reduction Act, H.R. 4669, the DOE and SBA Research
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Report Oversight Accountability Act, and H.R. 4670, the Small
Business Contracting Transparency Act of 2023.
On Thursday, September 14, 2023, the Committee held a markup
on H.R. 5424, The Main Street Competes Act, H.R. 5265, The
Small Business Administration Rural Performance Report Act,
H.R. 5425, a bill to amend the Small Business Act to enhance the
Office of Rural Affairs, and for other purposes, H.R. 5426, a bill to
require the Administrator of the Small Business Administration to
provide a link to resources for submitting reports on suspected
fraud relating to certain COVID–19 loans, and H.R. 5427, a bill to
prohibit individuals convicted of defrauding the Government from
receiving any assistance from the Small Business Administration,
and for other purposes.
On Wednesday, January 31, 2024, the Committee held a markup
on H.R. 5450, The Enhancing Competition in Contracting Orders,
H.R. 6591, The Encouraging Success Act, H.R. 7102, The Native
American Entrepreneurial Opportunity Act, H.R. 7103, The Agency
Accountability Act, H.R. 6156, The Child Care Small Business In-
sight Act, H.R.7104, The National SBSC Advisory Board Improve-
ment Act, H.R. 7105, The WOSB Certification and Opportunity Ex-
pansion Act H.R. 7128, The WOSB Integrity Act of 2024, and H.R.
7129, The Put America on Commission Act of 2024.
On Wednesday, February 24, 2024, the Committee held a mark-
up to consider the Committee’s Budget Views and Estimates for
Fiscal Year 2025.
On Wednesday, April 17, 2024, the Committee held a markup on
H.R. 7984, The Rural Small Business Resilience Act, H.R. 5333,
The Investing in All of America Act of 2023, H.R. 8014, The Trans-
parency and Predictability in Small Business Opportunities Act,
H.R. 7987, The Plain Language in Contracting Act, H.R. 7988, The
Small Business Procurement and Utilization Reform (SPUR) Act of
2024, H.R. 7985, The Entrepreneurs with Disabilities Reporting
Act of 2024, and H.R. 7989, The ThinkDIFFERENTLY About Dis-
ability Employment Act.
On Tuesday, September 10, 2024, the Committee held a markup
on H.R. 8033, the Regulatory Transparency for Small Businesses
Act, H.R. 9031, the Assurance for Small Business Act of 2024, H.R.
9032, the Enhanced Regulatory Flexibility Assessment Act, H.R.
9030, the Regulatory Agenda Clarity Act, H.R. 9085, the Regu-
latory Review Improvement Act of 2024, H.R. 9033, the Let Ameri-
cans Businesses be On Record (LABOR) Act, and H.R. 7198, the
Prove It Act of 2024.
B. LEGISLATION
VETERAN ENTREPRENEURSHIP TRAINING ACT OF 2023
H.R. 1606
Summary
H.R. 1606, the ‘‘Veteran Entrepreneurship Training Act of 2023’’
is to codify the Boots to Business Program, and for other purposes.
This bill amends Section 32 of the Small Business Act by adding
a new subsection authorizing the Boots to Business Program for 5
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Forces and sets goals for the program, which include-in-depth
training for servicemembers interested in owning a business, and
development of tools to identify opportunities, draft business plans,
identify sources of capital, connect with local resources for small
businesses, and launch the business. This bill delineates the pro-
gram components including an in-person entrepreneurship pro-
gram.
It also gives the Small Business Administration (SBA) the au-
thority to collaborate with public and private entities to develop the
curricula, ensures Veterans Business Outreach Centers regularly
participate in the program, and to the reasonable maximum extent,
allows the participation of other resource partners as well.
The bill facilitates the sharing of course and outreach materials
with the Secretary of Defense for inclusion in DOD websites,
manuals, and other materials related to the Transition Assistance
Program (TAP) and the Secretary of Veterans Affairs for distribu-
tion and display at local VA facilities.
The bill requires the SBA Administrator to provide a report to
the Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House of Rep-
resentatives within 180 days after enactment of the legislation and
annually thereafter. The report will evaluate the performance and
effectiveness of the Boots to Business program.
Legislative History
H.R. 1606 was introduced on March 14, 2023, by Representative
Bradley Scott Schnieder (D–IL–10). The bill was reported by the
Small Business Committee on June 5, 2023, and passed the House
on June 20, 2023, under Suspension of the Rules, by a vote of 407
to 0 (Roll Call No. 279). H.R. 1606 was received in the Senate and
Read twice and referred to the Committee on Small Business and
Entrepreneurship on June 21, 2023.
SERVICE DISABLED VETERAN OPPORTUNITIES IN SMALL BUSINESS ACT
H.R. 3511
Summary
The purpose of H.R. 3511, the ‘‘Service-Disabled Veteran Oppor-
tunities in Small Business Act’’ is to require training on increasing
contract awards to small business concerns owned and controlled
by service-disabled veterans.
H.R. 3511 amends the Small Business Act to require the Small
Business Administration (SBA) to provide training to federal agen-
cies who fail to meet the contracting goal for Service-Disabled Vet-
eran Owned Small Businesses on how to increase awards to those
firms.
Legislative History
H.R. 3511 was introduced on May 18, 2023, by Representative
Nick LaLota (R–NY–10). The bill was reported by the Small Busi-
ness Committee on September 19, 2023, and passed the House on
February 28, 2024, under Suspension of the Rules, by voice vote.
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H.R. 3511 was received in the Senate and Read twice and referred
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to the Committee on Small Business and Entrepreneurship on Feb-
ruary 29, 2024.
SUCCESSFUL ENTREPRENEURSHIP FOR RESERVISTS AND VETERANS
ACT
H.R. 4480
Summary
H.R. 4480, the ‘‘Successful Entrepreneurship for Reservists
(SERV) Act,’’ is to commission a Government Accountability Office
report on veteran small business owners’ access to capital. It also
requires the Interagency Task Force on Veterans Small Business
Development to develop an outreach plan for programs veterans
can access as they return to civilian life, like Small Business Ad-
ministration’s (SBA) Boots to Business program. Finally, the bill
requires the task force to report annually to Congress on its ap-
pointments and outreach plan.
Legislative History
H.R. 4480 was introduced on July 6, 2023, by Representative
Sharice Davids (D–KS–3). The bill was reported by the Small Busi-
ness Committee on September 1, 2023, and passed the House on
November 28, 2023, under Suspension of the Rules, by a vote of
407 to 0 (Roll Call No. 279). H.R. 4480 was received in the Senate
and Read twice and referred to the Committee on Small Business
and Entrepreneurship on November 29, 2023.
TO REQUIRE THE INSPECTOR GENERAL OF THE SMALL BUSINESS AD-
MINISTRATION TO SUBMIT A QUARTERLY REPORT ON FRAUD RELAT-
ING TO CERTAIN COVID–19 LOANS
H.R. 4666
Summary
The purpose of H.R. 4666 is to require the Inspector General of
the Small Business Administration to submit a quarterly report to
Congress for two years which provides updated information con-
cerning the ongoing fraud investigations of Paycheck Protection
Program (PPP) loans and COVID–19 Economic Injury Disaster
Loans (EIDL).
Legislative History
H.R. 4666 was introduced by Rep. Aaron Bean (R–FL) and Rep.
Kweisi Mfume (D–MD) on July 17, 2023. The bill was reported by
the Small Business Committee on September 1, 2023, and passed
the House on November 30, 2023, under Suspension of the Rules,
by a voice vote. H.R. 4666 was received in the Senate and Read
twice and referred to the Committee on Small Business and Entre-
preneurship on December 4, 2023.
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RECLAIM TAXPAYER FUNDS ACT
H.R. 4667
Summary
The purpose of H.R. 4667, the ‘‘RECLAIM Taxpayer Funds Act,’’
is to require the Small Business Administration (SBA) to establish
processes and procedures to accept, process, and account for fraud-
ulent and unused Paycheck Protection Program (PPP) loan funds.
Legislative History
H.R. 4667 was introduced by Rep. Maria Salazar (R–FL) and
Rep. Morgan McGarvey (D–KY) on July 17, 2023. The bill was re-
ported by the Small Business Committee on September 1, 2023,
and passed the House on November 30, 2023, under Suspension of
the Rules, by a voice vote. H.R. 4667 was received in the Senate
and Read twice and referred to the Committee on Small Business
and Entrepreneurship on December 4, 2023.
POST IT ACT OF 2023
H.R. 4668
Summary
The purpose of H.R. 4668, the POST IT Act, is to amend the
Small Business Act to require the Small Business and Agriculture
Regulatory Enforcement Ombudsman to publish guidance docu-
ments for rules that have a significant impact on a substantial
number of small entities. The legislation will make it easier for
small businesses to better understand and comply with guidance
that may otherwise be difficult for them to find and understand.
Legislative History
H.R. 4668 was introduced by Rep. Maria Salazar (R–FL) and
Rep. Morgan McGarvey (D–KY) on July 17, 2023. The bill was re-
ported by the Small Business Committee on September 1, 2023,
and passed the House on November 28, 2023, under Suspension of
the Rules, by a voice vote. H.R. 4668 was received in the Senate
and Read twice and referred to the Committee on Small Business
and Entrepreneurship on November 29, 2023.
DOE AND SBA RESEARCH ACT
H.R. 4669
Summary
The purpose of H.R. 4669, the ‘‘DOE and SBA Research Act’’, is
to require the Department of Energy (DOE) and the Small Busi-
ness Administration (SBA) to enter into a Memorandum of Under-
standing (MOU) or other agreement to conduct cross cutting re-
search and execute joint mission requirements while increasing
small business opportunities.
This bill allows for SBA and the Department of Energy’s Na-
tional Laboratories to enter into a MOU or other agreement to
carry out research and development in support of the missions of
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the National Labs and SBA.
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Legislative History
H.R. 4669 was introduced by Rep. LaLota (R–NY) and Rep.
Thanedar (D–MI) on July 17, 2023. The bill was reported by the
Small Business Committee on September 1, 2023, and passed the
House on February 28, 2024, under Suspension of the Rules, by a
voice vote. H.R. 4669 was received in the Senate and Read twice
and referred to the Committee on Energy and Natural Resources
on February 29, 2024.
SMALL BUSINESS ACT SMALL BUSINESS ADMINISTRATION RURAL
PERFORMANCE REPORT ACT
H.R. 5265
Summary
The purpose of H.R. 5265, the ‘‘SBA Rural Performance Report
Act,’’ is to require SBA to produce two reports on activities related
to rural entrepreneurs. The first report is on a Memorandum of
Understanding (MOU) between the Small Business Association
(SBA) and the U.S. Department of Agriculture (USDA) on activities
jointly performed to conduct outreach to rural communities. The
second report is an addition to SBA’s annual budget justification to
include activities performed by SBA’s Office of Rural Affairs.
Legislative History
On August 25, 2023, Rep. Alford along with Representatives
Luetkemeyer, Ellzey, and Bean, introduced H.R. 5265. The bill was
reported by the Small Business Committee on September 26, 2023,
and passed the House on February 28, 2024, under Suspension of
the Rules, by a voice vote. H.R. 5265 was received in the Senate
and Read twice and referred to the Committee on Small Business
and Entrepreneurship on February 29, 2024.
TO REQUIRE THE ADMINISTRATOR OF THE SMALL BUSINESS ADMINIS-
TRATION TO PROVIDE A LINK TO RESOURCES FOR SUBMITTING RE-
PORTS ON SUSPECTED FRAUD RELATING TO CERTAIN COVID–19
LOANS
H.R. 5426
Summary
The purpose of H.R. 5426 is to require the Administrator of the
Small Business Administration (SBA) to provide a link on their
website to simplify the process for reporting suspected fraudulent
Economic Injury Disaster Loan (EIDL) and Paycheck Protection
Program (PPP) loans related to the COVID–19 pandemic.
Legislative History
On September 13, 2023, Rep. Van Duyne, along with Rep.
Landsman, introduced H.R. 5426. The bill was reported by the
Small Business Committee on September 26, 2023, and passed the
House on February 29, 2024, under Suspension of the Rules, by a
voice vote. H.R. 5265 was received in the Senate and Read twice
and referred to the Committee on Small Business and Entrepre-
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neurship on March 5, 2024.
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TO PROHIBIT INDIVIDUALS CONVICTED OF DEFRAUDING THE GOVERN-
MENT FROM RECEIVING ANY ASSISTANCE FROM THE SMALL BUSI-
NESS ADMINISTRATION, AND FOR OTHER PURPOSES
H.R. 5427
Summary
The purpose of H.R. 5427 is to prohibit anyone convicted of de-
frauding the government during the COVID–19 pandemic from
ever receiving a loan through the Small Business Administration.
Legislative History
On September 13, 2023, Rep. Williams and Rep. Mfume intro-
duced H.R. 5427. The bill was reported by the Small Business
Committee on September 26, 2023, and passed the House on No-
vember 28, 2023, under Suspension of the Rules, by a voice vote.
H.R. 5427 was received in the Senate and Read twice and referred
to the Committee on Small Business and Entrepreneurship on No-
vember 29, 2023.
ENCOURAGING SUCCESS ACT
H.R. 6591
Summary
The purpose of H.R. 6591, the ‘‘Encouraging Success Act,’’ is to
amend section 8(a)(6) of the Small Business Act to require the
Small Business Administration (SBA) to revise the asset threshold
for the 8(a) program at least every four years. The 8(a) program of-
fers disadvantaged small businesses assistance and allows these
businesses to compete for set-aside, sole-source contracts within the
federal government.
Legislative History
On December 5, 2023, Rep. Ellzey introduced H.R. 6591. The bill
was reported by the Small Business Committee on December 5,
2023, and passed the House on February 28, 2024, under Suspen-
sion of the Rules, by a voice vote. H.R. 6591 was received in the
Senate and Read twice and referred to the Committee on Small
Business and Entrepreneurship on February 29, 2024.
NATIVE AMERICAN ENTREPRENEURIAL OPPORTUNITY ACT
H.R. 7102
Summary
The purpose of H.R. 7102, the ‘‘Native American Entrepreneurial
Opportunity Act,’’ is to provide statutory codification for the Office
of Native American Affairs within the U.S. Small Business Admin-
istration (SBA). In doing so, Congress will be able to provide better
oversight into the activities and effectiveness of the office.
Legislative History
On January 29, 2024, Rep. Davids and Rep. Crane introduced
H.R. 7102. The bill was reported by the Small Business Committee
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on February 23, 2024 and passed the House on February 29, 2024
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under Suspension of the Rules, by a vote of 402–16 (Roll no. 57).
H.R. 7102 was received in the Senate. Read twice. Placed on Sen-
ate Legislative Calendar under General Orders. Calendar No. 337
on March 5, 2024.
AGENCY ACCOUNTABILITY ACT OF 2024
H.R. 7103
Summary
The purpose of H.R. 7103, the ‘‘Agency Accountability Act of
2024,’’ is to require agencies that fail to meet their small business
procurement goals to testify before Congress on their failures and
efforts to meet these goals.
Legislative History
On January 29, 2024, Rep. Stauber along with Representatives
McGarvey and LaLota introduced H.R. 7103. The bill was reported
by the Small Business Committee on February 23, 2024 and passed
the House on April 29, 2024 under Suspension of the Rules, by a
voice vote. H.R. 7102 was received in the Senate and Read twice
and referred to the Committee on Small Business and Entrepre-
neurship on April 30, 2024.
WOSB CERTIFICATION AND OPPORTUNITY EXPANSION ACT
H.R. 7105
Summary
The purpose of H.R. 7105, the ‘‘WOSB Certification and Oppor-
tunity Expansion Act,’’ is to exclude certain self-certified firms from
being counted in government-wide procurement goals.
Legislative History
On January 29, 2024, Rep. Velázquez and Rep. LaLota intro-
duced H.R. 7105. The bill was reported by the Small Business
Committee on February 20, 2024 and passed the House on Feb-
ruary 28, 2024 under Suspension of the Rules, by a voice vote. H.R.
7105 was received in the Senate and Read twice and referred to the
Committee on Small Business and Entrepreneurship on February
29, 2024.
THE WOSB INTEGRITY ACT OF 2024
H.R. 7128
Summary
The purpose of H.R. 7128, the ‘‘WOSB Integrity Act of 2024,’’ is
to ensure that the U.S. Small Business Administration (SBA) de-
velops processes and procedures to ensure that applicants in the
SBA Women Owned Small Business (WOSB) program are small
businesses.
Legislative History
On January 30, 2024, Rep. Maloy, along with Rep. Scholten, in-
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troduced H.R. 7128. The bill was reported by the Small Business
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Committee on February 13, 2024 and passed the House on Feb-
ruary 29, 2024 under Suspension of the Rules, by a voice vote. H.R.
7128 was received in the Senate and Read twice and referred to the
Committee on Small Business and Entrepreneurship on March 5,
2024.
RURAL SMALL BUSINESS RESILIENCE ACT
H.R. 7984
Summary
The purpose of H.R. 7984, the ‘‘Rural Small Business Resilience
Act,’’ is to require the Administrator of the Small Business Admin-
istration (SBA) to improve access to disaster assistance for individ-
uals in rural areas.
Legislative History
On April 15, 2024, Rep. Pappas and Rep. Bean introduced H.R.
7984. The bill was reported by the Small Business Committee on
June 4, 2024 and passed the House on June 11, 2024 under Sus-
pension of the Rules, by a voice vote. H.R. 7984 was received in the
Senate and Read twice and referred to the Committee on Small
Business and Entrepreneurship on June 12, 2024.
INVESTING IN ALL OF AMERICA ACT OF 2023
H.R. 5333
Summary
The purpose of H.R. 5333, the ‘‘Investing in All of America Act
of 2023,’’ is to improve the SBIC program at the SBA by encour-
aging private investment in overlooked areas of the country while
maintaining a zero-subsidy status. Specifically, the bill increases
the SBIC licensee commitment levels by a factor of inflation and
provides additional leverage to licensees when committing to invest
in smaller enterprises in rural areas or smaller enterprises devel-
oping technology that is critical to national defense.
Legislative History
On September 1, 2024, Rep. Meuser and Rep. Scholten intro-
duced H.R. 5333. The bill was reported by the Small Business
Committee on April 26, 2024 and passed the House on April 29,
2024 under Suspension of the Rules, by a voice vote. H.R. 5333 was
received in the Senate and Read twice and referred to the Com-
mittee on Small Business and Entrepreneurship on April 30, 2024.
TRANSPARENCY AND PREDICTABILITY IN SMALL BUSINESS
OPPORTUNITIES ACT
H.R. 8014
Summary
The purpose of H.R. 8014, the ‘‘Transparency and Predictability
in Small Business Opportunities Act,’’ is to require the Small Busi-
ness Administration (SBA) to create a rule on how agencies will
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submit information on contract solicitations that have been can-
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celled by an agency, and require agencies to refer small businesses
that prepared a bid for these cancelled solicitations to the Office of
Small and Disadvantaged Business Utilization (OSDBU) for assist-
ance in identifying similar contract opportunities.
Legislative History
On April 16, 2024, Rep. Mfume, along with Rep. Alford intro-
duced H.R. 8014. The bill was reported by the Small Business
Committee on June 4, 2024 and passed the House on June 11, 2024
under Suspension of the Rules, by a voice vote. H.R. 8014 was re-
ceived in the Senate and Read twice and referred to the Committee
on Small Business and Entrepreneurship on June 12, 2024.
PLAIN LANGUAGE IN CONTRACTING ACT
H.R. 7987
Summary
The purpose of H.R. 7987, the ‘‘Plain Language in Contracting
Act,’’ is to require federal agencies to write contract solicitations in
a clear and concise way, and to the extent practicable with the Fed-
eral plain language guidelines.
Legislative History
On April 15, 2024, Rep. LaLota along with Rep. Thanedar intro-
duced H.R. 7987. The bill was reported by the Small Business
Committee on April 26, 2024 and passed the House on April 29,
2024 under Suspension of the Rules, by a voice vote. H.R. 7987 was
received in the Senate and Read twice and referred to the Com-
mittee on Small Business and Entrepreneurship on April 30, 2024.
It was then Placed on Senate Legislative Calendar under General
Orders. Calendar No. 409 on May 23, 2024
SPUR ACT
H.R. 7988
Summary
The purpose of H.R. 7988, the ‘‘Small Business Procurement and
Utilization Reform (SPUR) Act,’’ is to amend the Small Business
Act to require the SBA to account for the number of new entrants
into the federal procurement space when it grades agencies for use
in its Scorecard. The Scorecard assigns agencies a letter grade to
determine how well they are meeting their small business con-
tracting goals.
Legislative History
On April 15, 2024, Rep. Stauber, along with Rep. Gluesenkamp
Perez, introduced H.R. 7988. The bill was reported by the Small
Business Committee on June 11, 2024 and passed the House on
June 11, 2024 under Suspension of the Rules, by a voice vote. H.R.
7988 was received in the Senate and Read twice and referred to the
Committee on Small Business and Entrepreneurship on June 12,
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2024.
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ENTREPRENEURS WITH DISABILITIES REPORTING ACT OF 2024
H.R. 7985
Summary
The purpose of H.R. 7985, the ‘‘Entrepreneurs with Disabilities
Reporting Act of 2024,’’ is to require the Administrator of the Small
Business Administration (SBA) to submit a report to Congress on
the challenges facing entrepreneurs with disabilities.
Legislative History
On April 15, 2024, Rep. McGarvey, along with Rep. Molinaro in-
troduced H.R. 7985. The bill was reported by the Small Business
Committee on April 26, 2024 and passed the House on April 29,
2024 under Suspension of the Rules, by a voice vote. H.R. 7985 was
received in the Senate and Read twice and referred to the Com-
mittee on Small Business and Entrepreneurship on April 30, 2024.
THINKDIFFERENTLY ABOUT DISABILITY EMPLOYMENT ACT
H.R. 7989
Summary
The purpose of H.R. 7989, the ‘‘ThinkDIFFERENTLY About Dis-
ability Employment Act,’’ is to provide for a memorandum of under-
standing between the Small Business Administration (SBA) and
the National Council on Disability (NCD) to increase employment
opportunities for people with disabilities.
Legislative History
On June 4, 2024, Rep. Molinaro and Rep. Pappas introduced
H.R. 7989. The bill was reported by the Small Business Committee
on June 4, 2024 and passed the House on June 11, 2024 under Sus-
pension of the Rules, by a voice vote. H.R. 7989 was received in the
Senate and Read twice and referred to the Committee on Small
Business and Entrepreneurship on June 12, 2024.
PROVE IT ACT OF 2024
H.R. 7198
Summary
H.R. 7198, the Prove It Act of 2024, introduced by Rep. Brad
Finstad (R–MN), amends the Regulatory Flexibility Act (RFA) to
require agencies to better account for the effects of regulations on
small businesses. The bill empowers small businesses to petition
the Small Business Administration’s Chief Counsel for Advocacy to
review an agency’s certification that a proposed regulation will not
have a significant economic impact on small businesses, requires
agencies to publish guidance documents interpreting regulations
that have a significant economic impact on small businesses, and
improves the periodic review process for regulations.
Legislative History
On February 1, 2024, Rep. Brad Finstad (R–MN) introduced H.R.
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7989. The bill was referred to the Committee on the Judiciary, and
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in addition to the Committee on Small Business on February 1,
2024. It passed the House on December 4, 2024 under Suspension
of the Rules, by a vote of 208–196 (Roll no. 489). H.R. 7198 was
received in the Senate on December 9, 2024.
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OVERSIGHT SUMMARY
Clause 1(d) of Rule XI of the Rules of the House of Representa-
tives requires each standing committee, not later than January 2
of each odd numbered year, to submit to the House a report on the
activities of that committee, including a separate section summa-
rizing the oversight activities of that committee. The report shall
also include a delineation of any hearings held pursuant to clauses
2(n), (o), or (p) of Rule XI related to waste, fraud and abuse in gov-
ernment programs.
PART A—FULL COMMITTEE HEARINGS
FIRST SESSION OF THE 118TH CONGRESS
FROM NOTHING TO SOMETHING: THE STORY OF THE AMERICAN DREAM
On February 28, 2023, the Committee on Small Business met for
a hearing titled, ‘‘From Nothing to Something: The Story of the
American Dream.’’ This hearing highlighted stories directly from
small business owners about how they built their businesses and
the federal policy challenges and concerns they face while trying to
grow their businesses.
Witnesses for the hearing were Ms. Zan Prince, Chairman of the
Board, First Bank Texas, Mr. Roy Heim, President, Heim Con-
struction Company, Mr. Drew Davis, Founder and Owner, Crip-
pling Hot Sauce, and Ms. Corrine Hendrickson, Owner, Corrine’s
Little Explorers.
At the hearing, Chairman Williams noted the new challenges fac-
ing small businesses in today’s burdensome regulatory environ-
ment. The Chairman and members directed questions to the four
small business owners to better understand the highs and lows
that come along with being a small business owner in today’s infla-
tionary economy. The panelists were commemorated for their hard
work to keep their small business up and running as they faced the
pandemic, rising interest rates, inflation, supply chain issues and
other economic challenges. Ms. Zan Prince, Chairman of the Board,
First Bank brought the perspective of a generational bank that has
faced additional challenges with today’s rising interest rates. Mr.
Roy Heim, President of Heim Construction Company, advocated for
more vocational training for our youth. Mr. Drew Davis, Founder
and Owner of Crippling Hot Sauce, shared his inspiring story of
how he faced adversity while founding his new small businesses as
a 17-year-old with a disability. Lastly, Ms. Corrine Hendrickson,
Owner, Corrine’s Little Explorers advocated for child care work-
ers—‘‘the workforce behind the workforce.’’
These entrepreneurs and innovators are the engines driving our
economy and we will continue to promote and protect them through
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pro-growth legislation and ensuring small business owners and
hard-working families are not continually subject to higher taxes,
crippling regulations, supply chain bottlenecks, and labor short-
ages. We are eager to enact policy solutions that will help pave a
path toward success for both now and the future.
SMALL BUSINESS PERSPECTIVES ON THE IMPACTS OF THE BIDEN
ADMINISTRATION’S WATERS OF THE UNITED STATES (WOTUS) RULE
On March 8, 2023, the Committee on Small Business met for a
hearing titled, ‘‘Small Business Perspectives on the Impacts of the
Biden Administration’s Waters of the United States (WOTUS)
Rule.’’ The purpose of this hearing is to examine the potential ef-
fects of this proposed rule on small businesses.
Witnesses for the hearing were Ms. Katherine R. English,
Owner, English Family Limited Partnership, Fort Myers, testifying
on behalf of The American Farm Bureau Federation. Mr. Frank
Murphy, Vice President/CFO/COO, Wynne Jackson Inc., Dallas
Texas, testifying on behalf of the National Association of Home
Builders and Mr. Rick Baumann, Founder, Murrells Inlet Seafood,
South Carolina testifying on behalf of the Board of Directors, South
Carolina Small Business Chamber of Commerce.
At the hearing, Chairman Williams discussed with the three wit-
nesses the challenges and uncertainty resulting from the EPA and
the Army Corps WOTUS rule. The Chairman and members di-
rected questions to a farmer, a developer, and a fisherman which
brought three unique perspectives to this hearing. Ms. Katherine
R. English, Owner of English Family Limited Partnership dis-
cussed how the rule increases uncertainty on her family farm. Rep-
resenting the agriculture industry Ms. English said she under-
stands the need for clean water, healthy soils and the health of en-
vironment but overtime the federal and state jurisdiction has be-
come blurred; creating uncertainty for landowners. Mr. Frank Mur-
phy, of Wynne Jackson Inc. explained how this regulation would
delay many develop projects and increase the cost on consumers.
Mr. Murphy focused on the regulation impacts on small entities;
specifically the costs these businesses would have to take in consid-
eration and how the extra costs will impact the longevity and sus-
tainability of these entities. Mr. Rick Baumann, Founder of
Murrells Inlet Seafood contributed by discussing the importance of
having clean waters and efforts to combat contamination in the
fishing industry. Due to vague definitions and a confusing web of
new regulations, it was clear business owners still lack a basic un-
derstanding of what exactly is considered ‘‘waters of the United
States’’ and subject to regulation under this new rule.
OVERSIGHT OF THE SMALL BUSINESS ADMINISTRATION
On March 23, 2023, at 2:00 PM EST, the Committee on Small
Business held a hearing titled ‘‘Oversight of the Small Business
Administration.’’ The purpose of this hearing is to thoroughly re-
view the activities of the Small Business Administration (SBA).
Witness for the hearing was the Honorable Isabella Casillas
Guzman, Administrator for the United States Small Business Ad-
ministration. Ms. Guzman was confirmed by the U.S. Senate on
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March 16, 2021, and is a member of the President’s Cabinet.
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At the hearing, Chairman Williams asked a series of oversight
questions to Administrator Guzman requesting a status update of
the current efforts of the SBA can provide aid while assisting and
protecting the interests of small businesses. Committee members
from both sides of the aisle asked Administrator Guzman an array
of probing questions including what conversations have taken place
with the president to advocate for small business, tracking fraud
in the PPP and EIDL programs, data regarding the duplicative
Community Navigators program, and proposed rules that would
add responsibility to the SBA beyond their capabilities. Adminis-
trator Guzman defended the SBA and made the case that the SBA
is operating efficiently and deserves more responsibility. However,
after the hearing Committee members were left with many ques-
tions that they wanted further clarity on from the Administrator.
The conservation carried out at today’s hearing shows that the
SBA continues to face procedural, oversight, spending, and fraud
challenges and requires serious oversight.
PAYING THEIR FAIR SHARE: HOW TAX HIKES CRUSH THE
COMPETITIVENESS OF SMALL BUSINESSES
On April 18, 2023, at 10:00 AM EST, The House Committee on
Small Business held a full committee hearing titled ‘‘Paying Their
Fair Share: How Tax Hikes Crush the Competitiveness of Small
Businesses’’ to examine how changes to the tax code could be bene-
ficial or detrimental to small businesses. The hearing was brought
to order by Chairman Roger Williams (R–TX).
The panel of witnesses for the hearing consisted of: Mr. Russell
Boening; the President of the Texas Farm Bureau, Mr. Warren
Hudak; the President of Hudak & Company, testifying on behalf of
the National Federation of Independent Business, Ms. Lynn
Mucenski-Keck; a tax professional at Withum, and Ms. Anne Zim-
merman; the Founder and Owner of Zimmerman & Co. CPAs Inc.
Following Member opening statements and witness introduc-
tions, the first series of questions were posited to examine the ben-
efits The Tax Cuts and Jobs Act (TCJA) has had on small busi-
nesses. Then witnesses were then asked to explain how President
Biden’s tax proposals would result in higher taxes and affect their
respective abilities to expand their operations. Lastly, witnesses
were questioned on the wide-range of risks posed by massively in-
creasing the IRS’s funding and agent capacity.
The witnesses contended that the TCJA has directly yielded to
an increase in investment, productivity gains, economic growth,
and higher standards of living. Furthermore, they highlighted
which components of the bill have promoted their highest fiscal re-
turns. Subsequently, testimonies were provided to debunk the
claim that the Biden tax proposals would not affect businesses
making less than $400,000. Lastly, the panel expressed their res-
ervations and concerns regarding the increase in IRS funding. This
hearing highlighted the stark differences in tax policies between
the Republicans and Democrats as well as iterating which political
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direction is favored by small businesses across America.
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TAKING ON MORE RISK: EXAMINING THE SBA’S CHANGE TO THE 7(A)
LENDING PROGRAM PART I
On May 10th, 2023, The House Committee on Small Business
held a full committee hearing titled ‘‘Taking on More Risk: Exam-
ining the SBA’S Change to the 7(a) Lending Program Part I’’ to
probe a major Small Business Administration (SBA) official on the
rule changes surrounding their flagship 7(a) lending program.
The hearing was chaired by Chairman Roger Williams (R–TX).
The witness summoned was Mr. Patrick Kelley, the Associate Ad-
ministrator for the Office of Capital Access (OCA) at the SBA.
Subsequent to opening remarks and an introduction of the wit-
ness, Chairman Williams initiated the discussion by questioning
Mr. Kelley on the SBA’s rule changes and their effectiveness. Mem-
bers then continued examining the necessity of these changes as
well as the discrepancies between the SBA and the White House’s
reporting on how these changes would affect the SBA’s lending
portfolio.
Next, the Members questioned Mr. Kelley on the SBA’s capa-
bility to combat fraud considering all these drastic changes. Fur-
thermore, Members expressed their concerns that these new rules
will attenuate the program’s integrity because they increase the
number of lenders to the program while simultaneously reducing
underwriting standards.
The disapproval of these rule changes was evident from Members
from both sides of the aisle, and that these modified rules to the
7(a) program will compromise the efficiency and effectiveness of the
SBA. Members expressed that under the SBA’s current direction,
fraud will perpetuate, small businesses will lack access to capital,
and the taxpayer will continue to bear the costs.
TAKING ON MORE RISK: EXAMINING THE SBA’S CHANGES TO THE 7(A)
LENDING PROGRAM PART II
On May 17th, 2023, The House Committee on Small Business
held a full committee hearing titled: ‘‘Taking on More Risk: Exam-
ining the SBA’s Changes to the 7(a) Lending Program Part II’’ to
discuss how the Small Business Administration’s (SBA) rules and
changes to their 7(a) lending program affect small businesses.
The panel of witnesses for the hearing included: Mr. Tony
Wilkinson, President and CEO of the National Association of Gov-
ernment Guaranteed Lenders (NAGGL), Mr. Ami Kassar, Founder
and CEO of Multifunding LLC, Ms. Alice Frazier, President and
CEO of Bank of Charles Town and Mr. Manuel Flores, President
& CEO of SomerCor; testifying on behalf of National Association of
Development Companies (NADCO).
After opening remarks, members began asking the witnesses
questions about how the new Small Business Administration (SBA)
rules in the 7(a) lending program will affect small businesses. The
witnesses expressed concern that the new rules—which were seem-
ingly pushed through the regulatory process—will negativity im-
pact small businesses. The witnesses expressed concern with the
tight timeline currently required to implement these changes as
they have had little time to read, review, and begin to implement
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the new regulations.
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In addition, Members flagged serious concerns about whether the
SBA is capable of handling these drastic changes to their flagship
lending program. While each rule is problematic individually, the
combination of the two is incredibly troublesome. These rules to-
gether will add more lenders to the program while simultaneously
reducing underwriting standards. The witnesses expressed concern
about the SBA’s ability to protect against fraud and conduct proper
oversight over the new lenders. Many Members advocated for the
SBA to pause implementation of these rule changes until there is
further clarity.
SALUTING SERVICE: SUPPORTING VETERAN OWNED SMALL BUSINESSES
On May 24th, 2023, The House Committee on Small Business
held a full committee hearing titled ‘‘Saluting Service: Supporting
Veteran Owned Small Businesses’’’ to analyze the dynamics that
affect veteran small business owners transitioning out of military
service and into the civilian workforce. This hearing also examined
how the federal government provides resources that facilitate this
transition.
The hearing was gaveled in by Chairman Roger Williams (R–TX).
The panel of witnesses included Lieutenant Commander Taylor
Burks—the President and General Manager of Rost Landscaping,
Petty Officer 2nd Class Michael Hyacinthe—the CEO and Founder
of Wimage, Sergeant 1st Class Grant Quezada—the Founder of the
Founding Fathers Collective, and E5 Staff Sergeant Liberty Wea-
ver—the Owner of Breakable Hearts LLC.
Pursuant opening remarks and witness introductions, the Mem-
bers began probing witnesses on the obstacles faced as
businessowners leaving the military. Each witness explained that
they have withstood barriers accessing capital, impeding labor
shortages, rising costs, and other supply chain disruptions. The
witnesses then proceeded to discuss the difficulties they encoun-
tered with the SBA and the uncooperativeness of their lenders. As
a result, the remainder of the hearing was about highlighting the
inefficacy of the SBA and what can be done at the federal level to
placate veteran owned small business concerns.
This hearing was key in exhibiting the incongruent relationship
between veteran owned small businesses and the federal resources
needed for business growth. Though there are federal initiatives
tailored for veteran business owners, the panel of witnesses clearly
expressed that these programs need improvement.
PRICES ON THE RISE: EXAMINING THE EFFECTS OF INFLATION ON
SMALL BUSINESSES
On June 7th, 2023, The Committee on Small Business held a full
committee hearing titled ‘‘Prices on the Rise: Examining the Effects
of Inflation on Small Businesses’’’ to analyze the factors perpet-
uating the current inflationary crises and the consequences as a re-
sult. This hearing was gaveled in by committee Chairman, Rep.
Roger Williams.
The panel of witnesses included Mr. Gordon Gray—the Vice
President for Economic Policy at the American Action Forum
(AAF), Mrs. Silvia Saldana-Lee—the Executive Vice President and
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Chief Lending Officer of First Community Bank, Mr. Dave Zittel—
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the President of Amos Zittel & Sons, Inc., and Mr. Josh Bevins—
the Chief Economist and Research Director for the Economic Policy
Institute (EPI).
Following Member opening remarks and witness introductions,
the panel was questioned on the recovery process their respective
industries have endured since the Pandemic. The witnesses ex-
plained that the current Biden administration has hindered eco-
nomic growth by fruitless regulations and negligent oversight. The
panel then elaborated on how the crippling increase in operational
costs and sharp interest rate hikes have not sufficiently covered ex-
penses. Lastly, the panel expressed how their respective sectors
have all seen a plateau in the access to capital.
This hearing highlighted the need for a revamped legislative
strategy in order to effectively placate the concerns of small busi-
ness owners. As attested to, the current administration has a prov-
en track record of reckless spending and stimulus policies that
have been averse to small businesses.
ASSISTING ENTREPRENEURS: EXAMINING PRIVATE AND PUBLIC
RESOURCES HELPING SMALL BUSINESSES
On June 13th, 2023, the House Committee on Small Business
held a full committee hearing titled ‘‘Assisting Entrepreneurs: Ex-
amining Private and Public Resources Helping Small Businesses’’’
to discuss the availability and efficacy of certain public and private
resources centered at assisting entrepreneurs. The hearing was
gaveled in by Chairman Roger Williams (R–TX).
The witnesses were Mr. Chris Pilkerton—the Chief Legal Officer
of Accion Opportunity Fund, Mr. Reginald Hodges—the Owner and
President of Training Center of Central Texas, Mr. Rich Palmer—
the Managing Director at Launchpad Venture Group and Ms.
Sonya Smith—the State Director of the New York Small Business
Development Center.
Pursuant Member opening remarks and witness introductions,
the panel of witnesses were asked to shed light on how existing pri-
vate and public resources have allowed entrepreneurship to blos-
som in their respective domains. Witnesses were then probed on
the effectiveness of the federal government and whether additional
or a redirection in spending is needed to continue upward trends.
Lastly, Members asked about the challenges the entrepreneurs face
as they grow their small businesses.
This hearing was key in understanding which public and private
resources can be valuable as entrepreneurs look to start or grow
their business. Additionally, it was insightful to hear that although
federal resources are abundant, their effectiveness must always be
examined that ensures they are not duplicative of private sector
initiatives.
REVIEWING THE SBA’S OFFICE OF ADVOCACY REPORT ON THE
REGULATORY FLEXIBILITY ACT
On June 22nd, 2023, the House Committee on Small Business
held a full committee hearing titled ‘‘Reviewing the SBA’s Office of
Advocacy Report on the Regulatory Flexibility Act’’ to examine the
Small Business Administration’s (SBA) Office of Advocacy’s
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discussing oversight of federal agency rulemaking. Additionally,
this hearing shed light on the challenges the office still faces and
the prospective changes that need to be made.
The hearing was gaveled in by Rep. Blaine Luetkemeyer (R–
MO). The witness invited to testify was Mr. Major L. Clark, III, the
Deputy Chief Counsel for Advocacy, from the Small Business Ad-
ministration’s (SBA) Office of Advocacy.
After Member opening remarks and a witness introduction,
Members began questioning Mr. Clark on the role the Office of Ad-
vocacy assumes when insulating small businesses from federal reg-
ulation. Next, Members inquired about whether the Office of
Advocacy’s lack of a ‘‘Chief Counsel’’ has attenuated the office’s ef-
fectiveness and protocol adherence. Lastly. Mr. Clark was asked on
the Regulatory Flexibility Act (RFA) and the plan of action the Of-
fice of Advocacy considers when certifying proposed rules.
This hearing highlighted the need to continue strengthening
oversight on the SBA and all its auxiliary offices, such as The Of-
fice of Advocacy. Oftentimes, small business owners nationwide are
challenged with the comprehension and compliance of fluctuating
federal regulations. Thus, it is critical for the Office of Advocacy to
fill their ‘‘Chief Counsel’’ vacancy and continue to provide the re-
sources needed to empower small businesses.
STOLEN TAXPAYER FUNDS: REVIEWING THE SBA AND OIG REPORTS OF
FRAUD IN PANDEMIC LENDING PROGRAMS
On July 13, 2023, the House Committee on Small Business held
a hearing titled ‘‘Stolen Taxpayer Funds: Reviewing the SBA and
OIG Reports of Fraud in Pandemic Lending Programs.’’ to further
discuss the issues surrounding the Small Business Administration
(SBA) and the discrepancies between Inspector General Ware and
Administrator Guzman’s reporting on the outstanding fraudulent
funds the SBA has struggled to recuperate. The hearing was
brought to order by Chairman Roger Williams (R–TX).
The witness for the hearing was the Honorable Hannibal ‘‘Mike’’
Ware, the Inspector General of the SBA. Mr. Ware was sworn in
as Inspector General on May 24, 2018, following confirmation by
the U.S. Senate. SBA’s Administrator, Isabella Guzman was also
invited to attend today’s hearing, however She declined.
Following opening statements from the witness and Members,
Inspector General Ware began addressing the focal concern of the
hearing—the disparity of billions of dollars between his office’s in-
vestigative reports and the ones published by Administrator
Guzman’s office. The majority of the Member questions were posed
to extrapolate why the discrepancy between the two existed and
what is being done to mitigate the staggering difference.
This hearing highlighted the need to heighten the oversight sur-
rounding the SBA’s diurnal functioning. With the reports published
by the two offices containing an imbalance of $100 billion dollars,
it is critical for Congress to tighten the release of prospective fraud-
ulent payments and recuperate as many outstanding loans as pos-
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RURAL ENTREPRENEURSHIP: EXAMINING THE CHALLENGES AND STATE
OF RURAL SMALL BUSINESSES
On July 26, 2023, the House Committee on Small Business held
a full committee hearing titled ‘‘Rural Entrepreneurship: Exam-
ining the Challenges and State of Rural Small Businesses’’ to ana-
lyze the obstacles rural entrepreneurs face in their respective pro-
fessional fields. Additionally, this hearing also examined how the
federal government’s policies have actually impeded commercial
growth and considered prospective policy avenues moving forward.
The hearing was gaveled in by Chairman Roger Williams (R–TX).
The panel of witnesses included Ms. Jennifer Cassaday—the
Owner of Byrd’s Pecan Delights, Mr. Kendall Culp—the Vice Presi-
dent of the Indiana Farm Bureau, Mr. Matt Splitter—the Owner
of Splitter Farms, and Mr. Josh Phillips—the Owner of Spawn Fly
Fish.
Pursuant Member opening remarks and witness introductions,
each witness provided a testimony in which they all shared similar
dissatisfactions with inflation, taxes, regulatory burdens, and other
workforce challenges. Members then asked witnesses about how
business operations have managed to revitalize post-COVID and
which federal policy or program has facilitated access to capital the
most. To close the hearing, witnesses provided Members with policy
recommendations and propositions to expand certain federal pro-
grams.
This hearing highlighted the need to further the conversation
with a crucial sector of business owners—rural entrepreneurs.
Much like witnesses from previous hearings, there is a core theme
of frustration and disappointment directed at the federal govern-
ment vis-à-vis the Small Business Administration (SBA) and simi-
lar agencies. By providing irreplaceable goods and services, rural
businessowners play a fundamental role in the economic prosperity
of this country. This hearing proved that the Biden Administration
and their policies are hurting small businesses, and much more
should be done to placate their concerns.
ATHLETES AND INNOVATORS: ANALYZING NIL’S IMPACT ON
ENTREPRENEURIAL COLLEGIATE ATHLETES
On September 20, 2023, the House Committee on Small Business
held a full committee hearing titled ‘‘Athletes and Innovators: Ana-
lyzing NIL’s Impact on Entrepreneurial Collegiate Athletes’’ to
delve into all the ramifications brought forth by the National Colle-
giate Athletics Association’s (NCAA) decision to alter their Name,
Image, and Likeness (NIL) policy. The hearing was brought to
order by Chairman Roger Williams (R–TX).
The panel of witnesses included Mr. Eugene (Gene) Smith—Sen-
ior Vice President & Wolfe Foundation Endowed Athletic Director
at The Ohio State University (OSU), Mr. Jeremiah Donati—the Di-
rector of Intercollegiate Athletics at Texas Christian University
(TCU), Mr. Gino Torretta—a Heisman Trophy Winner, 2-Time Na-
tional Champion & Member of the College Football Hall of Fame,
and lastly, Ms. Madeline ‘‘Maddy’’ Salamone—an attorney and Vice
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President of the College Football Players Association (CFPBA).
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Pursuant Member opening remarks and witness introductions,
discussion began on how the NIL expansion has propagated stu-
dents to be more entrepreneurial by considering themselves as
small business entities. Each respective witness explained that the
NIL change in policy has provided more benefits than disadvan-
tages, however student-athletes are faced with blurred systemic
regulations and bad actors.
Since individual states have begun passing their own NIL laws,
student athletes are immersed within a regulatory patchwork of
conflicting NCAA, state, conference, and university rules. Addition-
ally, changes to NIL protocols have altered the redistribution of
capital in the college ecosystem thus impacting the sports that gen-
erate lower revenues and the issuance of scholarships.
The purpose of this hearing was to call attention to NIL expan-
sion that has revolutionized college athletics. Though the witnesses
enumerated many positives with the new policy, the lack of a con-
crete system with demarcated boundaries will ultimately prove to
be detrimental for college athletics.
ACTION THROUGH INNOVATION: PRIVATE SECTOR SOLUTIONS TO
RECOUPING STOLEN PANDEMIC LOAN FUNDS
On September 27, 2023, the House Committee on Small Business
held a hearing titled ‘‘Action Through Innovation: Private Sector
Solutions to Recouping Stolen Pandemic Loan Funds’’ to consider
solutions provided by private sector representatives to combat the
systemic fraud at the Small Business Administration (SBA) and to
retrieve the stolen pandemic-era loans. This hearing was brought
to order by committee Chairman Roger Williams (R–TX).
The panel of witnesses included Mr. Richard C. Breeden—the
Chairman of Breeden Capital Management, LLC, Mr. JT Taylor—
the Senior Director of Fraud Investigations & Operations at ID.me,
Mr. Dean Zerbe—the National Managing Director at alliantgroup,
and Ms. Linda Miller—the CEO of Audient Group, LLC.
Pursuant Member opening remarks and witness introductions,
discussion ensued on the current status of the SBA reported fraud
levels as well as the recovery efforts that have been in effect. Due
to a significant lack in progress, each respective witnesses demar-
cated a plan designed to supplement and amplify current efforts.
Ideas such as a whistleblower program, heightened private-sector
cooperation, and alterations to standard banking procedures were
all brought forward.
This hearing emphasized the need to broaden considerations
when thwarting and recouping the fraudulent theft of taxpayer dol-
lars. The witnesses have all divulged that current legislative be-
havior coupled with the lethargic oversight of the SBA will only
yield to more recurrent fraud—the need to coalesce with the pri-
vate sector is at an all-time high.
ENERGY INDEPENDENCE: HOW BURDENSOME REGULATIONS ARE
CRUSHING SMALL OFFSHORE ENERGY PRODUCERS
On September 28, 2023, the House Committee on Small Busi-
ness, Subcommittee on Rural Development, Energy, and Supply
Chains, held a hearing titled, ‘‘Energy Independence: How Burden-
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some Regulations are Crushing Small Offshore Energy Producers’’
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to analyze the possible impact US Bureau of Ocean Energy Man-
agement’s (BOEM) recent proposed rule changes will have on the
United States’ energy production, particularly small energy enti-
ties. This hearing was gaveled by Subcommittee Chairman Wesley
Hunt (TX–38).
The panel of witnesses included Mr. Mike Minarovic—The Chief
Executive Officer of Arena Energy, LLC, Mr. Paul Danos—The
Chairman of the Board for the National Ocean Industries Associa-
tion, Mr. Alex Epstein—The President, of The Center for Industrial
Progress, and Ms. Kathleen Nisbet Moncy—The Chief Operating
Officer of Goose Point Oyster.
Following Member opening remarks and the introduction of wit-
nesses, each witness shared a testimony in which they explained
how increased regulations proposed by the US Bureau of Ocean
Energy Management’s (BOEM) will impact their respective fields.
The panel asked questions regarding, impacts of the proposed regu-
lations on small businesses throughout different industries, energy/
oil prices, and benefits of U.S. energy production. However, the
crux of the discussion was regarding the debilitating regulations
that are being proposed by impact US Bureau of Ocean Energy
Management’s (BOEM).
This hearing was instrumental in highlighting the proposed reg-
ulations from BOEM and NOAA will increase the burdens on small
oil and gas operator and will reduce U.S. energy production overall.
Additionally, this hearing increased the understanding that small
businesses will bear a disproportionate amount of the proposed reg-
ulatory burden.
BURDENSOME REGULATIONS: EXAMINING THE EFFECTS OF DOL
RULEMAKING ON AMERICA’S JOB CREATORS
On October 19, 2023, the Committee on Small Business held a
hearing titled ‘‘Burdensome Regulations: Examining the Effects of
DOL Rulemaking on America’s Job Creators’’ to analyze the how
the Department of Labor’s (DOL) perpetuates the regulatory bur-
dens and economic headwinds that stymie growth for small busi-
nesses. The hearing was brought to order by committee Chairman
Roger Williams (R–TX).
The panel of witnesses included Mr. Paul J. Ray—an economic
policy director at The Heritage Foundation, Mr. Mario Burgos—the
Chief Strategy Officer at Prairie Band, LLC., Mr. Ric Suzio—the
Vice President of The Suzio York Hill Companies, and Mr. Frank
Knapp Jr.—the President & CEO of the South Carolina Small
Business Chamber of Commerce.
Pursuant to Member opening remarks and witness introductions,
discussion began on the issues surrounding small business owners
of today. The panel listed high inflation, increased production costs,
and labor shortages as some of the main deterrents affecting their
financial prosperity. However, the crux of the discussion was re-
garding the debilitating regulations that are constantly imposed by
the Department of Labor.
These implemented rules have only added compliance costs, cum-
bersome paperwork, and unnecessary guardrails. It was the over-
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whelming sentiment amongst the witnesses that regulations can be
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positive in theory—however they have repeatedly proved to be inef-
fective and harmful to small businesses nationwide.
This hearing was instrumental in highlighting the need to re-
evaluate the current regulations in place and to reconsider future
rules and regulations. It was evident, from witnesses on either side
of the political spectrum, that the current system in effect is at-
tenuating the nation’s economic growth. The Department of Labor
is in need of a revitalization that fully considers and prioritizes the
economic success of Main Street America.
BURDENSOME REGULATIONS: EXAMINING THE EFFECTS OF
DEPARTMENT OF ENERGY REGULATIONS ON AMERICA’S JOB CREATORS
On November 8, 2023, the House Committee on Small Business
held a full committee hearing titled, ‘‘Burdensome Regulations: Ex-
amining the Effects of Department of Energy Regulations on Amer-
ica’s Job Creators’’ to analyze the consequences of overly complex
proposed regulatory actions on small businesses and American con-
sumers by the Department of Energy (DOE). This hearing was gav-
eled in by Chairman Roger Williams (R–TX).
The panel of witnesses included Mr. Marlo Lewis—a Senior Fel-
low at the Competitive Enterprise Institute, Ms. Alicia Huey—the
President of AGH Homes, Inc. and the Chairman of the Board for
the National Association of Home Builders, Mr. Jeff Bauman—the
Director of Engineering for National Refrigeration, and Professor
Emily Hammond—a Professor of Law, at George Washington Uni-
versity.
Following Member opening remarks and the introduction of wit-
nesses, discussion began on how the proposed regulations can be
positive in theory but, have proved to be ineffective and harmful
to small businesses nationwide. Members also asked witnesses
about how increased regulations proposed by the Department of
Energy will impact their respective fields. After the witnesses pro-
vided Members with prospective legislative considerations, the
hearing was brought to close.
This hearing was instrumental in highlighting the need to recon-
sider prospective regulations from The Department of Energy
(DOE). As attested throughout the hearing, the current regulatory
climate has only increased burdens on small business owners and
American consumers. Additionally, this hearing has revealed that
The Department of Energy (DOE) needs to reevaluate their com-
mitment to the success of Main Street America. Congress must for-
tify their ability to stymie detrimental policies from the Biden Ad-
ministration.
OVERSIGHT OF THE SBA’S OFFICE OF ENTREPRENEURIAL
DEVELOPMENT
On November 14, 2023, the House Committee on Small Business
held a full committee hearing titled, ‘‘Oversight of the SBA’s Office
of Entrepreneurial Development’’ to investigate the effectiveness
and efficiency of the Small Business Associations (SBA) entrepre-
neurial development programs. This hearing was gaveled in by
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Congresswoman Beth Van Duyne (R–TX).
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The sole witness for this hearing was Mr. Mark Madrid—the As-
sociate Administrator for the Office of Entrepreneurial Develop-
ment (OED) at the U.S. Small Business Administration (SBA).
Following member opening remarks and introduction of the wit-
ness, discussion began regarding the challenges small business
owners face today and what SBA programs are doing to alleviate
these burdens. The witness was probed on the merits of duplicative
programs, the potential release of business owners’ personal infor-
mation through OED programs, and the lack of SBA employees
working physically in the office. The crux of the discussion was to
ensure that the Small Business Associations (SBA) Resource Part-
ners continue to provide services that will assist small businesses
while also protecting taxpayer dollars.
This hearing was instrumental in highlighting the need to main-
tain oversight of governmental agencies. The SBA has a track
record of heedlessly spending tax dollars and the programs they
champion, especially offered by the Office of Entrepreneurial Devel-
opment, are continuing downwardly. The SBA’s Office of Entrepre-
neurial Development needs a revitalization that fully considers and
prioritizes the economic success of Main Street America.
HOUSE COMMITTEE ON SMALL BUSINESS: MEMBER DAY
On November 30, 2023, at 10:00 AM ET, The House Committee
on Small Business held a Full Committee hearing titled, ‘‘House
Committee on Small Business: Member Day’’ to allow Members
who do not sit on the Committee to discuss critical issues facing
small businesses throughout America. This hearing was gaveled in
by Chairman Roger Williams (R–TX–25).
The panel of Members included The Honorable Jill Tokuda (D–
HI–2), The Honorable Ed Case (D–HI–1), The Honorable Jen
Kiggans (R–VA–2), and The Honorable Blake Moore (R–UT–1).
Following Committee Member opening remarks each Representa-
tive was given five minutes for their testimony. Congresswoman
Jill Tokuda spoke about the devastating August 8th, 2023, Maui
wildfires impacts on small businesses throughout Hawaii. She then
urged the committee to support her bill, Micro-enterprise Assist-
ance and Urgent Investment for Supporting Trade, Recovery Oper-
ations, and Neighborhood Growth or the ‘‘MAUI STRONG’’ Act.
Next Congressman Ed Case reiterated the economic issues Hawaii
is facing after the recent natural disaster. He then discussed his
soon to be introduced bill, the HEAL Maui Act and asked for com-
mittee collaboration. The Honorable Jen Kiggans spoke next about
her Investing in VETS Act, which seeks to help make veteran-
owned small businesses more competitive. Congressman Blake
Moore gave the final testimony in which he spoke on the bipartisan
legislation that he is a part of, H.R. 3383, the Employee Equity In-
vestment Act of 2023. This Act aims to provide benefits to local
economies by expanding the opportunity for employee-owned busi-
nesses.
This hearing highlighted the importance of hearing the stories
from constituents of Members who do not sit on the Committee.
The Testimonies that were shared can help bring new insight and
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prospective to the Committee going into the New Year.
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A YEAR IN REVIEW: THE STATE OF SMALL BUSINESS IN AMERICA
On December 12, 2023, at 10:00 AM ET, The House Committee
on Small Business held a full committee hearing titled, ‘‘A Year in
Review: The State of Small Business in America’’ to hear from
small business owners from across America about the impacts 2023
has had on their businesses. This hearing was gaveled in by Chair-
man Roger Williams (R–TX).
The panel of witnesses included Mr. James (Randy) R Thomp-
son—the President of Pal-Con, Ltd, Mr. Daniel A Grech—the
Founder and CEO of BizHack Academy, Mr. Nicholas Boyle—the
CEO of Northern Keystone Towing and Recovery, and Dr. Tammira
Lucas—the CEO of The Cube Cowork and an Assistant Professor
at Coppin State University.
Following Member opening remarks and introduction of the wit-
nesses, each witness shared a testimony about the struggles they
have faced with their respective businesses this past year. Discus-
sion then began with the obstacles for entrepreneurs in 2023 in-
cluding inflation, high interest rates, and regulatory burdens. Wit-
nesses were questioned about the state of the economy and the
labor shortages throughout the country.
This hearing was instrumental in highlighting the importance of
hearing entrepreneurs’ experiences. Small businesses are the
heartbeat of our communities, and it is imperative that Congress
prioritizes their concerns.
SECOND SESSION OF THE 118TH CONGRESS
CRIME ON THE RISE: HOW LAWLESSNESS IS IMPACTING MAIN STREET
AMERICA
On January 11, 2024, the House Committee on Small Business
held a full committee hearing titled ‘‘Crime on the Rise: How Law-
lessness is Impacting Main Street America’’ to discuss how the in-
crease of crime has affected an array of small businesses nation-
wide. This hearing aimed to amplify the voices of small business
owners who refute the claim that violent crime is decreasing. Addi-
tionally, the hearing highlighted the need to quell the ever-chang-
ing police policies since they are proving to be futile. The hearing
was gaveled in by Chairman Roger Williams (TX).
The panel of witnesses included Ms. Liora Rez—the Executive
Director of Stop Antisemitism, Mr. Gerald ‘‘Jerry’’ Scott—the Presi-
dent and CEO of Elmer’s Restaurants, Inc., Chief Reuben J.
Roach—the Chief of Police at the City of Norwich (NY) Police De-
partment, and Dr. John Roman—a Senior Fellow from the Univer-
sity of Chicago.
Following Member opening remarks and the introduction of wit-
nesses, the discussion on how crime has affected each respective
witness and their industry ensued. Ms. Rez’s testimony began by
shedding light on the unprecedented rise of antisemitism Jewish
businesses and business owners have faced following the Hamas
attacks on October 7th. Mr. Scott’s remarks were surrounding the
inability to reinvest and grow businesses due to a ballooning crimi-
nal presence in the numerous communities his franchises are lo-
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cated in. The remaining testimonies were concentrated on the
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incongruency between the reported criminal statistics and actual
number of crimes occurred.
This hearing was a call to action to limit changes to sensible po-
lice policies and to heighten awareness surrounding antisemitism.
Small business owners are faced with a growing list of challenges—
the rise of violence and prejudiced based crimes must be mitigated.
UNLEASHING MAIN STREET’S POTENTIAL: EXAMINING AVENUES TO
CAPITAL ACCESS
On Thursday, January 18, 2024, the Committee on Small Busi-
ness held a hearing titled ‘‘Unleashing Main Street’s Potential: Ex-
amining Avenues to Capital Access’’ to broaden the conversation on
which challenges continue plaguing small business owners nation-
wide. This hearing was gaveled in by committee chair, Rep. Roger
Williams (R–TX).
The panel of witnesses included Mr. Kevin O’Leary—the Chair-
man of O’Leary Ventures, Ms. Jill Bommarito—the Founder and
CEO of Ethel’s Baking Company, Mr. Douglas Holtz-Eakin—the
President of the American Action Forum (AAF), and lastly, Mr.
Everett Sands—the Founder and CEO of Lendistry.
Pursuant member opening remarks and witness testimonies, the
panel began expounding on how access to capital has perpetuated
economic headwinds for small businesses of different stature and
industry. Additionally, each of the witness, regardless of political
affiliation, all admitted that the ballooning interest rates have sty-
mied their abilities to receive additional loans.
The next segment of the hearing revolved around banking regu-
lations that have forced regional and community banks to severely
tighten their lending standards. This is in part due to the growing
proposal to switch American banking standards to match those uti-
lized outside of the US. The proposed rulemaking would replace
U.S. banks’ current capital framework with an international stand-
ard issued by the Basel Committee on Banking Supervision, known
as Basel III.
This hearing was an important reiteration on how the Biden Ad-
ministration continues to propose rules and regulations that
marginalize small businesses. The current regulatory environment
has, and will only continue hurting Main Street America.
UNDER THE MICROSCOPE: REVIEWING THE SBA’S SMALL BUSINESS SIZE
STANDARDS
On February 6, 2024, at 10:00, the House Committee on Small
Business held a full committee hearing titled, ‘‘Under the Micro-
scope: Reviewing the SBA’s Small Business Size Standards’’ to ana-
lyze the consequences of The Small Business Administrations
(SBA) size standards on small business contractors. This hearing
was gaveled in by Chairman Roger Williams (R–TX).
The panel of witnesses included Mr. Jay V. Lambke—The Presi-
dent of Government Acquisitions Inc., Mr. Brad Moore—the CEO
of Sterling Computers, Mr. Andrew V. Christ—Chief Operating Of-
ficer of Compass Constructors, and Ms. Erin Allen—President of
Contemporaries Inc.
Following Member opening remarks and the introduction of wit-
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nesses, discussion began on how the proposed small business size
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standards offered by SBA will negatively impact small business
owners. The panel of witnesses explained how the metrics placed
by the SBA to determine size standards are outdated and need re-
development. Members then continued probing witnesses about the
impacts of losing the status of ‘‘small business’’. The hearing closed
with conversation on proposed changes and considerations the SBA
should pursue.
This hearing was instrumental in highlighting the need to recon-
sider prospective size standards from The Small Business Adminis-
tration (SBA). As attested throughout the hearing, these changes
would only increase burdens on Main Street America. It was evi-
dent, from witnesses on either side of the political spectrum, that
these standards could jeopardize a company’s business model and
success. The Small Business Administration (SBA) needs to re-
evaluate the small business size standards to allow continued suc-
cess for American entrepreneurs.
BURDENSOME REGULATIONS: EXAMINING THE IMPACT OF EPA
REGULATIONS ON MAIN STREET
On Wednesday, February 14, 2024, the Committee on Small
Business held a hearing titled ‘‘Burdensome Regulations: Exam-
ining the Impact of EPA Regulations on Main Street’’ to explore
how the Environmental Protection Agency (EPA) continues their
trend of burdensome regulations and economic pressures on small
businesses and consumers alike. This hearing was gaveled in by
committee chair, Rep. Roger Williams (TX).
The panel of witnesses included Mr. Brandon Ferris—the Vice
President of Domestic Economic Policy at the National Association
of Manufacturers (NAM), Ms. Cye Cooper Wagner—the Executive
Vice President of Cooper Oil & Gas, Dr. Lishan Aklog—the Chair-
man & CEO of PAVmed Inc., and lastly, Mr. Michael Green—the
Director of Climate and Energy Policy at the American Sustainable
Business Network.
After Members opened with remarks, the witnesses provide testi-
mony on how their business operations have been plagued with
challenges such as persistent inflation and burgeoning interest
rates. Additionally, the Biden Administration is responsible for con-
straining small businesses with never-ending regulations—with the
main focus being the EPA.
This hearing was crucial because it is a continuation of one of
the committee’s main priorities—dissecting the unwarranted over-
regulation conducted by federal agencies. The EPA, amongst many
others must be held accountable.
REDUCING MISMANAGEMENT: GAO RECOMMENDATIONS FOR
IMPROVING THE SBA
On Wednesday, March 6, 2024, the House Committee on Small
Business held a hearing titled ‘‘Reducing Mismanagement: GAO
Recommendations for Improving the SBA’’ in order to examine the
Government Accountability Office’s (GAO) recommendations to im-
prove the management and procedures of the Small Business Ad-
ministration (SBA). This hearing was gaveled in by full committee
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chair, Chairman Roger Williams (R–TX).
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The U.S. Government Accountability Office (GAO) is an inde-
pendent, nonpartisan government agency that operates within the
legislative branch. Some of their key functions include auditing,
evaluating, and investigating the services provided by the United
States federal government. The GAO primarily serves as a congres-
sional watchdog. The two witnesses were Dr. Courtney
LaFountain—the Acting Director of the GAO, and Ms. Johana
Ayers—the Managing Director of the GAO.
Following Member opening remarks and witness testimonies, a
rather futile discussion ensued surrounding the nature of the GAO
recommendations and the status of their implementation. The wit-
nesses elaborated that their office has a running system of rec-
ommendations which are oftentimes NOT adhered to by the SBA.
The witnesses also explained that the SBA is not adequately uti-
lizing their resources and efforts in order to prevent further waste,
fraud, and abuse.
This hearing was instrumental in highlighting the bureaucratic
deficiencies that have plagued the Biden Administration. The SBA
under current federal purview, are continuing to prove their ineffi-
ciency. This hearing served to remind Members that the need for
oversight of the SBA is reaching a breaking point.
CONDUCTING OVERSIGHT: TESTIMONY FROM THE SMALL BUSINESS
ADMINISTRATOR
On Wednesday, March 20, 2024, at 10:00 AM ET, the House
Committee on Small Business held a hearing titled ‘‘Conducting
Oversight: Testimony from the Small Business Administrator’’ to
probe the SBA’S Administrator, The Honorable Isabella Casillas
Guzman, by meticulously examining both the operations and budg-
et proposal for Fiscal Year 2025 (FY2025). This hearing was
brought to order by full committee Vice Chairman, Rep. Blaine
Luetkemeyer (R–MO).
Since its establishment in 1953, The Small Business Administra-
tion (SBA) has played a massive role in initiating, expanding, and
fostering resilient businesses nationwide. However, recently it has
veered off course from this mission and is currently grappling with
its workload. In President Biden’s Fiscal Year 2025 budget, the
SBA has proposed a $1.46 billion budget, marking a 20 percent rise
from the FY2023 level.
Pursuant to Member opening remarks and witness testimony,
Administrator Guzman provided insights into the rationale behind
this increase and outlined the SBA’s strategies to ensure efficient
use of taxpayer funds. It was clear from her testimony and re-
sponses that the SBA has not adequately provided solutions to
tackle the insurmountable outstanding debt.
Additionally, Ms. Guzman was interrogated on the SBA’s ‘‘work-
from-home’’ policy in which she presented the committee with an
incongruous reporting that does not match previous disclosures
from other members of her department.
This hearing was a clear indication that the Small Business Ad-
ministration (SBA) is struggling to manage its workload effectively.
Simply adding more responsibilities or funding is not the solution,
rather, it requires a strategic approach focused on curtailing waste-
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ful spending, eliminating unnecessary activities, and having the
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workforce back in the office. This hearing highlighted the commit-
tee’s unwavering commitment to Main Street America by holding
the SBA accountable for their lack of efficiency and integrity.
TAX DAY: EXPLORING THE ADVERSE EFFECTS OF HIGH TAXES AND A
COMPLEX TAX CODE
On April 10, 2024, the Committee on Small Business Sub-
committee on Innovation, Entrepreneurship, and Workforce Devel-
opment will hold a hearing titled ‘‘Tax Day: Exploring the Adverse
Effects of High Taxes and a Complex Tax Code’’ The purpose of
this hearing was to investigate how expiring provisions, elevated
tax rates, and a convoluted tax code has adversely affected small
businesses nationwide. Small businesses are essential drivers of
economic growth, innovation, and job creation.
The panel of witnesses included Dr. Aaron Hedlund, Associate
Professor of Economics, Purdue University and Research Director,
America First Policy Institute, Mr. Raymond Huff, President, HJB
Corporation, Mr. Chuck Wetherington, President, BTE Tech-
nologies, LLC and Mr. Walter Rowen, President, Susquehanna
Glass Co.
Following opening remarks and witness introductions, discussion
began on the current condition of economy. The hearing focused on
how high taxes can suffocate any business, especially small busi-
nesses. How, small businesses face harsh economic headwinds. The
2017 Tax Cuts and Jobs Act fundamentally proved that lowering
taxes is good for all Americans, small businesses, and the American
economy. The Committee discussed how Congress must work to en-
sure the tax code is working for our nation’s entrepreneurs, not
against them.
The hearing was crucial in order to hear the testimony of those
who are impacted by the tax code. By focusing on these areas,
there is potential for significant improvement in the labor market,
ultimately benefiting both small businesses and the broader econ-
omy.
UNDER THE MICROSCOPE: EXAMINING FINCEN’S IMPLEMENTATION OF
THE CORPORATE TRANSPARENCY ACT
On Tuesday, April 30, 2024, the House Committee on Small
Business conducted a full committee hearing titled ‘‘Under the Mi-
croscope: Analyzing FinCEN’s Execution of the Corporate Trans-
parency Act.’’ The objective of the hearing is to assess how
FinCEN’s Beneficial Ownership Information (BOI) rule affects
small businesses and other related qualms with the Corporate
Transparency Act (ACT). This hearing was gaveled in by the com-
mittee’s chairman, Rep. Roger Williams (TX).
The panel of witnesses contained, Ms. Carol Roth—a small busi-
ness expert and owner, Mr. Roger Harris—the President of Padgett
Business Services, Mr. Timothy M. Opsitnick—the Executive Vice
President and General Counsel of Technology Concepts & Design,
Inc. (TCDI), and Mr. Gary Kalman—the Executive Director of
Transparency International US (TI US).
Following Member opening remarks and witness introductions,
discussion began on how FinCEN’s execution of the Corporate
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Transparency Act (CTA) has led to a significant uptick in the vol-
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ume of information demanded from businesses, thereby imposing
extra regulatory responsibilities on small businesses nationwide.
As the dialogue progressed, the panel then elucidated the negative
consequences regarding FinCEN’s implementation of the ‘‘Bene-
ficial Ownership Information (BOI)’’ rule.
The BOI rule—which mandates companies conducting business
in the United States must report information about the individuals
who ultimately own or control them—is overly vague and is harm-
ful for small business compliance. Furthermore, the witnesses
delved into how the BOI rule poses serious privacy and safety con-
cerns given the substantial increase in data anticipated to be gath-
ered by FinCEN agencies.
This hearing was an important reiteration that the Biden Admin-
istration continues to fail at appropriately balancing national secu-
rity concerns with the effect these rules will have on small busi-
nesses. Numerous businesses are unfamiliar with FinCEN and now
face substantial fines if they fail to adhere to these new mandates.
The federal government ought to prioritize making the aspiration
of owning and operating a business more financially viable for
Americans. The commitment to curbing criminal behavior should
not come at a cost to law-abiding businesses owners.
STIFLING INNOVATION: EXAMINING THE IMPACTS OF REGULATORY
BURDENS ON SMALL BUSINESSES IN HEALTHCARE
On Wednesday, May 8, 2024, the Committee on Small Business
held a hearing titled ‘‘Stifling Innovation: Examining the Impacts
of Regulatory Burdens on Small Businesses in Healthcare.’’ The
purpose of this hearing is to examine the challenges small busi-
nesses face as well as the legislative barriers in the healthcare in-
dustry. This hearing was gaveled in by committee chairman, Rep.
Roger Williams (TX).
The panel of witnesses contained the following: Dr. Brian J. Mil-
ler, M.D., M.B.A., M.P.H—an Assistant Professor of Medicine at
Johns Hopkins University School of Medicine, Dr. David Anthony
Eagle, M.D.—an oncologist & the Chair of Legislative Affairs and
Patient Advocacy of the Community Oncology Alliance, Mr. Wil-
liam J. Newell, J.D.—the Chief Executive Officer of Sutro
Biopharma, Inc., and Dr. Diana Zuckerman—the President of the
National Center for Health Research.
Following opening remarks from Chairman Williams, Ranking
Member Velazquez, and the witnesses, discussion proceeded on the
increasing regulations, burdensome reporting requirements, rising
costs, and red tape across federal agencies. These factors have hin-
dered success in the healthcare industry by forcing physicians to
shutter private practices and consolidate to industry conglom-
erates. With relations to the Biden Administration, the panel’s ire
was directed mainly towards the US Food and Drug Administra-
tion (FDA) and their ineffectiveness.
The FDA, the chief federal agency responsible for promoting food
and drug standardization and supervision, has stymied the
healthcare sector by layers of bureaucracy and regulations. This
has hindered the capacity of small businesses to innovate within
their space but more importantly limited the availability and acces-
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significantly increased the costs of care while compromising the
quality.
In conclusion, this hearing succeeded in emphasizing the need for
the FDA to properly balance between safeguarding human health
and fostering innovation and progress. The current regulatory cli-
mate of the healthcare industry proves that there is a correlation
between the involvement of small businesses, costs to the con-
sumer, and quality of healthcare. Across this sector and a myriad
of others, the Biden administration has forced small businesses out
of the driver’s seat continually at the expense of the everyday
American taxpayer.
UNDER THE MICROSCOPE: REVIEWING KEY SBA PROGRAMS WITH
ASSOCIATE ADMINISTRATOR FROST
On Wednesday, May 15, 2024, the Committee on Small Business
held a hearing titled ‘‘Under the Microscope: Reviewing Key SBA
Programs with Associate Administrator Frost.’’ The purpose of the
hearing was to receive testimony solely from the Associate Admin-
istrator of the SBA’s Office of Capital Access, Ms. Katie Frost, and
to inquire about ongoing issues within the primary SBA lending
programs. The hearing was chaired by full committee chairman,
Rep. Roger Williams (TX).
Since the beginning of the 118th congress, the House Committee
on Small Business has prioritized the oversight of the Small Busi-
ness Administration (SBA) and the auxiliary programs and offices
it affiliates. One of the main offices of contention is the SBA’s Of-
fice of Capital Access (OCA). The OCA is primarily tasked with ex-
panding the availability of capital for small businesses that are un-
able to secure funding through traditional means, as well as dis-
aster relief assistance in the form of home and business loans.
During the COVID 19 pandemic, the SBA altered a collection of
loan standards and requirements in an effort to placate small busi-
nesses from a further financial calamity. While the practice aided
thousands of businesses nationwide, it was inundated by unprece-
dented levels of fraudulent applications that awarded over $600 bil-
lion of taxpayer money.
Following standard hearing protocol, Ms. Katie Frost was asked
a myriad of questions regarding the SBA’s programmatic integ-
rities, lending capacity, and certain reckless policy changes.
Though the conversation continued, the depth of information pro-
vided by Ms. Frost was cursory at best.
This hearing was crucial for the House Committee on Small
Business as they continue holding the SBA accountable for their in-
efficiency. Given that the SBA has attempted to expand their lend-
ing authority, the OCA still needs considerable improvements to
their functions and processes before any additional funding or re-
sources are allocated towards the SBA.
BURDENSOME REGULATIONS: EXAMINING THE BIDEN
ADMINISTRATION’S FAILURE TO CONSIDER SMALL BUSINESSES
On Wednesday, May 22, 2024, the Committee on Small Business
convened a hearing titled ‘‘Burdensome Regulations: Examining
the Biden Administration’s Failure to Consider Small Businesses.’’
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The hearing aimed to investigate the effects of the Biden Adminis-
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tration’s stifling regulatory agenda and to explore avenues of relief
for small businesses. Additionally, this hearing addressed the wide-
spread noncompliance of the Regulatory Flexibility Act (RFA)
throughout the Biden Administration.
The panel of witnesses included The Honorable Paul Ray—the
Director of the Roe Institute for Economic Policy Studies at the
Heritage Foundation, Mr. Dan Goldbeck—the director of regulatory
policy at the American Action Forum, Mr. Rob Smith—a senior at-
torney for the National Federation of Independent Business
(NFIB), and Mr. Todd Phillips—an assistant Professor at Georgia
State University. The hearing was presided over by full Committee
chair, Rep. Roger Williams (TX).
Following opening remarks from both Members and witnesses,
discussion ensued on how the Regulatory Flexibility Act (RFA), as
currently written, is failing small businesses. The Regulatory Flexi-
bility Act—signed into law by President Jimmy Carter on Sep-
tember 19, 1980. The RFA mandates that federal agencies assess
the impact of their regulations on small businesses and explore al-
ternatives that achieve the rule’s objectives without excessively
burdening these businesses.
Under the Biden Administration the RFA has proven to be a
check the box exercise and needs legislative strengthening. The cu-
mulative effect of current regulations costs businesses too much
and is coupled with millions of paperwork hours. Moreover, busi-
nesses are being forced to divert their essential resources that
could have otherwise been reinvested.
In the hearing, the panel of witnesses maintained the same tone
of distaste for the current regulatory environment. Though certain
interjections were made praising the need for regulations, ulti-
mately Members and witnesses were in consensus that the RFA’s
impact has waned as the costs of running a business has waxed.
This hearing was important as it continued the Committee’s ob-
jective to hold the Biden Administration accountable for harming
Main Street America. Re. This hearing was another step forward
to address concerns of small businesses nationwide.
WEAPONIZING FEDERAL RESOURCES: EXPOSING THE SBA’S VOTER
REGISTRATION EFFORTS
On Tuesday, June 4, 2024, the Committee on Small Business
held a hearing titled ‘‘Weaponizing Federal Resources: Exposing
the SBA’s Voter Registration Efforts.’’ The purpose of this hearing
was to examine the U.S. Small Business Administration’s (SBA) in-
volvement in registering voters in the State of Michigan. The hear-
ing was gaveled by Committee Chairman, Rep. Roger Williams
(TX).
The collection of witnesses included Ms. Eliane Parker—Presi-
dent, Job Creators Network Foundation, The Honorable Diego Mo-
rales—Secretary of State, Indiana, Mr. Stewart Whitson—Senior
Director of Federal Affairs, Foundation for Government Account-
ability, and Ms. Lisa Danetz—Advisor, Lisa Danetz Consulting.
On March 19, 2024, the SBA announced a new memorandum of
understanding (MOU) with the Michigan Department of State to
promote civic engagement and voter registration in Michigan. As
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nity, an investigation was launched to investigate why the SBA
would divert resources away from Main Street so it can focus on
voter registration in a battleground state.
By involving the SBA in federal elections, it potentially violates
constitutional principles and creates serious concerns relating to
executive overreach. The United States was founded on the ideal
that splitting power between coequal branches of government and
the states would create a strong system with minimal opportunity
for corruption or tyranny. If a president and their agencies were
permitted to freely involve themselves in elections, they could influ-
ence the election process in crucial states to attain a more favor-
able result in the election.
After the SBA’s announcement on its voter registration initiative,
an online journalist released a video of a senior SBA official openly
discussing the SBA’s involvement with President Biden’s re-elec-
tion campaign. This video raised additional concerns with the Com-
mittee, and amplified existing questions about the improper, inap-
propriate, and perhaps unconstitutional nature of the MOU with
the State of Michigan. Statements made in this video also raised
concerns in this Committee regarding the use of taxpayer funds for
the SBA and the Administrator’s travel.
As small businesses continue to suffer due to failed Bidenomics,
this hearing provided an opportunity for members to hear from
election and small business experts on the impact the SBA med-
dling in voter registration will have on the small business commu-
nity.
UNDER THE MICROSCOPE: EXAMINING THE CENSORSHIP INDUSTRIAL
COMPLEX AND ITS IMPACT ON AMERICAN SMALL BUSINESSES
On Wednesday, June 26, 2024, the Committee on Small Business
conducted a hearing titled ‘‘Under the Microscope: Examining the
Censorship-Industrial Complex and Its Impact on American Small
Businesses.’’ The hearing aimed to explore how the Censorship-In-
dustrial Complex is affecting American small businesses, particu-
larly regarding their revenue streams and freedom of speech. This
hearing was brought to order by Committee Chairman, Rep. Roger
Williams (R–TX).
The panel of witnesses included Ms. Jenin Younes—a member of
the Litigation Counsel at the New Civil Liberties Alliance, Mr.
Benjamin Weingarten—an Investigative Journalist & Columnist
for RealClearInvestigations & RealClearPolitics, Ms. Carrie Shef-
field—a Senior Policy Analyst at the Independent Women’s Forum,
and Dr. Mary Anne Franks—a law professor at the George Wash-
ington University Law School.
Following Member opening remarks and witness testimony, dis-
cussion began on the censorship initiatives the federal government
has green-lighted over recent years. These initiatives are said to
have originated from the highest levels of the White House—in-
volving at least a dozen federal agencies. Government officials, in-
cluding President Biden—have framed these efforts as attempts to
combat ‘‘misinformation.’’ The overwhelming majority of the speech
that has been muzzled has been right-leaning and/or conservative.
Furthermore, government actors have used threats, coercion, and
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sorship goals—as seen through The State Department’s Global En-
gagement Center (GEC) and their practices for example.
A major theme of the hearing was the government’s support of
watchdog companies that police what is considered misinformation.
Companies like NewsGuard and the Global Disinformation Index
(GDI) specialize in deciphering the ‘‘credibility’’ of news outlets.
NewsGuard and GDI informs readers and advertisers which
‘‘websites they can trust.’’
In a time where trust in mainstream media has deteriorated,
small independent media outlets are more important than ever. Si-
lencing dissenting voices in the name of democracy is wrong. The
information provided by the witnesses granted insight into the gov-
ernment agencies silencing Americans and putting them out of
business for speaking against the accepted narrative. The Federal
government is orchestrating a suppressive monopoly on ideas by
putting dissenters out of business.
MAIN STREET REALITIES: EXAMINING THE CURRENT ECONOMIC
LANDSCAPE IN AMERICA
On Wednesday, July 10, 2024, the Committee on Small Business
conducted a hearing called ‘‘Main Street Realities: Examining the
Current Economic Landscape in America.’’ This hearing aims to ex-
plore the condition of the small business economy, featuring testi-
monies from small business owners and industry experts about the
numerous challenges small businesses have faced under the Biden
Administration. This hearing was gaveled in by full committee
Chairman Roger Williams (TX).
The panel of witnesses included Ms. Hazel Davis—the Vice Presi-
dent, Compliance Manager & Corporate Responsibility Officer of
Jefferson Bank, Mr. Steve Martinez—the President of Tradewinds
and General Contracting, Inc, Mr. J.D. Ewing—the Chairman and
CEO of COE Distributing and lastly, Mr. Tom McCarthy—the Vice
President and Co-Founder of Motiv Space Systems.
Following Member opening remarks and witness introductions,
discussion began on the current condition of economy and the bar-
riers created by incessant regulations and inflation. The panel ex-
pressed that small business owners are finding it increasingly dif-
ficult to secure financing from traditional lenders, mainly due to
persistently high interest rates. Small businesses are struggling to
obtain loans from large, mid-sized, and even small regional banks,
which have traditionally been crucial sources for their financing.
In addition to dwindling financial resources, small businesses
have been plagued by overregulation. With over 900 hundred regu-
lations costing businesses more than a $1.6 trillion, small busi-
nesses have faced an uphill regulatory battle since the day Biden
took office. As attested, the constant addition of regulations has
drastically hindered the ability for small businesses to grow oper-
ations and expand hiring.
The House Committee on Small Business continues to advocate
against the Biden Administration’s reckless policies. This hearing
aimed to amplify the voices of small businesses that are often un-
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MAIN STREET HOLDING THE SBA ACCOUNTABLE: TESTIMONY FROM
SMALL BUSINESS ADMINISTRATOR GUZMAN
On Wednesday, September 18, 2024, the Committee on Small
Business convened a hearing titled ‘‘Holding the SBA Accountable:
Testimony from Small Business Administrator Guzman.’’ The hear-
ing conducted the oversight necessary to ensure the SBA complies
with the Committee’s requests and returns the SBA to its role of
helping small businesses. The SBA is intended to aid small busi-
nesses and represent their interests in the federal government. De-
spite its intended role, the current SBA leadership has decided to
focus on other priorities.
The witness was The Honorable Isabella C. Guzman—the Ad-
ministrator for the Small Business Association. The hearing was
presided over by full Committee chair, Rep. Roger Williams (TX).
Following opening remarks from the Chair, Ranking Member,
and the Administrator. The hearing started by discussing—the
SBA’s decision to enter a Memorandum of Understanding with the
State of Michigan to help register voters ahead of the election. Not
only is this far outside the scope of what the Small Business Ad-
ministration (SBA) should be engaged in, but Federal agencies
shouldn’t be using taxpayer resources to insert themselves into the
election process.
Early last year, the SBA reduced the prudent lending standards
within the SBA’s flagship 7(a) loan program. While the SBA has
touted that it has made more loans to America’s small businesses,
we have learned that data from the SBA lender portal indicates the
early default rate has tripled since the prudent lending standards
were stripped in the 2023 Biden-Harris SBA policy changes.
In the hearing, the Administrator failed to answer the first two
questions from the Chairman when he asked about the SBA warn-
ing the White House about the damage their regulations are doing
to the struggling small businesses in America and who is to be held
responsible. Rather, she dodged the questions, insisting that she
had touched base with local small businesses and heard their views
on these issues herself.
Throughout the hearing, Members expressed concern about how
the agency is unwilling and unable to produce documents respon-
sive to the Committee’s oversight requests.
As our Nation’s small businesses are facing brutal economic
headwinds, it is our job to ensure that small businesses have a
fighting chance at success. The hearing emphasized how America’s
job creators have been straddled with more regulations than they
can handle and aimed to provide a pathway for the SBA to get
back on track.
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PART B—SUBCOMMITTEE HEARINGS
FIRST SESSION OF THE 118TH CONGRESS
THE END OF RELATIONSHIP BANKING? EXAMINING THE CFPB’S ‘SMALL
BUSINESS LENDING DATA COLLECTION’ RULE
On March 28, 2023, the Subcommittee on Economic Growth, Tax,
and Capital Access held a hearing titled, ‘‘The End of Relationship
Banking? Examining the CFPB’s ‘Small Business Lending Data
Collection’ Rule.’’ The purpose of this hearing was to examine the
Consumer Financial Protection Bureau’s (CFPB) proposed rule that
would attempt to implement Section 1071 of the Dodd-Frank Act.
Witnesses for the hearing were Mr. Troy Peters, President, and
CEO, JBT Bank on behalf of the Pennsylvania Association of Com-
munity Bankers, Mr. Lucas White, President, The Fountain Trust
Company on behalf of the Independent Community Bankers of
America, Mr. Michael Wilson, Chief Experience Officer, Members
1st FCU on behalf of The National Association of Federally-Insured
Credit Unions and Ms. Luz Urrutia, Chief Executive Officer, Accion
Opportunity Fund.
At the hearing, members asked a series of questions directed to
the four witnesses examining how this rule could negatively impact
small business across out country. The witnesses explained how
the Small Business Lending Data Collection’ Rule could damage re-
lationships between local small businesses and community lenders,
create an overwhelming compliance burden to the smallest finan-
cial institutions, and lastly, how this rule may exceed the CFPB’S
statutory authority.
There are several concerns with the CFPB’s proposed rule as
written. The Committee is concerned that this rule may affect ac-
cess to and the cost of credit for small businesses and that it will
be overly burdensome for small financial institutions to implement.
HIGHLIGHTING THE ROLE OF SMALL BUSINESSES IN DOMESTIC ENERGY
PRODUCTION
On March 29, 2023, the Committee on Small Business Sub-
committee on Rural Development, Energy, and Supply Chain held
a hearing titled ‘‘Highlighting the Role of Small Businesses in Do-
mestic Energy Production’’ The purpose of this hearing was to hear
stories directly from small business owners about the federal policy
challenges and concerns they face as domestic energy producers in
the United States.
Witnesses for the hearing were Mr. Lucas Gjovig, President of
GO Wireline, Mr. Nick Powell, Chairman and Owner of Colt En-
ergy, Mr. Ed Cross, President of Kansas Independent Oil and Gas
Association and Mr. Dan Conant, Founder and President of Solar
Holler.
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At the hearing, members asked a series of questions directed to
the four witnesses examining how the Biden Administration has
negatively impacted the oil and gas industry. The witnesses dis-
cussed how they face discrimination and opposition against invest-
ment in the fossil fuel industry and permitting reform. The wit-
nesses noted the positive effects of increasing the production of en-
ergy domestically to restore our country’s energy security.
Small energy producers face several challenges in today’s econ-
omy including access to capital, permitting, and other regulatory
burdens. The Committee will continue to examine policies that can
help small American energy firms prosper.
OFFICE OF INSPECTOR GENERAL REPORTS TO CONGRESS ON
INVESTIGATIONS OF SBA PROGRAMS
On April 19, 2023, the House Committee on Small Business Sub-
committee on Oversight, Investigations, and Regulations held a
hearing titled ‘‘Office of Inspector General Reports to Congress on
Investigations of SBA Programs’’ to examine the issues sur-
rounding the Small Business Administration (SBA) as well as the
Inspector General’s reporting on the challenges the agency con-
tinues to face. Congresswoman Beth Van Duyne (R–TX) chaired
the hearing.
The witness for the hearing was the Honorable Hannibal ‘‘Mike’’
Ware, the Inspector General of the SBA. Mr. Ware was sworn in
as Inspector General on May 24, 2018, following confirmation by
the U.S. Senate.
After opening statements from Members and the witness, ques-
tions ensued probing the Inspector General on the status of the
management challenges at the SBA in addition to the fraud found
in COVID Relief Programs. Congresswoman Van Duyne com-
menced the discourse by inquiring on the SBA’s decision not to col-
lect PPP loans under $100,000 and continued to inspect the SBA’s
ability to manage loan portfolios of the similar magnitude. After a
series of responses from the Inspector General, Congressman
Blaine Luetkemeyer (R–MO) and Chairman Roger Williams (R–TX)
posed their questions regarding the rules changes to the SBA’s
flagship 7(a) program.
The closing dialogue between Members and Mr. Ware sur-
rounded the SBA’s request for additional funding in the upcoming
fiscal year. Mr. Ware iterated that the increased funding would be
imperative to combat the burgeoning fraud and criminal activity
the SBA has been challenged with. The Members responded by ex-
pressing their reservations for more funding. With the conclusion
of the hearing, it was evident that Members wanted further clarity
from the Inspector General regarding the SBA’s ability to mitigate
procedural, oversight, spending, and fraud challenges.
HELP WANTED: EXPLORING HOW ALTERNATIVE PATHS TO STUDENT
DEBT CAN HELP TO STRENGTHEN SMALL BUSINESSES
On April 26th, 2023, The House Committee on Small Business
Subcommittee on Innovation, Entrepreneurship, and Workforce De-
velopment held a hearing titled ‘‘Help Wanted: Exploring How Al-
ternative Paths to Student Debt Can Help to Strengthen Small
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ventional four-year college degree. The hearing was chaired by Rep.
Marc Molinaro (R–NY).
The panel of witnesses for the hearing included: Mr. Erik Elzy:
the Assistant Business Manager at The United Association of
Plumbers and Pipefitters, Ms. Patrice Lee Onwuka: a Director at
the Independent Women’s Forum, Mrs. Meloni Raney, the Presi-
dent, and CEO of TEXO—a construction company who is testifying
on behalf of The Associated General Contractors of America and
Mr. Bruno Schickel, the President of Schickel Construction.
Pursuant opening remarks and witness introductions, Members
began inquiring on the factors that have impeded employment in
middle-skill labor markets and how these factors will remain af-
fecting small businesses in the future. Members then continued to
probe the panel on which industries have been the most affected
and why current measures have been insufficient in mitigating the
shortage of employees. Witnesses responded by elaborating that the
lack of employment has been perpetuated by the narrative that at-
tending college is requisite for financial success. Thus, many more
individuals today are less skilled and heavily in debt. Additionally,
enrollment in career-technical education (CTE) schools is con-
stantly decreasing. The latter part of the hearing focused on each
panelist’s individual backgrounds and what drove them to pursue
their vocational routes.
The panelists then provided Members with suggestions on how
to promote alternative career options that are not withstanding the
need for a college degree. This hearing highlighted the necessity to
be more active in exploring options outside of the normal four-year
degree to boost employment. Additionally, this hearing underlined
the need for an increase in funding for non-conventional schooling
such as CTE’s and other forms of vocational education.
LEVELING THE PLAYING FIELD: THE STATE OF SMALL BUSINESS CON-
TRACTING AMERICAN INGENUITY: PROMOTING INNOVATION
THROUGH THE TAX CODE
On May 11th, 2023, the House Committee on Small Business
Subcommittee on Contracting and Infrastructure held a hearing ti-
tled ‘‘Leveling the Playing Field: The State of Small Business Con-
tracting’’ to discuss the decline in small business federal procure-
ment across various industries. The hearing was brought to order
by the Subcommittee Chairman, Rep. Nick LaLota (R–NY).
The panel of witnesses included Ms. Jackie Ferrari—the Founder
and CEO of The American Fashion Network, Ms. Jacqueline K.
Lopez—the President of Premier Enterprise Solutions testifying on
behalf of Women Impacting Public Policy (WIPP), and Mr. Robert
Schroder—the Founder and Managing Partner of SteerBridge.
Following Members opening remarks and the introduction of the
witnesses, Members opened the discussion by inquiring on the fac-
tors that have perpetuated the decline in small business govern-
ment contracts and how the Biden Administration has continually
failed to meet all their small business contracting goals. The panel
was then probed on fraud and eligibility concerns vis-à-vis the self-
reporting and self-certification processes that have resulted in inac-
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This hearing highlighted the need to further the conversation on
why the Biden Administration has constantly failed achieving their
small business contracting goals and which proactive steps are
needed to combat waste, fraud, and abuse.
AMERICAN INGENUITY: PROMOTING INNOVATION THROUGH THE TAX
CODE
On June 6th, 2023, the House Committee on Small Business,
Subcommittee on Economic Growth, Tax, and Capital Access held
a hearing titled ‘‘American Ingenuity: Promoting Innovation
Through the Tax Code’’ to discuss how changes to R&D expensing
and bonus depreciation has impacted a wide variety of small busi-
nesses. The hearing was gaveled in by Subcommittee Chairman,
Rep. Dan Meuser (R–PA).
The panel of witnesses included Mr. Michael Kaercher—the Di-
rector of the Climate Tax Project at NYU Law’s Tax Law Center,
Ms. Julie Masser Ballay—the Vice President and Chief Financial
Officer of Sterman Masser Inc., and Mr. Bill Wydra—the President
of Ashland Technologies.
Pursuant Members opening remarks and the introduction of the
witnesses, Members opened the discussion by inquiring on the eco-
nomic challenges each witness respectively faces in their job indus-
try. Witnesses were then probed on how R&D expensing and bonus
depreciation has yielded to increases in cash flow and what further
changes in tax provision would continue the trajectory. The latter
half of the conversation between Members and witnesses sur-
rounded the need to increase innovation in order to maintain com-
petitiveness with China.
The hearing today highlighted how modifying R&D expensing
and bonus depreciation tax provisions would alleviate some of the
financial burdens on small businesses. Furthermore, in an era
where innovation is imperative to maintain our adversaries at bay,
Congress must fully consider what is at stake when job creators do
not have as many incentives to further innovation.
BURDENSOME RED TAPE: OVERREGULATION IN HEALTH CARE AND THE
IMPACT ON SMALL BUSINESSES
On July 19, 2023, at 9:30, The House Committee on Small Busi-
ness Subcommittee on Oversight, Investigation, and Regulations,
held a hearing titled ‘‘Burdensome Red Tape: Overregulation in
Health Care and the Impact on Small Businesses’’ to fully consider
the consequences the Biden Administration’s continual overregula-
tion has had on small health providers and sole practitioners. The
hearing focused on the current regulatory landscape, burdensome
reporting requirements, rising compliance costs, and many other
factors that are forcing small health providers to diminish. This
hearing was gaveled in by Subcommittee Chairwoman, Rep. Beth
Van Duyne.
The panel of witnesses included Dr. Henry Anthony Punzi, MD,
FCP, FASH—the Medical Director of the Trinity Hypertension &
Metabolic Research Institute, Dr. Brian Miller, MD, MBA, MPH—
an assistant professor at Johns Hopkins School of Medicine, and
Mr. Matthew Fielder—a Senior Fellow at the Brookings Institu-
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Following Member opening remarks and the introduction of wit-
nesses, the panel was asked how increased regulations will con-
tinue adversely affecting their small providers. The group also dis-
cussed consolidations of smaller healthcare providers has nega-
tively affected the quality of care, competition, and small business.
This hearing highlighted the need to streamline regulations on
small healthcare providers. Additionally, this hearing increased the
understanding that small providers bear a disproportionate amount
of the regulatory burden and the rising costs associated with fed-
eral compliance.
ENABLING SUCCESS: EXAMINING THE COMPETITIVE LANDSCAPE FOR
SMALL BUSINESSES
On September 13, 2023, the House Committee on Small Business
Subcommittee on Economic Growth, Tax, and Capital Access held
a hearing titled ‘‘Enabling Success: Examining the Competitive
Landscape for Small Businesses’’ to deliberate on prospective tax &
rule changes and their adverse impact on the competitive land-
scape for US small businesses. The hearing was gaveled in by sub-
committee chairman, Rep. Dan Meuser (R–PA).
The panel of witnesses included Mr. James Chung—a Jimmy
John’s franchisee & CEO of Atlas, Inc., Ms. Kathryn Judge—the
Vice Dean for Intellectual life at Columbia Law School, and Ms.
Holly Wade—an Executive Director from the National Federation
of Independent Businesses (NFIB).
Pursuant Member opening remarks and the introduction of wit-
nesses, discussion ensued on the merits of the rule and tax changes
the Biden administration has been idle on. As articulated by the
witnesses, interest deductibility is imperative for small business
owners to be able to re-invest in their businesses. Furthermore, the
panel expressed that cumbersome paperwork, regulatory burdens,
and the looming expiry of certain provisions have been causing
small business owners to reconsider future investments.
Lastly, Members questioned the witnesses on Basel III regula-
tions—the set of emergency measures enacted as a response to the
2008 financial crisis. These measures allowed for the heightened
regulation, supervision, and risk management of banks. Witnesses
posited that the Basel III regulations will limit the credit available
for small businesses, and ultimately become a major detriment to
the access to capital.
This hearing highlighted the need to continue the conversation
regarding the lack of effectiveness of the Biden Admiration’s fore-
casted tax and rule changes. There is consensus amongst small
business owners and industry experts that the current regulatory
climate will only marginalize financial prosperity for small busi-
ness owners.
SECOND SESSION OF THE 118TH CONGRESS
PATHWAYS TO SUCCESS: SUPPORTING ENTREPRENEURS AND
EMPLOYEES WITH DISABILITIES
On Tuesday, January 30, 2024, the House Committee on Small
Business Subcommittee on Innovation, Entrepreneurship, and
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Supporting Entrepreneurs and Employees with Disabilities’’ to ana-
lyze the contributions made by entrepreneurs and employees with
disabilities. This hearing also aimed at deliberating a strategy to
further enhance their role in the economy. This hearing was gav-
eled in by Subcommittee Chair, Rep. Marcus Molinaro (R–NY).
The witnesses for the hearing included: Mr. Keith Wargo—the
President and CEO of Autism Speaks, Ms. Iva Walsh—the Owner
of Maeve’s Place, and Mr. Cody Clark—the Founder and Owner of
Cody Clark Magic.
Following Member opening remarks and witness testimonies, dis-
cussion ensued on the obstacles that debilitate each entrepreneur
from further growing their business. The panel listed federal regu-
lations, improper transportation, and the current loan programs as
some of their main unplacated concerns. Additionally, the wit-
nesses expressed that the lack of employability skills and institu-
tional knowledge will continue to hinder the growth for handi-
capped entrepreneurs and employees.
This hearing was critical because roughly one in four, or 61 mil-
lion Americans live with a disability. As attested by the witnesses,
there is still some work to be done with regards to expanding fi-
nancial and legislative resources.
LEVELING THE PLAYING FIELD: CHALLENGES FACING SMALL BUSINESS
CONTRACTING
On Thursday, February 15, 2024, the House Committee on Small
Business Subcommittee on Contracting and Infrastructure held a
hearing titled ‘‘Leveling the Playing Field: Challenges Facing Small
Business Contracting.’’ The objective of this hearing was to pin-
point the hurdles encountered by small businesses engaged in gov-
ernment contracting and explore potential remedies for these chal-
lenges. The hearing was gaveled in by subcommittee chair, Rep.
Nick LaLota (NY).
The collection of witnesses included Mr. Joe Spinosa—the Vice
Chair of ADDAPT, Mr. Joe Lipsky—President of Lipsky Construc-
tion, and Mr. Bob Taylor—the Owner & CEO of Alliant Healthcare.
Following Member opening statements and witness testimonies,
questions ensued on the scarcity and deprecation of small business
issued government contracts. Witnesses explained that in the last
10 years alone, the number of small businesses receiving govern-
ment contracts has reduced by over 50%. The panel continued to
expound on how contributing factors, such as the complex federal
acquisition system has proved to be the biggest deterrent in acquir-
ing a government contract.
This hearing was important because there is a growing necessity
to delve into the difficulties posed by vying for federal contracts.
The Biden Administration has a proven record of undermining the
importance of small businesses—the lack of government contracts
being dispersed is a clear testament.
NAVIGATING REGULATIONS: ALTERNATIVE PATHWAYS TO INVESTING IN
SMALL BUSINESSES
On March 12, 2024, the House Committee on Small Business’s
Subcommittee on Oversight, Investigations, and Regulations is
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Pathways to Investing in Small Businesses.’’ This hearing aims to
delve into the regulatory hurdles American small businesses en-
counter when seeking capital and the obstacles they encounter
when considering alternative investment avenues. The hearing was
brought to order by subcommittee Chairwoman, Rep. Beth Van
Duyne (R–TX).
The panel of witnesses included Mr. Parag Shah—the Co-Found-
er & Chief Technology Officer of Vemos, Ms. Mary Kennedy
Thompson—the Chief Operating Officer of Neighborly, and Mr. Jer-
emy Kress—The Assistant Professor of Business Law at the Uni-
versity of Michigan Stephen M. Ross School of Business.
Following Member opening remarks and witness testimonies, dis-
cussion ensued on how the Biden Administration has unremittingly
proposed and implemented rules and regulations that continue to
yield to more negative consequences. The witnesses mentioned that
the drastically increased costs of starting and maintaining a busi-
ness, have reached an alarming all-time high. Seed capital is sim-
ply not sufficient enough for a business to start and prosper.
Furthermore, the panel delved into how the current regulatory
environment has forced the SBA and other lenders to tighten the
amounts of loans available and the amount rewarded. This has
forced, and will continue to force, small businesses to prioritize
non-traditional forms of capital such as private equity, venture cap-
ital, angel investors, and crowdfunding to name a few.
It was important to hold this hearing due to a collection of rea-
sons. First and foremost, this hearing serves to admonish the
Biden Administration for the incessant regulations and cum-
bersome paperwork they continue to impose. The onerous paper-
work alone has been stressed in nearly every hearing the Com-
mittee has conducted this congress. Next, this hearing continues
the Committee’s trend of highlighting the ire from different busi-
nesses across various sectors. Time and time again, the Biden Ad-
ministration through their usage of activist agencies, have stymied
the financial prosperity for hardworking American business own-
ers.
As businesses grapple with increasing regulatory costs, they in-
evitably transfer these expenses to consumers. Although federal
regulations ideally safeguard investors, the Biden Administration’s
regulatory plans are severely hampering American small busi-
nesses. The Committee is determined to amplify the voices of these
small businesses and will continue to provide solutions for their
betterment nationwide.
EXPLORING SBA PROGRAMS: REVIEWING THE SBIC AND SBIR
PROGRAMS’ IMPACT ON SMALL BUSINESSES
The House Committee on Small Business, Subcommittee on Eco-
nomic Growth, Tax, and Capital Access held a hearing on Tuesday,
April 16, 2024, titled ‘‘Exploring SBA Programs: Reviewing the
SBIC and SBIR Programs’ Impact on Small Businesses.’’ The aim
of this hearing is to delve into how the Small Business Investment
Company (SBIC) and the Small Business Innovation Research
(SBIR) program have influenced small businesses and their ability
to spur innovation. This hearing was brought to order by sub-
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The panel of witnesses included Mr. Angelo Valletta—the Presi-
dent and CEO of Ben Franklin Technology Partners of North-
eastern Pennsylvania, Ms. Amanda Bresler—the Chief Strategy Of-
ficer of PW Communications, Mr. Brett Palmer—the President of
the Small Business Investor Alliance (SBIA), and lastly, Mr. Jere
W. Glover—the Executive Director of the Small Business Tech-
nology Council (SBTC).
Following the Chairman and Ranking Member’s opening re-
marks, each witness provided testimony on the fruitful collabora-
tion SBIR & SBIC programs has fostered through private industry.
The panel expressed that unlike large corporations, small busi-
nesses don’t share the luxury of utilizing debt and equity markets
for financing, thus urging Congress to further empower SBICs to
help more small businesses with common-sense regulatory relief.
Additionally, the panel presented members with a list of con-
straints and barriers their respective industries face when seeking
out SBIR/STTR rewards.
This hearing was crucial because small businesses who are nov-
ice to government work, have found major difficulties under-
standing the confusing language and debilitating regulations
present in government funding opportunities. Moreover, as the au-
thorization for the SBIR/STTR program approaches expiration in
September 2025, Congress should be poised to deliberate enhance-
ments that could yield to many advantages for small enterprises.
This hearing served to spotlight the tangible influence these pro-
grams wield on small businesses and their ability to grow.
LEVELING THE PLAYING FIELD: EXAMINING THE LANDSCAPE OF
VETERAN OWNED SMALL BUSINESSES
On Tuesday, July 23, 2024, the House Committee on Small Busi-
ness Subcommittee on Contracting and Infrastructure held a joint
hearing with the House Committee on Veterans’ Affairs Sub-
committee on Economic Opportunity titled ‘‘Leveling the Playing
Field: Examining the Landscape of Veteran Owned Small Busi-
nesses.’’ The purpose of this hearing was to discuss the entrepre-
neurial spirit of veterans and their contributions to the American
economy, as well as the challenges they face as small business
owners. This hearing was gaveled in by subcommittee chairman,
Rep. Nick LaLota (NY).
The panel of witnesses contained the following: Mr. William J.
Belknap Sr.—President of AEONRG, LLC, Mr. Stephen G.
Hayduk, P.E.—Managing Member of Hayduk Engineering, LLC,
Ms. Stephanie Brown—Founder and CEO of The Rosie Network,
and Mr. Jon Tellier—the President of JetCo Solutions.
Following opening remarks from Chairman LaLota, Ranking
Member Scholten, Rep. Van Orden, Rep. Levin, and the witnesses,
discussion proceeded on the entrepreneurial spirit of veterans, as
well as some of the challenges that veterans face when owning and
operating small businesses.
The number of small businesses receiving Federal contracts has
been cut in half over the past 10 years, in a space where veterans
should have plenty of opportunities to thrive. The leadership and
entrepreneurship skills our Nation’s veterans possess make them
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vilian life can be challenging. Bureaucratic red tape inhibits vet-
erans from easily navigating the process of starting a successful
small business, and this administration needs to be acting swiftly
to help our Nation’s heroes succeed on Main Street.
In conclusion, this hearing succeeded in determining the best
possible ways for the government to support veterans on Main
Street and examining barriers to entrepreneurship from the per-
spective of veteran small business owners. The witnesses provided
crucial information that will help ensure that veteran-owned small
businesses maintain a competitive advantage in this economy.
EXECUTIVE OVERREACH: EXAMINING THE SBA’S ELECTIONEERING EF-
FORTS WITH ASSOCIATE ADMINISTRATOR OF OFFICE OF FIELD OPER-
ATIONS, JENNIFER KIM
On Wednesday, July 24, 2024, the Committee on Small Business
held a hearing titled ‘‘Executive Overreach: Examining the SBA’s
Electioneering Efforts with Associate Administrator of Office of
Field Operations, Jennifer Kim.’’ This meeting was convened in
room 2360 of the Rayburn House Office Building. The purpose of
this hearing was to examine the U.S. Small Business Administra-
tion’s (SBA) involvement in registering voters in the State of Michi-
gan. This hearing was gaveled in by Rep. Beth Van Duyne.
The witness for the hearing was Ms. Jennifer Kim, Associate Ad-
ministrator, Office of Field Operations, U.S. Small Business Ad-
ministration.
After Members opened with remarks, the witness provided testi-
mony on the SBA’s involvement in creating and implementing the
MOU and MOA between the SBA and State of Michigan to register
voters. Further, members highlighted the apparent partisan nature
of the MOU and raised concerns regarding the legality of the pro-
gram.
This hearing was crucial because small businesses continue to
struggle through various economic headwinds. Further, this hear-
ing provided an opportunity for Associate Administrator Kim to
further explain what the purpose of this agreement with the state
of Michigan is, and why they are pulling resources from small busi-
ness owners to register voters.
AVENUES TO SUCCESS: EXAMINING WORKFORCE TRAINING PROGRAMS
FOR EMPLOYEES
On September 25, 2024, the Committee on Small Business Sub-
committee on Innovation, Entrepreneurship, and Workforce Devel-
opment will hold a hearing titled ‘‘Avenues to Success: Examining
Workforce Training Programs for Employees.’’ The purpose of this
hearing was to examine the challenges of the current labor market
and examine the resources available to help small business owners
expand their labor pool.
The panel of witnesses included Ms. Ashley Gamba—the Execu-
tive Director of Community Options Inc., Mr. Frank A. Stento—the
Director of Business Development of the International Union of
Painter’s & Allied, and Mr. Neal Strange—the Director of Edu-
cation for the Indiana Kentucky Ohio Regional Council of Car-
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Following opening remarks from Chairman Molinaro, Ranking
Member McGarvey and the witnesses, discussion proceeded about
how current labor shortage in the United States is disproportion-
ately affecting small businesses. They shared the bipartisan goal of
addressing the skills gap through workforce development and how
it is vital to harness the potential of people with disabilities and
to also promote skilled trades.
The panel expressed multiple solutions their organizations pro-
vided to assist in closing the gap in unemployment, especially for
those with disabilities. Ms. Gamba combatted common employer’s
concerns with taking on employees with disabilities—first by stat-
ing that their organization takes on the liability insurance of the
individual and second sharing that there tends to be less turn over
with these individuals who are seeking to hold these positions long
term.
In continuation, Mr. Stento shared an advantage for an appren-
tice coming in would be they are building up a skilled craft that
is in very high demand, highly marketable. Mr. Stange supported
this statement by saying he has seen 40 percent growth in 3 years
alone inside of their apprenticeship programs. More are involved at
the CT level at the high schools and increased partnerships at high
schools.
The hearing was crucial in order to hear the testimony of those
directly involved with skilled labor and job placement. By focusing
on these areas, there is potential for significant improvement in the
labor market, ultimately benefiting both small businesses and the
broader economy.
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PART C—WASTE, FRAUD, ABUSE, AND
MISMANAGEMENT
Of the hearings delineated above, the following were devoted spe-
cifically to an examination of programs within the Committee’s ju-
risdiction with a focus on potential mismanagement, waste, fraud
and abuse.
HEARINGS ON SBA MANAGEMENT AND BUDGET
The Committee continued its oversight of the management of
SBA through hearings and meetings with agency officials and
stakeholder groups. During 2023 and 2024, to date, numerous SBA
officials, industry representatives and small business owners were
questioned about the operation of SBA programs:
D A series of hearings with the SBA Administrator Isabella
Casillas Guzman were held on March 23, 2023, March 20,
2024, and September 18, 2024.
D A Subcommittee hearing on the Office of Inspector Gen-
eral’s report on SBA programs was held on April 19, 2023.
D A series of hearings reviewing the 7(a) program were held
on:
» May 20, 2023, Associate Administrator Patrick Kelly
testified before the Committee on the operations of the
SBA’s capital access programs.
» May 27, 2023, the Committee held a hearing dis-
cussing lenders experience working with the SBA in the
7(a) program.
D A Committee hearing to review the SBA Office of Inspector
General Report on Fraud within the COVID–19 lending pro-
grams was held on July 13, 2023.
D A Subcommittee hearing to assess the state of the small
business economy was held on September 13, 2023.
D A series of hearings assessing the SBA use of taxpayer re-
sources to register voters were held on:
» June 4, 2024, with investigators and academics to as-
sess the propriety of the SBA’s involvement in voter reg-
istration activities.
» July 24, 2024, Associate Administrator Jennifer Kim
testified regarding the Office of Field Operations involve-
ment in voter registration efforts.
D A hearing to investigate the effectiveness and efficiency of
the Small Business Associations (SBA) entrepreneurial devel-
opment programs was held on November 14, 2023.
D A Committee hearing to analyze the consequences of The
Small Business Administrations (SBA) size standards on small
business contractors was held on February 6, 2024.
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D A Committee hearing to examine the Government Account-
ability Office’s (GAO) recommendations to improve the man-
agement and procedures of the Small Business Administration
(SBA) on March 6, 2024.
D A Subcommittee on Economic Growth, Tax, and Capital
Access hearing examining the how the Small Business Invest-
ment Company (SBIC) and the Small Business Innovation Re-
search (SBIR) program have influenced small businesses and
their ability to spur innovation was held on April 16, 2024.
D A Committee hearing with Associate Administrator for
Capital Access, Katie Frost, investigating ongoing issues with-
in the SBA’s Office of Capital Access was held on May 15,
2024.
HEARINGS ON SBA FINANCIAL ASSISTANCE PROGRAMS
In the 118th Congress, the Committee continued its focus on
SBA’s capital access programs. During 2023 and 2024, to date, nu-
merous SBA officials, industry representatives and small business
owners were questioned regarding frequent concerns about the
struggle for small businesses to access capital to fund their oper-
ations. Below is a list of hearings that were held on SBA’s capital
access programs that were not included above.
D A Subcommittee on Economic Growth, Tax, and Capital
Access hearing assessing the impact of CFPB regulations on
small business relationship banking was held on March 28,
2024.
D A Committee hearing investigating the alternative means
small businesses can use to access capital was held on January
18, 2024.
D A Committee hearing discussing the availability and effi-
cacy of certain public and private resources centered at assist-
ing entrepreneurs was held on June 13, 2023.
HEARINGS ON FEDERAL PROCUREMENT
During the 118th Congress, the Committee continued to examine
federal procurement rules as they affect small businesses. Below is
a list of hearings that were held on federal procurement programs
that were not included above.
D A Subcommittee on Contracting and Infrastructure to pin-
point the hurdles encountered by small businesses engaged in
government contracting and explore potential remedies for
these challenges was held on February 15, 2024.
D A Subcommittee on Contracting and Infrastructure to dis-
cuss the decline in small business federal procurement across
various industries was held on May 11, 2023.
D A Subcommittee on Innovation, Entrepreneurship, and
Workforce Development hearing deliberating a strategy to fur-
ther enhance their role in the economy was held on January
30, 2024.
HEARINGS ON SBA ENTREPRENEURIAL DEVELOPMENT PROGRAMS
During the 118th Congress, the Committee continued to examine
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2024, to date, numerous SBA officials, industry representatives and
small business owners were questioned regarding delivery of the
entrepreneurial development programs goals. Below is a list of
hearings that were held on federal procurement programs that
were not included above.
D A Committee hearing investigating the effectiveness and
efficiency of the Small Business Associations (SBA) entrepre-
neurial development programs was held on November 14,
2023.
D A Subcommittee on Innovation, Entrepreneurship, and
Workforce Development examine the challenges of the current
labor market and examine the resources available to help
small business owners expand their labor pool was held on
September 25, 2024.
D A Subcommittee on Contracting and Infrastructure hear-
ing discuss the entrepreneurial spirit of veterans and their con-
tributions to the American economy, as well as the challenges
they face as small business owners was held on July 23, 2024.
D A Subcommittee on Innovation, Entrepreneurship, and
Workforce Development hearing aimed at deliberating a strat-
egy to further enhance the role of people with disabilities in
the economy was held on January 30, 2024.
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PART D—IMPLEMENTATION OF THE
OVERSIGHT PLAN
Subpart 1—Oversight of Federal Capital Access Programs
7(a) Program
During the 118th Congress, the Committee conducted hearings
and investigation into the SBA’s flagship 7(a) program. The 7(a)
program supports businesses that are unable to find capital else-
where by connecting them with private sector lenders to issue
loans up to $5 million. Depending on the characteristics of the loan,
these loans are then guaranteed by the SBA between 50 and 90
percent. The Committee conducted numerous hearings on whether
the SBA was properly managing the 7(a) program and the lenders
within it.
On May 10 and 17, 2024, the Committee held hearings reviewing
recent changes to the 7(a) program and how they will impact small
business access to capital. Further, during oversight hearings with
agency officials, the Committee investigated the recent expansion
of the Small Business Lending Companies in the 7(a) program.
During these hearings, the Committee discussed the recent addi-
tion of a lender to the program which had recently sold it domestic
operations, requiring the SBA to revoke the companies lending li-
cense. These hearings also assessed whether the SBA was ade-
quately investing and supporting small businesses through this
program.
Building on the Committee’s oversight efforts, the Committee de-
bated H.R. 1644, the 7(a) Loan Agency Oversight Act, requires the
Office of Credit Risk Management (OCRM) at the SBA to develop
and publish an annual portfolio risk analysis for Congress on loan
agents within the program on loans where a loan agent is a party
to the transaction. Further, the Committee also marked up H.R.
1651, the 7(a) Loan Agency Transparency Act, establishes a reg-
istration system with unique identifiers for 7(a) agents to help the
SBA’s OCRM track and evaluate the performance of 7(a) loans gen-
erated through loan agent activity. Combined these changes should
improve the functions of, and visibility into the 7(a) program.
Further, as part of the Committee’s long-term oversight respon-
sibilities in this program, the Committee continues to monitor that
the 7(a) program operates at a zero-subsidy rate. The Committee
seeks to ensure that the 7(a) program operates at minimal cost to
the taxpayer and properly targets borrowers.
Pandemic Lending Programs
To assist businesses in retaining employees during the COVID–
19 pandemic, Congress created numerous programs. The largest of
these programs managed by the SBA was the Paycheck Protection
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program (PPP). This program provided businesses with fully forgiv-
able loans, provided businesses met the standards of these loans
related to employee retention and use of funds. Given the size and
urgency of this program, the PPP program was highly susceptible
to fraud.
In addition to the PPP, Congress also tasked the SBA with im-
plementing the COVID–19-specific EIDL program. These loans
were intended to assist businesses during periods of reduced oper-
ation and provided low interest loans for covering expenses. During
the 118th Congress, the COVID EIDL program was extensively re-
viewed and subject to multiple hearings and briefings.
Additionally, two smaller programs, the Shuttered Venues Oper-
ators Grant and Restaurant Revitalization Fund were created to
provide grants and funds to businesses in specific sectors that were
disproportionately impacted by the Pandemic. Through Committee
investigation, it was revealed that the nature of these programs as
grants contributed to a substantially lower rate of fraud.
During the 118th Congress, the Committee held numerous hear-
ings and multiple briefings with the SBA, SBA OIG, Pandemic Re-
sponse Accountability Committee (PRAC), and the GAO. These
briefings revealed that there was potentially $200 billion in fraudu-
lently issued loans across pandemic programs, including over $60
billion in PPP and over 30 percent of the COVID EIDL program.
The Committee conducted oversight to assess the cause of these
fraudulent loans, and what systematic inadequacies existed to cre-
ate such waste. Further, following the SBA electing to end collec-
tion on delinquent COVID–19 loans valued $100,000 or less, the
Committee began investigating whether this was a valid use of tax-
payer funds. Following Committee oversight, the SBA reversed
these decisions.
In addition to testimony from the Administrator and senior SBA
officials, the Committee held a hearing with SBA OIG Ware on Jul
13, 2024, regarding the total fraud in this program. Further, on
September 27, 2023, the Committee held a hearing on how the pri-
vate sector could be leveraged to collect on pandemic loans.
As a result of these efforts, the Committee debated numerous
pieces of legislation. On July 18, 2023, the Committee marked up
legislation requiring the SBA OIG to issue a quarterly report on
PPP and COVID EIDL fraud and requiring the SBA administrator
to issue guidance on the return of PPP funds. Further, On Sep-
tember 21, 2023, the Committee debated a bill prohibiting those
convicted of PPP or COVID EIDL fraud from accessing SBA assist-
ance again. The Committee also debated a bill to require the SBA
to post a link where individuals could report COVID EIDL and
PPP fraud. On January 31, 2024, the Committee marked up the
Put America on Commission Act, which would compensate individ-
uals that report COVID EIDL and PPP fraud.
The Committee continues to monitor the management of the PPP
program. As this program winds down, and loans are forgiven, it
is essential to ensure that the SBA diligently assesses whether bor-
rowers are owed forgiveness for these loans.
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Disaster Loan Program
During the 118th Congress, the Committee conducted hearings
and oversight into the SBA’s disaster loan programs. The SBA of-
fers numerous forms of disaster assistance to both businesses and
individuals impacted by declared disasters. During the 118th Con-
gress, the Committee conducted investigations into the disaster
programs use of funds and management. The Committee partici-
pated in numerous briefings on the status of ongoing and previous
disasters to fully understand the SBA’s response in these situa-
tions.
SBA’s disaster loans are an important function of the SBA. In-
vestigations into the SBA management of the COVID–19 portfolio
suggest that the SBA’s Office of Disaster Assistance struggles to
lend funds as responsibly or efficiently as the SBA’s Office of Cap-
ital Access. The Committee will continue to investigate the use of
funds in the SBA’s disaster loan programs.
504/Certified Development Company Program
During the 118th Congress, the Committee continued its over-
sight efforts of the certified development companies (504 loan pro-
gram). The 504-loan program provides financing for major assets
that promote business growth and job creation. These loans are
issued through Certified Development Companies and have a max-
imum amount of $5.5 million.
As part of its oversight efforts, the Committee continues to mon-
itor whether SBA rules, regulations, and guidance result in trans-
parent and reasonable decision making with respect to this pro-
gram and ensure that Certified Development Companies enforce
SBA guidelines and regulations.
Subpart 2—Oversight of SBA and Other Federal
Entrepreneurial Development Programs
The SBA offers a number of products, programs, and services in-
tended to assist small business and aspiring small business own-
ers. These programs offer resources, expertise, and support to help
entrepreneurs succeed. During the 118th Congress, the Committee
devoted specific focus to ensuring that veterans are receiving ade-
quate support in starting businesses. Additionally, the Committee
directed a substantial amount of its oversight efforts toward ensur-
ing the efficiency of these programs.
On May 24, 2023, the Committee held a hearing assessing the
challenges and opportunities that veterans have when starting a
new business. During this hearing, the Committee assessed the
role and value of Veterans Business Outreach Centers. The status
of VBOC’s was discussed in more detail during the Committee’s
November 23, 2024, hearing.
In addition to the issues faced by veterans, the Committee de-
voted substantial focus to the issues faced by individuals with dis-
abilities in starting a new business. To that end, the Committee
held a hearing on the pathways to success and opportunity for indi-
viduals with disabilities.
On November 14, 2023, the Committee held a hearing with the
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issues. During this hearing the potentially duplicative nature of the
TRIVE program is potentially duplicative of the work of existing
Small Business Development Companies (SBDC). Further, during
this hearing it was noted that the SBA’s online learning platforms
offer similar support to existing private sector resources, but at a
substantially higher cost. Lastly, the hearing focused on the sub-
stantially higher cost for the Community Navigator program when
compared to the SBDC program.
Additionally, the Committee held a hearing on July 26, 2023, to
investigate the issues faced by small rural businesses. During this
hearing, the lack of resources for rural businesses was discussed in
detail. The hearing further examined how small rural businesses
could access tools to support their growth.
Building on the Committee’s oversight efforts, on May 23, 2023,
the Committee marked up H.R. 1730, H.R. 1606, H.R. 3511, and
H.R. 1541. H.R. 1730 requires SBDCs and Women’s Business Cen-
ters (WBCs) to help connect Career and Technical Education (CTE)
program graduates with small businesses who are looking for work-
ers. H.R. 1541 adds a requirement that Small Business Develop-
ment Centers (SBDCs) provide information and assistance to small
businesses on how to establish and improve apprenticeship pro-
grams, work-based learning programs, pre-apprenticeship pro-
grams, and job training programs. H.R. 3511 H.R. 1606 codifies the
Boots to Business program through 2028. H.R. 3511 require train-
ing for federal agencies on increasing contract awards to small
business concerns owned and controlled by service-disabled vet-
erans. Further, on January 31, 2024, the Committee marked up
legislation which would make adjustments to the advisory boards
for SBDC’s. Further, the Committee debated H.R. 7989 which
would provide added opportunities for people with disabilities in
small businesses.
The Committee also investigated the extent to which the SBA
works with other federal agencies to assist in these entrepreneurial
development programs. Through testimony and briefings with the
SBA and other Agencies, the Committee found that across all pro-
grams, including the entrepreneurial development programs, the
SBA struggled to work with other agencies and leveraged this in-
formation to increase efficiency and properly target entrepreneurs.
Subpart 3—Oversight of Federal Government Contracting
Matters
In addition to its lending and entrepreneurial development pro-
grams, the SBA is tasked with ensuring that small businesses have
access to federal government contracting opportunities. To that
end, during the 118th Congress, the Committee continually as-
sessed the SBA’s assistance to businesses in receiving federal con-
tracting.
The Committee held multiple hearings on the challenges small
businesses face in receiving and competing for federal contracts,
and how the SBA assists these businesses. On May 11, 2023, the
Committee held a hearing on the state of small business con-
tracting, where witnesses testified to their experience in competing
in federal contracts. These businesses testified that bundling and
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excessive red tape make contracting with the federal government
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difficult, time consuming, and often not profitable. Additionally, on
February 15, 2024, the Committee held another hearing where
small business owners discussed the difficulties they were facing.
Among the most impactful were the 50 percent decrease in federal
contracts going to small businesses over the past 10 years, regula-
tions, and the negative impacts of self-certification. Further, on
April 16, 2024, the Committee held a hearing on the Small Busi-
ness Innovation Research (SBIR) program. During this hearing the
Committee received testimony suggesting that the efficiency of the
SBIR program could be improved by reducing the regulatory bur-
den on small businesses.
In addition to working with the SBA, the Committee worked
closely with other federal agencies, including the Department of
Defense, to assess how contracting opportunities could be expanded
for small businesses. To that end, Chairman Williams sent the DoD
a letter regarding the decrease in small business participation in
defense contracting, and how the trend could be reversed.
To build out contracting opportunities for small businesses, the
Committee debated numerous pieces of legislation. On January 31,
2024, the Committee debated H.R. 5450 which clarifies that the
HUBZone price preference of up to 10% may be used on task or-
ders. The Committee also debated two separate bills aimed at im-
proving the Women Owned Small business program. On April 17,
2024, the Committee debated H.R. 7988 which would require the
SBA to account for the number of new entrants into the federal
procurement space when it grades agencies for use in its Scorecard.
Further, the Committee marked-up H.R. 7987 which would require
that contract solicitations are in plain, understandable terms. Addi-
tionally, H.R. 8014 would help firms find similar contract opportu-
nities to bid on and publicize an agency’s future plans with regard
to the canceled solicitation.
SBA is also in charge of setting size standards for different in-
dustries which qualify as a small business. On February 6, 2024,
the Committee held a hearing on the SBA’s size standards and how
they impact the ability of small businesses to compete, especially
for government contracts. Additionally, in August 2024, the SBA
temporarily deactivated its online certification portal so that it
could be updated. The Committee found that the SBA was not ade-
quately prepared to update its systems, and this process took
longer than anticipated, harming the ability of small businesses to
compete for federal contracts while properly certified.
Subpart 4—Oversight of SBA Management
Oversight of SBA management was among the most important
focuses for the Committee. To that end, the Committee dedicated
substantial time and resources to ensure the SBA was adhering to
its mission and respecting the power afforded to it by Congress.
Additionally, the Committee investigated the propriety of the SBA’s
use of resources.
Following the COVID–19 pandemic, many federal agencies, the
SBA included, struggled to have employees return for in-person
work. Throughout the 118th Congress, the Committee consistently
assessed whether SBA staff was coming into the office. This topic
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SBA headquarters, as well as the during the Committee’s March
20, 2024, hearing with Administrator Guzman.
In addition to the issues the SBA had in managing its COVID
lending programs, the Committee found that the management of
that program was not well tailored to mitigating risk or reducing
costs for the taxpayer. Most notably, the Committee exchanged nu-
merous letters and had multiple meetings with the SBA regarding
its decision to end collection on delinquent PPP and COVID EIDL
loans. Through this process the Committee was able to determine
that SBA management did not adequately consider costs and di-
rected too much focus into appearing magnanimous. In the face of
this constant vigilance, the SBA relented and resumed collections.
Additionally, the Committee investigated the SBA’s decision to re-
tain the COVID–19 lending portfolio, instead of considering its
sale. The Committee held a transcribed interview with Mr. Kim,
Director of the Office of Financial Program Operations. Through
the Committee’s oversight, it was suggested that the SBA and its
management did not adequately consider the potential of selling
these loans.
In addition to the wasteful use of resources, Committee oversight
efforts found instances where the SBA operated wholly outside of
its mission statement. In 2024, the SBA announced a partnership
with the State of Michigan to register voters. During the Commit-
tee’s investigation of this voter registration effort, a video was re-
vealed suggesting that senior SBA staff was indirectly campaigning
for the incumbent president through SBA’s work. The Committee
was substantially concerned about these claims and sought to
eliminate concerns of partisanship and waste. During the Commit-
tee’s June 4, 2024, hearing, Mr. Witson testified that the SBA’s
voter registration efforts were part of a whole-of-government effort
and likely took resources and time away from existing SBA pro-
grams to facilitate. The Committee maintained its vigilance on this
issue, and to forward this investigation, issued three subpoenas to
the SBA seeking testimony and documents related to this effort. In
addition to potentially misusing resources to register voters, the
Committee found that SBA management struggled to provide the
Committee with testimony and documents in a timely and complete
manner. The Committee continued these investigative efforts dur-
ing its July 24, 2024, hearing with Ms. Kim, Associate Adminis-
trator for the Office of Field Operations, and during its September
18, 2024 hearing with Administrator Guzman.
The SBA also struggled to adequately manage its disaster fund
and communicate with the Committee regarding its needs. Just
after Hurricane Helen, the SBA notified the Committee of issues
funding its disaster program. Through further investigation, the
Committee learned that the SBA had been concerned about its dis-
aster account balances for months before informing the Committee
of its immediate needs.
In total, the Administrator appeared before the Committee on
March 23, 2023, March 20, 2024, and September 18, 2024. The Ad-
ministrator also declined an invitation to testify on July 13, 2024.
During these hearings numerous issues regarding SBA manage-
ment were posed. Additionally, the Committee held hearings with
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other senior SBA employees on July 24, 2024, and May 15, 2024.
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During these hearings Ms. Kim and Ms. Frost, respectively, were
asked about their responsibilities at SBA, and how they are
stewarding taxpayer dollars.
Subpart 5—Oversight of Federal Regulatory and Paperwork
Burdens
The regulatory burden faced by small businesses was a key con-
cern for the Committee during the 118th Congress. Small busi-
nesses often list paperwork burden and red tape as the driving
cause behind their inability to grow or expand. The pace of regula-
tion issued during this was also of substantial concern to the com-
mittee. To that end, the Committee, the Committee sent numerous
letters and held a number of hearings examining the most costly
and burdensome regulations for small businesses.
At the outset of the 118th Congress, the Committee sent letters
to nearly every federal agency seeking an explanation for their
compliance with the Regulatory Flexibility Act (RFA). The Com-
mittee continued to send letters to relevant agencies regarding
their regulations, in total sending 66 letters. The Committee’s in-
vestigation revealed a pattern of agencies not adequately consid-
ering small business interest in the creation of regulation. Further,
the Committee found that the RFA, as implemented, does not suffi-
ciently consider the downstream impacts of regulations on small
businesses, especially small business consumers.
Building on these oversight efforts, the Committee held a series
of hearings on the cost of regulations. On March 8, 2023, the Com-
mittee held the first of its hearings on regulations. Specifically, the
Committee heard testimony on the challenges posed to small busi-
nesses by the Environmental Protection Agency’s (EPA) Waters of
the United States (WOTUS) rule and its cost for manufacturing
and agricultural businesses. On June 22, 2023, the Committee held
a hearing on agency compliance with the RFA and heard how agen-
cies fail to adequately consider the needs of small businesses when
crafting regulations. On October 19, 2023, the Committee furthered
its review of regulations, holding a hearing on the impact of De-
partment of Labor regulations on small businesses. During this
hearing, small businesses testified regarding the difficulty of find-
ing and retaining employees due to these regulations. Further, on
November 8, 2023, the Committee held a similar hearing on De-
partment of Energy rules. During this hearing, the Committee
found that DOE rules disproportionately harm smaller entities.
Moreover, on February 14, 2024, the Committee held a hearing on
the most costly EPA regulations, where the Committee received
testimony from businesses ranging from manufacturing to medical
technology on how they impacted by EPA rules. Furthermore, the
Committee held a hearing on the Financial Crimes Enforcement
Network’s (FinCEN) interpretation of the Corporate Transparency
Act (CTA) and the Beneficial Ownership Rule. During this hearing,
the Committee heard testimony describing the burden these new
rules placed on businesses, and explained how FinCEN’s interpre-
tation doesn’t comport with the CTA’s legislative intent.
Based on the scale of the Committee’s oversight into the impact
of regulations, a number of legislative solutions were offered. On
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July 18, 2023, the Committee debated the Post It Act, which re-
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quires agencies who issue a rule that has a significant impact on
a substantial number of small entities to post follow-up guidance
to the rule on the SBA’s National Ombudsman’s website. Further,
the Committee debated H.R. 3995 which would ensure that for
each fiscal year the cost to small businesses of the administration’s
rulemaking (including the modification or repeal of a rule) is not
greater than zero.
These efforts culminated in a markup intended for bills per-
taining to legislation. During this markup, seven deregulatory bills
were debated by the Committee. H.R. 8033 which better defines a
‘‘factual basis’’ in section 605(b), which is one of the components
agencies have to include with an RFA certification. This bill also
requires agencies to show their work when certifying that a bill
will not have a significant economic impact on a substantial num-
ber of small entities. H.R. 9031 which requires agencies to issue a
report to Congress on how they define a significant economic im-
pact on a substantial number of small entities. H.R. 9032 which
will strengthen that language so that agencies and Main Street
alike can better understand how these rules impact America’s busi-
nesses. H.R. 9030 which requires agencies to include the North
American Industry Classification System (NAICS) codes of small
entities primarily impacted by any rule and a plain language sum-
mary on the agency’s website within three days of the agenda’s
publication in the Federal Register. H.R. 9085, which limits agen-
cies’ ability to delay the review of regulations to only one year as
opposed to five and requires an explanation for why they are delay-
ing the review. H.R. 9033 which expands Small Business Regu-
latory Enforcement Fairness Act (SBREFA) panels to the Depart-
ment of Labor (DOL). Lastly the Committee debated, H.R. 7198
which adds additional steps that could be taken should the govern-
ment fail to adhere to the requirements in the RFA.
Subpart 6—Oversight of Federal Tax Policy
During the 118th Congress, the Committee sought to ensure that
the federal tax system was amenable to the needs of small busi-
nesses. To that end, the Committee held numerous hearings where
vital portions of the tax code were discussed. On April 18, 2023, the
Committee held a hearing on certain provision of the Tax Cuts and
Jobs Act (TCJA) expiring. During this hearing, the Committee
heard testimony regarding the importance of reintroducing a num-
ber of expiring provisions within the TCJA. Further, on June 6,
2023, the Committee held a hearing on how the tax code could be
adjusted to better support small businesses and how these adjust-
ments could increase the amount of investment going to small busi-
nesses. The Committee further probed these issues during its April
10, 2024, hearing.
In addition to its concerns with the tax code, the Committee also
sought to ensure that the SBA properly followed its debt collection
strategies. Among these steps is reporting forgiven debt on form
1099C to the IRS. This issue was raised during the Committees
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March 20, 2024, hearing with Administrator Guzman.
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Oversight of Trade and Intellectual Property Policy
During the 118th Congress, the Committee’s key concern regard-
ing trade was ensuring that small businesses were able to import
the materials they need to operate and export their products to
consumers. To that end, on February 28, 2024, the Committee sent
a letter to President Biden and the Department of Energy following
its decision to withhold export license for newly constructed
Liquified Natural Gas (LNG) terminals. These terminals were con-
structed as a part of the United States’ trade policy following the
Russian invasion of Ukraine and provided small businesses oil and
gas companies a greater ability to export their products. Addition-
ally, Chairman Williams sent a letter the Bureau of Industry and
Security on December 5, 2023, regarding its decisions to issue a 90-
day pause on firearm export licenses.
Further, on February 26, 2024, Chairman Williams sent a letter
to the United States Trade Representative regarding its decision to
not include the SBA for its roundtables, and its decision to abandon
longstanding U.S. trade policy regarding data and code. Addition-
ally, to help small businesses compete against large and foreign en-
tities, the Committee debated the Main Street Competes Act, which
would require the SBA to issue a report on the impact of anti-
competitive behavior and regulations undermine small business
competitiveness.
SUBPART 8—REDUCTIONS IN PROGRAMS AND SPENDING
During the 118th Congress, the Committee conducted hearings
and oversight on the offices and programs that fall within the Com-
mittee’s legislative jurisdiction to find areas that could lead to re-
duction in the federal deficit. In particular, the Committee assessed
whether a reorganization of offices to more critical functions at the
SBA would provide a more effective agency at helping small busi-
nesses to generate growth.
On May 10th, 2023, the Committee held a full committee hearing
titled ‘‘Taking on More Risk: Examining the SBA’S Change to the
7(a) Lending Program Part I’’ to probe a major SBA official on the
rule changes surrounding their flagship 7(a) lending program. The
disapproval of the rule changes was evident from Members from
both sides of the aisle, and that these modified rules to the 7(a)
program will compromise the efficiency and effectiveness of the
SBA. Members expressed that under the SBA’s current direction,
fraud will perpetuate, small businesses will lack access to capital,
and the taxpayer will continue to bear the costs.
On May 17th, 2023, the Committee held a full committee hearing
titled: ‘‘Taking on More Risk: Examining the SBA’s Changes to the
7(a) Lending Program Part II’’ to discuss how the Small Business
Administration’s (SBA) rules and changes to their 7(a) lending pro-
gram affect small businesses. Members flagged serious concerns
about whether the SBA is capable of handling these drastic
changes to their flagship lending program. While each rule is prob-
lematic individually, the combination of the two is incredibly trou-
blesome. The witnesses expressed concern about the SBA’s ability
to protect against fraud and conduct proper oversight over the new
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lenders.
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On June 22nd, 2023, the Committee held a full committee hear-
ing titled ‘‘Reviewing the SBA’s Office of Advocacy Report on the
Regulatory Flexibility Act’’ to examine the SBA Office of Advocacy’s
progress under the Regulatory Flexibility Act (RFA) and continue
discussing oversight of federal agency rulemaking. Additionally,
this hearing shed light on the challenges the office still faces and
the prospective changes that need to be made. This hearing high-
lighted the need to continue strengthening oversight on the SBA
and all its auxiliary offices.
On November 14, 2023, the Committee held a full committee
hearing titled, ‘‘Oversight of the SBA’s Office of Entrepreneurial
Development’’ to investigate the effectiveness and efficiency of the
SBA entrepreneurial development programs. This hearing was in-
strumental in highlighting the need to maintain oversight of gov-
ernmental agencies. The SBA has a track record of heedlessly
spending tax dollars and the programs they champion, especially
offered by the Office of Entrepreneurial Development, are con-
tinuing downwardly. The SBA’s Office of Entrepreneurial Develop-
ment needs a revitalization that fully considers and prioritizes the
economic success of Main Street America.
On Wednesday, March 20, 2024, the Committee held a hearing
titled ‘‘Conducting Oversight: Testimony from the Small Business
Administrator’’ to probe the SBA’S Administrator, The Honorable
Isabella Casillas Guzman, by meticulously examining both the op-
erations and budget proposal for Fiscal Year 2025 (FY2025). This
hearing was a clear indication that the SBA is struggling to man-
age its workload effectively. Simply adding more responsibilities or
funding is not the solution, rather, it requires a strategic approach
focused on curtailing wasteful spending, eliminating unnecessary
activities, and having the workforce back in the office.
On Wednesday, May 15, 2024, the Committee held a hearing ti-
tled ‘‘Under the Microscope: Reviewing Key SBA Programs with
Associate Administrator Frost.’’ The purpose of the hearing was to
receive testimony solely from the Associate Administrator of the
SBA’s Office of Capital Access, Ms. Katie Frost, and to inquire
about ongoing issues within the primary SBA lending programs.
Since the beginning of the 118th congress, the House Committee on
Small Business has prioritized the oversight of the SBA and the
auxiliary programs and offices it affiliates. One of the main offices
of contention is the SBA’s Office of Capital Access (OCA). Given
that the SBA has attempted to expand their lending authority, the
OCA still needs considerable improvements to their functions and
processes before any additional funding or resources are allocated
towards the SBA.
On April 19, 2023, the Subcommittee on Oversight, Investiga-
tions, and Regulations held a hearing titled ‘‘Office of Inspector
General Reports to Congress on Investigations of SBA Programs’’
to examine the issues surrounding the Small Business Administra-
tion (SBA) as well as the Inspector General’s reporting on the chal-
lenges the agency continues to face. The hearing highlighted that
the SBA lacks the staff, infrastructure, and the competence to man-
age its already existing and growing portfolio.
The Subcommittee on Economic Growth, Tax, and Capital Access
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held a hearing on Tuesday, April 16, 2024, titled ‘‘Exploring SBA
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Programs: Reviewing the SBIC and SBIR Programs’ Impact on
Small Businesses.’’ The aim of this hearing was to delve into how
the Small Business Investment Company (SBIC) and the Small
Business Innovation Research (SBIR) program have influenced
small businesses and their ability to spur innovation. This hearing
was crucial because small businesses who are novice to government
work, have found major difficulties understanding the confusing
language and debilitating regulations present in government fund-
ing opportunities. This hearing served to spotlight the tangible in-
fluence these programs wield on small businesses and their ability
to grow.
Subpart 9—Programmatic Duplication
During the 118th Congress, the Committee conducted oversight
on the SBA for programs that duplicate the efforts of other federal
agencies. The Committee notes that § 18 of the Small Business Act
prohibits duplication of any effort by the SBA if a program is al-
ready offered by another federal agency unless the SBA expressly
authorizes the duplication.
On November 14, 2023, the House Committee on Small Business
held a full committee hearing titled, ‘‘Oversight of the SBA’s Office
of Entrepreneurial Development’’ to investigate the effectiveness
and efficiency of the SBA entrepreneurial development programs.
The SBA’s Office of Entrepreneurial Development has been flagged
by multiple SBA OIG reports for having duplicative and unauthor-
ized programs. Additionally, the hearing highlighted that programs
within the Entrepreneurship Education Fund and Regional Innova-
tion Clusters (RIC) are duplicative programs that are more costly
than their existing alternatives, wasting taxpayer resources. Per-
haps the most egregious example of wasted taxpayer funds in a du-
plicative program is the Community Navigators program that du-
plicates efforts by SBA’s other programs, such as WBCs and Vet-
eran Business Opportunity Centers.
Æ
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