Report on the Activities of the Committee on Small Business, 116th Congress: Report 116-702
Summary
Report 116-702 of the 116th Congress, 2d Session, Union Calendar No. 585, dated December 29, 2020, on the activities of the Committee on Small Business. A letter of transmittal to Speaker Nancy Pelosi, under Rule XI(1)(d)(1), submits the report, with the name of Chairwoman Nydia M. Velázquez at the end. Closing pages describe a hearing on policies that can upskill the medical services sector, an examination of local workforce boards under the Workforce Innovation and Opportunity Act and community colleges for training in the recovery from the COVID-19 pandemic, and a field hearing in Colorado on November 22, 2019 on education innovations.
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Cite this document
“Report on the Activities of the Committee on Small Business, 116th Congress: Report 116-702.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/crpt-crpt-116hrpt702-crpt-116hrpt702/
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1
Union Calendar No. 585
116TH CONGRESS REPORT
" HOUSE OF REPRESENTATIVES !
2d Session 116–702
REPORT ON THE ACTIVITIES
OF THE
COMMITTEE ON SMALL BUSINESS
116TH CONGRESS
DECEMBER 29, 2020.—Committed to the Committee of the Whole House
on the State of the Union and ordered to be printed
U.S. GOVERNMENT PUBLISHING OFFICE
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42–804 WASHINGTON : 2020
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LETTER OF TRANSMITTAL
HOUSE OF REPRESENTATIVES,
COMMITTEE ON SMALL BUSINESS,
Washington, DC, December 29, 2020.
Hon. NANCY PELOSI,
Speaker, House of Representatives,
Washington, DC.
DEAR SPEAKER PELOSI: In accordance with Rule XI(1)(d)(1) of the
Rules of the House of Representatives, I respectfully submit the ac-
tivities report of the Committee on Small Business for the 116th
Congress.
Sincerely,
NYDIA M. VELÁZQUEZ,
Chairwoman.
(III)
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CONTENTS
Page
Letter of Transmittal ............................................................................................... III
Jurisdiction of the Committee ................................................................................ 1
Rules of the Committee ........................................................................................... 1
Membership and Organization of the Committee ................................................. 15
Authorization and Oversight Plan ......................................................................... 17
Legislative Activities ............................................................................................... 25
Oversight Summary ................................................................................................ 63
Part A—Full Committee Hearings ......................................................................... 63
Part B—Subcommittee Hearings ........................................................................... 97
Part C—Waste, Fraud, Abuse, and Mismanagement ........................................... 131
Part D—Implementation of Oversight Plan .......................................................... 135
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(V)
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Union Calendar No. 585
116TH CONGRESS REPORT
" HOUSE OF REPRESENTATIVES !
2d Session 116–702
REPORT ON THE ACTIVITIES OF THE COMMITTEE ON
SMALL BUSINESS FOR THE 116TH CONGRESS
DECEMBER 29, 2020.—Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
Ms. VELÁZQUEZ, 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 116th 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.
JURISDICTION AND SPECIAL OVERSIGHT FUNCTION
Clause 1(q) of rule X of the Rules of the House of Representatives
of the 116th Congress sets forth the jurisdiction of the Committee
on Small Business as follows—
(1) Assistance to and protection of small business, including fi-
nancial aid, regulatory flexibility, and paperwork reduction.
(2) Participation of small-business enterprises in Federal pro-
curement and Government contracts.
Clause 3(l) of rule X of the Rules of the House of Representatives
for the 116th Congress sets forth the Special Oversight Function of
the Committee on Small Business as follows—
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
ONE HUNDRED SIXTEENTH CONGRESS
1. GENERAL PROVISIONS
(A) Rules of the Committee. The Rules of the House of Rep-
resentatives, in total (but especially with respect to the operations
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of committees Rule X, cl. 1(q), cl. 2, cl. 3(l), and Rule XI), are the
rules of the Committee on Small Business (‘‘Committee’’) to the ex-
tent applicable and are incorporated by reference.
(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.
2. REFERRAL OF BILLS BY THE CHAIR
(A) The Chair will retain consideration of all legislation referred
to the Committee by the Speaker. No action will be required of a
Subcommittee before legislation is considered for report by the
Committee. Subcommittee chairs, pursuant to the rules set out
herein, may hold hearings on any bill referred to the Committee.
3. 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 Chairman and Ranking Mem-
ber 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, Agriculture, Trade,
and Entrepreneurship
This Subcommittee (which will consist of six (6) Democratic
Members and four (4) Republican Members) will address poli-
cies that enhance rural economic growth, increasing America’s
energy independence and ensuring that America’s small busi-
nesses can compete effectively in a global marketplace.
• Oversight of agricultural policies.
• Oversight of environmental issues and regulations (includ-
ing agencies such as the Environmental Protection Agency and
the Army Corps of Engineers).
• Oversight of energy issues, including expansion of domes-
tic resources, whether they are renewable or non-renewable.
• Oversight of international trade policy with particular em-
phasis on agencies that provide direct assistance to small busi-
nesses, such as: the Small Business Administration’s (SBA) Of-
fice of International Trade, the Department of Commerce’s
United States Export Assistance Centers, the Department of
Agriculture’s Foreign Agricultural Service, and the Export-Im-
port Bank.
• Oversight of infringement of intellectual property rights by
foreign competition.
• Oversight of SBA entrepreneurial development programs,
including Small Business Development Centers, Women’s Busi-
ness Centers, Veteran Business Outreach Centers, and
SCORE.
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(2) Subcommittee on Innovation and Workforce Development
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This Subcommittee (which will consist of six (6) Democratic
Members and four (4) Republican Members) will address how
innovation promotes economic growth and job creation by small
businesses. In addition, the Subcommittee will examine small
business job growth through the creation and adoption of ad-
vanced technologies. The Subcommittee will review the broad
scope of workforce issues that affect the ability of small busi-
nesses to obtain and maintain qualified employees.
• Oversight of all federal policies that affect the workforce
including, but not limited to, the roles of the Department of
Labor and the National Labor Relations Board.
• Oversight of workforce issues, including but not limited to
health care, retirement, and labor challenges facing small busi-
nesses.
• Oversight of general technology issues, including intellec-
tual property policy in the United States.
• Oversight of United States telecommunications policies in-
cluding, but not limited to, the National Broadband Plan and
allocation of electromagnetic spectrum.
• Oversight of the Small Business Innovation Research Pro-
gram.
• Oversight of the Small Business Technology Transfer Pro-
gram.
(3) Subcommittee on Economic Growth, Tax, and Capital Ac-
cess
This Subcommittee (which will consist of six (6) Democratic
Members and four (4) Republican Members) will evaluate the
operation of the financial markets in the United States and
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.
• Implementation of the Dodd-Frank Wall Street Reform
and Consumer Protection Act.
• SBA financial assistance programs, including guaranteed
loans, microloans, certified development company loans, and
small business investment companies.
• Oversight of the Department of Agriculture business and
industry guaranteed loan program.
• Oversight of general tax policy affecting small businesses.
• The management of the SBA disaster loan program.
(4) Subcommittee on Investigations, Oversight, and Regula-
tions
This Subcommittee (which will consist of six (6) Democratic
Members and four (4) Republican Members) will probe the effi-
cient operation of government programs that affect small busi-
nesses, including the SBA, and develop proposals to make
them operate in a more cost-effective manner. This Sub-
committee also will review the regulatory burdens imposed on
small businesses and how those burdens may be alleviated.
• Oversight of general issues affecting small businesses and
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• Oversight of the management of the SBA.
• Oversight of the SBA Inspector General.
• Implementation of the Regulatory Flexibility Act.
• Oversight of the Office of Information and Regulatory Af-
fairs at the Office of Management and Budget.
• Use of the Congressional Review Act.
• Transparency of the federal rulemaking process as re-
quired by the Administrative Procedure and Data Quality Acts.
• Implementation of the Paperwork Reduction Act.
(5) Subcommittee on Contracting and Infrastructure
This Subcommittee (which will consist of six (6) Democratic
Members and four (4) Republican Members) will assess the
federal procurement system, including those programs de-
signed specifically to enhance participation by small businesses
in providing goods and services to the federal government. The
Subcommittee will review the broad scope of opportunities
available 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 con-
tracting marketplace.
• All contracting programs established by the Small Busi-
ness Act, including HUBZone, 8(a), Women-, and Service Dis-
abled Veteran-Owned Small Business Programs.
• Technical assistance provided to federal contractors and
prospective contractors through SBA personnel, Offices of
Small and Disadvantaged Business Utilization, and Procure-
ment Technical Assistance Centers.
• The SBA Surety Bond guarantee program.
• General oversight of programs available to small busi-
nesses in modernizing and strengthening the nation’s infra-
structure.
(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
that conflict with those held by other Subcommittees of the Com-
mittee.
4. COMMITTEE STAFF
(A) Majority Staff. The employees of the Committee, except those
assigned to the Minority as provided below, shall be appointed and
assigned, and may be removed by the Chair of the Committee. The
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
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the Minority shall be appointed and assigned, and their remunera-
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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.
5. MEETINGS
(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 may dispense with the meeting of the Com-
mittee, if in the sole discretion of the Chair, there is no need for
such meeting.
(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 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, de-
termines that there is good cause to call the meeting on less notice
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
before the meeting. Such material also shall be made available to
the public at least 24 hours in advance in electronic form.
(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.
6. NOTICE AND ANNOUNCEMENT OF HEARINGS
(A) Announcement of Hearings. Public announcement of the date,
place, and subject matter of any hearing to be conducted by the
Committee shall be made no later than seven (7) calendar days be-
fore the commencement of the hearing. To the extent possible, the
seven days shall be counted from 168 hours before the time of the
Committee’s hearing.
(B) Exception. 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.
(C) Witness Lists. Unless the Chair determines it is impracti-
cable to do so, the Committee shall make a tentative witness list
available at the time it makes the public announcement of the
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hearing. If a tentative witness list is not made available at the
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time of the announcement of the hearing, such witness list shall be
made available as soon as practicable after such announcement is
made. A final witness list shall be issued by the Committee no
later than 48 hours prior to the commencement of the hearing.
(D) Hearing Material. 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 pro-
vided by the Chair to all Members, whether provided prior to or at
the hearing, shall be placed on the Committee website no later
than 48 hours after the commencement of the hearing, unless such
material contains sensitive or classified information, in which case
such material shall be handled pursuant to Rule 16 of the Commit-
tee’s Rules.
7. MEETINGS AND HEARINGS OPEN TO THE PUBLIC
(A) Meetings. Each meeting of the Committee or its Subcommit-
tees for the transaction of business, including the markup of legis-
lation, shall be open to the public, including to radio, television,
and still photography coverage, except as provided by House Rule
XI, cl. 4. If the majority of Members of the Committee or Sub-
committee 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 mat-
ters to be considered would endanger national security, would com-
promise sensitive law enforcement information, or would tend to
defame, degrade, or incriminate any person or otherwise would vio-
late 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 pub-
lic.
(B) 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 hearings.
Notwithstanding the requirements of the preceding sentence, a ma-
jority 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-
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cussing whether the testimony or evidence to be received would en-
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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.
(C) 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.
(D) Non-Participatory Attendance by Other Members of the
House. No Member of the House may be excluded from non-
participatory attendance at any hearing of the Committee or any
Subcommittee, unless the House of Representatives shall by major-
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.
(E) 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.
(F) 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.
8. 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
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the preceding paragraph shall not apply if the Committee holds a
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8
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. In addition, the witness shall
provide 25 copies of the written testimony by the commence-
ment of the hearing. The Chair may waive the requirement by
the witness providing 25 copies in which case the Committee
or Subcommittee shall provide the 25 copies.
(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
Committee website no later than 24 hours after receipt of such ma-
terial.
(H) Questioning of Witnesses. Except when the Committee
adopts a motion pursuant to subdivisions (B) and (C) of clause
2(i)(2) of Rule XI of the Rules of the House, Committee Members
may question 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 witness 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
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as set forth in Rule XI, cl. 2(j)(B). No Member may be recognized
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9
for a second period of interrogation, subject to the 5-minute rule,
until each Member present, who wishes to be recognized, has been
recognized at least once.
(I) Order of Questioning. The Chair of the Committee or Sub-
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 Members 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 Com-
mittee, if allowed by the Chair, may be recognized for questioning
of witnesses but only after all Committee Members have first been
recognized.
(J) Consideration of Ratio. In recognizing Members to question
witnesses, the Chair may take into consideration the ratio of ma-
jority and minority Members present in such a manner as to not
disadvantage the Members of either party.
9. QUORUM
(A) Determining a Quorum. A quorum, for purposes of reporting
a measure or recommendation, shall be a majority of the Com-
mittee Members.
(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. The Chair of the Com-
mittee or Subcommittee shall exercise reasonable comity by wait-
ing for the Ranking Minority Member even if a quorum is present
before striking the gavel to commence the hearing. For hearings
held by the Committee or a Subcommittee in a location other than
the Committee’s hearing room in Washington, DC, a quorum shall
be deemed to be present if the Chair of the Committee or Sub-
committee is present.
10. 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
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11. SUBPOENAS
(A) Authorization and Issuance. A subpoena may be authorized
and issued by the Committee in the conduct of any investigation
or series of investigations or activities to require the attendance
and testimony of such witness and the production of such books,
records, correspondence, memoranda, papers and documents, as
deemed necessary. Such subpoena shall be authorized by a major-
ity of the full Committee. The requirement that the authorization
of a subpoena require a majority vote may be waived by the Rank-
ing Minority Member of the Committee.
(B) Issuance During Congressional Recess. The Chair may issue
a subpoena, in consultation with the Ranking Minority Member,
when the House is out for session for more than three legislative
days.
12. 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 Chair
shall allow an appropriate period for the provision thereof and may
adjourn the markup to provide sufficient time for the provision of
such written amendment. Such period or adjournment 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.
13. 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 5 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
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14. COMMITTEE RECORDS
(A) The Committee shall keep a complete record of all actions,
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 Com-
mittee, 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 description of
the amendment, motion, order, or other proposition, the name of
the Member voting for and against such amendment, motion, order,
or other proposition, and the names of Members present but not
voting. For any amendment, motion, order, or other proposition de-
cided by voice vote, the record shall include a description and
whether the voice vote was in favor or against.
(B) Transcripts. The Committee shall keep 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.
15. COMMITTEE WEBSITE
(A) The Chair shall maintain an official Committee website for
the purpose of furthering the Committee’s legislative and oversight
responsibilities, including communicating information about Com-
mittee’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.
16. 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
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(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
the Committee or Subcommittee deems to be sensitive enough
to require special handling, before receiving access to such in-
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. With respect to information
and materials provided to the Committee by the Executive
Branch or an independent 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
Subcommittee involved, after consultation with the Executive
Branch or independent agency.
(12) Other materials in the possession of the Committee are
to be handled in the accordance with normal practices and tra-
ditions of the Committee.
17. OTHER PROCEDURES
(A) The Chair of the Committee may establish such other proce-
dures and take such actions as may be necessary to carry out the
foregoing rules or to facilitate the effective operation of the Com-
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18. AMENDMENTS TO COMMITTEE RULES
(A) 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.
19. 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 116th 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
OF THE
COMMITTEE ON SMALL BUSINESS
ONE HUNDRED SIXTEENTH CONGRESS
Committee on Small Business
(Ratio: 14–10)
Nydia Velázquez, New York, Chairwoman
Democrats Republicans
ABBY FINKENAUER, Iowa STEVE CHABOT, Ohio, Ranking Member
JARED GOLDEN, Maine AUMUA AMATA COLEMAN RADEWAGEN,
ANDY KIM, New Jersey American Samoa, Vice Ranking Member
JASON CROW, Colorado TROY BALDERSON, Ohio
SHARICE DAVIDS, Kansas KEVIN HERN, Oklahoma
KWEISI MFUME, Maryland JIM HAGEDORN, Minnesota
JUDY CHU, California PETE STAUBER, Minnesota
DWIGHT EVANS, Pennsylvania, Vice Chair TIM BURCHETT, Tennessee
BRAD SCHNEIDER, Illinois ROSS SPANO, Florida
ADRIANO ESPAILLAT, New York JOHN JOYCE, Pennsylvania
ANTONIO DELGADO, New York DAN BISHOP, North Carolina
CHRISSY HOULAHAN, Pennsylvania
ANGIE CRAIG, Minnesota
February 26, 2019—Ms. Angie Craig, Minnesota, was elected to the Committee, H. Res.
148.
September 25, 2019—Mr. Trent Kelly, Mississippi, resigned from the Committee.
September 26, 2019—Mr. Dan Bishop, North Carolina, was elected to the Committee, H.
Res. 596.
May 7, 2020—Mr. Marc Veasey, Texas, resigned from the Committee.
May 8, 2020—Mr. Kweisi Mfume, Maryland, was elected to the Committee, H. Res. 954.
SUBCOMMITTEE MEMBERSHIPS
Subcommittee on Rural Development, Agriculture, Trade, and
Entrepreneurship
Abby Finkenauer, Iowa, Chairwoman
JARED GOLDEN, Maine JOHN JOYCE, Pennsylvania, Ranking Member
JASON CROW, Colorado AUMUA AMATA COLEMAN RADEWAGEN,
ANGIE CRAIG, Minnesota American Samoa
NYDIA VELÁZQUEZ, New York [Ex Officio] JIM HAGEDORN, Minnesota
DAN BISHOP, North Carolina
STEVE CHABOT, Ohio [Ex Officio]
(15)
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Subcommittee on Innovation and Workforce Development
Jason Crow, Colorado, Chairman
CHRISSY HOULAHAN, Pennsylvania TROY BALDERSON, Ohio, Ranking Member
ABBY FINKENAUER, Iowa TIM BURCHETT, Tennessee
ANDY KIM, New Jersey KEVIN HERN, Oklahoma
SHARICE DAVIDS, Kansas JOHN JOYCE, Pennsylvania
NYDIA VELÁZQUEZ, New York [Ex Officio] STEVE CHABOT, Ohio [Ex Officio]
Subcommittee on Economic Growth, Tax, and Capital Access
Andy Kim, New Jersey, Chairman
SHARICE DAVIDS, Kansas KEVIN HERN, Oklahoma, Ranking Member
BRAD SCHNEIDER, Illinois ROSS SPANO, Florida
ADRIANO ESPAILLAT, New York AUMUA AMATA COLEMAN RADEWAGEN,
ANTONIO DELGADO, New York American Samoa
JASON CROW, Colorado PETE STAUBER, Minnesota
NYDIA VELÁZQUEZ, New York [Ex Officio] STEVE CHABOT, Ohio [Ex Officio]
Subcommittee on Investigations, Oversight, and Regulations
Judy Chu, California, Chairwoman
DWIGHT EVANS, Pennsylvania ROSS SPANO, Florida, Ranking Member
ANGIE CRAIG, Minnesota TIM BURCHETT, Tennessee
NYDIA VELÁZQUEZ, New York [Ex Officio] STEVE CHABOT, Ohio [Ex Officio]
Subcommittee on Contracting and Infrastructure
Jared Golden, Maine, Chairman
JUDY CHU, California PETE STAUBER, Minnesota, Ranking Member
NYDIA VELÁZQUEZ, New York [Ex Officio] JIM HAGEDORN, Minnesota
TROY BALDERSON, Ohio
STEVE CHABOT, Ohio [Ex Officio]
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AUTHORIZATION AND OVERSIGHT PLAN OF
THE COMMITTEE ON SMALL BUSINESS
ONE HUNDRED SIXTEENTH CONGRESS
Ms. Velázquez, from 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, cl. 2(d)(1) of the Rules of the House requires each stand-
ing Committee to adopt an oversight plan for the two-year period
of the Congress and to submit the plan to the Committees on Over-
sight and Reform and House Administration not later than March
1 of the first session of the Congress. Under Rule X, the Committee
has oversight authority to investigate and examine any matter af-
fecting small business. This Report reflects that broad oversight ju-
risdiction.
OVERSIGHT OF FEDERAL CAPITAL ACCESS PROGRAMS
The Committee will conduct hearings and investigations into
Small Business Administration (SBA) and other federal agencies
that provide capital to America’s entrepreneurs that may include
any or all of the following, as well as matters brought to the atten-
tion of the Committee subsequent to the filing of this Report:
• Effectiveness of the capital access programs to generate
jobs in the fastest growing small businesses.
• Whether lenders are meeting their goals to lend to small
businesses and create jobs.
• Adequacy of SBA oversight of its lending partners to en-
sure that federal taxpayers are properly protected.
• Capabilities of the SBA information technology to manage
the loan portfolio.
• Whether SBA rules, regulations, and guidance result in
transparent and reasoned decision making with respect to cap-
ital access programs.
• Assessment of credit-scoring algorithms as a replacement
for individual credit assessment by SBA and its lending part-
ners.
• 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.
• Whether SBA disaster loan program and its oversight en-
sure that small businesses are able to revive and rebuild com-
munities.
(17)
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• Review the recent change by SBA for fee waivers and the
impact moving from a dollar limitation to a geographic deter-
mination will have on small businesses.
• Efficacy and duplication of federal capital access programs
offered by the Department of Agriculture to small businesses
in rural areas.
• Utilization by small businesses of export capital programs
at the Export-Import Bank and the Overseas Private Invest-
ment Corporation.
• Study the need to enhance the 7(a) and Certified Develop-
ment Company programs so that they are more effective in
reaching borrowers unable to secure conventional loans.
• Analyze the Microloan program with the intent of making
it more affordable for borrowers and reducing barriers to its
growth.
• Examine methods to enhance equity financing to meet the
needs of small business borrowers wherein debt financing is
not appropriate and how SBA programs may be used to in-
crease equity financing.
• 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.
• Implementation of crowdfunding and other provisions of
the Jumpstart Our Business Startups Act, Pub. L. No. 112–
106.
• Continued oversight and analysis of the role that the SBA
secondary market plays in small business finance and the ef-
fectiveness of changes made by SBA to the pooling program es-
tablished in the Federal Register Notice of October 16, 2017.
• Review and oversight into the Master Reserve Fund at
SBA.
• 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.
• Implementation of changes made to increase oversight of
the 7(a) loan program established by Pub. L. No. 115–189, the
Small Business 7(a) Lending Oversight Reform Act of 2018.
• Examination of the Express Bridge Loan Pilot Program for
disaster recovery lending for small businesses and its perform-
ance after recent disasters, such as Hurricanes Harvey, Irma,
and Maria and numerous wildfires.
• Investigate franchising contracts to learn how SBA loans
are being utilized, default rates, and whether small business
owners are being harmed in case improvements in the SBA
franchise directory can be made.
• The effectiveness of SBA in minimizing risk to the tax-
payer in the SBA capital access programs.
In performing oversight, the Committee will focus on particularly
risky aspects of financial assistance programs including, but not
limited to, commercial real estate refinancing, premier certified
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lenders, participating security small business investment compa-
nies, small business lending companies, express lenders, and loan
programs utilizing simplified lending applications.
OVERSIGHT OF SBA AND OTHER FEDERAL ENTREPRENEURIAL
DEVELOPMENT PROGRAMS
The Committee will conduct hearings and investigations into the
SBA programs that provide training and advice to small businesses
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:
• Examining effectiveness of SBA entrepreneurial develop-
ment programs in creating jobs at startups and traditional
firms.
• Suggesting methods for enhancing coordination among fed-
eral agencies in aiding entrepreneurs, including, but not lim-
ited to, businesses located in underserved areas, such as rural
and low-income communities and those seeking to provide
goods and services in the federal procurement marketplace.
• Enhancing the efficacy and utilization of the Manufac-
turing Extension Partnership at the Department of Commerce,
including developments in renewable energy.
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:
• Whether fraud or other problems exist in the federal gov-
ernment contracting programs overseen by the SBA including
the 8(a), HUBZone, service-disabled veteran, women-owned
contracting, and Small Business Innovation Research pro-
grams.
• Effectiveness of SBA contracting programs to increase par-
ticipation by small businesses in federal procurement.
• Effectiveness of federal agency protections against contract
bundling and consolidation.
• The accuracy and utility of SBA size standards and federal
procurement databases.
• 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.
• Development of federal acquisition policies and whether
small businesses have sufficiently effective voice in develop-
ment of such policies.
• Cost-effectiveness of outsourcing government work to pri-
vate enterprise rather than expanding the government to do
provide the good or service internally (i.e., government
insourcing).
• Implementation and efficacy of changes made in small
business federal procurement programs arising from the enact-
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ment of the National Defense Authorization Acts for FYs 2012–
2019.
• Examination of the Small Business Innovation Research
Program as modified by the National Defense Authorization
Act for FY 2012, Pub. L. No. 112–81, including, but not limited
to, increased efforts at commercializing federally-funded tech-
nology.
• Implementation and efficacy of changes made to the Small
Business Innovation Research Program arising from the enact-
ment of the John S. McCain National Defense Authorization
Act for Fiscal Year 2019, Pub. L. No. 115–232.
• Implementation and efficacy of changes made to the
HUBZone program arising from the enactment of the National
Defense Authorization Act for Fiscal Year 2018, Pub. L. No.
115–91.
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 the 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:
• The appropriate mission of the SBA.
• Whether agency employees in the field are empowered to
assist small businesses.
• Duplication of offices and missions at SBA headquarters.
• Effectiveness of personnel management to ensure that em-
ployees are rewarded for assisting small businesses.
• Capabilities of SBA employees to provide proper assistance
to small business owners.
• Review the agency’s cooperative agreements, partnerships
and co-sponsorships.
• Continue to assess the adequacy of the agency’s budgetary
requests, financial management, and reporting goals.
• Agency personnel capabilities to properly manage loan de-
faults to maximize recovery of collateral.
• Whether SBA improperly utilizes statutory authority to
create untested initiatives and the procedures by which the
agency develops such programs.
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
burdensome federal rules, reporting and recordkeeping require-
ments affecting small businesses that may include any or all of the
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following, as well as matters brought to the attention of the Com-
mittee subsequent to the filing of this Report:
• Identify specific rules and regulations already issued or at
the proposed rule stage to assess the impact on small busi-
nesses.
• Examine agency compliance with the Regulatory Flexi-
bility Act and Paperwork Reduction Act.
• Oversee, to the extent relevant, the work of the Office of
Information and Regulatory Affairs at the Office of Manage-
ment and Budget and the Chief Counsel for Advocacy at the
Small Business Administration to ensure that they are ful-
filling their mission to advocate vigorously on behalf of Amer-
ica’s small business owners in regulatory matters at federal
agencies.
• Identify regulations that impose unnecessary barriers to
competitive market entry by small businesses and place small
businesses at a competitive disadvantage with respect to larger
competitors.
• Identify regulations that fail to minimize recordkeeping
and reporting requirements, including the elimination of dupli-
cative requirements as required by the Paperwork Reduction
Act.
• Assess whether small businesses are provided sufficient
compliance assistance, including small entity compliance
guides issued by agencies as mandated by the Small Business
Regulatory Enforcement Fairness Act.
• Evaluate the need to amend and further strengthen the
Regulatory Flexibility Act and the Paperwork Reduction Act to
improve agency compliance with the laws and ensure that
small businesses are not unnecessarily burdened by regula-
tions.
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-
enue Service’s (IRS) collection of taxes 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:
• 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.
• Examination of the structure of the tax code in order to
simplify compliance for small businesses.
• Assessment of the recordkeeping and reporting require-
ments associated with tax compliance and suggestions for re-
ducing such burdens on small businesses.
• Impact of the tax reform law, Pub. L. No. 115–97, on small
business tax liabilities and compliance and its harm to eco-
nomic growth and job creation.
• Efficiencies at the IRS that improve the interaction be-
tween the government and small business owners.
• Inefficiencies at the IRS that force small businesses to di-
vert capital from job growth to tax compliance.
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• Investigate incentives that may be used to support the
growth of the micro-entrepreneur.
• Analyze tax code restructuring to enhance the ability of
small businesses to offer retirement benefits through lowering
their costs.
OVERSIGHT OF HEALTH CARE POLICY
The Committee will conduct hearings and investigations into fed-
eral health care policy (such as Medicare and Medicaid), as well as
matters brought to the attention of the Committee subsequent to
the filing of this Report:
• The availability of health insurance in the federal market-
places established by the Patient Protection and Affordable
Care Act.
• Implementation and efficacy of changes made to health
care policy through various laws enacted throughout the 115th
Congress, including but not limited to the tax reform law, Pub.
L. No. 115–97.
• The impact of the Patient Protection and Affordable Care
Act, Medicare and Medicaid on the ability of physicians, phar-
macists, and allied health care providers to offer the best care
possible to patients.
• Examination of increases in efficiencies that will improve
the provision of health care while reducing costs to small busi-
nesses that offer their workers’ health insurance.
OVERSIGHT OF ENERGY POLICY
The Committee will conduct hearings and investigations into en-
ergy policy to reduce the cost of energy and increase renewable en-
ergy 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:
• Innovations developed by small businesses that create
greater reliance on renewable energy.
• Federal regulatory policies that increase dependence on re-
newable energy and decrease energy costs.
• Policies needed to incentivize production of renewable en-
ergy in the United States.
• Examination of commercialization of research in renewable
energy.
• Federal regulations or policies that affect energy costs for
small businesses.
• Investigate methods to increase energy efficiency and im-
prove resource conservation practices for small businesses.
• Federal initiatives to streamline business operations and
reduce energy costs for small firms.
The primary thrust of the Committee’s efforts will focus on ef-
forts to use the innovation of America’s entrepreneurs to fuel the
drive for greater energy independence, including the development
of renewable energy products.
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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:
• Impact of free trade agreements to increase exports by
American small businesses.
• Oversight of SBA’s Office of International Trade and the
agency’s efforts to promote small business exports.
• 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.
• Whether the federal government is doing enough to protect
the intellectual property rights of small businesses by foreign
competitors.
• The impact of federal intellectual property policies, par-
ticularly patents and copyrights, to protect the innovations of
American entrepreneurs.
• Efforts to increase exports by small businesses.
• Whether the United States Trade Representative and De-
partment of Commerce sufficiently protect the interests of
small businesses in the negotiation of free trade agreements.
• Whether the United States Trade Representative takes po-
sitions at the World Trade Organization that sufficiently pro-
mote the interests of American small businesses.
• Measure the performance of federal trade programs, which
seek to reduce small firms’ costs of expanding into inter-
national markets, including those administered by the SBA,
Departments of Commerce and Agriculture, the Export-Import
Bank, and the Overseas Private Investment Corporation.
• Evaluate the implementation of the National Export Pro-
motion Strategy, particularly its focus on small businesses.
• Examine efforts methods to increase the representation of
small business interests in the negotiation of new trade agree-
ments and enforcement of existing agreements and treaties.
• Evaluate the availability and quality of data measuring
the contributions to the nation’s trade performance by small
businesses, including information gathered by the Department
of Commerce and the United States Trade Representative.
• Assess current trade duties and tariffs, both domestic and
foreign, to evaluate their impact on American small businesses,
economic growth, and job creation.
• Conduct analysis on the importance of intellectual prop-
erty rights to underserved entrepreneurs and how best to in-
crease their representation of such rights.
OVERSIGHT OF AGRICULTURE POLICY
The Committee will conduct hearings and investigations into ag-
riculture policies that may include any or all of the following, as
well as matters brought to the attention of the Committee subse-
quent to the filing of this Report:
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• Examine the impact of federal policies on family farms,
ranchers, and rural small businesses, including changes made
by the 2018 Farm Bill.
• Evaluate the impact of access to capital issues facing rural
areas, farmers and agribusinesses.
• Analyze the extent to which SBA programs and United
States Department of Agriculture programs overlap and how
they can better coordinate to provide better services and
streamlines assistance to the agriculture community.
• Oversee federal activities to spur economic development in
rural communities.
• Examine ways in which the federal government can en-
hance the use of next-generation technologies in small agri-
culture businesses.
OVERSIGHT OF TECHNOLOGY AND INNOVATION POLICY
The Committee will conduct hearings and investigations into
technology and telecommunications policies 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:
• Examine the impact of federal policies on broadband de-
ployment, particularly in underserved areas.
• Investigate the economic benefits of increasing the speed of
broadband and proposals for funding the Universal Service
Fund.
• Examine the cost and benefits of proposed reforms to the
United States patent system and their impact on small
innovators.
• Evaluate the need to increase IP education and services to
underserved innovators.
• Monitor efforts to assist small businesses in cybersecurity
hygiene and evaluate the role the SBA has in the process to
collect and disseminate information and educate small busi-
nesses.
• Assess the current government-wide initiative to ensure
small technology firms have adequate contracting opportunities
while also protecting government systems through rigorous cy-
bersecurity requirements.
• Examine ways in which the federal government can en-
hance the use of next-generation technologies in small agri-
culture businesses.
OVERSIGHT OF VETERANS’ ENTREPRENEURSHIP POLICY
The Committee will conduct hearings and investigations into vet-
erans’ policies 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:
• Examine how current entrepreneurial and capital assist-
ance programs are accommodating the growing veteran popu-
lation.
• Review federal actions to assist veteran entrepreneurs and
ensure they are consistent with federal small business policy.
• Evaluate the effectiveness of federal programs that seek to
improve veterans’ access to markets and training by imple-
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menting and monitoring enhanced programmatic data collec-
tion.
• Assess whether the federal government is sufficiently co-
ordinating activities and allocating resources appropriately
with regard to veteran entrepreneurship activities and initia-
tives.
• Monitor the transition of federal entrepreneurial programs
from the Department of Veterans’ Affairs to the SBA.
OVERSIGHT OF LABOR AND WORKFORCE POLICY
The Committee will conduct hearings and investigations into
labor and workforce policies 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:
• Review federal actions to assist employers in workforce
training and analyze ways to meet the growing need for more
skilled workers.
• Study the effectiveness of efforts to encourage more under-
served workers to enter fields where skilled labor is needed.
• Evaluate the role immigration policy plays in assisting
small businesses meet their workforce needs and whether the
existing visa system should be reformed.
• Investigate policies to encourage more participation in
labor market through initiatives that can be offered by small
businesses, such as increased minimum wages, paid sick leave,
paid parental leave, and flexible work arrangements.
• Study the role student loan debt plays in entrepreneurship
and methods to address the crisis.
LEGISLATIVE ACTIVITIES
Clause 1(d) of Rule XI of the Rules of the House of Representa-
tives for the 116th Congress requires that each standing com-
mittee, 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 summarizing the legislative activities of that
committee.
INVESTING IN MAIN STREET ACT OF 2019
H.R. 116
Summary
H.R. 116 amends the Small Business Investment Act of 1958 to
permit certain banking entities, subject to the approval of the ap-
propriate federal banking agency, to invest up to 15 percent of
their capital and surplus in one or more small business investment
companies (SBICs), or in any entity established to invest solely in
SBICs.
Legislative History
H.R. 116 was introduced on January 3, 2019 by Representative
Judy Chu (D–CA) and Representative Ralph Norman (R–SC). H.R.
116 passed the House on January 14, 2019 under Suspension of the
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Rules by a vote of 403–2 (Roll Call No. 30). H.R. 116 was received
in the Senate and read twice and referred to the Committee on
Small Business and Entrepreneurship on January 15, 2019.
SMALL BUSINESS ADVOCACY IMPROVEMENTS ACT
H.R. 128
Summary
H.R. 128 amends the Small Business Act to expand the primary
functions and additional duties of the Office of Advocacy of the
Small Business Administration to include examining the role of
small businesses in the international economy and representing the
views and interests of small businesses before foreign governments
and international entities to contribute to regulatory and trade ini-
tiatives that may affect small businesses.
Legislative History
H.R. 128 was introduced on January 3, 2019 by Representative
James Comer (R–KY) and Chairwoman Nydia M. Velázquez (D–
NY). H.R. 128 passed the House on January 8, 2019 under Suspen-
sion of the Rules by voice vote. H.R. 128 was received in the Senate
and read twice and referred to the Committee on Small Business
and Entrepreneurship on January 9, 2019.
EXPANDING CONTRACTING OPPORTUNITIES FOR SMALL BUSINESS ACT
H.R. 190
Summary
H.R. 190 amends the Small Business Act to eliminate the inclu-
sion of option years in the award price for certain sole source con-
tracts (i.e., contracts awarded without a competitive process).
Under current law, option years in the award price for such con-
tracts limit their dollar award threshold. Specifically, the bill re-
vises requirements for the award of these contracts to (1) qualified
Historically Underutilized Business Zone (HUBZone) small busi-
nesses, (2) small businesses owned and controlled by service-dis-
abled veterans, (3) economically disadvantaged small businesses
owned and controlled by women, and (4) small businesses owned
and controlled by women in substantially underrepresented indus-
tries. The Government Accountability Office must evaluate the
policies and practices used by the Small Business Administration
and other federal agencies to ensure that contracting officers are
properly classifying sole source contracts under procurement pro-
grams for businesses owned by women and disabled veterans in the
Federal Procurement Data System.
Legislative History
H.R. 190 was introduced on January 8, 2019 by Representative
Roger Marshall (R–KS) and Representative Bradley Schneider (D–
IL). H.R. 190 was considered under Suspension of the Rules on
January 14, 2019 and passed the House on January 16, 2019, by
a vote of 415–6 (Roll Call No. 36). H.R. 190 was received in the
Senate and read twice and referred to the Committee on Small
Business and Entrepreneurship on January 17, 2019.
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ENCOURAGING SMALL BUSINESS INNOVATION ACT
H.R. 206
Summary
H.R. 206 amends the Small Business Act to modify requirements
of the Small Business Innovation Research (SBIR) and Small Tech-
nology Transfer Research (STTR) programs to require participating
agencies to use part of their allocations to conduct outreach to mi-
norities and underrepresented states by removing the waiver re-
quirement from statute. It also increases financial assistance to
SBIR and STTR companies by utilizing Small Business Investment
Companies (SBICs) and increasing the calculated leverage of these
companies by excluding the amount of any investment made by
SBIR and STTR participants with a cap of 20 percent of the private
capital of that company. Finally, the bill provides an avenue for
more experienced SBIR and STTR companies to mentor new com-
panies.
Legislative History
H.R. 206 was introduced on January 3, 2019 by Representative
Harley Rouda (D–CA). H.R. 206 passed the House on January 14,
2019 under Suspension of the Rules by voice vote. H.R. 206 was re-
ceived in the Senate and read twice and referred to the Committee
on Small Business and Entrepreneurship on January 15, 2019.
CLARITY ON SMALL BUSINESS PARTICIPATION IN CATEGORY
MANAGEMENT ACT
H.R. 226
Summary
H.R. 226 amends the Small Business Act to revise the SBA’s re-
porting requirements to the President and Congress on procure-
ment contracts to include spending data in each best in class des-
ignation (highest current industry performance level) and the num-
ber of and total contract amounts awarded to: (1) qualified Histori-
cally Underutilized Business Zone (HUBZone) small businesses, (2)
small businesses owned and controlled by women, (3) small busi-
nesses owned and controlled by service-disabled veterans, and (4)
small businesses owned and controlled by socially and economically
disadvantaged individuals.
Legislative History
H.R. 226 was introduced on January 3, 2019 by Chairwoman
Nydia M. Velázquez (D–NY) and Ranking Member Steve Chabot
(R–OH). H.R. 226 was considered under Suspension of the Rules on
January 8, 2019 and passed the House on January 9, 2019, by a
vote of 414–11 (Roll Call No. 18). H.R. 226 was received in the Sen-
ate and read twice and referred to the Committee on Small Busi-
ness and Entrepreneurship on January 10, 2019. H.R. 226 was in-
cluded in H.R. 2500, the National Defense Authorization Act for
Fiscal Year 2020. H.R. 2500 was reported, as amended, by the
House Committee on Armed Services on June 19, 2019, and passed
the House on July 12, 2020, by a vote of 220–197 (Roll Call No.
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473). H.R. 226 was included in the final version of the National De-
fense Authorization Act of 2020, (S. 1790).
INCENTIVIZING FAIRNESS IN SUBCONTRACTING ACT
H.R. 227
Summary
H.R. 227 amends the Small Business Act to modify provisions re-
garding the credit given to small business prime contractors for the
use of certain lower-tier subcontractors in order to attain the per-
centage goals specified in their subcontracting plans. Such credit
may be given if the goals pertain only to single contracts with fed-
eral agencies or to two or more contracts with one or more of such
agencies. In addition, the bill requires each contracting agency to
collect and review data on subcontracting plans and establishes a
dispute process for non-payment to subcontractors.
Legislative History
H.R. 227 was introduced on January 3, 2019 by Chairwoman
Nydia M. Velázquez (D–NY) and Representative Trent Kelly (R–
MS). H.R. 227 passed the House on January 8, 2019 under Suspen-
sion of the Rules by voice vote. H.R. 227 was received in the Senate
and read twice and referred to the Committee on Small Business
and Entrepreneurship on January 9, 2019. H.R. 227 was included
in H.R. 2500, the National Defense Authorization Act for Fiscal
Year 2020. H.R. 2500 was reported, as amended, by the House
Committee on Armed Services on June 19, 2019, and passed the
House on July 12, 2020, by a vote of 220–197 (Roll Call No. 473).
H.R. 227 was included in the final version of the National Defense
Authorization Act of 2020, (S. 1790).
STIMULATING INNOVATION THROUGH PROCUREMENT ACT
H.R. 246
Summary
H.R. 246 amends the Small Business Act to provide assistance
to small businesses participating in the Small Business Innovation
Research (SBIR) Program or the Small Business Technology Trans-
fer (STTR) Program. Specifically, the bill requires (1) the Small
Business Administration (SBA) to coordinate with the senior pro-
curement executives of federal agencies participating in SBIR or
STTR programs to assist small businesses participating in such
programs with commercializing research before the business is
awarded a federal contract; (2) the SBA to modify its policy direc-
tives to require procurement center representatives to assist small
businesses participating in SBIR or STTR programs with research-
ing solicitations for federal contracts and submitting bids; and (3)
each Office of Small and Disadvantaged Business Utilization to as-
sist small businesses participating in SBIR or STTR programs with
researching solicitations for federal contracts and submitting bids.
Legislative History
H.R. 246 was introduced on January 4, 2019 by Representative
Abby Finkenauer (D–IA), Chairwoman Nydia M. Velázquez (D–
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NY), and Representative John Curtis (R–UT). H.R. 246 passed the
House on January 14, 2019 under Suspension of the Rules by voice
vote. H.R. 246 was received in the Senate and read twice and re-
ferred to the Committee on Small Business and Entrepreneurship
on January 15, 2019. H.R. 246 was included in H.R. 2500, the Na-
tional Defense Authorization Act for Fiscal Year 2020. H.R. 2500
was reported, as amended, by the House Committee on Armed
Services on June 19, 2019, and passed the House on July 12, 2020,
by a vote of 220–197 (Roll Call No. 473). H.R. 246 was included in
the final version of the National Defense Authorization Act of 2020,
(S. 1790).
ACCESS TO SUFFICIENT CAPITAL FOR EVERYONE IN NATURAL DISASTER
AREAS ACT OF 2019
H.R. 277
Summary
H.R. 277 amends the Small Business Act to make permanent the
temporary increase of the minimum disaster loan amount for which
the Small Business Administration (SBA) may require collateral
from $14,000 to $25,000 for physical damage loans in SBA agency
disaster declarations.
Legislative History
H.R. 277 was introduced on January 8, 2019 by Chairwoman
Nydia M. Velázquez (D–NY) and Ranking Member Steve Chabot
(R–OH). H.R. 277 was reported by the House Committee on Small
Business on June 13, 2019 and passed the House on July 15, 2019
under Suspension of the Rules by voice vote. H.R. 277 was received
in the Senate and read twice and referred to the Committee on
Small Business and Entrepreneurship on July 16, 2019.
SERVICE DISABLED VETERANS SMALL BUSINESS CONTINUATION ACT
H.R. 499
Summary
H.R. 499 provides a technical and clerical amendment to section
3(q)(2) of the Small Business Act (15 U.S.C. 632(q)) to ensure eligi-
ble surviving spouses of veterans who died with less than a 100
percent disability rating are able to maintain their service-disabled
veteran-owned small business (SDVOSB) status for up to three
years following the death of the service-disabled veteran. H.R. 499
aims to create parity in the treatment of surviving spouses between
the service-disabled veteran-owned small business contracting pro-
gram managed by the U.S. Department of Veterans Affairs and
that managed by the Small Business Administration.
Legislative History
H.R. 499 was introduced on January 11, 2019, by Representative
Steve Chabot (R–OH) and Representative Antonio Delgado (D–NY).
H.R. 499 was reported by the House Committee on Small Business
on October 15, 2019. The House passed H.R. 499 on November 13,
2019, under Suspension of the Rules by a vote of 423–0 (Roll Call
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No. 613). H.R. 499 was included in the final version of the National
Defense Authorization Act of 2020, (S. 1790).
VERIFICATION ALIGNMENT AND SERVICE DISABLED BUSINESS
ADJUSTMENT ACT
H.R. 1615
Summary
H.R. 1615 eliminates the certification process offered by the U.S.
Department of Veterans Affairs (VA) and transfers to the Small
Business Administration (SBA) the responsibility of certifying all
veteran-owned and service-disabled veteran-owned small busi-
nesses interested in participating in the VA’s small business con-
tracting program. The bill transfers to the SBA the responsibility
of keeping a database of all certified veteran-owned and service-dis-
abled veteran-owned small businesses, allows the VA to provide the
necessary funds to cover SBA’s costs in certifying veteran-owned
small businesses and, transfers assets of the VA’s Center for
Verification and Evaluation to the SBA. Furthermore, H.R. 1615
requires formal certification of service-disabled veteran-owned
small businesses in SBA’s government-wide contracting program.
Legislative History
H.R. 1615 was introduced on March 07, 2019, by Representative
Trent Kelly (R–MS), Ranking Member Steve Chabot (R–OH),
Chairwoman Nydia Velázquez (D–NY), and Ann Kuster (D–MH).
An amendment offered by Representative Trent Kelly (R–MS) was
agreed to by voice vote. H.R. 1615 was reported, as amended by the
House Committee on Small Business on November 12, 2019 and
passed the House, as amended, on November 13, 2019 under Sus-
pension of the Rules by voice vote. H.R. 1615 was included in H.R.
6395, the William M. (Mac) Thornberry National Defense Author-
ization Act for Fiscal Year 2021. H.R. 6395 was reported, as
amended, by the House Committee on Armed Services on July 9,
2020, and passed the House on July 21, 2020, by a vote of 295–
125 (Roll Call No. 152). H.R. 1615 was included in the final version
of the William M. (Mac) Thornberry National Defense Authoriza-
tion Act of 2021, (H.R. 6395).
SMALL BUSINESS ADVANCE CYBERSECURITY ENHANCEMENTS ACT OF
2019
H.R. 1648
Summary
H.R. 1648 amends the Small Business Act to encourage small
businesses to work with the Federal Government by providing
them additional resources. In order to combat small businesses’ re-
luctance to engage with the Federal Government, this legislation
encourages their collaboration in the following ways: it establishes
Small Business Administration (SBA) Small Business Development
Centers (SBDCs) as the primary interface for federal information
sharing for small businesses; ensures small businesses that share
cyber indicators through SBDCs receive the same protections and
exemptions provided in the Cybersecurity Information Sharing Act
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of 2015; ensures that any policies or rulemaking adopted by any
federal agency as a result of small business cyber information shar-
ing do not unfairly burden small businesses; and expands liability
protections for small businesses that engage with the Federal Gov-
ernment in good faith.
Legislative History
H.R. 1648 was introduced on March 8, 2019, by Ranking Member
Steve Chabot (R–OH) and Chairwoman Nydia Velázquez (D–NY).
H.R. 1648 was referred to the House Committee on Small Business
on March 8, 2019. H.R. 1649 was ordered out of the House Com-
mittee on Small Business on June 13, 2019 by voice vote.
SMALL BUSINESS DEVELOPMENT CENTER CYBER TRAINING ACT OF 2019
H.R. 1649
Summary
H.R. 1649 would establish a cyber counseling certification pro-
gram in Small Business Development Centers (SBDCs) to provide
specific, free-of-charge cyber training for small businesses. The
cyber training provided by the nationwide network of SBDCs will
offer crucial resources for small businesses to plan and implement
cybersecurity protections and combat cyber-attacks.
Legislative History
H.R. 1649 was introduced on March 8, 2019, by Ranking Member
Steve Chabot and Representative Dwight Evans (D–PA). H.R. 1649
was reported by the House Committee on Small Business on June
13, 2019 and passed the House on July 15, 2019, by a voice vote.
On July 16, 2019, the bill was received by the Senate and was
placed on the Senate Legislative Calendar under General Orders.
H.R. 1649 was included in H.R. 2500, the National Defense Author-
ization Act for Fiscal Year 2020. H.R. 2500 was reported, as
amended, by the House Committee on Armed Services on June 19,
2019, and passed the House on July 12, 2020, by a vote of 220 197
(Roll Call No. 473). H.R. 1649 was not included in the final version
of the National Defense Authorization Act of 2020, (S. 1790).
TO AMEND THE SMALL BUSINESS ACT TO REQUIRE THE SMALL BUSI-
NESS AND AGRICULTURE REGULATORY ENFORCEMENT OMBUDSMAN
TO CREATE A CENTRALIZED WEBSITE FOR COMPLIANCE GUIDES, AND
FOR OTHER PURPOSES.
H.R. 2142
Summary
H.R. 2142 requires the Office of the National Ombudsman at the
Small Business Administration to create a centralized, publicly
available website. H.R. 2141 mandates the website provide
hyperlinks to small business compliance guides described under
section 212 of the Small Business Regulatory Enforcement Fairness
Act of 1996 and provide the contact information for the person at
the agency who could provide small businesses with assistance on
the rules within the guides. H.R. 2142 also requires the Ombuds-
man to report on federal agencies’ compliance with the Section 212
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requirements of the Small Business Regulatory Enforcement Fair-
ness Act (SBREFA) in its annual report to Congress.
Legislative History
H.R. 2142 was introduced on April 9, 2019, by Representative
Antonio Delgado (D–NY) and Representative John Joyce (R–PA).
H.R. 2142 was reported by the House Committee on Small Busi-
ness on June 13, 2019 and passed the House by voice vote under
Suspension of the Rules on July 15, 2019. H.R. 2142 was received
in the Senate and referred to the Committee on Small Business
and Entrepreneurship on July 16, 2019.
SBA CYBER AWARENESS ACT
H.R. 2331
Summary
H.R. 2331 requires the SBA to report annually to Congress on (1)
an assessment of SBA’s information technology (IT) and cybersecu-
rity infrastructure; (2) a strategy to increase such infrastructure;
(3) a detailed account of SBA’s IT equipment or interconnected sys-
tem or subsystem of equipment manufactured by an entity that has
its principal place of business in the People’s Republic of China;
and (4) any SBA cybersecurity risk or incident that occurred during
two years before the report, including SBA’s action to respond to
or remediate it.
Legislative History
H.R. 2331 was introduced on April 18, 2019, by Representative
Jason Crow (D–CO), Representative Troy Balderson (R–OH),
Chairwoman Nydia Velázquez (D–NY), and Ranking Member Steve
Chabot (R–OH). H.R. 2331 was reported by the House Committee
on Small Business on June 13, 2019 and passed the House by voice
vote on July 15, 2019. The Senate received the bill on July 16, 2019
and placed it on the Legislative Calendar under General Orders.
H.R. 2331 was included in H.R. 2500, the National Defense Author-
ization Act for Fiscal Year 2020. H.R. 2500 was reported, as
amended, by the House Committee on Armed Services on June 19,
2019, and passed the House on July 12, 2020, by a vote of 220–
197 (Roll Call No. 473). H.R. 2331 was not included in the final
version of the National Defense Authorization Act of 2020, (S.
1790).
CLARIFYING THE SMALL BUSINESS RUNWAY EXTENSION ACT
H.R. 2345
Summary
H.R. 2345 provides for the implementation of the Small Business
Runway Extension Act of 2018 (Runway Act), which became law on
December 17, 2018 and extended the receipts-based size standard
calculation to 5 years. In particular, H.R. 2345 amends section
3(a)(2)(C) of the Small Business Act to clarify that the changes
made by the Runway Act are applicable to the Small Business Ad-
ministration (SBA) and institutes a date by which the SBA must
issue a final rule for its implementation. The bill also aligns the
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size standard based on data to the receipts-based size standard by
changing the calculation to 5 years. Finally, the bill required SBA
to develop a transition plan for small businesses and agencies, to
help them successfully navigate the transition from the previous 3-
year calculation to the new 5-year calculation, as mandated by the
Runway Act.
Legislative History
H.R. 2345 was introduced on April 18, 2019, by Representative
Pete Stauber (R–MN) and Representative Jared Golden (D–ME).
An amendment offered by Representative Jim Hagedorn (R–MN)
was agreed to by voice vote. H.R. 2345 was reported, as amended
by the House Committee on Small Business on June 13, 2019 and
passed the House, as amended, on July 15, 2019, under Suspension
of the Rules by voice vote. H.R. 2345 was included in H.R. 2500,
the National Defense Authorization Act for Fiscal Year 2020. H.R.
2500 was reported, as amended, by the House Committee on
Armed Services on June 19, 2019, and passed the House on July
12, 2020, by a vote of 220 197 (Roll Call No. 473). H.R. 2345 was
not included in the final version of the National Defense Authoriza-
tion Act of 2020, (S. 1790).
SMALL BUSINESS CONTRACTING ACT OF 2019
H.R. 3372
Summary
H.R. 3372 amends the Small Business Act to authorize federal
agencies to double the value of contracts awarded to Puerto Rican
subcontractors for the purpose of obtaining credit towards the
small business prime contracting goal.
Legislative History
H.R. 3372 was introduced on June 19, 2019 by Chairwoman
Nydia M. Velázquez (D–NY) and Representative Gilbert Cisneros
(D–CA). H.R. 3372 was included in H.R. 2500, the National De-
fense Authorization Act for Fiscal Year 2020. H.R. 2500 was re-
ported, as amended, by the House Committee on Armed Services
on June 19, 2019, and passed the House on July 12, 2020, by a vote
of 220–197 (Roll Call No. 473). H.R. 3372 was included in the final
version of the National Defense Authorization Act of 2020, (S.
1790).
SMALL BUSINESS TERRITORIES EQUITY ACT
H.R. 3428
Summary
H.R. 3428 amends the Small Business Act to authorize federal
agencies to double the value of contracts awarded to small busi-
nesses in the U.S. Virgin Islands, American Samoa, Guam, or the
Northern Mariana Islands for the purpose of obtaining credit to-
wards the small business contracting goal.
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Legislative History
H.R. 3428 was introduced on June 19, 2019 by Chairwoman
Nydia M. Velázquez (D–NY), Representative Stacey Plaskett (D–
VI), Representative Gregorio Sablan (D–MP), Representative Mi-
chael San Nicolas (D–GU), and Representative Aumua Amata Cole-
man Radewagen (R–AS). H.R. 23428 was included in H.R. 2500,
the National Defense Authorization Act for Fiscal Year 2020. H.R.
2500 was reported, as amended, by the House Committee on
Armed Services on June 19, 2019, and passed the House on July
12, 2020, by a vote of 220–197 (Roll Call No. 473). H.R. 3372 was
included in the final version of the National Defense Authorization
Act of 2020, (S. 1790).
VETERAN ENTREPRENEURSHIP TRAINING ACT OF 2019
H.R. 3537
Summary
H.R. 3537 amends the Small Business Act to codify for five years
the Boots to Business program, which helps transitioning
servicemembers launch and grow small businesses. The bill also
sets the goals of 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 business,
and launch a small business. The bill delineates the program com-
ponents, which include a two-day, in-person entrepreneurship pro-
gram. It also gives SBA the authority to collaborate with public
and private entities to develop the curricula; and it ensures Vet-
erans Business Outreach Centers (VBOCs) regularly participate in
the program, and to the reasonable maximum extent, allows the
participation of other resource partners as well.
Legislative History
H.R. 3537 was introduced on June 27, 2019, by Representative
Bradley Schneider (D–IL) and Representative Ross Spano (R–FL).
H.R. 3537 was reported by the House Committee on Small Busi-
ness on October 15, 2019 and passed the House under Suspension
of the Rules on November 13, 2019, by a vote of 424–1 (Roll Call
No. 612). H.R. 3537 was received in the Senate and read twice and
referred to the Committee on Small Business and Entrepreneur-
ship on November 14, 2019. H.R. 3537 was included in H.R. 2500,
the National Defense Authorization Act for Fiscal Year 2020. H.R.
2500 was reported, as amended, by the House Committee on
Armed Services on June 19, 2019, and passed the House on July
12, 2020, by a vote of 220–197 (Roll Call No. 473). H.R. 3537 was
not included in the final version of the National Defense Authoriza-
tion Act of 2020, (S. 1790).
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ENSURING SAFE CAPITAL ACCESS FOR ALL SMALL BUSINESS ACT
H.R. 3540
Summary
H.R. 3540 amends the Small Business Act to removes cannabis
from the schedule of controlled substances, and it prohibits the
Small Business Administration from declining to provide certain
small business loans to an eligible entity solely because it is a can-
nabis-related legitimate business or service provider.
Legislative History
H.R. 3540 was introduced on June 27, 2019 by Chairwoman
Nydia M. Velázquez (D–NY). H.R. 3540 was included as a provision
in H.R. 3884, the Marijuana Opportunity Reinvestment and
Expungement Act of 2019 (MORE Act). H.R. 3884 was reported, as
amended, by the House Committee on the Judiciary on November
21, 2019, and passed the House on December 4, 2020.
ENSURING ACCESS TO COUNSELING AND TRAINING FOR ALL SMALL
BUSINESSES ACT
H.R. 3543
Summary
H.R. 3543 amends the Small Business Act to remove cannabis
from the schedule of controlled substances, and it prohibits the
Small Business Administration from declining to provide certain
small business loans to an eligible entity solely because it is a can-
nabis-related legitimate business or service provider.
Legislative History
H.R. 3543 was introduced on June 27, 2019 by Representative
Jared Golden (D–ME). H.R. 3543 was included as a provision in
H.R. 3884, the Marijuana Opportunity Reinvestment and
Expungement Act of 2019 (MORE Act). H.R. 3884 was reported, as
amended, by the House Committee on the Judiciary on November
21, 2019, and passed the House on December 4, 2020.
HOMEGROWN ACT OF 2019
H.R. 3544
Summary
H.R. 3544 removes marijuana from the list of scheduled sub-
stances under the Controlled Substances Act and eliminates crimi-
nal penalties for an individual who manufactures, distributes, or
possesses with intent to distribute marijuana. Additionally, the bill
requires the Small Business Administration to establish the Equi-
table Licensing Grant Program. The purpose of the grant program
is to support the implementation of cannabis licensing programs
that minimize barriers to licensing and employment for individuals
adversely impacted by the war on drugs.
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Legislative History
H.R. 3544 was introduced on June 27, 2019 by Representative
Dwight Evans (D–PA). H.R. 3544 was included as a provision in
H.R. 3884, the Marijuana Opportunity Reinvestment and
Expungement Act of 2019 (MORE Act). H.R. 3884 was reported, as
amended, by the House Committee on the Judiciary on November
21, 2019, and passed the House on December 4, 2020.
PATRIOTIC EMPLOYER PROTECTION ACT OF 2019
H.R. 3661
Summary
H.R. 3661 amends the Small Business Act to remove statutory
restrictions that limit use of the Small Business Administration’s
Military Reservist Economic Injury Disaster Loan (MREIDL) and
Repayment Deferral programs to active duty ‘‘during a period of
military conflict’’ and replaces this language with ‘‘being ordered to
perform active service for a period of more than 30 consecutive
days.’’ This change to the law broadens the pool of service members
and reservists eligible for the MREIDL and Repayment Deferral
programs. H.R. 3661 also requires the President to submit to Con-
gress a report on the number of loans made under the MREIDL
program and the dollar volume of those loans.
Legislative History
H.R. 3661 was introduced on July 10, 2019 by Representative
Andy Kim (D–NJ) and Representative Tim Burchett (R–TN). H.R.
3661 was reported by the House Committee on Small Business on
October 15, 2019, and passed the House, as amended, on November
13, 2019 under Suspension of the Rules by voice vote. H.R. 3661
was received in the Senate and read twice and referred to the Com-
mittee on Small Business and Entrepreneurship on November 14,
2019. H.R. 3661 was included in the final version of the National
Defense Authorization Act of 2020, (S. 1790).
SUCCESSFUL ENTREPRENEURSHIP FOR RESERVISTS AND VETERANS
ACT
H.R. 3734
Summary
H.R. 3734 amends the Small Business Act to require The Inter-
agency Task Force for Small Business Development to report annu-
ally to Congress on the appointments made to the task force and
to identify and outline a plan for outreach and promotion of pro-
grams serving veterans at SBA. The bill also requires a report from
the Government Accountability Office on the credit issues related
to veterans.
Legislative History
H.R. 3734 was introduced on July 12, 2019, by Representative
Sharice Davids (D–KS) and Ranking Member Steve Chabot (R–
OH). H.R. 3734 was reported by the House Committee on Small
Business on October 15, 2019, and passed the House on November
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13, 2019, under Suspension of the Rules by a vote of 421–3 (Roll
Call No. 614). H.R. 3734 was received in the Senate and read twice
and referred to the Committee on Small Business and Entrepre-
neurship on November 14, 2019.
TO ESTABLISH GROWTH ACCELERATOR FUND COMPETITION WITHIN
THE SMALL BUSINESS ADMINISTRATION, AND FOR OTHER PURPOSES.
H.R. 4387
Summary
The SBA funds the Growth Accelerator Fund Competition for the
nation’s most innovative and promising small business accelerators
and incubators. Accelerators, incubators, co-working start-up com-
panies, or other entrepreneurial ecosystem models compete for
monetary prizes of $50,000 each. H.R. 4387 codifies the Growth Ac-
celerator Fund Competition at the Small Business Administration.
The bill would mandate that awards be given on a competitive
basis to assist small businesses in accessing capital, mentors, and
networking opportunities; and advise small business concerns on
topics such as market analysis, company strategy, revenue growth,
and securing funding. H.R. 4387 would also require the Small Busi-
ness Administration to prioritize applications from small busi-
nesses in underserved communities.
Additionally, the bill would require the Small Business Adminis-
tration to develop metrics that are science-based and statistically
driven, reflect the mission of the Administration, and include fac-
tors related to the economic impact of the Growth Accelerator Fund
Competition. The bill authorizes $2 million in funds annually for
4 years to carry out the Competition.
Legislative History
H.R. 4387 was introduced on September 18, 2019, by Representa-
tive Adriano Espaillat (D–NY) and Representative Troy Balderson
(R–OH). H.R. 4387 was reported by the House Committee on Small
Business on October 17, 2019 and passed the House by voice vote
under Suspension of the Rules on October 21, 2019. H.R. 4387 was
received in the Senate and referred to the Committee on Small
Business and Entrepreneurship.
WOMEN’S BUSINESS CENTERS IMPROVEMENTS ACT
H.R. 4405
Summary
The Women’s Business Centers Improvements Act strengthens
the Women’s Business Center program to ensure that women en-
trepreneurs across the country have access to the vital counseling
and technical training services from startup to success. The bill
also authorizes the Women’s Business Center program for four
years at $31.5 million for each fiscal year, establishes an accredita-
tion program to strengthen Women’s Business Centers, creates a
transparent process to set up new center locations, and requires an
annual report by the Small Business Administration to evaluate
program effectiveness.
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Legislative History
H.R. 4405 was introduced on September 19, 2019, by Representa-
tive Sharice Davids (D–IL) and Rep. Jim Hagedorn (R–MN). H.R.
4405 was reported by the House Committee on Small Business on
October 17, 2019 and passed the House under Suspension of the
Rules by voice vote.
H.R. 4405 was received in the Senate and referred to the Com-
mittee on Small Business and Entrepreneurship on October 22,
2019.
SMALL BUSINESS DEVELOPMENT CENTERS IMPROVEMENT ACT OF 2019
H.R. 4406
Summary
H.R. 4406 modernizes and strengthens the Small Business De-
velopment Center (SBDC) network and authorizes funding for the
SBDC program for four years (FY2020–FY2023) at $175 million for
each fiscal year. The bill also requires an annual report to measure
the effectiveness of the SBDC program and allows for the pro-
motion and advertising of the program and its services.
Legislative History
H.R. 4406 was introduced on September 19, 2019, by Representa-
tive Jared Golden (D–ME) and Representative Aumua Amata Cole-
man Radewagen (R–AS). H.R. 4406 was reported by the House
Committee on Small Business on October 17, 2019, and passed the
House on October 21, 2019 under Suspension of the Rules by a vote
of 375–25 (Roll Call no. 569). H.R. 4406 was received in the Senate
and referred to the Committee on Small Business and Entrepre-
neurship on October 22, 2019.
SCORE FOR SMALL BUSINESS ACT OF 2019
H.R. 4407
Summary
H.R. 4407 amends the Small Business Act to strengthen the
Service Corps of Retired Executives (SCORE) and restores integ-
rity, accounting, and performance to the program. The bill includes
certain safeguards, ensuring the Small Business Administration is
a good agent of government funds and the counseling and training
program is operating effectively and efficiently for the 30 million
small business owners and aspiring entrepreneurs throughout the
country. More specifically, the bill protects taxpayers’ dollars, en-
sures federal contracts are awarded properly, aligns salaries and
performances with federal standards, protects whistleblowers, and
expands services and promotes diversity.
Legislative History
H.R. 4407 was introduced on September 19, 2019, by Representa-
tive Kevin Hern (R–OK) and Representative Angie Craig (D–MN).
H.R. 4407 was reported by the House Committee on Small Busi-
ness on October 17, 2019, and passed the House on October 21,
2019 under Suspension of the Rules by a vote of 389–8 (Roll Call
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No. 570). H.R. 4407 was received in the Senate and referred to the
Committee on Small Business and Entrepreneurship on October
22, 2019.
PRISON TO PROPRIETORSHIP FOR FORMERLY INCARCERATED ACT
H.R. 5065
Summary
H.R. 5065 directs the Service Corps of Retired Executives
(SCORE) to provide mentoring, workshops, and training videos for
formerly incarcerated individuals on how to launch and grow small
businesses. H.R. 5065 provides individualized business mentoring
to support the development of business plans and entrepreneurial
growth for recipients of the prison to proprietorship services up to
a year after release; connect individuals with small business net-
works and resources; identify opportunities to access capital when
appropriate; develop a series of instructional videos designed spe-
cifically for incarcerated and formerly incarcerated individuals; and
host workshops on topics specifically tailored to meet the needs of
formerly incarcerated individuals.
Legislative History
H.R. 5065 was introduced on November 13, 2019 by Representa-
tive Hakeem Jeffries (D–NY) and Representative Tim Burchett (R–
TN). H.R. 5065 was reported by the House Committee on Small
Business on December 12, 2019, and passed the House by voice
vote under Suspension of the Rules on January 8, 2020. H.R. 5065
was received by the Senate and referred to the Committee on Small
Business and Entrepreneurship on January 9, 2020.
PRISON TO PROPRIETORSHIP ACT
H.R. 5078
Summary
H.R. 5078 directs the Associations of Women’s Business Centers
and Small Business Development Centers to coordinate re-entry
entrepreneurship services. Coordination includes developing the
curriculum, training mentors and instructors, identifying opportu-
nities to access capital, and establishing public-private partner-
ships to support formerly incarcerated men and women. Modeled
after the successful Boots to Business program, which provides en-
trepreneurship training to servicemembers as they transition from
military to civilian life, the re-entry entrepreneurship services pro-
vided through H.R. 5078 include an introductory presentation high-
lighting the opportunities in small business; a self-study course fo-
cused on the basics of entrepreneurship, the language of business,
and small business ownership; five two-day sessions of in-depth
classroom instruction introducing the foundations of self-employ-
ment; and one-on-one mentorship.
Legislative History
H.R. 5078 was introduced on November 13, 2019 by Chairwoman
Nydia Velázquez (D–NY) and Ranking Member Steve Chabot (R–
OH). H.R. 5078 was reported by the House Committee on Small
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Business on December 12, 2019, and passed the House under Sus-
pension of the Rules by a vote of 370–41 (Roll Call No. 8). H.R.
5078 was received in the Senate and read twice and referred to the
Committee on Small Business and Entrepreneurship on January
13, 2020.
CAPTURING ALL SMALL BUSINESSES ACT OF 2019
H.R. 5130
Summary
H.R. 5130 amends the Small Business Act to extend the calcula-
tion period for the employee-based size standard from the pre-
ceding ‘‘12 months’’ to ‘‘24 months.’’ The purpose of the bill is to
provide parity between the employee-based size standard and the
receipts-based size standard, whose calculation had been recently
modified by the Small Business Runway Extension Act of 2018
(Pub. L. 115–324). The bill also provides language specifying that,
when establishing size standards, the Small Business Administra-
tion is subject to the requirements in the Small Business Act that
encompass the employee-based formula as modified and sets an ef-
fective date of a year after its enactment.
Legislative History
H.R. 5130 was introduced on November 15, 2019 by Representa-
tive Mark Veasey (D–TX) and Representative Kevin Hern (R–OK).
H.R. 5130 was reported by the House Committee on Small Busi-
ness on December 19, 2019, and passed the House on January 8,
2020, under Suspension of the Rules by voice vote. H.R. 5130 was
included in H.R. 6395, the William M. (Mac) Thornberry National
Defense Authorization Act for Fiscal Year 2021. H.R. 6395 was re-
ported, as amended, by the House Committee on Armed Services
on July 9, 2020, and passed the House on July 21, 2020, by a vote
of 295–125 (Roll Call No. 152). H.R. 5130 was included in the final
version of the National Defense Authorization Act of 2021, (H.R.
6395).
UNLOCKING OPPORTUNITIES FOR SMALL BUSINESSES ACT OF 2019
H.R. 5146
Summary
H.R. 5146 amends the Small Business Act to require the Small
Business Administration (SBA) to promulgate regulations requiring
contracting officers to consider the past performance of a joint ven-
ture, when evaluating an offer on a prime contract presented by
the small business joint venture member. The small business con-
cern must specify its own duties and responsibilities independent
of its joint venture partner. Similarly, H.R. 5146 requires the SBA
to promulgate regulations requiring contracting officers to accept
past performance information provided by a prime contractor re-
garding its small business subcontractor, when evaluating an offer
on a prime contract presented by the small business concern.
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Legislative History
H.R. 5146 was introduced on November 18, 2019, by Representa-
tive Jim Hagedorn (R–MN) and Representative Dwight Evans (D–
PA). H.R. 5146 was reported by the House Committee on Small
Business on December 19, 2019 and passed the House on January
8, 2020, under Suspension of the Rules by voice vote. H.R. 5146
was also included in H.R. 6395, the William M. (Mac) Thornberry
National Defense Authorization Act for Fiscal Year 2021. H.R. 6395
was reported, as amended, by the House Committee on Armed
Services on July 9, 2020, and passed the House on July 21, 2020
by a vote of 295–125 (Roll Call No. 152). H.R. 5146 was included
in the final version of the National Defense Authorization Act of
2021, (H.R. 6395).
NORTHERN MARIANA ISLANDS SMALL BUSINESS DEVELOPMENT ACT
H.R. 6021
Summary
H.R. 6021 amends the Small Business Act to allow the Common-
wealth of the Northern Mariana Islands to establish a lead Small
Business Development Center (SBDC) on the islands and be eligi-
ble for funding. The bill requires the Small Business Development
Center established in the Commonwealth of the Northern Mariana
Islands to meet the same 50 percent match funding requirement
met by Small Business Development Centers in other states and
territories. However, the bill waives the requirement that the new
Small Business Development Center be established at a higher
education institution because the Commonwealth of the Northern
Mariana Islands does not have a college or university to operate a
Small Business Development Center on-campus. Lastly, this bill al-
lows the Commonwealth of the Northern Mariana Islands to be eli-
gible for funds through the Federal and State Technology (FAST)
Partnership Program in order to increase the number of Small
Business Innovation Research (SBIR) and Small Business Tech-
nical Transfer (STTR) applications.
Legislative History
H.R. 6021 was introduced on February 28, 2020 by Representa-
tive Gregorio Sablan (D–MP) and Representative Aumua Amata
Coleman Radewagen (R–AS). H.R. 6021 was ordered to be Reported
by voice vote on March 11, 2020, and passed the House by voice
vote under Suspension of the Rules on September 14, 2020. H.R.
6021 was received by the Senate and referred to the Committee on
Small Business and Entrepreneurship on September 15, 2020. H.R.
6021 was also included in H.R. 6395, the William M. (Mac) Thorn-
berry National Defense Authorization Act for Fiscal Year 2021.
H.R. 6395 was reported, as amended, by the House Committee on
Armed Services on July 9, 2020, and passed the House on July 21,
2020, by a vote of 295–125 (Roll Call No. 152). On July 23, 2020
the Senate passed H.R. 6395 by a vote of 86–14 (Record Vote Num-
ber: 140). H.R. 6021 was included in the final version of the Na-
tional Defense Authorization Act of 2021, (H.R. 6395).
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SMALL BUSINESS RELIEF FROM COMMUNICABLE DISEASE INDUCED
ECONOMIC HARDSHIP ACT OF 2020
H.R. 6040
Summary
H.R. 6040 amends the Small Business Act to expand the defini-
tion of a disaster for which the Small Business Administration
(SBA) may provide disaster loans to small business concerns to in-
clude communicable diseases for which the government issues a
travel alert or travel warning, and it authorizes the SBA to make
interest free disaster loans to small businesses affected by a dis-
aster for which the government issues a public health emergency.
Legislative History
H.R. 6040 was introduced on February 28, 2020 by Chairwoman
Nydia M. Velzquez (D–NY), Representative Judy Chu (D–CA), Rep-
resentative Grace Meng (D–NY), and Representative Antonio
Delgado (D–NY). A similar provision was included in H.R. 6074,
the Coronavirus Preparedness and Response Supplemental Appro-
priations Act in Title II. H.R. 6074 passed the House under Sus-
pension of the Rules by a vote of 415–2 (Roll Call No. 86), passed
the Senate by a vote of 96–1 (Record Vote No. 66), and signed by
the President on March 6, 2020 becoming Pub. Law. No. 116–123.
MICROLOAN TRANSPARENCY AND ACCOUNTABILITY ACT OF 2020
H.R. 6078
Summary
H.R. 6078 amends the Small Business Act to make rural-based
intermediaries eligible to receive a bonus technical assistance grant
and expands Small Business Administration (SBA) reporting on
key Microloan performance metrics, including the number, amount,
and percentage of such loans that defaulted in the previous year;
the extent to which Microloans are provided to small businesses in
rural areas; and the average loan size, interest rate, fees charged
for each Microloan. Specifically, H.R. 6078 provides a 5 percent
technical assistance grant for intermediaries who make at least 25
percent of their loans to rural small businesses.
Legislative History
H.R. 6078 was introduced on March 4, 2020 by Representatives
Tim Burchett (R–TN) and Andy Kim (D–NJ). H.R. 6078 was or-
dered to be reported by voice vote by the House Committee on
Small Business on March 11, 2020, and passed the House, as
amended, on September 14, 2020 under Suspension of the Rules by
voice vote. H.R. 6078 was received in the Senate and read twice
and referred to the Committee on Small Business and Entrepre-
neurship on September 15, 2020.
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MICROLOAN IMPROVEMENT ACT OF 2020
H.R. 6079
Summary
H.R. 6079 amends the Small Business Act to make numerous
program changes that enhance the ability of Microloan Inter-
mediaries to provide affordable capital and technical assistance to
existing microbusinesses and aspiring entrepreneurs. Among other
provisions, H.R. 6079 eliminates the 1/55 rule, which has restricted
the ability of high-volume intermediaries to meet demand in their
respective states; lowers interest rates for eligible intermediaries;
and extends repayment terms to seven years for Microloans of
$10,000 or less and to ten years for Microloans greater than
$10,000.
Legislative History
H.R. 6079 was introduced on March 4, 2020 by Representatives
Andy Kim (D–NJ) and Tim Burchett (R–TN). H.R. 6079 was or-
dered to be reported by voice vote by the House Committee on
Small Business on March 11, 2020 and passed by the House on
September 14, 2020 under Suspension of the Rules by voice vote.
H.R. 6079 was received in the Senate and read twice and referred
to the Committee on Small Business and Entrepreneurship on Sep-
tember 15, 2020.
STEP IMPROVEMENT ACT OF 2020
H.R. 6133
Summary
H.R. 6133 reauthorizes the State Trade Expansion Program
(STEP) for four fiscal years, FY 2021 through FY 2024, and makes
improvements to the program. Specifically, H.R. 6133 mandates the
creation of a standardized application process, increases grant
spending flexibility, improves communication between the Small
Business Administration and States. The bill also requires the col-
lection of performance metrics and an annual report to Congress.
Legislative History
H.R. 6133 was introduced on March 4, 2020, by Representative
Abby Finkenauer (D–IA) and Representative Ross Spano (R–FL).
H.R. 6133 was ordered to be reported by voice vote by the House
Committee on Small Business on March 11, 2020 and passed the
House by voice vote under Suspension of the Rules on September
14, 2020. H.R. 6133 was received in the Senate and read twice and
referred to the Committee on Small Business and Entrepreneur-
ship on September 15, 2020.
MICROLOAN EMERGENCY ASSISTANCE ACT OF 2020
H.R. 6291
Summary
H.R. 6291 expands the Microloan Program of the Small Business
Administration (SBA). Specifically, the bill increases the amount of
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funds available to an individual loan intermediary (i.e., a recipient
of SBA direct loans that, in turn, makes microloans to startups and
newly established or growing small businesses). The bill also
makes eligible for certain technical assistance grants an inter-
mediary that, among other requirements, provides at least 25% of
its loans to small businesses in an economically distressed area.
In addition, the bill temporarily (1) extends repayment terms for
microloans, and (2) authorizes the SBA to provide increased
amounts for both technical assistance grants and direct loans. The
bill also requires the SBA to temporarily waive (1) the requirement
that an intermediary contribute non-federal funds as a condition of
receiving a technical assistance grant, and (2) the limitation on
amounts allowed to be expended to provide certain information and
technical assistance.
Legislative History
H.R. 6291 was introduced on March 19, 2020 by Representative
Andy Kim (D–NJ). A similar provision was included in H.R. 925,
as amended, the Heroes Act as Section 605 of Division E. H.R. 925,
as amended passed the House under Suspension of the Rules by a
vote of 214–207 (Roll Call No. 214) on October 1, 2020. A similar
provision was included in H.R. 133, as amended, the Consolidated
Appropriations Act, 2021 as Section 329 of Title III of Division N.
H.R. 133, as amended passed the House on December 21, 2020 by
a vote of 327–85 (Roll Call No. 250) and a vote of 359–53 (Roll Call
No. 251), passed by the Senate by a vote of 92–60 (Record Vote No.
289), and signed by the President on December 27, 2020.
SBA REACHING ALL COMMUNITIES ACT OF 2020
H.R. 6301
Summary
H.R. 6301 amends the Small Business Act to require the Small
Business Administration to provide resources and services to small
businesses in the 10 most commonly spoken languages, other than
English, in the United States. This shall include Mandarin, Can-
tonese, Japanese, and Korean.
Legislative History
H.R. 6301 was introduced on March 19, 2020 by Representative
Judy Chu (D–CA). A similar provision was included in H.R. 748,
the Coronavirus Aid, Relief, and Economic Security Act or the
CARES Act as Section 1111. H.R. 748, as amended passed the Sen-
ate by a vote of 96–0 (Record Vote No. 80) on March 25, 2020,
passed the House with the Senate amendment under Suspension
of the Rules by voice vote on March 27, 2020, and signed by the
President on March 27, 2020 becoming Pub. Law. No. 116–136.
INCREASING ACCESS TO CAPITAL ACT OF 2020
H.R. 6303
Summary
H.R. 6303 requires the Small Business Administration (SBA) to
temporarily waive, or reduce to the maximum extent possible, cer-
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tain fees on SBA loans. The bill also temporarily increases the
guarantee amount and loan size for certain SBA loans, including
express loans, and it permanently waives the guarantee fee on SBA
loans for veterans.
Legislative History
H.R. 6303 was introduced on March 19, 2020 by Representative
Jason Crow (D–CO). A similar provision was included in H.R. 925,
as amended, the Heroes Act in Title VI of Division E.
H.R. 925, as amended passed the House under Suspension of the
Rules by a vote of 214–207 (Roll Call No. 214) on October 1, 2020.
A similar provision was included in H.R. 133, as amended, the Con-
solidated Appropriations Act, 2021 as Section 326, 327, and 328 of
Title III of Division N.
H.R. 133, as amended passed the House on December 21, 2020
by a vote of 327–85 (Roll Call No. 250) and a vote of 359–53 (Roll
Call No. 251), passed by the Senate by a vote of 92–60 (Record Vote
No. 289), and signed by the President on December 27, 2020.
SMALL BUSINESS REPAYMENT RELIEF ACT OF 2020
H.R. 6304
SUMMARY
H.R. 6304 amends the Small Business Act to require the Small
Business Administration (SBA) to pay the principal, interest, and
any associated fees owed on certain loans made to small businesses
for a six-month period. The SBA must also encourage the Federal
Deposit Insurance Corporation, the Office of the Comptroller of the
Currency, and state bank regulators to not require lenders to in-
crease their reserves on account of receiving such payments made
by the SBA. The SBA shall waive statutory limits on maximum
loan maturities for certain loan durations where the lender pro-
vides a deferral and extends the maturity of such loans and, when
necessary to provide more time because of difficulties during the
COVID–19 (i.e., coronavirus disease 2019) pandemic, extend lender
site visit requirements.
Legislative History
H.R. 6304 was introduced on March 19, 2020 by Representative
Antonio Delgado (D–NY). A similar provision was included in H.R.
748, the Coronavirus Aid, Relief, and Economic Security Act or the
CARES Act as Section 1112. H.R. 748, as amended passed the Sen-
ate by a vote of 96–0 (Record Vote No. 80) on March 25, 2020,
passed the House with the Senate amendment under Suspension
of the Rules by voice vote on March 27, 2020, and signed by the
President on March 27, 2020 becoming Pub. Law. No. 116–136.
SMALL BUSINESS COVID–19 RECOVERY GRANTS ACT OF 2020
H.R. 6343
Summary
H.R. 6343 amends the Small Business Act to require the Small
Business Administration to provide grants to small businesses that
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have suffered substantial economic injury as a result of COVID–19
(i.e., coronavirus disease 2019). Such grants may not exceed a spec-
ified amount and may be used to address direct effects of COVID–
19, including (1) providing paid sick leave to employees, (2) main-
taining payroll, and (3) meeting increased supply chain costs.
Legislative History
H.R. 6343 was introduced on March 23, 2020 by Representative
Adriano Espaillat (D–NY). A similar provision was included in H.R.
925, as amended, the Heroes Act as Section 405 of Division E. H.R.
925, as amended passed the House under Suspension of the Rules
by a vote of 214–207 (Roll Call No. 214) on October 1, 2020. A simi-
lar provision was included in H.R. 133, as amended, the Consoli-
dated Appropriations Act, 2021 as Sections 331 and 332 of Title III
of Division N. H.R. 133, as amended passed the House on Decem-
ber 21, 2020 by a vote of 327–85 (Roll Call No. 250) and a vote of
359–53 (Roll Call No. 251), passed by the Senate by a vote of 92–
60 (Record Vote No. 289), and signed by the President on December
27, 2020.
EXPEDITING THE EIDL PROGRAM ACT OF 2020
H.R. 6344
Summary
H.R. 6344 amends the Small Business Act to modify the dis-
bursement of economic injury disaster loans by the Small Business
Administration (SBA) with respect to such loans made in response
to COVID–19 (i.e., coronavirus disease 2019). Specifically, the bill
authorizes the SBA to increase the amount of a disaster loan to a
small business by 20% to cover costs related to continuity of oper-
ations and risk mitigation improvements. The bill also authorizes
the SBA to make such loans to startups and to waive rules related
to affiliation, and it requires the SBA to waive the personal guar-
antee requirement on such loans made to cooperatives.
In addition, an applicant for a disaster loan may request an ad-
vance on such loan up to a specified amount, and they shall not
be required to repay any amount of an advance if they are subse-
quently denied a disaster loan. The bill also authorizes the SBA to
approve an applicant for a disaster loan that is below a certain
amount based solely on the applicant’s credit score and to use al-
ternative methods to determine such applicant’s ability to repay.
Further, the bill establishes a maximum interest rate on a disaster
loan based on an applicant’s ability to obtain credit elsewhere, and
it expands the qualifying events for which a disaster loan may be
awarded to include emergencies involving federal primary responsi-
bility.
Legislative History
H.R. 6344 was introduced on March 23, 2020 by Representative
Dwight Evans (D–PA). A similar provision was included in H.R.
748, the Coronavirus Aid, Relief, and Economic Security Act or the
CARES Act as Section 1110. H.R. 748, as amended passed the Sen-
ate by a vote of 96–0 (Record Vote No. 80) on March 25, 2020,
passed the House with the Senate amendment under Suspension
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of the Rules by voice vote on March 27, 2020, and signed by the
President on March 27, 2020 becoming Pub. Law. No. 116–136.
STEP REIMBURSEMENT ACT OF 2020
H.R. 6345
Summary
H.R. 6345 amends the Small Business Act to require the Small
Business Administration to reimburse any recipient of a grant
under the State Trade Expansion Program for financial losses re-
lating to a foreign trade mission or a trade show exhibition that
was cancelled due to COVID–19 (i.e., the coronavirus disease 2019).
In addition, the bill authorizes a state that receives a grant under
the program to revise their budget plan under certain cir-
cumstances.
Legislative History
H.R. 6345 was introduced on March 23, 2020 by Representative
Abby Finkenauer (D–IA). A similar provision was included in H.R.
748, the Coronavirus Aid, Relief, and Economic Security Act or the
CARES Act as Section 1104. H.R. 748, as amended passed the Sen-
ate by a vote of 96–0 (Record Vote No. 80) on March 25, 2020,
passed the House with the Senate amendment under Suspension
of the Rules by voice vote on March 27, 2020, and signed by the
President on March 27, 2020 becoming Pub. Law. No. 116–136.
CONTINUITY OF BUSINESS OPERATIONS SUPPORT ACT OF 2020
H.R. 6349
Summary
H.R. 6349 amends the Small Business Act to require the Small
Business Administration (SBA) to provide grants to small business
development centers, women’s business centers, and chapters of the
Service Corps of Retired Executives to educate and advise small
businesses on specified matters related to COVID–19 (i.e.,
coronavirus disease 2019). The SBA must establish goals and
metrics for the use of such funds awarded to small business devel-
opment centers, which shall (1) consider the extent of the cir-
cumstances relating to the spread of COVID–19 that affect small
businesses served by grant recipients, (2) ensure grant recipients
have the flexibility to respond to unique situations, and (3) encour-
age grant recipients to develop and provide services to small busi-
nesses in areas substantially affected by COVID–19.
Legislative History
H.R. 6349 was introduced on March 23, 2020 by Representative
Jared Golden (D–NE). A similar provision was included in H.R.
748, the Coronavirus Aid, Relief, and Economic Security Act or the
CARES Act as Section 1103. H.R. 748, as amended passed the Sen-
ate by a vote of 96–0 (Record Vote No. 80) on March 25, 2020,
passed the House with the Senate amendment under Suspension
of the Rules by voice vote on March 27, 2020, and signed by the
President on March 27, 2020 becoming Pub. Law. No. 116–136.
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ENTREPRENEURIAL DEVELOPMENT COVID–19 RESPONSE ACT OF 2020
H.R. 6367
Summary
H.R. 6367 amends the Small Business Act to require the Small
Business Administration to award grants for small business devel-
opment centers, women’s business centers, and chapters of the
Service Corps of Retired Executives to provide small businesses
with specified assistance related to COVID–19 (i.e., coronavirus
disease 2019).
Legislative History
H.R. 6344 was introduced on March 23, 2020 by Representative
Bradley Schneider (D–IL). A similar provision was included in H.R.
748, the Coronavirus Aid, Relief, and Economic Security Act or the
CARES Act as Section 1105. H.R. 748, as amended passed the Sen-
ate by a vote of 96–0 (Record Vote No. 80) on March 25, 2020,
passed the House with the Senate amendment under Suspension
of the Rules by voice vote on March 27, 2020, and signed by the
President on March 27, 2020 becoming Pub. Law. No. 116–136.
INCREASING ACCESS TO CAPITAL ACT OF 2020
H.R. 6697
Summary
H.R. 6697 modifies the Paycheck Protection Program imple-
mented by the Small Business Administration in response to
COVID–19 (i.e., coronavirus disease 2019) to include certain enti-
ties and exclude certain individuals. Specifically, the bill expands
the program to encompass organizations with 300 or fewer employ-
ees that (1) operate under section 501(c)(6) of the Internal Revenue
Code (other than a professional football league), or (2) are a des-
tination marketing organization engaged in promoting communities
and facilities to businesses and leisure travelers. The bill also nar-
rows the definition of payroll costs under the program to exclude
any compensation of an employee who is a registered lobbyist from
the calculation for loan amounts or for allowable uses of funds pro-
vided under the program.
Legislative History
H.R. 6697 was introduced on May 5, 2020 by Representative
Chris Pappas (D–NH), Representative Gilbert Cisneros (D–CA),
Representative Brian Fitzpatrick (R–PA), and Representative Greg-
ory Steube (R–FL). A similar provision was included in H.R. 925,
as amended, the Heroes Act in Section 204 of Division E. H.R. 925,
as amended passed the House under Suspension of the Rules by a
vote of 214–207 (Roll Call No. 214) on October 1, 2020. A similar
provision was included in H.R. 133, as amended, the Consolidated
Appropriations Act, 2021 as Section 318 of Title III of Division N.
H.R. 133, as amended passed the House on December 21, 2020 by
a vote of 327–85 (Roll Call No. 250) and a vote of 359–53 (Roll Call
No. 251), passed by the Senate by a vote of 92–60 (Record Vote No.
289), and signed by the President on December 27, 2020.
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TO AMEND THE SMALL BUSINESS ACT TO INCLUDE CERTAIN CRITICAL
ACCESS HOSPITALS IN THE PAYCHECK PROTECTION PROGRAM, AND
FOR OTHER PURPOSES
H.R. 6716
Summary
H.R. 6716 expands the Paycheck Protection Program, established
to support small businesses in response to COVID–19 (i.e.,
coronavirus disease 2019), to encompass critical access hospitals. A
critical access hospital is a hospital that, among other things, is lo-
cated in a rural area, furnishes 24–7 emergency services, and has
25 or fewer inpatient beds.
Legislative History
H.R. 6716 was introduced on May 5, 2020 by Representative
Jared Golden (D–ME). A similar provision was included in H.R.
925, as amended, the Heroes Act in Section 204 of Division E. H.R.
925, as amended passed the House under Suspension of the Rules
by a vote of 214–207 (Roll Call No. 214) on October 1, 2020.
SMALL BUSINESS TRANSPARENCY AND REPORTING FOR THE
UNDERBANKED AND TAXPAYERS AT HOME ACT OR THE TRUTH ACT
H.R. 6782
Summary
H.R. 6782 requires the Small Business Administration (SBA) to
make information regarding economic relief measures implemented
in response to COVID–19 (i.e., coronavirus disease 2019) publicly
available. Specifically, with respect to the Paycheck Protection Pro-
gram and economic injury disaster loans and emergency grants, the
SBA must publish (1) the identity of each recipient of assistance
and an explanation of the decision-making process underlying such
disbursal; (2) the number of employees of each recipient and the
date on which such assistance was disbursed; (3) an identification
of each lender or intermediary through which assistance was dis-
bursed; and (4) the amount of assistance disbursed to small busi-
nesses owned and controlled by socially and economically disadvan-
taged individuals, women, and veterans.
Legislative
History H.R. 6782 was introduced on May 8, 2020 by Representa-
tive Dean Phillips (D–MN), Representative J. Luis Correa (D–CA),
Representative Janice Schakowsky (D–IL), Representative Lucille
Roybal-Allard (D–CA), Representative Tom Malinowski (K–NJ),
Representative Abigail Spanberger (D–VA), Representative Josh
Gottheimer (D–NJ), Representative John Garamendi (D–CA), Rep-
resentative Gregorio Sablan (D–MP), Representative Betty McCol-
lum (D–MN), and Representative Debra Haaland (D–NM). H.R.
6782 failed the House on May 28, 2020 under Suspension of the
Rules by a vote of 269–147 (Roll Call No. 113).
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FAIR CHANCE FOR SMALL BUSINESS RELIEF ACT
H.R. 6894
Summary
H.R. 6894 prohibits the Small Business Administration from de-
clining to provide or guarantee certain small business loans solely
on the basis that an applicant (1) is on probation or parole, (2) is
presently subject to a means by which formal criminal charges are
brought (e.g., indictment or arraignment), or (3) has been arrested
or convicted of any crime.
Legislative History
H.R. 6894 was introduced on May 15, 2020 by Representative
Joyce Beatty (D–OH). A similar provision was included in H.R.
925, as amended, the Heroes Act as Section 218 of Division E. H.R.
925, as amended passed the House under Suspension of the Rules
by a vote of 214–207 (Roll Call No. 214) on October 1, 2020.
LOCAL NEWS AND EMERGENCY INFORMATION ACT OF 2020
H.R. 6897
Summary
H.R. 6897 expands the Paycheck Protection Program, established
to support small businesses in response to COVID–19 (i.e.,
coronavirus disease 2019), to include certain newspaper publishers,
radio stations, and television broadcasters. Specifically, such a
media purveyor is eligible to receive a paycheck protection loan if
(1) the individual physical location that applies for the loan does
not exceed Small Business Administration size standards (up to
1,000 employees for newspaper publishers and $41.5 million in
gross receipts for radio and television broadcasters); and (2) the
proceeds of the loan are used to support the continued provision of
local news, information, content, or emergency information. Such a
recipient may not remit any portion of a paycheck protection loan
to any entity other than the individual physical location that is the
loan’s intended recipient.
Legislative History
H.R. 6897 was introduced on May 15, 2020 by Representative
David Cicilline (D–RI) and Representative James Sensenbrenner
(R–WI). A similar provision was included in H.R. 925, as amended,
the Heroes Act as Section 204 of Division E. H.R. 925, as amended
passed the House under Suspension of the Rules by a vote of 214–
207 (Roll Call No. 214) on October 1, 2020. A similar provision was
included in H.R. 133, as amended, the Consolidated Appropriations
Act, 2021 as Section 317 of Title III of Division N. H.R. 133, as
amended passed the House on December 21, 2020 by a vote of 327–
85 (Roll Call No. 250) and a vote of 359–53 (Roll Call No. 251),
passed by the Senate by a vote of 92–60 (Record Vote No. 289), and
signed by the President on December 27, 2020.
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RELIEF FOR MAIN STREET ACT
H.R. 6907
Summary
H.R. 6907 establishes for one year the Small Business Local Re-
lief Program, which shall allocate resources to states, local govern-
ments, and Native American tribes for providing assistance to cer-
tain small businesses and nonprofits that have lost revenue due to
COVID–19 (i.e., coronavirus disease 2019). Specifically, the bill pro-
vides $50.5 billion for such assistance, of which (1) $35 billion shall
be distributed based on the Community Development Block Grant
formula (70% allocated to larger cities and counties and 30% to
rural communities), (2) $15 billion shall be allocated to provide fi-
nancing exclusively to businesses in rural areas, and (3) $500 mil-
lion shall be for Native American Tribes.
These amounts shall be used to start or scale a local small busi-
ness emergency fund or to support organizations that provide tech-
nical assistance to small businesses or nonprofits. Such local funds
or organizations may then use the amounts to assist small busi-
nesses (including sole proprietorships, independent contractors, and
self-employed individuals) and nonprofits that (1) employ no more
than 20 full-time employees (50 if the recipient is located in a low-
income community), (2) has experienced a loss of revenue because
of COVID–19, and (3) satisfies any additional requirements im-
posed by the administrator of the fund. A state, local government,
or Native American tribe that receives funds under the bill must
report specified demographic and disbursement information.
Legislative History
H.R. 6907 was introduced on May 15, 2020 by Daniel Kildee (D–
MI) and Representative Brian Fitzpatrick (R–PA). A similar provi-
sion was included in H.R. 925, as amended, the Heroes Act as Sec-
tion 618 of Division E. H.R. 925, as amended passed the House
under Suspension of the Rules by a vote of 214–207 (Roll Call No.
214) on October 1, 2020.
PPE ACT
H.R. 6973
Summary
H.R. 6973 modifies allowable and forgivable uses of amounts re-
ceived under the Paycheck Protection Program, established to sup-
port small businesses in response to COVID–19 (i.e., coronavirus
disease 2019), to encompass costs related to the provision of per-
sonal protective equipment or other equipment or supplies nec-
essary to protect the health and safety of employees. The bill also
prohibits the Small Business Administration from limiting the non-
payroll portion of a forgivable loan amount.
Legislative History
H.R. 6973 was introduced on May 22, 2020 by Representative
Abby Finkenauer (D–IA) and Representative Aumua Amata Cole-
man Radewagen (R–AS). A similar provision was included in H.R.
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925, as amended, the Heroes Act in Section 206 of Division E. H.R.
925, as amended passed the House under Suspension of the Rules
by a vote of 214–207 (Roll Call No. 214) on October 1, 2020. A simi-
lar provision was included in H.R. 133, as amended, the Consoli-
dated Appropriations Act, 2021 as Section 304 of Title III of Divi-
sion N. H.R. 133, as amended passed the House on December 21,
2020 by a vote of 327–85 (Roll Call No. 250) and a vote of 359–
53 (Roll Call No. 251), passed by the Senate by a vote of 92–60
(Record Vote No. 289), and signed by the President on December
27, 2020.
PAYCHECK PROTECTION PROGRAM FLEXIBILITY ACT OF 2020
H.R. 7010
Summary
H.R. 7010 modifies provisions related to the forgiveness of loans
made to small businesses under the Paycheck Protection Program
implemented in response to COVID–19 (i.e., coronavirus disease
2019). Specifically, the bill establishes a minimum maturity of five
years for a paycheck protection loan with a remaining balance after
forgiveness. The bill also extends the covered period during which
a loan recipient may use such funds for certain expenses while re-
maining eligible for forgiveness. The bill raises the non-payroll por-
tion of a forgivable covered loan amount from the current 25% up
to 40%.
The bill extends the period in which an employer may rehire or
eliminate a reduction in employment, salary, or wages that would
otherwise reduce the forgivable amount of a paycheck protection
loan. However, the forgivable amount must be determined without
regard to a reduction in the number of employees if the recipient
is (1) unable to rehire former employees and is unable to to hire
similarly qualified employees, or (2) unable to return to the same
level of business activity due to compliance with federal require-
ments or guidance related to COVID–19.
Additionally, the bill revises the deferral period for paycheck pro-
tection loans, allowing recipients to defer payments until they re-
ceive compensation for forgiven amounts. Recipients who do not
apply for forgiveness shall have 10 months from the program’s ex-
piration to begin making payments. The bill also eliminates a pro-
vision that makes a paycheck protection loan recipient who has
such indebtedness forgiven ineligible to defer payroll tax payments.
Lastly, the bill is designated as an emergency requirement pursu-
ant to the Statutory Pay-As-You-Go Act of 2010 (PAYGO) and the
Senate PAYGO rule.
Legislative History
H.R. 7010 was introduced on May 26, 2020 by Representative
Dean Phillips (D–MN) and Representative Chip Roy (R–TX). H.R.
7010 passed the House under Suspension of the Rules by a vote of
417 1 (Roll Call No. 114), passed the Senate by voice vote, and was
signed into law on June 5, 2020 (Pub. Law No. 116–142).
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P4 ACT
H.R. 7241
Summary
H.R. 7241 authorizes new lending under the Paycheck Protection
Program, established to support small businesses in response to
COVID–19 (i.e., coronavirus disease 2019), for specified small busi-
nesses that have experienced a significant loss in revenue. Specifi-
cally, the bill authorizes one supplemental paycheck protection loan
for a small business that (1) has no more than 100 employees, (2)
operates under a sole proprietorship or as an independent con-
tractor, or (3) is self-employed. To be eligible for a supplemental
paycheck protection loan, such small business must demonstrate a
loss of revenue of 50% or more and have either already expended
an initial paycheck protection loan or be on pace to exhaust such
loan prior to disbursal of the supplemental loan.
The bill also extends the application deadline for an initial pay-
check protection loan to December 31, 2020, and it authorizes loan
recipients to apply for forgiveness as early as eight weeks after the
loan’s disbursal. The Small Business Administration must (1) issue
guidance instructing lenders of paycheck protection loans to
prioritize loan processing for and disbursement to underserved
businesses, (2) update the loan application for paycheck protection
loans to collect borrowers’ demographic information, and (3) publish
specified program information on its website.
Legislative History
H.R. 7241 was introduced on June 18, 2020 by Representative
Angie Craig (D–MN) and Representative Antonio Delgado (D–NY).
A similar provision was included in H.R. 925, as amended, the He-
roes Act in Section 202 of Division E. H.R. 925, as amended passed
the House under Suspension of the Rules by a vote of 214–207
(Roll Call No. 214) on October 1, 2020. A similar provision was in-
cluded in H.R. 133, as amended, the Consolidated Appropriations
Act, 2021 as Section 311 of Title III of Division N. H.R. 133, as
amended passed the House on December 21, 2020 by a vote of 327–
85 (Roll Call No. 250) and a vote of 359–53 (Roll Call No. 251),
passed by the Senate by a vote of 92–60 (Record Vote No. 289), and
signed by the President on December 27, 2020.
FEDERAL SMALL BUSINESS CONTRACTOR PROMPT PAYMENT
REPORTING ACT
H.R. 7342
Summary
H.R. 7342 amends the Small Business Act to require each federal
agency to report to Congress on the timeliness, including accelera-
tion, of payments made to a prime contractor that is a small busi-
ness or that subcontracts with a small business.
Legislative History
H.R. 7342 was introduced on June 25, 2020 by Representative
Jason Crow (D–CO) and Representative Troy Balderson (R–OH).
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H.R. 7342 was included in H.R. 6395, the William M. (Mac) Thorn-
berry National Defense Authorization Act for Fiscal Year 2021.
H.R. 6395 was reported, as amended, by the House Committee on
Armed Services on June 9, 2020, and passed the House on July 21,
2020, by a vote of 295–125 (Roll Call No. 152). H.R. 7342 was in-
cluded in the final version of the National Defense Authorization
Act of 2020, (H.R. 6395).
PROTECTING SMALL BUSINESS CONTRACTING OPPORTUNITIES OF 2020
H.R. 7403
Summary
H.R. 7403 exempts certain contracts awarded to small businesses
from the procedural requirements of any federal rule or guidance
on category management or contract consolidation and limits the
inclusion of such contracts when measuring the attainment of any
federal goal or benchmark for category management or contract
consolidation. Such contracts are government contracts awarded
pursuant to Small Business Administration programs that facili-
tate contracting with small businesses owned by socially and eco-
nomically disadvantaged individuals or entities, women, or vet-
erans, or are located in historically underutilized business zones.
Legislative History
H.R. 7403 was introduced on June 29, 2020 by Representative
Chrissy Houlahan (D–PA) and Representative John Joyce (R–PA).
H.R. 7403 was included in H.R. 6395, the William M. (Mac) Thorn-
berry National Defense Authorization Act for Fiscal Year 2021.
H.R. 6395 was reported, as amended, by the House Committee on
Armed Services on June 9, 2020, and passed the House on July 21,
2020, by a vote of 295–125 (Roll Call No. 152). H.R. 7342 was not
included in the final version of the National Defense Authorization
Act of 2020, (H.R. 6395).
SMALL BUSINESS CATEGORY MANAGEMENT TRAINING ACT
H.R. 7533
Summary
H.R. 7533 requires the Small Business Administration to develop
a training curriculum on category management, including best
practices for purchasing goods and services from small businesses,
for the staff of federal agencies with procurement or acquisition re-
sponsibilities. Category management is a federal government ap-
proach to procurement and acquisition that aims to (1) deliver
more savings, value, and efficiency for federal agencies; (2) elimi-
nate contract redundancies; and (3) meet federal small business
contracting and procurement goals.
Legislative History
H.R. 7533 was introduced on July 9, 2020 by Representative
John Joyce (R–PA). H.R. 7533 was included in H.R. 6395, the Wil-
liam M. (Mac) Thornberry National Defense Authorization Act for
Fiscal Year 2021. H.R. 6395 was reported, as amended, by the
House Committee on Armed Services on June 9, 2020, and passed
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the House on July 21, 2020, by a vote of 295–125 (Roll Call No.
152). H.R. 7342 was included in the final version of the National
Defense Authorization Act of 2020, (H.R. 6395).
TO TEMPORARILY EXTEND PARTICIPATION IN THE 8(A) PROGRAM OF
THE SMALL BUSINESS ADMINISTRATION, AND FOR OTHER PURPOSES.
H.R. 7586
Summary
H.R. 7586 amends the Small Business Act to require the Small
Business Administration to allow any small business participating
in its 8(a) Business Development program to extend participation
by a period of one year. The 8(a) Business Development program
limits competition for certain government contracts to small busi-
nesses that participate in the program.
Legislative History
H.R. 7586 was introduced on July 13, 2020 by Representative
Dwight Evans (D–PA) and Representative Ross Spano (R–PA).
H.R. 7586 was included in H.R. 925, the Heroes Act. H.R. 925
passed the House on a motion to concur in the Senate amendments
with an amendment agreed to by a vote of 214–207 (Roll Call No.
214). H.R. 7586 was included in H.R. 6395, the William M. (Mac)
Thornberry National Defense Authorization Act for Fiscal Year
2021. H.R. 6395 was reported, as amended, by the House Com-
mittee on Armed Services on June 9, 2020, and passed the House
on July 21, 2020, by a vote of 295–125 (Roll Call No. 152). H.R.
7342 was included in the final version of the National Defense Au-
thorization Act of 2020, (H.R. 6395). A similar provision was in-
cluded in H.R. 133, as amended, the Consolidated Appropriations
Act, 2021 as Section 330 of Title III of Division N. H.R. 133, as
amended passed the House on December 21, 2020 by a vote of 327–
85 (Roll Call No. 250) and a vote of 359–53 (Roll Call No. 251),
passed by the Senate by a vote of 92–60 (Record Vote No. 289), and
signed by the President on December 27, 2020.
PAYCHECK PROTECTION SMALL BUSINESS FORGIVENESS ACT
H.R. 7777
Summary
H.R. 7777 modifies loan forgiveness under the Paycheck Protec-
tion Program established to support small businesses in response
to COVID–19 (i.e., coronavirus disease 2019). Specifically, the bill
provides for automatic forgiveness of a paycheck protection loan
that is not more than $150,000 if the recipient submits a one-page
form. Such form must allow a recipient to submit specified demo-
graphic and expenditure information, and certain individuals (e.g.,
the President, the Vice President, or the head of an executive de-
partment) are not eligible for such forgiveness. Further, the bill
prohibits any enforcement or other action against a lender relating
to loan origination, forgiveness, or guarantee based on the lender’s
reliance on certifications or documentation submitted by a loan ap-
plicant or recipient.
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Legislative History
H.R. 7777 was introduced on July 24, 2020 by Representative
Chrissy Houlahan (D–PA) and Representative Fred Upton (R–MI).
A similar provision was included in H.R. 925, as amended, the He-
roes Act in Section 201 of Division E. H.R. 925, as amended passed
the House under Suspension of the Rules by a vote of 214–207
(Roll Call No. 214) on October 1, 2020. A similar provision was in-
cluded in H.R. 133, as amended, the Consolidated Appropriations
Act, 2021 as Section 307 of Title III of Division N. H.R. 133, as
amended passed the House on December 21, 2020 by a vote of 327–
85 (Roll Call No. 250) and a vote of 359–53 (Roll Call No. 251),
passed by the Senate by a vote of 92–60 (Record Vote No. 289), and
signed by the President on December 27, 2020.
SAVE OUR STAGES ACT OR SOS ACT
H.R. 7806
Summary
H.R. 7806 authorizes the Small Business Administration (SBA)
to make grants to eligible live venue operators, producers, pro-
moters, or talent representatives to address the economic effects of
the COVID–19 (i.e., coronavirus disease 2019) pandemic on certain
live venues. Specifically, the SBA may make (1) an initial grant of
up to $12 million dollars to an eligible operator, promoter, pro-
ducer, or talent representative; and (2) a supplemental grant that
is equal to 50% of the initial grant. An initial grant must be used
for costs incurred between March 1, 2020, and December 31, 2020,
but a supplemental grant may be used for expenses incurred
through June 30, 2021. Such grants shall be used for specified ex-
penses such as payroll costs, rent, utilities, and personal protective
equipment.
Legislative History
H.R. 7806 was introduced on July 27, 2020 by Representative
Peter Welch (D–VT) and Representative Roger Williams (R–TX). A
similar provision was included in H.R. 925, as amended, the He-
roes Act as Section 619 of Division E. H.R. 925, as amended passed
the House under Suspension of the Rules by a vote of 214–207
(Roll Call No. 214) on October 1, 2020. A similar provision was in-
cluded in H.R. 133, as amended, the Consolidated Appropriations
Act, 2021 as Section 324 of Title III of Division N. H.R. 133, as
amended passed the House on December 21, 2020 by a vote of 327–
85 (Roll Call No. 250) and a vote of 359–53 (Roll Call No. 251),
passed by the Senate by a vote of 92–60 (Record Vote No. 289), and
signed by the President on December 27, 2020.
TO ESTABLISH THE COMMUNITY ADVANTAGE LOAN PROGRAM, AND FOR
OTHER PURPOSES
H.R. 7903
Summary H.R. 7903 amends the Small Business Act to statu-
torily authorize the Small Business Administration’s (SBA) Com-
munity Advantage Loan Program for five years (FY2021–FY2025).
To expedite lending for seasoned Community Advantage lenders,
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the bill also extends delegated lending authority to Community Ad-
vantage lenders who have made at least seven Community Advan-
tage loans, and requires SBA to issue rules allowing Community
Advantage lenders in good standing with SBA to maintain a three
percent loan loss reserve ratio. To promote healthy dialogue be-
tween program participants and SBA, the bill also establishes a
Community Advantage Working Group to develop ongoing rec-
ommendations for SBA to effectively manage, support, and promote
the Community Advantage program, and establish metrics to
evaluate the program’s impact on expanding access to capital to
underserved small businesses.
Legislative History
H.R. 7903 was introduced on July 31, 2020, by Representative
Judy Chu (D–CA). An amendment offered by Rep. Jason Crow (D–
CO) was agreed to by voice vote. An amendment offered by Rep-
resentative Ross Spano (R–FL) was agreed to by voice vote. H.R.
7903 was ordered to be reported, as amended, by the House Com-
mittee on Small Business on September 16, 2020 by voice vote.
H.R. 7903 passed the House by voice vote under Suspension of the
Rules on December 3, 2020.
504 CREDIT RISK MANAGEMENT IMPROVEMENT ACT OF 2020
H.R. 8199
Summary
H.R. 8199 amends the Small Business Investment Act to shift
loan closing file review responsibilities to the Small Business Ad-
ministration’s (SBA) Office of Credit Risk Management (OCRM),
and allows SBA to charge Certified Development Companies
(CDCs) a fee to cover the cost of oversight, which becomes effective
one year after enactment. H.R. 8199 also clarifies OCRM’s duties,
as well as the enforcement actions OCRM may take against a CDC,
which are aligned with those enacted under the 7(a) Oversight Act
of 2018. H.R. 8199 also directs SBA to issue rules for CDC compli-
ance with the National Environmental Policy Act of 1969.
Legislative History
H.R. 8199 was introduced on September 11, 2020, by Representa-
tive Dan Bishop (R–NC) and Representative Angie Craig (D–MN).
H.R. 8199 ordered to be reported by the House Committee on Small
Business on September 16, 2020 by voice vote. H.R. 8199 passed
the House by voice vote under Suspension of the Rules on Decem-
ber 3, 2020.
504 MODERNIZATION AND SMALL MANUFACTURER ACT OF 2020
H.R. 8211
Summary
H.R. 8211 amends the Small Business Investment Act to in-
crease the maximum loan amount for manufacturing loans from
$5.5 million to $6.5 million and require Small Business Adminis-
tration (SBA) District Offices to partner with SBA Resource Part-
ners to provide entrepreneurial development assistance to small
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manufacturers. To make 504 loans more affordable for small manu-
facturers, the bill also provides decreased project costs and adjusts
collateral requirements and debt refinance parameters for small
manufacturers. The bill also streamlines numerous administrative
processes associated with the 504 loan closing process by allowing
accredited Certified Development Companies (CDCs) to perform a
number of closing-related tasks, such as correcting any borrower or
lender information on loan documents. The bill also creates an ‘‘Ex-
press’’ loan closing program for 504 loans under $500,000.
Legislative History
H.R. 8211 was introduced on September 11, 2020, by Representa-
tive Angie Craig (D–MN) and Ranking Member Steve Chabot (R–
OH). Amendments were offered by Chairwoman Nydia Velázquez
(D–NY), Ranking Member Steve Chabot (R–OH), and Representa-
tive Judy Chu (D–CA) and all agreed to by voice vote. H.R. 8211
was ordered to be reported, as amended, by the House Committee
on Small Business on September 16, 2020 by voice vote. H.R. 8211,
as amended passed the House by voice vote under Suspension of
the Rules on December 3, 2020.
PARITY FOR HUBZONE APPEALS ACT OF 2020
H.R. 8229
Summary
H.R. 8229 directs the Small Business Administration (SBA) to
issue regulations, no later than a year after its enactment, to grant
the Office of Hearings and Appeals (OHA) jurisdiction over
HUBZone status appeals. Currently, OHA does not hear appeals of
HUBZone status protest determinations. Those appeals are heard
by the SBA’s Associate Administrator of the Office of Government
Contracting & Business Development (AA/GCBD). The purpose of
the bill is to achieve parity and uniformity of appeal processes be-
tween the HUBZone Program and the SDVOSB and WOSB pro-
grams by shifting the responsibility to hear HUBZone status ap-
peals from the AA/GCBD to OHA. H.R. 8229 promotes efficiency
and guarantees expertise by providing OHA with jurisdiction over
all program status appeals. Finally, it encourages transparency and
consistency in opinions since OHA opinions are published.
Legislative History
H.R. 8229 was introduced on September 11, 2020 by Representa-
tive Aumua Amata Coleman Radewagen (R–AS) and Representa-
tive Chrissy Houlahan (D–PA). H.R. 8229 was ordered to be re-
ported by the House Committee on Small Business on September
16, 2020 by voice vote. H.R. 8229 passed the House by voice vote
under Suspension of the Rules on December 3, 2020.
SMALL BUSINESS DEBT RELIEF EXTENSION ACT OF 2020
H.R. 8376
Summary
H.R. 8376 extends and expands the debt relief for certain SBA
loans that was provided in the CARES Act. Specifically, the bill ex-
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tends for another six months to eighteen months loan subsidy pay-
ments on SBA 7(a), 504, and microloans.
Legislative History
H.R. 8376 was introduced on September 24, 2020 by Representa-
tive Antonio Delgado (D–NY). A similar provision was included in
H.R. 925, as amended, the Heroes Act as Section 602 of Division
E. H.R. 925, as amended passed the House under Suspension of the
Rules by a vote of 214–207 (Roll Call No. 214) on October 1, 2020.
A similar provision was included in H.R. 133, as amended, the Con-
solidated Appropriations Act, 2021 as Section 325 of Title III of Di-
vision N. H.R. 133, as amended passed the House on December 21,
2020 by a vote of 327–85 (Roll Call No. 250) and a vote of 359–
53 (Roll Call No. 251), passed by the Senate by a vote of 92–60
(Record Vote No. 289), and signed by the President on December
27, 2020.
A BILL TO EXTEND THE AUTHORITY FOR COMMITMENTS FOR THE PAY-
CHECK PROTECTION PROGRAM AND SEPARATE AMOUNTS AUTHOR-
IZED FOR OTHER LOANS UNDER SECTION 7(A) OF THE SMALL BUSI-
NESS ACT, AND FOR OTHER PURPOSES.
S. 4116
Summary
S. 4116 extends through August 8, 2020, the application period
for the Paycheck Protection Program established to support small
businesses in response to COVID–19 (i.e., coronavirus disease
2019).
Legislative History
S. 4116 passed the House under Unanimous Consent on July 1,
2020 and signed by the President on July 4, 2020 (Pub. Law No.
116–147) The House bill, H.R. 7437 was introduced on July 1, 2020
by Representative Angie Craig (D–MN).
EXPRESSING SUPPORT FOR THE DESIGNATION OF THE WEEK OF MAY
5, 2019 THROUGH MAY 11, 2019, AS ‘‘NATIONAL SMALL BUSINESS
WEEK’’ TO CELEBRATE THE CONTRIBUTIONS OF SMALL BUSINESSES
AND ENTREPRENEURS IN EVERY COMMUNITY IN THE UNITED
STATES.
H. RES. 347
Summary
H. Res. 347 celebrates the contributions of small businesses and
entrepreneurs in every U.S. community and supports the designa-
tion of National Small Business Week. Further, it supports efforts
to provide small businesses with aid and assistance through certain
programs and initiatives.
Legislative History
H. Res. 347 was introduced on May 1, 2019 by Chairwoman
Nydia Velázquez (D–NY) and Ranking Member Steve Chabot (R–
OH) and most members of the committee.
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EXPRESSING SUPPORT FOR THE RECOGNITION AND CELEBRATION OF
THE VITAL ROLE OF SMALL BUSINESSES, ALONG WITH THE EFFORTS
OF THE SMALL BUSINESS ADMINISTRATION TO HELP AMERICANS
START, BUILD, AND GROW BUSINESSES.
H. RES. 730
Summary
H. Res. 730 recognizes and celebrates small businesses by (1) ac-
knowledging the importance of promoting a business-friendly envi-
ronment for small business owners, (2) encouraging young entre-
preneurs to pursue their passions and create more startup busi-
nesses, and (3) conveying appreciation for the ways small busi-
nesses support their communities and workers.
Legislative History
H. Res. 730 was introduced on November 21, 2019 by Chair-
woman Nydia Velázquez (D–NY) and Ranking Member Steve
Chabot (R–OH) and all members of the committee.
EXPRESSING SUPPORT FOR THE DESIGNATION OF SEPTEMBER 22, 2020
TO SEPTEMBER 24, 2020, AS ‘‘NATIONAL SMALL BUSINESS WEEK’’ TO
HONOR THE ENTREPRENEURIAL SPIRIT AND CONTRIBUTIONS OF
SMALL BUSINESSES AND ENTREPRENEURS IN THE UNITED STATES
H. RES. 1134
Summary
H. Res. 1134 celebrates the contributions of small businesses and
entrepreneurs in every U.S. community and supports the designa-
tion of National Small Business Week. Further, it supports efforts
to provide small businesses with aid and assistance through certain
programs and initiatives.
Legislative History
H. Res. 1134 was introduced on September 24, 2020 by Chair-
woman Nydia Velázquez (D–NY) and Ranking Member Steve
Chabot (R–OH) and most members of the committee.
EXPRESSING SUPPORT FOR THE RECOGNITION AND CELEBRATION OF
THE VITAL ROLE OF SMALL BUSINESSES, ALONG WITH THE EFFORTS
OF THE SMALL BUSINESS ADMINISTRATION TO HELP AMERICANS
START, BUILD, AND GROW BUSINESSES.
H. RES. 1235
Summary
H. Res. 1235 recognizes and celebrates small businesses by (1)
acknowledging the importance of promoting a business-friendly en-
vironment for small business owners, (2) supporting small firms
through the COVID–19 crisis, (3) encouraging young entrepreneurs
to pursue their passions and create more startup businesses, and
(4) conveying appreciation for the ways small businesses support
their communities and workers.
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Legislative History
H. Res. 1235 was introduced on November 20, 2020 by Chair-
woman Nydia Velázquez (D–NY) and Ranking Member Steve
Chabot (R–OH) and members of the committee.
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OVERSIGHT SUMMARY
Clause 1(d) of Rule XI of the Rules of the House of Representa-
tives for the 116th Congress 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 sep-
arate section summarizing the oversight activities of that com-
mittee. 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 government programs.
PART A
FULL COMMITTEE HEARINGS
FIRST SESSION OF THE 116TH CONGRESS
THE SHUTDOWN: ECONOMIC IMPACT ON SMALL BUSINESSES
On Wednesday, February 6, 2019, the Committee on Small Busi-
ness held a hearing entitled: ‘‘The Shutdown: Economic Impact on
Small Businesses.’’ The hearing examined the impact the partial
government shutdown had on small businesses, federal workers,
contractors, and the general economy. The hearing provided an op-
portunity for Members of the Committee to hear directly from
small business owners on how they were impacted from shuttered
agencies.
The witnesses for the hearing were: Dr. Matthew D. Shapiro,
Professor of Economics at the University of Michigan; Mr. Bill
Butcher, Founder of Port City Brewing Company; Ms. Heidi
Gerding, CEO of HeiTech Services, Inc. and Mr. Charles ‘‘Tee’’
Rowe, President and CEO of America’s Small Business Develop-
ment Centers.
The witnesses expressed frustration and an inability to operate
at full capacity, while awaiting a full resolution that can bring
long-term certainty. Further, one witnesses outlined the impact the
shutdown had on staff moral and their financial outlook for the re-
mainder of the year. Dr. Matthew Shapiro, an Economist from the
University of Michigan, also provided an analysis of what happens
to family pocketbooks and consumer spending when a prolonged
government shutdown occurs.
SMALL BUSINESS PRIORITIES FOR THE 116TH CONGRESS
On Wednesday, February 13, 2019, the Committee on Small
Business held a hearing entitled: ‘‘Small Business Priorities for the
116th Congress.’’ The hearing was intended to inform future com-
mittee hearings, advocacy efforts, and legislative priorities. The
hearing gave Members of the Committee the opportunity to hear
(63)
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from small business organizations and small business owners on
what priorities the 116th Congress should focus on and provided
the Committee with ideas about federal policies that will help them
grow their businesses.
The witnesses for the hearing were: Mr. John Arensmeyer,
Founder & CEO of Small Business Majority; Ms. Sabrina Parsons,
CEO of Palo Alto Software; Mr. J Kelly Conklin, CO-Owner &
Founder Foley Wait LLC; and Mr. Thomas M. Sullivan, Vice Presi-
dent at Small Business Policy.
The panel discussed various policies, such as paid family leave,
and SBA programming that has allowed them and their members
to expand business operations, while also highlighting areas of con-
cern. Witnesses also highlighted the need for updated access to re-
liable broadband for rural communities as a way to address the de-
clining startup rate in these areas.
SUPPORTING AMERICA’S STARTUPS: REVIEW OF THE SBA’S
ENTREPRENEURIAL DEVELOPMENT PROGRAMS
On Thursday, February 27, 2019, the Committee on Small Busi-
ness held a hearing titled: ‘‘Supporting America’s Startups: Review
of the SBA’s Entrepreneurial Development Programs.’’ The hearing
examined how the Small Business Administration’s (SBA) Entre-
preneurial Development programs work and offered Members of
the Committee the opportunity to review the major technical as-
sistance programs.
The witnesses for the hearing were: Mr. Charles ‘‘Tee’’ Rowe,
President and CEO of America’s Small Business Development Cen-
ters; Ms. Corinne Hodges, CEO, Association of Women Business
Centers; Mr. W. Kenneth Yancey, Jr. CEO, SCORE; and Ms.
Cherylynn Sagester, Director, Veterans Business Outreach Center,
Old Dominion University, Virginia.
The witnesses provided testimony detailing the history and mis-
sion of each entrepreneurial development program, and they also
made specific recommendations to improve the programs. Mr. Tee
Rowe testified that the reauthorization of the Small Business De-
velopment Center (SBDC) program is long overdue and rec-
ommended that the Committee consider a proposal that would in-
crease the authorization level for SBDCs, strengthen the collabora-
tion between the Small Business Administration (SBA) and
SBDCs, clarify SBDC marketing and co-sponsorship activities, and
make several other changes. Ms. Hodges testified that legislation
to reauthorize the Women’s Business Centers (WBC) is necessary
and certain changes were needed to strengthen the program. Ms.
Hodges would like the Committee to consider proposals to increase
the cap of $150,000 per center, remove requirements that require
centers to overmatch federal funds, increase federal funds, and
strengthen data to better quantify the growth of women’s entrepre-
neurship. Mr. Yancey testified about the history, mission, and ac-
tivities of the SCORE program. More specifically, he discussed
plans to centralize the accounting system at the national level to
reduce the bookkeeping and reporting burdens for chapters, and
their efforts to centralize the social media program so chapters
could provide more counseling and mentoring. In addition, Mr.
Yancey discussed an appropriation request of $13.5 million in fund-
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ing for SCORE. Ms. Sagester testified in support of the Boots to
Business program and Veterans Business Outreach Centers.
REBUILDING AMERICA: SMALL BUSINESS PERSPECTIVE
On Wednesday, March 6, 2019, the Small Business Committee
held a hearing titled: ‘‘Rebuilding America: Small Business Per-
spective.’’ The hearing allowed Members of the Committee to hear
about the country’s current infrastructure needs and how small
businesses can stand to benefit from a comprehensive plan that in-
cludes surface, broadband, and water, among others.
Witnesses included Ms. Terri Williams, Director, SBDC Procure-
ment Technical Assistance Center, University of Texas at San An-
tonio (UTSA), San Antonio, Texas; Mr. Tim Donovan, Senior Vice
President, Legislative Affairs, Competitive Carriers Association,
Washington, D.C.; Ms. Roseline Bougher, President, A.D. Marble,
King of Prussia, Pennsylvania (testify on behalf of the American
Council of Engineering Companies); and The Honorable Kris
Knochelmann, Judge Executive and President, Ohio-Kentucky-Indi-
ana Regional Council of Governments, Kenton County, KY.
Ms. Williams testified that infrastructure powers businesses, cre-
ates opportunities for communities, enables trade, connects work-
ers to their jobs, creates opportunities for struggling communities
and protects the nation from an increasingly unpredictable natural
environment. Her testimony highlighted that adequate broadband
connects small businesses with customers, enables remote access to
employees and improves operations. Ms. Williams also testified
about the importance of government contracts for businesses in her
area stating that the federal establishment of business utilization
goals is a good start to rebuilding America’s business economy.
Ms. Bougher testified that Congress has a unique opportunity in
2019 to pass major infrastructure legislation to modernize the na-
tion’s transportation, water, energy, and communications systems
to enhance U.S. competitiveness in the global marketplace and pro-
vide robust contracting opportunities for small businesses like hers.
In addition, she mentioned these will also provide local businesses
with direct contracting opportunities, and the flow-down effect
helps bolster other local economic activity as well. Mr.
Knochelmann emphasized that small businesses are the lifeblood of
the American economy but are also competing in a global economy.
He testified that this depends on the adequately performing road,
airports, and bridges mentioning that the current state of our
crumbling infrastructure is stifling economic growth.
FLIPPING THE SWITCH ON RURAL DIGITAL ENTREPRENEURSHIP
On Wednesday, March 13, 2019, the Committee on Small Busi-
ness held a hearing titled: ‘‘Flipping the Switch on Rural Digital
Entrepreneurship.’’ According to U.S. Census data, only 17 percent
of businesses are located in rural areas despite 97 percent of the
nation being classified as rural. The hearing allowed Members of
the Committee to review opportunities online technology holds and
examine the barriers rural small businesses face.
Witnesses included Mr. Dana F. Connors, President and CEO,
Main State Chamber of Commerce, Augusta, ME, Testifying on be-
half of the Maine State Chamber; Mr. Bill Ingersoll, Founder,
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Bikes, Trikes and Quads, Sloansville, NY; Ms. Afton Stout, Found-
er, My Dinosaur Dreams, State Center, Iowa and Mr. Jake Ward,
President Connected Commerce Council, Washington, DC.
Ms. Connors’ testimony focused on a report titled Unlocking the
Digital Potential of Rural America, that detailed how digital tools
are driving the success of small businesses in rural America and
the opportunity digital tools present for entrepreneurs living in
rural America. Specifically, her testimony highlighted that digital
technology boosts sales and reduces costs for rural small businesses
by helping businesses expand their customer base in their own
community, neighboring states, and, in some cases, outside of the
country as well. Mr. Ingersoll highlighted as well that rural
broadband is essential to ensuring that rural small business own-
ers and entrepreneurs can take advantage of the latest technologies
and reach customers. He also testified about the importance of the
U.S. Postal Service. Small businesses rely on affordable, reliable
and universal postal service. He went to state that like broadband,
the US Postal Service is essential for all Americans, no matter
where they live, and without it, rural small businesses will have
a harder time competing with giant e-commerce companies that
have their own warehouses and logistics networks. Ms. Stout testi-
fied that platforms like Etsy represent a new face of entrepreneur-
ship—87% are women, and on average, these entrepreneurs are
much younger than traditional business owners.
UNLOCKING SMALL BUSINESS RETIREMENT SECURITY
On Wednesday, March 27, 2019, the Committee on Small Busi-
ness held a hearing titled: ‘‘Unlocking Small Business Retirement
Security.’’ The hearing examined retirement plan options for small
employers, the benefits and barriers they face in offering plans,
and options for expanding coverage for their workers.
The witnesses for the hearing were Martella A. Turner-Joseph,
Founding Partner Joseph & Turner Consulting Actuaries, LLC
New York, NY Testifying on behalf of the American Retirement As-
sociation; Mr. Paul F. Davidson Director, Product Management
Paychex, Inc. Rochester NY; Mr. Greg Gorgone CFO Citizant, Inc
Chantilly, Virginia, Testifying on behalf of the U.S. Women’s
Chamber of Commerce and Mr. Keith Hall President and Chief Ex-
ecutive Officer National Association for the Self-Employed Wash-
ington, DC.
The hearing discussed how Congress can help more small busi-
nesses provide their employees with affordable retirement plans.
Today, half of all small businesses do not have a retirement plan
set up and millions of workers have little saved for their retire-
ment. Witnesses testimony focused on reversing this trend by look-
ing at the possibilities of reducing the student debt burden facing
young professionals, offering increased tax incentives to small busi-
ness owners who choose to sponsor a plan, exploring auto-enroll-
ment, and potentially allowing small firms to band together to offer
retirement plans which could lead to administrative savings and
reduced fiduciary liability.
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NATIONAL SMALL BUSINESS WEEK: HONORING THE NATION’S SMALL
BUSINESS HEROES
On Wednesday, May 8, 2019 the Committee on Small Business
held a hearing titled: ‘‘Honoring the Nation’s Small Business He-
roes.’’ The Small Business Administration (SBA) has designated
May 5–11 as its National Small Business Week. To honor all of
America’s entrepreneurs, the House Small Business Committee
brought in business leaders from across the country who exemplify
the determination, hard work, and creativity that showcases the
American entrepreneurial spirit.
Witnesses included, Ms. Gia Giasullo Owner Brooklyn Farmacy
& Soda Fountain Brooklyn, NY; Ms. Amy Fox President & Oper-
ations Spiral Brewery Hastings, MN; Mr. Nels Leader Vice Presi-
dent Bread Alone Bakery Lake Katrine, NY; Mr. Robert Hoffman
Broker Robert Hoffman Realty Inc. Albert Lea, MN; Mr. Jason
Brochu President and Co-Owner Pleasant River Lumber Dover-
Foxcroft, ME; Mr. Kristofer Sabey President Surf Liquors & Mar-
ket Seaside Heights, NJ; Mr. Bill Skalish Owner Granite Tech, Inc.
and The Benchmark GRP, LLC Landenberg, PA; Mr. Jerry
Kortesmaki Owner London Road Rental Center Duluth, MN; Mr.
Dave Walton Farmer Iowa Soybean Association Wilton, IA; Ms.
Brittney Reese Co-Founder and Head FIT Coach FIT & NU Au-
rora, CO; Ms. Colleen Cruze Bhatti Owner Cruze Farm Knoxville,
TN; Mr. Shawn Pulford CEO LB Water Chambersburg, PA.
The estimated 30 million small firms in the U.S., represent 99.7
percent of all employers and generate two-thirds of all net new
jobs. Members of Congress were able to hear directly from small
businesses across the country about the challenges they face start-
ing a small business, the rewarding experience of building a suc-
cessful company, and the impact they have on their local commu-
nities. Witnesses testified that access to affordable capital, finding
and retaining talented workers, accessing new customers, and com-
peting against larger competitors all provide headwinds for small
business success. They suggested, among other things, that Con-
gress should expand access to capital, workforce development and
opportunities to do business with the federal government.
MEMBER DAY HEARING: COMMITTEE ON SMALL BUSINESS
On Wednesday, May 15, 2019, the Committee on Small Business
held a hearing titled: ‘‘Member Day Hearing: Committee on Small
Business.’’ House Rules require that each Committee allow Mem-
bers of Congress to testify regarding jurisdictional issues of each
Committee that impacts their constituents.
Witnesses included the Honorable Ed Case Member of Congress
U.S. House of Representatives Washington, DC and the Honorable
Tony Cárdenas Member of Congress U.S. House of Representatives
Washington, D.C.
Representative Case encouraged the Committee to enhance pro-
grams that benefit minority owned small businesses such as the 8a
program especially for Asian & Pacific Islander Americans. Among
other things, Representative Cardenas encourages the Committee
to support programs and politics bridge the skill gap between the
available workforce and employers by investing in funding pro-
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grams that will encourage the development of computer science ca-
reer education programs that meet the market needs of employers.
IMMIGRATION AND THE SMALL BUSINESS WORKFORCE
On Wednesday, May 22, 2019, the Committee on Small Business
held a hearing titled: ‘‘Immigration and the Small Business Work-
force.’’ Temporary and permanent immigration have long been at
the forefront of the national conversation, yet the labor force needs
of small businesses in this regard are often overlooked. The hearing
allowed Members of the Committee to examine the current chal-
lenges small businesses face in hiring qualified foreign labor and
what legislative solutions would help them.
Witnesses included Mr. Dan Wallace, Director of Special Projects,
New American Economy, New York, NY; Mr. Derek Shoare, Senior
Vice President, Challenger Sports, Lenexa, KS; Mr. Nick Sabino,
Founder, Deer Park Roofing Inc., Cincinnati, OH (Testifying on be-
half of the National Roofing Contractors Association) and Mr. Dan-
iel Griswold, Senior Research Fellow and Co-Director, Trade and
Immigration Project, Mercatus Center at George Mason University,
Arlington, VA.
Witnesses testified Immigrants not only help fill shortages in the
labor market, they also create jobs for Americans at every skill
level noting that although they represent roughly 13.7 percent of
the U.S. population immigrants account for more than 20 percent
of all entrepreneurs. Witnesses also testified there are not enough
American workers available to work full time in seasonal programs
particularly in the agriculture, construction, and hospitality indus-
tries. Witnesses suggested reforming the nation’s immigration sys-
tem will help small businesses and stimulate economic growth.
THE DOCTOR IS OUT: RISING STUDENT LOAN DEBT AND THE DECLINE
OF SMALL MEDICAL PRACTICE
On Wednesday, June 12, 2019, the Committee on Small Business
held a hearing titled: ‘‘The Doctor is Out: Rising Student Loan
Debt and the Decline of Small Medical Practice.’’ The hearing pro-
vided the Committee the opportunity to understand the link be-
tween the growing student loan crisis and the problems facing the
medical community. This includes the incentive structure for those
exiting their Graduate Medical Education (GME) or Residency and
entering the workforce.
Witnesses included Ms. Sandy Norby PT, DPT, CEO of Home-
Town Physical Therapy, Des Moines, IA; Dr. Lauren Weise, Ortho-
dontic Resident, University of Maryland School of Dentistry, Balti-
more, MD; Dr. Tracy Henry, MD, MPH, MS, Assistant Professor of
Medicine, Emory University, Atlanta GA; Mr. Jason Delisle, Resi-
dent Fellow, American Enterprise Institute. Washington, D.C.
The Panel discussed how the growing student loan debt crisis
was affecting their decisions. Physicians have some of the highest
debt burden of anyone in the country, and that adversely effects
where they end up practicing medicine. Ms. Norby’s business model
is to find physical therapists that grew up in rural Iowa to come
back to their hometown and practice physical therapy there. She
mentioned that it is hard to convince them to come back because
they will not be making enough to pay back their student loans
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alongside managing a business and affording a place to live. Dr.
Weise noted that many of her orthodontic colleagues are in upper-
six-figure debt, and the large amounts of debt she owes prevents
her from opening her own practice, and her husband from going to
med school. Dr. Henry testified to keep programs like Public Serv-
ice Loan Forgiveness (PSLF) from being undercut by the Trump
Administration because she is using them to pay off her mountains
of debt. The Republican witness, Jason Delisle, took the opposite
approach, arguing that those same programs should be cut to noth-
ing and done away with.
UNLOCKED POTENTIAL? SMALL BUSINESSES IN THE CANNABIS
INDUSTRY
On Wednesday, June 19, 2019, the Committee on Small Business
held a hearing titled: ‘‘Unlocked Potential? Small Businesses in the
Cannabis Industry.’’ The hearing allowed Members to learn about
the opportunities the legitimate cannabis industry presents for
small businesses in states with legal cannabis, as well as entre-
preneurs from traditionally underserved communities. The hearing
also explored the challenges currently faced by those ‘‘direct’’ can-
nabis businesses, but also by so-called ‘‘ancillary’’ or ‘‘indirect’’ can-
nabis businesses that may not be directly involved in the produc-
tion or distribution of cannabis products but transact with direct
cannabis businesses.
Witnesses on the panel were: Ms. Shanita Penny, M.B.A.; Presi-
dent of the Board of Directors, Minority Cannabis Business Asso-
ciation, Washington, DC; Mr. Eric Goepel; Founder & CEO, Vet-
erans Cannabis Coalition, Walnut, CA; Ms. Dana Chaves; Senior
Vice President and Director of Specialty Banking, First Federal
Bank of Florida, Lake City, FL; and Mr. Paul Larkin; John, Bar-
bara, and Victoria Rumpel Senior Legal Research Fellow in the
Meese Center for Legal and Judicial Studies, The Heritage Founda-
tion, Washington, DC.
Ms. Penny testified on how the legal cannabis industry presents
significant business opportunities, especially for people of color, as
the underground market transitions into a regulated business sec-
tor. However, onerous capital requirements, restrictions on licens-
ing for those with minor drug-related offenses, and numerous other
factors have limited opportunities and success for minorities and
other disadvantaged groups in the legal cannabis industry. She tes-
tified that a lack of access to capital contributes to the widening
ownership equity gap, and that access to SBA’s loan programs
would help close the equity gap in the legal cannabis industries
and help keep cannabis revenues in the communities suffering the
greatest economic and social harms of the War on Drugs.
Mr. Goepel testified that because of their regular interaction
with the federal government for healthcare, education, housing,
and employment, veterans find themselves particularly impacted
by federal cannabis prohibition. He also testified that considering
the synergy that veterans have long maintained with cannabis, it
is a disservice for government to prevent those who served when
called on from pursuing their life and liberty. Ms. Chaves testified
regarding her experience as a community banker in two states with
some form of legal cannabis, and the challenges she’s faced in de-
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livering financial services to legitimate cannabis-related busi-
nesses. Mr. Larkin testified that if Congress were to legalize adult-
use cannabis, it should require that states own and manage dis-
tribution facilities.
CRUSHED BY CONFESSIONS OF JUDGMENT: THE SMALL BUSINESS
STORY
On Wednesday, June 26, 2019, the Committee on Small Business
held a hearing titled: ‘‘Crushed by Confessions of Judgment: The
Small Business Story.’’ The hearing allowed the Committee to ex-
amine the practice of merchant cash advance (‘‘MCA’’) companies
requiring small businesses to sign a confession of judgment as a
condition of receiving a funds. Members heard from a variety of
witnesses detailing the legalities of the practice, its use, and impact
on small business borrowers.
Witnesses on the panel were: Mr. Hosea H. Harvey, Law Pro-
fessor and Consumer Finance Law Expert, Philadelphia, PA; Mr.
Jerry Bush; Former Owner, JB Plumbing & Heating of Virginia,
Inc., Roanoke, VA; Mr. Shane Heskin, Partner, White and Wil-
liams, LLP., Philadelphia, PA; and Mr. Benjamin R. Picker, Share-
holder, McCausland Keen + Buckman, Devon, PA.
Mr. Harvey testified that though current law generally presumes
that business-to-business transactions take place between sophisti-
cated parties on equal footing (unlike consumer transactions), the
theoretical line between consumer and business credit transactions
has blurred over time. He also noted that a discrepancy among
state laws (and silence in federal law) on this issue has made the
use of confessions of judgment in small business lending ripe for
abuse. Mr. Bush testified regarding his experience as a business
owner who was approached by MCA companies that pressured him
into taking out one of their loan-like cash products and signing the
corresponding confession of judgment, which enabled the lender to
declare delinquency on the cash product and quickly obtain repay-
ment by draining his bank accounts.
Mr. Heskin testified regarding his experience as a litigation at-
torney who has defended more than fifty small businesses and indi-
viduals in connection with confessions of judgment across the coun-
try. His testimony highlighted the lengths to which MCA compa-
nies go to attempt to collect debts allegedly owed, going so far as
harassing borrowers and their families. He also argued the Fair
Debt Collection Practices Act should apply to small business bor-
rowers. Mr. Picker testified that any legislation on confessions of
judgment should be limited to small business loans; should require
the confession of judgment provision be capitalized, bolded, and
that a plain language disclosure should be placed on the first page
of the contract; and should require that the confessed judgment be
filed only in the state where the borrower is located.
CONTINUING TO SERVE: FROM MILITARY TO ENTREPRENEUR
On Wednesday, July 10, 2019, the Committee on Small Business
held a hearing titled: ‘‘Continuing to Serve: From Military to Entre-
preneur.’’ The purpose of the hearing was to discuss the role of vet-
eran entrepreneurs in growing the economy and examine legisla-
tive efforts to foster veteran entrepreneurship.
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The witnesses for the hearing were: Mr. Davy Leghorn, Assistant
Director for The American Legion; Mr. Scott M. Davidson, Owner
of GCO Consulting, Retired Army Captain; Ms. Torrance Har-
rington Hart, Owner of Teak and Twine; and Ms. Laurie Sayles,
President and CEO of Civility Management Solutions (CivilityMS).
The witnesses testified about their experiences with veteran en-
trepreneurship and expressed support for legislative initiatives, in-
cluding the codification of the Boots to Business program, improve-
ments to the Military Reservist Economic Injury Disaster Loan
(MREIDL) program, and the SBA assumption of the VA certifi-
cation process for service-disabled veteran-owned small businesses.
Mr. Leghorn testified on behalf of The American Legion supporting
draft legislation for: the codification of the Boots to Business pro-
gram, calling it ‘‘imperative to make a permanent fixture’’; reform
of the MREIDL program to reflect more accurately current deploy-
ment practices; and the SBA adoption of VA certifications. Mr.
Davidson’s testimony expressed support for the Boots to Business
program and advocated for the SBA assumption of VA certification
on practical, track-record grounds. Ms. Hart testified about her ex-
periences as a veteran entrepreneur and military spouse, and ex-
pressed support for the Boots to Business program, particularly for
military spouses. Military spouses oftentimes forgo careers because
of frequent moves, which make it difficult to get established. Entre-
preneurship can help to overcome these barriers for military
spouses. Ms. Sayles testified in support of SBA assumption of VA
certifications for service-disabled veteran-owned small business
(SDVOSB), and advocated for greater transparency and account-
ability in sub-contracting plans for government awarded contracts.
FLOODED OUT: VANISHING ENVIRONMENTAL REVIEWS AND THE SBA’S
DISASTER LOAN PROGRAM
On Friday, July 19, 2019, in Wheeling, IL, the Committee on
Small Business met for a field hearing titled: ‘‘Flooded Out: Van-
ishing Environmental Reviews and the SBA’s Disaster Loan Pro-
gram.’’ They examined the utilization of the SBA’s Disaster Loan
Program in the context of severe flooding that impacted parts of Il-
linois in 2017. Members heard from a variety of witnesses who will
address how the floods impacted their local communities.
The witnesses were Mr. Mark Warner, Executive Director, Lake
County Stormwater Management Commission, Lake County, IL;
Mr. Howard Learner, Executive Director, the Environmental Law
& Policy Center, Chicago, IL; and Mr. John Durning, Owner Piz-
zeria Deville, Libertyville, IL.
Mr. Warner testified that Lake County has seen record setting
increases in flooding over the last three years and in particular
that the July 2017 flood set record high water levels on all nine
river gages throughout the County, caused millions of dollars of
damage and threatened the lives of many residents and visitors.
He also testified that communities along the Des Plaines and Fox
River watersheds have long faced flooding issues during significant
rain events. Since 2013 alone, Lake County has experience two
‘‘100-year floods,’’ and 6 of the 10 largest storm events on record
have occurred since 1994. In July 2017, intense storms damaged
more than 3,200 homes, resulting in a state of emergency declara-
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tion for the region and causing millions of dollars in damage to the
community. As a result, after severe businesses in Lake County, Il-
linois utilized SBA’s disaster loans to rebuild and recover. Mr.
Durning, who owns Pizzeria DeVille in Libertyville, testified that
the 2017 floods destroyed equipment and shut down parts of his
restaurant for six weeks. Witnesses testified that environmental re-
views protect communities by studying in advance the social, envi-
ronmental, and economic harms that could result from a construc-
tion project. With projections of more severe future flooding across
the country, the SBA disaster loan program could face further un-
necessary strain. The hearing allowed Members of Congress to con-
sider adapting the program to face additional challenges related to
increasing disasters, and how compliance with required environ-
mental reviews can ensure the longevity of the SBA disaster pro-
gram.
IS THE TAX CUTS AND JOBS ACT A HELP OR HINDRANCE TO MAIN
STREET?
On Wednesday, July 24, 2019, the Committee on Small Business
held a hearing titled: ‘‘Is the Tax Cuts and Jobs Act a Help or
Hinderance to Main Street?’’ The hearing examined how the Tax
Cuts and Jobs Act has affected small businesses. The Committee
heard from a policy expert and small businesses testified how the
current tax law has impacted them, and what outstanding issues
still exist.
The witnesses included Ms. Jane Gravelle Senior Specialist in
Economic Policy Congressional Research Service Washington, DC;
Mr. Grafton H Willey, IV CPA and Small Business Owner Sole-
Proprietor Portsmouth, RI, testifying on behalf of the NSBA-Na-
tional Small Business Association and the RI Society of CPA’s; Mr.
Muneer Baig Founder & CEO SYSUSA, Inc. Manassas, VA, testi-
fying on behalf of Small Business Majority; and Mr. Justin Conger
President Conger Construction Group Lebanon, OH.
Ms. Gravelle testified the tax bill can affect small businesses
through an increase in overall economic growth that increases de-
mand for their products. She went on to explain that Although
some claims were made for significant short-term growth, with
some sources claiming the tax cut would produce enough growth to
pay for itself, most analysts projected a relatively small effect on
the economy in the short run, ranging from 0.1% to 0.8% of GDP
in 2018. Mr. Willey testified that there were good things in the Tax
Cuts and Jobs Act (TCJA) but negative things as well. He testified
from a tax simplification perspective, a key goal of tax reform for
small businesses, the TCJA was a ‘‘dismal failure.’’ He also testi-
fied that in attempting to create parity between large corporations
and small businesses, the TCJA provided good benefits to large cor-
porations and left small businesses short on the parity issue. Mr.
Baig testified that TCJA failed to deliver upon its promise for most
Main Street small businesses, including his to create more jobs.
UTILIZATION MANAGEMENT: BARRIERS TO CARE AND BURDENS ON
SMALL MEDICAL PRACTICES
On Wednesday, September 11, 2019, the Committee on Small
Business held a hearing titled: ‘‘Utilization Management: Barriers
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to Care and Burdens on Small Medical Practices.’’ The hearing pro-
vided the Committee the opportunity to understand increasing
costs and administrative burdens for doctors caused by utilization
management by insurance companies in the form of prior author-
ization and step therapy. These practices cause medical profes-
sionals to spend their time filling out duplicative forms and sitting
on hold with insurance company representatives to argue that the
patient should in fact get the medication, device, or procedure pre-
scribed by the doctor. These programs affect the quality of care and
prove overly burdensome on many small medical practices.
Witnesses included Dr. Paul M. Harari, M.D., Professor and
Chairman, Department of Human Oncology, University of Wis-
consin School of Medicine and Public Health; Testifying on behalf
of the American Society for Radiation Oncology. Dr. David R.
Walega, M.D., MSCI, Associate Professor of Anesthesiology; Chief,
Division of Pain Medicine; Vice Chair for Research, Department of
Anesthesiology, Northwestern University Feinberg School of Medi-
cine; Testifying on behalf of the American Society of Anesthesi-
ology. Dr. John Cullen, M.D., President, American Academy of
Family Physicians. Dr. Howard Rogers, M.D., FAAD, Advanced
Dermatology, Testifying on behalf of the American Academy of Der-
matology Association.
The Panel discussed how the growing burden of prior authoriza-
tion is distracting them from providing quality care for their pa-
tients and causing an undue financial burden on their practices.
Dr. Harari testified that many of the requirements enforced by in-
surance companies for prior authorization do not align with the
treatment codes set up by the American Society for Radiation On-
cology. Dr. Walega testified about his patient, who was denied a
simple, minimally invasive surgery that would have saved her
much pain and from opioids, and spent months arguing with insur-
ance companies for her to get the surgery. Dr. Cullen testified
about the many hours of uncompensated administrative work asso-
ciated with prior authorization and how that hurts his small prac-
tice in a town of 4,000 residents in Valdez, AK, where he is the pri-
mary caregiver. Dr. Rogers, also testified to the growing burden on
physician practice and how this can negatively affect care and the
patient-physician relationship.
THE ROLE OF THE SBA 8(A) PROGRAM IN ENHANCING ECONOMIC
OPPORTUNITIES
On September 18, 2019, the Committee on Small Business held
a hearing titled: ‘‘The Role of the SBA 8(a) Program in Enhancing
Economic Opportunities.’’ The hearing focused on SBA’s 8(a) pro-
gram, which was designed as a business development program to
help disadvantaged businesses compete in the federal marketplace.
The hearing examined how the program operates, the benefits to
entrepreneurs and communities, and steps Congress can take to
improve the effectiveness of the program.
The witnesses for the hearing were: Mr. Ralph C. Thomas III,
Executive Director Emeritus & Representative of the National As-
sociation of Minority Contractors (NAMC) and Lawyer, Law Offices
of Ralph C. Thomas III PLLC, Washington, D.C.; Ms. Dottie Li,
Founder and CEO of Transpacific Communications, Cheverly, MD;
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Mr. Clarence McAllister, CEO of Fortis Networks, Phoenix, AZ;
and Ms. Rebecca Askew, CEO & General Counsel, Circuit Media
LLC, Denver, CO.
The witnesses testified that the 8(a) program is one of the Fed-
eral Government’s primary vehicles to help develop socially and
economically disadvantage small businesses. Moreover, all wit-
nesses discussed the weaknesses and made recommendations to
improve the program. For example, many businesses start to gain
traction in the last years of the program, which substantially re-
duces their ability to receive contracts and limits their growth. To
address these concerns, Mr. Thomas suggested a follow-up survey
to graduated 8(a) firms to understand their rate of success and un-
derstand potential weaknesses in the program. By contrast, Mr.
McAllister suggested extending the program beyond the current 9-
year term.
Additionally, the witnesses emphasized the need to improve
small business assistance within the program. Mr. McAllister rec-
ommended providing legal assistance to 8(a) contractors and Ms.
Askew recommended the creation of two 7(j) educational tracks:
one for those who are starting the program and another one for
those that are culminating it. Finally, the witnesses highlighted
the Mentor/Protégé Program as an indispensable tool to increase
small business capacity and knowledge. However, they also called
attention to the importance of having proper safeguards in the
Mentor/Protégé Program so that it can truly serve its purpose.
SBA MANAGEMENT REVIEW: SMALL BUSINESS INVESTMENT COMPANY
PROGRAM
On Thursday, September 26, 2019, the Committee on Small
Business held a hearing titled: ‘‘SBA Management Review: Small
Business Investment Company Program.’’ Committee members
learned more about the Small Business Investment Company
(SBIC) program, which is designed to incentivize increased debt
and equity financing to high-risk small businesses lacking access to
adequate capital from traditional sources. Members also learned
about the SBIC funds who deliver SBIC financing to small busi-
nesses in need of patient capital, and the role they play in creating
jobs in their local communities. The hearing explored the current
administrative challenges facing the program and its industry par-
ticipants.
There were two witness panels. Mr. Joseph Shepard, Associate
Administrator for the Office of Investment and Innovation at SBA,
testified as the sole witness on the first panel. Witnesses on the
second panel were: Mr. Brett Palmer, President, Small Business
Investor Alliance; Mr. John Paglia, Professor of Finance, Graziadio
Business School—Pepperdine University, Malibu, CA; Ms. Ronda
Penn, Chief Financial Officer, Raleigh, NC; and Mr. Walt Rodgers,
Chief Executive Officer, Family RV, Cincinnati, OH. The Com-
mittee also received written testimony from Mr. Brian Lueger,
Principal, Konza Valley Capital, Inc., Overland Park, KS.
Mr. Shepard testified regarding program operations under his
tenure, which had been marred by industry reports of serious
delays in licensing, examinations, and other key program compo-
nents. He testified that his response to those concerns was to have
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an ‘‘intense focus’’ on examinations, and reported that by July
2018, statutory compliance with examinations was 100%. Mr.
Palmer’s testimony summarized a series of concerns and frustra-
tions SBICs have felt during Mr. Shepard’s tenure, and reported
that ‘‘nearly all processes involving the Associate Administrator are
delayed, commonly for exceedingly long periods of time.’’ Mr.
Paglia’s testimony summarized key findings from his three reports
regarding the positive role the SBIC program plays in job creation,
and the better diversity performance compared to the broader ven-
ture capital and private equity community. Ms. Penn’s testimony
offered the perspective of a SBIC with multiple licenses, including
the extensive limited partner network and the impact her fund has
had over 22 years. Mr. Rodgers’ testimony offered the perspective
of the portfolio company (one that received a SBIC investment),
and how it enabled the company to grow financially and expand
geographically. Mr. Lueger’s written testimony focused on how a
technical change to the programmatic definition of ‘‘leverageable
capital’’ would enable his fund (an ‘‘evergreen’’ fund that re-invests
gains from individual investments back into the fund, instead of
paying out the fund’s limited partners) to access more leverage
from the SBA.
CLOSING THE DIGITAL DIVIDE: CONNECTING RURAL AMERICANS TO
RELIABLE INTERNET SERVICE
On Friday, October 4, 2019, at Columbia Greene Community Col-
lege in Hudson, NY, the Committee on Small Business met for a
field hearing titled: ‘‘Closing the Digital Divide: Connecting Rural
Americans to Reliable Internet Service.’’ The hearing allowed Mem-
bers to hear about the lack of broadband and its impact on quality
of life for rural Americans, low-income communities, and minori-
ties.
Witnesses included Mr. Tim Johnson, CEO, Otsego Electric Coop-
erative, Edmeston, NY; Ms. Shannon Hayes, Owner, Sap Bush Hol-
low Farm Store and Café, West Fulton, NY; Mr. David Berman,
Co-Chair, Columbia Connect Ghent, NY; Mr. Jason Miller, General
Manager, Delhi Telephone Company, Delhi, NY; Mr. Brian Dunn,
Superintendent, Middleburgh Central School District, Middleburgh,
NY; and Dr. Cliff Belden, Chief Medical Officer, Columbia Memo-
rial Health Hudson, NY.
Mr. Johnson testified that broadband is vital to the survival and
growth of both the communities his company serves and all of rural
America. He suggested that more granular and accurate maps
showing broadband availability are a key part of reaching all rural
Americans with high-speed broadband service. Mr. Berman ad-
dressed the issue of closing the digital divide head on. He testified
the only solution to this issue is to base local, state and federal pro-
grams on the goal of reaching every address in the United States.
He testified that means eliminating using census blocks to define
coverage, availability, and financing because census blocks are both
confusing and lead to some bizarre results. Dr. Belden focuses his
testimony on three broad areas where the impact of broadband is
felt in the delivery of health care—patient care, the location and
types of services available in a facility and a sometimes-unrecog-
nized effect on our workforce. Mr. Miller acknowledged the benefits
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that broadbands stating that it is crucial to the current and future
success of rural America. However, he noted that small, rural
telecom providers like his company are deploying faster broadband
throughout their service areas, but no carrier—regardless of size—
can deliver high-speed, high-capacity broadband in rural America
without the business case to justify the investment.
SILICON PRAIRIE: TECH, INNOVATION, AND A HIGH-SKILLED
WORKFORCE IN THE HEARTLAND
On Tuesday, October 8, 2019, the Committee on Small Business
met at the Dr. Thomas R. Burke Technical Education Center at
Kansas City Community College in Kansas City, Kansas for a field
hearing titled: ‘‘Silicon Prairie: Tech, Innovation, and a High-
Skilled Workforce in the Heartland.’’ The field hearing was led by
Representative Sharice Davids and attended by Representative
Emanuel Cleaver. It provided the opportunities to focus on the tech
boom happening in the Midwest and how the U.S. should be train-
ing the workforce in the area to satisfy the demand from tech em-
ployers. It also provided the opportunity for small business owners,
government officials, and experts to provide innovative solutions to
combat the labor shortage.
In two panels there was a total of eight witnesses. The first gov-
ernment panel included Mr. David Toland, Secretary, Kansas De-
partment of Commerce, Topeka, KS. Ms. Delı́a Garcı́a, Secretary,
Kansas Department of Labor, Topeka, KS. Mr. Thomas Salisbury,
Regional Administrator, Region VII, Small Business Administra-
tion, Kansas City, MO. The second, private sector panel included
Ms. Neelima Parasker, President and CEO, SnapIT Solutions,
Overland Park, KS. Mr. Ruben Alonso III, President, AltCap, Kan-
sas City, MO. Ms. Tammie Wahaus, CEO, Elias Animal Health,
Olathe, KS. Mr. Brad Sandt, President & CEO, Menlo, K12itc,
Civic ITC, Kansas City, MO. Mr. Daniel Silva, President & CEO,
Kansas City Kansas Chamber of Commerce. Kansas City, KS.
The first panel focused mainly on things the government is doing
regarding workforce development, investing in schools and edu-
cation, and encouraging partnerships between businesses, local
governments and chambers of commerce, and educational institu-
tions to provide an education for in-demand skills that can trans-
late to jobs. The second panel talked largely about many of the
challenges small businesses face in hiring and how they are invest-
ing in a workforce that has 21st century skills and provides middle
skill training for technology jobs to people of all ages.
SBA MANAGEMENT REVIEW: SBA IG REPORT ON THE MOST SERIOUS
MANAGEMENT AND PERFORMANCE CHALLENGES FACING THE SBA
On Wednesday, October 16, 2019, the Committee on Small Busi-
ness held a hearing titled: ‘‘SBA Management Review: SBA IG Re-
port on the Most Serious Management and Performance Challenges
Facing the SBA.’’ The hearing focused on the Small Business Ad-
ministration Office of Inspector General’s (OIG) annual report on
the most serious management and performance issues within the
agency. The hearing allowed Members the opportunity to learn
more about the significant issues that could be addressed to en-
hance the effectiveness of the agency and its programs.
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The sole witness for the hearing was: Mr. Hannibal ‘‘Mike’’ Ware,
Inspector General, United States Small Business Administration,
Washington, D.C.
The witness testified that SBA made progress addressing that
year’s management challenges. The OIG stated that SBA made
concerted efforts to address outstanding internal control rec-
ommendations and, as a result, fully implemented or made sub-
stantial progress in 23 out of 25 challenge areas. Despite this
progress, the OIG testified that SBA still faces significant ricks in
loan program oversight and controls, oversight of its statutory pro-
grams to promote small business development and government con-
tracting and deploying information technology and related cyberse-
curity controls.
PRISON TO PROPRIETORSHIP: ENTREPRENEURSHIP OPPORTUNITIES FOR
THE FORMERLY INCARCERATED
On Wednesday, October 23, 2019, the Committee on Small Busi-
ness held a hearing titled: ‘‘Prison to Proprietorship: Entrepreneur-
ship Opportunities for the Formerly Incarcerated.’’ Many formerly
incarcerated individuals face barriers to reentering the workforce.
Some employers hesitate to hire the formerly incarcerated, which
drastically reduces employment possibilities and earnings poten-
tial. Entrepreneurship can help overcome these barriers to employ-
ment and reduce recidivism.
The witnesses for the hearing were: Mr. Shon Hopwood, Asso-
ciate Professor of Law, Georgetown University Law Center, Wash-
ington, D.C.; Mr. Gary Wozniak, President and Chief Executive Of-
ficer (CEO), RecoveryPark, Detroit, MI; Ms. Corinne Hodges, CEO,
Association of Women’s Business Centers, Washington, D.C.; Jerry
Blassingame, Founder and CEO, Soteria CDC, Greenville, SC.
The witnesses discussed challenges facing incarcerated and for-
merly incarcerated individuals and how entrepreneurship can give
them a second chance upon reentering society. Mr. Hopwood ex-
pressed support for the Prison to Proprietorship bills, which would
require SBA’s resource partners to provide entrepreneurship serv-
ices in-prison and to the formerly incarcerated. After serving time
in federal prison, Mr. Wozniak spent three months actively seeking
employment to no avail. To overcome this challenge, he opened a
pizza franchise, utilizing the skills he gained as a stockbroker.
Ms. Hodges testified that many of the Women’s Business Centers
offer specific training and resources to the formerly incarcerated
and described the services that several centers currently provide.
Moreover, she said that entrepreneurship has the power to create
pathways to success while reducing recidivism. Mr. Blassingame
discussed his experience upon being released from prison, including
the process of starting a nonprofit that eventually helped with re-
entry. He found that successful reentry included more than housing
and jobs, it was also family integration. The community must work
together to overcome issues pertaining to trauma, financial lit-
eracy, and family reintegration. Mr. Hopwood, Mr. Wozniak, and
Ms. Hodges express support for the Prison to Proprietorship bills.
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FORCE OF NATURE: THE POWER OF SMALL BUSINESSES IN AMERICA’S
RECREATIONAL INFRASTRUCTURE
On Wednesday, October 30, 2019, the Committee on Small Busi-
ness held a hearing titled: ‘‘Force of Nature: The Power of Small
Businesses in America’s Recreational Infrastructure.’’ The economic
prosperity of the nation is impacted by the growing recreational
and tourism sector, which is served by many small businesses.
Members were able to hear testimony on the significance of the
outdoor recreation sector which produced over $400 billion in $400
billion in gross economic output and supported over 5 million jobs
nationwide in 2017.
Witnesses included Mr. Ray Rasker, Executive Director, Head-
waters Economics, MT; Mr. Frank-Paul Anthony King, President
and Chief Executive Officer, Temple Fork Outfitters (TFO), Dallas,
TX; Ms. Lindsey Davis, CEO, WYLDER, Salt Lake City, UT; and
Mr. John Wooden, Owner, River Valley Power & Sport, Rochester,
MN, testifying on behalf of the National Marine Manufacturers As-
sociation.
Witnesses highlighted that outdoor recreation and tourism sup-
ports communities across the country by generating hundreds of
billions in federal, state, and local tax revenue every year and that
the outdoor recreation industry has strong ties to various vital eco-
nomic sectors, including manufacturing, retail, transportation, and
tourism which are dominated by small businesses. Mr. Rasker tes-
tified that more than 140 economic studies document the many
ways that hiking and biking trails, picnic areas, fishing access
sites, and other infrastructure contribute to local economies. Mr.
King highlighted the importance of conservation in promoting out-
door recreation. Ms. Davis emphasized that upgrades to our public
lands will benefit small firms and local economies. She testified
that the health of our ecosystems relies on adequate and organized
public access and infrastructure by way of trails, waterways and
wildlife corridors. She went on to say green and blue infrastructure
will not only improve visitation, but also make it possible for wild-
life and watersheds to continue to thrive and recreationalists to
continue building a lifelong relationship to the outdoors.
UPSKILLING THE MEDICAL WORKFORCE: OPPORTUNITIES IN HEALTH
INNOVATION
On Wednesday, November 13, 2019, the Committee on Small
Business met for a hearing titled: ‘‘Upskilling the Medical Work-
force: Opportunities in Health Innovation.’’ This hearing explored
the exponential advancement of medical technology including but
not limited to telehealth, electronic health records, robotics, and ar-
tificial intelligence and ways medical professionals are trained to
adapt to this rapid development using simulations, robots, and aug-
mented and virtual reality. The focus was how to use this tech-
nology to cope for a number of different problems emerging in
healthcare, such as higher costs, concentration of health services,
higher administrative and student loan burdens for physicians, and
lack of access for many in rural and under-resourced urban com-
munities.
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Witnesses included Dr. Matthew Conti, MD, Orthopaedic Sur-
gery Resident, Hospital for Special Surgery, New York City, NY,
Testifying on behalf of the American Academy of Orthopaedic Sur-
geons (AAOS). Dr. Ingrid Zimmer-Galler, MD, Associate Professor
of Ophthalmology, Founding clinical Director, Office of Telemedi-
cine, Johns Hopkins University, Baltimore, MD, Testifying on be-
half of the American Academy of Ophthalmology. Dr. Nancy
Fahrenwald, PhD, RN, PHNA–BC, FAAN, Dean and Professor,
Texas A&M College of Nursing, Bryan, TX, Testifying on behalf of
the American Association of Colleges of Nursing. Mr. Michael Hop-
kins, Founder and CEO, True Concepts Medical Technologies, Cin-
cinnati, OH.
Dr. Conti testified about the new technology used to train
Orthopaedic surgeons in the Hospital for Special Surgery in New
York City, one of the most technologically advanced hospitals in
the United States, such as robotics, simulations, and virtual re-
ality. Dr. Zimmer-Galler testified about the ability of telemedicine
to expand access to expand access to rural areas that do not cur-
rently have access to care and the innovative ways they are train-
ing ophthalmologists to use telemedicine at Johns Hopkins. Dr.
Fahrenwald testified to the advanced simulations they use to train
nursing students and how expanding the scope of practice for ad-
vanced practice registered nurses (APRNs) can fill in the gaps in
rural areas where doctors are short. Furthermore, APRNs can use
telemedicine to consult with doctors many miles away about treat-
ment plans for their patients. The Republican witness, Michael
Hopkins, testified to the advancement of medical devices to save
lives, like his own dual syringe technology that can protect patients
from sepsis.
A FAIR PLAYING FIELD? INVESTIGATING BIG TECH’S IMPACT ON SMALL
BUSINESS
On Thursday, November 14, 2019, the Committee on Small Busi-
ness held a hearing titled: ‘‘A Fair Playing Field? Investigating Big
Tech’s Impact on Small Business.’’ The Internet has transformed
American lives and spurred economic growth for millions of small
businesses due in large part to powerful digital platforms, com-
monly referred to as Big Tech. The hearing gave Members the op-
portunity to hear from both large tech companies and small busi-
nesses about the opportunities and challenges online platforms
pose for entrepreneurs and small firms.
Witnesses included: Mr. Dharmesh M. Mehta, Vice President,
Customer Trust and Partner Support, Seattle, WA; testifying on
behalf of Amazon, Inc.; Ms. Erica Swanson, Head of Community
Engagement for Grow with Google, Mountain View, CA; testifying
on behalf of Alphabet, Inc., Dr. Joe Kennedy, Senior Fellow, Infor-
mation Technology & Innovation Foundation, Washington, D.C.;
testifying on behalf of the Information Technology & Innovation
Foundation; Ms. Allyson Cavaretta, Director of Sales & Marketing,
Meadowmere Resort, Olgonquit, ME; Mr. Molson Hart, CEO,
Viahart Toy Co., Houston, TX; Mr. Harold Feld, Senior Vice Presi-
dent, Public Knowledge, Washington, D.C.; Ms. Theo Prodromitis,
Co-Founder and CEO, Spa Destinations, Tampa, FL; Mr. Jake
Ward, President, Connected Commerce Council, Washington, D.C.
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and Mr. Graham Dufault, Sr. Director of Public Policy, ACT | The
App Association, Washington, D.C.
Mr. Mehta testified that Amazon, by offering small and medium-
sized businesses a low cost way to reach customers worldwide, and
through our investments to support these businesses, has lowered
barriers to entry for entrepreneurs, helps make retail even more vi-
brantly competitive, and continues to delight customers with new
innovations. Ms. Swanson testified that Google tools help American
businesses find and connect with customers. In 2018, Google’s
search and advertising tools helped provide $335 billion of eco-
nomic activity nationwide. More than 1.3 million businesses,
website publishers, and nonprofits benefited from using Google’s
advertising solutions. Mr. Kennedy testified that Internet plat-
forms allow any business to set up a website, Facebook page,
Instagram account, YouTube channel and other online presences to
reach customers, exchange information, and build a loyal customer
base.
Mr. Hart testified that Amazon has created business solutions
that have enabled small businesses to reach and serve new cus-
tomers. However, he also testified that due to their market domi-
nance, can determine if a small business succeeds or does not sim-
ply by allowing or not allowing it on its platform. He stated ‘‘if
Amazon suspends us from the platform, we go bust, and we go bust
fast.’’ Ms. Caveretta testified that Google’s most recent actions in
the online travel ecosystem present a serious threat to small busi-
ness and how those actions have harmed end consumers. She urged
Congress to address immediately Google’s near monopoly access to
market for small business. Ms. Caveretta described in detail
changes made by Google’s search algorithm that prioritizes larger
online travel companies and prioritizes those businesses that pay
more for advertising on the Google platform. Mr. Feld testified that
the dominance of a handful of massive companies in online retail,
online search, online video and social media creates enormous prob-
lems for small businesses. He explained that small businesses face
potential obstacles when they potentially compete with digital plat-
forms citing reports that Amazon harvests small business data and
then creates competing products. He also testified that Congress
must set necessary safeguards that balance providing a stable and
competitive environment for small businesses while preserving the
valuable features of digital platforms.
EMBRACING CORPORATE SOCIAL RESPONSIBILITY: SMALL BUSINESS
BEST PRACTICES
On Wednesday, December 4, 2019, the Committee on Small Busi-
ness met for a hearing titled: ‘‘Embracing Corporate Social Respon-
sibility: Small Business Best Practices.’’ This hearing informed
members about recent changes to corporate values in the wake of
the restatement by the Business Roundtable on the purpose of a
corporations from shareholder primacy to stakeholder primacy. It
elevated the concerns caused by shareholder primacy such as envi-
ronmental degradation, stagnating wages, and lack of diversity and
inclusion in upper level management. Members heard from aca-
demics and small and large business owners about the importance
of businesses giving back to their community.
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Witnesses included Dr. Robert Strand, Executive Director of the
Center for Responsible Business and Lecturer at the University of
California, Berkeley’s Haas School of Business. Mr. Vincent Stan-
ley, Director of Philosophy, Patagonia, Inc. Ms. Kristy Wallace,
CEO, Ellevate Network. Mr. Jaime Arroyo, Associate, Work Wis-
dom LLC. Mr. Sean McElwee, President and Chief Creative Officer,
Seanese; Accompanied by Ms. Sandra McElwee, Chief Dream
Facilitator, Seanese.
Dr. Strand testified about what the United States can learn from
the stakeholder primacy that many Scandinavian countries have
embraced for decades to invest much of their profits back in their
workers and communities rather than just their owners. Mr. Stan-
ley shared the experiences of Patagonia over the past 40 years and
their journey of becoming a more environmentally responsible com-
pany. He also explained the legal framework of benefit corporations
and how they can create a competition to be more sustainable and
retain sustainability through transfer of ownership. Ms. Wallace
testified about the importance of investing in women owned busi-
nesses and creating a network of support for women entrepreneurs.
Mr. Arroyo echoed this sentiment and added the importance of di-
versity and inclusion. Mr. McElwee and his mom, Sandra, testified
about the importance of companies—even microbusinesses like his
own—to give back to their communities and dedicate a portion of
their profits to charitable organizations and acts, like his own baby
onesie initiative for new parents with children with Down syn-
drome.
SECOND SESSION OF THE 116TH CONGRESS
ENHANCING PATENT DIVERSITY FOR AMERICA’S INNOVATORS
On Wednesday, January 15, 2020, the Committee on Small Busi-
ness held a hearing titled: ‘‘Enhancing Patent Diversity for Amer-
ica’s Innovators.’’ The exceptional economic performance of the
United States has largely been driven by innovation, entrepreneur-
ship, and competitiveness which has led to new business formation
and improved the lives of all Americans. However, women, racial
minorities, and low-income individuals are significantly underrep-
resented in the innovation ecosystem. The hearing gave academics
and small business innovators the chance to testify on the chal-
lenges that women and minorities often face when trying to obtain
a patent.
Witnesses included Ms. Andrea Ippolito, Program Director of
W.E. Cornell, Cornell University, Ithaca, NY; Dr. Rashawn Ray,
David M. Rubenstein Fellow, The Brookings Institution, Wash-
ington, DC; Ms. Janeya Griffin, Managing Member and Principal
Consultant, The Commercializer, LLC, Lancaster, CA; and Mr.
Rick C. Wade, Vice President, Strategic Alliances and Outreach,
U.S. Chamber of Commerce, Washington, D.C.
The witnesses cited difficulties like lack of access to capital, a
lack of diversity in the tech field, and a shortage of women and mi-
norities in the STEM field as barriers to achieving patent equity.
The hearing also discussed Chairwoman Velázquez’ bill, H.R. 4075,
which would direct the United States Patent and Trade Office to
collect voluntary demographic data during the patent process that
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would provide insight into who is applying for and obtaining pat-
ents.
Ms. Ippolito testified that the number of women obtaining pat-
ents has improved, albeit slowly, over the past 40 years. She stated
that the share of patents with at least one female inventor has in-
creased from five percent in 1976 to 21 percent in 2016. Mr. Ray
testified that it is clear that disparities extend from who applies to
who is ultimately awarded a patent. He went to testify that col-
lecting demographic data can help fill these important gaps, create
more understanding and equity in the process, and better stream-
line resources for trainings and funding so all Americans can assist
the United States in continuing to be a major world innovator for
new products that can help drive the economy and create jobs. Ms.
Griffin testified that it is crucial that minority inventors participate
in the patenting and commercialization process because a patent
will give minority inventors an incentive to further innovate.
SBA MANAGEMENT REVIEW: OFFICE OF FIELD OPERATIONS
On Wednesday, January 29, 2020, the Committee on Small Busi-
ness held a hearing titled: ‘‘SBA Management Review: Office of
Field Operations.’’ The hearing focused on the Small Business Ad-
ministration’s (SBA) Office of Field Operations’ (OFO) 68 District
Offices and ten Regional Field Offices and how they are the point
of delivery for most SBA programs and services. The hearing also
examined how the OFO oversees these offices and if the organiza-
tional structure allows the Administration to meet the needs of
small businesses and entrepreneurs across the country.
The sole witness for the hearing was: Mr. Michael A. Vallante,
Associate Administrator, Office of Field Operations, Small Business
Administration, Washington D.C.
The witness testified that SBA District Offices are actively in-
volved in their communities through supporting local businesses
and coordinating with SBA Resource Partners. The witness
stressed the subject matter expertise of the District Office workers,
many of whom have worked for the District Office for over ten
years. The witness also stressed the difference the District Office
employees make in their communities, their dedication to service,
and dedication to their small business clients.
In addition, the witness testified about the modernizations hap-
pening within SBA District Offices. Modernizations include im-
proved job descriptions, creating a career ladder to help retain staff
and give them a path to advancement, new performance metrics,
and greater collaboration within SBA. The witness also testified
that the OFO has responded to the Government Accountability Of-
fice’s (GAO) and the Office of Inspector General’s (OIG) rec-
ommendations by reassessing the District Office’s relationships
with Historically Black Colleges and Universities (HBCUs) in their
communities and instructed the District Offices to hold events and
expand outreach into those communities.
Lastly, the witness testified that the amount of OFO personnel
retracted from the historic average of 800 employees to 687 because
of a 14 percent attrition rate, a 100-day process to fill vacancies,
and a hiring pause. The witness stated that the department imple-
mented the pause to review the hiring process and cost of employ-
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ees. The witness testified that the hiring pause is no longer in
place.
SBA MANAGEMENT REVIEW: OFFICE OF CREDIT RISK MANAGEMENT
On Wednesday, February 5, 2020, the Committee on Small Busi-
ness held a hearing titled: ‘‘SBA Management Review: Office of
Credit Risk Management.’’ The hearing allowed Committee Mem-
bers to learn about SBA’s Office of Credit Risk Management
(OCRM), which was codified in the 115th Congress as part of the
Small Business 7(a) Lending Oversight Reform Act of 2018 (Over-
sight Act). Members learned about the current administrative chal-
lenges facing OCRM and ways to continue enhancing oversight and
credit risk management for SBA’s Capital Access programs.
The sole witness was Ms. Susan Streich, Director for OCRM, Of-
fice of Capital Access, SBA.
Ms. Streich’s testimony gave a detailed summary of the role
OCRM plays within SBA’s Office of Capital Access as it relates to
monitoring the performance of over 3,500 7(a) and 504 lenders. She
also highlighted the impact of the Oversight Act, which allowed
OCRM to rely less on contracted staff, and to increase staff. Fol-
lowing the Oversight Act, OCRM was able to implement a rigorous
training program to ensure it has the workforce capability and
leadership in-house to support its heightened mission and respon-
sibilities. In response to questioning, Ms. Streich also emphasized
SBA currently lacks a mechanism for systematically tracking 7(a)
loan agents, which would enhance transparency within the loan
programs.
CHALLENGES AND BENEFITS OF EMPLOYEE-OWNED SMALL BUSINESSES
On Wednesday, February 12, 2020, the Committee on Small
Business held a hearing titled: ‘‘Challenges and Benefits of Em-
ployee-owned Small Businesses.’’ The hearing allowed Committee
Members to learn about the benefits of employee ownership for
business owners, their employees, and their local economies. Mem-
bers were also exposed to the broad distinctions that exist between
the two most prominent forms of employee ownership: Employee
Stock Ownership Plans (ESOPs) and cooperatives (co-ops).
Witnesses on the panel were: Mr. Daniel Goldstein, CEO and
President, Folience, Cedar Rapids, IA; Mr. R.L. Condra, Vice Presi-
dent of Advocacy and Government Programs, National Cooperative
Bank, Arlington, VA; Mr. John Abrams, CEO and Co-owner, South
Mountain Company, West Tisbury, MA; and Mr. Mark Gillming,
Senior Vice President, Messer Construction Company, Cincinnati,
OH.
Mr. Goldstein’s testimony focused on Folience’s role as a com-
pany that purchases fledgling businesses and converts them into
ESOPs as a business-saving strategy. His testimony identified
three major obstacles to the expansion of employee ownership in
the economy: 1) an absence of clear federal regulatory guidance,
particularly on business valuations for purposes of securing an
ESOP loan; 2) a shortage of lending capital for ESOP formation or
acquisitions; and 3) low public and professional awareness about
ESOPs. Mr. Condra’s testimony focused on current challenges co-
operatives face in navigating the federal programmatic landscape,
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specifically how the SBA 7(a) program’s personal guarantee re-
quirement presents a nearly insurmountable barrier for coopera-
tives in accessing 7(a) loans. According to Mr. Condra’s testimony,
there has only been one 7(a) loan to a cooperative in SBA’s history.
Mr. Abrams’ testimony focused on the many benefits of the coop-
erative business structure, saying that ‘‘when employee owners are
making the decisions, it is more likely that companies will stay
rooted in place and be positive forces in their local community.’’ Mr.
Gillming’s testimony centered on the benefits of employee owner-
ship from the perspective of a business that was converted to an
ESOP including increased worker productivity, job satisfaction, and
year over year business growth.
A DISCUSSION WITH SBA ADMINISTRATOR JOVITA CARRANZA: CURRENT
ISSUES AND THE FY2021 BUDGET
On Wednesday, February 26, 2020, the Committee on Small
Business held a hearing titled: ‘‘A Discussion with SBA Adminis-
trator Jovita Carranza: Current Issues and the FY2021 Budget’’.
The hearing was an opportunity for Members to discuss the newly
appointed Small Business Administration (SBA) Administrator’s vi-
sion for the Agency, the President’s FY2021 budget request, and
the opportunities and challenges that exist for participants in
SBA’s programs.
The sole witness for the hearing was: The Honorable Jovita
Carranza, Administrator, U.S. Small Business Administration,
Washington, D.C.
Administrator Carranza testified on her priorities for the Agency
as she begins her role as SBA Administrator. One of her priorities
was to continue to support SBA’s Disaster Assistance program to
ensure that SBA officials are available and on-the-ground during a
disaster. The witness emphasized another priority of continuing to
expand SBA’s counseling, lending, and contracting opportunities to
women, minority, and veteran-owned businesses. The witness
stressed her commitment to promoting women-owned businesses
particularly as women begin to represent a greater portion of the
workforce and small business owners. The Administrator testified
that, as she continues in her new position, she will engage with
SBA’s internal and external stakeholders to examine staffing and
operational needs.
In addition, the witness testified that she reviewed the Presi-
dent’s budget request but would continue to examine the needs of
SBA’s programs in-depth. The Administrator stated that she will
continue to review the open recommendations made by the Govern-
ment Accountability Office (GAO) and the SBA’s Office of Inspector
General (OIG). The witness also pledged to create a steering com-
mittee to proactively address the potential effects of COVID–19 on
small businesses.
BUILDING BLOCKS OF CHANGE: THE BENEFITS OF BLOCKCHAIN
TECHNOLOGY FOR SMALL BUSINESSES
On Wednesday, March 4, 2020, the Committee on Small Busi-
ness met for a hearing titled: ‘‘Building Blocks of Change: The Ben-
efits of Blockchain Technology for Small Businesses.’’
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The witnesses included: Mr. Shane Bigelow, CEO, Ownum, LLC.,
Cleveland, OH who testified on behalf of the Chamber of Digital
Commerce; Ms. Dawn Dickson, Founder and CEO, PopCom, Co-
lumbus, OH; Mr. Marvin Ammori, General Counsel, Protocol Labs,
Wilmington, DE, who testified on behalf of the Blockchain Associa-
tion; Mr. Jim Harper, Visiting Fellow, American Enterprise Insti-
tute, Washington, D.C.
The witnesses discussed how blockchain can be used for things
like cryptocurrency, but also has many other uses, including track-
ing goods in global supply chains or enabling peer-to-peer trans-
actions between connected devices. Mr. Bigelow discussed how
blockchain technology is used to digitize vital records, and how se-
cure digital access to such records can be beneficial to small busi-
nesses. Ms. Dickson discussed how her small business utilizes
blockchain technology, and also outlined how SBA programs and
resource partners have engaged with this emerging technology. Mr.
Ammori provided Committee Members a basic understanding of
the varied applications of blockchain technology including how it
can improve cybersecurity, payment processing, and record keep-
ing. He outlined how blockchain technology can help small busi-
nesses complete on a level playing field with larger companies and
also eliminate the need for intermediaries in a number of business
transactions. Mr. Harper discussed how blockchain technology can
help lower costs for small businesses, allow for diversified and open
market structures, and reduce the competitive advantage that
large businesses have with big data.
THE IMPACT OF CORONAVIRUS ON AMERICA’S SMALL BUSINESSES
On Tuesday, March 10, 2020, the Committee on Small Business
met for a hearing titled: ‘‘The Impact of Coronavirus on America’s
Small Businesses.’’ During the hearing, members heard from public
health experts, small business owners, and economists about the
early toll of the COVID–19 pandemic on America’s small firms and
how it would affect them moving forward as the nation began to
shut down.
The panelists were: Dr. Jennifer Huang Bouey, Ph.D., M.D., Sen-
ior Policy Researcher, Tang Chair in China Policy Studies, Rand
Corporation, Arlington, VA; Mr. Jay Ellenby, President Safe Har-
bors Business Travel Group, Bel Air, MD, Testifying on behalf of
the American Society of Travel Advisors (ASTA); Mr. Andrew
Chau, Co-Founder and CEO, Boba Guys-Tea People USA, Brisbane
CA and; Dr. Yanzhong Huang, Ph.D., Senior Fellow for Global
Health, Council on Foreign Relations, Professor, Seton Hall Univer-
sity’s School of Diplomacy and International Relations, Wash-
ington, D.C.
Dr. Bouey testified about the early effects of the COVID–19 pan-
demic in China, and how the economic shutdown in the country
was likely to hurt small U.S. firms that engage in international
trade. She also clearly emphasized the two epidemics that arise
when a viral outbreak hits: that of fear, and that of disinformation.
Mr. Ellenby testified about the early effects on the travel industry,
which was one of the earliest casualties from the pandemic. He
praised the committee for its work on the EIDL program and went
further to say small firms needed additional help, especially in the
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travel industry which had already began mass layoffs. Mr. Chau
described the early effects of the virus on Asian-American commu-
nities here in the U.S., which had a significant decline in traffic in
the lead up to economic shutdowns across the country. He de-
scribed the prejudice and disinformation that was hurting these
companies’ ability to stay afloat. Dr. Huang echoed the sentiments
of Dr. Bouey and put a greater emphasis on the supply chain
issues many small companies in the U.S. faced due to economic
shutdowns in China.
MEMBER DAY HEARING ON COVID–19 RESPONSE AND RECOVERY:
COMMITTEE ON SMALL BUSINESS
On Thursday, April 23, 2020, the Committee on Small Business
held a hearing titled: ‘‘Member Day Hearing on COVID–19 Re-
sponse and Recovery: Committee on Small Business’’. The hearing
gave Members of the House of Representatives, including non-Com-
mittee Members, the opportunity to testify before the Committee
about priorities related to the Paycheck Protection Program (PPP)
and the Economic Injury Disaster Loan (EIDL) as established
under the CARES Act. The hearing was comprised of six panels.
The witnesses for panel one were: The Honorable Ed Case, The
Honorable Andy Barr, The Honorable Gil Cisneros, The Honorable
Gus Bilirakis, The Honorable Veronica Escobar, The Honorable Ted
Budd, The Honorable Jimmy Gomez, and The Honorable Mark
Amodei.
The witnesses for panel two were: The Honorable Deb Haaland,
The Honorable Bradley Byrne, The Honorable Steven Horsford,
The Honorable Buddy Carter, The Honorable Derek Kilmer, The
Honorable John Curtis, The Honorable Susie Lee, and The Honor-
able Michael Burgess.
The witnesses for panel three were: The Honorable Elaine Luria,
The Honorable Morgan Griffith, The Honorable Tom Malinowski,
The Honorable Dusty Johnson, The Honorable Joe Neguse, The
Honorable Mike Johnson, The Honorable Donald Norcross, and The
Honorable Brian Fitzpatrick.
The witnesses for panel four were: The Honorable Dean Phillips,
The Honorable Fred Keller, The Honorable Max Rose, The Honor-
able Greg Pence, The Honorable Adam Schiff, The Honorable Tom
Rice, The Honorable Kim Schrier, and The Honorable John Katko.
The witnesses for panel five were: The Honorable Mikie Sherrill,
The Honorable Chip Roy, The Honorable Elissa Slotkin, The Hon-
orable Lloyd Smucker, The Honorable Abigail Spanberger, The
Honorable Scott Tipton, The Honorable Haley Stevens, and The
Honorable Phil Roe.
The witnesses for panel six were: The Honorable Mike Thomp-
son, The Honorable Ann Wagner, The Honorable Steve Womack,
and The Honorable Glenn Thompson.
UPDATE FROM THE SMALL BUSINESS ADMINISTRATION’S RESOURCE
PARTNERS ON THE IMPLEMENTATION OF THE CARES ACT
On Thursday, May 7, 2020, the Committee on Small Business
met for a bipartisan virtual forum titled: ‘‘Update from the Small
Business Administration’s Resource Partners on the Implementa-
tion of the CARES Act.’’ The virtual forum focused on the Resource
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Partner implementation of the CARES Act, what is working well
and what can be improved. The virtual forum examined the slow
disbursement of CARES Act funding, a lack of clear and consistent
guidance from SBA, a lack of communication from SBA, and the
delay in SBA implementing CARES Act language services require-
ments.
The panelists for the virtual forum were: Mr. Tee Rowe, Presi-
dent and CEO, America’s SBDC, Burke, VA; Ms. Corinne Hodges,
CEO, Association of Women’s Business Centers, Washington, D.C.;
Ms. Bridget Weston, Acting CEO, The Service Corps of Retired Ex-
ecutives (SCORE), Herndon, VA.; Ms. Amy Amoroso, Director, Vet-
eran’s Business Outreach Center, Region II NY/NJ/PR/USVI,
Watervliet, NY; Ms. Linda Womack, Director, Minority Business
Development Agency, Tacoma-Business Center, Tacoma Wash-
ington.
SBA Resource Partners stated that, since the beginning of the
COVID–19 outbreak, they experienced a dramatic increase in cli-
ents, doing a years’ worth of work within a few months. Resource
Partner’s stated that their focus was to help their clients navigate
the Federal resources provided through the CARES Act, create re-
siliency plans for a long-term loss of revenue, and pivot to virtual
and remote customer service. In addition, Resource Partners stated
that the conflicting information and guidance from SBA hindered
their ability to provide accurate and timely information to small
business owners and entrepreneurs. Lastly, the Resource Partners
stated that they relied on the languages services that their centers
can provide in-house because SBA had not provided services and
materials in foreign languages.
A CONVERSATION WITH SBA PAYCHECK PROTECTION PROGRAM
LENDERS
On Wednesday, May 13, 2020, the Committee on Small Business
held a bipartisan virtual forum titled: ‘‘A Conversation with SBA
Paycheck Protection Program Lenders’’ led by Subcommittee on
Economic Growth, Tax, and Capital Access Chairman Andy Kim
(D–NJ) and Ranking Member Kevin Hern (R–OK). During the
forum, Committee Members learned about the issues lenders and
borrowers encountered in the program. Members also discussed po-
tential improvements with the panelists.
The panelists were: Mr. Tony Wilkinson, President, National As-
sociation of Government Guaranteed Lenders (NAGGL); Ms.
Dafina Williams, Vice President of Public Policy, Opportunity Fi-
nance Network (OFN); Mr. Brett Palmer, President, Small Busi-
ness Investor Alliance (SBIA); and Mr. D. Jay Hannah, Executive
Vice President of Financial Services, BancFirst Bank.
Mr. Wilkinson’s testimony provided a broad overview of the
issues Paycheck Protection Program (PPP) lenders faced early in
the program, which for lenders, centered on a lack of programmatic
guidance, both for program operations, and specifically on the for-
giveness rule. Mr. Wilkinson also testified that many borrowers re-
ported the forgiveness terms were too restrictive, and that they
would struggle to achieve full forgiveness. Ms. Williams testified
from the perspective of Community Development Financial Institu-
tions (CDFIs) following the $60 billion set-aside for community
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lenders that was included in the Paycheck Protection Program and
Health Care Enhancement Act. Mr. Palmer testified regarding the
role the SBA’s Small Business Investment Company Program can
play in providing long-term recovery funding, particularly for those
businesses who need different capital solutions than traditional
bank financing or a PPP loan. Mr. Hannah offered the perspective
of a community banker participating in the PPP and testified re-
garding the job-saving impact the program was having on his com-
munity.
FIRST LOOK: SBA OFFICE OF INSPECTOR GENERAL PRELIMINARY
PAYCHECK PROTECTION PROGRAM REPORT
On Friday, May 15, 2020, the Committee on Small Business met
to hold a bipartisan virtual forum titled: ‘‘First Look: SBA Office
of Inspector General Preliminary Paycheck Protection Program Re-
port’’ led by Subcommittee on Investigations, Oversight, and Regu-
lations Chairwoman Judy Chu (D–CA) and Ranking Member Ross
Spano (R–FL). The forum focused on the Small Business Adminis-
tration (SBA) Office of Inspector General’s (OIG) plan to conduct
audits and reviews of the CARES Act Paycheck Protection Program
(PPP) and Economic Injury Disaster Loan (EIDL) program. The
virtual forum also included a discussion on the ‘‘Flash Report’’ re-
leased on May 8, 2020, by the SBA OIG that outlined where SBA’s
interim finale rules (IFR) and FAQs where aligned with the intent
of the CARES Act and were they differed.
The panelist for the virtual forum was: The Honorable Hannibal
‘‘Mike’’ Ware, the Inspector General of the Small Business Admin-
istration.
The panelist stated that the OIG plans to leverage past oversight
work, aimed at reducing fraud, waste, and abuse, and utilize les-
sons learned from previous audits to inform the CARES Act fund-
ing recipients and SBA on ways to avoid risk areas. The panelist
also detailed the findings from the May 8, 2020, ‘‘Flash Report’’
that stated that SBA did not issue guidance to prioritize under-
served markets or to lenders on the deferment process. In addition,
the OIG stated that SBA implemented two requirements that did
not align with the CARES Act; the requirements that 75 percent
of the PPP loan be used for payroll and that borrowers repay any
amount not eligible for forgiveness withing two years. The panelist
suggested that SBA could improve upon the findings in the ‘‘Flash
Report’’ by issuing appropriate guidance, collecting demographic
data on loans, and evaluate the negative impact of the 75 percent
of PPP usage rule and reevaluate as necessary.
THE EFFECTS OF COVID–19 ON RURAL ECONOMIES
On Wednesday, May 20, 2020, the Committee on Small Business
held a bipartisan virtual forum titled: ‘‘The Effects of COVID–19 on
Rural Economies’’ led by Subcommittee on Rural Development, Ag-
riculture, Trade, and Entrepreneurship Chairwoman Abby
Finkenauer (D–IA) and Ranking Member John Joyce (R–PA). This
forum provided an opportunity for members of Congress to hear
from rural leaders about the impacts of COVID–19 on rural com-
munities and how Small Business Administration’s (SBA) pro-
grams, and other federal programs, are addressing the issues.
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At the virtual forum, members heard from the following panel-
ists: Mr. Bill Menner, Executive Director of the Iowa Rural Devel-
opment Council, Grinnell, Iowa; Ms. Melissa Moretz, Farmer at
Moretz Farm and Commercial Portfolio Manager at First Citizens
Bank, Mason City, Iowa; Ms. Ines Polonius, CEO of Communities
Unlimited, Fayetteville, Arkansas: Mr. Rick Ebert, President of
Pennsylvania Farm Bureau, Blairsville, Pennsylvania.
The witnesses testified about programs in the CARES Act that
were intended to provide relief for struggling small businesses im-
pacted by the global COVID–19 pandemic, including programs at
SBA and USDA. Witnesses discussed rural community vitality,
health, and well-being, and pointed out that many rural commu-
nities had challenges prior to the outbreak of COVID–19 such as
capital access, and broadband connectivity issues which have been
exacerbated by COVID–19 and need to be addressed as part of
comprehensive recovery efforts. Witnesses also discussed many
CARES act programs and their importance for rural communities.
However, some witnesses pointed out that these programs are only
helpful if the businesses and communities have knowledge of the
programs and access to lenders or resource partners. Some wit-
nesses pointed out that many rural communities are unbanked,
and the important role that CDFIs and other microlenders play in
supporting rural small businesses. Witnesses also discussed the im-
pacts of the COVID–19 pandemic on agriculture. One witness
pointed out that the loss of markets has impacted farm businesses
around the country, many farmers initially had problems in access-
ing SBA CARES act programs. Additionally, many of the witnesses
outlined the importance of 501(c)(6) and other non- profits in rural
communities and discussed the desire for those entities to be eligi-
ble for CARES act supports.
BUSINESS INTERRUPTION COVERAGE: ARE POLICYHOLDERS BEING LEFT
BEHIND?
On Thursday, May 21, 2020, the Committee on Small Business
held a bipartisan virtual forum titled: ‘‘Business Interruption Cov-
erage: Are Policyholders Being Left Behind?’’ It was led by led by
Subcommittee on Innovation and Workforce Development Chair-
man Jason Crow (D–CO) and Ranking Member Troy Balderson (R–
OH). During the forum, Committee Members learned about the
issues small business insurance policyholders have faced in making
pandemic-related insurance claims. Members also discussed var-
ious proposed solutions.
The panelists were: Mr. Chris Morrow, Owner, Northshire Book-
store; Mr. Francisco Schlotterbeck, CEO, Maya Cinemas; Mr. Mark
Shaker, Co-Founder, Stanley Marketplace; Mr. John W.
Houghtaling II, Managing Partner, Gauthier Murphy &
Houghtaling LLC; and Sean Kevelighan, President and CEO, In-
surance Information Institute.
As a bookstore owner with stores in two states, Mr. Morrow testi-
fied as to the challenges he faced with two different sets of insur-
ance rules governing the policies in each state. Mr. Schlotterbeck
testified regarding the unique impact the pandemic was having on
movie theaters and other businesses who depend on gathering peo-
ple together. Mr. Shaker’s testimony offered the perspective of a
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small business owner who also rents space in his marketplace to
other small businesses, and shared with the Committee some of the
ways in which he has been able to offer his tenants relief. Mr.
Houghtaling testified regarding policyholder’s rights under busi-
ness interruption insurance policies generally, and especially with
regard to policies that explicitly include coverage for viral
pandemics claims on which have been denied. Mr. Houghtaling also
testified regarding some potential solutions for policyholders. Mr.
Kevelighan testified from the insurance industry’s perspective and
argued against relief for policyholders under many existing con-
tracts.
SMALL BUSINESS PRIORITIES FOR THE NEXT PHASE OF RECOVERY:
HOW TO LEVERAGE THE SMALL BUSINESS DEVELOPMENT CENTER
NETWORK
On Thursday, May 28, 2020, the Committee on Small Business
met for a bipartisan virtual forum led by Subcommittee Con-
tracting and Infrastructure Chairman Jared Golden (D–ME) and
Ranking Member Pete Stauber (R–MN) titled: ‘‘Small Business Pri-
orities for the Next Phase of Recovery: How to Leverage the Small
Business Development Center Network.’’ The virtual forum pro-
vided an opportunity for Members to learn how Small Business De-
velopment Centers (SBDCs) have supported small businesses in
their local communities through the COVID–19 pandemic and ex-
amined the challenges businesses face through phased reopening.
The forum also discussed how H.R. 4406, the Small Business De-
velopment Center Improvement Act of 2019, would allow SBDCs to
reach more small businesses through marketing.
The panelists for the virtual forum were: Mr. Tee Rowe, Presi-
dent and CEO, America’s SBDC, Burke, VA; Mr. Mark Delisle,
State Director, Maine SBDC, Portland, ME; Mr. Joe Musumeci and
Ms. Mary Ellms, Co-Owners, Farmington Underground Escape
Room, Farmington, ME; Mr. Bruce Strong, State Director, Min-
nesota SBDC, St. Paul, MN.
The panelists stated that fragmented phased reopening require-
ments across the country created confusion among SBDC coun-
selors, clients, and customers. In addition, seasonal businesses
were negatively impacted by closures as they rely on the summer
months to generate a large portion of their annual revenue. Panel-
ists stated that this frustration was compounded when seasonal
businesses initially had to calculate Paycheck Protection Program
(PPP) applications with their current number of staff, not their
peak staff level. While this was addressed through an April 2, 2020
Interim Final Rule (IFR) from the Small Business Administration
(SBA), seasonal businesses have had to use SBDCs to get creative
and pivot their business models to adapt and survive.
Panelists also discussed the negative impact of SBDCs being un-
able to market their services. Panelists stated that more small
businesses and entrepreneurs could use the invaluable services
that SBDC provide but, they may be unaware of their existence in
their communities. Panelists stated that if Congress were to pass
H.R. 4406, the bills marketing provisions would help small busi-
nesses learn about and access the services of SBDCs across the
country.
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THE ECONOMIC INJURY DISASTER LOAN PROGRAM: A VIEW FROM MAIN
STREET
On Wednesday, June 10, 2020, the Committee on Small Business
held a virtual hearing titled: ‘‘The Economic Injury Disaster Loan
Program: A View from Main Street.’’ During the hearing, Com-
mittee Members learned about the SBA’s Economic Injury Disaster
Loan (EIDL) program, which was made available to small busi-
nesses, independent contractors, and certain nonprofits as a way to
provide financial assistance for harm caused by the COVID–19
pandemic issues small business insurance policyholders have faced
in making pandemic-related insurance claims. Members also dis-
cussed various proposed solutions.
The panelists were: Ms. Nancy Sexton, Owner, The Muse Rooms,
North Hollywood, CA; Mr. Jerome Whack, Owner, Christian Street
Pharmacy, Philadelphia, PA; Dr. Craig Gerstein, Ophthalmologist,
Gerstein Eye Institute, Chicago, IL; Ms. Karen Kerrigan, President
and CEO, SBE Council, Vienna, VA.
As the owner of a co-working space for other entrepreneurs, Ms.
Sexton’s testimony offered the perspective of a small business
owner who also rents space to other small businesses, and shared
with the Committee some of the unique challenges she faced and
how she tried to offer her tenants relief. She also testified regard-
ing her expectations that the EIDL would provide long- term low-
interest capital for flexible uses, and was disappointed to learn that
neither her EIDL loan or advance amounts would meet her needs.
Mr. Whack’s testimony focused on how the pandemic had a dis-
proportionate impact on communities of color, and how his phar-
macy struggled through the pandemic with particularly thin mar-
gins but continued to serve the community. He was hopeful the
EIDL Advance would have provided a quick bridge to longer-term
capital, but an unintentional error kept him from quickly accessing
funds. Dr. Gerstein’s testified that he needed a loan of about
$800,000 to $1 million in order for his business to survive the pan-
demic and felt that with a maximum loan size of $2 million, the
EIDL program was perfect for his needs. He testified regarding his
disappointment at the SBA-imposed $150,000 cap on loan sizes,
and how he was then forced to seek more expensive capital else-
where. Ms. Kerrigan’s testimony summarized numerous issues
with borrower’s experience in the EIDL program, and offered nu-
merous recommendations for improving the EIDL program, which
included increasing transparency with stakeholders about changes
and why they are being made.
PAYCHECK PROTECTION PROGRAM: LOAN FORGIVENESS AND OTHER
CHALLENGES
On Wednesday, June 17, 2020, the Committee on Small Business
held a virtual hearing titled: ‘‘Paycheck Protection Program: Loan
Forgiveness and Other Challenges.’’ During the hearing, Com-
mittee Members learned about the SBA’s Paycheck Protection Pro-
gram (PPP) and the issues borrowers and lenders faced in applying
for and using the loans, especially regarding the eligible use of pro-
ceeds that qualify borrowers for full loan forgiveness. Members also
heard about the positive experiences and impact of the program,
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feedback regarding recently enacted changes to the program, and
recommendations to continue optimizing the program.
The panelists were: Ms. Melissa Kelly, Executive Chef and Pro-
prietor, Primo, Rockland, ME; Mr. Eduardo Sosa, Senior Vice
President, SBA Lending, Commerce National Bank, West Lake
Hills, TX; Ms. Ashley Harrington, Director of Federal Advocacy and
Senior Counsel, Center for Responsible Lending, Washington, DC;
and Dr. Rich Coleman, DVM, Owner, Four Paws Animal Hospital,
Lebanon, OH.
Ms. Kelly testified that the restricted use of PPP loan funds lim-
ited the business-saving value of the loan to her business, which
needed relief beyond payroll support, though she did retain mul-
tiple employees. Mr. Sosa’s testimony offered the perspective of a
seasoned 7(a) lender with deep knowledge and experience with the
7(a) loan program. He reported frustrations with the PPP, particu-
larly the lack of programmatic guidance for lenders and forgiveness
guidance for borrowers. Ms. Harrington’s testimony focused on the
disproportionate impact the COVID–19 pandemic was having on
businesses of color and urged Congress to strengthen community
lender set asides. Both Mr. Sosa and Ms. Harrington urged Con-
gress to provide automatic loan forgiveness for all PPP loans of at
least $125,000. Dr. Coleman’s testimony provided a generally posi-
tive review of the program, as the loan helped him save 34 jobs at
his animal hospital, and reported his only concern with the loan
process was that the documents he signed did not have any lan-
guage discussing loan forgiveness terms, and felt he was signing
the loan in good faith that the government would honor forgive-
ness.
THE ECONOMIC INJURY DISASTER LOAN PROGRAM: STATUS UPDATE
FROM THE ADMINISTRATION
On Wednesday, July 1, 2020, the Committee on Small Business
held a hybrid hearing titled: ‘‘The Economic Injury Disaster Loan
Program: Status Update from the Administration.’’ During the
hearing, Committee Members heard about the SBA’s implementa-
tion of the Economic Injury Disaster Loan (EIDL) program during
the Coronavirus pandemic (COVID–19). Members also asked Mr.
James Rivera, the Associate Administrator for ODA, about his plan
to strengthen the program in the coming months, and what pro-
grammatic changes were needed from Congress in order to improve
the program’s operations and reach.
The sole witness was Mr. James Rivera, Associate Administrator
for the SBA’s Office of Disaster Assistance.
Mr. Rivera testified that the SBA’s decisions to cap EIDL loan
sizes at $150,000, and to limit EIDL Advances to $1,000 per em-
ployee, were out of a desire to ensure limited program funds could
reach all borrowers. He also testified regarding the numerous chal-
lenges the agency faced ramping up the program in response to
COVID–19, which saw more disaster lending than for any other
disaster in the agency’s history, combined. At the time of the hear-
ing, Mr. Rivera reported that ODA staff totaled over 7,000 per-
sonnel, which was an all-time high for SBA’s disaster response ef-
forts. He also addressed concerns over SBA’s lack of communication
with borrowers and stakeholders.
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LONG-LASTING SOLUTIONS FOR A SMALL BUSINESS RECOVERY
On Wednesday, July 15, 2020, the Committee on Small Business
met for a virtual hearing titled: ‘‘Long-Lasting Solutions for a
Small Business Recovery.’’ The hearing focused on current barriers
and solutions to recovery for small businesses. It explored efforts
to stimulate small business growth following the Great Recession,
applying those programs to the Coronavirus Pandemic (COVID–
19), and new ideas to help industries that have been
disproportionally impacted by COVID–19.
The witnesses for the hearing were: Mr. Brett Palmer, President
of the Small Business Investor Alliance; Ms. Amanda Cohen, Chef
and Owner of Dirt Candy; Dr. Lisa D. Cook, Professor at Michigan
State University; and Mr. Pete Blackshaw, CEO of Cintrifuse.
The witnesses testified how small businesses and the economy as
a whole were doing before and during the pandemic. All of the wit-
nesses discussed how SBA and government programs, such as Eco-
nomic Injury Disaster Loan Program (EIDL) and Paycheck Protec-
tion Program (PPP) have helped their businesses during the
COVID–19 pandemic. The witnesses provided recommendations on
how SBA and the Federal government could further improve pro-
grams to assist small businesses during and after the COVID–19
pandemic. For example, Mr. Palmer suggested improving the SBIC
program to help challenges with accessing capital—especially eq-
uity and growth capital—and improving access to short-term lines
of credit. While Dr. Cook focused on how to target the PPP and
EIDL programs to further assist women and minority-owned busi-
nesses.
Additionally, the witnesses emphasized how the current SBA
programs have not fully addressed problems in rural communities
and with women-owned, minority-owned, and microbusinesses. Two
of the witnesses Dr. Cook and Ms. Cohen advocated that moving
forward, there needs to be more access to grants, rather than loans,
to target the most underrepresented groups. Ms. Cohen also advo-
cated for the RESTAURANTS Act, which would build on the suc-
cesses of the PPP and Emergency EIDL grants by creating a new
$120 billion dollar grant program to provide additional support for
restaurants that have been hit the hardest by the COVID–19 pan-
demic. Finally, Mr. Palmer testified regarding how a new ‘‘Micro-
SBIC’’ license would help remove unintentional barriers to entry to
the private equity space by minority investors.
OVERSIGHT OF THE SMALL BUSINESS ADMINISTRATION AND
DEPARTMENT OF TREASURY PANDEMIC PROGRAMS
On Friday, July 17, 2020, the Committee on Small Business held
a hybrid hearing titled: ‘‘Oversight of the Small Business Adminis-
tration and Department of Treasury Pandemic Programs.’’ During
the hearing, Committee Members heard directly from the two agen-
cy heads responsible for the implementation of several legislative
provisions designed to assist small businesses during the
Coronavirus pandemic (COVID–19), including the Paycheck Protec-
tion Program (PPP) established under the CARES Act, as well as
SBA’s long-standing EIDL program. Members also asked the panel-
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ists about further policy changes to ensure the programs are reach-
ing underserved small businesses.
The witnesses were the Honorable Steven Mnuchin, U.S. Sec-
retary of the Treasury and the Honorable Jovita Carranza, Admin-
istrator of the Small Business Administration (SBA).
Secretary Mnuchin testified in support of setting aside PPP dol-
lars for minority-owned businesses, though he did not commit to a
specific amount. Mr. Mnuchin’s testimony also provided an update
regarding PPP data and the agencies’ cooperation with the Govern-
ment Accountability Office (GAO). He further testified about other
Treasury pandemic programs, such as the Economic Impact Pay-
ments and Federal Reserve facilities. Administrator Carranza testi-
fied that SBA’s Office of Capital Access approved over 3,600 new
lenders who have never before participated in SBA lending, and
that over 5,300 lenders were in the smallest lender category. She
also testified these lenders reported making the highest number of
loans. She further testified that though SBA continues to process
and approve EIDL loans, the agency exhausted the $20 billion pro-
vided for EIDL Advances. Members also pressed the Administrator
to lift the $150,000 cap on the EIDL, stating the decision short-
changed millions of small businesses.
TRANSPARENCY IN SMALL BUSINESS LENDING
On Wednesday, September 9, 2020, the Committee on Small
Business held a hearing titled: ‘‘Transparency in Small Business
Lending.’’ During the hearing, Committee Members learned about
the importance of transparency in the terms and pricing of small
business loans, especially in a credit market filled with predatory
lenders. Members heard from a large Community Development Fi-
nancial Institution (CDFI) that recently partnered with two finan-
cial technology (Fintech) companies to expand access to affordable
capital to underserved borrowers. Members also heard from a sec-
ond CDFI lender and fair lending advocate about state-level efforts
to improve transparency in small business lending, and more
broadly about the risks presented to small business owners by
some Fintech products. Members also asked the legal expert on the
panel how the current patchwork of state and federal law cannot
properly oversee and regulate the small business credit market,
and recommendations for improving transparency and fairness in
small business lending without hurting the affordability of credit.
The witnesses were: Ms. Luz Urrutia, CEO, Opportunity Fund,
San Jose, CA; Ms. Yanki Tshering, Executive Director, Business
Center for New Americans, New York, NY; Mr. Adam Levitin, Pro-
fessor of Law, Georgetown University Law Center, Washington,
DC; and Mr. Michael Hiles, Founder and CEO, 10XTS, Cincinnati,
OH.
Ms. Urrutia testified regarding the ways Fintech advances can be
deployed responsibly to improve access to affordable capital for
small businesses. Specifically, she testified that her CDFI’s recent
partnership with two large Fintech companies allows her CDFI to
expand its geographic reach across the country. Ms. Tshering testi-
fied regarding the impact unfair lending practices and terms can
have on minority and immigrant small business owners, and as a
CDFI lender has refinanced many predatory loans into more afford-
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able products. She, along with Ms. Urrutia and Mr. Levitin, broad-
ly agreed that Representative Velázquez’s bill, H.R. 7889 which
was introduced on July 30, 2020 and would apply the Truth in
Lending Act to small business loans, is a step in the right direction
to protect small businesses and enhance the role of the Consumer
Financial Protection Bureau in policing the small business credit
market. Mr. Levitin testified regarding the legal framework that
enables predatory small business lenders to operate relatively un-
checked—a loose and inconsistent patchwork of state and federal
laws that fail to properly oversee and consistently regulate market
participants. Mr. Hiles testified regarding the opportunities
Fintech advances presents for improving operations and efficiency
at SBA and the federal government overall. He also testified on the
shifting expectations of younger consumers with respect to tech-
nology, how it is changing the nature of banking, and how this will
impact the future of small business borrowing.
TAKING CARE OF BUSINESS: HOW CHILDCARE IS IMPORTANT FOR
REGIONAL ECONOMIES
On Wednesday, September 30, 2020, the Committee on Small
Business held a hybrid hearing titled: ‘‘How COVID–19 is Impact-
ing Small Businesses Across the Food System.’’ This hearing gave
members a chance to hear about the role of small businesses within
our food production, distribution, and retail systems, the challenges
they are facing, and how federal programs are addressing these
challenges.
Witnesses included: Ms. Kimberly Gorton, President and CEO,
Slade Gorton & Co., Inc., Boston, MA; Mr. Jimmy Wright, Presi-
dent, Wright’s Market, Opelika, AL; Mr. Rob Larew, President, Na-
tional Farmers Union, Washington, DC; Mr. Collin Castore, Owner,
Seventh Son Brewing, President, Ohio Craft Brewers Association
(OCBA), Columbus, OH.
Witnesses discussed the various ways that COVID–19 has ex-
posed numerous vulnerabilities across our food system, and the im-
pacts on farmers, ranchers, fisheries, and retailers. Ms. Gorton dis-
cussed how the fisheries and seafood industry are dealing with a
70% decline and billions in lost sales, and also with the job losses
due to COVID–19. She outlined how the small businesses in the
middle of the food supply chain are critical links in distribution,
are hurting due to significantly decreased demand, and also pro-
vide essential financing/credit via accounts receivable to restaurant
customers. Mr. Wright discussed issues facing small retailers, as
the struggled to compete with larger retailers for in-demand prod-
ucts. He discussed both supply chain shortages and changing tech-
nologies that have been impacting food retail. He also discussed the
importance of federal nutrition programs like SNAP, that help ad-
dress food insecurity around the nation.
Mr. Larew outlined the numerous challenges facing American
farmers and ranchers due to the pandemic. He discussed supply
chain distributions, consolidation across the food and agricultural
sectors, and the impact of COVID–19 outbreaks at processing
plants. He also discussed how food and farm workers are on the
front lines of the pandemic, and the challenges they face. Mr.
Castore discussed the economic impact of COVID–19 restrictions on
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his small business, and the loss of revenue with reduction of on-
premises alcohol consumption.
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PART B
SUBCOMMITTEE HEARINGS
FIRST SESSION OF THE 116TH CONGRESS
EXPLORING CHALLENGES AND OPPORTUNITIES OF UNDERSERVED
BUSINESSES IN THE 21ST CENTURY
On Thursday, February 7, 2019, the Subcommittee on Economic
Growth, Tax, and Capital Access held a hearing titled: ‘‘Exploring
Challenges and Opportunities of Underserved Businesses in the
21st Century.’’ The hearing allowed Members to explore the chal-
lenges faced by women-owned, minority-owned, veteran-owned
businesses, and rural businesses; how those businesses have over-
come those challenges; and how Congress can enhance opportuni-
ties for growth within each of those entrepreneurial communities.
Witnesses on the panel were: Ms. Sharon Pinder, President &
CEO, Capital Region Minority Supplier Development Council; Ms.
Marla Bilonick, Executive Director, Latino Economic Development
Center; Mr. Davy Leghorn, Assistant Director, American Legion
Veterans Employment & Education Division; and Mr. Michael Ro-
mano, Senior Vice President, Industry Affairs & Business Develop-
ment, NTCA—The Rural Broadband Association.
In her testimony, Ms. Pinder questioned why the SBA hasn’t li-
censed more minority-led small business investment companies
(SBICs), and argued that diverse businesses play a critical role in
closing the racial wealth gap. Ms. Bilonick testified that though un-
derserved businesses tend to face many challenges, the most sig-
nificant are a lack of access to capital, lack of access to information
and educational resources, poor or no credit history, and systemic
and institutional racism and sexism. In his testimony, Mr. Leghorn
argued that the Department of Veterans’ Affairs Veterans First
Contracting Program should be legislatively extended to the De-
partment of Defense and Department of Homeland Security. He
also testified that to prevent lapses in federal appropriations from
inhibiting the ability of lenders in the SBA’s loan programs to
make loans, SBA’s loan processing staff should be designated ‘‘es-
sential workers.’’ Mr. Romano testified on the challenges many
rural-based businesses face in accessing affordable and reliable
broadband Internet. He also testified that the primary challenge of
rural network development is ‘‘making a business case for con-
structing networks across hundreds or thousands of miles where
the population is sparse, the terrain is diverse, and the permitting
and contractual considerations can be substantial.’’
(97)
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SHUTDOWN LESSONS: SBA CAPITAL ACCESS PROGRAMS
On Tuesday, February 26, 2019, the Subcommittee on Investiga-
tions, Oversight, and Regulations held a hearing titled: ‘‘Shutdown
Lessons: SBA Capital Access Programs.’’ The hearing allowed
Members to explore the challenges faced by the Small Business Ad-
ministration’s (SBA) Office of Capital Access during the recent 35-
day partial government shutdown, as well as any lessons learned
from conducting its business during a lapse in appropriations.
The sole witness was Mr. William Manger, Associate Adminis-
trator, Office of Capital Access, SBA.
Mr. Manger testified that during the government shutdown of
2018–19, SBA was unable to approve loans, nor was able to accept
new loan applications. SBA was also unable to process applications
for SBA-guaranteed surety bonds. All new secondary market 7(a)
loan pools were stopped and purchasing of SBA-guaranteed loans
was also halted. He also testified that though most routine activity
in the Office of Capital Access ceased to operate, a few excepted
and exempt operations were functional during the lapse, including
the administrative closing of certain pre-approved and obligated
504 loans, continued applications and servicing actions on disaster
loans, and the Lender Match platform.
SMALL BUT MIGHTY: A REVIEW OF THE SBA MICROLOAN PROGRAM
On Thursday, March 7, 2019, the Subcommittee on Economic
Growth, Tax, and Capital Access held a hearing titled ‘‘Small but
Mighty: A Review of the SBA Microloan Program.’’ The hearing al-
lowed Members to learn about the program and its functions, ex-
plore opportunities to continue strengthening the program, and lis-
ten to some of its success stories.
Witnesses on the panel were: Ms. Ceyl Prinster, President &
CEO, Colorado Enterprise Fund, Denver, CO; Ms. Carolina Mar-
tinez, CEO, California Association for Micro Enterprise Oppor-
tunity, San Francisco, CA; Ms. Mariama Jallow, Owner, Mariama’s
Beauty Supply, Portland, ME; and Ms. Michelle Richards, Execu-
tive Director, Great Lakes Women’s Business Council, Livonia, MI
(testified on behalf of Women Impacting Public Policy).
Ms. Prinster testified in favor of two changes to the Microloan
program she believes would reduce administrative burdens on both
Intermediaries and the SBA, and facilitate improved processes to
support small businesses seeking credit. The first is the elimination
of the ‘‘one-fifty-fifth rule,’’ which places an annual limitation on
the distribution of loan funds for the first half of the year to the
lesser of $800,000 or one-fifty-fifth of the new funds appropriated.
The second is the elimination of the ‘‘50–50 rule,’’ which governs
the amount of technical assistance grant funds an Intermediary
may use on pre-loan vs. borrower support. Ms. Martinez also testi-
fied in favor of eliminating the 50–50 rule, as well as amending the
one-fifty-fifth rule and for creating a reserve fund at SBA so that
SBA can deploy capital throughout the year in the event of a lapse
in appropriations. She also testified that SBA should make
Microloan data publicly available on its website, similar to the data
publicly available for the 7(a) program. Ms. Jallow testified regard-
ing her positive experience as a borrower in the program, and par-
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ticularly with regard to the importance of the technical assistance
component of the program. Ms. Richards’ testimony echoed the oth-
ers in arguing for changes to the one-fifty-fifth and 50–50 rules
that would provide greater flexibility to Intermediaries. She also
advocated for increased public access to Microloan data.
CHALLENGES IN SBA’S STATE TRADE EXPANSION PROGRAM
On Tuesday, March 12, 2019, the Subcommittee on Rural Devel-
opment, Agriculture, Trade, and Entrepreneurship held a hearing
titled: ‘‘Challenges in SBA’s State Trade Expansion Program.’’ The
hearing reviewed the state of the SBA State Trade Expansion Pro-
gram (STEP), which was created by The Trade Facilitation and
Trade Enforcement Act of 2015 (TFTEA). The program provides
grants to states to increase the number of small businesses explor-
ing trade opportunities.
The witnesses for the hearing were: Ms. Kimberly Gianopoulos,
Director, International Affairs and Trade, Government Account-
ability Office (GAO); and Mr. Hannibal ‘‘Mike’’ Ware, Inspector
General of the Small Business Administration.
Ms. Gianopoulos’ testimony was based on a GAO report, which
examined the extent to which SBA’s management process provides
reasonable assurance of compliance with the TFTEA and whether
SBA has taken steps to address the challenges states report in
using grant funds. Ms. Gianopoulos testified that SBA’s manage-
ment process does not provide reasonable assurance that STEP
grant recipients met two of the three TFTEA requirements, which
are: proportional distribution requirement, total match require-
ment, and cash match requirement. While SBA’s process provides
reasonable assurance of compliance with the proportional distribu-
tion requirement, some states report challenges with using the
grant funds and SBA has not adequately assessed the risk to the
program from low grant use. Ms. Gianopoulos also testified that
some states cited additional challenges, which include the timing
of the application and award processes, administrative burdens,
and communication with SBA.
Mr. Ware testified that the performance measurements could be
improved, and recipients could have been held more accountable for
meeting the reporting requirements. Mr. Ware discussed the nine
recommendations the OIG made to improve accountability and per-
formance of STEP, which include (1) meet with Congress to deter-
mine STEP expectations for FY 2012; (2) ensure that STEP grant
recipients’ FY 2012 performance measures align with Congress’ ex-
pectations; (3) require STEP grant recipients to establish and pro-
vide SBA with quarterly milestones that will measure effectiveness
and efficiency on a quarterly basis; (4) in cases where STEP grant
recipients do not meet established milestones, require grant recipi-
ents to provide SBA with revised work plans and budget estimates
to meet proposed performance goals; (5) hold STEP grant recipients
accountable for adhering to reporting requirements established in
the notices of award and the FY 2012 STEP grant program an-
nouncement; (6) document and maintain all analyses, evaluations,
and rationale used to award STEP grants; (7) provide Grant Offi-
cer’s Technical Representative (GOTR) training to OIT personnel
acting in that capacity; (8) establish and implement a policy requir-
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ing GOTRs to conduct in-depth reviews of STEP grant recipients’
quarterly submissions and provide feedback to grant recipients;
and (9) consult with OGM to modify STEP grant terms and condi-
tions to align with SBA’s management of the program.
CLEARED FOR TAKE-OFF? IMPLEMENTATION OF THE SMALL BUSINESS
RUNWAY EXTENSION ACT
On Tuesday, March 26, 2019, the Subcommittee on Contracting
and Infrastructure held a hearing titled: ‘‘Cleared for Take-off? Im-
plementation of the Small Business Runway Extension Act.’’ The
hearing examined the Small Business Runway Extension Act of
2018 and the reasons presented by the Small Business Administra-
tion to delay its implementation. Furthermore, the hearing ex-
plored potential solutions to clarify the statute’s intent and miti-
gate any implementation challenges.
The witnesses for the hearing were: Mr. David Black, Partner,
Holland & Knight, Tysons, VA; Ms. Megan C. Connor, Partner,
PilieroMazza PLLC, Washington, DC; Mr. Brian Morales, Presi-
dent, ProCal Lighting, Vista, CA, who testified on behalf of the Na-
tional Electrical Contractors Association and; Ms. Erin Allen, Presi-
dent, Contemporaries, Inc., Silver Spring, MD, who testified on be-
half of the Montgomery County Chamber of Commerce.
Mr. Black explained the unnecessary confusion that the SBA cre-
ated in the small business procurement community by claiming
that the Runway Extension Act was not immediately effective upon
enactment and that it was not applicable to SBA. He stated why
those arguments were legally incorrect and recommended to ad-
dress the issue with clarifying amendments that would shed light
onto congressional intent. Moreover, he stressed that Congress had
done a great thing by passing the Runway Extension Act and that
delaying its implementation through any other legislative action
would be taking away a benefit that had already been provided to
the community.
Ms. Connor advocated for a transition period to ensure that those
small firms that might be negatively impacted by Runway Exten-
sion Act are able to adequately adjust. Furthermore, she stressed
that the System for Award Management—commonly known as
SAM—must be modified to appropriately reflect the change in the
receipts-based formula directed by the Runway Extension Act. Fi-
nally, Mr. Morales and Ms. Connor, both business owners, provided
their perspective as to the benefits that the Runway Extension Act
brings to small business companies that are steadily growing. They
welcomed any additional measures taken by the Committee to pro-
vide further guidance, reduce confusion and ensure that the law is
promptly implemented.
THE SMALL BUSINESS TRADE SNAPSHOT: AGRICULTURE AND WORKERS
On Tuesday, April 2, 2019 the Subcommittee on Rural Develop-
ment, Agriculture, Trade, and Entrepreneurship met for a hearing
titled, ‘‘The Small Business Trade Snapshot: Agriculture and Work-
ers.’’ With trade at the issues at the forefront of national conversa-
tions, small businesses which include farmers, make up ninety-
seven percent of U.S. exporters.
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Witnesses included, Mr. Mark Meirick, Board Member, Iowa
Pork Producers Association Protivin, IA, testifying on behalf of the
National Pork Producers Council; Ms. Rebecca Dostal, Iowa Farm
Bureau, Traer, IA, testifying on behalf of the Iowa Farm Bureau
Federation; Mr. Josh Nassar, Legislative Director, International
Union, United Automobile, Aerospace, and Agricultural Implement
Workers of America, UAW, Washington, D.C.; and Mr. Glenn
Stoltzfus, Co-owner, Pennwood Farms, District 11 State Board Di-
rector and Dairy Committee Chairman, Pennsylvania Farm Bu-
reau, Berlin, PA.
Mr. Meirick testified that the tariffs imposed by the Administra-
tion are currently disrupting the pork producing industry. He stat-
ed there never is a good time to have an export disruption, but the
timing now is particularly bad. He went onto explain that the cur-
rent trade wars are hurting pork producers because of retaliatory
tariffs. Ms. Dostal testified about the importance of farming and
exporting to the sustainability of rural economies, particularly
Iowa. She stressed that trade deals like TPP, USMCA, a trade
agreement with the EU that includes agriculture, and a trade deal
with China that is fair and predictable, would expand our markets,
help American farmers, and sustain our rural communities. Mr.
Nassar testified that lawmakers must re-think trade policies with
a focus on the ensuring American workers are protected. He testi-
fied that any effort to reset America’s trade policy must also be ac-
companied by a strong industrial policy focused on education, work-
force training, research and development, support for advanced
manufacturing and technologies, building a 21st century infrastruc-
ture, balancing environmental and energy policy, and creating pen-
alties for companies that turn their back on American workers.
SBA 7(a) BUDGET PROPOSAL AND THE IMPACT OF FEE STRUCTURE
CHANGES
On Wednesday, April 10, 2019, the Subcommittee on Economic
Growth, Tax, and Capital Access held a hearing titled: ‘‘SBA 7(a)
Budget Proposal and the Impact of Fee Structure Changes.’’ The
hearing allowed Members to learn about the 7(a) Loan Guaranty
Program and how it functions as one that usually operates at zero
cost to the taxpayer. Further, the hearing examined the Small
Business Administration’s (SBA) budget proposal for Fiscal Year
2020 (FY2020), the proposal contained therein to adjust the fee
structures in the program, and the impact the proposed changes
could have on the sustainability of the 7(a) program.
There were two witness panels. Mr. Tim Gribben, Chief Finan-
cial Officer and Associate Administrator for Performance Manage-
ment at SBA testified as the sole witness on the first panel. Panel-
ists on the second panel were: Mr. Tony Wilkinson, President &
CEO, National Association of Government Guaranteed Lenders,
Stillwater, OK; Ms. Lynn G. Ozer, President-SBA Lending, Fulton
Bank, Pottstown, PA; Ms. Gail Jansen, Vice President-Business
Services & Operations, Kinecta Federal Credit Union, Manhattan
Beach, CA (testified on behalf of the National Association of Feder-
ally-Insured Credit Unions); and Mr. Gordon Gray, Director of Fis-
cal Policy, American Action Forum, Washington, D.C.
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On the first witness panel, Mr. Gribben testified regarding SBA’s
projection that in FY2020, the 7(a) program will operate at a posi-
tive subsidy, meaning SBA will need either a subsidy appropriation
from Congress, or an adjustment to the fee rates.
On the second witness panel, Mr. Wilkinson testified urging the
Committee to question the subsidy projection made by SBA and
OMB. Ms. Ozer testified that for the 7(a) portfolio to have gone
from a zero subsidy cost to a positive subsidy cost of $99 million,
there would be some indication in a worsening of the portfolio’s
performance, but in her view there was not. She also observed that
the FY2020 budget revealed that every cohort of loans made for the
past nine fiscal years showed significant downward re-estimates,
meaning that in those years when SBA asked for a certain level
of fees from borrowers and lenders, SBA could have asked for much
less and still have covered the cost of the program at zero subsidy,
that accordingly SBA has been repeatedly overcharging borrowers
and lenders, and that therefore, the current subsidy model used to
project the cost of the program is not working as it should. Ms.
Jansen noted SBA’s proposed fee structure adjustment did not pro-
pose changes for loans of $150,000 or less, which Ms. Jansen testi-
fied was positive. However, she testified that the proposed in-
creases to fees for loans of $500,001 to $1,500,000 would make it
more expensive for members of her credit union to access credit at
that amount. Mr. Gray testified regarding federal credit reform,
and on how OMB and the various agencies that extend federal
credit calculate projected subsidy costs for each fiscal year.
LOST OPPORTUNITIES? SBA’S ENGAGEMENT WITH HISTORICALLY BLACK
COLLEGES AND UNIVERSITIES
On Tuesday, April 30, 2019, the Subcommittee on Investigations,
Oversight, and Regulations met in room 2360 of the Rayburn
House Office for a hearing titled: ‘‘Lost Opportunities? SBA’s En-
gagement with Historically Black Colleges and Universities.’’ The
hearing examined whether Historically Black Colleges and Univer-
sities (HBCUs) are receiving adequate support from the Small
Business Administration (SBA) to help develop successful entre-
preneurs.
There were two panels. The first panel was comprised of two gov-
ernment witnesses, they were: Ms. Anna Maria Ortiz, Acting Direc-
tor, Financial Markets and Community Investment, Government
Accountability Office; and Mr. Allen Gutierrez, Association Admin-
istrator, Office of Entrepreneurial Development, Small Business
Administration. The second panel was comprised of four represent-
atives from Historically Black Colleges and Universities, they were:
Dr. Paulette Dillard, President, Shaw University; Dr. Barron H.
Harvey, Dean of the School of Business, Howard University; Dr.
Michael H. Casson, Jr., Dean of the School of Business, Delaware
State University; and Dr. Roslyn Clark Artis, President and CEO,
Benedict College.
Ms. Ortiz testified that SBA programs and activities that foster
entrepreneurship have included, but do not specifically target His-
torically Black Colleges and Universities (HBCUs). Preliminary ob-
servations indicate that SBA has limited data on entrepreneurship
related efforts at HBCUs, and the relationships between selected
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HBCUs, SBA resource partners, and district offices varied. Mr.
Gutierrez testified that in the past the HBCU initiative has resided
in various SBA offices, and in 2018 the Administrator directed Mr.
Gutierrez to lead this effort. Moving forward, the goals will be to
break down any existing silos within the HBCU engagements, fos-
ter greater coordination with the Office of Field Operations, and
ensure consistency and data collection.
On the second panel, Dr. Dillard testified about Shaw’s experi-
ences and relationship with the SBA. Shaw signed a Strategic Alli-
ance Memorandum with SBA in January 2013, with the purpose of
developing and fostering a working relationship to strengthen
small business development in the local area. As part of this part-
nership, Shaw opened a Small Business Resource Center in the fall
of 2013. The Center hosts seminars and workshops on a variety of
small business topics, including business planning, credit building,
and marketing to students, alumni, and community residents. Dr.
Shaw testified that she hopes to see greater collaboration between
SBA and HBCUs, and legislation enacted to strengthen Executive
Order 13779.
Dr. Harvey testified that entrepreneurship for minorities has
made progress over the last six years but more needs to be done.
The main challenge for African American owned small businesses
is securing capital. More than one-third of minority owned firms
with gross revenues under $500,000 do not apply for a loan out of
fear of rejection. Howard University hosts a lead SBDC center on
campus, and Dr. Harvey discussed how HBCUs can provide oppor-
tunities for the Small Business Administration through its SBDCs
to educate the next generation of entrepreneurs in the minority
and African-American communities. He recommended that SBA
implement a unique and special partnership with HBCUs, includ-
ing expanding the number of SBDC subcenters at HBCUs from 16
to more than 50, strategically located in communities and areas of
great need for economic impact.
Dr. Casson testified that the impact of the SBA’s funding and
services could be exponentially more significant if the University
and the SBA strategically worked together to develop targeted pro-
gramming that effectively integrates the talent and resources of
both entities. Dr. Artis testified about Benedict’s experiences with
the SBA, and its Strategic Alliance Memorandum with SBA. Simi-
lar to Dr. Dillard’s testimony, Dr. Artis testified that she hopes to
see greater collaboration between SBA and HBCUs, and legislation
enacted to strengthen Executive Order 13779.
THE DIGITAL ECOSYSTEM: NEW PATHS TO ENTREPRENEURSHIP
On Thursday, May 9, 2019, the Subcommittee on Innovation and
Workforce Development held a hearing titled: ‘‘The Digital Eco-
system: New Paths to Entrepreneurship.’’ The hearing provided the
Committee the opportunity to discuss how digital platforms em-
power small businesses and potential barriers to the adoption.
Witnesses included Ms. Kellyn Blossom, Head of Public Policy,
Thumbtack, San Francisco, CA; Ms. Erika Mozes, Co-Founder and
COO, Hyr, Inc., New York, NY; and Mrs. Olivia Omega Wallace,
Co-Founder, Wallace Marketing Group, Aurora, CO.
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The Panel discussed how the integration of digital platforms is
vital for small businesses. Mr. Blossom discussed how small busi-
nesses can benefit from tools like Thumbtack to reach larger audi-
ences and use platform-developed data to track engagement. Ms.
Mozes spoke about how hiring gig workers can help small business
meet labor needs without overspending on overheard. Ms. Wallace
explained why using digital marketing tools is essential for small
business growth and shared ways that small businesses can adopt
these tools at little to no cost.
OVERSIGHT OF THE SBA’S WOMEN-OWNED SMALL BUSINESS FEDERAL
CONTRACT PROGRAM
On Thursday, May 16, 2019, the Subcommittee on Contracting
and Infrastructure held a hearing titled: ‘‘Oversight of the SBA’s
Women-Owned Small Business Federal Contract Program.’’ The
hearing focused on the extent to which SBA had implemented the
amendments enacted in the Carl Levin and Howard P. ‘‘Buck’’
McKeon National Defense Authorization Act for Fiscal Year 2015
(the 2015 NDAA) to the Women-Owned Small Business Program
(WOSB Program). Additionally, it focused on the extent to which
SBA had addressed the deficiencies found in the 2014 GAO report
and reiterated in the 2019 GAO report.
The witnesses for this hearing were: Mr. William B. Shear, Di-
rector, Financial Markets and Community Investment, U.S. Gov-
ernment Accountability Office, Washington D.C. and; Mr. Robb N.
Wong, Associate Administrator, Office of Government Contracting
and Business Development, U.S. Small Business Administration,
Washington D.C.
Mr. Shear explained that out of the three changes promulgated
in the 2015 NDAA, SBA had implemented just one: the sole-source
authority. SBA had not eliminated the option for program partici-
pants to self-certify and had not implemented the certification pro-
gram. Moreover, he explained that SBA had not addressed program
oversight deficiencies highlighted in GAO’s 2014 report. In par-
ticular, SBA had not established procedures to assess the perform-
ance of third party certifiers and had not taken steps to enhance
eligibility examinations of program participants. Thus, GAO main-
tains that the implementation of sole-source authority in light of
these continuous oversight deficiencies can increase risks of fraud
and abuse. Furthermore, he testified that it was still a mystery to
him and his team what were the challenges that contributed to the
delay in the implementation of the 2015 NDAA changes. In mul-
tiple occasions, GAO received mixed information as to where the
agency was in the process of creating the proposed rule for the cer-
tification program and SBA could not even provide project plans or
timelines to provide much needed clarity. Mr. Shear added that,
now that the proposed rule had been finally issued and in looking
at its content, he was still at a lost as to why this proposed rule
took so long.
Mr. Wong explained that when he started about two years ago
as Associate Administrator of the Office of Government Con-
tracting, he quickly learned that nothing had been done with re-
gards to the WOSB certification program. However, he stressed
that during his tenure, the agency has been developing a blueprint
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that would offer clarity as to SBA’s present state and would guide
future efforts. This blueprint emphasized unifying common ele-
ments of eligibility and standardizing their processes and analysis
while reducing any variations, in order to process applications
across the different contracting programs. He expressed that this
blueprint will also serve as a plan of action for funding and staffing
needs and that it would have been irresponsible to make any such
requests without having this blueprint in place. According to Mr.
Wong, the main part of this blueprint has been recently completed
and with it the agency can start to address the concerns raised by
GAO and the 2015 changes. Moreover, he expressed that SBA’s es-
timated date for initial implementation of the WOSB certification
program is June 2021.
INVESTING IN COMMUNITY: THE SBA’S COMMUNITY ADVANTAGE LOAN
PROGRAM
On Tuesday, May 21, 2019, the Subcommittee on Investigations,
Oversight, and Regulations held a hearing titled: ‘‘Investing in
Community: The SBA’s Community Advantage Loan Program.’’
The hearing allowed Members to learn about SBA’s Community
Advantage (CA) loan program, which has been on a pilot status
since its creation in 2011, as a program designed to reach commu-
nities traditionally underserved by conventional lenders. The hear-
ing also enabled Members to hear perspectives from lenders and
borrowers on whether the program should be made permanent.
Witnesses on the panel were: Ms. Angela Mavridis, Owner,
Tribalı́ Foods, San Marino, CA; Mr. Robert Villareal, Executive
Vice President, CDC Small Business Finance, San Diego, CA; Ms.
Janie Barrera, President and CEO, LiftFund, San Antonio, TX; and
Mr. John Kropf, President, Growth Capital Corp, Cleveland, OH.
Ms. Mavridis testified regarding her experience as a borrower in
the Community Advantage program, and reported a positive expe-
rience. According to Ms. Mavridis, the Community Advantage loan
she took out enabled her to jump-start her business’ growth, ex-
panding distribution of her product to 35 states. Mr. Villarreal tes-
tified regarding his experience as a lender in the program, and re-
ported that the cumulative charge-off rate on CA loans through
FY2018 has been 2 percent, and the cumulative default rate has
been under 4 percent. He testified that these rates are significantly
lower than what SBA anticipated when the CA pilot program was
initiated. Ms. Barrera similarly testified regarding her experience
as a lender in the program. She reported on several metrics she ar-
gued demonstrated her organization has learned how to mitigate
risk: in 25 years of business, her organization’s average loan size
is under $25,000, her borrower’s average FICO score is 590, and
her organization has a 96 percent repayment rate. Mr. Kropf, an-
other CA lender, testified regarding the benefits of the CA pro-
gram’s flexible structure that allowed his organization to partner
with a bank in Ohio to provide an innovative financing structure
that has, according to Mr. Kropf’s testimony, worked ‘‘tremendously
well’’ for a high volume limited balance sheet lender. Mr.
Villarreal, Ms. Barrera, and Mr. Kropf all called for making the CA
program permanent.
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SMALL BUSINESSES AND THEIR LIMITATIONS WITHOUT RELIABLE
ACCESS TO RURAL BROADBAND
On Thursday, May 30, 2019, the Subcommittee on Contracting
and Infrastructure held a field hearing at Bulltear Industries in
Scandia, MN titled: ‘‘Small Businesses and Their Limitations With-
out Reliable Access to Rural Broadband.’’ The hearing allowed
Members to focus on broadband deployment efforts in rural Amer-
ica and the challenges small firms in those areas face without reli-
able broadband services.
Witnesses included Mr. Adam Artz, Realtor, Realty Executives,
Blaine, MN; Mr. Marc Johnson, Director, East Central Minnesota
Educational Cable Cooperative, Braham, MN; Mr. Greg Carlson,
Executive Director of Partnered & Affiliated Boards, Cambridge
Presbyterian Homes, Roseville, MN; and Mr. Matt Crescenzo,
Owner, Bulltear Industries, Inc., Scandia, MN.
Mr. Artz testified that good internet is no longer a luxury and
top notch internet is a foundation of future growth. He mentioned
that the majority of all paperwork is sent, signed and stored elec-
tronically and that’s next to impossible with current internet at his
home. Mr. Johnson testified that small businesses are the lifeblood
of communities and rural areas in East Central MN, throughout
the state and around the nation. He testified that agriculture, tour-
ism, hospitality, manufacturing, healthcare, retail and other sectors
rely on the Internet to communicate with suppliers and customers,
to provide their services and to stay viable. He also testified that
lack of adequate internet can impact the sustainability of rural
communities. He stated that without access to affordable high-
speed Internet, businesses cannot thrive, families are less likely to
locate in the area and it is difficult to provide a fair and equitable
education. Mr. Carlson testified that work from home and business
from home activities are increasing as are technology-based health
care making business class broadband availability in rural neigh-
borhoods an economic development and safety issue. Mr. Crescenzo
stated his business relies on customer experience not volume but
the network of very happy customers to keep his company busy. He
stated adequate broadband is crucial to his company’s success that
so that he can upload training videos, download customer files and
talk on the phone without interruption.
MIND THE ‘SKILLS’ GAP: APPRENTICESHIPS AND TRAINING PROGRAMS
On Tuesday, June 4, 2019, the Subcommittee on Innovation and
Workforce Development held a hearing titled: ‘‘Mind the (Skills)
Gap: Apprenticeships and Training’’ The hearing provided the Sub-
committee the opportunity to hear from workforce experts about
the challenges facing small firms as they create jobs and what ef-
forts are being taken to address the skills gap.
Witnesses included Mr. Joshua Broder, CEO, Tilson; Mr. Tim
Herbert, Vice President of Research, CompTIA; Mr. Ronald
Marlow, Vice President for Workforce Development, National
Urban League; and Mr. Talbot Gee, CEO, HARDI.
The panel emphasized the importance apprenticeships and job
training programs to close the skills gap. Mr. Broder shared suc-
cess stories from Tilson’s apprenticeship program for tower climb-
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ers. Mr. Herbert discussed the eminent importance of building a cy-
bersecurity workforces to combat the advancement of cyber threats
and the importance of building and nurturing a pipeline of cyberse-
curity professionals.
SBA’S STATE TRADE EXPANSION PROGRAM: THE STATES’ PERSPECTIVE
On Tuesday, June 11, 2019, the Subcommittee on Rural Develop-
ment, Agriculture, Trade, and Entrepreneurship held a hearing ti-
tled: ‘‘SBA’s State Trade Expansion Program: The States’ Perspec-
tive.’’ The purpose of the hearing was to review the state of the
SBA State Trade Expansion Program (STEP). The Trade Facilita-
tion and Trade Enforcement Act of 2015 directed SBA to establish
the program to provide grants to states to increase the number of
small businesses exploring trade opportunities. The hearing al-
lowed Members to hear the states’ perspectives on SBA’s State
Trade and Expansion Program (STEP) and its effectiveness in pro-
viding export opportunities for small businesses.
The witnesses for the hearing were: Mr. Wade Merritt, President
and State Director of International Trade at the Maine Inter-
national Trade Center; Ms. Jennifer Bacon, Co-Founder of
FlapJacked; Mr. Clifton Broumand, Founder and CEO of Man &
Machine, Inc.; and Ms. Jennifer Black, Executive Director of Ex-
port Development for the Pennsylvania Department of Community
& Economic Development in the Office of International Business
Development.
Witnesses representing small business owners and state trade
representatives expressed overall support for the program, but
raised concerns with the timeline for awarding grants, the lack of
communication with SBA, and the complexity of the reporting re-
quirements. Mr. Wade testified to the importance of the STEP pro-
gram to help small businesses penetrate international markets but
raised concerns with SBA’s management of the program. Ms. Bacon
testified in support of the STEP program, which helped her get in
front of retailers directly and bypass expensive distributers and
middlemen, making it easier to offer products at affordable prices.
Mr. Broumand testified in support of the STEP program, which
‘primes the pump’ and sets business owners up with exporting op-
portunities. He testified that sales do not always materialize imme-
diately, but sometimes farther down the road. Ms. Black’s testi-
mony encouraged collaboration with states by the SBA in an effort
to alleviate complex reporting requirements and administrative
burdens, in addition to support for the STEP program.
THE IMPORTANCE OF ACCURATE CENSUS DATA TO SMALL BUSINESS
FORMATION AND GROWTH
On Thursday, June 20, 2019, the Subcommittee on Economic
Growth, Tax, and Capital Access held a hearing titled: ‘‘The Impor-
tance of Accurate Census Data to Small Business Formation and
Growth’’ The hearing provided the Subcommittee the opportunity
to hear from Small Business Development Centers (SBDCs), Re-
gional Chambers of Commerce, and Small Businesses about the im-
portance of census data.
Witnesses included Mr. Darrin Conroy, Library Directory, NY
Small Business Development Center, Albany, NY; Mr. James
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Parker, President, Riverview Studios, Bordentown, NJ; Mr. Jona-
than Weinhagen, President & CEO, Minneapolis Regional Chamber
of Commerce, Minneapolis, MN; Ms. Jill Dietz, Regional Center Di-
rector of Statewide Services, Oklahoma Small Business Develop-
ment Center, Tulsa, OK.
The Panel emphasized the importance of accurate census data for
the creation of small businesses. Mr. Conroy had a wealth of data
from the NY SBDC of times census data was used by SBDC coun-
selors to help small businesses choose a location and find their tar-
get market. James Parker himself uses census data as a way to
make business decisions, and openly advocated for it on behalf of
the New Jersey Main Street Alliance. Mr. Weinhagen emphasized
that the amount of federal dollars that come into Minnesota due
to the census were essential to the startup of new businesses be-
cause it funds infrastructure spending, workforce development pro-
grams, and education. Ms. Dietz echoed the many ways SBDC
counselors use census data to help entrepreneurs make
foundational business decisions.
BROADBAND MAPPING: SMALL CARRIER PERSPECTIVES ON A PATH
FORWARD
On Tuesday, June 25, 2019 the Subcommittee on Contracting
and Infrastructure held a hearing titled: ‘‘Broadband Mapping:
Small Carrier Perspectives on a Path Forward.’’ Access to reliable
high-speed broadband is a critical issue for small businesses. Fed-
eral funds, through grants, loans, and taxes direct funds to in-
crease broadband throughout the U.S. The hearing allowed Mem-
bers of the Committee to hear about the need for accurate
broadband maps, current challenges and explored ways that fed-
eral government and private sector can work together to collect
more accurate broadband coverage data.
Witnesses included Mr. Tim Donovan, Senior Vice President,
Legislative Affairs, Competitive Carriers Association, Washington,
DC; Ms. Beth Osler, Director, Customer and Industry Relations,
Unitel, Inc., Unity, ME; testifying on behalf of the National Rural
Electric Cooperative Association; Mr. Dan Stelpflug, Director, Oper-
ations, Engineering & Technology, Allamakee Clayton Electric Co-
operative, Postville, IA; testifying on behalf of the NTCA—The
Rural Broadband Association; and Mr. Jason Hendricks, Chief Reg-
ulatory Officer, Range Companies, Forsyth, MT; testifying on be-
half of the WTA—Advocates for Rural Broadband.
Mr. Donovan testified that closing the digital divide is a critical
challenge, and it has a direct impact on our ability to power all of
these innovations. He stated that 5G will supercharge existing
services like telehealth and precision agriculture, and enable new
services such as augmented and virtual reality, autonomous vehi-
cles, and other innovations not yet invented. Mr. Stelpflug testified
that Electrical Cooperatives primarily exist to provide reliable,
clean and affordable electricity to its members, they also provide
robust communications infrastructure including access to quality
and affordable broadband that enables rural communities to thrive
and compete in an increasingly connected, global marketplace.
Ms. Osler testified that getting broadband to and keeping
broadband in rural areas truly requires the best kinds of public-pri-
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vate partnership. She explained that much of the extensive net-
work in Maine today is a result of private investment. However,
she mentioned that for those places where densities are low and re-
turns on infrastructure investments are measured in decades, gov-
ernment support is important to help make the business case. Ms.
Osler has emphasized that to be able to determine where limited
resources for support should be spent, and to ensure that incen-
tives exist for private investments where they can be justified,
mapping of broadband availability and identification of unserved
areas are critical.
SBA MANAGEMENT AND OVERSIGHT OF SCORE
On Thursday, July 11, 2019, the Subcommittee on Investigations,
Oversight, and Regulations held a hearing titled: ‘‘SBA Manage-
ment and Oversight of SCORE.’’ SCORE is a national, volunteer
nonprofit organization comprised of 11,000 volunteers who provide
free business mentoring services at nearly 350 chapters nation-
wide. The Office of Inspector General released an audit of the pro-
gram in April 2019, which examined SBA’s oversight of the pro-
gram’s funds and its achievement of program goals.
The witnesses for the hearing were: Mr. Hannibal ‘‘Mike’’ Ware,
Inspector General, U.S. Small Business Administration; and Mr.
Allen Gutierrez, Associate Administrator, Office of Entrepreneurial
Development, U.S. Small Business Administration.
Mr. Ware testified on the findings of the Office of Inspector Gen-
eral’s (OIG) report, which found that SBA did not effectively over-
see SCORE’s use of federal funds. Mr. Ware apprised the Com-
mittee of three criminal investigations for potential instances of
embezzlement and whistleblower retaliation violations that re-
sulted from the investigation. The OIG found that SCORE commin-
gled federal funds with unrestricted donations and used federal
funds for unallowable, unallocable, and unsupported costs. The
OIG also found that SCORE charged for publication materials that
did not include the required SBA acknowledgement statement, and
improperly managed funds used for cosponsored activities. As a re-
sult, the OIG questioned $713,986 of costs that did not adhere to
the cooperative agreement requirements or were not properly sup-
ported. On a scale of 1 to 10 in terms of seriousness, Mr. Ware tes-
tified that the findings were an 8. Mr. Ware testified about the sys-
temic issues in SBA’s grant management function and deficiencies
in the oversight and monitoring of federal funds. The lack of over-
sight, coupled with the IT issues with EDMIS, hampered SBA’s
ability to detect waste, fraud, and abuse, and further led to a cul-
ture in SCORE in which whistleblowing was discouraged.
Mr. Gutierrez testified that he is deeply troubled by the OIG’s
findings, and his office has taken steps to increase the oversight of
the program, which include revising the Standard Operating Proce-
dures (SOP), clarifying the whistleblowing reporting language, de-
veloping guidance and training on federal financial management at
SCORE’s upcoming National Leadership Conference, and sched-
uling a financial examination of the SCORE Association.
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HELPING SMALL BUSINESSES COMPETE: CHALLENGES AND
OPPORTUNITIES IN THE FEDERAL PROCUREMENT MARKETPLACE
On Tuesday, July 16, 2019, the Subcommittee on Contracting
and Infrastructure met for a hearing titled: ‘‘Challenges and Oppor-
tunities in the Federal Procurement Marketplace.’’ As part of the
Subcommittee’s ongoing efforts to improve the competitive viability
of small businesses, the hearing examined a variety of issues im-
pacting small contractors, allowing members to take a look at some
of the common challenges faced by small businesses in the federal
contracting marketplace. The hearing also provided an opportunity
for small businesses to explain how these issues directly affect
their daily operations and bring forward recommendations or po-
tential solutions to address them.
The witnesses for this hearing were: Ms. Belinda Guadarrama,
Founder and CEO of GC Micro, testifying on behalf of GovEvolve—
a group of small business IT value-added resellers; Mr. Bruce
Lansdowne, President and CEO of Trinity Technology Partners,
testifying on behalf of the Montgomery County Chamber of Com-
merce; Mr. Thomas J. DePace, CTS, COO and Sr. Engineering
Manager, Advance Sound Company, testifying on behalf of Na-
tional Electrical Contractors Association and; Ms. Dorothy Ann
Callahan, Principal, D. Callahan, LLC.
Ms. Guadarrama made numerous recommendations such as
modifying the employee-based formula used to calculate size stand-
ards in a similar fashion to the way the receipts-based standard
was modified through the Runway Extension Act; adding SBA to
the FAR Council and; increasing sole-source thresholds while elimi-
nating option years within the sole-source authority in the different
contracting programs. Furthermore, Mr. DePace spoke about the
cash-flow difficulties experienced by many contractors in the con-
struction sector and praised the Committee’s efforts for putting to-
gether H.R. 2344, which requires partial payments for unilateral
change orders requested by the Government.
In general, there was an emphasis on subcontracting. For exam-
ple, Mr. Lansdowne suggested empowering the OSDBUs to monitor
compliance of subcontracting plans; requiring SBA to report actual
subcontracting dollars, not only percentages, in the annual score-
card and; requesting GAO to conduct a study about subcontracting
authority, performance and processes. Meanwhile, Ms. Callahan
recommended requiring identification of small businesses (their
names) in subcontracting plans to ensure primes are held account-
able; assessing performance of subcontracting plans as part of
prime’s annual evaluations and; eliminating the ‘‘good-faith effort’’
standard in subcontracting plans and replacing it with a pass/fail
rating.
HOW REGULATIONS STIFLE SMALL BUSINESS GROWTH
On Monday, July 22, 2019, the Subcommittee on Economic
Growth, Tax, and Capital Access met at Oklahoma State Univer-
sity—Tulsa in Tulsa, OK for a field hearing titled: ‘‘How Regula-
tions Stifle Small Business Growth.’’ The hearing enabled the Com-
mittee to generally examine the regulatory landscape small busi-
nesses and entrepreneurs must navigate, including its impact on
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their ability to successfully operate a business, and the effect on
their communities at large. Members heard from a variety of wit-
nesses who addressed how regulations impact their businesses, in-
dustries, and their local communities.
Witnesses on the panel were: Mr. Chad Selman, Owner, Selman
Farms, LLC, Skiatook, OK; Mr. Chris Jordan, President and CEO,
The Farmers State Bank, Stigler, OK (on behalf of the Independent
Community Bankers of America); Mr. Howard L. Ground, Director
of Regulatory Affairs, The Petroleum Alliance of Oklahoma, Okla-
homa City, OK; and Ms. Elizabeth Osburn, Senior Vice President
of Government Affairs, Tulsa Regional Chamber, Tulsa, OK.
Mr. Selman testified regarding his experience hiring H–2A immi-
grant workers, saying that because the program is so complicated,
he is forced to rely on third-party consultants for hiring H–2A
workers. Mr. Jordan testified regarding the regulatory burdens
faced by small community banks. He also specifically noted that as
cannabis-related businesses continue to mature, they require access
to the traditional banking system, and that the conflict between
state and federal law has created increasingly significant legal and
compliance concerns for banks that wish to provide banking serv-
ices to such businesses in jurisdictions with legal cannabis. Mr.
Ground testified regarding the way small oil and gas producers
must comply with regulations promulgated by numerous federal
agencies, including the Environmental Protection Agency, the De-
partment of Interior, and the Department of Labor, among others.
Ms. Osburn testified that small businesses in the Tulsa Regional
Chamber report being burdened by reporting requirements under
the Affordable Care Act. She also warned of the potential for unin-
tended consequences in the way some regulations can impact cer-
tain small businesses, such as those in the food service industry.
SUPPORTING THE NEXT GENERATION OF AGRICULTURAL BUSINESSES
On Thursday, July 25, 2019, the Subcommittee on Rural Devel-
opment, Agriculture, Trade, and Entrepreneurship held a hearing
titled: ‘‘Supporting the Next Generation of Agricultural Busi-
nesses.’’ The hearing allowed Members to hear firsthand about the
issues that are impacting young and beginning farmers, as well as
the programs and services available that support our next genera-
tion of farmers and agricultural entrepreneurs.
Witnesses on the panel were Mr. Matthew Keesling, Farm Man-
ager, Bures’ Organic Family Farm, Deerbrook, WI; Mr. Jason
Grimm, Owner, Grimm Family Farm, Williamsburg, IA; Ms. Meri
Lillia Mullins, Farm Manager, Lighthearted Ranch, Longmont, CO;
Mr. Rodney Hebrink, President and CEO, Compeer Financial,
Lakeville, MN.
The panel discussed the current state of American agriculture
and the importance of supporting the new and beginning farmers
as they seek to access land, capital, and programmatic support.
Many of the witnesses noted the costs associated with farming, and
the importance of access to capital in order to farm. Mr. Hebrink
provided a strong perspective from Farm Credit about the opportu-
nities for agricultural lending and highlighted many stories of new
and beginning farmers from a variety of operations who have been
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able to develop successful agricultural businesses thanks to the
lending of Farm Credit.
One of the challenges that many younger farmers face is the bur-
den of student loan debt. Both Mr. Grimm and Ms. Mullins articu-
lating the many challenges and sacrifices they make in order to
farm while in debt, and the impacts that student loan debt have
on their ability to support and grow their farm enterprises. Addi-
tionally, Mr. Grimm discussed the importance of land access for
young farmers and stressed the importance of supporting tax and
policies that promote the transfer of farmland from older genera-
tions. Mr. Keesling discussed some of the challenges that he had
securing both capital and training in agriculture, such as FSA be-
ginning farmer requirements. Mr. Keesling also discussed how his
apprenticeship program set him up for success for transition to
farm ownership. He also highlighted the importance of ensuring
that VA education support could go towards vocational training. All
witnesses agreed that agriculture is important to our country and
our communities, and that it is important to support those that
choose a career in agriculture.
EXPANDING OPPORTUNITIES FOR SMALL BUSINESSES AT MILITARY
BASES
On Thursday, August 1, 2019, the Subcommittee on Economic
Growth, Tax, and Capital Access met for a field hearing in
Moorestown, New Jersey titled: ‘‘Expanding Opportunities for
Small Businesses at Military Bases’’. The hearing focused on in-
creasing procurement opportunities for small businesses with the
Federal Government, particularly with the Joint Base McGuire-
Dix-Lakehurst and at the state level (New Jersey).
The witnesses for the hearing were: Mr. John Whittington, Busi-
ness Representative, Sheet Metal Workers Local Union 27, Farm-
ingdale, NJ; Mr. Paul Costello, President of Del Ran Business As-
sociation and Vice President of Sciacca’s Upholstery, Delran, NJ;
Mr. Raul Mercado; Director of the New Jersey Institute of Tech-
nology Procurement Technical Assistance Center, Newark, NJ; and
Mr. Jeff Cantor, Founder & CEO of NJ State; Veterans Chamber
of Commerce, Marlboro, NJ.
Testimony focused on the challenges small business face and the
fact that small businesses in the state are not getting their fair
share of contracting opportunities, especially with the base. For ex-
ample, Mr. Whittington’s testimony emphasized on the lack of in-
formation when it comes to procurement opportunities with the
base and insufficient lead times on project information. Lack of ac-
cess to project personnel and contracting officers was another area
highlighted by the witnesses. Mr. Cantor recommended having pro-
curement fairs at the base where contracting officers can learn
about the goods and services small businesses can provide. Mr.
Costello also reiterated the need to encourage federal contracting
personnel to reach out to small businesses to learn about what they
can offer. Additionally, he suggested that the costs of entering the
federal marketplace and doing business with the government
should be kept within the reach of small businesses. Finally, Mr.
Mercado touched upon numerous concerns that hinder small busi-
ness participation. Some of the areas he discussed were: the lack
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of awareness of available resources offered by PTACs, inequitable
funding of PTACS, burdensome information required from small
businesses and the fact that large prime contractors should play a
bigger role in small business procurement, mentorship and train-
ing.
CONNECTING RURAL SMALL BUSINESSES TO BROADBAND:
CHALLENGES, SUCCESSES, AND HOW TO DO BETTER
On Friday, September 6, 2019, at University of Maine Machias
in Machias, Maine, the Subcommittee on Contracting and Infra-
structure met for a field hearing titled: ‘‘Connecting Rural Small
Businesses to Broadband: Challenges, Successes, and How to Do
Better.’’ This field hearing allowed Members of the Committee to
review the barriers to broadband infrastructure deployment in
rural America and ways increased federal investment can help
close the digital divide.
Witnesses included Mr. Mark Ouellette, President & CEO Axiom
Technologies, LLC Machias, ME; Mr. Chris Loughlin, Board Mem-
ber, Downeast Broadband Utility Town Manager, Baileyville, ME;
Ms. Lisa Hanscom, Co-Manager, Welch Farm & First Selectman
Roque Bluffs, ME; and Mr. Timothy R. McAfee, CEO, Pioneer
Broadband Houlton, ME.
As the CEO of a full-service internet service provider, Mr.
Ouellette’s company delivers strategic and customized rural
broadband deployment solutions to remote customers and commu-
nities across Maine. He testified that his company serves some of
the most difficult customers to reach, in some of the most chal-
lenging and remote terrain in the United States. Importantly, he
testified that internet connectivity can revitalize rural commu-
nities. Mr. McAfee testified that existing federal grant programs
are sometimes very difficult to obtain. For example, he mentioned
that the USDA Community Connect Grant will pay for construction
of a network to every home but requires the operator to build and
staff a community center with computers and Internet access. Mr.
Loughlin emphasized that the fiber is the backbone of the Internet
and that the middle mile also consists of fiber. He testified that the
gap exists on the last mile because policy makers have relied on
private companies to set the agenda and use public funds to con-
nect customers with Digital Subscriber Lines (DSL), cable, or fixed
wireless lines that use copper based technologies that are inad-
equate to the task of connecting every American. He continually
emphasized the need that that the solution was rather simple to
connect rural America and that is to build fiber networks from the
source of the Internet to all homes and businesses.
GROWING THE CLEAN ENERGY ECONOMY
On Tuesday, September 10, 2019, the Subcommittee on Rural
Development, Agriculture, Trade, and Entrepreneurship met for a
hearing titled: ‘‘Growing the Clean Energy Economy.’’ Clean energy
is a driving force in the global economy. This hearing discussed the
importance of clean energy industries across the country, outlined
the challenges and opportunities for advancing energy efficiency
and renewable energy, and examined what Congress can do to sup-
port small business engagement in the clean energy economy.
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Witnesses on the panel included Dr. Lynn Abramson, President,
Clean Energy Business Network, Washington, DC; Mr. Thomas R.
Brooks, General Manager, Western Dubuque Biodiesel, Farley, IA;
Mr. Michael G. Williams, Deputy Director, BlueGreen Alliance,
Washington, DC; and Mr. David J. Spigelmyer, President,
Marcellus Shale Coalition, Pittsburgh, PA.
At the hearing the panel discussed the diverse ways that small
businesses are engaged in the growing clean energy economy. All
of the witnesses discussed the potential for growth in this space
and highlighted the important role that small businesses play. Dr.
Abramson outlined the large number of jobs and small businesses
that are part of the clean energy economy and pointed out specific
policy recommendations that Congress can take toward supporting
the clean energy economy. Mr. Brooks outlined the importance that
biofuels production has in rural America and highlighted the chal-
lenges that American farmers and biofuels producers are dealing
with thanks to the Trump administration’s handling of trade with
China and the Renewable Fuel Standards.
Mr. Williams outlined the important role that American workers
play in energy efficiency and clean energy technology. He high-
lighted that labor and environmental goals can work hand in hand,
to ensure high-skilled jobs in the clean energy economy. Mr. Wil-
liams outlined the importance for an aggressive agenda that sup-
ports American leadership in clean energy innovation and manu-
facturing, through rebuilding American infrastructure. Mr.
Spigelmyer talked about the economic opportunities that fracking
and natural gas extraction have brought to certain parts of rural
America, and the overall boost to the economy that has been
brought about by cheap natural gas available through fracking. All
witnesses agreed that there are economic benefits to supporting a
clean energy economy, and that small businesses play a major role
as employers, manufacturers, and consumers within the clean en-
ergy economy.
SBA PROGRAMS SPURRING INNOVATION
On Thursday September 19, 2019, the Subcommittee on Innova-
tion and Workforce Development held a hearing titled, ‘‘SBA Pro-
grams Spurring Innovation.’’ The hearing examined how SBA’s pro-
grams, such as the Small Business Innovation Research (SBIR),
Small Business Technology Transfer (STTR), and growth accelera-
tors help innovative entrepreneurs, startups, and small businesses
grow and create jobs.
Witnesses included, Ms. Alison Brown, President and CEO,
Navsys Corporation, Colorado Springs, CO, testifying on Behalf of
the Small Business Technology Council (SBTC); Mr. Rohit Shukla,
CEO, Larta Institute, Los Angeles, CA; Mr. Javier Saade, Man-
aging Partner & Venture Partner Impact Master Holdings &
Fenway Summer Ventures, Jackson, WY; and Mr. Ron Shroder,
CEO and President, Frontier Technology, Inc., Beavercreek, OH.
Ms. Brown voiced strong support for the SBIR program. She reit-
erated that the SBIR program was established with the purpose of
strengthening the role of small, innovative firms in federally fund-
ed research and development and remains today one of the few suc-
cessful paths for small businesses to bring innovations into the
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hands of the warfighters. Mr. Shukla testified that the SBIR pro-
gram, known as America’s seed fund was designed so that the fed-
eral government as well as everyday Americans, can reap the bene-
fits of the technologies that their tax dollars have already paid to
develop. He detailed many improvements to the SBIR program that
would make the program work even better. Mr. Saade mentioned
that the American innovation ecosystem is one of our country’s
crown jewels and has been the leading source of economic growth
and productivity for more than half a century. He stressed that the
Growth Accelerator Fund Competition (GAFC) plays a small but
important part in supporting the nation’s innovation ecosystem.
CAN OPPORTUNITY ZONES ADDRESS CONCERNS IN THE SMALL
BUSINESS ECONOMY?
On Thursday, October 17, 2019, the Subcommittee on Economic
Growth, Tax, and Capital Access held a hearing titled: ‘‘Can Oppor-
tunity Zones Address Concerns in the Small Business Economy?’’
The hearing focused on what prospects the Opportunity Zones en-
acted in the Tax Cuts and Jobs Act provide for small businesses
and local economic development.
Witnesses included Mr. Brett Theodos, Senior Fellow, Urban In-
stitute, Washington, D.C.; Mr. Aaron Seybert, Managing Director
of Social Investment Practice, The Kresge Foundation, Troy, MI;
Ms. Jennifer A. Vasiloff, Chief External Affairs Officer, Oppor-
tunity Finance Network, Washington, D.C.; and Mr. John Lettieri,
President and Chief Executive Officer, Economic Innovation Group,
Washington, D.C.
Mr. Theodes testified that legislative and administrative reforms
are needed to ensure the federal government avoids subsidizing
deals that don’t need the support. In particular he mentioned that
reforms are needed to prevent taxpayer forgone revenues from
being used locally in ways that taxpayers find incongruent with
their objectives. Mr. Seybert testified that opportunity funds could
help incentive new investors to enter this market but he remains
concerned that there is a mismatch between the needs of small
business owners and the incentives in place for investors and fund
managers. Ms. Vasiloff testified that that the Opportunity Zone tax
incentive is not a good match for the kind of neighborhood revital-
ization deals of interest to community development financial insti-
tutions, particularly those targeting small businesses. She testified
that her experience, most investors are expecting double digit re-
turns, prefer real estate to small business investments and largely
shun the more challenging geographies that need an infusion of
capital the most.
HARVESTING THE DIGITAL AGE: CONNECTING OUR COMMUNITIES FOR
A BETTER FUTURE
On Monday, October 21, 2019, the Subcommittee on Rural Devel-
opment, Agriculture, Trade, and Entrepreneurship met at Adams
County Agriculture and Natural Resources Center in Gettysburg,
Pennsylvania. The field hearing titled: ‘‘Harvesting the Digital Age:
Connecting our Communities for a Better Future’’ provided an op-
portunity for the subcommittee chair and ranking member to hear
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from community members in rural Pennsylvania about the nega-
tive impacts of lack of broadband access.
Witnesses on the panel included: Mr. Brandon Carson, Director
at the Southern Alleghanies Planning and Development Commis-
sion; Mr. Mike Ross, President of FCADC; Mr. Anthony Angelini,
Teacher at New Oxford Middle School; and Mr. Brock Widerman,
President of Adams County Farm Bureau.
Mr. Widerman discussed the importance of having connectivity
on the farm in order to keep equipment maintained, check on the
health of the farm animals, and to ensure that children of farm
families have access to educational tools and information. Mr.
Angelini very clearly expressed the gaps in educational and per-
sonal achievement between students that have reliable internet ac-
cess and those that do not. He expressed concern for the increased
disparities between those students that are not able to access infor-
mation or download lessons or homework. Both Mr. Ross and Mr.
Carson represent county or multicounty development commissions.
They highlighted the challenges they face when attempting to de-
velop and connect business cites to broadband infrastructure for
rural counties. Mr. Carson also expressed some concern and chal-
lenges around ownership of fiberoptic network cables. Overall, the
desire was expressed to close the digital divide, ensure rural homes
and communities have access to reliable broadband around the
country, and ensure that rural American is on a level digital play-
ing field with the rest of the nation.
NATIVE 8(a) CONTRACTING: EMERGING ISSUES
On Tuesday, October 22, 2019, the Subcommittee on Investiga-
tions, Oversight and Regulations, held a hearing titled: ‘‘Native
8(a) Contracting: Emerging Issues.’’ The hearing provided a full
overview of the 8(a) program as it applies to native 8(a) contrac-
tors, including some of the management weaknesses the Govern-
ment Accountability Office (GAO) identified. The hearing also dis-
cussed the program’s mission and overall performance; enabling
Committee Members to gain valuable insight and assess whether
it is working as intended.
The hearing had two panels. The first panel had one witness: Mr.
Seto Bagdoyan, Director of Forensic Audits and Investigative Serv-
ice, Government Accountability Office, Washington, D.C. The sec-
ond panel had five witnesses: Mr. Joe Valandra, Executive Director
of the Native American Contractors Association, Washington, DC;
Ms. Annette Hamilton, Chief Operating Officer of Ho-Chunk Inc.,
Winnebago, Nebraska; Mr. Edwin A. (Skip) Vincent, Chairman and
Founder of the Hawaii Pacific Foundation, Honolulu, Hawaii, testi-
fying on behalf of the Native Hawaiian Organization Association
(NHOA); Ms. Jana Turvey, President and CEO of Leisnoi, Anchor-
age, Alaska, testifying on behalf of the Alaska Native Village Cor-
poration Association (ANVCA) and Ms. Christine V. Williams,
Managing Partner of Outlook Law LLC, Anchorage, AK.
Mr. Bagdoyan discussed the main findings of three GAO reports
on native 8(a) contracting that were issued between 2006 and 2016.
These reports examine SBA’s oversight of the 8(a) native con-
tracting program and the lack of appropriate controls to deal with
the complexities of the program. In particular, Mr. Bagdoyan de-
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tailed four key weaknesses that undermine SBA’s monitoring and
oversight efforts. These include: (1) incomplete information and
documentation on ANC-owned firms and their compliance with reg-
ulatory requirements; (2) limitations in its ability to track and
share key program data needed to enforce its own program; (3) in-
sufficient staffing in its Alaska District Office to carry out nec-
essary and critical monitoring tasks; and (4) inadequate or vague
program guidance for clearly communicating to staff how to inter-
pret new regulations. Moreover, Mr. Bagdoyan explained that,
while many of the recommendations issued on those reports were
now closed based on SBA’s intent to address them, additional audit
work would be needed to understand the extent to which those rec-
ommendations have been implemented and the potential impact
they have had.
In the second panel, the witnesses—in representation of Indian
tribes, Alaska Native Corporations, Native Hawaiian Organizations
and stakeholders—provided an overview of the program and ex-
plained the benefits it provides to entire communities, which range
from actual dividends to advancing principles of self-sufficiency and
self-determination. Moreover, they explained key differences be-
tween how the program works for them (as group-owned entities)
versus how it applies to individually owned firms. Finally, the
members of the panel presented multiple suggestions on how to im-
prove the program, including excepting 8(a) companies from cat-
egory management and tailoring SBA’s certification system to
make it compatible with the documentation required from native
8(a) entities.
CREATING THE CLEAN ENERGY WORKFORCE
On Tuesday, October 29, 2019, the Subcommittee on Innovation
and Workforce Development met in Room 2360 of Rayburn House
Office Building for a hearing titled: ‘‘Creating the Clean Energy
Workforce.’’ This hearing provided members of the Subcommittee
the opportunity to discuss the workforce challenges faced by clean
and renewable energy companies facing a rapid transition of U.S.
energy sources and rapidly increasing consumer demand. Members
heard from industry leaders, labor unions, and training facility
managers about how to create the workforce necessary to transition
our nation rapidly from fossil fuels to renewable energy.
Witnesses included Mr. Mark Farrar Jackson, Vice President,
Community Housing Partners dba CHP Energy Solutions,
Christiansburg, VA; Mr. Jason L. Wardrip, Business Manager, Col-
orado Building and Construction Trades Council, Aurora, CO; Mr.
Neil James, Vice President of Operations and Maintenance, Apex
Clean Energy, Charlottesville, VA; Mr. Ed Gilliland, Senior Direc-
tor, The Solar Foundation, Washington, D.C.
Mr. Jackson manages a 12,000 sq ft. training facility in Virginia
that trains energy efficiency workers. He testified about the helpful
grant money that was given to low income households to make
their homes more energy efficient. Mr. Wardrip trains construction
workers for his local union and he testified to providing a just tran-
sition for coal workers by retraining them using union apprentice-
ship programs. Neil James testified about the problems that larger
renewable energy companies face attracting and retaining workers
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and laid out some of the ways they are investing in their future
workforce. Ed Gilliland, the author of the solar jobs census pub-
lished by The Solar Foundation, testified about the broader eco-
nomic trends related to renewable energy as well as workforce sta-
tistics.
FOSTERING THE AMERICAN DREAM: HOW SBA CAN EMPOWER
IMMIGRANT SMALL BUSINESS OWNERS
On Friday, November 8, 2019, the Subcommittee on Investiga-
tions, Oversight, and Regulations met at Rosemead City Hall in
Rosemead, California for a field hearing titled: ‘‘Fostering the
American Dream: How SBA Can Empower Immigrant Small Busi-
ness Owners.’’ Members had the opportunity to learn why immi-
grants are more likely to start new businesses but less likely to
have access to traditional sources of capital and Small Business
Administration (SBA) programs that can help immigrant business
owners succeed.
The witnesses for the hearing were: Ms. Rachelle Arizmendi,
Vice-President and Chief Operations Officer, Pacific Asian Consor-
tium in Employment (PACE), Los Angeles, CA; Mr. Donald J.
Loewel, MBA, Director, Small Business Development Center, Pasa-
dena City College, Pasadena, CA; Ms. Tatiana Bonilla, President,
Andrew Design Group, Inc., Pasadena, CA; and Mr. Amir Salahi,
Founder and CEO, Energy Advisor Hub, Pasadena, CA.
The witnesses testified that increasing awareness of SBA’s pro-
grams is the number one opportunity to make a greater impact on
small business success. In addition, witnesses also testified that ad-
ditional support for multilingual SBA advisors would greatly ben-
efit the ability to interact with small business owners whose pri-
mary language is not English. Lastly, witnesses testified that
leveraging community-based organizations and Community Devel-
opment Financial Institutions (CDFIs) that have built trust within
their communities in imperative to the continued success of SBA’s
Community Advantage and Microloan programs.
ASSESSING THE GOVERNMENT’S ROLE IN SERVING RURAL AMERICAN
SMALL BUSINESSES (PART ONE)
On Thursday, November 14, 2019, the Subcommittee on Rural
Affairs, Agriculture, Trade, and Entrepreneurship in Room 2360 of
the Rayburn House Office Building held a hearing titled: ‘‘Assess-
ing the Government’s Role in Serving Rural American Small Busi-
nesses (Part One).’’
The witnesses for the hearing were Ms. Bette Brand, Adminis-
trator, United States Department of Agriculture, Rural Business-
Cooperative Service; and Ms. Michelle Christian, Director of Rural
Affairs, Small Business Administration.
At the hearing the witnesses testified about the wide variety of
federal programs at USDA and SBA that support rural small busi-
nesses. Administrator Brand discussed several programs and out-
lined how USDA partners with rural businesses and service pro-
viders to support financial assistance and business development in
rural areas. Administrator Brand also mentioned the importance of
cooperative businesses that provide a wide variety of important
services in rural communities. Ms. Christian outlined her role in
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coordinating with SBA district offices and other federal agencies to
assist rural communities and entrepreneurs with access to small
business resources. Both witnesses also discussed the Memo-
randum of Understanding that has signed in 2018 with the goals
of strengthening rural businesses and agricultural economies
through increased coordination between USDA and SBA.
SMART CONSTRUCTION: INCREASING OPPORTUNITIES FOR SMALL
BUSINESSES IN INFRASTRUCTURE
On Tuesday, November 19, 2019, the Subcommittee on Con-
tracting and Infrastructure met for a hearing titled: ‘‘Smart Con-
struction: Increasing Opportunities for Small Businesses in Infra-
structure.’’ The hearing allowed Members of the Committee to ex-
plore new developments in smart construction technology and op-
portunities for small businesses to play a major role in improving
America’s infrastructure.
Witnesses included, Mr. Lennart Anderssen, RA, Director of Vir-
tual Design, Construction & Operations (VDCO)/Professor, LiRo
Group/Pratt Institute, Irvington, NY; Mr. Ryan Forrestel, Presi-
dent, Cold Springs Construction, Akron, NY; Mr. Chris Shepard,
Vice President, Construction Solutions Group, Trimble, Inc., Day-
ton, OH; and Mr. Phillip Ogilby, CEO and Co- Founder, STACK
Construction Technologies, Cincinnati, OH.
Mr. Anderssen testified that all phases of construction are poised
to change and evolve in the coming years, incorporating traditional
tools of the trade and new technologies that could transform the
way projects are completed. Mr. Forrestel testified that due to com-
petitive contracting environment, precision technologies allow his
business to remain competitive against bigger contractors. Mr.
Shephard stated that the construction industry is ripe for innova-
tion. Mr. Shephard went on to testify that technology is trans-
forming construct roads, bridges, and airports through the optimi-
zation of the entire construction lifecycle: planning, design, con-
struction and operation. His company’s experience in the construc-
tion industry has taught him that ineffective communication, plan-
ning and collaboration are causing the most problems and driving
project costs. As a result, he mentioned that digital construction
technologies are so important for small businesses because it en-
ables small businesses to better manage their costs, schedules and
resources.
INNOVATIONS IN THE SCHOOL TO SMALL BUSINESS PIPELINE
On Friday, November 22, 2019, the Subcommittee on Innovation
and Workforce Development met at the Cherry Creek Innovation
Campus in Aurora Colorado for a field hearing titled: ‘‘Innovations
in the School to Small Business Pipeline.’’ This hearing gave mem-
bers the opportunity to learn about the innovative approaches that
local schools in Colorado are taking to combat the labor shortage
in a number of in-demand skill areas. By partnering with the pri-
vate sector, Cherry Creek constructed a brand-new facility that of-
fers a total of 7 career pathways that are meant to train high
school students to be work-ready upon graduation.
Witnesses included Ms. Sarah LC Grobbel, Assistant Super-
intendent, Career & Innovation, Cherry Creek Schools, Aurora, CO;
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Mr. Noel Ginsburg, Founder & CEO, CareerWise Colorado, Denver,
CO; Mr. Matthew Kaplan, Vice President, Business Development
and Membership, Outdoor Industry Association, Boulder, CO; Tes-
tifying on behalf of Outdoor Industry Association. Mr. Garry
Edmonson, Program Administrator, Colorado Journeyman & Ap-
prentice Program IUOE Local 9, Aurora, CO.
Ms. Grobbel testified about the progress made on the innovation
campus on which the hearing was held and how important it is to
train high school students for 21st century jobs. Mr. Ginsburg testi-
fied about the CareerWise Colorado statewide apprenticeship pro-
gram for high school students that prepares them for a number of
different paths, while providing classroom learning, on-the-job
training and fair pay. Matthew Kaplan provided testimony to about
ways the outdoor industry is training the next generation of work-
ers through internships and job training programs. Mr. Edmonson
testified about the possibilities for workers trained through their
local unions and how it can provide meaningful, in-demand skills
that produce a quality job and dignified life.
REVIEW OF THE SBA’S 504/CDC LOAN PROGRAM
On Tuesday, December 10, 2019, the Subcommittee on Investiga-
tions, Oversight, & Regulations held a hearing titled: ‘‘Review of
the SBA’s 504/CDC Loan Program.’’ The hearing enabled the Com-
mittee to learn about the 504/CDC loan program as one that is de-
signed to enhance access to capital for small businesses seeking fi-
nancing for major fixed assets such as land, buildings, equipment,
and machinery. Members also learned about the nonprofit Certified
Development Companies (CDCs) who deliver the 504 loan product
(and in some cases, other SBA loan products), and the role they
play in creating jobs in their local communities. The hearing ex-
plored the current administrative challenges facing the program
and its industry participants.
Witnesses on the panel were: Ms. Mary Mansfield, President &
CEO, Bay Colony Development Corp., Waltham, MA; Mr. Wayne
Williams, Senior Vice President, Business Finance Group Inc.,
Fairfax, VA; Ms. Elaine Fairman, Executive Director, Business Ex-
pansion Funding Corp., Charlotte, NC; and Ms. Brooke Mirenda,
President & CEO, Sunshine State Economic Development Corp.,
Clearwater, FL.
Ms. Mansfield testified regarding the complex and lengthy clos-
ing process for 504 loans, arguing that CDCs who have dem-
onstrated reliability and quality when working with borrowers
should be able to make certain de minimis changes to closing docu-
ments with their own authority. She also testified that numerous
SBA district offices routinely require different documents for clos-
ing a 504 loan, which can complicate and further lengthen the clos-
ing process. Mr. Williams testified regarding the challenges posed
by current owner occupancy requirements, which limit the ability
of small businesses to use the 504 program to finance the purchase
of multi-story buildings. Ms. Fairman testified regarding the rules
governing Eligible Passive Company/Operating Company (EPC/OC)
procedures and transactions, arguing that they have not been up-
dated to reflect current common business practices. Ms. Mirenda
testified regarding the 504 loan refinance program, and the chal-
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lenges some borrowers of government loan products face in being
unable to refinance that other government loan with a 504 loan.
Ms. Mirenda argued that other non-504 government loans should
be eligible for refinancing with a 504 loan.
SECOND SESSION OF THE 116TH CONGRESS
FARMING IN THE 21ST CENTURY: THE IMPACTS OF AGRICULTURE
TECHNOLOGY IN RURAL AMERICA
On Thursday, January 9, 2020, the Subcommittee on Innovation
and Workforce Development held a hearing titled: ‘‘Farming in the
21st Century: The Impacts of Agriculture Technology in Rural
America.’’ This hearing gave Members the opportunity to hear from
experts in the agricultural technology (ag tech) industry, farmers
that are leveraging technology to be more sustainable and profit-
able, and startups in the ag tech field.
The witnesses were: Mr. Kevin France, President and CEO,
SWIIM Systems, Denver, Colorado; Dr. David Potere, Head of
GeoInnovation, Indigo Agriculture, Boston, Massachusetts; Mr. Ro-
berto Meza, Co-founder and Farmer, Emerald Gardens, Bennett,
Colorado who was testifying on behalf of the Rocky Mountain
Farmers Union; and Dr. Douglas Jackson-Smith, Assistant Direc-
tor, School of Environmental Resources, The Ohio State University,
Wooster, Ohio.
Witnesses outlined the many agriculture advancements that ag
tech has brought to our food systems and discussed the importance
of rural broadband access. Mr. France outlined the importance of
research and development to support small businesses in ag and ag
tech sectors, and his small business has received support of both
USDA and land grant universities. Dr. Potere outlined the numer-
ous small businesses that are vital to our agricultural supply
chains, and how technology and innovation has helped advance
food and agricultural systems. Dr. Potere also highlighted the im-
portance of ag tech to help agriculture be more economically viable
and resource efficient, including addressing carbon sequestration
and climate change. As a farmer, Mr. Meza has first-hand experi-
ence integrating ag-tech into his operation and outlined both the
environmental benefits of ag tech as well as some of the challenges
and barriers that farmers can face in bringing on new and some-
times expensive technology into their operations. Dr. Jackson-
Smith discussed the structural challenges that small businesses
face, and the benefits that innovation and technological advance-
ments have brought to diversified agricultural systems.
TAKING CARE OF BUSINESS: HOW CHILDCARE IS IMPORTANT FOR
REGIONAL ECONOMIES
On Thursday, February 6, 2020, the Subcommittee on Rural De-
velopment, Agriculture, Trade, and Entrepreneurship held hearing
titled: ‘‘Taking Care of Business: How Childcare is Important for
Regional Economies.’’ The hearing gave members the opportunity
to hear from experts about the economic impacts of childcare acces-
sibility on small firms, their employees with a particular focus on
the impact in rural economies.
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Witnesses included: Ms. Cindy Cisneros, Vice President for Edu-
cation Programs at the Committee for Economic Development of
the Conference Board (CED), Arlington, Virginia; Mr. Dan Levi,
President of Levi Architecture, PLC., Cedar Falls, Iowa who testi-
fied on behalf of the Black Hawk Child Care Coalition; Ms. Sarah
Piepenburg, Owner of Vinaigrette, Minneapolis, Minnesota who
testified on behalf of Main Street Alliance; and Dr. Veronique de
Rugy, Senior Research Fellow at the Mercatus Center, George
Mason University, Arlington, Virginia.
Witnesses all discussed how childcare is a necessity for American
families, communities, and small businesses. They outlined how
lack of affordable childcare impacts labor force participation, but
also inhibits regional and local economic growth. Ms. Cisneros pro-
vided a detailed analysis of the economics of childcare, discussing
how the industry has robust direct and indirect economic impacts.
She presented information on the clear connection between access
to affordable, reliable child-care and increased labor force participa-
tion and economic growth in regional economies. Mr. Levi provided
a first-hand account of the challenges small business owners face
when confronted with lack of childcare opportunities in their com-
munities, and the steps that communities are trying to take to es-
tablish adequate childcare. Ms. Piepenburg discussed the econom-
ics of childcare from her prospective as a mother and small busi-
ness owner. She discussed the challenges that her and her employ-
ees had in paying for childcare, and the sacrifices they had to make
in order to ensure adequate care for their children. Dr. de Rugy
discussed the licensing requirements of childcare, and the regula-
tions and other factors that have impacted costs of childcare.
THE INNOVATION PIPELINE: FROM UNIVERSITIES TO SMALL
BUSINESSES
On Tuesday, February 11, 2020, the Subcommittee on Innovation
and Workforce Development met for a hearing titled: ‘‘The Innova-
tion Pipeline: From Universities to Small Businesses.’’ During the
hearing, Members heard from technology transfer experts about
the importance of federally funded research for application in the
private sector and the link between the federal government, U.S.
educational institutions, and the development of businesses and job
creation.
The panelists were: Dr. John Younger, MD, Vice President of
Science & Technology, University City Science Center, Philadel-
phia, PA; Dr. Sheila Martin, PhD, Vice President, Economic Devel-
opment and Community Engagement, Association of Publican and
Land-grant Universities, Washington, DC.; Dr. Ethan Mann, PhD,
Vice President of Marketing and Business Development, Sharklet
Technologies, Inc., Aurora, CO; and Dr. Gregory P. Crawford, PhD,
President, Miami University, Oxford OH.
Dr. Younger testified about the challenges small firms face when
commercializing new technology created in University labs, particu-
larly in pharmaceuticals technology. He emphasized some of the
bottlenecks in the SBIR and STTR programs and recommended
streamlining guidance. Dr. Martin testified about the importance of
the public and land grant university system in creating technology
and entrepreneurial talent that allows local economies to grow. Dr.
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Mann testified about his own experience, bringing sharklet tech-
nology, a medical device company that uses biomimicry for its prod-
ucts, from university labs to the market. Dr. Crawford echoed the
sentiments of Dr. Martin, but expanded upon the accomplishments
of his own school, Miami University, in prioritizing entrepreneur-
ship and technology transfer.
MOVING AMERICA’S INFRASTRUCTURE FORWARD
On Thursday, February 27, 2020, the Subcommittee on Con-
tracting and Infrastructure held a hearing titled: ‘‘Moving Amer-
ica’s Infrastructure Forward.’’ The hearing focused on how to make
small business a priority as Congress explores ways to improve the
nation’s infrastructure networks. The hearing provided an oppor-
tunity for members to hear from a variety of witnesses regarding
the importance of updating our nation’s infrastructure, while dis-
cussing the opportunities and challenges that exist for small busi-
nesses.
The witnesses for the hearing were: Ms. Lynn Frazier, Director
and Senior Transportation Engineer for James W. Sewall Com-
pany; Ms. Lisa Jacobson, President of the Business Council for Sus-
tainable Energy; Mr. Mike Saperstein, Vice President of Strategic
Initiatives and Partnerships for USTelecom—The Broadband Asso-
ciation; and Mr. Todd Rothe, President of J.R. Jensen Construction
Company.
The witnesses testified how the nation’s infrastructure has not
kept up with our economy, our communities, and how further in-
vestments in infrastructure are needed. Ms. Lynn Frazier provided
information about the American Society of Civil Engineers’ esti-
mate that America’s infrastructure would need an additional in-
vestment of $4.6 trillion in order repair the nation’s broken infra-
structure system. Additionally, the witnesses emphasized how the
House Transportation and Infrastructure Committee’s Moving For-
ward Framework will help local economies, small businesses, and
our nation as a whole. Ms. Lisa Jacobsen testified that improve-
ments in infrastructure would improve the nation’s economic com-
petitiveness and how infrastructure investment has the potential to
create tens of thousands of jobs. Finally, Mr. Saperstein testified
that an investment in infrastructure—particularly in an invest-
ment in rural broadband—would greatly benefit America’s small
businesses.
SOUTH DAKOTA V. WAYFAIR, INC.: ONLINE SALES TAXES AND THEIR
IMPACT ON MAIN STREET
On Tuesday, March 3, 2020, the Subcommittee on Economic
Growth, Tax, and Capital Access held a hearing titled: ‘‘South Da-
kota v. Wayfair, Inc.: Online Sales Taxes and their Impact on Main
Street.’’ The hearing focused on the impact to small businesses as
a result of the U.S. Supreme Court’s decision in South Dakota v.
Wayfair. In Wayfair, the Court overturned a previous ruling where
it determined that states could only collect sales tax from busi-
nesses that had brick and mortar locations in those states.
The witnesses for the hearing were: Mr. Jamie Yesnowitz, Prin-
cipal at Grant Thornton, LLP; Mrs. Linda Lester, Vice President of
K Log, Inc.; Mr. Kevin Mahoney, President and Founder of
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FindTape.com; and Mr. Brad Scott, Financial Director of Halstead
Bead, Inc.
Mr. Jamie Yesnowitz testified that the Wayfair decision has re-
sulted in a web of inconsistent, complicated, and burdensome state
and local sales and income tax requirements across the country—
especially for the nation’s smallest businesses. Mrs. Linda Lester
testified that following the Wayfair decision her company went
from filing a return in just one state (Illinois) to filing in 42 states,
at a cost of approximately $78,722. Mr. Scott testified that he has
spent $27,900 to implement software to meet his requirement to
file with 51 separate states and territories.
Additionally, the witnesses testified about the unintended con-
sequences of the Wayfair decision. Mr. Mahoney testified that his
two-person company that sold tape on Amazon was audited by the
state of Washington because his product was trans-shipped through
the state. Mr. Scott testified that the state of Wyoming threatened
a lien on his property for a tax assessment of $100 for December
2018, for a failure to file a $0.00 return.
AN OVERVIEW OF THE DYNAMIC BETWEEN THE DEFENSE PRODUCTION
ACT AND SMALL CONTRACTORS
On Wednesday, June 24, 2020, the Subcommittee on Contracting
and Infrastructure held a remote hearing titled: ‘‘An Overview of
the Dynamic Between the Defense Production Act and Small Con-
tractors.’’ The hearing provided an overview of the Defense Produc-
tion Act (DPA) and its authorities, including those that relate to
small businesses. It also examined how those authorities could be
leveraged to assist small firms affected by the COVID–19 pandemic
and what legislative actions could be taken to strengthen the DPA
on behalf of our small business industrial base.
The witnesses for the hearing were: Mr. Ian Patterson, Senior
Associate, Koprince Law, Lawrence, KS; Mr. David Black, Partner,
Holland & Knight, Tysons, VA; Ms. Mary Lockhart, President &
CEO, PEMDAS Technologies & Innovations, Alexandria, VA, testi-
fying on behalf of the National Defense Industrial Association
(NDIA) Small Business Division; and Ms. Traci Tapani, Co-Presi-
dent, Wyoming Machine, Inc., Stacy, MN.
Mr. Patterson expressed that, while the DPA confers preferential
treatment to small businesses in all of its authorities, it does not
provide any further instruction as to how small business participa-
tion should be accomplished. Thus, he emphasized on the need for
data to evaluate the use of small businesses in the DPA. Similarly,
Mr. Black expressed that DPA small business provisions were ei-
ther not being followed or underutilized and agreed on the need for
data collection. Moreover, he provided multiple recommendations to
ensure these provisions work cohesively, such as: establishing pro-
cedures to apply the Title III small business preference, estab-
lishing a small business advisory subcommittee that includes small
business concerns, and requiring information on how agencies are
making information about DPA activities available to small busi-
nesses, as required in statute. Finally, Ms. Lockhart stressed the
importance of maximizing small business participation in DPA
Title III authorities, while Ms. Tapani focused on small businesses
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willingness and ability to mobilize to address the needs of the
COVID–19 pandemic.
SUPPLY CHAIN RESILIENCY
On Thursday, July 2, 2020, the Subcommittee on Economic
Growth, Tax, and Capital Access met for a hybrid hearing titled:
‘‘Supply Chain Resiliency.’’ During the hearing, Members heard
from economists, supply chain experts, and small business owners
about the effects of the COVID–19 pandemic on world supply
chains and particularly how it hurt small firms, and explored ways
we can strengthen our supply chains as we rebuild to prepare for
the next disaster.
The panelists were: Dr. Eswar Prasad, Ph.D., Professor of Trade
Policy, Cornell University, Senior Fellow, Brookings Institution,
Ithaca, NY; Ms. Christine Fagnani, Co-Owner and Vice President
of Lynn Medical Instrumentation Company, Wixom, MI; Mr. David
Billstrom, CEO, Kitsbow Cycling Apparel, Old Fort, NC; Ms. Sheila
Lawson, Chief Operations Officer and Vice President of Supply
Chain, RL Hudson, Broken Arrow, OK.
Dr. Prasad testified about the different effects of certain steps
taken by firms and governments to strengthen supply chains, and
clearly laid out the upsides and downsides of taking these steps.
For instance, emphasizing that making supply chains less linear
and specialized would avoid disruption if there is a disaster, but
would also cut down on the efficiency of those supply chains, there-
fore causing hire prices and longer wait times. Ms. Fagnani ex-
plained the early effects of the COVID–19 pandemic on the medical
supply chains, and the steps her company took to ameliorate the
problems caused by global supply chain disruptions by sourcing
PPE from small firms in the U.S. Mr. Billstrom testified about the
steps his company took prior to the pandemic to become more resil-
ient, and how those steps allowed him to quickly shift operations
to manufacture PPE early in March, and almost double his staff by
the middle of June. Ms. Lawson explained the problems in the
heavy machinery and rubber supply chains, how the pandemic af-
fected her company, and the steps they took to get back on track.
PUTTING AMERICA BACK TO WORK: THE ROLE OF WORKFORCE
DEVELOPMENT AND SMALL BUSINESS REHIRING
On Thursday, July 16, 2020, the Committee Subcommittee on In-
novation and Workforce Development held a remote hearing titled:
‘‘Putting America Back to Work: The Role of Workforce Develop-
ment and Small Business Rehiring.’’ During the hearing, members
heard from workforce development policy experts, workforce board
chairs, a community college president, and a small business owner
about ways we can retrain many unemployed workers in the U.S.
right now to get the economy back on track and speed up hiring
during the recovery.
The panelists were: Dr. Demetra Smith Nightingale, Institute
Fellow, Urban Institute, Washington D.C.; Ms. Kelly Folks, Work-
force Director, Arapahoe/Douglas Workforce Center, Centennial,
CO; Dr. Joe Schaffer, President, Laramie County Community Col-
lege, Cheyenne, WY; and Ms. Kelly Moore, Vice President, GKM
Auto Parts, Inc., Zanesville, OH.
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As a former DOL employee during the Obama Administration,
Dr. Nightingale testified about the lessons they learned during the
last recovery, particularly the importance of avoiding long-term un-
employment for those that lose their job during the pandemic. Ms.
Folks testified about the needs of local workforce boards, who are
not only overwhelmed handling UI, but also inundated with newly
unemployed workers who need retraining to find another job. Dr.
Schaffer testified about the importance of community colleges not
only for training workers, but for creating a new generation of
workers that will revitalize places in rural America and help grow
the economies of small towns that have suffered as their children
move to cities. Ms. Moore testified about the struggle of hiring
qualified employees, even when the pool of people looking for jobs
is large, and the resources they must dedicate to train new ones.
21ST CENTURY SBA: AN ANALYSIS OF SBA’S TECHNOLOGY SYSTEMS
On Wednesday, July 22, 2020, the Subcommittee on Investiga-
tions, Oversight, and Regulations held a hybrid hearing titled:
‘‘21st Century SBA: An Analysis of SBA’s Technology Systems.’’
The purpose of the hearing was to review the SBA’s modernization
efforts of its IT infrastructure and technology systems and how
these systems performed during the coronavirus pandemic. The
hearing allowed members to examine the SBA’s IT organizational
structure and its response to the technological issues that bor-
rowers and lenders faced when applying for the economic relief pro-
grams.
The sole witness for the hearing was Mr. Guy Cavallo, the Chief
Information Officer of the Small Business Administration.
Mr. Cavallo testified that over the past three years the SBA has
focused on building the foundation to deliver IT modernization
across the organization. He said that they upgraded the network
infrastructure connecting all SBA offices and began the transition
to the cloud, however, he testified that data is still siloed between
offices. Mr. Cavallo testified that the SBA plans to replace its leg-
acy loan processing system, E-Tran, but that it could take several
years. He also shared that SBA launched six new cloud-based sys-
tem to support the high demand during the coronavirus pandemic
and shed light on the data ‘‘exposure’’ incident. He testified that
the exposure (he stated that it was not a data breach) occurred due
to a system glitch that was quickly corrected.
KICK STARTING ENTREPRENEURSHIP AND MAIN STREET ECONOMIC
RECOVERY
On Thursday, September 10, 2020, the Subcommittee on Rural
Development, Agriculture, Trade, and Entrepreneurship met for a
remote hearing entitled ‘‘Kick Starting Entrepreneurship and Main
Street Economic Recovery.’’ The hearing focused on why the
COVID–19 pandemic has presented unique challenges for rural
economies. It also focused on what worked and did not work to en-
courage rural development and entrepreneurship during and after
the Great Recession and how these lessons can be applied to the
current COVID–19 crisis.
The witnesses for the hearing were: Mr. Chad Nath, Executive
Director LINK Grinnell; Mr. Jeremy Ketelsen, Vice President
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Ketelsen RV; Mr. Mark Rembert, Head of the Rural Innovation
Network at the Center on Rural Innovation; and Mr. Jason Duff
Founder Small Nation.
The witnesses testified about the challenges each of their busi-
nesses have faced during the COVID–19 pandemic. Specifically,
Mr. Nath testified how LINK adapted to the COVID–19 pandemic
by pivoting from an aftercare program to a program that provided
care for essential worker’s children. While Mr. Ketelsen discussed
how inventory shortages faced by his business has made staying
open and staying profitable difficult. Mr. Rembert testified that the
economic realities in rural America that were exposed during the
Great Recession, has intensified during the COVID–19 pandemic.
Specifically, he discussed how lack of rural broadband has held
rural communities back from gains in economic development and
entrepreneurship.
SBA MANAGEMENT REVIEW: OFFICE OF GOVERNMENT CONTRACTING
AND BUSINESS DEVELOPMENT
On Tuesday, September 15, 2020, the Subcommittee on Con-
tracting and Infrastructure held a hybrid hearing titled: ‘‘SBA
Management Review: Office of Government Contracting and Busi-
ness Development.’’ The focus of the hearing was the operations of
SBA’s Office of Government Contracting and Business Develop-
ment (GCBD), which assists small businesses that participate in
the federal procurement space by administering SBA’s business de-
velopment and contracting programs.
The sole witness for this hearing was Dr. Francis Spampinato,
Associate Administrator of the Office of Government Contracting
and Business Development, U.S. Small Business Administration,
Washington, D.C.
Dr. Spampinato highlighted that $132 billion was awarded to
small businesses in fiscal year 2019. Despite this success, Dr.
Spampinato explained that COVID–19 has resulted in significant
challenges to small businesses, and that is why the Office has im-
plemented measures such as posting guidance for small business
contractors, introducing flexibilities in 8(a) and HUBZone program
participation and conducting a robust outreach to small businesses
to connect them with Federal agencies in need of products and
services to combat COVID–19. Moreover, Dr. Spampinato acknowl-
edged the decreasing number of firms that are involved in federal
contracting and receiving prime contract awards, which has
prompted engagements with Federal agencies, small business lead-
ers and senior acquisition officers to understand why this is hap-
pening and how to address the situation. He also stressed on the
importance of conducting research and obtaining data to under-
stand the impacts of Category Management and the Cybersecurity
Maturity Model Certification initiative (CMMC) on the small busi-
ness base, as well as what can be done in the area of subcon-
tracting to address this issue.
To questions from Committee Members, Dr. Spampinato recog-
nized that the HUBZone prime contracting goal was not met in fis-
cal year 2019. However, he affirmed there has been an increase in
HUBZone awards in the past years and that SBA has a HUBZone
plan underway—composed in part by statutory changes to the pro-
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gram and targeted outreach—to meet and surpass the HUBZone
prime contracting goal. Moreover, he expressed his commitment to
getting a new IT system in place to serve the contracting programs
and his interest in providing an additional focus on subcontracting
to meet the small business set-aside subcontracting goals.
PAYCHECK PROTECTION PROGRAM: AN EXAMINATION OF LOAN
FORGIVENESS, SBA LEGACY SYSTEMS, AND INACCURATE DATA
On Thursday, September 24, 2020, the Subcommittee on Innova-
tion and Workforce Development held a hybrid hearing titled: ‘‘Pay-
check Protection Program: An Examination of Loan Forgiveness,
SBA Legacy Systems, and Inaccurate Data.’’ The purpose of the
hearing was to review the Paycheck Protection Program from a
technical perspective. SBA’s legacy technology systems were not
fully equipped to handle the unprecedented level of applicants, re-
sulting in a number of technical issues with the implementation.
The hearing allowed members the opportunity to address these
issues and the related concerns about the accuracy of the recently
released PPP data, as well as learn more about SBA’s new system
for PPP forgiveness.
The witness for the hearing was Mr. William Manger, the Chief
of Staff of the SBA and the Associate Administrator of the Office
of Capitol Access at the Small Business Administration.
Mr. Manger testified that OCA has issued public guidance and
continues to refine processes and requirements for loan forgiveness,
loan reviews, guaranty purchases, and related activities under Sec-
tion 1106 of the CARES Act. He also testified that the SBA has not
approved any forgiveness applications as of September 24, 2020. In
terms of data accuracy, Mr. Manger stated that PPP loan data re-
flects the information submitted by lenders to the SBA for PPP
loans and that between the data releases, SBA made significant ef-
forts and worked with lenders to improve the accuracy of the loan-
level data, including the improvement of congressional district loan
data.
A REVIEW OF PPP FORGIVENESS
On Friday, September 25, 2020, the Subcommittee on Economic
Growth, Tax, & Capital Access met for a hybrid hearing titled: ‘‘A
Review of PPP Forgiveness.’’ During the hearing, Committee Mem-
bers learned about the current state of PPP forgiveness from bor-
rowers’ and lenders’ perspectives. Members heard primarily from
PPP borrowers who reported serious concerns with the length and
complexity of the PPP forgiveness applications, especially the docu-
ments required to be able to properly and accurately report all the
requested information. Members also heard from a 7(a) lender who
reported concerns of lenders, specifically the lack of clarity with re-
gard to the lender’s role in the forgiveness process.
The witnesses were: Ms. Lynn Ozer, President of SBA Lending,
Fulton Bank, Pottstown, PA; Ms. Amy Bonfig, Owner, Little Saints
Academy, St. Joseph, MN; Mr. Jim Parker; CEO & Director, River-
view Studios, Bordentown, NJ; and Mr. Pete Patel, President &
CEO, Promise Hotels, Tulsa, OK.
Ms. Ozer testified on concerns shared by PPP lenders across the
country, including a lack of clarity from SBA/Treasury on the lend-
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er’s role in the PPP forgiveness process. According to Ms. Ozer, the
lending community never envisioned being responsible for verifying
the accuracy of borrowers’ forgiveness applications and their ac-
companying documentation. Ms. Bonfig testified from the perspec-
tive of a PPP borrower who had completed the lengthier PPP for-
giveness application and reported the significant burdens associ-
ated with completing all parts of the application, especially the em-
ployee counts at various times during the 8-week vs. 24-week peri-
ods. Mr. Parker testified about his perspective on PPP forgiveness
as a microbusiness and reported concerns that other rules were put
in place following the enactment of the CARES act about spending
PPP loan proceeds on fixed costs. Mr. Patel testified as a hotel
owner regarding the unique challenges his travel-dependent busi-
ness is facing in the midst of the COVID–19 pandemic. He urged
Congress to expand access to the Main Street Lending Program for
asset- based businesses such as hotels.
PREVENTING FRAUD AND ABUSE OF PPP AND EIDL: AN UPDATE WITH
THE SBA OFFICE OF INSPECTOR GENERAL AND THE GOVERNMENT
ACCOUNTABILITY OFFICE
On Thursday, October 1, 2020, the Subcommittee on Investiga-
tions, Oversight, and Regulations met for a hybrid hearing titled:
‘‘Preventing Fraud and Abuse of PPP and EIDL: An Update with
the SBA Office of Inspector General and the Government Account-
ability Office.’’ During the hearing, Committee Members heard
from the Small Business Administration’s (SBA) Inspector General
(IG) and the Government Accountability Office (GAO) about their
recent reports detailing fraud, and the potential for fraud, in the
Paycheck Protection Program (PPP) and Economic Injury Disaster
Loan (EIDL) program.
The witnesses were: Mr. Hannibal ‘‘Mike’’ Ware, Inspector Gen-
eral, Office of the Inspector General (OIG), SBA; and, Mr. William
Shear, Director, Financial Markets and Community Investment,
GAO.
Inspector General Ware testified about the OIG’s July 28 Man-
agement Report, detailing instances of fraud found in the EIDL
program and the potential for further fraud due to SBA’s lack of
internal controls. Mr. Shear testified about the GAO’s August and
September reports on the federal response to the COVID–19 pan-
demic. Mr. Shear focused on the SBA components of the pandemic
response and supported the IG’s findings that there is a high po-
tential for fraud in the PPP and EIDL programs. In addition, Mr.
Shear testified that SBA has not provided the necessary EIDL in-
ternal data and documents for GAO to complete their audit objec-
tives.
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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 2019 and early 2020, prior the COVID–19 pandemic, nu-
merous SBA officials, industry representatives and small business
owners were questioned about the operation of SBA programs:
• A Committee hearing on the federal government shutdown
of 2018–2019 was conducted on February 6, 2019.
• A series of management review hearings with SBA Asso-
ciate Administrators, officers, or directors was conducted on
February 26, 2019, April 10, 2019, April 30, 2019, July 11,
2019, September 26, 2019, November 14, 2019, January 29,
2020, and February 5, 2020. The GAO testified about reports
they issued at the hearings on April 30, 2019, and May 16,
2019. The SBA OIG testified about a report they issued at the
hearings on July 11, 2019.
• Hearings on SBA’s State Trade Expansion Program
(STEP) were held on March 12, 2019 and June 11, 2019. The
GAO and SBA OIG testified at the March 12, 2019 hearing on
their respective reports on STEP.
• Hearings on SBA’s Office of Rural Affairs were held on
March 12, 2019 and November 14, 2019.
• A Committee hearing on SBA’s disaster loan program was
held on July 19, 2019.
• A Committee hearing on the SBA Office of Inspector Gen-
eral’s Report on the ‘‘Most Serious Management Challenges
Facing the Agency’’ was conducted on October 16, 2019.
• A Committee hearing on the SBIR and STTR programs
was held on February 11, 2020.
• A Committee hearing with Administrator Jovita Carranza
on the Agency’s FY2021 budget justification was conducted on
February 26, 2020.
Starting in May 2020, after COVID–19 became a national pan-
demic, the Committee held numerous virtual forums and hearings
on SBA’s implementation of emergency response legislation and
programs, notably those that were created under the CARES Act.
• A Committee hearing on SBA’s COVID–19 Economic In-
jury Disaster Loan (EIDL) and Advance programs was held on
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July 1, 2020. The SBA Associate Administrator for the Office
of Disaster Assistance (ODA) was the sole witness.
• A Committee hearing on the federal government’s small
business stimulus programs was conducted on July 20, 2020.
SBA Administrator Jovita Carranza and Treasury Secretary
Steve Mnuchin both testified.
• A Committee hearing on SBA’s Information Technology
Systems and COVID–19 programs was held on July 22, 2020.
The SBA Chief Information Officer (CIO) was the sole witness.
• A Committee hearing on contracting was conducted on
September 15, 2020. The Associate Administrator of Govern-
ment Contracting and Business Development (GCBC) was the
sole witness.
• A Committee hearing on the Paycheck Protection Program
was conducted on September 24, 2020. The Associate Adminis-
trator of the Office of Capital Access (OCA) was the sole wit-
ness.
• A Committee hearing on PPP and EIDL was held on Octo-
ber 1, 2020. The GAO and OIG both testified on reports they
issued and were the only witnesses.
HEARINGS ON SBA FINANCIAL ASSISTANCE PROGRAMS
In the 116th Congress, the Committee continued its focus on
SBA’s capital access programs. During 2019 and early 2020, prior
the COVID–19 pandemic, numerous SBA officials, industry rep-
resentatives and small business owners were questioned regarding
frequent concerns about the struggle for small businesses to access
capital to fund their operations.
• Hearings were held on SBA’s capital access programs on
March 7, 2019, April 10, 2019, May 21, 2019, June 26, 2019,
September 26, 2019, October 17, 2019, December 10, 2019,
February 5, 2020, and February 12, 2020.
Beginning in May 2020, the Committee held numerous virtual fo-
rums and hearings on SBA’s implementation of the Paycheck Pro-
tection Program and EIDL Advance program, created by the
CARES Act, and the underlying EIDL program.
• Hearings were held on SBA’s COVID–19 related capital
access programs on June 10, 2020, June 17, 2020, July 15,
2020, September 24, 2020, September 25, 2020, and October 1,
2020.
• A virtual forum with the SBA OIG was held on May 15,
2020.
• Virtual forums were held on SBA’s COVID–19 related cap-
ital access programs May 13, 2020, and May 20, 2020.
HEARINGS ON FEDERAL PROCUREMENT
During the 116th Congress, the Committee continued to examine
federal procurement rules as they affect small businesses.
• Hearings were held on SBA’s federal contracting programs
on March 26, 2019, May 16, 2019, July 16, 2019, August 1,
2019, September 18, 2019, October 22, 2019, and Sept 15,
2020. The GAO testified about a report they issued at the
hearing on October 22, 2019.
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HEARINGS ON SBA ENTREPRENEURIAL DEVELOPMENT PROGRAMS
During the 116th Congress, the Committee continued to examine
SBA’s Entrepreneurial Development programs. During 2019 and
early 2020, prior the COVID–19 pandemic, numerous SBA officials,
industry representatives and small business owners were ques-
tioned regarding delivery of the entrepreneurial development pro-
grams.
• Hearings on SBA’s entrepreneurial development program
were held on February 27, 2019, April 30, 2019, June 20, 2019,
July 10, 2019, July 11, 2019, and October 23, 2019.
Beginning in May 2020, the Committee held virtual forums on
SBA’s implementation of the changes and funding increases pro-
vided to the entrepreneurial development programs under the
CARES Act.
• Virtual forums on SBA’s COVID–19 related entrepre-
neurial development programs were held on May 7, 2020, and
May 28, 2020.
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PART D
IMPLEMENTATION OF THE OVERSIGHT PLAN OF THE COMMITTEE ON
SMALL BUSINESS FOR THE ONE HUNDRED AND SIXTEENTH CON-
GRESS
Subpart 1—Oversight of Federal Capital Access Programs
GENERAL ACCESS TO CAPITAL PROGRAMS
7(a) Program
SBA’s Congressional Budget Justification for FY2020 predicted
that SBA would not achieve a zero-subsidy rate for the 7(a) pro-
gram, meaning the 7(a) program would not generate sufficient rev-
enue through fee collections and/or recoveries of collateral on de-
faulted loans, and would require either an appropriation of $99
million from Congress in order to operate, or fee increases. It
should be noted the program has operated at zero subsidy since FY
2014. To address the potential shortfall, SBA opted to propose nu-
merous fee increases on 7(a) borrowers and lenders.
Many 7(a) program stakeholders raised concerns regarding the
changes made to the econometric models SBA uses in conjunction
with Office of Management and Budget (OMB) to generate these
subsidy projections. On April 10, 2019, the Committee held a hear-
ing to assess these concerns, as well as the impact 7(a) fee in-
creases would have on access to capital for small businesses. On
May 6, 2019, Chairwoman Nydia M. Velázquez, Ranking Member
Steve Chabot, Subcommittee on Economic Growth, Tax, and Cap-
ital Access Subcommittee Chairman Andy Kim, and Ranking Mem-
ber Kevin Hern sent a letter to the Government Accountability Of-
fice (GAO) to request an evaluation of SBA’s FY2020 budget sub-
mission for the 7(a) program, including SBA’s budget estimation
modeling. On September 30, 2020, GAO published its findings that
SBA generally incorporated cost estimation practices previously
identified that can help agencies make reasonable, reliable esti-
mates, and that the increase in the estimate was largely due to
SBA’s use of updated assumptions and calculation methods.
504/Certified Development Company Program
On December 10, 2019, the Subcommittee on Investigations,
Oversight, and Regulations held a hearing to review SBA’s 504/
Certified Development Company (CDC) program. During the hear-
ing, Subcommittee Members heard from a panel of CDCs regarding
the current status of the program, as well as changes recommended
to improve its reach and operation of the program. For example,
CDCs on the panel testified that changes to occupancy require-
ments in the program would make it easier for 504 loans to finance
the purchase of multi-story buildings. CDCs also testified regarding
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the benefit to borrowers and lenders of streamlining the 504 loan
closing process. On September 16, 2020, the Committee marked-up
two bills to improve the 504 program, both of which were reported
unanimously to the House.
Community Advantage Program
On May 21, 2019, the Subcommittee on Investigations, Over-
sight, and Regulations held a hearing to review SBA’s Community
Advantage loan program. During the hearing, Subcommittee Mem-
bers heard from a panel of Community Advantage lenders and bor-
rowers about their experiences with the program. Specifically, the
lenders on the panel urged Members to codify the program to pro-
vide long-term stability to the program. On March September 16,
2020, the Committee marked-up a bill to authorize the Community
Advantage program under the Small Business Act for five years.
On September 16, 2020, the bill was unanimously reported to the
House.
Microloan Program
On March 7, 2019, the Subcommittee on Economic Growth, Tax,
and Capital Access held a hearing to review SBA’s Microloan pro-
gram. During the hearing, Subcommittee Members heard from
Microlenders, Microloan borrowers, and program stakeholders re-
garding current program operations and recommendations to im-
prove the program’s performance and reach. For example, Micro-
lenders on the panel testified that eliminating the program’s ‘‘1/55
rule’’ (which places an arbitrary cap on the distribution of loan
funds to Intermediaries for the first half of the year to the lesser
of $800,000 or one-fifty-fifth of newly appropriated funds) would
allow SBA to more efficiently get loan funds to Intermediaries
when needed. Microlenders also testified about the importance of
technical assistance and encouraged Congress to strengthen that
component of the program. On March 11, 2020, the Committee
marked up two bills to improve the Microloan program, both of
which were reported unanimously to the House, and approved on
September 14, 2020.
SBIC Program
In the 116th Congress, oversight of the Capital Access programs
was a top priority. With regard to the Small Business Investment
Company (SBIC) program, the Committee held a SBIC manage-
ment review hearing on September 26, 2019. The Associate Admin-
istrator (AA) for the Office of Investment and Innovation (OII), Jo-
seph Shepard testified on the first panel, providing Committee
Members with an update of program performance under his leader-
ship. The second panel was comprised of SBIC industry partici-
pants, stakeholders, and policy experts who testified on the per-
formance of the program, including the impact the programmatic
delays had on investors’ ability to assist small businesses. Wit-
nesses raised concerns over delays in SBIC fund licensing for new
and existing SBIC funds, as well as delays in conducting periodic
examinations. On October 10, 2019, Chairwoman Nydia M.
Velázquez and Ranking Member Steve Chabot sent a letter to Mr.
Shepard outlining concerns from the September 26th hearing, spe-
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cifically with regard to SBA’s staffing for SBIC fund licensing and
generally within OII. On October 18, 2019, the Chairwoman and
Ranking Member received a response from SBA to the October
10th letter. SBA’s response addressed many of the questions raised
regarding SBIC fund licensing and staffing levels at OII.
PANDEMIC-SPECIFIC ACCESS TO CAPITAL PROGRAMS
Paycheck Protection Program
In response to the COVID–19 pandemic, Congress created the
SBA Paycheck Protection Program (PPP), which has been imple-
mented with the assistance of the Department of Treasury. The
program is designed to help small employers access critical finan-
cial assistance quickly. The Committee held numerous oversight
hearings on the PPP to assess the effectiveness of the program and
evaluate ways to improve the program’s reach and performance,
particularly to women, minorities, and underserved communities.
This included a hearing held on July 17, 2020 with Treasury Sec-
retary Steven Mnuchin and SBA Administrator Jovita Carranza re-
garding agency challenges with the program. Specifically, Secretary
Mnuchin committed to setting aside some PPP funds for under-
served small businesses.
The Committee also held a hearing on June 17, 2020 with PPP
participants and stakeholders to assess the effectiveness of the pro-
gram, as well as where ongoing improvements are needed. Further-
more, the Committee held a hearing on September 25, 2020 specifi-
cally on PPP loan forgiveness and the challenges borrowers and
lenders faced in applying for forgiveness. Specifically, Committee
Members heard about the need lenders and borrowers have for a
streamlined PPP loan forgiveness process, particularly for the
smallest of small businesses.
The Subcommittee on Innovation and Workforce Development
also held a hearing on September 24, 2020 with SBA’s Chief of
Staff and Associate Administrator for the Office of Capital Access,
William Manger, regarding the technology systems SBA uses to op-
erate its various business loan programs. Subcommittee Members
heard about the issues SBA faced in rapidly processing PPP loans
and the steps SBA is taking to increase memory capacity and sys-
tem resiliency as the loan forgiveness process begins. The Com-
mittee has also maintained a steadfast effort to improve PPP trans-
parency and specifically, public reporting of loan level data. This
includes regular correspondence with SBA and government watch-
dog agencies.
Economic Injury Disaster Loan Program
Responding to the COVID–19 pandemic, Congress also enacted
numerous changes to SBA’s Economic Injury Disaster Loan (EIDL)
program to improve its ability to respond to the COVID–19 pan-
demic. The improvements included additional funding to meet de-
mand for EIDLs, a waiver of the credit elsewhere requirement, and
the creation of an EIDL Advance grant program, which provided
advance payments of up to $10,000 that would not need to be re-
paid, even if borrowers were later denied disaster loans. The Com-
mittee held multiple oversight hearings on the EIDL program to
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evaluate its effectiveness and hear from program participants re-
garding their experiences with the program. This included a hear-
ing on June 10, 2020 with EIDL borrowers and Advance recipients,
and a hearing with the Associate Administrator for the Office of
Disaster Assistance (ODA) James Rivera on July 1, 2020 to hear
the challenges ODA faced in implementing an expanded EIDL pro-
gram and in standing up a new EIDL Advance program. This in-
cluded a need to rapidly increase staff to manage the unprece-
dented demand for EIDLs and retain a contractor to assist with
processing and evaluating COVID–19 EIDLs.
On June 9, 2020, Chairwoman Nydia M. Velázquez and Ranking
Member Steve Chabot sent SBA Administrator Jovita Carranza a
letter expressing concerns over ODA’s implementation of the EIDL
and Advance programs, including an agency-imposed cap on EIDL
amounts at $150,000, as well as concerns some EIDL applicants
shared with the Committee regarding SBA’s customer service. The
June 9 letter also included 14 interrogatories (including all discrete
subparts) addressed to the agency. Moreover, on July 31, 2020,
Chairwoman Velázquez and Subcommittee on Investigations, Over-
sight, and Regulations Chairwoman Judy Chu sent Administrator
Carranza a letter requesting a briefing on SBA’s response to the
findings in the Office of Inspector General’s (OIG) report identi-
fying potential fraud in the EIDL program. The staff briefing was
held in early August 2020.
Subpart 2—Oversight of SBA and other Federal
Entrepreneurial Development Programs
GENERAL ENTREPRENEURIAL DEVELOPMENT PROGRAMS
The SBA offers a wide range of free or low-cost counseling and
training services through its entrepreneurial development eco-
system to help entrepreneurs launch and grow their small busi-
nesses. To deliver these resources, the SBA relies on its four pri-
mary resource partners: Small Business Development Centers
(SBDCs), Women’s Business Centers (WBCs), SCORE, and Vet-
erans Business Outreach Centers (VBOCs). During the 116th Con-
gress, the Committee focused its oversight efforts on ensuring these
programs were operating effectively in creating jobs at startups
and traditional firms, meeting the needs of underserved popu-
lations, and using taxpayers’ dollars responsibly.
On February 27, 2019 the Committee held a hearing with rep-
resentatives from the SBDC, WBC, SCORE, and VBOC programs
to learn how these programs could be improved and strengthened
through reauthorization. Following the hearing, the Committee
worked with Representative Jared Golden on H.R. 4406, the ‘‘Small
Business Development Center Improvement Act’’ to reauthorize the
SBDC program for four years, allow for the promotion and adver-
tisement of the program, and strengthen oversight through an an-
nual report to Congress. The Committee also worked with Rep-
resentative Sharice Davids on H.R. 4405, the ‘‘Women’s Business
Center Improvement Act’’ to reauthorize the WBC program for four
years, create an accreditation program for WBCs, and require an-
nual reports to Congress. Lastly, the Committee worked with Rep-
resentative Bradley Schneider on H.R. 3537, the ‘‘Veterans Entre-
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preneurship Act,’’ to codify the Boots to Business program at VBOC
for 5 years. These bills were marked up in committee and passed
the House in the 116th Congress but were not considered in the
Senate.
On July 11, 2019 the Subcommittee on Investigations, Oversight,
and Regulations held a hearing to examine the SBA Office of In-
spector General’s (OIG) April 25, 2019 report on the SCORE Pro-
gram. Mr. Hannibal Ware, the Inspector General of SBA and Mr.
Allen Gutierrez, Associate Administrator of the Office of Entrepre-
neurial Development Associate testified before the Committee. The
report found that SBA did not effectively oversee SCORE’s use of
federal funds and that SBA’s ability to detect fraud, waste, and
abuse in the program was hampered. As a result, the Committee
worked with Representative Kevin Hern on H.R. 4407, the ‘‘SCORE
for Small Business Act of 2019,’’ that created safeguards for
SCORE’s use of government funds and brought the program in line
with Federal operating standards. H.R. 4407 passed the House on
October 21, 2019 but was not considered in the Senate. Since the
July 11th hearing, SCORE has independently closed the rec-
ommendations from the OIG report, changed leadership, and
worked to restore public faith in the organization.
A major priority of the Committee has been to investigate and
expand access to SBA’s entrepreneurial development services to un-
derserved communities across the country. On April 30, 2019 the
Subcommittee on Investigations, Oversight, and Regulations held a
hearing to discuss SBA’s relationship with HBCUs. Following the
hearing, Chairwoman Velázquez, Subcommittee Ranking Member
Spano, Subcommittee Chairwoman Chu, Alma Adams, and Vice-
Chair Dwight Evans sent a letter to SBA’s Associate Administrator
of Entrepreneurial Development, Allen Gutierrez, inquiring how
SBA plans to meet recommendations from GAO’s report (GAO–20–
41), fulfill the promises from his April 30th testimony, and
strengthen SBA’s relationship with HBCUs.
Similarly, the Subcommittee on Investigations, Oversight, and
Regulations held a field hearing on November 8, 2019 to determine
how the federal government can better assist immigrant entre-
preneurs and small business owners. In addition, the Committee
held a hearing on October 23, 2019 on expanding entrepreneurial
development services to the incarcerated and formerly incarcerated.
This hearing led to the development and passage of H.R. 5078, the
‘‘Prison to Proprietorship Act,’’ with Chairwoman Nydia Velázquez,
and H.R. 5065, ‘‘Prison to Proprietorship for the Formerly Incarcer-
ated Act’’ with Representative Hakeem Jeffries. These bills would
provide entrepreneurial development counseling and training to in-
dividuals currently incarcerated and recently released from prison.
H.R. 5078 and H.R. 5065 were not considered by the Senate.
PANDEMIC RELATED PROGRAMS
On January 30, 2020, The World Health Organization (WHO) de-
clared a global health emergency over COVID–19. In response to
the widespread disruption to public health, the economy, and small
businesses particularly, Congress created and passed the CARES
Act to respond to the effects of the pandemic. The CARES Act was
signed into law on March 27, 2020 and the Committee has been ac-
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tively engaged in oversight of its programs since enactment. Spe-
cifically, the Committee has overseen the implementation of the in-
creased funding for SBA’s SBDCs, WBCs, their Associations, and
Minority Business Development Centers (MBDCs) and the imple-
mentation of SBA language services.
On May 7, 2020, the Committee held a virtual forum with rep-
resentatives from SBA’s Resource Partners, the SBDCs, WBCs,
SCORE, VBOCs, and Treasury’s MBDC program. The SBDCs and
WBCs received additional funding through the CARES Act to pro-
vide virtual counseling and training services and to tailor their cur-
riculums to the challenges small businesses face during the manda-
tory shutdowns and pandemic life. The forum provided an oppor-
tunity for the Committee to perform oversight on the disbursement
of funds and SBA’s engagement with the Resource Partners to
meet the challenges facing counselors and the communities they
serve across the nation.
On May 28, 2020, the Subcommittee on Contracting and Infra-
structure held a virtual forum on how Congress can leverage the
SBDC network to help small businesses recover from the pandemic.
At this forum, members learned of the vast array of services
SBDCs can provide small businesses and entrepreneurs including
services tailored to the COVID–19 pandemic. In addition, members
learned of the importance of SBDCs being able to use CARES Act
funds to market their services to reach as many small business
owners and entrepreneurs as possible.
In addition to virtual forums, the Subcommittee on Investiga-
tions, Oversight, and Regulations Chairwoman Judy Chu and
Small Business Committee Chairwoman Nydia Velázquez led 72
Members in a letter to SBA Administrator Carranza regarding the
language services implementation as required in Section 1110 of
the CARES Act. The letter detailed the Committee’s concerns that
SBA was slow to provide the necessary documents and materials
in the 10 most common languages other than English including,
Mandarin, Cantonese, Japanese, and Korean. The Committee has
not received a response but SBA has updated their website with
CARES Act program application forms, application instructions,
and FAQs in the required languages.
Subpart 3—Oversight of Federal Government Contracting
One of the core functions of SBA is to ensure that a fair propor-
tion of contracts and subcontracts are placed with small businesses.
To accomplish this mission, SBA has a wide range of contracting
programs and supporting resources that strive to level the playing
field and grant small businesses access to the federal procurement
space. During the 116th Congress, the Small Business Committee
focused its oversight activities on ensuring these programs and re-
sources are implemented in accordance with the statute and free
from fraud and abuse.
On March 26, 2019, the Committee held a hearing to examine
SBA’s delay in carrying out the Small Business Runway Extension
Act (Runway Act) and possible measures to expedite its implemen-
tation. Following the hearing, on April 4, 2019, Congresswoman
Nydia Velázquez, in conjunction with Ranking Member Chabot,
Representative Golden and Representative Stauber sent a letter to
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SBA’s Administrator, Linda McMahon, to request information on
the agency’s progress and request a timeline for issuing regulations
to implement the legislation. The Committee also worked with Rep-
resentative Stauber on H.R. 2345, the ‘‘Clarifying the Small Busi-
ness Runway Extension Act,’’ which sought to ensure the swift im-
plementation of the Runway Act. H.R. 2345 passed the House on
July 15, 2019. However, it was not enacted into law as SBA ulti-
mately adopted rules to address the matter.
Similarly, on May 16, 2019, the Committee held a hearing to dis-
cuss GAO’s latest report regarding the Women Owned Small Busi-
ness (WOSB) Contracting Program and SBA’s lack of implementa-
tion of a formal WOSB certification, as required by the National
Defense Authorization Act for Fiscal Year 2015. On June 19, 2019,
the Committee sent a bipartisan letter to the former Associate Ad-
ministrator of the Office of Government Contracting and Business
Development, Mr. Wong, requesting SBA’s timelines and plans to
implement the formal certification process. Subsequent oversight
efforts on this topic include a management review hearing hosted
by the Committee on September 15, 2020 where the new Associate
Administrator for GCBD, Dr. Spampinato, had an opportunity to
testify as to the status of the WOSB certification process, the cur-
rent state of the 8(a) and HUBZone programs and the overall par-
ticipation of small businesses in federal contracts and subcontracts.
Eradicating fraud and abuse has been a longstanding oversight
priority for the Committee. On October 22, 2019, the Committee
held a hearing focused on GAO’s reports detailing SBA’s weak-
nesses in the management of the 8(a) program as it relates to na-
tive-owned small business. The hearing also addressed concerns of
ineligible firms being certified into the program. On January 24,
2020 the Committee sent a letter to GAO requesting additional
work in these areas and the report is currently underway.
The Committee has also engaged in oversight efforts to guar-
antee resources, such as contracting personnel, are available to as-
sist small businesses. On November 5, 2019, the Committee sent
a bipartisan letter to the Director of the Defense Logistics Agency,
Mr. Williams, to inquire about the agency’s non-compliance with
requirements of the Office of Small and Disadvantaged Business
Utilization (OSDBU). Likewise, on August 12, 2020, Chairwoman
Velázquez sent a letter to SBA referencing the findings of a re-
cently published GAO report on procurement center representa-
tives (PCRs) and requesting additional information as to the lim-
ited number of PCRs and efforts to fill available positions or to in-
crease them.
Finally, the Committee has performed its oversight function
through legislation. For example, H.R. 226 the ‘‘Clarity on Small
Business Participation in Category Management Act of 2019’’ insti-
tutes a reporting requirement to understand the level of participa-
tion of small businesses in ‘‘Best In Class’’ contracting vehicles,
which in turn will help measure the impact of category manage-
ment on small businesses and federal procurement opportunities.
H.R. 226 became law on December 20, 2019, through its incorpora-
tion in S. 1790, the National Defense Authorization Act of 2019.
Furthermore, given the importance of cash flow to small businesses
particularly amid the COVID–19 pandemic, the Committee worked
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with Representative Crow on H.R. 7342, the ‘‘Federal Small Busi-
nesses Contractor Prompt Payment Reporting Act.’’ H.R. 7342 re-
quires federal agencies to report to Congress on the timeliness of
payments to prime contractors who are small businesses or have
small businesses as subcontractors, including the date in which
agencies started accelerating payments (with a goal of paying in 15
days after the submission of a proper invoice) in accordance with
10 U.S.C. 2307(a)(2) and 31 U.S.C. 3903(a)(10)–(11). H.R. 7342 was
introduced on June 25, 2020 and included in H.R. 6395, the ‘‘Wil-
liam M. Mac Thornberry National Authorization Defense Act for
Fiscal Year 2021.’’ H.R. 6395 passed the House on July 21, 2020
by a vote of 295–125 (Roll Call 152) and placed on the Senate Leg-
islative Calendar on August 5, 2020.
Subpart 4—Oversight of SBA Management
The Committee actively oversees the management of the Small
Business Administration through hearings, letters, and meetings
with agency officials and industry representatives.
A primary concern for the Committee is to ensure that adequate
levels of funding are available to fully implement SBA programs.
The Small Business Administration assists small businesses
through business loans, loan guarantees, counseling, and con-
tracting preferences. To deliver these programs and services
throughout the country, SBA relies largely on a network of 68 dis-
trict offices located across the United States and its territories. The
Committee held a management review hearing on the Office of
Field Operations, in which Mr. Michael A. Vallante, the Associate
Administrator of the Office of Field Operations, testified about the
Office’s organizational structure and performance. Members
learned the aggregate number of Full Time Equivalents (FTE) em-
ployees in district and regional offices decreased from 813 in FY
2014 to 687 in FY 2019. To ensure the agency meets its mission
to serve small businesses throughout the nation and deliver high
quality services to the small business community, the Committee
recommended that funding be dedicated to the Office of Field Oper-
ations in ‘‘the Views and Estimates of the Committee on Small
Business on Matters to be set forth in the Concurrent Resolution
on the Budget for Fiscal Year 2021.’’ The letter was approved in
a full Committee mark-up on March 4, 2021.
The Committee also rejected the Administration’s steep cuts to
SBA’s resource partner network, comprised of Small Business De-
velopment Centers (SBDCs), Women’s Business Centers (WBC),
SCORE chapters, and Veterans Business Outreach Centers
(VBOCs). In the Views and Estimates letters for FY 2020 and FY
2021, the Committee advocated for robust levels of funding for the
counseling and training programs to support small businesses.
Moreover, on February 26, 2020, the Committee held a hearing on
the Small Business Committee’s Budget for FY 2021. The newly
confirmed Administrator, Jovita Carranza testified before the Com-
mittee in which concerns were raised over the level of funding for
district offices, as well as the steep cuts to the Entrepreneurial De-
velopment programs.
On October 11, 2019, the Inspector General released its report on
the most serious management and performance challenges facing
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the Small Business Administration in fiscal year 2020. On October
the Committee held an oversight hearing to examine the manage-
ment and performance challenges identified in the OIG’s FY 2020
report and discuss SBA’s efforts to address these challenges.
The Committee has also been concerned the SBA has imple-
mented unproven pilot programs that lack an authorization and ro-
bust controls. To that end, on September 19, 2019, the Sub-
committee on Innovation and Workforce Development held a hear-
ing to evaluate the Growth Accelerator Fund Competition (GAFC),
a pilot program that provides $50,000 awards to accelerators to
give early-stage entrepreneurs opportunities to immerse them-
selves in intense learning. At the hearing, witnesses testified that
SBA’s GAFC spurred economic development and helped to create
jobs. Moreover, the pilot program fills geographic gaps by sup-
porting the development of accelerators and their startups in re-
gions of the country where there are fewer sources of capital. On
October 17, 2019, the Committee reported H.R. 4387, legislation to
establish a Growth Accelerator Program at the Small Business Ad-
ministration and develop metrics to further evaluate the effective-
ness of the program. The legislation was approved by the House of
Representatives on October 21, 2019, however the Senate did not
consider the measure.
Throughout the Congress, the Committee also held a number of
management review hearings to evaluate budgetary requests, fi-
nancial management, and reporting goals in each of the offices at
SBA. The respective Associate Administrator from each department
testified before the Committee at these hearings, which are de-
tailed in Subparts A and B above. Moreover, Committee staff met
regularly with Associate Administrators and other SBA employees
to conduct oversight.
Subpart 5—Oversight of Federal Regulatory and Paperwork
Burdens
The Committee continues to prioritize oversight of federal agency
regulations and paperwork requirements to ensure small busi-
nesses are not unduly burdened. On July 21, 2019, the Sub-
committee on Economic Growth, Tax, and Capital Access held a
field hearing in Tulsa, Oklahoma to examine the small business
regulatory landscape and how it affects their ability to operate
their businesses. This hearing allowed Members to learn of oppor-
tunities to reduce burdensome regulations and paperwork, as well
as, hear which regulations work for small businesses and entre-
preneurs.
Legislatively, the Committee worked with Representative Anto-
nio Delgado to advance H.R. 2142, which would require the SBA
and Agriculture Regulatory Enforcement Ombudsman (Ombuds-
man) to create a centralized website for regulatory compliance
guides. H.R. 2142 would reduce the administrative burden on small
businesses by consolidating necessary regulatory information in
one place. In addition, H.R. 2142 requires the Ombudsman to re-
port to Congress on federal agencies’ compliance with the Small
Business Regulatory Enforcement Fairness Act of 1996 (SBREFA).
H.R. 2142 passed the House on July 15, 2019 but was not consid-
ered in the Senate.
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As part of its ongoing oversight efforts, the Committee continued
to monitor federal agencies compliance with the SBREFA, which
requires agencies to report to Congress annually on small entity
compliance guides that are required for every final rule that has
a significant impact on a substantial number of small entities
under the Regulatory Flexibility Act.
Subpart 6—Oversight of Federal Tax Policy
During the 116th Congress, the Committee conducted hearings
and investigations into the tax code and its impact on small busi-
nesses. Specifically, the Committee conducted a hearing on July 24,
2109 focused on how the Tax Cuts and Jobs Act (TCJA) failed to
deliver on its promises for most Main Street small businesses. The
Committee conducted a hearing on March 3rd, 2020 regarding the
impact of the 2018 U.S. Supreme Court decision in South Dakota
v. Wayfair, Inc. regarding state sales and use taxes and tax compli-
ance. Following the Wayfair hearing Representative Andy Kim—
Chairman of the Economic Growth, Tax and Capital Access sub-
committee—sent a letter in October 2020 to the Government Ac-
countability Office (GAO) requesting an update on a 2017 report
that estimated revenue and compliance costs related to interstate
sales and use taxes for states and businesses. Additionally, the
Committee held a hearing on March 27, 2019 examining retirement
plan options for small businesses and the barriers small business
owners face in saving for retirement. Finally, the Committee exam-
ined the impact of COVID–19 on small businesses and tax policy
via the implementation of the Employee Retention Tax Credit
(ERTC) and the Paycheck Protection Program (PPP).
Subpart 7—Oversight of Health Care Policy
During the 116th Congress, the Committee on Small Business
conducted hearings and oversight analyzing federal health care pol-
icy, focusing on small, physician-owned medical practices and their
ability to better service patients. That included a hearing on June
12, 2019 covering how increasing student loan debt is a barrier to
entry for young doctors starting new firms, especially in under-
served areas of the country. The Committee also held hearings on
ways to reducing administrative burdens for small medical prac-
tices. Following a hearing on September 11, 2019 on prior author-
ization, a method used by health insurance companies to slow down
the ability for doctors to serve their patients, members of the com-
mittee led letters on the issue. The first was to Ways and Means
October 21st, 2019, pushing for the passage of H.R. 3107, Improv-
ing Seniors’ timely Access to Care Act of 2019, and the second led
by Representative Davids on May 4, 2020 to CMS encouraging
changes to Medicare Advantage regulations in the midst of the
COVID–19 pandemic. The Committee also conducted a hearing
analyzing the connections between public health and small busi-
nesses in its first hearing on the COVID–19 pandemic, primarily
focused on industries such as travel and dining, especially in
Asian-American communities.
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Subpart 8—Oversight of Energy Policy
During the 116th Congress, the Committee on the Small Busi-
ness conducted hearings and oversight detailing how small busi-
nesses are involved in the clean energy economy, reducing emis-
sions, increasing efficiencies while creating jobs in the United
States. On September 6, 2019 the Committee held a hearing on the
diverse ways small businesses are engaged in the growing the
clean energy economy. This included the importance of tax incen-
tives for renewable energy, energy efficiency, and clean transpor-
tation technologies and outlined the importance that biofuels pro-
duction has in rural America. The Committee also provided input
to the House Select Committee on the Climate Crisis on ways that
the Small Business Administration can be supportive of small busi-
nesses seeking to adopt energy efficiency and renewable energy
systems. Representative Finkenauer, the Chair of the Small Busi-
ness Committee Subcommittee on Rural Development, Agriculture,
Trade, and Entrepreneurship wrote a letter to the Administration
on biofuels issues and the renewable fuel standards on June 8,
2020. The letter pushed back against waivers provided by the Ad-
ministration that impacted the production and use of renewable
biofuels under the federal Renewable Fuel Standard.
Subpart 9—Oversight of Trade and Intellectual Property
Policy
Trade
The State Trade Expansion Program (STEP) aims to increase the
number of small businesses that export and raise the value of ex-
isting small business exporters. The SBA Associate Administer of
the Office of International Trade is responsible for overseeing the
program and awards matching funds to states and territories for
participation in trade missions, international marketing efforts,
workshops, export trade show exhibits, and other promotional ac-
tivities.
In the 116th Congress, the Committee worked to ensure the
STEP program meets the needs of its participants and expands ac-
cess to export markets across the country, in preparation for the
reauthorization of the program. On March 12, 2019, the Sub-
committee on Rural Development, Agriculture, Trade, and Entre-
preneurship held a hearing with the Government Accountability
Office (GAO) and SBA Office of Inspector General (OIG) to discuss
the challenges facing the STEP program. In addition, on June 11,
2019, the Subcommittee held a hearing on the states’ perspectives
of the STEP program, where they heard from state representatives
and small business participants. These hearings allowed Sub-
committee members to understand the challenges facing the pro-
gram from multiple perspectives.
This oversight work culminated in the Committee working with
Representative Abby Finkenauer on H.R. 6133, the STEP Improve-
ment Act. H.R. 6133 would reauthorize the program through Fiscal
Year 2024, streamline the application process, increase grant flexi-
bility, and improve the communication between the SBA and state
awardees. H.R. 6133 was passed by the House on September 14,
2020 but not considered in the Senate.
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In addition to the STEP program, the Committee also held a
roundtable on February 12, 2020 with representatives from SBA’s
SBDC program. One of the panels of the roundtable focused on how
the Committee can continue to prioritize small business exports
and how imperative they are to small business growth.
Intellectual Property
During the 116th Congress, the Committee on Small Business
conducted hearings and oversight facing entrepreneurs, start-ups,
and small businesses regarding patents, trademarks, and copy-
rights. On January 19, 2020, the Committee held a hearing on the
Inventor Diversity for Economic Advancement (IDEA) Act which
would require the Patent Trade Office (PTO) to collect demographic
data, reflecting the data categories collected in the SUCCESS Act
from patent applicants on a voluntary basis. The Committee heard
testimony that lack of diversity in the innovation process is hin-
dering the economy and one way to combat this is to collect demo-
graphic data to create more understanding and equity in the in the
innovation ecosystem.
The Committee also held a roundtable on July 25, 2019 regard-
ing issues that women entrepreneurs face in the technology indus-
try. Members of the Committee heard about ways to integrate more
women into venture capital (VC) and developing resources to create
pipeline of future female tech founders.
Subpart 10—Oversight of Agriculture
During the 116th Congress, the Committee on Small Business
conducted hearings and oversight on the important role small busi-
nesses play in the agriculture sector of the economy. Small busi-
nesses are engaged in a wide range of farm and food related activi-
ties as producers, distributors, and retailers domestically and in
the international market. The Small Business Committee con-
ducted a hearing on opportunities provided by advances in agricul-
tural technology in rural economies on January 9, 2020. The Com-
mittee heard the concerns, challenges, and ways to supporting the
next generation of farmers at a hearing on July 25, 2019. The Com-
mittee also held hearing on Sept. 30, 2020 analyzing how COVID–
19 is impacting our nation’s farmers and small businesses engaged
in our food systems.
The Committee also held a hearing on November 14, 2019 with
officials from both USDA and SBA to discuss the memorandum of
understanding between the agencies, the challenges facing rural
businesses, and how the agencies can coordinate to best serve rural
entrepreneurs and small businesses. In addition to these impactful
hearings, the Small Business Committee analyzed trade policies by
the Trump Administration and its impact on small farm busi-
nesses.
Chairwoman Nydia Velázquez (NY–07) and members of the Com-
mittee sent a letter to the Administration on the impacts that trade
wars and tariffs were having on small businesses on January 17,
2020. Congresswoman Abby Finkenauer (IA–01), joined by other
members of the Committee, wrote letters to the SBA Administrator
about the Office of Rural Affairs on December 13, 2019 and April
30, 2020. Congressman Antonio Delgado (NY–19) and other mem-
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bers of the Committee engaged with the Administration on small
agriculture businesses access to COVID–19 relief programs, send-
ing a letter on April 2, 2020.
Subpart 11—Oversight of Technology and Innovation Policy
During the 116th Congress, the Committee on Small Business
conducted hearings and oversight facing entrepreneurs on the im-
portance of innovation, entrepreneurship, and how small busi-
nesses are utilizing digital platforms to start and grow businesses.
The Committee held a hearing with representatives from the ‘‘Big
Tech’’ companies on November 14, 2019 regarding the opportunities
and challenges online platforms such as Amazon and Google pose
for entrepreneurs and small firms. The Committee also held sev-
eral hearings on the importance of reliable and affordable
broadband service is to the success of small businesses, especially
in rural and underserved markets. One issue in particular ad-
dressed by the Committee, at a hearing on June 25, 2019, was on
the importance of accurate broadband maps in closing the digital
divide.
The Committee also addressed how lack of access to broadband
is impacting health care in rural communities during COVID–19.
Representative Crow led a letter on May 6, 2020 to the Federal
Communications FCC inquiring about how the FCC was operating
its COVID–19 Telehealth Portal which allows healthcare providers
to apply for reimbursements for costs they incur for telehealth
services.
During the 116th Congress, the Committee conducted oversight
on SBA’s efforts to modernize its legacy technology systems. The
Committee learned that several projects the SBA started were not
completed, most importantly, Certify.gov. The Committee also ex-
amined the systems used to implement the Paycheck Protection
Program and Economic Injury Disaster Loan programs, focusing on
system crashes, SBA’s reliance on outdated systems, and SBA’s
plans to replace these systems.
To that end, the Committee held two hearings, the first was held
on July 22, 2020 with SBA’s Deputy CIO, Mr. Guy Cavallo, focused
on IT modernization efforts at the SBA over the past few years.
The second hearing was held on September 24, 2020 with SBA’s
Chief of Staff and Associate Administrator for the Office of Capital
Access, Mr. Bill Manger, which focused on the technical concerns
that arose during the PPP and EIDL programs. On September 16,
2020 Representative Jared Golden, Chair of the Subcommittee on
Contracting and Infrastructure also sent a letter to SBA regarding
the Certify.gov project: the questions centered on the cost of the
project, why it was halted, and a timeline for the completion of the
new Certify.gov system.
Subpart 12—Oversight of Veterans’ Entrepreneurship Policy
The Committee continues to oversee and foster veteran entrepre-
neurship through contracting, entrepreneurial development, and
loan guaranty programs that assist service members transitioning
to civilian life. On July 10, 2019, the Committee held a hearing ti-
tled: ‘‘Continuing to Serve: Military to Entrepreneurship,’’ which fo-
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148
cused on the role of veteran entrepreneurs in growing the economy
and examined legislative efforts to foster veteran entrepreneurship.
Following the hearing, on July 17, 2019, the Committee marked up
four bills aimed to strengthen SBA’s veteran programs.
Entrepreneurial Development
Every year, more than 200,000 servicemembers make the transi-
tion from military to civilian life. Transition assistance is critical
to ensure that those who serve in the military have opportunities
for meaningful employment. The National Defense Authorization
Act of Fiscal Year 2019 requires servicemembers participating in
TAP to enroll in one of three capstone classes, which include: Ac-
cessing Higher Education, Career and Technical Training, and En-
trepreneurship (Boots to Business). In order to continue to support
veteran entrepreneurs, the Committee worked with Representative
Bradley Schneider on H.R. 3537, the ‘‘Veteran Entrepreneurship
Training Act of 2019’’. H.R. 3537 amends the Small Business Act
to codify the Boots to Business program for five years.
In addition, the Committee worked with Representative Sharice
Davids on H.R. 3734, ‘‘The Successful Entrepreneurship for Reserv-
ists and Veterans Act’’. H.R. 3734 requires the Interagency Task
Force for Small Business Development to annually report to Con-
gress on the task force appointments and to identify and outline a
plan for outreach and promotion of veterans’ programs at SBA.
H.R. 3734 also requires a GAO report to Congress on the credit
issues related to veterans, ensuring Congress is apprised of issues
facing the veteran community on a regular basis.
These bills were marked up on July 17, 2019 by the Committee
and passed the House in the 116th Congress but were not consid-
ered in the Senate.
Federal Contracting
In the 116th Congress, the Committee also focused its efforts on
harmonizing and ensuring consistency between two distinct federal
contracting programs for veterans. The Committee worked with
Representative Trent Kelly on H.R. 1615, the ‘‘Verification Align-
ment and Service-Disabled Business Adjustment Act.’’ H.R. 1615,
institutes a formal certification process for SBA’s Service-Disabled
Veteran-Owned Small Business Contracting Program and transfers
to the SBA the responsibility of certifying veteran-owned small
businesses participating in the Department of Veterans Affairs con-
tracting program.
In addition, the Committee worked with Ranking Member
Chabot on H.R. 499, the ‘‘Service-Disabled Veterans Small Busi-
ness Continuation Act’’. H.R. 499 provides parity in the treatment
of surviving spouses to these two contracting programs.
H.R. 1615, as amended, was marked up in Committee, passed
the House, and was included in H.R. 6395, the National Defense
Authorization Act for Fiscal Year 2021. H.R. 6395 passed the
House but was not considered in the Senate. Similarly, H.R. 499
was marked up in Committee and passed the House in the 116th
Congress but was not considered in the Senate.
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Access to Capital
Access to capital remains a significant barrier to veteran entre-
preneurship and an oversight priority of the Committee. On Feb-
ruary 7, 2019, the Subcommittee on Economic Growth, Tax, and
Capital Access held a hearing to assess the challenges faced by un-
derserved businesses, including those owned by veterans. During
that hearing, Subcommittee Members heard about a change in the
language of the Small Business Act that would increase the eligi-
bility of military—focused SBA programs to those who have ‘‘[been]
ordered to perform active—duty service for more than 30 consecu-
tive days,’’ which would include National Guard and Reserve mem-
bers.
Following the hearing, the Committee worked with Representa-
tive Andy Kim on H.R. 3661, the ‘‘Patriotic Employer Protection
Act’’. H.R. 3661 makes the aforementioned change to SBA’s Mili-
tary Reservist Economic Injury Disaster Loan (MREIDL) and Re-
payment Deferral programs, broadening the pool of servicemembers
and reservists eligible for the MREIDL and Repayment Deferral
programs. H.R. 3661 was marked up in Committee and passed the
House in the 116th Congress but was not considered in the Senate.
Subpart 13—Oversight of Labor and Workforce Policy
During the 116th Congress, the Committee on Small Business
conducted hearings and oversight to analyze the workforce needs of
small businesses often through the lens of workforce development
programs. On September 11, 2019 the Committee held a hearing
analyzing policies that can upskill the medical services sector. The
Committee also examined the importance of local workforce boards
under the Workforce Innovation and Opportunity Act and Commu-
nity Colleges for workforce training in the recovery from the
COVID–19 pandemic. The Committee also conducted a field hear-
ing in Colorado on November 22, 2019 on innovations in the edu-
cation system that are creating a pipeline of highly skilled workers
for small businesses using new training methods for high school
and college students.
Æ
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