Report on the Activities of the Committee on Small Business, 117th Congress: Report 117-661
Summary
Report 117-661 of the 117th Congress, 2d Session, Union Calendar No. 480, dated December 21, 2022, on the activities of the Committee on Small Business. A letter of transmittal from Chairwoman Nydia M. Velázquez to Cheryl L. Johnson, Clerk, submits the report under clause 1(d) of rule XI. Near the end, the report states that on May 11, 2022 the Committee approved H.R. 7622, the Small Business Workforce Pipeline Act of 2022, and H.R. 7664, the Supporting Small Business and Career and Technical Education Act of 2022; both bills were approved by the House on June 8, 2022 and referred in the Senate on June 9, 2022.
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Cite this document
“Report on the Activities of the Committee on Small Business, 117th Congress: Report 117-661.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/crpt-crpt-117hrpt661-crpt-117hrpt661/
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1
Union Calendar No. 480
117TH CONGRESS REPORT
" HOUSE OF REPRESENTATIVES !
2d Session 117–661
REPORT ON THE ACTIVITIES
OF THE
COMMITTEE ON SMALL BUSINESS
117TH CONGRESS
DECEMBER 21, 2022.—Committed to the Committee of the Whole House
on the State of the Union and ordered to be printed
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U.S. GOVERNMENT PUBLISHING OFFICE
50–120 WASHINGTON : 2023
E:\Seals\Congress.#13
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LETTER OF TRANSMITTAL
HOUSE OF REPRESENTATIVES,
COMMITTEE ON SMALL BUSINESS,
Washington, DC, December 21, 2022.
Hon. CHERYL L. JOHNSON,
Clerk, House of Representatives,
Washington, DC.
DEAR MADAM CLERK: In accordance with clause 1(d) of rule XI
of the Rules of the House of Representatives, I respectfully submit
the activities report of the Committee on Small Business for the
117th Congress.
Sincerely,
NYDIA M. VELÁZQUEZ,
Chairwoman.
(III)
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CONTENTS
Page
Committee Jurisdiction and Special Oversight Function ..................................... 1
Rules of the Committee on Small Business ........................................................... 1
Membership and Organization ............................................................................... 15
Authorization and Oversight Plan ......................................................................... 17
Legislative Activities ............................................................................................... 26
Oversight Summary ................................................................................................ 43
Part A—Full Committee Hearings ......................................................................... 43
Part B—Subcommittee Hearings ........................................................................... 63
Part C—Waste, Fraud, Abuse, and Mismanagement ........................................... 93
Part D—Implementation of the Oversight Plan ................................................... 97
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(V)
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Union Calendar No. 480
117TH CONGRESS REPORT
" HOUSE OF REPRESENTATIVES !
2d Session 117–661
REPORT ON THE ACTIVITIES OF THE COMMITTEE ON
SMALL BUSINESS FOR THE 117TH CONGRESS
DECEMBER 21, 2022.—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 117th Congress requires that each standing com-
mittee, not later than January 2nd of each odd-numbered year,
submit to the House a report on the activities of that Committee,
including separate sections summarizing the legislative and over-
sight activities of that Committee.
COMMITTEE JURISDICTION AND SPECIAL OVERSIGHT
FUNCTION
Clause 1(q) of rule X of the Rules of the House of Representatives
sets forth the jurisdiction of the Committee on Small Business as
follows:
(1) Assistance to and protection of small business, including fi-
nancial aid, regulatory flexibility, and paperwork reduction.
(2) Participation of small-business enterprises in Federal pro-
curement and Government contracts.
In addition, clause 3(l) of rule X of the Rules of the House of Rep-
resentatives provides that the Committee on Small Business shall
study and investigate on a continuing basis the problems of all
types of small business.
RULES OF THE COMMITTEE ON SMALL BUSINESS
1. GENERAL PROVISIONS
(A) Rules of the Committee. The Rules of the House of Rep-
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resentatives are the rules of the Committee on Small Business
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(‘‘Committee’’) to the extent applicable and are incorporated by ref-
erence.
(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 Chair and Ranking Member
of the Committee are ex officio Members of all Subcommittees for
the purpose of any meeting conducted by a Subcommittee.
(B) The Committee shall be organized into the following five sub-
committees:
(1) Subcommittee on Underserved, Agricultural, and Rural
Business Development
This Subcommittee (which will consist of six (6) Democratic
Members and five (5) Republican Members) will address poli-
cies that enhance underserved communities and rural eco-
nomic growth, increasing America’s energy independence and
ensuring that America’s small businesses can compete effec-
tively in a global marketplace.
• Oversight of a broad array of policies affecting under-
served businesses, including minority, women, immigrant, vet-
eran, and rural owners.
• Oversight of the Small Business Administration’s outreach
and structure as it pertains to increasing assistance to under-
served and rural businesses and entrepreneurs.
• Oversight of agricultural policies.
• Oversight of trade policies and issues affecting small firms
related to trade agreements.
• 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
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United States Export Assistance Centers, the Department of
Agriculture’s Foreign Agricultural Service, and the Export-Im-
port Bank.
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• Oversight of infringement of intellectual property rights by
foreign competition.
• Examine the implementation and effectiveness of govern-
ment programs designed to assist underserved, rural, and agri-
cultural businesses impacted by the pandemic.
(2) Subcommittee on Innovation, Entrepreneurship, and
Workforce Development
This Subcommittee (which will consist of six (6) Democratic
Members and five (5) 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 SBA entrepreneurial development programs,
including Small Business Development Centers, Women’s Busi-
ness Centers, Veteran Business Outreach Centers, and
SCORE.
• 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.
• Analyze workforce issues, including but not limited to
health care, retirement, and labor challenges facing small busi-
nesses.
• Examination of general technology issues, including intel-
lectual 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.
• Investigate the state of the nation’s entrepreneurship, the
challenges they face, and steps to strengthen entrepreneurship,
including startups, solopreneurs, self-employed, and micro-
businesses.
• Examine programs and efforts designed to assist both
small employers and their workers throughout the COVID–19
pandemic.
(3) Subcommittee on Economic Growth, Tax, and Capital Ac-
cess
This Subcommittee (which will consist of six (6) Democratic
Members and five (5) 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.
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• Implementation of the Dodd-Frank Wall Street Reform
and Consumer Protection Act.
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• 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.
• Analyze efforts to address challenges for the unbanked and
underbanked business community and steps to increase capital
access.
• Investigate the implementation and efficacy of programs
related to supporting the business community and nonprofits
throughout the COVID–19 pandemic, including but not limited
to the Paycheck Protection Program, the Economic Injury Dis-
aster Loan program, and other SBA programs.
(4) Subcommittee on Oversight, Investigations, and Regula-
tions
This Subcommittee (which will consist of six (6) Democratic
Members and five (5) 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
federal agencies.
• Oversight of the management of the SBA.
• Oversight of the SBA Inspector General.
• Implementation and effectiveness of the Regulatory Flexi-
bility 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.
• Evaluating the Paperwork Reduction Act.
• Investigate all programs relating to the COVID–19 pan-
demic and their impact on the business and nonprofit commu-
nity and their employees.
(5) Subcommittee on Contracting and Infrastructure
This Subcommittee (which will consist of six (6) Democratic
Members and five (5) Republican Members) will assess the fed-
eral procurement system, including those programs designed
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
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expand participation by small businesses in the federal con-
tracting marketplace.
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• 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.
• Explore challenges small contractors and businesses face
caused by the COVID–19 pandemic and remedial steps to as-
sist them.
• Address steps the federal government have taken or can
take to strengthen the supply chain and create more federal
procurement opportunities for small business concerns.
(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
the Minority shall be appointed and assigned, and their remunera-
tion determined, as the Ranking Minority Member of the Com-
mittee shall decide.
(C) Subcommittee Staff. There shall be no separate staff assigned
to Subcommittees. The Chair and Ranking Minority Member shall
endeavor to ensure that sufficient Committee staff is made avail-
able in order that each Subcommittee may carry out the respon-
sibilities set forth in rule 3, supra.
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.
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(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
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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 spe-
cial 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
hearing. If a tentative witness list is not made available at the
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-
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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
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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 hear-
ings. Notwithstanding the requirements of the preceding sentence,
a majority of those present (if the requisite number of Members are
present under Committee rules for the purpose of taking testi-
mony) may vote: (i) to close the hearing for the sole purpose of dis-
cussing whether the testimony or evidence to be received would en-
danger the national security, would compromise sensitive law en-
forcement information, or violate rule XI, cl. 2(k)(5) of the House
or (ii) to close the hearing, as provided clause 2(k)(5) of rule XI of
the House.
(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
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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-
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ity vote authorize the Committee or Subcommittees, for purposes
of a particular subject of investigation, to close its hearing to Mem-
bers by the same procedures designated to close hearings to the
public.
(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
the preceding paragraph shall not apply if the Committee holds a
hearing to honor the work of the small business community in con-
junction with the annual celebration of Small Business Week. Wit-
ness limitations for such a hearing shall be determined by the
Chair in consultation with the Ranking Minority Member.
(D) Statement of Witnesses.
(1) Insofar as is practicable, each witness who is to appear
before the Committee or Subcommittee shall file an electronic
copy of the written testimony with the Committee and the
Ranking Minority Member no later than 48 hours before the
commencement of the hearing. 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
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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
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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
commencement 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
as set forth in rule XI, cl. 2(j)(B). No Member may be recognized
for a second period of interrogation, subject to the 5-minute rule,
until each Member present, who wishes to be recognized, has been
recognized at least once.
(I) Order of Questioning.
(1) Full Committee Hearings. The Chair of the Committee
shall commence questioning followed by the Ranking Minority
Member. Thereafter, questioning shall alternate between the
Majority and Minority Members. Before the gavel has been
struck, or in the case of Members arriving simultaneously, the
order of questioning shall be based on seniority among Mem-
bers of his or her own party. After the gavel has been struck,
Members first to arrive shall have priority over Members of his
or her own party. Members of Congress who are not Members
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of the Committee, if allowed by the Chair, may be recognized
for questioning of witnesses but only after all Committee Mem-
bers have first been recognized.
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(2) Subcommittee Hearings. The Chair of the Subcommittee
shall commence questioning followed by the Ranking Minority
Member of the Subcommittee. Thereafter, questioning shall al-
ternate between the Majority and Minority Members of the
Subcommittee. Before the gavel has been struck, or in the case
of Subcommittee Members arriving simultaneously, the order
of questioning shall be based on seniority among Members of
his or her own party. After the gavel has been struck, Sub-
committee Members first to arrive shall have priority over Sub-
committee Members of his or her own party. Members of the
Full Committee who are not members of the Subcommittee and
are granted permission to participate pursuant to committee
rule 7(C), may be recognized for questioning only after all Sub-
committee Members have first been recognized. The order of
questioning for Members of the Full Committee who are not
members of the Subcommittee shall be based on full committee
seniority. Members of Congress who are not Members of the
Subcommittee, if allowed by the Chair, may be recognized for
questioning of witnesses but only after all Subcommittee Mem-
bers and Full 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 or the assigned hearing room in
Washington, DC, a quorum shall be deemed to be present if the
Chair of the Committee or Subcommittee is present.
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.
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(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
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11
any amendment adopted thereto to be made publicly available in
electronic form.
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 of 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.
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(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
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12
to further debate or amendment to the same extent as when the
question was postponed.
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, cal. 3(b)(3) or cal.
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
The Chair shall maintain an official Committee web site for the
purpose of furthering the Committee’s legislative and oversight re-
sponsibilities, including communicating information about Commit-
tee’s activities to Committee Members and other Members of the
House. The Ranking Minority Member may maintain a similar web
site for the same purpose, including communicating information
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
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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.
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(B) Procedures Governing Availability. The procedures to be fol-
lowed in granting access to those hearings, records, data, charts,
and files of the Committee which involve classified information or
information deemed to be sensitive shall be as follows:
(1) Only Members of the House of Representatives and spe-
cifically designated Committee staff of the Committee on Small
Business may have access to such information.
(2) Members who desire to read materials that are in posses-
sion of the Committee shall notify the Clerk of the Committee
in writing.
(3) The Clerk of the Committee will maintain an accurate ac-
cess log, which identifies the circumstances surrounding access
to the information, without revealing the material examined.
(4) If the material desired to be reviewed is material which
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
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to be handled in the accordance with normal practices and tra-
ditions of the Committee.
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14
17. OTHER PROCEDURES
The Chair of the Committee may establish such other procedures
and take such actions as may be necessary to carry out the fore-
going rules or to facilitate the effective operation of the Committee.
18. AMENDMENTS TO COMMITTEE RULES
The rules of the Committee may be modified, amended, or re-
pealed by a majority vote of the Members, at a meeting specifically
called for such purpose, but only if written notice of the proposed
change or changes has been provided to each Member of the Com-
mittee at least 72 hours prior to the time of the meeting of the
Committee to consider such change or changes.
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 117th Congress, the Chair, after consulta-
tion with the Ranking Minority Member, shall designate one-third
of the budget under the direction of the Ranking Minority Member
for the purposes of Minority staff, travel expenses of Minority staff
and Members, and Minority office expenses.
(B) Authorization of Travel. The Chair may authorize travel in
connection with activities or subject matters under the legislative
or oversight jurisdiction of the Committee as set forth in rule X of
the Rules of the House. The Ranking Minority Member may au-
thorize travel for any Minority Member or staff of the Minority in
connection with activities or subject matters under the Committee’s
jurisdiction as set forth in rule X of the Rules of the House. Before
such travel, there shall be submitted to the Chair of the Committee
in writing the following at least seven (7) calendar days prior speci-
fying: a) the purpose of the travel; b) the dates during which the
travel is to occur; c) the names of the states or countries to be vis-
ited and the length of time spent in each; and d) the names of
Members and staff of the Committee participating in such travel.
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MEMBERSHIP AND ORGANIZATION
Committee on Small Business
(Ratio: 15–12)
Nydia Velázquez, New York, Chairwoman
Democrats Republicans
JARED GOLDEN (ME–02) BLAINE LUETKEMEYER (MO–03), Ranking
JASON CROW (CO–06) Member
SHARICE DAVIDS (KS–03) ROGER WILLIAMS (TX–25) Vice Ranking
KWEISI MFUME (MD–07) Member
DEAN PHILLIPS (MN–03) PETE STAUBER (MN–08)
MARIE NEWMAN (IL–03) DAN MEUSER (PA–09)
CAROLYN BOURDEAUX (GA–07) CLAUDIA TENNEY (NY–22)
TROY CARTER (LA–02) ANDREW GARBARINO (NY–02)
JUDY CHU (CA–27) YOUNG KIM (CA–39)
DWIGHT EVANS (PA–03) BETH VAN DUYNE (TX–24)
CHRISSY HOULAHAN (PA–06) BYRON DONALDS (FL–19)
ANDY KIM (NJ–03) MARIA SALAZAR (FL–27)
ANGIE CRAIG (MN–02) SCOTT FITZGERALD (WI–05)
SCOTT PETERS (CA–52) MIKE FLOOD (NE–01)
May 12, 2021—Mr. Scott Peters, California, resigned from the Committee.
May 12, 2021—Mr. Troy Carter, Louisiana, was appointed to the Committee, H. Res. 384.
May 25, 2022—Mr. Antonio Delgado, New York, resignation from Congress, Congressional
Record Vol. 168, No. 90.
February 17, 2022—Mr. Jim Hagedorn, Minnesota, served on the Committee until he passed
away.
June 14, 2022—Mr. Scott Peters, California, was appointed to the Committee, H. Res. 1173.
July 12, 2022—Mr. Mike Flood, Nebraska, was appointed to the Committee, H. Res. 1225.
SUBCOMMITTEE MEMBERSHIPS
Subcommittee on Underserved, Agricultural, and Rural Business
Development
Jared Golden, Maine, Chairman
TROY CARTER, Louisiana CLAUDIA TENNEY, New York
SCOTT PETERS, California ROGER WILLIAMS, Texas
PETE STAUBER, Minnesota
MARIA SALAZAR, Florida
MIKE FLOOD, Nebraska
Subcommittee on Innovation, Entrepreneurship, and Workforce
Development
Jason Crow, Colorado, Chairman
CAROLYN BOURDEAUX, Georgia YOUNG KIM, California
CHRISSY HOULAHAN, Pennsylvania ROGER WILLIAMS, Texas
SHARICE DAVIDS, Kansas CLAUDIA TENNEY, New York
DEAN PHILLIPS, Minnesota ANDREW GARBARINO, New York
MARIE NEWMAN, Illinois MARIA SALAZAR, Florida
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(15)
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Subcommittee on Economic Growth, Tax, and Capital Access
Sharice Davids, Kansas, Chairwoman
MARIE NEWMAN, Illinois DAN MEUSER, Pennsylvania
JUDY CHU, California ANDREW GARBARINO, New York
DWIGHT EVANS, Pennsylvania YOUNG KIM, California
ANDY KIM, New Jersey BETH VAN DUYNE, Texas
CAROLYN BOURDEAUX, Georgia BYRON DONALDS, Florida
Subcommittee on Oversight, Investigations, and Regulations
Dean Phillips, Minnesota, Chairman
ANGIE CRAIG, Minnesota BETH VAN DUYNE, Texas
KWEISI MFUME, Maryland DAN MEUSER, Pennsylvania
JUDY CHU, California BYRON DONALDS, Florida
DWIGHT EVANS, Pennsylvania SCOTT FITZGERALD, Wisconsin
SHARICE DAVIDS, Kansas MIKE FLOOD, Nebraska
Subcommittee on Contracting and Infrastructure
Kweisi Mfume, Maryland, Chairman
JARED GOLDEN, Maine MARIA SALAZAR, Florida
ANDY KIM, New Jersey PETE STAUBER, Minnesota
MARIE NEWMAN, Illinois DAN MEUSER, Pennsylvania
TROY CARTER, Louisiana SCOTT FITZGERALD, Wisconsin
MIKE FLOOD, Nebraska
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AUTHORIZATION AND OVERSIGHT PLAN
Ms. Velázquez, Chair of the Committee on Small Business, sub-
mitted to the Committee on Oversight and Reform and the Com-
mittee on House Administration the following:
REPORT
Rule X, 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.
• Effectiveness of the capital access programs to assist and
create jobs in underserved businesses, including minority,
women, immigrant, veteran, and rural owners.
• Effectiveness of the Small Business Administration’s out-
reach and structure as it pertains to increasing assistance to
underserved and rural businesses and entrepreneurs.
• 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.
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(17)
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18
• Whether SBA disaster loan program and its oversight en-
sures that small businesses are able to revive and rebuild com-
munities.
• 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 Paycheck Protection Pro-
gram (PPP), EIDL Advance program, debt relief, and other
small business programs established by Pub. L. No. 116–136,
the Coronavirus Aid, Relief, and Economic Security (CARES)
Act, in providing emergency simulative capital to small busi-
nesses.
• Implementation of program clarifications and enhance-
ments made to PPP, EIDL, Microloan, 504/CDC, and other
SBA programs, including debt relief and fee reductions estab-
lished by Pub. L. No. 116–260, the Consolidated Appropria-
tions Act, 2021, to provide simulative capital to small busi-
nesses to retain and create jobs.
• 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.
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McCain National Defense Authorization Act for Fiscal Year
2019, Pub. L. No. 115–232.
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19
• 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
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.
• Examining effectiveness of enhancements to SBA entrepre-
neurial development programs established by Pub. L. No. 116–
136, the Coronavirus Aid, Relief, and Economic Security
(CARES) Act and Pub. L. No. 116–260, the Consolidated Ap-
propriations Act, 2021, in assisting small businesses access to
federal pandemic support resources.
• 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-
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ernment contracting programs overseen by the SBA including
the 8(a), HUBZone, service-disabled veteran, women-owned
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20
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).
• Examining effectiveness of 8(a) small business federal pro-
curement extension established by Pub. L. No. 116–260, the
Consolidated Appropriations Act, 2021.
• Implementation and efficacy of changes made in small
business federal procurement programs arising from the enact-
ment of the National Defense Authorization Acts for FYs 2012–
2021.
• 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.
• Implementation and efficacy of changes made to small
business programs from enactment of the William M. (Mac)
Thornberry National Defense Authorization Act for Fiscal Year
2021. Pub. L. No. 116–283.
• Monitor the migration of the veteran certification program
from the Department of Veterans Affairs to the Small Business
Administration.
• Examine the effects on the supply chain as they relate to
the pandemic and analyze the impact relief programs have had
on small government contractors.
In performing oversight, the Committee will focus its efforts on
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uncovering abuse and misuse of the small business designation to
obtain federal government contracts.
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21
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.
• Organizational structure of the agency to ensure it is
meeting its mission, prevent duplication of offices, modernize
the agency to meet the needs of the business community, par-
ticularly underserved and rural entrepreneurs.
• 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.
• Monitor the agency’s spending and efforts as it relates to
the pandemic response and fully account for COVID–19-pro-
vided appropriations.
• Review the SBA’s technology and data systems in an effort
to modernize, strengthen, and improve interoperability be-
tween platforms.
• Assess the agency’s efforts to secure their networks and
data systems.
In carrying out this oversight, the Committee will focus particu-
larly on streamlining and reorganizing of the agency’s operations to
provide maximum assistance to small business owners. Offices that
primarily provide assistance or advice to headquarters staff that do
not promote the interests of small businesses or protect the federal
government as a guarantor of loans will be recommended for cuts
or elimination.
OVERSIGHT OF FEDERAL REGULATORY AND PAPERWORK BURDENS
The Committee will conduct hearings and investigations into
burdensome federal rules, reporting and recordkeeping require-
ments affecting small businesses that may include any or all of the
following, as well as matters brought to the attention of the Com-
mittee subsequent to the filing of this Report:
• 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-
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ment and Budget and the Chief Counsel for Advocacy at the
Small Business Administration to ensure that they are ful-
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22
filling their mission to advocate vigorously on behalf of Amer-
ica’s small business owners in regulatory matters at federal
agencies.
• 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.
• Examining effectiveness of small business tax provisions
established by Pub. L. No. 116–136, the Coronavirus Aid, Re-
lief, and Economic Security (CARES) Act and Pub. L. No. 116–
260, the Consolidated Appropriations Act, 2021.
• 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.
• 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 federal health care policy (such as Medicare and Med-
icaid), as well as matters brought to the attention of the Com-
mittee subsequent to the filing of this Report:
• The availability of health insurance to small businesses
and their employees.
• Implementation and efficacy of changes made to health
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care policy through various laws enacted throughout the 116th
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23
Congress, including but not limited to the tax reform law, Pub.
L. No. 115–97.
• 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 and clean energy.
• Federal policies that increase dependence on renewable
and clean energy and decrease energy costs.
• Policies needed to incentivize production of renewable and
clean energy in the United States.
• Examination of commercialization of research in renewable
and clean energy.
• 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 and clean energy products.
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-
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partment of Commerce sufficiently protect the interests of
small businesses in the negotiation of free trade agreements.
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24
• 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:
• 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.
• Examine efforts to expand small farm, producer, and ranch
operations and encourage more women, minorities, young peo-
ple, and other non-traditional owners to start and invest in
small agricultural ventures.
• Investigate the federal government’s response to agricul-
tural business needs during the pandemic to ensure such firms
receive the necessary assistance to continue operations.
OVERSIGHT OF TECHNOLOGY AND INNOVATION POLICY
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The Committee will conduct hearings and investigations into
technology and telecommunications policies that may include any
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25
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.
• Investigate and strengthen the vulnerability of small busi-
ness cybersecurity and its impact on the broader federal gov-
ernment’s ability to protect itself against cyberattacks and
breaches.
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-
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-
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lowing, as well as matters brought to the attention of the Com-
mittee subsequent to the filing of this Report:
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26
• 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 requires that each standing committee, no later than January
2 of each odd-numbered year, submit to the House a report on the
activities of that committee, including a separate section summa-
rizing the legislative activities of that committee.
A. BUSINESS MEETINGS
On February 4, 2021, the Committee held an organizational
meeting to appoint Chairs and Ranking Members of the five sub-
committees and adopt Committee Rules.
On February 10, 2021, the Committee held a markup on the
Committee Print (Providing for reconciliation pursuant to S. Con.
Res. 5, the Concurrent Resolution on the Budget for Fiscal Year
2021).
On Thursday July 29, 2021, the Committee held a markup on
H.R. 4256, the Investing in Main Street Act of 2021, H.R. 4481, the
Small Business 7(a) Loan Agent Transparency Act, H.R. 4531, the
7(a) Loan Agent Oversight Act, H.R. 3469, the Veteran Entrepre-
neurship Training Act of 2021, H.R. 3462, the SBA Cyber Aware-
ness Act, H.R. 4515, the Small Business Development Center
Cyber Training Act of 2021, and H.R. 4513, the Small Business Ad-
vanced Cybersecurity Enhancements Act of 2021.
On Thursday, September 9, 2021, the Committee held a markup
on the Committee Print (Providing for reconciliation pursuant to S.
Con. Res. 14, the Concurrent Resolution on the Budget for Fiscal
Year 2022).
On February 3, 2022, the Committee held a markup on H.R.
6445, the Small Business Development Centers Improvement Act
of 2022, H.R. 6441, the Women’s Business Centers Improvement
Act of 2022, H.R. 6450, the SCORE for Small Business Act of 2022,
H.R. 4877, the One Stop Shop for Small Business Compliance Act
of 2021, and H.R. 6454, the Small Business Advocacy Improve-
ments Act of 2022.
On Wednesday, May 11, 2022, the Committee held a markup on
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H.R. 7352, the PPP and Bank Fraud Enforcement Harmonization
Act of 2022, H.R. 7334, the COVID–19 EIDL Fraud Statute of Lim-
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27
itations Act of 2022, H.R. 7622, the Small Business Workforce
Pipeline Act of 2022, H.R. 7664, the Supporting Small Business
and Career and Technical Education Act of 2022, H.R. 7670, the
Women-Owned Small Business program Transparency Act, H.R.
5879, the Hubzone Price Evaluation Preference Clarification Act of
2021, and H.R. 7694, the Strengthening Subcontracting for Small
Businesses Act of 2022.
On Wednesday, September 21, 2022, the Committee held a mark-
up on H. Res. 1298, Of inquiry directing the Secretary of Treasury
to transmit certain documents to the House of Representatives re-
lating to the role of the Department of Treasury in the Paycheck
Protection Program of the Small Business Administration and H.R.
8844, the STEP Improvement Act of 2022.
B. LEGISLATION
AMERICAN RESCUE PLAN ACT OF 2021
H.R. 1319
Summary
H.R. 1319 provides additional relief to address the continued im-
pact of the COVID–19 pandemic on the economy, public health,
state and local governments, individuals, and businesses. Title V
outlines the small business policies in the bill.
This title, as reported from the Committee, provides relief for
small businesses throughout the country adversely impacted by the
COVID–19 pandemic. It provides financial assistance in the form
of grants and forgivable loans to the hardest hit small businesses
and non-profits, strengthening outreach and education to small
firms located in hard to reach and underserved areas. It also pro-
vides additional administrative funding to the SBA to ensure swift
and strong implementation and oversight of these efforts. More
specifically, the title would provide:
• $7.25 billion for expanded eligibility of small nonprofits
and internet publishing organizations for the Paycheck Protec-
tion Program (PPP).
•$ 15 billion for adding more funds to the Targeted Eco-
nomic Injury Disaster Loan (EIDL) Advance program and ad-
dresses any potential funding shortfalls to ensure that remain-
ing eligible businesses can access the $10,000 grant.
• $25 billion for the creation and implementation of the Res-
taurant Revitalization Fund to allow SBA to make grants to el-
igible restaurants for specified costs such as payroll, oper-
ational expenses, and paid sick leave.
• $175 million to establish a Community Navigator Pilot
Program designed to strengthen outreach and education to
small businesses, particularly underserved firms, that were un-
able access relief programs.
• $1.25 billion for the Shuttered Venue Operators Grant pro-
gram, including a set aside for technical assistance to help eli-
gible entities apply for grants.
• $840 million for administrative costs to prevent, prepare
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and respond to the COVID–19 pandemic, including expenses
related to PPP, aid to venues, and grants to restaurants.
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• $460 million for the Economic Injury Disaster Loan pro-
gram, of which $70 million is for the cost of direct loans and
$390 million is for administrative costs.
• $25 million for SBA’s Office of Inspector General for over-
sight, to remain available until expended.
Legislative History
In the 116th Congress, the Committee on Small Business and its
Subcommittee held many hearings and forums on a wide variety of
subjects relevant to pandemic aid programs, including the following
hearings:
• The Impact of Coronavirus on America’s Small Businesses
(March 10, 2020)
• Member Day Hearing on COVID–19 Response and Recov-
ery: Committee on Small Business (April 23, 2020)
• Update from the Small Business Administration’s Re-
source Partners on the Implementation of the CARES Act
(May 7, 2020)
• A Conversation with SBA Paycheck Protection Program
Lenders (May 13, 2020)
• First Look: SBA Office of Inspector General Preliminary
Paycheck Protection Program Report (May 15, 2020)
• The Effects of COVID–19 on Rural Economies (May 20,
2020)
• Business Interruption Coverage: Are Policyholders Being
Left Behind? (May 21, 2020)
• Small Business Priorities for the Next Phase of Recovery:
How to Leverage the Small Business Development Center Net-
work (May 28, 2020)
• The Economic Injury Disaster Loan Program: A View from
Main Street (June 10, 2020)
• Paycheck Protection Program: Loan Forgiveness and Other
Challenges (June 17, 2020)
• An Overview of the Dynamic Between the Defense Produc-
tion Act and Small Contractors (June 24, 2020)
• The Economic Injury Disaster Loan Program: Status Up-
date from the Administration (July 1, 2020)
• Supply Chain Resiliency (July 2, 2020)
• Long-Lasting Solutions for a Small Business Recovery
(July 15, 2020)
• Putting America Back to Work: The Role of Workforce De-
velopment and Small Business Rehiring (July 16, 2020)
• Oversight of the Small Business Administration and De-
partment of Treasury Pandemic Programs (July 17, 2020)
• 21st Century SBA: An Analysis of SBA’s Technology Sys-
tems (July 22, 2020)
• Kick Starting Entrepreneurship and Main Street Economic
Recovery (September 10, 2020)
• Paycheck Protection Program: An Examination of Loan
Forgiveness, SBA Legacy Systems, and inaccurate Data (Sep-
tember 24, 2020)
• A Review of PPP Forgiveness (September 25, 2020)
• Taking Care of Business: How Childcare is Important for
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Regional Economies (September 30, 2020)
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29
• Preventing Fraud and Abuse of PPP and EIDL: An Update
with the SBA Office of Inspector General and the Government
Accountability Office (October 1, 2020)
On February 4, 2021, the Committee on Small Business held a
hearing on the State of the Small Business Economy in the Era of
COVID–19. Committee members heard how the pandemic relief
programs were helping small employers and what additional steps
the federal government could take to strengthen small business re-
siliency.
On February 10, 2021, the Committee approved its recommenda-
tions for the small business policies provided in the American Res-
cue Plan (Committee Print: providing for reconciliation pursuant to
S. Con. Res. 5, the Concurrent Resolution on the Budget for Fiscal
Year 2021). H.R. 1319, which included the Committee’s rec-
ommendations, was introduced on February 24, 2021, by Rep-
resentative John Yarmuth (D–KY). The bill passed the House on
February 27, 2021, by a vote of 219 to 212 (Roll Call No. 49). H.R.
1319 was received in the Senate and read twice. On March 6, 2021,
the bill passed the Senate with an amendment by a vote of 50–49
(Record Vote No. 110). On March 10, 2021, the House voted 220 to
211 to approve the bill as amended by the Senate (Roll Call No.
72). The bill was signed into law by President Biden on March 11,
2021 (Pub. L. No. 117–2).
SBA CYBER AWARENESS ACT
H.R. 3462
Summary
H.R. 3462, requires the SBA to issue annual reports assessing its
information technology (IT) and cybersecurity infrastructure and
notify Congress and affected parties of cyber incidents when they
occur. Specifically, the bill would require SBA to issue annual re-
ports, which must include the following information: (1) an assess-
ment of SBA’s IT and cybersecurity infrastructure; (2) its strategy
to improve cybersecurity protections; (3) a detailed account of any
IT equipment of SBA that was manufactured by an entity with a
principal place of business in the People’s Republic of China; and
4) an account of any cybersecurity risk or incident occurring within
the two years preceding the date the report is submitted, and
SBA’s actions to remediate the cybersecurity risk or incident.
In addition, if a cybersecurity risk or incident occurred, SBA is
instructed to notify the House and Senate small business commit-
tees (committees) within 7 days. And within 30 days notify the in-
dividuals and small business concerns affected by the cybersecurity
risk or incident and submit a report summarizing how the cyberse-
curity risk or incident occurred and how many parties were af-
fected to the committees.
Legislative History
H.R. 3462 was introduced on May 21, 2021, by Representatives
Jason Crow (D–CO) and Young Kim (R–CA). The bill was reported
by the Committee on Small Business on October 12, 2021, and
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passed the House on November 2, 2021, under Suspension of the
Rules, by a vote of 423 to 0 (Roll Call No. 350). H.R. 3462 was re-
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30
ceived in the Senate and read twice and referred to the Committee
on Small Business and Entrepreneurship on November 3, 2021. On
February 17, 2022, the Committee on Small Business and Entre-
preneurship reported H.R. 3462, without amendment, and the bill
was placed on the Senate Legislative Calendar under General Or-
ders (Calendar No. 281). On September 28, 2022, the measure
passed the Senate with an amendment in the nature of a sub-
stitute and was sent to the House the following day. On December
6, 2022, the House concurred with the Senate amendment to the
measure, and H.R 3462 was approved by a vote of 417–0 (Roll no.
506). The bill was signed into law by President Biden on December
21, 2022.
VETERAN ENTREPRENEURSHIP TRAINING ACT OF 2021
H.R. 3469
Summary
H.R. 3469 would codify for five years the Boots to Business pro-
gram. The Boots to Business program is a two day, in person, en-
trepreneurship program offered by the Small Business Administra-
tion (SBA) as part of the Department of Defense’s Transition As-
sistance program (TAP). Transitioning service members and their
spouses are eligible to receive counseling and training services re-
lated to self-employment, including a presentation regarding self-
employment and ownership of a small business concern, an online
self-study course focused on entrepreneurship, an in-person class-
room introducing self-employment and ownership, and an in-depth
training regarding the creation of a business plan. To carry out the
program, the bill allows the Administrator to make grants to Vet-
eran Business Outreach Centers and also make the program mate-
rials available to both the Department of Defense and the Sec-
retary of Veterans Affairs. Lastly, H.R. 3469 requires SBA to sub-
mit an annual report evaluating the performance and effectiveness
of the program to the Senate Committee on Small Business and
Entrepreneurship and the House Committee on Small Business.
Legislative History
H.R. 3469 was introduced on May 21, 2021, by Representatives
Bradley Scott Schneider (D–IL) and Roger Williams (R–TX). The
bill was reported from the Small Business Committee on October
12, 2021, and passed the House on November 2, 2021, under Sus-
pension of the Rules, by a vote of 418 to 2 (Roll Call No. 348). H.R.
3469 was received in the Senate and read twice and referred to the
Committee on Small Business and Entrepreneurship on November
3, 2021.
INVESTING IN MAIN STREET ACT OF 2021
H.R. 4256
Summary
H.R. 4256 amends the Small Business Investment Act of 1958 to
authorize certain banking entities to invest up to 15% of their cap-
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ital and surplus in one or more small business investment compa-
nies (SBICs) or any entity established to invest solely in SBICs,
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subject to approval of the appropriate federal banking agency. Spe-
cifically, the bill would allow certain banks and savings associa-
tions to increase the amount that they invest in SBICs.
Legislative History
H.R. 4256 was introduced on June 30, 2021, by Representatives
Judy Chu (D–CA) and Andrew Garbarino (R–NY). The bill was re-
ported by the Small Business Committee on October 12, 2021, and
passed the House on November 2, 2021, under Suspension of the
Rules, by a vote of 413 to 10 (Roll Call No. 349). H.R. 4256 was
received in the Senate and read twice and referred to the Com-
mittee on Banking, Housing, and Urban Affairs on November 3,
2021.
SMALL BUSINESS 7(A) LOAN AGENT TRANSPARENCY ACT
H.R. 4481
Summary
H.R. 4481 requires the SBA to conduct oversight of 7(a) loan
agents by establishing a registration system with unique identifiers
for 7(a) agents to help the Office of Credit Risk Management
(OCRM) track and evaluate the performance of 7(a) loans gen-
erated through loan agent activity. H.R. 4481 also enhances
OCRM’s and SBA Lender Oversight Committee’s enforcement au-
thority with respect to loan agents.
Legislative History
H.R. 4481 was introduced on July 16, 2021, by Representatives
Dean Phillips (D–MN) and Daniel Meuser (R–PA). The bill was re-
ported by the Small Business Committee on October 12, 2022, and
passed the House on November 2, 2021, under Suspension of the
Rules, by a vote of 407 to 9 (Roll Call No. 351). H.R. 4481 was re-
ceived in the Senate and read twice and referred to the Committee
on Small Business and Entrepreneurship.
SMALL BUSINESS ADVANCED CYBERSECURITY ENHANCEMENTS ACT OF
2021
H.R. 4513
Summary
H.R. 4513 requires the SBA to establish a central small business
cybersecurity assistance unit within the SBA and a regional cyber-
security-assistance unit within each Small Business Development
Center (SBDC). These units would allow small businesses to com-
municate cyber threats and defensive measures with the federal
government and prohibit any cause of action against a small busi-
ness for such communication. The national cybersecurity and com-
munications integration center shall have access to all cyber threat
indicators or defensive measures within the central, national, and
regional small cybersecurity assistance units.
In addition, SBA would be required to seek input from the Office
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of Advocacy to ensure that any policies and procedures adopted do
not add regulatory burdens onto small business concerns but lever-
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age resources and relationships to assist small business concerns in
improving cybersecurity practices.
Legislative History
H.R. 4513 was introduced on July 19, 2021, by Representative
Byron Donalds (R–FL), Chairwoman Nydia Velázquez (D–NY), and
Representatives Steve Chabot (R–OH) and Chrissy Houlahan (D–
PA). On October 12, 2021, the Committee on Small Business re-
ported H.R. 4513, without amendment, and the bill was placed on
the Union Calendar (Calendar No. 102).
SMALL BUSINESS DEVELOPMENT CENTER CYBER TRAINING ACT OF 2021
H.R. 4515
Summary
H.R. 4515 requires the SBA to establish a cyber counseling cer-
tification program for certifying at least 5 or 10% of the total num-
ber of employees of lead SBDCs to provide free cybersecurity train-
ing to small businesses. In addition, the SBA would be required to
reimburse SBDCs for costs related to the certification program, up
to $350,000.
Legislative History
H.R. 4515 was introduced on July 19, 2021, by Representatives
Andrew Garbarino (R–NY), Dwight Evans (D–PA), Steve Chabot
(R–OH), and Chrissy Houlahan (D–PA). The bill was reported the
Small Business Committee on October 12, 2021, and passed the
House on November 2, 2021, under Suspension of the Rules, by a
vote of 409 to 14 (Roll Call No. 353). H.R. 4515 was received in the
Senate and read twice and referred to the Committee on Small
Business and Entrepreneurship on November 3, 2021. The Senate
Small Business and Entrepreneurship Committee reported a simi-
lar bill on May 25, 2022, and the Senate approved S. 1687 on Sep-
tember 28, 2022 by a voice vote. On December 6, 2022, the House
of Representatives approved S. 1687, as amended by a vote of 380–
46. On December 14, 2022, the Senate agreed to the House amend-
ment to S. 1687 by unanimous consent.
7(A) LOAN AGENT OVERSIGHT ACT
H.R. 4531
Summary
H.R. 4531 requires the SBA’s Office of Credit Risk Management
(OCRM) to submit an annual report to Congress regarding the per-
formance and risk associated with 7(a) loans generated by loan
agents, who provide fee-based referral and loan application serv-
ices. The report must include: (1) the number and type of agents
assisting applicants for 7(a) loans; (2) the number of fraudulent
loans made for which an applicant used the services for a 7(a)
agent; and (3) the number and aggregate dollar value of referral
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fees paid to 7(a) agents).
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Legislative History
H.R. 4531 was introduced on July 19, 2021, by Representatives
Daniel Meuser (R–PA) Dean Phillips (D–MN). The bill was re-
ported by the Small Business Committee on October 12, 2021, and
passed the House on November 2, 2021, under Suspension of the
Rules, by a vote of 411 to 9 (Roll Call No. 352). H.R. 4531 was re-
ceived in the Senate and read twice and referred to the Committee
on Small Business and Entrepreneurship on November 3, 2021.
INFLATION REDUCTION ACT OF 2022
H.R. 5376
Summary
H.R. 5376 provides for deficit reduction through corporate tax re-
form, an excise tax on the repurchase of corporate stock, and fund-
ing the Internal Revenue Service and improving taxpayer compli-
ance. It also includes prescription drug pricing reform by lowering
prices through drug price negotiation, providing prescription drug
inflation rebates, including maximum out-of-pocket cap for Medi-
care beneficiaries, and delaying the implementation of prescription
drug rebate rule.
Additionally, there are specific provisions for Affordable Care Act
subsidies, investments in energy security and clean energy incen-
tives, rural development and agricultural credit with the Rural En-
ergy for America program, and funding for the Department of
Housing and Urban Development for loans and grants. Funding is
also provided for coastal and tribal communities to address climate
change, the Department of Energy for programs regarding energy
rebates and efficiency, emergency response and preparedness, nat-
ural resource matters, and the renewable fuel program through the
Environmental Protection Agency.
Legislative History
On September 9, 2021, the Committee approved its small busi-
ness policy recommendations for H.R. 5376 (Committee Print: pro-
viding for reconciliation pursuant to S. Con. Res. 14, the Concur-
rent Resolution on the Budget for Fiscal Year 2022). H.R. 5376,
which included the Committee’s recommendations, was introduced
on September 27, 2021, by Representative John Yarmuth (D–KY).
The bill passed the House on November 19, 2021, by a vote of 220
to 213 (Roll Call No. 385). H.R. 5376 was received in the Senate
and read twice. On August 7, 2022, the bill passed the Senate with
an amendment by a vote of 51–50 (Record Vote No. 325). The Sen-
ate’s amendment to H.R. 5376 removed the small business policy
recommendations approved by the Committee. On August 12, 2022,
the House voted 220 to 207 to approve the bill as amended by the
Senate (Roll Call No. 420). The bill was signed into law President
Joe Biden on August 16, 2022 (Pub. L. No. 117–169).
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ONE STOP SHOP FOR SMALL BUSINESS COMPLIANCE ACT OF 2021
H.R. 4877
Summary
H.R. 4877 requires the Small Business and Agriculture Regu-
latory Enforcement Ombudsman to create a centralized website
with hyperlinks to the small business compliance guides for each
federal agency and contact information for individuals who can as-
sist small entities with each guide. In addition, the bill would re-
quire the Ombudsman to include an assessment of federal agency
compliance with Section 212 of the Small Business Regulatory En-
forcement Fairness Act of 1996.
Legislative History
H.R. 4877 was introduced on July 30, 2021, by Representatives
Antonio Delgado (D–NY) and Beth Van Duyne (R–TX). The bill was
reported by the Small Business Committee on March 7, 2022, and
passed by the House on April 26, 2022, under Suspension of the
Rules, by a voice note. H.R. 4877 was received in the Senate and
read twice and referred to the Committee on Small Business and
Entrepreneurship on April 27, 2022. On September 28, 2022, the
bill passed the Senate without amendment by voice vote. The bill
was signed into law by President Biden on October 10, 2022 (Pub.
L. 117–118).
WOMEN’S BUSINESS CENTERS IMPROVEMENT ACT OF 2022
H.R. 6441
Summary
H.R. 6441 strengthens the Women’s Business Center program
(WBCs) to ensure that women entrepreneurs across the country
have access to free or low-cost counseling and training services.
The bill extends the authorization for the program for four years,
through Fiscal Year 2025, increasing the authorization level to
$31.5 million per year. The bill would raise the cap on individual
center grants from $150,000 to $300,000, establish an accreditation
program to improve the quality of services provided by centers, rec-
ognize the Association of Women’s Business Centers and improve
coordination between the Association and SBA, and enhance SBA’s
Office of Women’s Business Ownership.
Legislative History
H.R. 6441 was introduced on January 20, 2022, by Representa-
tives Sharice Davids (D–KS) and Claudia Tenney (R–NY). The bill
was reported by the Small Business Committee on March 7, 2022,
and passed the House on April 26, 2022, under Suspension of the
Rules, by a voice note. H.R. 6441 was received in the Senate and
read twice and referred to the Committee on Small Business and
Entrepreneurship on April 27, 2022.
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SMALL BUSINESS DEVELOPMENT CENTERS IMPROVEMENT ACT OF 2022
H.R. 6445
Summary
H.R. 6445 modernizes the Small Business Development Center
network to enable SBDCs to deliver management and technical as-
sistance to small businesses through their nationwide network of
62 lead centers, and more than 900 sub-centers. The bill extends
the authorization for four years, through Fiscal Year 2025, increas-
ing the authorization level to $175 million per year. The bill allows
SBDCs to advertise and market its services, collect fees for part-
nership activities, and update its operations. The bill also requires
a comprehensive annual report to measure the effectiveness of the
program and its services.
Legislative History
H.R. 6445 was introduced on January 20, 2022, by Representa-
tives Jared Golden (D–ME) and the late Jim Hagedorn (R–MN).
The bill was reported by the Small Business Committee on March
8, 2022, and passed the House on April 26, 2022, under Suspension
of the Rules, by a voice note. H.R. 6445 was received in the Senate
and read twice and referred to the Committee on Small Business
and Entrepreneurship on April 27, 2022.
SCORE FOR SMALL BUSINESS ACT OF 2022
H.R. 6450
Summary
H.R. 6450 provides oversight of SCORE, the nation’s largest net-
work of volunteer expert business mentors. The bill authorizes the
program for two years, through Fiscal Year 2023, increasing the
authorization level to $13.5 million per year. The bill requires the
organization to align salaries and performance awards with federal
standards, devise policies to protect whistleblowers, and promote
diversity by recruiting diverse volunteers for each chapter of the
program and provides services to rural and underserved commu-
nities. In addition, the SBA is required to submit an annual report
on the performance and effectiveness of the SCORE program to the
Senate Committee on Small Business and Entrepreneurship and
the House Committee on Small Business.
Legislative History
H.R. 6450 was introduced on January 20, 2022, by Representa-
tives Young Kim (R–CA) and Angie Craig (D–MN). The bill was re-
ported by the Small Business Committee on March 7, 2022, and
passed the House on April 26, 2022, under Suspension of the Rules,
by a voice vote. H.R. 6450 was received in the Senate and read
twice and referred to the Committee on Small Business and Entre-
preneurship on April 27, 2022.
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SMALL BUSINESS ADVOCACY IMPROVEMENTS ACT OF 2022
H.R. 6454
Summary
H.R. 6454 expands and clarifies the primary functions and addi-
tional duties of the Office of Advocacy, which include examining the
role of small businesses in the international economy. Also, the Of-
fice would be required to represent the views and interests of small
business before foreign governments and international entities.
Legislative History
H.R. 6454 was introduced on January 20, 2022, by Ranking
Member Blaine Luetkemeyer (R–MO) and Representative Troy
Carter (D–LA). The bill was reported by the Small Business Com-
mittee on March 7, 2022, and passed the House on April 26, 2022,
under Suspension of the Rules, by a voice note. H.R. 6454 was re-
ceived in the Senate and read twice and referred to the Committee
on Small Business and Entrepreneurship on April 27, 2022
RELIEF FOR RESTAURANTS AND OTHER HARD HIT SMALL BUSINESSES
ACT OF 2022
H.R. 3807
Summary
H.R. 3807 replenishes the Restaurant Revitalization Fund and
creates a separate industry neutral relief program for small busi-
nesses that were hard-hit by the pandemic. In the American Res-
cue Plan, Congress provided $28.6 billion for the Restaurant Revi-
talization Fund, which provided relief to more than 100,000 estab-
lishments nationwide. However, more than 278,000 applications
were filed, requesting a total of $72.2 billion. The bill provides $42
billion to replenish the Restaurant Revitalization Fund, allowing
the SBA to process the applications and award grants to the more
than 150,000 eligible entities that originally applied for funding.
The bill provides $13 billion for the newly established Hard Hit
Industries Award program. The program offers grants to small
businesses who have suffered a pandemic-related revenue loss of
40%. Funds may be used for expenses including mortgage, rent,
utility payments, and payroll. The priority must be those who have
experienced a loss of at least 80% and the second priority must be
those that experienced a loss of at least 60%. The Restaurant Revi-
talization Fund and the Hard-Hit Industries Award program will
be funded by monies reclaimed, seized, or returned to the Federal
government, primarily from bad actors attempting to defraud the
programs.
The bill also extends to March 11, 2023, the timeline for which
Shuttered Venue Operators Grant recipients can use grant funds
to cover their expenses.
Legislative History
H.R. 3807 was introduced on June 11, 2021, by Representatives
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Earl Blumenauer (D–OR) and Brian Fitzpatrick (R–PA) and re-
ferred to the Small Business Committee. The House passed the
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House on April 7, 2022, by a vote of 223 to 203 (Roll Call No. 123).
On May 25, 2022, the bill was read the second time and placed on
the Senate Legislative Calendar under General Orders (Calendar
No. 387).
COVID–19 EIDL FRAUD STATUTE OF LIMITATIONS ACT OF 2022
H.R. 7334
Summary
H.R. 7334 establishes a 10-year statute of limitations for crimi-
nal charges and civil enforcement against borrowers who engage in
fraud in all COVID–19 Economic Injury Disaster Loan programs.
Legislative History
H.R. 7334 was introduced on March 31, 2022, by Ranking Mem-
ber Blaine Luetkemeyer (R–MO) and Chairwoman Nydia
Velázquez (D–NY). The bill was reported by the Small Business
Committee on May 17, 2022, and passed the House on June 8,
2022, under Suspension of the Rules, by a vote of 416 to 3 (Roll
Call No. 247). The bill passed the Senate without amendment by
voice vote on July 28, 2022. On August 5, 2022, H.R. 7334 was
signed into law by President Biden (Pub. L. No. 117–165).
PPP AND BANK FRAUD ENFORCEMENT HARMONIZATION ACT OF 2022
H.R. 7352
Summary
H.R. 7352 establishes a 10-year statute of limitations for crimi-
nal charges and civil enforcement against borrowers who engage in
fraud in the Paycheck Protection Program loan.
Legislative History
H.R. 7352 was introduced on March 31, 2022, by Chairwoman
Nydia Velázquez (D–NY) and Ranking Member Blaine Luetke-
meyer (R–MO). The bill was reported by the Small Business Com-
mittee on May 17, 2022, and passed the House on June 8, 2022,
under Suspension of the Rules, by a vote of 421 to 0 (Roll Call No.
246). The bill passed the Senate without amendment by voice vote
on July 28, 2022. On August 5, 2022, H.R. 7352 was signed into
law by President Biden (Pub. L. No. 117–166).
SMALL BUSINESS WORKFORCE PIPELINE ACT OF 2022
H.R. 7622
Summary
H.R. 7622 requires SBA to add work-based learning and appren-
ticeship program assistance to the list of services that must be pro-
vided by small business development centers. The SBA must pro-
vide information and assistance to small business concerns, includ-
ing disseminating relevant information from the Department of
Labor and other Federal agencies on how to establish and improve
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work-based learning opportunities, apprenticeship programs, pre-
apprenticeship programs, and job training programs.
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Legislative History
H.R. 7622 was introduced on April 28, 2022, by Representatives
Jason Crow (D–CO) and Scott Fitzgerald (R–WI). The bill was re-
ported by the Small Business Committee and passed the House on
June 8, 2022, under Suspension of the Rules, by a vote of 368 to
52 (Roll Call No. 249). H.R. 7622 was received in the Senate and
read twice and referred to the Committee on Small Business and
Entrepreneurship on June 9, 2022.
SUPPORTING SMALL BUSINESS AND CAREER AND TECHNICAL
EDUCATION ACT OF 2022
H.R. 7664
Summary
H.R. 7664 directs SBDCs and WBCs to provide support to small
businesses looking to use career and technical education programs
to meet hiring needs and help recent graduates start small busi-
nesses.
Legislative History
H.R. 7664 was introduced on May 3, 2022, by Representatives
Roger Williams (R–TX) and Marie Newman (D–IL). The bill was
reported by the Small Business Committee and passed the House
on June 8, 2022, under Suspension of the Rules, by a vote of 399
to 18 (Roll Call No. 250). H.R. 7664 was received in the Senate and
read twice and referred to the Committee on Small Business and
Entrepreneurship on June 9, 2022.
WOSB PROGRAM TRANSPARENCY ACT
H.R. 7670
Summary
H.R. 7670 requires SBA to submit an annual report to the Sen-
ate Committee on Small Business and Entrepreneurship and the
House Committee on Small Business on the Women-Owned Small
Business Federal Contracting program. Specifically, the report
should include detailed information pertaining to the amount of
contracting dollars awarded through the program, the number of
certifications being issued, the amount of program examinations
being conducted, the number of companies being decertified, and
the number of contracts incorrectly awarded under industries or
NAICS codes ineligible to the program, as well as any actions
taken by SBA to properly train agency personnel.
Legislative History
H.R. 7670 was introduced on May 6, 2022, by Representatives
Chrissy Houlahan (D–PA) and Claudia Tenney (R–NY). The bill
was reported by the Small Business Committee on May 17, 2022,
and passed by the House on June 8, 2022, under Suspension of the
Rules, by a vote of 402 to 19 (Roll Call No. 251). H.R. 7670 was
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received in the Senate and read twice and referred to the Com-
mittee on Small Business and Entrepreneurship on June 9, 2022,
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STRENGTHENING SUBCONTRACTING FOR SMALL BUSINESS ACT OF 2022
H.R. 7694
Summary
H.R. 7694 requires federal agencies to consider prior compliance
with subcontracting plans when evaluating offers for contracts.
Legislative History
H.R. 7694 was introduced on May 10, 2022, by Representatives
Pete Stauber (R–MN) and Kweisi Mfume (D–MD). The bill was ap-
proved by the Small Business Committee on May 17, 2022, and
passed the House on June 8, 2022, under Suspension of the Rules
by a vote of 411 to 11 (Roll Call No. 252). H.R. 7694 was received
in the Senate and read twice and referred to the Committee on
Small Business and Entrepreneurship on June 9, 2022.
HUBZONE PRICE EVALUATION PREFERENCE CLARIFICATION ACT OF
2021
H.R. 5879
Summary
H.R. 5879 clarifies that the HUBZone price evaluation preference
applies to orders.
Legislative History
H.R. 5879 was introduced on November 4, 2021, by Representa-
tives Marie Newman (D–IL) and Maria Elvira Salazar (R–FL). The
bill was reported by the Small Business Committee on May 17,
2022, and passed the House on June 8, 2022, under Suspension of
the Rules, by a vote of 359 to 61 (Roll Call No. 248). H.R. 5879 was
received in the Senate and read twice and referred to the Com-
mittee on Small Business and Entrepreneurship on June 9, 2022.
COLLATERAL REQUIREMENTS FOR DISASTER LOANS ACT
H.R. 8482
Summary
H.R. 8482 makes permanent the increased threshold limits for
the minimum major-disaster loan amount for which the SBA may
require collateral.
Legislative History
H.R. 8482 was introduced on July 21, 2022, by Representatives
Nydia Velázquez (D–NY) and Garret Graves (R–LA). On July 21,
2022, the bill was referred to the House Committee on Small Busi-
ness. A version of H.R. 8482 was included as an amendment to
H.R. 5118, the ‘‘Continental Divide Trail Completion Act.’’ H.R.
5118 was approved by the House on July 29, 2022, by a vote of 218
to 199 (Roll Call No. 413). H.R. 5118 was received in the Senate
on August 2, 2022.
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OF INQUIRY DIRECTING THE SECRETARY OF TREASURY TO TRANSMIT
CERTAIN DOCUMENTS TO THE HOUSE OF REPRESENTATIVES RELAT-
ING TO THE ROLE OF THE DEPARTMENT OF THE TREASURY IN THE
PAYCHECK PROTECTION PROGRAM OF THE SMALL BUSINESS ADMIN-
ISTRATION
H. RES. 1298
Summary
H. Res. 1298 directs the Department of Treasury to provide the
House of Representatives with any documents and communications
about the Treasury’s role with respect to the Paycheck Protection
Program, including those related to the requirement for the Sec-
retary of the Treasury to testify before the Small Business Com-
mittee.
Legislative History
H. Res. 1298 was introduced on July 28, 2022, by Representative
Blaine Luetkemeyer (R–MO). On September 21, 2022, the Small
Business Committee held a mark-up and ordered the Resolution, as
amended, to be reported without recommendation by a vote of 25–
0. The first adopted amendment was offered by Representative Van
Duyne (R–TX) and request all documents and communications re-
lating to the total amount of funding recovered from fraudulently
obtained COVID–19 relief, specifically COVID EIDLs, EIDL Ad-
vances, Targeted Advances, and the Restaurant Revitalization
Fund. The amendment by Representative Van Duyne was adopted
by a vote of 17–4. The second adopted amendment was offered by
Representative Meuser (D–PA) and requests all documents and
communications relating to Treasury’s actions to assist small busi-
nesses with addressing the impact of federal regulations. The
amendment by Representative Meuser was adopted by a vote of
12–8. The Small Business Committee reported the Resolution as
amended on September 28, 2022. On September 28, 2022, the bill
was placed on the House Calendar, Calendar No. 123.
STEP IMPROVEMENT ACT OF 2022
H.R. 8844
Summary
H.R. 8844 modernizes and strengthens the State Trade Expan-
sion Program (STEP), which seeks to increase the number of small
businesses that export and raise the value of existing small busi-
ness exporters. The bill extends the authorization for four years,
through Fiscal Year 2026, at a level of $30 million per year. It also
makes improvements to the grant process. Specifically, the bill
would create a standardized application process, increase flexibility
for rant recipients, improve communicate annually between SBA
and the States. It would also require the SBA to collect perform-
ance metrics and report to Congress annually.
Legislative History
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H.R. 8844 was introduced on September 15, 2022, by Representa-
tives Dwight Evans (D–PA), Young Kim (R–CA), Marie Newman
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41
(D–IL), and Mike Flood (R–NE). On September 20, 2022, the bill
was ordered to be reported by voice vote. On December 6, 2022, the
House of Representatives approved the bill, under Suspension of
the Rules, by a vote of 380–46. H.R. 8844 was received in the Sen-
ate and read twice and referred to the Committee on Small Busi-
ness and Entrepreneurship on December 7, 2022.
SBIR AND STTR EXTENSION ACT OF 2022
S. 4900
Summary
S. 4900 reauthorizes and modifies the Small Business Innovation
Research (SBIR) program, the Small Business Technology Transfer
(STTR) Program, and related pilot programs for three years,
through Fiscal Year of 2025. Specifically, the bill expands federal
research security practices within the SBIR and STTR programs to
protect against technology theft by malign foreign governments, re-
quires the Department of Defense to increase the use of open topic
solicitations to attract new ideas, raise the performance standards
for more experienced firms, and requires new reports by the SBA
Office of Inspector General and Government Accountability Office.
Legislative History
S. 4900 was introduced in the Senate on September 20, 2022, by
Chairman Benjamin Cardin (D–MD) and Senator Joni Ernst (R–
IA). The bill was read twice, considered, read the third time, and
passed without amendment by unanimous consent on September
20, 2022. The bill passed the House, under Suspension of the
Rules, by a vote of 415 to 9 (Roll Call No. 461) on September 29,
2022. S. 4900 was signed into law by President Biden on Sep-
tember 30, 2022 (Pub. L. No. 117–183.)
In addition, a provision to extend the SBIR, STTR, and pilot pro-
grams for two years was included in the National Defense Author-
ization Act for Fiscal Year 2023. Another provision to extend the
programs for five years was included in H.R. 4521, United States
Innovation and Competition Act.
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OVERSIGHT SUMMARY
Clause 1(d) of Rule XI of the Rules of the House of Representa-
tives requires each standing committee, not later than January 2
of each odd numbered year, to submit to the House a report on the
activities of that committee, including a separate section summa-
rizing the oversight activities of that committee. The report shall
also include a delineation of any hearings held pursuant to clauses
2(n), (o), or (p) of Rule XI related to waste, fraud and abuse in gov-
ernment programs.
PART A
FULL COMMITTEE HEARINGS
FIRST SESSION OF THE 117TH CONGRESS
STATE OF THE SMALL BUSINESS ECONOMY IN THE ERA OF COVID–19
On Thursday, February 4, 2021, the Committee on Small Busi-
ness held a hybrid hearing titled, ‘‘State of the Small Business
Economy in the Era of COVID–19.’’ The hearing allowed Members
to assess the state of the small business economy after nearly a
year into the global COVID–19 pandemic. Members heard how re-
lief efforts such as the Paycheck Protection Program (PPP), Eco-
nomic Injury Disaster Loan program (EIDL), and Shuttered Venue
Operator program (SVOG) have benefited small firms. Members
also heard about potential improvements that may be needed in
these programs along with other policies that will be needed to
spur equitable recovery from COVID–19 for all small businesses in
2021.
Witnesses on the panel included: Dr. Robert W. Fairlie, Pro-
fessor, Department of Economics, University of California-Santa
Cruz, Santa Cruz, CA; Ms. Sharon Pinder, President & CEO, Cap-
ital Region Minority Supplier Development Council, Silver Spring,
MD; Mr. Stephen Schoaps, Owner, Strother Cinema, Seminole, OK;
and Ms. Karen Kerrigan, President & CEO, SBE Council, Vienna,
VA.
In his testimony, Dr. Fairlie testified regarding his recent re-
search on the impact of COVID–19 on small businesses owned by
people of color, showing that over 40 percent of Black-owned busi-
nesses and over 30 percent of Latino-owned businesses closed due
to the pandemic. Ms. Pinder testified that fully leveraging the De-
fense Production Act and implementing ‘‘Buy American’’ policies
could help the development and growth of minority-owned busi-
nesses, especially in the area of advanced manufacturing. In his
testimony, Mr. Schoaps spoke of the hardships COVID–19 has pre-
sented for his small two-screen theater in rural Oklahoma, and
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about the measures he’s taken to generate some revenue in compli-
ance with social distancing guidelines. Ms. Kerrigan’s testimony
presented numerous surveys conducted of small business owners on
the sustainability of their businesses in the COVID–19 era, and on
how their needs as entrepreneurs have changed in order to adapt.
THE NEXT STEPS FOR THE PAYCHECK PROTECTION PROGRAM
On Wednesday, March 10, 2021, the Committee on Small Busi-
ness held a hybrid hearing titled, ‘‘The Next Steps for the Paycheck
Protection Program.’’ The hearing provided an overview of the Pay-
check Protection Program (PPP) and an update for Members on the
current state of the First and Second Draw loans, as well as loan
forgiveness. Members also heard feedback on the impact of the five
programmatic changes recently announced and suggestions from
stakeholders regarding the future of the program.
Witnesses on the panel included: Ms. Hilda Kennedy, Founder &
President, AmPac Tri-State CDC, Ontario, CA; Ms. Lisa Bombon,
President & CEO, Unico Communications, Inc., San Antonio, TX;
Ms. Lisa Simpson, Vice President of Firm Services, American Insti-
tute of CPAs, Durham, NC; and Ms. Alice Frazier, President &
CEO, Bank of Charles Town, Charles Town, WV.
In her testimony, Ms. Kennedy discussed some program changes
that would greatly benefit Schedule C filers (sole proprietors) and
allow them more time to complete and submit a loan application,
given the recent changes made to benefit these applicants. Her tes-
timony also discussed the importance of the Federal Reserve’s PPP
Liquidity Facility for helping CDCs and other CDFIs make more
PPP loans. Ms. Bombı́n’s testimony touched upon the local network
of CDFIs, small banks, SBDCs, and other small business resources
she relied on to navigate the PPP and eventually find a lender who
would make a loan to her microbusiness. Ms. Simpson’s testimony
identified some of the ongoing challenges facing the program, in-
cluding error codes resulting from front-end anti-fraud checks, and
the needlessly long time it takes to clear loan applications with
holds. Ms. Frazier testified on the approaching March 31 applica-
tion deadline, and concerns that some loan applications submitted
on time but still in SBA’s approval queue may not be funded before
the deadline.
UPDATE ON SBA’S PANDEMIC RESPONSE PROGRAMS
On Tuesday, April 20, 2021, the Committee on Small Business
held a hybrid hearing titled, ‘‘Update on SBA’s Pandemic Response
Programs.’’ The hearing provided the Committee the opportunity to
hear from the Small Business Administration’s (SBA) Office of In-
spector General (OIG) and the Government Accountability Office
(GAO) about the lack of internal controls and potential for fraud
in the Paycheck Protection Program (PPP) and the Economic Injury
Disaster Loan (EIDL) programs.
Witnesses on the panel included: Dr. William Shear, the Director
of Financial Markets and Community Investment for GAO and Mr.
Hannibal ‘‘Mike’’ Ware, Inspector General for the SBA.
Dr. Shear discussed how SBA put limited controls in place in the
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PPP and EIDL programs, leaving both programs susceptible to
fraud. He also discussed how SBA has begun to take steps to ad-
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45
dress the limited controls, including developing a loan review proc-
ess, and estimating improper payment rates, develop and imple-
ment an oversight plan. But he did state that SBA has yet to con-
duct portfolio-level analysis of the EIDL program, conduct a formal
fraud risk assessment for both PPP and EIDL, and address the
issues identified by SBA’s auditor, KPMG. He did note that SBA
has been more responsive to GAO in recent months and that the
agency is providing GAO with data. Mr. Ware discussed the OIG’s
recommendations, stated that 23 OIG recommendations still re-
mained open, but emphasized that the agency was taking steps to
close-out these recommendations and that 20 of the OIG rec-
ommendations had been resolved. He also discussed the actions of
the OIG to increase staffing and facilitate recovery of fraudulent
PPP and EIDL loans.
HARNESSING THE POWER OF IMMIGRANT-OWNED BUSINESSES TO
BUILD BACK BETTER
On Wednesday, April 28, 2021, the Committee on Small Business
held a remote hearing titled, ‘‘Harnessing the Power of Immigrant-
owned Businesses to Build Back Better.’’ The hearing provided
Members the opportunity to hear from experts, SBA Resource Part-
ners, and small business owners about the vital role of immigrant-
owned businesses in building a recovery, as well as the challenges
they face.
Witnesses on the panel included: Mr. David Dyssegaard Kallick,
Deputy Director & Director of Immigration Research, Fiscal Policy
Institute, New York City, New York; Mr. Daniel Fitzgerald, Asso-
ciate Regional Director, San Diego & Imperial Small Business De-
velopment Center Network, San Diego, CA; Ms. Jaja Chen, Co-
Owner and Chief of Strategic Initiatives and Business Partner-
ships, Waco Cha, Waco, TX, and Mr. Jose Ponce, President, RE/
MAX Gold, Fenton, MO.
Mr. Kallick testified about immigrants and their disproportionate
role in launching Main Street businesses, like grocery stores, gas
stations, and restaurants, and the need for those businesses to gen-
erate economic growth in local areas. Mr. Fitzgerald testified about
the role his SBDC plays in a heavily immigrant community, pro-
viding multi-lingual services to help new arrivals start companies
and build wealth. Ms. Chen testified about the strength immigrant-
owned businesses bring to their communities through cultural di-
versity as well as the challenges she faces as an Asian-American
business owner during times of increased hate crimes against the
Asian American Pacific Islander communities. Mr. Ponce stressed
the importance of Hispanic-owned businesses in the American
economy as well as the need for continued investments in largely
Hispanic communities to help Hispanic families build wealth and
financial literacy.
OVERVIEW OF THE SMALL BUSINESS INNOVATION RESEARCH AND
SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAMS
On Thursday, May 13, 2021, the Committee on Small Business
held a hybrid hearing titled, ‘‘Overview of the Small Business Inno-
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vation Research and Small Business Technology Transfer Pro-
grams.’’ The hearing allowed Members to assess the state of the
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46
small business economy after nearly a year into the global COVID–
19 pandemic. The hearing introduced Members to the Small Busi-
ness Innovation Research (SBIR) and Small Business Technology
Transfer (STTR) Programs, known as ‘‘America’s Seed Fund,’’ and
their impact on pioneering small business.
Witnesses on the panel included: Dr. Joyce Tung, Vice President
of Research, 23andMe, Inc, Sunnyvale, CA; Ms. Pat Keady, Co-
founder, CEO and President, Aerosol Devices Inc., Fort Collins,
CO; Ms. Rebecca Todd, Innovation Consultant, Arkansas Small
Business and Technology Development Center, Little Rock, AK;
and Mr. Jere Glover, Executive Director, Small Business Tech-
nology Council, Washington, DC.
In her testimony, Dr. Tung testified about how SBIR helped
launch 23andMe’s technologies now sold worldwide. Ms. Keady pre-
sented Aerosol Devices’ experience as a current SBIR and STTR
participant on the cusp of the private investment stage. In her tes-
timony, Ms. Todd demonstrated the role of technical and business
assistance providers, specifically in the Federal and State Tech-
nology (FAST) Partnership (FAST) program. Mr. Glover testified to
the great success the SBIR/STTR program and its evolution over
the past 30 years.
AN EXAMINATION OF THE SBA’S COVID–19 PROGRAMS
On Wednesday, May 26, 2021, the Committee on Small Business
held a remote hearing titled, ‘‘An Examination of the SBA’s
COVID–19 Programs.’’
The sole witness included: The Honorable Isabella Casillas
Guzman, the Administrator of the Small Business Administration
(SBA).
Administrator Guzman discussed her first 100 days in office, de-
tailing the round-the-clock work at the agency to deliver relief to
small businesses to get through the pandemic. She reported that
the agency is seeing the impact, with jobs rebounding, proprietors’
income increasing, and small businesses building back to pre-pan-
demic levels. The Administration updated the Committee Members
on the launch of two new grants programs—the Restaurant Revi-
talization Fund (RRF) and the Shuttered Venues Operating Grant
(SVOG). With regard to RRF, Administrator Guzman discussed
SBA outreach, available language services, and program set asides,
reporting that SBA received more than 362,000 applications, total-
ing $75 billion. With regard to the SVOG, she discussed the num-
ber of applications and total funding requests. Administrator
Guzman also provided updates on the Paycheck Protection Pro-
gram (PPP), Economic Injury Disaster Loan Program (EIDL), the
Targeted Advance and the Supplemental Targeted Advance, as well
as the Debt Relief Program and the launch of the Community Nav-
igator Pilot Program, which will help build bridges to small busi-
nesses owned by women, veterans, and socially and economically
disadvantaged individuals. In sum, Administrator Guzman is work-
ing to use every tool at her disposal to bring businesses back, cre-
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ate jobs, and build and equitable recovery that will work for every-
one.
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MEMBER DAY HEARING
On Tuesday, June 29, 2021, the Committee on Small Business
held a hybrid hearing titled, ‘‘Committee on Small Business: 2021
Member Day Hearing.’’ Participating Members testified before the
Committee about their legislative interests and priorities as they
relate to policies under the Committee’s legislative jurisdiction.
House rule X, Clause 1(q) defines the legislative jurisdiction of the
Committee.
Witnesses on the panel included: the Honorable Earl Blu-
menauer, Member of Congress serving Oregon’s 3rd District; and
the Honorable Ed Case, Member of Congress representing Hawaii’s
1st District.
Representative Blumenauer testified before the Committee en-
couraging the urgent need to replenish the Restaurant Revitaliza-
tion Fund (RRF). As the primary sponsor of the RRF, Representa-
tive Blumenauer discussed the economic impact restaurants have
in local communities, stated that they are one of the hardest-hit
small businesses of any sector. Case testified on behalf of the con-
tinued impacts of COVID–19 on Hawaii’s small businesses, and the
need to ensure small businesses are fully included in the national
recovery. Due to Hawaii’s economic reliance on the hospitality in-
dustry, Representative Case argued in favor of the RRF and SVOG.
More specifically, he highlighted the need for meaningful and en-
forceable set-asides for small business contractors.
STRENGTHENING THE CYBERSECURITY POSTURE OF AMERICA’S SMALL
BUSINESS COMMUNITY
On Tuesday, July 20, 2021, the Committee on Small Business
met for a hybrid hearing titled, ‘‘Strengthening the Cybersecurity
Posture of America’s Small Business Community.’’ Small busi-
nesses are highly vulnerable to cybersecurity threats as employers,
suppliers, and consumers in a modern digital economy. Many can-
not afford dedicated Information Technology (IT) staff to navigate
and mitigate risks and are wary of investments in pricey software.
This hearing provided Members the opportunity to examine the
many cybersecurity threats facing small businesses and identify
available resources.
Witnesses on the panel included: Ms. Tasha Cornish, Executive
Director, Cybersecurity Association of Maryland, Baltimore, MD;
Ms. Sharon Nichols, State Director, Mississippi SBDC, University,
MS; Ms. Kiersten Todt, Managing Director, Cyber Readiness Insti-
tute, New York, NY; and Mr. Graham Dufault, Senior Director for
Public Policy, ACT, The App Association, Arlington, VA.
In her testimony, Ms. Cornish explained how her organization
represents, supports, and advocates for Maryland’s cybersecurity
industry. Ms. Nichols demonstrated the current and potential role
of SBA Resource Partners, specifically SBDCs, in helping small
businesses navigate constantly changing cybersecurity risks and re-
sponsibilities. Ms. Todt explained small business cyber
vulnerabilities and their role in securing supply chains. Mr.
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Dufault emphasized the need for Congressional action, including
the recently introduced H.R. 4515, the Small Business Develop-
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48
ment Center Cyber Training Act, and other legislation that facili-
tates greater info sharing between the federal and private sector.
WHAT COMES NEXT? PPP FORGIVENESS
On Wednesday, September 1, 2021, the Committee on Small
Business held a remote hearing titled, ‘‘What Comes Next? PPP
Forgiveness.’’ The hearing updated Members on the loan forgive-
ness phase of the Small Business Administration’s (SBA) Paycheck
Protection Program (PPP), and provided information about legisla-
tive and administrative efforts to continue streamlining the forgive-
ness process for borrowers and lenders.
Witnesses on the panel included: Tracy C. Ward, Director of the
SBA 504 Loan program, Self-Help Ventures Fund, Durham, NC;
Ms. Leslie Payne, Assistant Vice President of Commercial Lending,
Affinity Federal Credit Union, Basking Ridge, NJ; Ms. Marla
Bilonick, President and CEO, National Association for Latino Com-
munity Asset Builders, Washington, DC; and Mr. Robert Fisher,
President and CEO, Tioga State Bank, Chairman, Independent
Community Bankers of America, Spencer, NY.
In her testimony, Ms. Ward discussed the impact broad, acces-
sible loan forgiveness would have for the smallest of small busi-
nesses, especially those owned by women and minorities. She also
testified that SBA should rescind Procedural Notice 5000–20078,
which makes ‘‘excess loan amount errors’’ (a borrower or lender
good faith mistake in calculating loan amount) ineligible for loan
forgiveness. Ms. Payne’s testimony presented the view from a lend-
er who opted-in to SBA’s Direct Forgiveness Portal despite having
already developed its own. Specifically, she testified her credit
union chose to opt-in to the direct portal because they wanted to
maximize forgiveness options for their members. Ms. Bilonick testi-
fied some Community Development Financial Institutions (CDFIs)
in her association are directing clients almost exclusively to SBA’s
Direct Forgiveness Portal, and that some large CDFIs (including
one with almost half a million PPP loans in the portfolio) are find-
ing it challenging to follow up directly with each individual bor-
rower. She also recommended SBA make excess loan amount errors
forgivable. Mr. Fisher’s testimony encouraged SBA to respect lend-
ers’ choice to not use the direct portal and keep the direct portal
an opt-in program.
NATIONAL SMALL BUSINESS WEEK: CELEBRATING OUR MAIN STREET
CHAMPIONS
On Tuesday, September 14, 2021, the Committee on Small Busi-
ness held a remote hearing titled, ‘‘National Small Business Week:
Celebrating our Main Street Champions.’’ The hearing provided
Members an opportunity to hear from small businesses in their dis-
tricts on the issues facing them throughout the pandemic and the
resilience they displayed in the face of adversity.
Witnesses on panel one included: Mr. Tod Greenfield, Vice Presi-
dent, Greenfield Clothing, Brooklyn, NY; Ms. Jan Haviland, Owner
and President, Haviland Corp. Linn, MO; Ms. Shelonda Stokes,
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President, Downtown Partnership of Baltimore, Baltimore, MD;
Ms. Natasha Hudson, Owner, Hudson’s on Mercer, Dripping
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Springs, TX; Ms. Gena Felder, Chief Financial Officer, TJ Hale,
Menomonee Falls, WI.
Witnesses on panel two included: Mr. Eric Childs, Owner, Mind’s
Eye Comics, Burnsville, MN; Ms. Krystal Hernandez, Owner, La
Plaza F!esta, Madelia, MN; Mr. Maurice Contreras, President,
Volcanica Coffee Company, Suwanee, GA; Mr. Mark J. Lunde,
CEO, Lunde Auto Sales, Wadena, MN; and Mr. Barry Schlouch,
President, Schlouch Incorporated, Blandon, PA.
Witnesses on panel three included: Mr. Jaime Di Paulo, Presi-
dent and CEO, Illinois Hispanic Chamber of Commerce, Chicago,
IL; Ms. Susan Shaw, Owner, Shaw Insurance Agency, Hurst, TX;
Mr. Donald Fox, President and Chief Executive Officer, Fox Thea-
tres LLC, Wyomissing, PA; Mr. Mitch Cook, Co-Owner, Avalon Ba-
gels to Burgers, Yorba Linda, CA; and Mr. Greg Owens, Chief Ex-
ecutive Officer, Sherrill Manufacturing Inc., Sherrill, NY.
Mr. Greenfield testified on the history of his clothing company,
his ability to adapt by manufacturing PPE during the early days
of the pandemic, and the way pandemic relief programs like the
Paycheck Protection Program (PPP), the Economic Injury Disaster
Loan (EIDL) program, and the Employee Retention Tax Credit
(ERTC) kept his business alive. Ms. Haviland testified about the
history of her company, her experience with pandemic relief pro-
grams like PPP, and the cost increases from suppliers. Ms. Stokes
shared her experience as President of the Downtown Partnership
during the COVID–19 pandemic and the importance of being inten-
tional about inclusive economic growth and the creation of a new
program called BOOST, which stands for Black-Owned and Oper-
ated Storefront Tenancy, that helped to fill storefronts that were
emptied by the pandemic. Ms. Hudson told the story about how a
music venue and bar was able to adapt during the pandemic and
continue to serve its community. Ms. Felder detailed her story as
CFO of TJ Hale during the pandemic and the problems they expe-
rienced working with pandemic relief programs.
Mr. Childs testified about acquiring his favorite comic bookstore,
his passion for early childhood literacy and educating children
about real life superheroes in black history, and the impact edu-
cators can have on those children. Ms. Hernandez testified about
the challenges her Mexican restaurant has faced not only through
the pandemic, but previously when a fire devastated her business.
Mr. Contreras shared the story of the origin of his coffee business
17 years ago, his dedication to high quality coffee produced with
low-emissions, and the donations of his sales to charity. Mr. Lunde
testified about troubles in the economy that impact his business,
such as the need to pay workers a living wage, the lack of afford-
able childcare, and the lack of available workers due to unemploy-
ment insurance. Mr. Schlouch testified about his meticulous safety
plans to protect his workers from COVID–19 in his aim to get to
zero COVID in his construction sites.
Mr. Di Paulo shared his dedication to helping Latino companies
grow through his role as president and CEO of the Illinois Hispanic
Chamber of Commerce. Ms. Shaw testified about her company’s
ability to stay open during the pandemic and creating an environ-
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ment safe enough for people to come into work every single day.
Mr. Fox shared his efforts to create such a great movie theater ex-
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perience for his customers that he can compete with much larger
national chains and the way PPP, EIDL, and ERTC helped him
keep his doors open when people were unable to go to movie thea-
ters. Mr. Cook shared the story of his company, Avalon Bagels to
Burgers, and the way PPP allowed them to stay open during the
pandemic and overcome supply chain issues. Mr. Owens shared the
story of his manufacturing company throughout the pandemic and
emphasized that the U.S. needs to take action against the unfair
trade practices employed by China.
EMPOWERING EMPLOYEE-OWNED BUSINESSES AND COOPERATIVES
THROUGH ACCESS TO CAPITAL
On Thursday, September 30, 2021, the Committee on Small
Business held a hybrid hearing titled, ‘‘Empowering Employee-
Owned Businesses and Cooperatives Through Access to Capital.’’
The hearing educated Members on the challenges faced by em-
ployee-owned businesses in the post-COVID–19 economy, focusing
on access to affordable capital. The hearing provided an update on
the Small Business Administration’s (SBA) implementation of the
Main Street Employee Ownership Act of 2018, which contained a
series of reforms to SBA’s 7(a) loan guarantee program intended to
improve access for employee-owned firms.
Witnesses on the panel included: Mr. R.L. Condra, Senior Vice
President, National Cooperative Bank, Arlington, VA; Ms. Tatia
Cooper, President, Home Care Associates, Philadelphia, PA; Mr.
Gary Sherman, Chairman and Chief Development Officer, Eagle
Communications, Hays, KS; and Ms. Alice Frazier, President and
Chief Executive Officer, Bank of Charles Town, Charles Town, WV.
In his testimony, Mr. Condra discussed the continued inability of
cooperatively owned businesses to meet SBA’s requirement of a
personal or entity guarantee of any 20 percent owner of a co-op to
access a 7(a) loan, despite the Main Street Employee Ownership
Act’s rule that SBA provide practical alternatives for co-ops to se-
cure a 7(a) loan. He also testified in support of a cooperative lend-
ing pilot program at SBA that waives personal or entity guaran-
tees. Ms. Cooper testified on the power of the worker ownership
model and the culture of pride it creates among worker-owners.
She also testified that access to a 7(a) loan would help her co-op
obtain affordable capital at a time when demand for services out-
paces supply. Moreover, it would help her co-op remain self-suffi-
cient, expand scope of service, and improve wages and other bene-
fits. Mr. Shorman testified regarding the challenges businesses
with Employee Stock Ownership Plans (ESOPs) face in
transitioning to employee ownership, including restricted access to
the 7(a) loan program. He urged SBA permit lenders in the Pre-
ferred Lending Program to make 7(a) loans to ESOPs under their
delegated lending authority, as intended by the Main Street Em-
ployee Ownership Act. Ms. Frazier testified approximately 800
community banks have ESOPs, and that for those banks, the ESOP
structure provides an important source of capital and liquidity,
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helps them remain independent, and aids with succession plan-
ning.
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SBA’S ENTREPRENEURIAL DEVELOPMENT PROGRAMS
On Wednesday, October 6, 2021, the Committee on Small Busi-
ness held a hybrid hearing titled, ‘‘SBA’s Entrepreneurial Develop-
ment Programs.’’ During the hearing, Committee Members heard
from the Small Business Administration’s (SBA) Associate Admin-
istrator for the Office of Entrepreneurial Development (OED).
Witnesses on the panel included: Mr. Mark Madrid, Associate
Administrator, Office of Entrepreneurial Development, Small Busi-
ness Administration, Washington D.C.
Mr. Madrid testified about the SBA’s entrepreneurial develop-
ment counseling, training, and outreach programs specifically, the
Small Business Development Centers, Women’s Business Centers,
SCORE, and the Community Navigator Pilot Program. Mr. Madrid
spoke to the importance of these programs in helping small busi-
ness owners and entrepreneurs maintain and grow their busi-
nesses, especially throughout the pandemic. Mr. Madrid also testi-
fied about SBA OED’s efforts to reach underserved communities of
small business owners and how SBA’s Resource Partners and the
Community Navigator Pilot Program are actively engaged in this
outreach. In addition, Mr. Madrid addressed the oversight concerns
of Members and states that OED is actively working to track and
close any SBA Office of Inspector General (OIG) and Government
Accountability Office (GAO) recommendations. In sum, SBA OED
is working diligently to operate SBA’s counseling and training pro-
grams efficiently and effectively.
ENTREPRENEURSHIP IN THE NEW ECONOMY
On Wednesday, November 3, 2021, the Committee on Small
Business held a hybrid hearing titled, ‘‘Entrepreneurship in the
New Economy.’’ The hearing allowed Members to examine the in-
crease in American entrepreneurship and discuss how businesses
are rebuilding from a once-in-a-generation economic crisis. Mem-
bers heard from experts alongside small business owners to de-
scribe the changing nature of the economy coming out of the pan-
demic.
Witnesses on the panel included: Ms. Ellie Diop, Chief Executive
Officer, Eliza Revella Consulting Services, Los Angeles, CA; Mr.
Andrew Fogaty, Executive Director, 36Squared Business Incubator,
Chicago, IL; Ms. Stephanie E. DeVane, Vice President of Entrepre-
neurship & Business Development, National Urban League, New
York, NY; and Mr. Raymond Keating, Chief Economist, Small Busi-
ness & Entrepreneurship Council (SBE Council), Vienna, VA.
In her testimony, Ms. Diop shared her unconventional path to
entrepreneurship after investing her $1,200 federal stimulus check
to start Eliza Revella Consulting Services also known as Ellie
Talks Money. Noticing the digital marketing strategy, sales, and
funding gap that many Black and women-owned small businesses
experienced, Ms. Diop leveraged her corporate skills to start her
online coaching and counseling business targeted at this clientele.
Ms. Diop accredited her company’s success to digital platforms like
Instagram, Twitter, Tik Tok, and YouTube, which provided the
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space to share content, information, and products. Mr. Fogaty’s tes-
timony covered four main issues facing American entrepreneurship:
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access to capital, reducing the digital divide, manufacturing, and
working with underserved communities. Specifically, he discussed
the importance that access to capital has for an entrepreneur’s suc-
cess, how supply chain challenges demonstrated the need to sup-
port in domestic manufacturing, and how the Economic Injury Dis-
aster Loan (EIDL), Paycheck Protection Program (PPP), and fed-
eral stimulus checks have helped entrepreneurs navigate the pan-
demic. Ms. DeVane’s testimony presented data on how the COVID–
19 pandemic and resulting economic disruption disproportionately
impacted minority-owned businesses and minority lending. Ms.
DeVane presented policy recommendations on behalf of the Na-
tional Urban League which included enhancing outreach cam-
paigns to make federal programs more accessible; increasing access
to capital; supporting pathways to prime federal contracts; increas-
ing minority incubator support; and enhancing technical assistance.
Mr. Keating discussed how entrepreneurs are central to the eco-
nomic growth as they are job creators and risk takers. Also, Mr.
Keating made comments on immigration noting that immigrants
are not taking American jobs but rather spurring economic growth.
He followed up by stating immigrants fill workforce vacancies
doing jobs that others are unwilling to do.
A DISCUSSION WITH SBA ADMINISTRATOR ISABELLA CASILLAS GUZMAN
On Tuesday, November 16, 2021, the Committee on Small Busi-
ness held a hearing titled, ‘‘A Discussion with SBA Administrator
Isabella Casillas Guzman.’’ The hearing was an opportunity for
Members to hear about Administrator Guzman’s vision for the
agency as it emerges from the pandemic and discuss the opportuni-
ties and challenges that exist for small businesses. Members also
discussed recent proposals to improve access to capital for under-
represented entrepreneurs and small-dollar borrowers, especially in
light of Federal Reserve research showing that only 13 percent of
Black-owned businesses and 20 percent of Hispanic-owned busi-
nesses received all the capital they needed.
The sole witness included: The Honorable Isabella Casillas
Guzman, Administrator, U.S. Small Business Administration,
Washington, D.C.
Administrator Guzman’s testimony provided the Committee with
an update on SBA’s COVID–19 relief efforts, particularly with Pay-
check Protection Program (PPP) forgiveness. She testified that
more than three out of every four PPP loans have been forgiven,
representing a total of more than $610 billion. She also testified re-
garding the effectiveness of SBA’s PPP Direct Forgiveness Portal,
through which most forgiveness applicants have been able to access
using a mobile device in a process that now takes approximately
six minutes to complete. Administrator Guzman also testified that
SBA has approved more than 3.8 million Economic Injury Disaster
Loans (EIDL) for a total of more than $292 billion, plus an addi-
tional $26 billion in COVID–19 EIDL grants. She also testified
about the efficiency improvements SBA has made to the program,
including accelerating the processing rate from 1.86 applications to
20 applications per loan officer per day, and clearing a backlog of
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almost 1 million loan increases and grant applications. The Admin-
istrator discussed a policy change, which would restore the statu-
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tory maximum of the $2 million loan size by removing the $150,000
limit imposed by the previous administration in 2020, and addi-
tional changes to provide 24 months of additional deferment, and
allow for more flexibility in the use of funds, including paying down
commercial debt. Administrator Guzman also testified that SBA’s
Resource Partners and grantee networks provided millions of hours
of business counseling to entrepreneurs, supporting close to 1 mil-
lion jobs and helping more than 60,000 entrepreneurs launch their
businesses throughout the pandemic.
SECOND SESSION OF THE 117TH CONGRESS
REVIEW OF SBA’S TOP MANAGEMENT AND PERFORMANCE CHALLENGES
IN FISCAL YEAR 2022 AND SBA OIG’S SEMIANNUAL REPORT TO CON-
GRESS
On Wednesday, January 12, 2022, the Committee on Small Busi-
ness met for a hybrid hearing titled, ‘‘Review of SBA’s Top Manage-
ment and Performance Challenges in Fiscal Year 2022 and SBA
OIG’s Semiannual Report to Congress.’’ Each year, the Small Busi-
ness Administration’s (SBA) Office of Inspector General (OIG) re-
leases a report on the most significant management and perform-
ance challenges facing SBA. The goal is to focus attention on issues
to enhance the effectiveness of the agency and its programs. In ad-
dition, every six months OIG submits a report on its independent
oversight of the SBA. The hearing covered issues related to SBA’s
management of its programs related to pandemic relief, contracting
and counseling, access to capital, and disaster assistance, as well
as information technology (IT) controls. In addition, this hearing
gave Members an opportunity to ask questions about the concerns
raised by OIG in these reports, as well as to inquire about the
agency’s implementation of OIG’s recommendations.
The sole witness included: Mr. Hannibal ‘‘Mike’’ Ware, Inspector
General, Office of the Inspector, U.S. Small Business Administra-
tion.
Mr. Ware testified about his office’s efforts to address SBA’s pan-
demic relief efforts. This included issuing 18 reports, and he high-
lighted the office’s investigative work, which resulted in 366 indict-
ments, 294 arrests, and 142 convictions related to COVID EIDL or
PPP. Additionally, the OIG helped recover and save $4.2 billion in
pandemic relief funds that were connected to fraudulent activity in
Fiscal Year 2021. He also mentioned that his office will be using
data analytics, which includes leveraging artificial intelligence and
machine learning to get in front of fraud and expand the reach of
the office’s oversight. He testified that the current leadership at
SBA is taking their recommendations seriously and moving to
quickly resolve them, and he added that this administration is fo-
cused on having an internal control environment to prevent fraud.
Also, he testified that SBA’s is more prepared now more than ever
in terms of the control environment that is currently in place from
a risk perspective, and it is stronger now than it has ever been. Mr.
Ware testified that the agency’s information technology system is
still not working as promised, and they are still examining that
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issue. As to the government reaching its statutory goal of awarding
23 percent of contracts to small businesses, Mr. Ware said the
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agency has been transparent with its efforts and all government
agencies should be aware of how to calculate its small business
contracting percentage. Finally, Mr. Ware testified about his of-
fice’s work with the Pandemic Responsibility Accountability Com-
mittee to help triage hotline call intakes and to document pan-
demic relief fraud that is occurring across the government to pre-
vent the same things from happening the in the future.
THE POWER, PERIL, AND PROMISE OF THE CREATIVE ECONOMY
On Wednesday, January 19, 2022, the Committee on Small Busi-
ness held a remote hearing titled, ‘‘The Power, Peril, and Promise
of the Creative Economy.’’ Members heard from experts alongside
creative workers demonstrate the power of the creative economy
and its importance to a robust economic recovery. The hearing pro-
vided recommendations for investments in key infrastructure and
provided a roadmap for bringing arts, culture, and creativity into
the center of long-term recovery.
Witnesses on the panel included: Mr. Carson Elrod, Co-Founder
& Co-Leader, Be An #ArtsHero and Director of Government Af-
fairs, Arts Workers United, Brooklyn, NY; Ms. Nataki Garrett, Ar-
tistic Director, Oregon Shakespeare Festival, Ashland, OR; Ms.
Sandra Karas, Secretary-Treasurer, Actors’ Equity Association,
New York, NY; and Ms. Raeanne Presley, Co-Owner, Presleys’
Country Jubilee (Presleys’ Theater), Branson, MO.
Mr. Elrod began his testimony by emphasizing the power of the
creative economy comparing creative businesses to stars that an-
chor solar systems of interdependent local commercial businesses.
He detailed his personal experience joining the 2.7 million Ameri-
cans who experienced unemployment during the pandemic while
demonstrating the particular toll lockdowns had on creative indus-
tries and ancillary businesses. Recognizing government agencies as
valuable resources of direct economic stimulus, Mr. Elrod rec-
ommended Congress support an inclusive relief package that would
help bolster the creative economy. As the Artist Director for the Or-
egon Shakespeare Festival (OSF) at the onset of the pandemic, Ms.
Garrett laid off 90 percent of OSF’s workforce. Citing the ‘‘Great
Resignation,’’ workers’ transferable skills, and the barriers of in-
person performances with heightened safety precautions, Ms. Gar-
rett elaborated on how existing struggles have long threatened the
creative economy. She described the arts as a formative industry
that impact everything from schools, culture, to the economy and
expressed concern that creatives and support staff will not survive
without federal support. Ms. Garrett concluded by advocating sup-
port for bipartisan House bills such as the Creative Economy Revi-
talization (CERA) Act, the Performing Arts Parity Act, and the
Arts Education for All Act. Ms. Karas’ overall testimony empha-
sized support for stronger worker protections throughout the arts
sector. Representing Actors’ Equity Association, she highlighted
that without a large union presence, the gains across the creative
economy witnessed within the last couple of decades will quickly
erode. Furthermore, Ms. Karas discussed how unions can drive eco-
nomic growth for businesses and workers in the creative economy.
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Ms. Karas suggested Congress pass the Performing Artist Tax Par-
ity Act or PATPA, to modernize a tax code that punishes arts work-
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55
ers for seeking work with targeted relief to entertainment workers.
Additionally, she encouraged more critical gains made during the
pandemic should continue by expanding subsidies for the Afford-
able Care Act, which was vital for this industry. Ms. Karas also en-
couraged those subsidies are renewed, and the unemployment sys-
tem undergo serious reform. Ms. Presley echoed the significance of
live music and entertainment in Branson, Missouri while also high-
lighting how independent venues are struggling to survive. Ms.
Presley underscored the creative economy’s unique ability to drive
tourism and impact local economies nationally. Yet throughout the
pandemic, many live venues, such as Presleys’ Country Jubilee,
had low consumer confidence as venues no-show rate increased to
20–50 percent. Ms. Presely finished by requesting the House pass
the SOS Extension Act.
COMPETITION AND THE SMALL BUSINESS LANDSCAPE: FAIR
COMPETITION AND A LEVEL PLAYING FIELD
On Tuesday, March 1, 2022, the Committee on Small Business
held a hybrid hearing titled, ‘‘Competition and the Small Business
Landscape: Fair Competition and a Level Playing Field.’’ Com-
mittee Members heard from various experts and academics about
competition policy through the lens of American small firms. This
hearing examined the history of antitrust law and the historical
importance of encouraging fair competition, and their potential im-
pacts on small firms.
Witnesses on the panel included: Dr. Diana L. Moss, President
American Antitrust Institute, Washington, DC; Dr. Carl Shapiro,
Distinguished Professor of the Graduate School at the University
of California at Berkeley University of California, Berkeley, Berke-
ley, CA; Mr. Barry Lynn, Executive Director Open Markets Insti-
tute, Washington, DC; and Dr. Douglas Holtz-Eakin President
American Action Forum, Washington, DC.
In her testimony, Dr. Moss spoke to the impact lax antitrust en-
forcement in the U.S. had in contributing to a decline in small and
independent businesses; she encouraged legislators and policy-
makers to carefully consider how antitrust fits within a broader
policy framework for promoting small business and how different
policy tools can work in complementary ways. Dr. Shapiro illus-
trated the role that regulatory bodies, courts, and policymakers
have in producing equitable outcomes for consumers via a reexam-
ination of antitrust legislation. He demonstrated how strong anti-
trust policies are the backbone of sustainable and diverse competi-
tion as they regulate large firms’ overuse of their market power.
Mr. Lynn highlighted the impact monopolies and corporate power
can have on individual liberty. He further discussed the necessary
presence of a small business-centered economy upheld through con-
sumer-friendly programs that prioritize equitable competition. Dr.
Holtz-Eakin emphasized issues facing small businesses, such as in-
flation and regulations, and gave his perspective on how to allevi-
ate those concerns.
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OVERVIEW OF THE SMALL BUSINESS INNOVATION RESEARCH AND
SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAMS
On Tuesday, March 8, 2022, the Committee on Small Business
held a hybrid hearing titled, ‘‘Overview of the Small Business Inno-
vation Research (SBIR) and Small Business Technology Transfer
(STTR) programs.’’ This was the third hearing in a series on the
SBIR and STTR programs, which expire September 30, 2022, and
need to be reauthorized. The first hearing was May 13, 2021, and
the second hearing was June 23, 2021. These programs foster part-
nerships between small businesses and the federal government by
making competitive awards to develop technologies that are impor-
tant to our country and later have commercial application. The
Small Business Administration (SBA) is responsible for coordi-
nating policy across the 11 participating agencies, monitoring im-
plementation of the programs, maintaining policy directives, and
developing annual reports to Congress. Members had the oppor-
tunity to hear directly from SBA on issues related to the reauthor-
ization of the programs.
The sole witness included: Mr. John Williams, Director of Inno-
vation and Technology, Office of Investment and Innovation, U.S.
Small Business Administration, Washington, D.C.
In his testimony, Mr. Williams raised concerns about the fast-ap-
proaching expiration date of the programs and talked about the
consequences if Congress does not act soon. Specifically, he said,
‘‘agencies may start to delay new solicitations due to the potential
that the SBIR and STTR program authority will expire. This would
create a gap in new starts that cannot be made up . . . The real
burden will fall heavily on small business innovators, especially
new program entrants.’’ He talked about the program’s ability to
attract the best and the brightest, including the 2020 Nobel Prize
for Chemistry winner. He highlighted examples of how SBIR and
STTR provide innovative cost-savings in national defense capabili-
ties and propel health benefits, including 99 drugs between 1996–
2020, of which 16 percent made a ‘‘significant’’ advance over other
available treatments. During questions from the members, Mr. Wil-
liams explained limited resources for his office and explained the
roll of multiple award winners, particularly how critical they are
to the Department of Defense’s warfighting capabilities.
SMALL BUSINESS ADMINISTRATION’S FY 2023 BUDGET
On Wednesday, April 27, 2022, the Committee on Small Business
held a hybrid hearing titled, ‘‘Small Business Administration’s FY
2023 Budget.’’ Committee Members heard from Administrator
Guzman about the priorities for the agency and discussed specific
funding requests for Fiscal Year 2023. Additionally, the Committee
discussed ongoing agency efforts related to the pandemic programs.
The sole witness was the Honorable Isabella Casillas Guzman,
Administrator, United States Small Business Administration.
In her testimony, Administrator Guzman discussed how the Ad-
ministration’s budget proposal, which requests $1.06 billion in
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funding for the Small Business Administration, would build upon
the agency’s successes and make it easier for all small businesses
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to grow. One of the top priorities for the Administration is to make
sure the programs are reaching all Americans.
Administrator Guzman highlighted important data and reported
that business applications have risen by more than 30 percent from
pre-pandemic levels, and in 2021 alone, 5.4 million Americans ap-
plied to start a business.
Regarding the COVID relief programs, the Administrator re-
ported that in Fiscal Year 2021, the SBA distributed more than
$450 billion in financial relief through the Paycheck Protection Pro-
gram (PPP), COVID Economic Injury Disaster Loan and Advance
(EIDL) programs, Restaurant Revitalization Fund (RRF), and
Shuttered Venue Operators Grant (SVOG) programs. The Adminis-
trator made programmatic changes that protected the economic re-
lief programs from fraud, and she announced the creation of the
SBA new Fraud Risk Management Board (FRMB), and the ap-
pointment of a Special Counsel for Enterprise Risk.
The Administration’s proposed budget requests the authority to
transfer $320 million in already-appropriated targeted EIDL ad-
vance balances to support the servicing of COVID EIDL and other
COVID-related programs. The Administrator emphasized the im-
portance of the transfer given SBA will be responsible for servicing
3.9 million COVID EIDL loans, totaling more than $361 billion.
With regard to the core programs, the Administrator testified
that the capital programs reached record levels in Fiscal Year
2021—a reflection of the surge in American entrepreneurship and
evidence that demand for SBA capital support is outpacing avail-
able resources. She also discussed the importance of investments in
the innovation programs, as well as the Entrepreneurial Develop-
ment programs.
In terms of the contracting programs, the Administrator testified
that the number of small businesses contracting with the federal
government declined by nearly 40 percent over the past decade.
She outlined the investments the agency will make to reverse the
trends and increase opportunities for more small businesses. The
Administrator also reiterated the importance of the budget request
of $20 million to manage the transition of the Center for
Verification and Evaluation, which is responsible for verifying vet-
eran eligibility for veteran-owned small businesses and service-dis-
abled small businesses.
SBA MANAGEMENT REVIEW: OFFICE OF CAPITAL ACCESS
On Wednesday, May 18, 2022, the Small Business Committee
held a hearing titled, ‘‘SBA Management Review: Office of Capital
Access.’’ The Small Business Administration’s (SBA) Office of Cap-
ital Access (OCA) is responsible for managing the agency’s loan
programs, which provide guarantees for short- and long-term loans
on reasonable terms for small businesses who cannot access credit
elsewhere. Specifically, OCA administers SBA’s 7(a) Loan Guar-
antee Program, the 504/Certified Development Company (504/CDC)
Loan Program, the Microloan Program, and the Surety Bond Pro-
gram. During the COVID–19 pandemic, OCA also administered the
Paycheck Protection Program (PPP) and COVID–19 Economic In-
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jury Disaster Loan (EIDL) Program. OCA therefore plays a key
role in the nation’s entrepreneurship atmosphere. This hearing pre-
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sented Members an opportunity to assess the current Office and
program operations, as well as assess the agency’s efforts to in-
crease access to affordable capital for all and to promote a more eq-
uitable economy. The hearing also provided Members an oppor-
tunity to conduct oversight over the agency’s pandemic relief pro-
grams.
The sole witness on the panel included: Mr. Patrick Kelley, Asso-
ciate Administrator, Office of Capital Access, U.S. Small Business
Administration, Washington, D.C.
Mr. Kelley’s testimony highlighted how SBA’s business loan pro-
grams supported almost $45 billion in lending in FY 2021, sup-
ported in large part by temporary program enhancements enacted
by Congress, including debt relief, fee waivers, and increased guar-
antee rates. He testified small manufacturers, which are key to
President Biden’s goal of addressing supply chain bottlenecks by
increasing domestic production of goods, benefit uniquely from the
504/CDC Loan Program. To that end, the House of Representatives
passed the 504 Modernization and Small Manufacturer Enhance-
ment Act of 2021, which increases the maximum loan size for small
manufacturers from $5.5 million to $6.5 million and adjusts the
program’s occupancy rules to make it easier for small businesses to
finance the purchase of an existing multi-story building with a 504
loan. He also testified regarding the importance of increasing
small-dollar lending in the agency’s flagship 7(a) loan Program,
and the extension of the Community Advantage Pilot Loan Pro-
gram, which targets small business in underserved markets. He
also testified SBA is working to make the business loan programs
more accessible to employee-owned businesses and those seeking to
transition to employee ownership. Furthermore, Mr. Kelley also
provided an update on PPP forgiveness, testifying that SBA has
processed almost 10 million loan forgiveness decisions, representing
about 88 percent of all PPP loans, totaling $721 billion. He also tes-
tified regarding the administration of the COVID–19 EIDL pro-
gram, which was in the wind-down phase at the time of the hear-
ing.
Throughout the hearing, Mr. Kelley responded to questions re-
garding SBA’s announcement it would no longer accept applica-
tions for COVID EIDL loan modifications, reconsiderations, or ap-
peals due to the program’s funds being exhausted. This announce-
ment came a day before the date on which SBA designated as the
deadline to submit such applications. Mr. Kelley testified that by
the close of business on May 6, there were approximately 61,000
loan files seeking loan modification, reconsideration, or appeal that
were eligible for funding, were approved for funding, and have
funds obligated. He also testified there were approximately 9,000
loan files seeking reconsideration that will not be approved for rea-
sons related to credit criteria, tax information, and other issues.
MILITARY TO MAIN STREET: SERVING VETERAN ENTREPRENEURSHIP
On Wednesday, June 8, 2022, the Committee on Small Business
held a hearing hybrid titled, ‘‘Military to Main Street: Serving Vet-
eran Entrepreneurship.’’ Transitioning from military service to ci-
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vilian life presents unique challenges for aspiring veteran entre-
preneurs. The hearing provided Members an opportunity to explore
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the resources and programs available through the Small Business
Administration (SBA) for veterans and their spouses, especially the
Boots to Business Program, when transitioning to civilian life. The
SBA provides a variety of counseling, training, and lending options
tailored to the needs of veterans and their families’ ensuring vet-
erans and their spouses and become successful small business own-
ers.
Witnesses on the panel included: Dr. Michael Haynie, Executive
Director of the Syracuse University Institute for Veterans and Mili-
tary Families, Syracuse University; Mr. Brenton Peacock, Director,
Florida Veterans Business Outreach Center at Gulf State College;
Ms. Laurie Sayles, President & Chief Executive Officer, Civility
Management Solutions; and Mr. Joe Shamess, Founder & General
Partner, Flintlock Capital.
Dr. Haynie spoke to the entrepreneurial spirit of the veteran
community but stressed that more should be done to help
transitioning veterans access capital, navigate local resources, and
expand support for veteran business resources and training pro-
grams. Dr. Haynie stated that many veterans are interested in pur-
suing entrepreneurship but transitioning to civilian life can present
unique challenges. Dr. Haynie also testified about the increasing
diversity of the veteran population and how this can present addi-
tional challenges, particularly regarding access to capital, for vet-
eran entrepreneurs. He acknowledged how women and black vet-
erans are motivated to pursue entrepreneurship to become finan-
cially independent and increase personal income, but their capital
access is significantly more limited than their white male counter-
parts.
Mr. Peacock testified about the Florida Veterans Business Out-
reach Centers (VBOCs) Boots to Business Program that helps en-
sure transitioning veterans and their spouses access the resources
to bring their business from idea to fruition. He noted that the
Florida VBOC has a particular focus in government contracting
with their veterans receiving 322 prime contracts, with a total
value of over $329 million.
Ms. Sayles testified about her experience as the CEO of a SBA
certified 8(a), VA verified Service-Disabled Veteran, economically
disadvantaged woman, and women-owned small business. She ad-
vocated for an increase of incentives for prime contractors and the
Federal Government to award more contracts to women veteran-
owned small businesses.
Mr. Shamess testified that veterans could be better served by
finding to increase coordination between SBA programs to better
benefit veterans. Mr. Shamess testified that creating a comprehen-
sive list of programs designed to assist aspiring veteran entre-
preneurs and integrating those programs more thoroughly into the
Department of Defense’s (DOD) Transition Assistance Program
(TAP) would be beneficial.
ARE GOVERNMENTWIDE CONTRACTS HELPING OR HURTING SMALL
CONTRACTORS?
On Tuesday, June 14, 2022, the Committee on Small Business
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met for a remote hearing titled, ‘‘Are Governmentwide Contracts
Helping or Hurting Small Contractors?’’ The hearing took place at
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60
10:00 a.m. in Room 2360 of the Rayburn House Office Building and
via the Zoom platform. The hearing examined governmentwide con-
tracts—particularly those known as Best-In-Class (BIC) contracts—
and assessed their impact on the federal small business base.
Witnesses on the panel included: Ms. Amber Hart, Co-founder
and Co-owner, The Pulse of GovCon, LLC, Sterling, VA; Mr. Isaias
‘‘Cy’’ Alba IV, Partner, PilieroMazza, PLLC, Washington, DC; Ms.
Lynn Ann Casey, Founder and CEO, Arc Aspicio, Washington, DC;
and Ms. Rebecca Askew, CEO & General Counsel, Circuit Media
LLC, Denver, CO.
In the hearing, witnesses spoke about the Federal procurement
landscape and expounded on the numerous challenges government-
wide contracts pose for small businesses, something that the Com-
mittee began exploring in a previous hearing. Ms. Hart, for exam-
ple, focused on the bundling and consolidation that is being caused
by the Category Management initiative and its use of BIC con-
tracts. She noted that this is ultimately reducing channels for ac-
quisition and has significantly shrunk the number of small busi-
nesses providing goods and services for the government. Addition-
ally, she expressed that one of the main challenges of current BIC
vehicles is that they are inconsistent among themselves when it
comes to factors like size standard recertifications, bid require-
ments, experience qualifications, ramping timelines and proce-
dures, and how set-asides are tracked. In this respect, she advo-
cated for standardization to provide certainty and clarity to small
businesses.
Similarly, Ms. Casey and Ms. Askew stated that governmentwide
and BIC contracts require significant resources in terms of time,
money, and human capital to bid on them. They both also agreed
that for those small businesses that do this investment, any delays
from agencies in selecting awardees can be especially detrimental.
Ms. Casey also noted that the move of contract requirements to
BIC contracts often resulted in contract holders not being able to
recompete for work, which burdens small businesses and agencies
alike. Another important aspect that came out of the hearing was
how small businesses are practically being forced to joint ventures
with big businesses to pursue BIC opportunities, something that as
stated by Ms. Casey, many small businesses do not want to do. Fi-
nally, Mr. Alba in his testimony made a series of recommendations
to ensure governmentwide and BIC contracts become more acces-
sible to small businesses. These included having more frequent on
ramps, not moving small business requirements to best-in-class
contracts without first conducting an impact analysis on how the
small business base would be harmed by the move and ensuring
that the ‘‘Rule of Two’’ is followed on task orders.
SBA MANAGEMENT REVIEW: OFFICE OF GOVERNMENT CONTRACTING
AND BUSINESS DEVELOPMENT
On Thursday, June 23, 2022, the Committee on Small Business
met for a hybrid hearing titled, ‘‘SBA Management Review: Office
of Government Contracting and Business Development.’’ The hear-
ing took place at 10:00 a.m. in Room 2360 of the Rayburn House
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Office Building and through Zoom. The hearing allowed Members
to learn more about the Office of Government Contracting and
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Business Development (GCBD), which works to create an environ-
ment that fosters maximum participation by small businesses in
the federal procurement space. The purpose of the hearing was to
examine GCBD’s administration of the SBA’s business development
and contracting programs, progress towards implementing key leg-
islation, and the ongoing efforts to address administrative chal-
lenges.
The sole witness for the hearing included: Ms. Bibi Hidalgo, As-
sociate Administrator, Office of Government Contracting and Busi-
ness Development, U.S. Small Business Administration, Wash-
ington, D.C.
In her testimony, Ms. Hidalgo highlighted certain changes that
the GCBD Office has been working on in collaboration with the
White House, the Office of Management and Budget and partner
agencies to ensure that socioeconomic firms have a strong footing
on which to compete in the Federal marketplace. These changes in-
cluded incorporating all socioeconomic firms into Tier 2 credit
under the Category Management initiative, tracking all new en-
trants into the Federal marketplace, publicly releasing FY20
disaggregated contracting data, adding small business goals to Sen-
ior Executive Service (SES) performance evaluations, and increas-
ing the contracting goal for small and disadvantaged firms to 15
percent by 2025, with an initial goal of 11 percent for this fiscal
year.
Additionally, throughout the hearing, Ms. Hidalgo discussed nu-
merous matters that are of particular interest to Members such as
information technology (IT) improvements. In this regard, she men-
tioned that the Office has been working to modernize their current
IT certification systems although they are also working towards
having one IT platform for all of the certification programs. In
terms of the budget, Ms. Hidalgo specified that the $5 million in
additional funding requested would help fund additional staff, par-
ticularly procurement center representatives and commercial mar-
ket representatives, which currently are at historic low levels. Fi-
nally, regarding the 8(a) program, Ms. Hidalgo stated that her of-
fice would welcome legislation extending said program an addition
year for 8(a) participants to account for the disruptions caused by
the COVID–19 pandemic.
LEVERAGING THE INFRASTRUCTURE INVESTMENT AND JOBS ACT: THE
ROLE OF THE SBA’S BOND GUARANTEE PROGRAM
On July 27, 2022, the Committee on Small Business met for a
hybrid hearing titled: ‘‘Leveraging the Infrastructure Investment
and Jobs Act: The Role of the SBA’s Bond Guarantee Program.’’
The hearing took place at 10:00 a.m. in Room 2360 of the Rayburn
House Office Building and through Zoom. The hearing examined
the SBA’s Surety Bond Guarantee Program, which has been assist-
ing small businesses in obtaining bonds and winning contracts for
more than 50 years. The hearing focused on the program’s oper-
ations and explored potential ways to improve it, considering the
heightened role the program will play as part of rebuilding the na-
tion’s infrastructure.
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The witnesses for the hearing were: Mr. Peter Gibbs, President,
Foundation Surety & Insurance Solutions, Bowie, MD—Testifying
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on behalf of the National Association of Surety Bond Producers,
Mr. Ralph Pulver, Regional Underwriting Officer, Travelers Bond
& Specialty Insurance, Hartford, CT—Testifying on behalf of the
Surety & Fidelity Association of America, Mr. Alan Gravel, Presi-
dent, Willow Construction, Inc., Powder Springs, GA; and Mr. Joel
Griffith, Research Fellow, The Heritage Foundation, Washington,
DC.
In the hearing, both Mr. Gibbs and Mr. Pulver emphasized that
changes made to the program in recent years have been successful
in enhancing the program and expanding the number of small
firms that can participate in it. For example, they both agreed that
raising the contract guarantee thresholds, permanently reducing
the fees charged from contractors and increasing the guarantee up
to 90 percent for participating surety companies had been
impactful changes. In addition, Mr. Gibbs provided a series of rec-
ommendations to further streamline and improve the program.
Specifically, some of the reforms suggested are: 1. further increas-
ing the contract guarantee thresholds from $10 million to $20 mil-
lion in federal contracts and on non-Federal contracts from $6.5
million to $10 million; 2. Exploring techniques to manage, mitigate,
and transfer risk which may attract participation from the reinsur-
ance industry; 3. consider adding other surety products to the pro-
gram which may be difficult for small businesses to obtain in the
marketplace and; 4. enhancing resources for the program in areas
such as information technology and marketing to increase effi-
ciencies and expand program awareness.
In contrast, Mr. Gravel underscored the importance of the pro-
gram by relating the story of his company. Mr. Gravel explained
that his company started making use of the Surety Bond Guar-
antee Program to access bonds and bid for construction work fol-
lowing the financial crisis of 2008–2012 which had ended his com-
pany’s progress toward financial security. He recounted that during
those dark times, they could have chosen to declare bankruptcy but
instead they decided not to give up. In his view, had the SBA pro-
gram not been available, his company might have eventually recov-
ered, but it would have taken much longer and it would have been
a lot more painful. Through the program, his company returned to
financial health, providing good incomes to employees, paying
taxes, and completing quality projects for the community and the
environment.
SBA MANAGEMENT REVIEW: OFFICE OF INTERNATIONAL TRADE
On Tuesday, September 20, 2022, the Committee on Small Busi-
ness held a hybrid hearing titled, ‘‘SBA Management Review: Of-
fice of International Trade.’’ The hearing reviewed the Small Busi-
ness Administration’s (SBA) Office of International Trade. The Of-
fice of International Trade is responsible for supporting small busi-
ness international trade development and works in cooperation
with other federal agencies, public, and private sector groups to en-
courage and assist small businesses looking to export. The hearing
gave Members an opportunity to learn more about the Office’s op-
erations as well as its implementation of its flagship exporting pro-
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gram for small businesses, the State Trade Expansion Program
(STEP).
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The sole witness was: Mr. Gabriel Esparza, Associate Adminis-
trator, Office of International Trade, U.S. Small Business Adminis-
tration.
Mr. Esparza testified about the importance of STEP for small
businesses and expressed support for H.R. 8844, the ‘‘STEP Im-
provement Act of 2022.’’ Over the past decade, STEP has helped
12,000 small businesses and generated approximately $5.5 billion
in export sales. In 2022, SBA experienced the highest demand for
STEP in both the number of states/territories applying and the dol-
lar amount requested. The Associate Administrator shared anec-
dotal stories of small businesses that took advantage of STEP to
visit trade shows, work with wholesalers, and utilize translation
services, and are reaping the benefits with booming sales.
Under his leadership, one of the main priority’s will be to provide
adequate education and training to small businesses to prepare
them for the complexities and inner workings of international
trade, supported by partners within SBA, other federal entities,
and public-private partnerships.
Mr. Esparza further testified that the Administrator has tasked
the Office of International Trade with developing more customer
centric approaches to meet small businesses where they are. To
that end, the office has been reorganized around having a strong
marketing function to increase awareness of STEP, particularly
with historically underserved communities, women small business
owners, veteran small business owners, and rural small business
owners. It will continue to work closely with small businesses that
are exporting, as well as, those that could be potentially importing,
as the program has proven to be a generator of export sales and
sustainer of jobs.
In addition, Mr. Esparza testified that because of digital tools
and e-commerce, small businesses can export faster than ever, and
that SBA has a specific focus on new-to-exporting firms as well as
companies that come from traditionally underserved communities.
Finally, Mr. Esparza stated that SBA is aware of the feedback from
the July 19th hearing that some states are concerned with the ad-
ministrative requirements of the STEP grant. Mr. Esparza stated
he has spent time with STEP grants managers and is seeking to
strike the right balance between protecting taxpayer dollars and
improving the efficiency of the program.
PART B
SUBCOMMITTEE HEARINGS
FIRST SESSION OF THE 117TH CONGRESS
PERSPECTIVES FROM MAIN STREET: RAISING THE WAGE
On Wednesday, February 24, 2021, the Subcommittee on Over-
sight, Investigations, and Regulations held a hybrid hearing titled,
‘‘Perspectives from Main Street: Raising the Wage.’’ The hearing
provided the Subcommittee the opportunity to hear from econo-
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mists and small business owners about the impact of raising the
federal minimum wage to $15 per hour.
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Witnesses on the panel included: Dr. Heidi Shierholz, Senior
Economist and Director of Policy at the Economic Policy Institute,
Washington, D.C.; Mr. John Puckett, Owner and CEO of Punch
Pizza, St. Paul, MN; Ms. Rebecca Hamilton, Co-CEO, W.S. Badger
Company, Gilsum, NH; Ms. Rachel Greszler, Research Fellow in
Economics, Budget, and Entitlements, The Heritage foundation,
Washington, D.C.
Dr. Shierholz explained the broader economic effects of raising
the minimum wage and focused on how it would improve material
conditions for low-wage workers, lift nearly a million people out of
poverty, result in lower turnover rates among small businesses,
build a stronger workforce, and help stimulate struggling commu-
nities. Mr. Puckett spoke from his own experience as a restaurant
owner and how keeping his starting wages for his employees well
above the federal and state minimum wages has given him a com-
petitive advantage for better workers and helped him craft a more
sustainable business model. Ms. Hamilton also spoke from experi-
ence as a small business owner, a manufacturer from rural New
Hampshire, and how making her minimum wage a living wage
gave her a competitive advantage in recruitment and retention in
a state where the minimum wage is still $7.25, the federal min-
imum. Ms. Greszler emphasized the potential costs to raising the
minimum wage, such as decreased employment, possible business
closures, and inflation, especially for childcare costs.
THE ROLE OF COMMUNITY NAVIGATORS IN REACHING UNDERSERVED
BUSINESSES
On Thursday, March 18, 2021, the Subcommittee on Under-
served, Agricultural, and Rural Business Development held a hy-
brid hearing titled, ‘‘The Role of Community Navigators in Reach-
ing Underserved Businesses.’’ During the hearing, Committee
Members heard from Small Business Administration (SBA) Re-
source Partners and stakeholders from state level community navi-
gator programs.
Witnesses on the panel included: Ms. Rebecca Shi, Executive Di-
rector, American Business Immigration Coalition; Ms. Bridget Wes-
ton, CEO, SCORE; Ms. Pilar Guzman Zavala, CEO, Half Moon
Empanadas; and, Mr. Bruce Strong, State Director, Minnesota
SBDC.
Ms. Shi testified about the mechanics of a state level community
navigator program and how using this approach, her organization
managed to help more underserved businesses in Illinois, Florida,
Texas, and South Carolina. Ms. Guzman Zavala testified about her
experience participating in a community navigator program in
Florida and how the program was essential to her securing a Pay-
check Protection Program (PPP) loan to help keep her business
operational. Ms. Weston and Mr. Strong testified that the Commu-
nity Navigator Pilot Program would complement existing SCORE
and Small Business Development Center (SBDC) diversity initia-
tives and help SBA’s Resource Partners better reach underserved
communities. Ms. Weston and Mr. Strong also testified about their
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belief that the Community Navigator Pilot Program is not duplica-
tive and will enhance SCORE and SBDC efforts across the country.
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THE INTERACTION BETWEEN THE PAYCHECK PROTECTION PROGRAM
AND FEDERAL ACQUISITION RULES: WHAT IT MEANS FOR GOVERN-
MENT CONTRACTORS
On Tuesday, March 23, 2021, the Subcommittee on Contracting
and Infrastructure met for a remote hearing titled, ‘‘The Inter-
action Between the Paycheck Protection Program and Federal Ac-
quisition Regulations: What it Means for Government Contractors.’’
The hearing examined the extent to which the Federal Acquisition
Regulations Credits Clause interplays with the Paycheck Protec-
tion Program (PPP) and its implications for federal contractors.
The Committee also learned more about how agencies are handling
the matter, available guidance, and industry concerns.
Witnesses on the panel included: Mr. Greg Bingham, Partner
and Co-lead of the Government Contracts Group, HKA, Wash-
ington, D.C.; Ms. Susan Moser, CPA/CITP, Advisory Services Part-
ner, Cherry Bekaert, LLP, Tysons, VA; Ms. Robin Greenleaf, PE,
CEO & Founder, Architectural Engineers, Boston, MA, who testi-
fied on behalf of the American Counsel of Engineering Companies
(ACEC); and Mr. Carlos A. Penin, PE, President, CAP Engineering,
Coral Gables, FL.
In his testimony, Mr. Bingham provided an overview of FAR Part
31 cost principles and the credits clause. Furthermore, Ms. Moser
explained how the forgiveness of a PPP loan could trigger an allow-
able cost credit in favor of the Government if proceeds of the loan
were used towards direct or indirect costs on flexibly priced govern-
ment contracts and discussed available guidance from the Depart-
ment of Defense (DOD) and the Defense Contract Audit Agency
(DCAA) regarding the matter.
On the other hand, Ms. Greenleaf and Mr. Penin discussed con-
cerns from architectural and engineering (A/E) firms with draft
guidance from the Federal Highway Administration (FHWA) per-
taining treatment of PPP funds and the application of the FAR
credits clause. In particular, they alleged that proposed guidance
from FHWA would require all PPP loan forgiveness credits to be
accounted for as indirect costs, which would in turn result in a re-
duction of their indirect cost rates. Thus, they advocated for a
waiver of the FAR credits clause.
During the hearing, Ms. Moser explained how such proposed
guidance from FHWA would be inconsistent with FAR cost prin-
ciples. The hearing served as an opportunity for witnesses to
present their recommendations as to how to address industry’s con-
cerns. Ultimately, there was consensus among the witnesses about
the need for FHWA to develop and issue better guidance- one that
is in alignment with a proper application of the FAR credits clause.
SUPPLY CHAIN RESILIENCY AND THE ROLE OF SMALL MANUFACTURERS
On Thursday, April 29, 2021, the Subcommittee on Economic
Growth, Tax, and Capital Access held a remote hearing titled,
‘‘Supply Chain Resiliency and the Role of Small Manufacturers.’’
The hearing provided an update on the current state of supply
chains for small manufacturers across multiple sectors. The hear-
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ing also provided Members an outlook for the near future of the
manufacturing industry as the economy slowly begins to recover
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from the COVID–19 pandemic. Members also heard about the SBA
capital access and investment programs small manufacturers use
to finance their operations.
Witnesses on the panel included: Mr. Claudio Dente, President,
Dentec Safety Specialists, Lenexa, KS; Mr. Wes Hampp, Co-Found-
er and Managing Partner, Holleway Capital Partners, LLC, Over-
land Park, KS; Ms. Kimberly Glas, President & CEO, National
Council of Textile Organizations, Washington, DC; and Mr. David
Taylor, President & CEO, Pennsylvania Manufacturers’ Associa-
tion, Harrisburg, PA.
In his testimony, Mr. Dente discussed the challenges his busi-
ness faced in needing to rapidly adjust production to meet demand
for masks and respirators. He also highlighted some of the unique
challenges manufacturers face in accessing affordable long-term
capital. Mr. Hampp’s testimony touched on the importance of pa-
tient, equity capital as the manufacturing sector remains in a state
of uncertainty, since equity investors are positioned to provide cap-
ital injections as market conditions dictate. Specifically, Mr.
Hampp discussed the role SBA’s capital access and investment pro-
grams, specifically the Small Business Investment Company (SBIC)
Program can play in helping finance the domestic manufacturing
sector. Mr. Hampp also highlighted the role SBA’s Paycheck Pro-
tection Program (PPP) played in helping stabilize small firms at a
time when economic uncertainty was at a peak, saying the program
helped many firms, who would have otherwise closed, stay afloat.
Ms. Glas’ testimony covered issues faced specifically by small man-
ufacturers in the textile industry, including competition from over-
seas. She also discussed how SBA’s capital access programs, spe-
cifically the 7(a) and 504 loan guaranty programs, can supplement
trade policy to help shore up the domestic manufacturing base. Mr.
Taylor’s testimony identified the inability to recruit and retain a
skilled workforce as one of the most significant challenges facing
the manufacturing sector currently. He encouraged Congress to re-
form the ‘‘highly fragmented’’ state-federal workforce development
programs.
GROWING JOBS THROUGH INFRASTRUCTURE INVESTMENT
On Thursday, May 6, 2021, the Subcommittee on Innovation, En-
trepreneurship, and Workforce Development held a remote hearing
titled, ‘‘Growing Jobs through Infrastructure Investment.’’ The
hearing provided the Subcommittee the opportunity to hear from
small business owners, union members, and workforce development
experts about the need for workforce development investment in
the American Jobs Plan.
Witnesses on the panel included: Mr. Michael Tamasi, President
and CEO, Accurounds, Avon, MA; Dr. Annette Parker, President,
South Central College, Mankato, MN; Mr. Eddie Bustamante, Po-
litical and Legislative Director, LiUNA Local 720, Denver, CO; Mr.
Gus Bruner, President and Project Executive, Caliagua, Inc., Ana-
heim, CA.
Mr. Tamasi explained the need for more workforce development
in the manufacturing sector from the perspective of a small busi-
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ness owner who struggles finding skilled labor, and as a result in-
vests his time and resources in training and upskilling workers
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alongside involvement in state workforce development programs.
Dr. Parker drew from her years of experience in workforce develop-
ment to explain the success of community colleges in partnering
with the private sector and local communities to train a local work-
force with in-demand skills. Mr. Bustamante highlighted the role
of labor unions in training skilled workers through apprenticeships.
Mr. Bruner emphasized the need for federal infrastructure invest-
ment and explained why workforce development efforts would be
needed to help implement the plan.
EXAMINING THE ROLE OF COMMUNITY DEVELOPMENT FINANCIAL IN-
STITUTIONS AND MINORITY DEPOSITORY INSTITUTIONS IN SMALL
BUSINESS LENDING
On Tuesday, May 18, 2021, the Subcommittee on Economic
Growth, Tax, and Capital Access held a hybrid hearing titled, ‘‘Ex-
amining the Role of Community Development Financial Institu-
tions and Minority Depository Institutions in Small Business Lend-
ing.’’ The hearing introduced Members to Community Development
Financial Institutions (CDFIs) and Minority Depository Institutions
(MDIs), and discussed the impact these institutions make in their
communities, especially with respect to supporting local entre-
preneurs. Members also learned about the SBA and non-SBA pro-
grams intended to support CDFIs and MDIs.
Witnesses on the panel included: Ms. Aissatou Barry-Fall, Presi-
dent and CEO, Lower East Side People’s Federal Credit Union,
New York, NY; Mr. Everett Sands, Founder and CEO, Lendistry,
Brea, CA; Mr. Robert James II, President, Carver CDE, Chairman,
National Bankers Association, Savannah, GA; and Mr. Walter L.
Davis, Founder, Peachtree Providence Partners Holding Company,
Charlotte, NC.
In her testimony, Ms. Barry-Fall discussed the challenges her
small CDFI credit union faced in needing to rapidly respond to
meet demand for PPP loans, especially during the second round of
funding once the credit union was able to get on the SBA platform.
She also highlighted the unique challenges small CDFIs faced in
maximizing their PPP lending, since many small lenders did not
have sufficient deposits to meet demand for PPP. Mr. Sands’ testi-
mony touched on the role technology can play in helping promote
a more fair and transparent small business lending market. Mr.
Sands also discussed the role SBA’s Community Advantage Pro-
gram can play in helping CDFIs and other mission-based lenders
finance small businesses who struggle to access capital from banks.
Mr. James’ testimony covered issues directly impacting the nation’s
MDIs, including the lack of an office at SBA dedicated to pre-
serving MDIs and promoting their participation in SBA’s programs.
He also discussed how Treasury’s Emergency Capital Investment
Program will improve access to capital for MDIs, improving their
ability to make small-dollar loans. Mr. Davis’ testimony urged Con-
gress to consider allowing CDFIs to qualify to receive equity invest-
ments as Opportunity Zone businesses, which would arguably allow
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for more capital to flow to minority-owned businesses.
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THE SMALL BUSINESS ADMINISTRATION’S ENTREPRENEURIAL ECO-
SYSTEM: AN UPDATE AND NEXT STEPS WITH SBA’S RESOURCE PART-
NERS
On Wednesday, May 19, 2021, the Subcommittee on Innovation,
Entrepreneurship, and Workforce Development held a hybrid hear-
ing titled, ‘‘The Small Business Administration’s Entrepreneurial
Ecosystem: An Update and Next Steps with SBA’s Resource Part-
ners.’’ During the hearing, Committee Members heard from Small
Business Administration (SBA) Resource Partners and a Small
Business Development Center (SBDC) client.
Witnesses on the panel included: Mr. Tee Rowe, President and
CEO, America’s SBDC; Ms. Bridget Weston, CEO, SCORE; Ms.
Corinne Hodges, CEO, Association of Women’s Business (AWBC);
and Mr. Patrick Montgomery, Founder/CEO, Kansas City Cattle
Company, Kansas City, Missouri.
Mr. Rowe testified about SBDCs work with small business own-
ers across the country, and how requests for SBDC services have
risen during the pandemic. Mr. Rowe also testified on SBDCs ef-
forts moving forward including SBDC cybersecurity services, in-
creasing outreach to underserved communities, and importance of
the reauthorization of SBA’s entrepreneurial development pro-
grams. Mr. Weston testified about SCORE’s network of volunteer
mentors, the program’s accomplishments in closing all the SBA Of-
fice of Inspector General’s (OIG) recommendations, and SCORE’s
plan to use additional funding to expand their outreach and serv-
ices. Ms. Hodges spoke about how the Women’s Business Center
(WBC) serves underserved women-owned small businesses and
women entrepreneurs, the work they did throughout the expansion,
and how the program can be improved through reauthorization.
Mr. Montgomery testified about how his local SBDC helped him
troubleshoot and grow his business and how vital the Resource
Partner network, and the services they provide, are to small busi-
ness owners and entrepreneurs.
A REVIEW OF THE SBA’S GRANT PROGRAMS
On Thursday, May 27, 2021, the Subcommittee on Oversight, In-
vestigations, and Regulations held a remote hearing titled, ‘‘Road
to Recovery: The Impact of SBA Pandemic Grant Programs.’’ The
hearing gave Members an opportunity to hear from small business
owners and advocates about the implementation and effectiveness
of the SBA’s pandemic related grant programs, the Shuttered
Venue Operators Grant (SVOG) and the Restaurant Revitalization
Fund (RRF).
Witnesses on the panel included: Ms. Cheetie Kumar, Chef and
Owner of Garland Restaurant, Raleigh, NC; Ms. Esther Baruh, Di-
rector of Government Relations, National Association of Theatre
Owners, Washington, DC; Mr. Chris Montana, Owner and CEO of
Du Nord Craft Spirits, Minneapolis, MN; and Mr. Mark Maguire,
Owner of Maguire’s Kitchen & Catering, Dallas, TX.
Overall, witnesses discussed the impact of the COVID–19 pan-
demic on restaurants and live venue and theater industry. The
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small businesses in these sectors have faced unprecedented de-
clines in business, as they were forced to shut down for much of
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2020. Restaurants faced dramatic decreases in sales, while venues
and theaters were mostly shuttered. Throughout the COVID–19
pandemic Congress has made improvements to the SBA’s economic
relief programs, created new support programs, and provided in in-
flux of loans and grants to help small businesses across the coun-
try. The task of implementing the legislation and new SBA grant
programs like SVOG and RRF has expanded the role of SBA.
At the hearing Ms. Kumar discussed the importance of the RRF
to her business, and the challenges her restaurant faced during the
pandemic. She also discussed the impact of COVID–19 on the res-
taurant industry and outlined that many people left this sector for
better and more stable employment. Ms. Baruh discussed the enor-
mous challenges facing the theater industry, the need for relief,
and some of the challenges with the SVOG. She discussed that
while SBA has been engaged and responsive to stakeholders, the
task of setting up and administering a new grant program has
proved to be a difficult task for SBA leaving many businesses
struggling to hang on. However, at the time of the hearing SVOG
funding was just starting to be released. Mr. Montana discussed
the importance of SBA’s RRF to minority owned businesses and
outlined that challenge that his business faced in access SBA’s ini-
tial relief through PPP. He also talked about the importance of fed-
eral relief in keeping his business going. Mr. Maguire also dis-
cussed the RRF, and the importance of both prioritizing awards as
well as the need for more funding in the program. He also talked
about the challenges of bringing employees back to the food indus-
try. Each of the witnesses talked about the importance of SBA re-
lief programs, and the need for additional engagement from Con-
gress and the SBA as sectors continue to struggle with the eco-
nomic downturn brought on by COVID–19.
UTILIZATION OF SMALL CONTRACTORS IN THE INFRASTRUCTURE PLAN
On Thursday, June 10, 2021, the Subcommittee on Contracting
and Infrastructure met for a hybrid hearing titled, ‘‘Utilization of
Small Contractors in the Infrastructure Plan.’’ It focused on the im-
portance of infrastructure investment and the contracting opportu-
nities for small businesses, who will play a central role in upgrad-
ing the nation’s infrastructure. The hearing provided Committee
Members the opportunity to learn more where contractual opportu-
nities lie as well as the resources small businesses need to under-
take infrastructure projects.
Witnesses on the panel included: Ms. Sheila Ohrenberg, National
President, Women Construction Owners and Executives (WCOE)
and President, Sorella Group, Kansas City, KS; Mr. Ralph Thomas
III, National Director Emeritus, National Association of Minority
Contractors (NAMC) and Attorney, Law Offices of Ralph C. Thom-
as III PLLC, Washington, DC; Mr. Josh Bone, Executive Director,
ELECTRI International, Washington, DC, who testified on behalf
of the National Electrical Contractors Association (NECA); and Ms.
Annie Mecias-Murphy, Treasurer and Board Member, Associated
Builders and Contractors (ABC), Florida First Coast Chapter, and
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Co-Owner & President, JA&M Developing Corp., Pembroke Pines,
FL.
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In general, witnesses highlighted the need for a robust infra-
structure plan that would result in additional contracting opportu-
nities for small businesses, especially in the aftermath of the
COVID–19 pandemic. Specifically, Ms. Ohrenberg underscored the
need to couple this investment with more accountability with re-
spect to the Women-Owned Small Business Goals, increasing trans-
parency of the Small Business Procurement Scorecard and except-
ing the Miller thresholds for periodic adjustments for inflation.
Similarly, Mr. Bone highlighted the importance of enforcing prompt
payment provisions. He also talked about his organization’s efforts
toward building a more skilled workforce given that training is an
essential component of any infrastructure investment. In turn, Mr.
Thomas’ testimony focused on what this infusion of capital would
mean for all those underrepresented small businesses across the
country that participate in the Department of Transportation’s Dis-
advantaged Business Enterprise (DBE) Program and ensuring the
DBE 10 percent goal is met or surpassed. Finally, Ms. Mecias-Mur-
phy provided her perspective as a small business owner, including
her support for increasing the sole-source thresholds in the various
SBA contracting programs.
REVERSING THE DECLINE IN WOMEN ENTREPRENEURSHIP:
OPPORTUNITIES FOR REBUILDING THE ECONOMY
On Tuesday, June 15, 2021, the Subcommittee on Economic
Growth, Tax, and Capital Access met for a hybrid hearing titled,
‘‘Reversing the Decline in Women Entrepreneurship: Opportunities
for Rebuilding the Economy.’’ This hearing gave Members an op-
portunity to hear about how the pandemic has exacerbated per-
petual challenges facing women entrepreneurs and how many
women responded with innovative solutions.
Witnesses on the panel included: Ms. Sherry Turner, Executive
Director, Kansas City Women’s Business Center, Fairway, KS; Ms.
Tammy Williams, Founder and CEO, Envision2bWell, Inc., West
Chester, PA; Ms. Ayris Scales, CEO, Walker’s Legacy Foundation,
Washington, DC; and Ms. Natalie Buford-Young, CEO, Spring-
board Enterprises, Vienna, VA.
Overall, the hearing discussed how women-owned small busi-
nesses have been severely impacted by the coronavirus pandemic
with many reporting a decline in sales and fear of permanent clo-
sure. Witnesses discussed how women entrepreneurship can be-
come an economic engine of growth, and how Congress will need
to consider ways to support women entrepreneurs, workers, and
small business owners. Ms. Turner discussed the important role
that WBCs play in supporting women entrepreneurs and small
businesses, and the increased role of WBCs during the pandemic
in providing education and technical assistance. Ms. Williams dis-
cussed her role as a tech entrepreneur, and the challenges she has
faced in accessing capital and vital mentorship as she grows her
business. Ms. Scales outlined the specific challenges facing women-
entrepreneurs of color, and the vital role that entrepreneurship can
play in supporting economic growth and prosperity. Ms. Buford-
Young talked about access to capital, and the challenges that
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women face in accessing venture capital. Each of the witnesses
talked about the importance of SBA relief programs, and the need
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for additional engagement from Congress and the SBA in bol-
stering women entrepreneurship in help overcome the economic
downturn brought on by COVID–19.
SUPPORTING SMALL ENTITIES THROUGH INVESTMENTS IN THE
NATIONAL INFRASTRUCTURE: BROADBAND
On Wednesday, June 16, 2021, the Subcommittee on Under-
served, Agricultural, and Rural Development met for a hybrid
hearing titled, ‘‘Supporting Small Entities through Investments in
the National Infrastructure: Broadband.’’ At this hearing, Members
examined broadband as a critical part of the nation’s infrastructure
and strategies to reduce the digital divide, including how the Amer-
ican Jobs Plan allocates $100 billion to reach full broadband cov-
erage.
Witnesses on the panel included: Ms. Peggy Schaffer, Executive
Director, ConnectMaine Authority, Augusta, ME; Mr. Dan Sullivan,
President, Downeast Broadband Utility, Calais, ME; Mr. Matt
Dunne, Founder and Executive Director, Center on Rural Innova-
tion, Hartland, VT; and Mr. Tim Waibel, President, Minnesota
Corn Growers Association, Burnsville, MN.
In her testimony, Ms. Schaffer explained Maine’s broadband
strategies, the impact of federal funding programs, and the role of
local governments. Mr. Sullivan presented the benefits of munici-
pally owned broadband infrastructure. Mr. Dunne explained the
necessity of broadband for revitalizing rural communities and ex-
panding economic opportunities. Mr. Waibel emphasized modern
farmers’ need for reliable and affordable internet access to fully uti-
lize technologies.
PRIORITIZING SMALL UNDERSERVED AND RURAL BUSINESSES IN THE
SBIR/STTR PROGRAMS
On Thursday, June 23, 2021, the Subcommittee on Underserved,
Agricultural, and Rural Development held a hybrid hearing titled,
‘‘Prioritizing Small Underserved and Rural Businesses in the SBIR/
STTR Programs.’’ The hearing was scheduled to begin at 2:00 P.M.
but was delayed by votes; it took place both in the hearing room
and on Zoom. This was the second hearing in a series on the Small
Business Innovation Research (SBIR) and Small Business Tech-
nology Transfer (STTR) programs, which is authorized through
September 30, 2022. The SBIR and STTR programs share four
goals, one is to foster inclusion and diversification among innova-
tive firms. At this hearing, Members examined agency strategies
and measured progress made towards the diversification goal.
Witnesses on the panel included: Dr. Joshua A. Henry, President
and Founder, GO Lab, Inc., Belfast, ME; Ms. Nancy Min, Founder,
ecoLong, Buffalo, NY, she testified on behalf of the Clean Energy
Business Network; Dr. Angelique Johnson, Founder & Chief Execu-
tive Officer, MEMStim LLC, Louisville, KY; and Dr. David Green,
Chief Executive Officer, Physical Sciences Inc., Andover, MA.
In his testimony, Dr. Henry emphasized the need for SBIR/
STTR, but called for improvements to the program’s challenging
application and burdensome requirements. Ms. Min reflected on
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the importance of support programs for SBIR/STTR participants
with limited internal resources. Dr. Johnson outlined specific pro-
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gram reforms that would increase diversity among SBIR/STTR
awardees. As an awardee of 1,413 SBIR/STTR projects, Dr. Green
presented his business’ strategies for success.
CMMC IMPLEMENTATION: WHAT IT MEANS FOR SMALL BUSINESSES
On Thursday, June 24, 2021, the Subcommittee on Oversight, In-
vestigations, and Regulations met for a hybrid hearing titled,
‘‘CMMC Implementation: What It Means for Small Businesses.’’ It
centered on the Cybersecurity Maturity Model Certification
(CMMC) framework, which is the Department of Defense’s latest
initiative to increase cybersecurity preparedness across the defense
industrial base. The hearing provided Members with the oppor-
tunity to learn more about this initiative, how it is being imple-
mented and the compliance challenges it poses for small busi-
nesses.
Witnesses on the panel included: Mr. Jonathan T. Williams,
Partner, PilieroMazza PLLC, Washington, DC; Mr. Scott Singer,
President, CyberNINES, Madison, WI; Ms. Tina Wilson, Chief Ex-
ecutive Officer, T47 International, Inc., Upper Marlboro, MD; and
Mr. Michael Dunbar, President, Ryzhka International LLC., Pom-
pano Beach, FL, who testified on behalf of the HUBZone Contrac-
tors National Council.
The hearing shed light onto the many difficulties the CMMC ini-
tiative entails for small businesses, including the complexity of the
regulations, duplication between these cyber regulations and exist-
ing ones, unclear implementation timelines, potential bottlenecks
in obtaining certification, concerns as to potential fraudulent actors
taking advantage of small business and lack of clear guidance in
terms of the CMMC level that will be required from subcontractors.
All four witnesses presented their recommendations how to tackle
these challenges. For example: Mr. Williams highlighted that the
SBA and DOD mentor-protege programs could be utilized to ensure
that mentors provided small businesses with the resources and
guidance needed to obtain CMMC certification. He also advocated
for not requiring CMMC certification from joint ventures if member
companies to the joint venture were certified.
All 4 witnesses agreed that the most significant concern is the
costs associated with the initiative, which have not yet been clearly
defined by DOD. In this respect, Mr. Dunbar advocated for more
cost transparency and building guardrails for rising compliance
costs while Ms. Wilson expressed the need for a balanced cost ap-
proach to guarantee small businesses will be able to remain in the
defense industrial base. Finally, Mr. Singer advocated for the iden-
tification of additional streams of funding that can help small busi-
nesses assume these costs.
JOBS! JOBS! JOBS!
On Wednesday, June 30, 2021, the Subcommittee on Innovation,
Entrepreneurship, and Workforce Development held a hybrid hear-
ing titled, ‘‘Jobs! Jobs! Jobs!’’ The hearing provided Subcommittee
Members the opportunity to hear from academics, nonprofit lead-
ers, SBA Resource Partners, and small business about the overall
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landscape of entrepreneurship and the decades long decline in
startup rates in the United States. The hearing also discussed the
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Next Generation Entrepreneurship Corps Act, legislation intro-
duced by Chairman Jason Crow (D–CO).
Witnesses on the panel included: Mr. John Dearie, President,
Center for American Entrepreneurship, Great Falls, VA; Dr. J.D.
LaRock, President and CEO, Network for Teaching Entrepreneur-
ship, New York City, NY; Ms. Denyse Airheart, Director of Busi-
ness Pathways, Mi Casa Resource Center, Denver, CO; and Mr.
Craig Etking, President and CEO, Intelligence360, Sugarland, TX.
Mr. Dearie testified about the decades long decline in entrepre-
neurship rates around the country, including voicing his support
for H.R. 1226, the Next Generation Entrepreneurship Corps Act.
Dr. LaRock testified about the need to increase the interaction be-
tween the education system and entrepreneurial development. Ms.
Airheart emphasized the need for more mentorship for small busi-
ness owners, who are often not aware of many of the resources
available to those starting firms. Mr. Etkin discussed the business
landscape and emphasized the need to maintain favorable business
conditions to help small firms recover.
RURAL AMERICAN RECOVERY: THE ROLE OF SMALL BUSINESSES AND
ENTREPRENEURSHIP
On Tuesday, July 13, 2021, the Subcommittee on Underserved,
Agricultural, and Rural Business Development held a remote hear-
ing titled, ‘‘Rural American Recovery: The Role of Small Businesses
and Entrepreneurship.’’ This hearing gave Members of the Com-
mittee the opportunity to hear about the benefits small firms bring
to rural communities, difficulties they face, and how the Small
Business Administration can play a role in supporting them, such
as through the Office of Rural Affairs.
Witnesses on the panel included: Mr. Nathan Ohle, CEO, Rural
Community Assistance Partnership, Washington, DC; Ms. Jessica
Campos, Women’s Business Center Director, Center for Rural Af-
fairs, Lyons, NE; Mr. Brett Challenger, Senior Vice President,
CoBank, Greenwood Village, CO; and Mr. Alan Crawford, Owner
and President, Rangaire Manufacturing, Cleburne, TX.
Overall, witnesses talked about the importance of rural and
Main Street businesses as the backbone of communities across the
nation. The Committee heard about the unique challenges rural en-
trepreneurs face compared to their urban counterparts. Among the
top challenges are geographic isolation, inadequate broadband
internet service, difficulty in hiring and retaining qualified work-
ers, barriers to capital and reluctance from major industries to pro-
vide service in rural areas. Mr. Ohle talked about the role of the
federal government in bolstering entrepreneurial infrastructure to
support small businesses and rural communities. Ms. Campos
talked about how SBA Resource Partners and the SBA can do more
to support and engage with rural small businesses. Mr. Challenger
talked directly about the previous work of the SBA Office of Rural
Affairs and the importance of investing in this office so that it can
continue to function. Mr. Crawford talked about the economic chal-
lenges that his business is facing due to the COVID–19 pandemic.
This hearing provided Members with a solid understanding of why
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the Office of Rural Affairs is important to supporting rural small
businesses and entrepreneurs.
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INNOVATION AS A CATALYST FOR NEW JOBS: SBA’S INNOVATION
INITIATIVES
On Wednesday, July 14, 2021, the Subcommittee on Economic
Growth, Tax, and Capital Access held a remote hearing titled, ‘‘In-
novation as a Catalyst for New Jobs: SBA’s Innovation Initiatives.’’
During the hearing, Committee Members heard from participants
of the Small Business Administration (SBA) Growth Accelerator
Fund Competition, innovation experts, and small business owners.
Witnesses on the panel included: Mr. E. LaVerne Epp, Executive
Chair, KU Innovation Park, Lawrence, Kansas; Mr. Benjamin
Johnson, Chairman, Innovation Advocacy Council, Westerville,
Ohio; Dr. Gabriel R. Burks, Vice President and Head of R&D,
FrostDefense Envirotech Inc., Champaign, IL; and Mr. Jeffrey
Maguire, Managing Partner & Co-Founder, Clearly Clean LLC,
Orwigsburg, PA.
Mr. Epp testified about his experience leading the KU Innovation
Park, a six-year Growth Accelerator Fund Competition recipient,
and the positive impact it has had on high-growth small busi-
nesses. Mr. Johnson testified on behalf of the Innovation Advocacy
Council (IAC) and spoke to the importance of supporting innova-
tion-based businesses and how additional support for SBA’s pro-
grams can enhance and increase those types of businesses. Dr.
Burks testified about his experience in the EnterpriseWorks growth
accelerator, an SBA Growth Accelerator Fund Competition recipi-
ent, and how it has positively impacted his business, FrostDefense.
Dr. Burks spoke to the resources provided by the growth accel-
erator and how they have enabled FrostDefense to grow and pivot
when necessary. Mr. Maguire spoke to the importance of patents
and how protecting and defending patents can be a time and
money drain.
SBA’S ROLE IN CLIMATE SOLUTIONS
On Wednesday, July 21, 2021, the Subcommittee on Oversight,
Investigations, and Regulations met for a hybrid hearing titled,
‘‘SBA’s Role in Climate Solutions.’’ This hearing allowed Members
to learn more about the role that small businesses can play in ad-
dressing climate change, and how federal programs and services
support small businesses as they adapt, innovate, and thrive.
Witnesses on the panel included: Ms. Laurel Walk, Chief Lend-
ing Officer, Colorado Lending Source, Ltd., Denver, CO; Mr. Rick
Chapman, General Manager, The Port of Sunnyside Club, Inc.,
Stillwater, MN; Dr. Lynn Abramson, President, Clean Energy Busi-
ness Network, Washington, DC; and Mr. Mark Glenn, Owner and
Chief Executive Officer, FASTSIGNS, Carrollton, TX.
This hearing discussed the opportunities and challenges to Amer-
ica’s energy production, manufacturing, and what is needed to posi-
tion America as a clean energy leader. The Committee heard about
how small businesses play a vital role in the clean energy economy.
From adopting sustainable practices, installing energy efficient
equipment, manufacturing components of large-scale renewable en-
ergy projects, to research and innovation, small entities can be
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found in every state playing a crucial role in developing climate
smart solution. Ms. Walk testified on the important role of the SBA
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504 loan program, the need to continue adequate support of the
program, and how the program can support integrating sustain-
ability and clean energy into small business projects. Mr. Chapman
discussed climate related disasters and the impacts on small busi-
nesses. He also talked about resiliency and the importance of sup-
porting pre-disaster mitigation. Dr. Abramson provided important
testimony on the clean energy economy, the varied roles that small
businesses play, and the importance of supporting clean energy and
energy efficiency policies and programs. Dr. Abramson also out-
lined the importance of supporting research and development in
the clean energy sectors. Mr. Glenn talked about the economic
challenges that his business is facing due to the COVID–19 pan-
demic, as well as some recycling efforts of his business. Overall,
this hearing provided insight for Members on the impacts of cli-
mate change on small businesses, and what small firms can do to
engage with the clean energy economy.
WEALTH FOR THE WORKING CLASS: THE CLEAN ENERGY ECONOMY
On Tuesday, July 27, 2021, the Subcommittee on Innovation, En-
trepreneurship, and Workforce Development held a hybrid hearing
titled, ‘‘Wealth for the Working Class: The Clean Energy Economy.’’
The hearing provided Subcommittee Members the opportunity to
hear from small businesses and advocates about the opportunities
available for small businesses in the clean energy economy, the
issues faced by many firms looking for workers, and the ways to
minimize negative impacts related to decarbonization.
Witnesses on the panel included: Ms. Leticia Colon de Mejias,
CEO, Energy Efficiency Solutions, Windsor, CT; Mr. James
Hasselbeck, Director of Operations, ReVision Energy, Inc., Port-
land, ME; Mr. Samuel Gilchrist, Western Campaigns Director, Nat-
ural Resources Defense Council (NRDC), Denver, CO; and Mr. Tom
Greer, Proprietor/Owner, Hub City Brewing Co., Belen, NM.
Ms. Colon de Mejias testified about the need for adequate work-
force development and labor codes in energy efficiency as well as
the need to encourage more diversity in the industry and the bene-
fits of it being led by small firms. Mr. Hasselbeck testified about
his own experience utilizing apprenticeship programs to train
workers and how it made the clean energy economy more inclusive
to workers. Mr. Gilchrist testified on the work NRDC is doing to
diversify the economies of former coal mining communities that
will be disproportionately affected by decarbonization and ex-
plained the role of small businesses and workforce development ini-
tiatives in ensuring a just transition. Mr. Greer testified about the
use of energy in his brewing company and the need to maintain
cheap energy options through all of the above energy policies.
SUSTAINABLE FORESTRY’S ROLE IN CLIMATE SOLUTIONS
On Wednesday, September 29, 2021, the Subcommittee on Un-
derserved, Agricultural, and Rural Business Development met for
a hybrid hearing titled, ‘‘Sustainable Forestry’s Role in Climate So-
lutions.’’ As the Federal Government considers options for infra-
structure investments and ways to help mitigate and adapt to cli-
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mate change, the forestry sector offers multiple avenues to address
these goals while also promoting small business development in
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rural and underserved communities. Sustainable forest manage-
ment can provide economic and social benefits to meet the needs
of present and future generations and also play a fundamental role
in the natural resource infrastructure of our nation. This hearing
allowed Members to learn more about the role of sustainable for-
estry and how small businesses across this sector are helping to ad-
dress climate change.
Witnesses on the panel included: Mr. Dana Doran, Executive Di-
rector, Professional Logging Contractors of Maine, Dr. Adam
Daigneault, Assistant Professor of Forest, Recreation, and Con-
servation Policy & Economics, University of Maine, Mr. Mark
Thibodeau, Regional Manager, ReEnergy, and Mr. Scott Dane, Ex-
ecutive Director, American Loggers Council.
Overall witnesses discussed the tremendous forest and woodland
natural resources that cover about 33 percent of our country and
provide numerous environmental and economic benefits. Mr. Doran
discussed how sustainable forestry management and timber har-
vesting can be part of the solution and not part of the problem in
terms of climate change. He also discussed forestry’s role in sup-
porting rural communities and the economy. Dr. Daigneault out-
lined details on how forests are highly valued for the diverse eco-
system services that they provide, including the production of tim-
ber, fiber and fuel resources, carbon sequestration, climate change
mitigation, freshwater, habitat, recreation, and preservation of cul-
tural values. He also brought up the importance of well-managed
forests and how they can provide a wide range of co-benefits to so-
ciety. Mr. Thibodeau discussed how sustainable forestry is an im-
portant contributor to mitigating climate change and reducing the
risk of wildfire. He also highlighted the importance of wood mar-
kets and wood utilization for forest maintenance. Mr. Dane dis-
cussed that both public and private lands cannot be managed in a
healthy and sustainable way without logging and a viable timber
industry. Overall, this hearing was a well-rounded discussion about
the small businesses and markets of the forestry sector and the im-
portance of sustainable managed forests to support climate change
adaptation and mitigation.
GROWING THE SMALL BUSINESS SUPPLIER BASE IN GOVERNMENT
CONTRACTING
On Wednesday, October 13, 2021, the Subcommittee on Con-
tracting and Infrastructure met for a remote hearing titled, ‘‘Grow-
ing the Small Business Supplier Base in Government Contracting.’’
It focused on Category Management, an initiative that has sub-
stantially contributed to the decrease in the federal small business
supplier base. The hearing examined Category Management’s im-
pact on small businesses serving as prime contractors and explored
potential solutions to reverse the decline.
Witnesses on the panel included: Ms. Alba Alemán, Chief Execu-
tive Officer and Founder, Citizant Inc., Chantilly, VA, who testified
on behalf of the U.S. Women’s Chamber of Commerce; Ms. Lynn
Ann Casey, Chief Executive Officer and Founder, Arc Aspicio,
Washington, DC; Mr. Victor Holt, Chief Executive Officer and
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Founder, V–Tech Solutions Inc., Silver Spring, MD, testifying on
behalf of the HUBZone Council; and Ms. Sophia Tong, Chief Execu-
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tive Officer and Founder, T and T Consulting Services Inc., Falls
Church, VA, who testified on behalf of the Montgomery County
Chamber of Commerce.
The witnesses underscored how Category Management is ad-
versely impacting small businesses. In particular, Ms. Alba Alem
n explained that Category Management is taking away contracting
opportunities for small businesses, having taken approximately 30
percent of her company’s work away. She stated that Category
Management relies on massive contracting vehicles—known as
Best in Class or BICs—in which small businesses cannot compete
because of the extensive experience, credentials and requirements
they include. As a result, CM was acting as a barrier to entry, hin-
dering competition and stifling innovation. Similarly, Ms. Casey
stated that Category management is contributing to the decrease
in the federal small business supplier base and expressed how she
has seen a decrease in the amount and scope of contracts available
to small businesses. She added that many of the requirements pre-
viously performed by small businesses were moving to BIC vehicles
and therefore—because small businesses were oftentimes not BIC
contract holders—they were effectively barred from recompeting on
the work.
In their testimonies, Mr. Holt and Ms. Tong concurred with what
had been previously said and expounded on the challenges. Mr.
Holt highlighted how BICs have limited number of awardees and
how some don’t allow for future ‘‘on ramp’’ opportunities to get into
the vehicle after initially awarded. Furthermore, Ms. Tong elabo-
rated on the unique difficulties that may arise from serving as a
subcontractor to a BIC holder, such as very thin profit margins or
losing the relationship with the government client. Given all these
challenges, the witnesses agreed with and expressed support for an
amendment introduced as part of the National Defense Authoriza-
tion Act for FY 2022 that would have exempted stand-alone con-
tracts given to small businesses in any of the socioeconomic set-
aside programs (8(a), WOSB, SDVOSB and HUBZone) from Cat-
egory Management and its goals.
GLOBAL SUPPLY CHAINS AND SMALL BUSINESS TRADE CHALLENGES
On Wednesday, October 20, 2021, the Subcommittee on Over-
sight, Investigations, and Regulations met for a hybrid hearing ti-
tled, ‘‘Global Supply Chains and Small Business Trade Challenges.’’
The COVID–19 pandemic exposed many weaknesses in the global
supply chains that small businesses rely on to provide goods and
services. As the economy seeks to recover, small firms and con-
sumers alike continue to experience product shortages and trans-
portation delays that hinder a strong recovery. The hearing allowed
Members to examine the issues causing disruptions, challenges
small entities face in adjusting to the disruptions, and steps Con-
gress can take to strengthen supply chain resiliency.
Witnesses on the panel included: Mr. Kevin Loe, Director of Cus-
tomer Engagement, Redi-Rock International, Mr. Chris O’Brien,
Chief Commercial Officer, C.H. Robinson, Ms. Christine Lantinen,
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President and Owner, Maud Borup Inc., and Mr. John C. Fowke,
President, Homes by John C. Fowke Inc.
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This hearing was multifaceted, discussing both supply chain
issues as well as the Small Business Administration’s trade sup-
port programs. Mr. Loe discussed the State Trade Expansion Pro-
gram (STEP) and how it was helpful in supporting his company’s
engagement in international trade. As a result, RediRock has
grown export revenue by more than $3.5 million. Mr. O’Brien out-
lined how economic growth, weather, labor availability, regulations,
transportation infrastructure, and other factors impact our global
supply chains. He also outlined how the world’s supply chains and
transportation infrastructure wasn’t built to handle the near shut
down of the early months of COVID–19 followed by the very rapid
restart as many industries came back online and demand increased
across the globe. Ms. Lantinen outlined her experiences as a small
business owner struggling to get materials and components in from
other countries, as well as challenges with domestic trucking capac-
ity. She also discussed the labor challenges her business has faced
because people left the workforce and standards for pay rates have
increased. Mr. Fowke outlined similar supply chain challenges for
his industry in accessing raw materials due to supply chain con-
straints, as well as challenges with higher wage demands.
A REVIEW OF THE SBIC PROGRAM
On Wednesday, October 27, 2021, the Subcommittee on Economic
Growth, Tax, and Capital Access held a hybrid hearing titled, ‘‘A
Review of the SBIC program.’’ The hearing educated Members
about the Small Business Administration’s (SBA) Small Business
Investment Company (SBIC) program, which is designed to provide
debt and equity financing to high-growth small businesses lacking
access to adequate capital from traditional sources. Members also
discussed recent proposals to target SBIC investment to underrep-
resented businesses and critical sectors, as well as ways to improve
investor diversity in the program.
Witnesses on the panel included: Ms. Holly Huels, Founder and
Managing Partner, Holleway Capital Partners, LLC, St. Louis, MO;
Mr. Carl Kopfinger, Senior Vice President, TD Bank, Philadelphia,
PA; Ms. Carmen Palafox, Partner, MiLA Capital, Chatsworth, CA;
and Mr. John Mickelson, Managing Partner, Midwest Growth Part-
ners, West Des Moines, IA. Mr. Kopfinger provided written testi-
mony, but due to unforeseen circumstances was unable to partici-
pate during the hearing.
In her testimony, Ms. Huels discussed the current state of pro-
gram operations after multiple years of reported mismanagement.
Ms. Huels reported improvements in this area, but also identified
more areas that need improvement, including the agency’s informa-
tion technology systems and staffing shortages. Mr. Kopfinger’s
written testimony from the perspective of a SBIC limited partner
(LP) discussed the role banks play in the SBIC program. His testi-
mony also mentioned that despite it being a challenging year, zero
SBIC debenture funds and non-leveraged SBIC funds entered liq-
uidation, which is the equivalent of a bank’s ‘‘workout’’ group. Ms.
Palafox testified that the SBIC program can help women and
underrepresented fund managers grow their presence, activate
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more investment into startups, and generate other benefits to soci-
ety. She also testified in support of efforts to improve diversity in
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the SBIC program, including through a Micro-SBIC license and an
Emerging Managers program. Mr. Mickelson testified in support of
allowing Rural Business Investment Companies (RBICs) licensed
by the U.S. Department of Agriculture to draw leftover federal
funds from the SBIC program. He also testified in support of the
creation of a Micro-SBIC license to help create a more inclusive
pool of talented investors to invest in rural and underserved com-
munities.
THE COMMUNITY COLLEGE PIPELINE TO SMALL BUSINESSES
On Thursday, November 4, 2021, the Subcommittee on Innova-
tion, Entrepreneurship, and Workforce Development held a hybrid
hearing titled, ‘‘The Community College Pipeline to Small Busi-
nesses.’’ The hearing provided Subcommittee Members the oppor-
tunity to hear from educational leaders and business executives
about the importance of community colleges in rebuilding the
American economy, retooling the American workforce, and revital-
izing American businesses during the recovery from the COVID–19
pandemic and recession.
Witnesses on the panel included: Dr. Anne Kress, Ph.D., Presi-
dent, Northern Virginia Community College, Annandale, VA; Dr.
Rebecca A. Corbin, Ed.D., President & CEO, National Association
for Community College Entrepreneurship, Cary, NC; Mr. Joe Gar-
cia, Chancellor, Colorado Community College System, Denver, CO;
and Mr. Frank Boecker, Manager of Human Resources, Sunwest
Electric, Inc., Anaheim, CA.
Dr. Kress discussed the important initiatives that Northern Vir-
ginia Community College is doing to accelerate the adoption of ap-
prenticeships and emphasize the importance of noncredit courses to
help adult learners adapt to changing workforce needs. Dr. Corbin
discussed the initiatives her organization is establishing in part-
nership with community colleges to foster more entrepreneurship
among community college students. Mr. Garcia discussed the im-
portance of the community college system in delivering quality and
affordable education as well as a pathway into the middle class and
good-paying jobs. Mr. Boecker discussed the needs of businesses for
skilled workers and his experience recruiting workers as a human
resource manager and member of the associated builders and con-
tractors.
SECOND SESSION OF THE 117TH CONGRESS
THE INFRASTRUCTURE INVESTMENT AND JOBS ACT’S BENEFITS FOR
SMALL BUSINESS
On Tuesday, February 15, 2022, the Subcommittee on Under-
served, Agricultural, and Rural Business Development held a hear-
ing titled, ‘‘The Infrastructure and Jobs Act’s Benefits for Small
Businesses.’’ Members heard from small firms and experts about
how small firms can utilize the funds available to grow their busi-
nesses and obtain lasting success. The hearing provided Sub-
committee Members an opportunity to explore the benefits Presi-
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dent Biden’s Infrastructure Investment and Jobs Act has for small
businesses.
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Witnesses on the panel included: Mr. Ed Mortimer, Vice Presi-
dent, Transportation Infrastructure United States Chamber of
Commerce, Washington, DC; Mr. Mark Ouellette, President, and
Chief Executive Officer, Axiom Technologies, LLC., Machias, ME;
Mr. Jason J. Shedlock, Regional Organizer, Laborers’ International
Union, New England Region Organizing Fund President, Maine
State Building & Construction Trades Council, Portland, ME; and
Mr. Terrance Lee Baker, Owner, Operator, and Independent Con-
tractor T.L. Baker Pilot Car Escort Services, Blooming, Prairie,
MN.
Mr. Mortimer emphasized the importance of investment within
America’s aging infrastructure and illustrated the relationship be-
tween access to transportation and broadband to quality of life. Mr.
Ouellette discussed the importance of the Infrastructure and Job
Act on his ability to provide healthcare, hire more employees, all
while increasing his bottom line. Mr. Shedlock discussed how the
vitality of the American middle class is centered around strong
trade unions and their respective ability to safely and effectively
rebuild the nation. Finally, Mr. Baker called upon his experiences
scaling small businesses to display the risk of changing infrastruc-
ture priorities.
THE 8(a) PROGRAM: OVERVIEW AND NEXT STEPS TO PROMOTE SMALL
BUSINESS SUCCESS
On Wednesday, March 2, 2022, the Subcommittee on Contracting
and Infrastructure met for a hybrid hearing titled, ‘‘The 8(a) Pro-
gram: Overview and Next Steps to Promote Small Business Suc-
cess.’’ The hearing took place at 11:00 a.m. in Room 2360 of the
Rayburn House Office Building and through Zoom. The hearing fo-
cused on the SBA’s 8(a) program, which is a 9-year business devel-
opment program that helps disadvantaged small businesses better
compete in the American economy. The hearing examined how the
program currently works as well as the resources it provides to
small businesses. Members heard from stakeholders about ways to
modernize the program and improve its effectiveness.
Witnesses on the panel included: Mr. Darryl K. Hairston, Re-
tired, Small Business Advisor, Woodbridge, VA; Ms. Jackie Robin-
son-Burnette, CEO, Senior Executive Strategic Solutions,
Woodbridge, VA; Mr. Arshdeep Khurana, President & CEO, Avosys
Technology, Inc., San Antonio, TX; and Ms. Qin Li, CEO, Soliel
LLC, Vienna, VA.
In general, the witnesses provided numerous recommendations to
improve the program. Among the most important suggestions, Mr.
Hairston recommended aligning the goals and responsibilities of
the Office of Government Contracting and Business Development
and the Office of Field Operations as both offices have overlapping
roles in the program. He also proposed tailoring 7(j) training based
on the developmental stage of small businesses. Similarly, Ms. Rob-
inson-Burnette recommended giving priority to graduated 8(a)
firms to serve as mentors to other 8(a) participants in the Mentor
Protégé program, highlighted the importance of having small busi-
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ness executives present when overarching and governmentwide
procurement policies are being set, advised that all procurement-
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related positions within the SBA need to be filled and proposed in-
creasing 8(a) sole-source thresholds.
Mr. Khurana and Ms. Li—two business owners—offered sugges-
tions based on their personal experiences participating in the pro-
gram. Mr. Khurana agreed that increasing the 8(a) sole-source
thresholds is needed and recommended giving current participants
an additional year in the program due to the operational disrup-
tions caused by the COVID–19 pandemic. Lastly, Ms. Li suggested
that the SBA should provide more oversight of the Mentor Protégé
program, which is widely used by 8(a) participants.
AN EMPIRICAL REVIEW OF THE PAYCHECK PROTECTION PROGRAM
On Wednesday, March 16, 2022, the Subcommittee on Oversight,
Investigations, and Regulations held a hearing titled, ‘‘An Empir-
ical Review of the Paycheck Protection Program.’’ The hearing al-
lowed Members to hear from government and academic researchers
about their studies on the Small Business Administration’s (SBA)
Paycheck Protection Program (PPP), a new forgivable loan guar-
antee program within the U.S. Small Business Administration
(SBA) that delivered almost $800 billion in capital to small busi-
nesses. The researchers focused on the changes Congress and SBA
made to PPP mid-way through to help program funds reach as
many underserved businesses as possible after the initial round of
funding went to predominantly large and sophisticated businesses.
There were two witness panels. The witness on the panel one in-
cluded: Mr. William Shear, Director of Financial Markets and Com-
munity Investment for the U.S. Government Accountability Office
(GAO). Witnesses on the second panel included: Dr. Robert Fairlie,
Professor of Economics, University of California-Santa Cruz, Santa
Cruz, CA; Dr. Manju Puri, J.B. Fuqua Professor of Finance, Duke
University Fuqua School of Business, Durham, NC; Dr. Iryna
Demko, Research Associate, Center for Economic Development,
Maxine Goodman Levin College of Urban Affairs, Cleveland State
University, Cleveland, OH; and Mr. Robert Barnes, President and
Chief Executive Officer, PriorityOne Bank, North Magee, MS (testi-
fying on behalf of the Independent Community Bankers of Amer-
ica).
In his testimony, Mr. Shear presented the findings of the GAO’s
study and report of PPP program changes intended to increase
lending to the smallest businesses and those in underserved mar-
kets. Specifically, GAO found by the time PPP closed in June 2021,
lending in traditionally underserved counties was proportional to
their representation in the overall small business community. In
response to questions, Mr. Shear stated the two program modifica-
tions that stood out most to him were the inclusion of Community
Development Financial Institutions (CDFIs) and actions taken to
help smaller banks participate.
During the second panel, Dr. Fairlie’s testimony provided the
first analysis of how PPP funds were disbursed to minority commu-
nities during the third (and final) round of the program, which was
targeted to such communities. He testified the ‘‘rebooted’’ PPP that
ran from January to May 2021 appears to have been disbursed to
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minority communities as intended. He attributed this to the em-
powerment of CDFIs in later rounds, as well as the 14-day applica-
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tion exclusivity period for microbusinesses. Dr. Puri testified about
the use of banks to deliver of PPP funds, focusing specifically on
the difference between big and small banks, and found significant
differences in how big and small banks prioritize small clients: big
banks were more likely to prioritize larger clients early. She found
prior lending relationships helped firms gain early PPP access, but
little evidence that relationships with big banks helped more—if
anything, small bank relationships helped firms get early PPP ac-
cess, especially with small bank lenders.
Dr. Demko testified that small woman—and minority-owned
firms did not receive PPP loans in the same sizes as their white
male-owned counterparts. Unlike the research groups led by Drs.
Fairlie and Puri, Dr. Demko and her co-author also conducted a
micro-level analysis of PPP, which consisted of 19 structural inter-
views with a variety of small businesses in Northeast Ohio. Results
from these interviews showed businesses that received smaller loan
amounts had more difficulty with the loan application process, filed
a larger number of applications, and pursued more alternative
funding sources compared to businesses that received larger loans.
Mr. Barnes’ testimony provided the community bank perspective on
PPP. He testified his bank has experienced zero cases of fraud in
the more than 1,200 loans they made because of the bank’s due
diligence and careful underwriting, which he testified is typical of
community bank PPP lenders.
On this point, Committee Members noted this is in contrast with
some online nonbank PPP lenders, who have been shown to be as-
sociated with a significantly larger portion of potential PPP loan
fraud. He also testified regarding his bank’s desire to not ‘‘saddle’’
any PPP borrowers with unexpected debt, which is aligned with
pending legislation introduced by Small Business Committee Mem-
bers regarding good faith loan amount miscalculations. Mr. Barnes
also testified in support of SBA’s 504/CDC loan program, in which
many community banks participate as third-party lenders. He stat-
ed that lending pauses, even brief ones, are very disruptive to lend-
ers and borrowers, and testified in support of a ‘‘shock-absorbing’’
mechanism in the 504/CDC program (such as one that already ex-
ists in the 7(a)loan program) that would allow the program to con-
tinue lending despite unexpected increases in demand.
CATALYZING ECONOMIC GROWTH THROUGH SBA COMMUNITY-BASED
LENDING
On Tuesday, March 29, 2022, the Subcommittee on Economic
Growth, Tax, and Capital Access held a hearing titled, ‘‘Catalyzing
Economic Growth through SBA Community-Based Lending.’’ This
hearing allowed Members to hear from these lenders and learn how
SBA’s business loan programs, especially those delivered by com-
munity-based lenders, can better meet the needs of small busi-
nesses in underserved markets. These include the 504/CDC Loan
program, the SBA Microloan program, and the Community Advan-
tage Pilot Loan Program. The SBA Paycheck Protection Program
(PPP) helped small businesses stay afloat throughout the COVID–
19 pandemic. In later phases of the program, Congress made
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changes to allow community-based lenders, including SBA Certified
Development Companies (CDCs), SBA Microloan Intermediaries,
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and Treasury-certified Community Development Financial Institu-
tions (CDFIs) to originate more PPP loans. Research shows the
changes improved the program’s reach into underserved markets.
While the PPP closed on May 31, 2021, to new applications, the
hearing explored how community-based lenders who helped deliver
PPP to underserved markets can continue to play a vital role in
providing affordable capital to entrepreneurs in these markets.
Witnesses on the panel included: Mr. Manny Flores, President/
Chief Executive Officer, SomerCor, Chicago, IL; Mr. Kerry Doi,
President/Chief Executive Officer, Pacific Asian Consortium in Em-
ployment (PACE), Los Angeles, CA; and Ms. Brooke Mirenda,
President/Chief Executive Officer, SEDCO, Clearwater, FL.
Mr. Flores’ testimony highlighted how CDCs in the SBA 504
Loan program can help alleviate supply chain and manufacturing
shortfalls in the American economy. At the end of FY 2021, the 504
program experienced a brief but highly disruptive lending pause
due to program demand exceeding authorized levels. To prevent
another lending pause in future fiscal years, he also testified in
support of combining the authorization levels of the regular 504
and 504 debt refinance programs bringing them under the same
authorization level of $15 billion. As a CDC also participating in
SBA’s Community Advantage Pilot Loan program (CA), Ms. Flores
testified in support of making the CA program permanent. Mr. Doi
testified about the role CDFIs play as financiers for small firms but
also in providing essential social and technical services that meet
the unique needs of immigrants, asylees, and those historically ex-
cluded from traditional banking. He also testified about the finan-
cial strength of the SBA Microloan program, evidenced by the pro-
gram’s cumulative default rate of less than two percent. Ms.
Mirenda’s testimony echoed support for combining the authoriza-
tion levels for 504 programs. She also testified in support of ex-
tending the authorization of the 504 Express Loan program, which
was created in the Economic Aid Act to streamline loan processing
and approval for 504 loans of $500,00 or less. Under the Economic
Aid Act, the program will sunset in September 2023, however as
of the date of this hearing, SBA had not issued a rule imple-
menting the program. She testified extending the sunset to 2027
would allow the program sufficient operating time to assess per-
formance and efficacy.
SKILL, UPSKILL, AND RESKILL: ANALYZING NEW INVESTMENTS IN
WORKFORCE DEVELOPMENT
On Thursday, March 31, 2022, the Subcommittee on Innovation,
Entrepreneurship, and Workforce Development held a hybrid hear-
ing titled, ‘‘Skill, Upskill, and Reskill: Analyzing New Investments
in Workforce Development.’’ Subcommittee members heard from an
expert, a union leader, a community college president, and a small
business owner about ongoing issues with the labor market, new
investments in workforce development through the Bipartisan In-
frastructure Law, and how small businesses can engage more effec-
tively with workforce development opportunities.
Witnesses on the panel included: Mr. Gerald Lee Arnold, Busi-
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ness Manager and Financial Secretary Treasurer, Denver Pipe-
fitters Local #208, Denver, CO; Dr. Mordecai Brownlee, Ed.D.,
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President, Community College of Aurora, Aurora, CO; Mr. Joseph
W. Kane, Fellow, Brookings Institution, Washington, DC; and Ms.
Diana Benck, General Operations Manager and Owner, West Side
Tractor Sales Co., Lisle, IL.
Mr. Arnold testified about the value of registered apprenticeships
in training a qualified workforce and strategies to get small busi-
nesses more involved in the apprenticeship process. Dr. Brownlee
explained the importance of community colleges in skilling and
upskilling lower income communities and providing them with a
pathway to economic mobility. Mr. Kaine provided the committee
with a broader perspective on the country’s workforce challenges
and how the government can utilize the Bipartisan Infrastructure
Law to train a new generation of the infrastructure workforce. Ms.
Benck outlined her experience as a small business owner and
issues she faced, particularly with the lack of skilled workers, like
service technicians.
SBA MANAGEMENT REVIEW: OFFICE OF ADVOCACY
On Wednesday, April 6, 2022, the Subcommittee on Underserved,
Agricultural, and Rural Business Development, held a hearing ti-
tled, ‘‘SBA Management Review: Office of Advocacy.’’ During the
hearing, Committee Members heard from the Office of Advocacy re-
garding their operations, responsibilities, and how Congress can
better support their mission.
The sole witness included: Mr. Major Clark III, Deputy Chief
Counsel for Advocacy, performing the non-exclusive functions and
duties of the Chief Counsel for Advocacy.
Mr. Clark testified about the history of the Office of Advocacy
and its role as an independent office within the Small Business Ad-
ministration. In addition, Mr. Clark testified on the importance of
the Office’s economic and legal research teams to ensure regula-
tions do not unduly burden small businesses, as well as the impor-
tance of the Office’s Regional Advocates that directly interact with
small businesses across the country. Mr. Clark also testified about
the Office’s role in overseeing federal agencies’ compliance with the
Regulatory Flexibility Act (RFA) and ensuring that small business
interests are represented in the regulatory process.
MOVING UPWARDS AND ONWARDS: THE WORKFORCE AND INNOVATION
NEEDS OF THE AVIATION AND AEROSPACE INDUSTRY
On Thursday, May 12, 2022, the Subcommittee on Innovation,
Entrepreneurship, and Workforce Development held a hybrid hear-
ing titled, ‘‘Moving Upwards and Onwards: The Workforce and In-
novation Needs of the Aviation and Aerospace Industry.’’ Sub-
committee members heard from industry representatives and small
business owners about the needs and concerns of the Aerospace
and Defense Industry, particularly focused on supply chain issues
and supporting workforce development initiatives.
Witnesses on the panel included: The Honorable Eric Fanning,
President, Aerospace Industries Association, Arlington, VA; Ms.
ML Mackey, CEO, Beacon Interactive Systems, Division Chair,
Small Business Division, National Defense Industries Association,
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Arlington, VA; Mr. Blake Scholl, CEO, BOOM Supersonic, Denver,
CO; Ms. Judy Burns, CEO, Patriot Machine, St. Charles, MO.
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The Honorable Eric Fanning testified about the broader industry
as a whole what role it plays in the U.S. economy and national
security, the challenges they face as a result of the COVID–19 pan-
demic, and policy options Congress should examine to maintain
U.S. technological superiority. Ms. Mackey testified about the im-
portance of federal research and development programs for the in-
novation workforce, and what investments could be made to
strengthen the aviation workforce, like pilots and engineers. Mr.
Scholl testified as the CEO of an innovative company, looking to
bring back supersonic flight to the mainstream and how important
the Small Business Innovation Research program was to give his
company more legitimacy both to investors and to the government.
Ms. Burns testified about how hard it is to recruit and retain
skilled workers, especially amid supply chain disruptions and high-
er costs for raw materials.
FINTECH AND TRANSPARENCY IN SMALL BUSINESS LENDING
On Wednesday, July 13, 2022, the Oversight, Investigations, and
Regulations held a hearing titled ‘‘Fintech and Transparency in
Small Business Lending.’’ This hearing allowed Members to exam-
ine the effect of innovations in financial technology (‘‘Fintech’’) and
online lending on small businesses. During the hearing, Members
heard perspectives on issues related to online small business lend-
ing from lenders, industry advocates, and academics, with a focus
on assuring a fair but efficient small business credit market among
non-bank, online lenders.
Witnesses on the panel included: Mr. Sean Salas, Chief Execu-
tive Officer, Camino Financial, Los Angeles, CA; Ms. Joyce Klein,
Senior Director, Business Ownership Initiative, Aspen Institute,
Washington, DC; Ms. Diane Paterson, Regional Director, Twin Cit-
ies Small Business Development Center, Minneapolis, MN; and Dr.
John Griffin, James A. Elkins Centennial Chair in Finance,
McCombs School of Business, The University of Texas, Austin, TX.
Mr. Salas’ testimony highlighted how, as a Fintech lender that
is also certified by the Treasury Department as a Community De-
velopment Financial Institution (CDFI), he can provide affordable
capital to underserved businesses while disclosing all terms and
costs in a fair, responsible, and transparent manner. Mr. Salas also
testified about how technological advances in the financial services
sector can be used to help reach borrowers who are harder to reach
by traditional lending institutions, and how technology can be used
to help lower costs for borrowers.
Ms. Klein testified that improving transparency and disclosure in
small business financing is increasingly important because higher-
cost, short-term financing is becoming a common and often domi-
nant product that small businesses encounter in the market. She
also testified about the need to apply Truth in Lending-like disclo-
sures to small business loans, and that the Consumer Financial
Protection Bureau (CFPB) is the appropriate federal regulator for
the small business lending market given the CFPB’s current juris-
diction over the Truth in Lending Act and Section 1071 of the
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Dodd-Frank Act. She also testified in support of a strong nation-
wide disclosure standard, including disclosure of the annual per-
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centage rate (APR), for small business loans to prevent jurisdiction-
shopping by online lenders.
Ms. Paterson testified her Small Business Development Center
(SBDC) regularly interacts with small business owners who strug-
gle to navigate confusing fine print, adverse interest rates, loan
terms, and pre-payment penalties that have the power to put them
out of business. Her testimony provided an example of a small
business that took out a $100,000 online loan with a 12-month
term, almost 60 percent interest rate, and a $20,000 pre-payment
penalty to supplement an existing bank loan. The business and
SBDC struggled to get the original bank to refinance the online
loan largely due to the high pre-payment penalty, but eventually
did refinance the loan to ensure the viability of the business and
the repayment of the bank’s original loan, since business closure
would mean default on the bank’s original loan. Ms. Paterson testi-
fied this is a rare outcome, and that most businesses in that posi-
tion usually have no choice but to default.
Dr. Griffin’s testimony summarized the main findings from his
and his co-author’s paper titled ‘‘Did Fintech Lenders Facilitate
PPP Fraud?’’ which overall are that there is a greater likelihood for
potentially fraudulent PPP loans among Fintech-originated loans.
In response to questions from Members, Dr. Griffin also stated he
believes the CFPB should play a role in overseeing the small busi-
ness lending market. He also stated he would like to see more pub-
lic transparency of data already being collected by small business
lenders, and that it should be made available to the CFPB or an-
other appropriate federal agency for public consumption. He also
agreed APRs should be disclosed for small business loans, and stat-
ed that even as a finance professor, he finds his colleagues some-
times confused by some of the terms in various loan documents.
A REVIEW AND ASSESSMENT OF THE SBA HUBZONE PROGRAM
On Thursday, July 14, 2022, the Subcommittee on Contracting
and Infrastructure met for a hybrid hearing titled, ‘‘A Review and
Assessment of the SBA HUBZone program.’’ The hearing took place
at 10:00 a.m. in Room 2360 of the Rayburn House Office Building
and through Zoom. The hearing focused on the Historically Under-
utilized Business Zone (HUBZone) program that is administered
and overseen by the Small Business Administration. The hearing
examined how the program is working, its challenges and benefits,
and what additional reforms are needed.
Witnesses on the panel included: Mr. Matthew Schoonover, Man-
aging Member, Schoonover & Moriarty LLC, Olathe, KS; Ms. Shir-
ley Bailey, CEO, Summit Federal Services, LLC & HUBZone Coun-
cil Chair, Oakland, MD; Ms. Inés Rivas-Hutchings, Founder &
President, Intec Group LLC & Women in Construction Owners and
Executives (WCOE) Member, Paducah, KY; and Mr. Brent Lillard,
CEO & Co-Founder, GovSmart, Inc., Charlottesville, VA.
In the hearing, Mr. Schoonover and Ms. Bailey expressed con-
cerns with the Federal Government’s continuous failure to meet the
3% HUBZone goal because it precluded the Government from
achieving the purpose of the program, which is economic develop-
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ment and lifting communities out of poverty. On a related matter,
both Mr. Schoonover and Ms. Rivas-Hutchings noted concerns with
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not enough awards being issued under the HUBZone program. In
their view, having more contracts being issued as HUBZone set
asides would incentivize more firms to participate in it.
Overall, all witnesses provided suggestions to improve the pro-
gram. Among the changes suggested, Mr. Schoonover recommended
recognizing HUBZone firms as eligible firms under the Department
of Transportation Disadvantaged Business Enterprise rogram while
Ms. Bailey recommended extending the HUBZone price evaluation
preference to orders, embracing telework, increasing HUBZone
sole-source thresholds and providing contracting officers additional
and recurring training on the program. Additionally, Mr. Lillard
recommended providing the program parity with other small busi-
ness programs in areas like increasing its contracting goal and Ms.
Rivas Hutchings recommended reforming the SBA’s Small Busi-
ness Procurement Scorecard to enhance transparency and accuracy.
THE SBA OFFICE OF INTERNATIONAL TRADE AND THE STEP PROGRAM
AS KEY TOOLS FOR RECOVERY AND EXPANSION
On Tuesday, July 19, 2022, the Subcommittee on Economic
Growth, Tax, and Capital Access held a hearing hybrid titled, ‘‘The
SBA Office of International Trade and the STEP Program as Key
Tools for Recovery and Expansion.’’ The hearing reviewed the
Small Business Administration’s (SBA) State Trade Expansion Pro-
gram (STEP). The Small Business Jobs Act of 2010 authorized the
creation of a three-year State Trade and Export Promotion pilot
grant initiative to increase the number and value of small business
exports. In 2015, through the Trade Facilitation and Trade En-
forcement Act of 2015, the SBA was directed to formally establish
STEP and provide grants to states to increase the number of small
business exporting or proposals that would assist rural, women-
owned, and socially or economically disadvantaged small busi-
nesses.
Witnesses on the panel included: Mrs. Mary Waters, Deputy
Commissioner for International Trade, Georgia Department of Eco-
nomic Development; Mr. William Spear, Manager, New Jersey Of-
fice of Export Promotion and Director, NJ STEP; Mr. Luther Tooks,
CEO, Pyramid Foods, LLC; and Mr. Devan Walding, Vice President
Sales, RADIUS.
Mrs. Waters testified that Georgia was an early participant in
STEP in 2011 and 2012 but stepped away after the application was
denied. Georgia reapplied in 2020 during the pandemic to expand
Georgia’s financial assistance awards to small businesses. Mrs.
Waters stated that STEP is a valuable resource for Georgia small
businesses and that program reauthorization is critical to sup-
porting greater U.S. exports. In addition, Mrs. Waters testified that
measuring return on investment by long-term outcomes, reducing
administrative requirements, and increasing funding to $30 million
are steps that can be taken to improve the program.
Mr. Spear testified about New Jersey’s successful involvement in
STEP, how New Jersey implements uncomplicated reporting re-
quirements for participating small businesses, and how STEP is an
administratively easier program than other federal grants. Mr.
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Spear stated that throughout the pandemic, New Jersey saw an in-
crease in interest in the program, especially from newer companies,
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and that New Jersey plans to focus on new to export firms in the
upcoming grant cycle. Finally, Mr. Spear stated that New Jersey
has applied for the maximum grant amount for the 2022 cycle and
looks forward to a continued partnership with the SBA. Mr. Tooks
testified that STEP helped him export his barbeque rubs and
sauces to Canada and Mexico. STEP was particularly helpful with
translating their marketing brochure and labels translated into
Spanish and properly reformatted to meet the requirement for sale
in Mexico. Mr. Walding testified that STEP has enabled RADIUS
to participate and compete in exporting channels that the company
would otherwise struggle, or be unable, to afford. The availability
of STEP grants allowed RADIUS to start a dialogue around what
opportunities would provide the best return on investment for their
brand and made in America products.
SBA DISTRICT OFFICE COLLABORATION WITH RESOURCE PARTNERS
On Wednesday, July 20, 2022, the Subcommittee on Under-
served, Agricultural, and Rural Business Development held a hear-
ing hybrid titled, ‘‘SBA District Office Collaboration with Resource
Partners.’’ A strong relationship is necessary between the Small
Business Administration (SBA) and its Resource Partners to ensure
important information is flowing from the agency to small business
across the country. SBA’s District Offices are a critical component
in this flow or information as they are the Agency’s representatives
in the field and tasked with forming productive relationships with
the Resource Partners in their area.
Witnesses on the panel included: Mr. Mark Delisle, State Direc-
tor, Maine SBDC; Ms. Nancy Strojny, Assistant District Director,
SCORE Maine; Mr. J.D. Collins, State Director, Michigan SBDC;
and Mr. John William ‘‘Bill’’ Leaverton, Regional Director, Amer-
ica’s SBDC at Tarleton State University.
Mr. Delisle testified about the successful relationship Maine
SBDC has with the Maine District Office and how that has directly
contributed to the success of the Maine SBDC program. Mr. Delisle
testified that the Maine SBDC has meetings, events, and pro-
motional activities with the District Office. In addition, Mr. Delisle
and Ms. Strojny testified about the oversight performed by the Dis-
trict Office over Maine SBDC and SCORE Maine respectively. Ms.
Strojny testified that the quarterly meetings held with the Maine
District Director is an opportunity for the Resource Partners to dis-
cuss current issues, opportunities, and provide updates. Mr. Collins
testified that the Michigan SBDC and Michigan District Office did
not always have the strongest relationship, but by establishing
monthly meetings, sharing best practices, and increasing collabora-
tion, he was able to develop a robust relationship between Michi-
gan Resource Partners and their District Office. Mr. Leaverton tes-
tified that the SBDC at Tarleton enjoys a collaborative relationship
with the SBA but that more can be done to assist rural entre-
preneurs and small business owners. One idea Mr. Tarleton pre-
sented is establishing ways to provide direct access to capital for
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small and micro businesses in rural areas that do not have fixed
assets to obtain traditional financing.
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RIGHT TO REPAIR AND WHAT IT MEANS FOR ENTREPRENEURS
On Wednesday, September 14, 2022, the Subcommittee on Un-
derserved, Agricultural, and Rural Business Development held a
hybrid hearing titled, ‘‘Right to Repair and What it Means for En-
trepreneurs.’’ The hearing provided Members the opportunity to
hear from small business owners and experts about the impacts of
repair restrictions on small businesses, misconceptions on the right
to repair movement, and what policy proposals exist to resolve this
issue.
Witnesses on the panel included: Ms. Gay Gordon-Byrne, Execu-
tive Director, Digital Right to Repair Coalition, North River, NY;
Mr. Brian Clark, Co-Owner, The iGuys’ Tech Shop, LLC, Conway,
NH; Mr. Jim Gerritsen, Marketing Manager, Wood Prairie Family
Farm, Bridgewater, ME; Mr. Ken Taylor, President, Ohio Machin-
ery Co., Broadview Heights, OH.
Ms. Gordon-Byrne testified about the need to pass Right to Re-
pair laws similar the original Massachusetts law because of the
benefits it can deliver for farmers, rural communities, and inde-
pendent businesses as well as reduce the amount of e-waste society
produces. Mr. Clark testified to his experience as an independent
repair shop owner, and the hurdles he faces accessing genuine
parts, tools, manuals, and schematics from manufacturers. He de-
tailed the attempts by manufacturers to control various aspects of
his business and emphasized the need to protect rural, independent
repair shops so that residents can maintain access. Mr. Gerritsen
testified about his reluctance to buy new farm equipment to avoid
repair restrictions imposed by manufacturers. He emphasized the
importance of time during his planting and harvesting season and
how devastating potential breakdowns could be if he wasn’t able to
repair his own equipment immediately. Mr. Taylor testified about
the complexity of the issue and the need to ensure that proper
right to repair laws don’t also threaten the intellectual property of
manufacturers, the profitability of distributors, and the safety of
consumers.
BACK TO SCHOOL, BACK TO STARTUPS: SUPPORTING YOUTH APPREN-
TICESHIP, ENTREPRENEURSHIP, AND WORKFORCE DEVELOPMENT
On Thursday, September 15, 2022, the Subcommittee on Innova-
tion, Entrepreneurship, and Workforce Development held a hybrid
hearing titled, ‘‘Back to School, Back to Startups: Supporting Youth
Apprenticeship, Entrepreneurship, and Workforce Development.’’
The hearing provided Members the opportunity to hear from ex-
perts, program leaders and educational institutions about youth ap-
prenticeship as a means of supporting and investing in workforce
development.
Witnesses on the panel included: Mr. Noel Ginsburg, Founder
and Chief Executive Officer, CareerWise, Denver, CO; Ms. Deborah
Kobes, Senior Director, Jobs for the Future (JFF), Washington, DC;
Ms. Shani Watkins, Director, West Sound Technical Skills Center,
Bremerton School District, Bremerton, WA; and Mr. Jared Ebbing,
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Economic Development Director for Mercer County, OH; Mercer
County, OH.
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Mr. Ginsburg testified that apprenticeships for high school stu-
dents are not only beneficial to the educational development of the
students, but also to the growth of small businesses. Ms. Kobes em-
phasized the need for equitable access to youth apprenticeships for
lower income and minority individuals through supportive services,
such as transportation or internet access. She also called on con-
gressional support for employers through means of legislation and
public funds. Ms. Watkins brought attention to CTE programs,
such as hands-on active learning, and the implementation of work
study experience in high school to equip a better prepared work-
force. She stated that models surrounding apprenticeship in other
countries, like Denmark, could be replicated to fit the country’s
workforce needs. Mr. Ebbing emphasized the need to raise aware-
ness of the careers that exist in local communities through
websites and create connections between entrepreneurs for an
emerging workforce.
BUILDING SUSTAINABLE BUSINESSES THROUGH EMPLOYEE OWNERSHIP
AT SBA
On Tuesday, December 6, 2022, the Subcommittee on Oversight,
Investigations, and Regulations held a hybrid hearing titled ‘‘Build-
ing Sustainable Businesses through Employee Ownership at SBA.’’
The hearing gave Members an opportunity to hear about the chal-
lenges faced by employee-owned businesses in accessing affordable
capital from the SBA, and SBA and Congressional efforts to ad-
dress those issues.
Witnesses on the panel included: Ms. Mo Manklang, Policy Direc-
tor, U.S. Federation of Worker Cooperatives, Philadelphia, PA; Mr.
Corey Rosen, Founder, National Center for Employee Ownership,
Covina, CA; Mr. Keith D. Butcher, Partner, Mosaic Capital, Saint
Louis, MO; and Mr. Scott Lockard, President, Hampton Enter-
prises, Lincoln, Nebraska.
Ms. Manklang testified about the benefits of the worker coopera-
tive model, including better wages, benefits, and stability. She also
testified about the lack of support by SBA after the passage of the
Main Street Employee Ownership Act of 2018. She further testified
that she only found one case of a worker co-op being able to access
a 7(a) loan in the last five years. In her view, the main issues with
SBA are its lack of outreach and education to business owners
about the employee ownership model; and the personal guarantee
requirement is at odds with the co-op ownership structure. Mr.
Rosen testified about how SBA has failed to implement the Main
Street Employee Ownership Act as intended by Congress and it
has resulted in providing few 7(a) loans to ESOPs and co-ops. He
further added that SBA has the authority to implement the
changes being proposed in the bills recently introduced by Chair-
woman Velázquez and Subcommittee Chairman Phillips. Finally,
he added SBA has failed to do any meaningful outreach to ESOPs
and co-ops as envisioned by the Main Street Employee Ownership
Act.
Mr. Butcher testified about the opportunity SBA has to provide
capital to encourage small businesses to transition to employee
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ownership. This would address the massive succession of Baby
Boomer businesses that is coming to fruition. He added that while
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the 7(a) program can be utilized to meet the needs for companies
in a value range less than $15 million, the SBIC program can be
a strong influence on the next size category of businesses. Mr.
Lockard testified about some of the challenges facing small busi-
nesses today to include high labor costs and shortages, supply
chain issues, and inflation.
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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 2021 and 2022, to date, numerous SBA
officials, industry representatives and small business owners were
questioned about the operation of SBA programs:
• A Committee hearing to assess the state of the small busi-
ness economy in the COVID–19 era was held on February 4,
2021.
• A series of hearings with the SBA Administrator Isabella
Casillas Guzman were held on May 26, 2021, November 16,
2021, April 27, 2022, and December 7, 2022.
• A series of management review hearings were held with
on:
» October 6, 2021, Associate Administrator Dark Ma-
drid testified before the Committee on the operations of
the SBA’s Entrepreneurial Development programs.
» March 8, 2022, Mr. John Williams, Director of Innova-
tion and Technology, Office of Investment and Innovation,
testified before the Committee on Small Business Innova-
tion Research and Small Business Technology Transfer
programs
» April 6, 2022, Mr. Major Clark, Deputy Chief Counsel
for Advocacy testified on the Office of Advocacy.
» May 18, 2022, Associate Administrator Patrick Kelley
testified on the Office of Capital Access
» June 23, 2022, Associate Administrator BiBi Hildalgo
testified on the Office of Government Contracting and
Business Development.
» September 20, 2022, Associate Administrator Gabriel
J. Esparza testified on the Office of International Trade.
• A series of hearings were held with the Office of Inspector
General and Government Accountability Office.
» On January 12, 2022, the OIG testified on two re-
ports: SBA’s Top Management and Performance Chal-
lenges in FY 2022 and SBA OIG’s Semiannual Report to
Congress.
» On April 20, 2021, the Honorable Hannibal ‘‘Mike’’
Ware, Inspector General, and Mr. William Shear, Director
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of Financial Markets and Community Investment, Govern-
ment Accountability Office testified on SBA’s Pandemic
Response programs.
• Subcommittee on Underserved, Agricultural, and Rural
Business Development hearing on the role of the Community
Navigator Pilot Program in reaching underserved businesses
was held on March 18, 2021.
• Subcommittee on Economic Growth, Tax, and Capital Ac-
cess hearing to examine the role of SBA’s loan and investment
programs in supporting small manufacturers was held on April
29, 2021.
• Subcommittee on Innovation, Entrepreneurship, and
Workforce hearing on SBA’s entrepreneurial development eco-
system.
• Subcommittee on Oversight, Investigations, and Regula-
tions hearing to review SBA’s grant programs, including the
Shuttered Venue Operators Grant and the Restaurant Revital-
ization Fund was held on May 27, 2021.
• Subcommittee on Underserved, Agricultural, and Rural
Development hearing examining SBA’s role in supporting
small businesses in rural communities was held on July 13,
2021.
• Subcommittee on Oversight, Investigations, and Regula-
tions hearing examining SBA’s Role in Climate Solutions was
held on July 21, 2021.
• Committee hearing examining efforts to improve access to
the 7(a) loan guarantee program for employee-owned firms was
held on September 30.
• Subcommittee on Economic Growth, Tax, and Capital Ac-
cess hearing examining the SBIC program was held on October
27, 2021.
• Subcommittee on Contracting and Infrastructure hearing
ways to modernize and improve the SBA’s 8(a) program was
held on March 2, 2022.
• Committee held hearings on the Small Business Innova-
tion Research and Small Business Technology Transfer pro-
grams on March 8, 2022, June 23, 2021, and May 13, 2021.
• Multiple hearings were held on the Paycheck Protection
Program: on March 16, 2022, a hearing was held on an empir-
ical review of the Paycheck Protection Program; on September
1, 2021, a hearing was held on legislative and administrative
efforts to streamline the forgiveness process for borrowers and
lenders; on March 23, 2021, a hearing was held to examine the
extent the FAR Credits Clause interacts with the Paycheck
Protection Program and its implications for federal contractors;
and on March 10, 2021, a hearing was held examining the
state of the first and second draw loans, as well as loan for-
giveness.
• Subcommittee on Economic Growth, Tax, and Capital Ac-
cess hearing on how SBA loan programs can better meet the
needs of the underserved markets was held on March 29, 2022.
• Committee hearing to review how the SBA supports Vet-
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eran entrepreneurs transition to civilian life.
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• Subcommittee on Contracting and Infrastructure hearing
to review and assess SBA’s HUBZone program was held on
July 14, 2022.
• Committee hearing on small businesses perspective on
STEP and its effectiveness in providing exporting opportunities
was held on July 19, 2022.
• Committee hearing to review the relationship between
SBA district offices and SBA Resource Partners was held on
July 20, 2022.
• Committee hearing on how to improve and modernize the
SBA’s Bond Guarantee program was held on July 27, 2022.
HEARINGS ON SBA FINANCIAL ASSISTANCE PROGRAMS
In the 117th Congress, the Committee continued its focus on
SBA’s capital access programs. During 2021 and 2022, to date, nu-
merous SBA officials, industry representatives and small business
owners were questioned regarding frequent concerns about the
struggle for small businesses to access capital to fund their oper-
ations. Below is a list of hearings that were held on SBA’s capital
access programs that were not included above.
• Committee hearing to examine the role of CDFIs and
MDIs in small business lending was held on May 18, 2021.
• Committee hearing regarding the effect of innovations in
financial technology and online lending on small businesses
was held on July 13, 2022.
HEARINGS ON FEDERAL PROCUREMENT
During the 117th Congress, the Committee continued to examine
federal procurement rules as they affect small businesses. Below is
a list of hearings that were held on federal procurement programs
that were not included above.
• Committee hearing on contracting opportunities for small
businesses in the Infrastructure Plan was held on June 10,
2021.
• Subcommittee on Contracting and Infrastructure hearing
examining the decline in the small business supplier base in
government contracting was held on October 13, 2021.
• Committee hearing examining governmentwide contracts
and assessing their impact on the federal small business base
was held on June 14, 2021.
HEARINGS ON SBA ENTREPRENEURIAL DEVELOPMENT PROGRAMS
During the 117th Congress, the Committee continued to examine
SBA’s Entrepreneurial Development programs. During 2021 and
2022, to date, numerous SBA officials, industry representatives and
small business owners were questioned regarding delivery of the
entrepreneurial development programs. Below is a list of hearings
that were held on federal procurement programs that were not in-
cluded above.
• Subcommittee on Economic Growth, Tax, and Capital Ac-
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cess hearing examining federal investment in innovation as a
means to foster entrepreneurship was held on July 14, 2021.
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• Committee hearing on the boom in entrepreneurship in
2020, and the changing nature of the economy coming out of
the pandemic was held on November 3, 2021.
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PART D
IMPLEMENTATION OF THE OVERSIGHT PLAN
Subpart 1—Oversight of Federal Capital Access Programs
7(a) Program
The Committee held numerous hearings and conducted oversight
over the SBA’s 7(a) Loan Guaranty program (7(a) program), which
is the agency’s flagship loan program. Under the 7(a) program, pri-
vate sector lenders (mostly banks but also some non-depository
lenders) originate commercial and working capital loans up to $5
million to small businesses who cannot access credit elsewhere.
SBA guarantees 50 to 90 percent of each 7(a) loan made, depending
on loan characteristics, assuring the lender that if a borrower de-
faults on the loan, SBA will purchase the loan and the lender will
receive an agreed-upon portion of the outstanding balance. For the
majority of 7(a) loans, SBA relies on lenders with delegated author-
ity to process and service loans, and ensure borrowers meet the
program’s eligibility requirements.
On May 18, 2022, the Committee held an oversight hearing and
management review hearing with the Office of Capital Access. The
Office of Capital is responsible for managing the agency’s 7(a) pro-
gram. During the hearing, Members examined the operations of the
7(a) program. Members also asked questions about SBA’s success
in facilitating loans being made to small businesses in underserved
areas. Associate Administrator Kelley discussed the need to in-
crease small-dollar lending in the 7(a) loan program and target
small business in underserved markets. He also answered ques-
tions about improving the 7(a) program to make it more accessible
to employee-owned businesses and those seeking to transition to
employee ownership.
As part of its legislative efforts, the Committee approved two
bills to increase the Office of Credit Risk Management’s (OCRM)
oversight of 7(a) loan agents and brokers. Increased risk to SBA’s
business loan programs introduced by loan agents and brokers has
been consistently cited by Office of Inspector General as a top man-
agement and performance challenge facing the agency, most re-
cently in FY 2021. H.R. 4481 would require OCRM to establish a
registration system for 7(a) agents to collect data to help OCRM
track and evaluate loan performance for loans generated through
loan agent activity. It also enhances OCRM’s and the SBA Lender
Oversight Committee’s enforcement authority with respect to 7(a)
agents. H.R. 4531 would require OCRM to submit an annual report
to Congress regarding the performance of and risk associated with
7(a) loans generated through loan agent activity. Both bills passed
the House on November 2, 2021, and were received in the Senate
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and referred to the Committee on Small Business and Entrepre-
neurship on November 3, 2021.
Also, the Committee continues to monitor the subsidy rate for
the 7(a) program, as part of one of the Committee’s long term over-
sight priorities. The Committee would like to continue to see SBA
achieve a zero-subsidy rate for the 7(a) program, so it will not have
to raise fees on borrowers or lenders or request an appropriation
from Congress.
504/Certified Development Company Program
Building on its efforts from the 116th Congress, the Committee
held hearings, conducted oversight, and approved legislation to im-
prove the 504/Certified Development Company program (504 loan
program) in the 117th Congress. During the Committee’s oversight
hearing with the Office of Capital Access, Members inquired about
how increasing the maximum loan size for manufacturers could ad-
dress the supply chain issues the country is experiencing. During
multiple other hearings, the Committee heard from witnesses on
how the 504 loan program could help alleviate supply chain and
manufacturing shortfalls.
As part of its legislative oversight efforts the Committee helped
shepherd two bills through the House (H.R. 1482 and H.R. 1490)
that would improve the 504 loan program. The two bills were ap-
proved by the House, under Suspension of the Rules, on April 15,
2021. H.R. 1482 revises the duties of the Office of Credit Risk Man-
agement to include oversight of a Certified Development Company
that participates in the 504 loan program. H.R. 1490 updates the
504 loan program and enhances small manufacturers’ ability to ac-
cess affordable capital. The bills were received in the Senate and
referred to the Committee on Small Business and Entrepreneur-
ship on April 19, 2021.
As part of its ongoing oversight efforts, the Committee continues
to monitor the agency’s FY23 budget request for the 504 loan pro-
gram. At the end of FY 2021, the 504 loan program experienced a
brief but highly disruptive lending pause due to program due to de-
mand exceeding authorization program. level of $7.5 billion. Com-
mittee staff held several meetings with SBA, House Appropriations
staff, and stakeholders to increase the 504-authorization cap for
Fiscal Year 2022. H.R. 2471, the FY22 Consolidated Appropriations
bill, provides $11 billion for the 504 program.
Community Advantage Program
The Committee held many hearings examining SBA’s lending
programs, which includes the Community Advantage (CA) Pilot
program in the 117th Congress. At these hearings, the Committee
heard testimony in support of making the CA Pilot Program per-
manent. During the Committee oversight hearing of the Office of
Capital Access on May 18, 2022, Associate Administrator Kelley
mentioned the need to extend of the CA Pilot Program in order to
assist small businesses in underserved markets.
As part of its oversight duties, the Committee has focused on leg-
islative efforts to expand SBA-backed lending in underserved mar-
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kets to ensure SBA loans are distributed equitably. Also, the legis-
lative efforts are to ensure that SBA lending programs meet the
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credit, management, and technical assistance needs of small busi-
nesses in underserved markets. In the Build Back Better Act (re-
named to the Inflation Reduction Act), the Committee approved a
recommendation to appropriate funds for a CA loan program. It
would have provided $600 million over 10 years to enhance, im-
prove, and expand the CA program. On November 16, 2022, H.R.
9311, the ‘‘Community Advantage Loan Program Permanency Act
of 2022’’ was introduced in the House. H.R. 9311 would perma-
nently authorize the CA program under the Small Business Act
and require SBA to provide free or low-cost in-person and online
training upfront and on an ongoing basis to CA lenders.
Microloan Program
During the 117th Congress, the Committee held hearings and ap-
proved legislation in its efforts to provide oversight over SBA’s
Microloan program. On March 29, 2022, the Subcommittee on Eco-
nomic Growth, Tax, and Capital Access held a hearing on SBA’s
business loan programs and how utilize them to support business
in underserved markets. Testimony was provided that indicated
that SBA’s Microloan program was strong and the default rates for
the program was less than two percent. On May 18, 2022, the Com-
mittee held an oversight hearing with the Office of Capital Access,
which administers the program. The hearing provided Members of
the Committee the opportunity to ask questions regarding the suc-
cess of the program in providing small dollar loans to startups and
small businesses.
On April 15, 2021, the House approved two bills (H.R. 1487 and
H.R. 1502) that would improve the SBA’s Microloan program. H.R.
1487, requires the SBA to report certain metrics related to the dis-
bursement of microloans to small businesses. H.R. 1502, optimizes
the operations of the Microloan program and lowers costs for small
business concerns and intermediary participants in the program.
The bills were received in the Senate and referred to the Com-
mittee on Small Business and Entrepreneurship on April 19, 2021.
Small Business Investment Company Program
In the 117th Congress, oversight of the Small Business Invest-
ment Company (SBIC) program was a top priority. The Sub-
committee on Economic Growth, Tax, and Capital Access held a
hearing to review the program on October 27, 2021. The hearing
also examined proposals to target investments to underrepresented
businesses and to improve investor diversity in the program. More-
over, the Subcommittee heard testimony in support of the estab-
lishment of a micro-SBIC license to increase investments in rural
and underserved communities. Further, the Subcommittee heard
about the need to update SBA’s IT systems and to add more staff
in the Office of Investment and Innovation.
In order to increase investments by SBIC’s in underrepresented
businesses, the Committee included multiple provisions in the
Committee’s recommendations for the Build Back Better Act (re-
named to the Inflation Reduction Act). First, the Committee rec-
ommended $9.5 billion be appropriated to establish a subprogram
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within the SBIC program—titled the Venture Small Business In-
vestment Companies program—to provide patient capital to under-
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served markets and critical industries. The Committee also rec-
ommended providing $20 million to implement the Emerging Man-
agers program, which is a mentorship program to pair less-experi-
enced fund managers interested in getting their first SBIC license
with highly-experienced SBIC managers to provide guidance and
advice. Additionally, $40 million was to be provided to implement
the MicroCap SBIC license subprogram to increase SBIC diversity.
Finally, the Committee recommended appropriating $2.5 million to
expand awareness and utilization of the SBIC program, and $2 mil-
lion to establish a working group to provide recommendations on
how to increase demographic and geographic diversity in the pro-
gram.
Furthermore, the Committee worked on improving access to in-
vestment capital for small businesses by approving H.R. 4256 on
July 29, 2021. The bill would increase the amount of capital and
surplus a financial institution or savings association may invest in
a SBIC from 5 to 15 percent. The bill was approved by the House
on November 2, 2021, and was received in the Senate and referred
to the Committee on Banking, Housing, and Urban Affairs on No-
vember 3, 2021.
As part of its continued oversight of this program, the Committee
intends to review the recently released proposed rule by the SBA
to create a new class of SBICs, called Accrual SBICs. The purpose
of the Accrual SBICs to unlock more patient capital financing for
small businesses and implement changes to lower financial barriers
to program participation for new fund managers. According to the
SBA, reducing financial and administrative barriers to participate
in the SBIC program and modernizing the program’s license offer-
ings to align with a more diversified set of private funds investing
in underserved small businesses is an Administration priority.
Subpart 2—Oversight of Pandemic Related Programs
Paycheck Protection Program
In response to the COVID–19 pandemic, Congress created the
Paycheck Protection Program (PPP), which was implemented with
the assistance of the Department of Treasury. The program was de-
signed to help small employers access critical financial assistance
quickly. The Committee held numerous oversight hearings on the
PPP to assess the effectiveness of the program and review the pro-
gram’s reach and performance, particularly to women, minorities,
and underserved communities.
During the 116th and 117th Congress’, the Committee not only
held numerous hearings, but also held briefings and meetings with
SBA management, the OIG, and small businesses regarding PPP.
In addition, the Committee has worked with the House Select Sub-
committee on the Coronavirus Crisis as part of its oversight efforts
of PPP. These oversight efforts led the Committee to offer legisla-
tive changes before the Second Draw PPP Loan that the GAO
found increased lending to the smallest businesses and those in un-
derserved markets.
Moreover, the Committee’s hearings with Administrator Guzman
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on March 26, 2021, and November 16, 2021, provided insight on
steps the agency was taking to address fraud within the PPP. Simi-
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lar hearings to address SBA’s plans to address fraud were held
with the OIG and GAO during the 117th Congress. At those hear-
ings, both entities outlined program deficiencies and steps SBA
personnel could take to address fraudulent loans. As part of its con-
tinued oversight, the Committee will continue to monitor the SBA’s
implementation of recommendations offered by the OIG and GAO.
After multiple meetings with the OIG and the Pandemic Review
Accountability Committee the Committee was notified to the fact
that one of the biggest challenges in prosecuting PPP fraud is the
discrepancy in the statute of limitations governing bank-originated
and Fintech-originated PPP fraud. Most bank-originated PPP fraud
is being prosecuted as bank fraud, which has a 10-year statute of
limitations. Meanwhile, Fintech-originated PPP fraud must be
prosecuted as wire fraud since Fintech companies are technically
not financial institutions. To address this discrepancy, the Com-
mittee approved H.R. 7352, introduced by Chairwoman Velázquez,
which established a statute of limitations of ten years for all PPP
loan fraud cases. H.R. 7352 was signed into law by President Biden
on August 5, 2022.
Currently, the Committee is monitoring SBA’s process of for-
giving PPP loans. The Committee held hearings in 2021 and 2022,
which brought to light the fact that overpayments due to good faith
calculation errors by the small businesses, or even its lender, will
not be forgiven by the SBA. Currently, over 300,000 PPP borrowers
are facing financial hardship due to good faith loan amount mis-
calculations, some due to no fault of their own. On September 15,
2022, Congresswoman Houlahan, Congresswoman Chu, and Chair-
woman Velázquez led a letter addressed to Administrator Guzman
that requests SBA work with Congress to immediately address this
issue. The Committee will continue to examine legislative way to
fix this good faith error issue.
COVID–19 Economic Injury Disaster Loan Program
On March 6, 2020, Congress passed legislation, which deemed
the COVID–19 outbreak a declarable disaster under the Small
Business Act, allowing Economic Injury Disaster Loans (COVID–19
EIDL) to be available to small businesses. During the 117th Con-
gress, the Committee has conducted robust oversight over the
COVID–19 EIDL program. The Committee has held hearings,
briefings, and sent inquiries to SBA in order to shed light on the
policy issues associated with the program, and approved legislation
to address those issues.
During the hearings regarding the COVID–19 EIDL program,
the Committee learned of the success of the program in helping to
provide needed capital to help the smallest of small business staff
afloat during the pandemic. However, the design of the program
and the safeguards put in place when the program was first rolled
out contributed to the significant amount of fraud seen today. At
the Committee’s January 12, 2022, hearing with SBA Inspector
General Ware, it was estimated that there could be up to $80 bil-
lion in potentially fraudulent loans. Hearings with Administrator
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Guzman and Associate Administrator Kelley, in 2022, allowed
Members to inquire about the improvements the Biden Administra-
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tion and SBA has made to safeguard against fraud within the pro-
gram.
The Committee also worked with the House Select Subcommittee
on the Coronavirus Crisis to lead inquiries into SBA’s management
of the COVID–19 EIDL program under the Trump Administration.
As well as, led inquiries into the contractors and subcontractors
that were selected to help run the program. On February 11, 2021,
the Committee and Subcommittee sent letters to RER, Rocket
Loans, and Rapid Finance requesting information about the $750
million contract awarded to RER to manage the program. The let-
ter highlighted the Committees were investigating the fraud con-
trols for the project and the potential waste of taxpayer funds. On
July 14, 2021, the Committee and Subcommittee sent a letter to
SBA raising concerns regarding the Trump Administration’s man-
agement of the program.
The Committee also took legislative action to deter fraud within
the program. The CARES Act streamlined the COVID–19 EIDL ap-
plication process and removed the requirement that an applicant
submit a tax return or a tax return transcript. However, the OIG
recommended requiring a tax transcript, and not relying on self-
certification, to verify eligibility to help prevent fraudulent loans
from being disbursed. Congress addressed this issue and permitted
the SBA to require an applicant to submit a tax return before obli-
gating funds. In the 117th Congress, SBA implemented this
change, which helped prevent the disbursement of loans to bad ac-
tors. Also, as discussed above with the PPP statute of limitations
bill, the Committee approved legislation to create a 10-year statute
of limitations for all COVID EIDL fraud, including for EIDL Ad-
vances and Targeted EIDL Advances. This would give prosecutors
extra time to go after bad actors who have defrauded the COVID–
19 EIDL program. H.R. 7352 was signed into law by President
Biden on August 5, 2022.
The Committee also spent a significant amount of time focused
on the customer service operations of the COVID–19 EIDL pro-
gram. During hearings in the 117th Congress, Members raised
issues their constituents were experiencing to include long call wait
times into the customer service centers, lack of transparency or
lack of information from SBA personnel, and inaccurate or con-
flicting information provided by SBA personnel to applicants. The
Committee also looked into SBA and Internal Revenue Service
(IRS) issues in processing applicant tax return request, further dis-
cussed below. Committee staff held briefings with the SBA and IRS
to discuss these issues. In the beginning of 2022, the Committee
sent an inquiry to the agency looking for more information and an-
swers regarding the processing of COVID–19 EIDL applications.
The SBA is now in the process of servicing the COVID–19
EIDLs, almost 4 million loans were disbursed that totaled close to
$400 billion. An applicant has up to 30 years to pay back a loan.
The Committee will continue its oversight to ensure that EIDL
loan recipients are receiving the required services they need from
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the agency. Also, the Committee wants to ensure that the agency
has the resources needed to service such a large portfolio.
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Restaurant Revitalization Fund
The American Rescue Plan created a Restaurant Revitalization
Fund (RRF) and provided SBA with $28.6 billion for grants to
qualifying food and beverage establishments, $5 billion of which
was set aside for businesses with less than $500,000 in gross re-
ceipts in 2019. The program had an initial 21-day priority period
where SBA is to prioritize grants to women or veterans owned
small businesses, and other socially or economically disadvantaged
small business concerns. It took SBA four months to stand up this
new multibillion-dollar grant program. Given the amount of docu-
mentation and paperwork required for each application, the Com-
mittee conducted oversight to ensure the timely administration of
the program.
On May 26, 2021, the Committee held an oversight hearing ex-
amining the SBA’s COVID relief programs, which included RRF.
During the hearing Members were able to ask questions to Admin-
istrator Guzman about the rollout of the RRF program. They also
asked questions about outreach for the program and language serv-
ices being provided. During the oversight hearing, the Members
also were told about the popularity of the program and how the
funds for the program were exhausted in a short time frame.
Additionally, the U.S. Court of Appeals for the Sixth Circuit
ruled that the SBA’s prioritization of RRF funds was unconstitu-
tional under the Equal Protection Clause. In response to this and
other rulings, the SBA sent letters to priority RRF applicants who
had been notified that their applications had been approved that
they will not receive funding until non-priority applications are
processed. However, the funds were exhausted before this could
occur. On July 29, 2021, the Committee sent a letter to Adminis-
trator Guzman asking for more information regarding SBA’s notifi-
cation to these priority applicants. As part its oversight of SBA’s
COVID relief programs, the Committee has strived to ensure that
small business in underserved markets were getting the financial
relief that they need. During the pandemic women, minority, and
veteran owned small businesses borne an outsized burden of the
economic harms.
In response to funds being exhausted for this program, the Com-
mittee worked on legislation (H.R. 3807), to provide $42 billion to
replenish the RRF. The bill passed the House on April 7, 2022, and
was received in the Senate on the same day.
As part of its oversight duties, the Committee will continue to ex-
amine the needs of restaurants that did not receive any funds from
RRF, and other possible policy options to assist those small busi-
nesses. In fact, the Committee has held meetings about funds that
are still leftover in the program that can be disbursed to eligible
small businesses. Currently, SBA and the Department of Justice
are working on plans to distribute those funds.
Shuttered Venues Operating Grant Fund
The Economic Aid Act created the Shuttered Venue Operators
Grant (SVOG) program, and provided SBA with $15 billion for
grants to eligible live venue operators or promoters, theatrical pro-
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ducers, live performing arts organization operators, museum opera-
tors, motion picture theatre operators, or talent representatives
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who demonstrate revenue loss. The SVOG program had three dif-
ferent priority periods for applicants, depending on the amount of
lost revenue. Through this program the SBA was able to award an
initial grant up to 45% of gross earned revenue, capped at $10 mil-
lion. The American Rescue Plan provided an additional $1.25 bil-
lion for SVOG, and allowed entities to apply for both PPP and
SVOG which was previously forbidden by the Economic Aid Act.
As part of its oversight, the Committee held numerous hearings
to conduct oversight over the SVOG program. On May 26, 2021,
the Committee heard from Administrator Guzman regarding the
rollout of the program and the processing of applications. Members
were given the opportunity to ask questions about the initial issues
with the rollout of the program, such as the need to close the portal
on April 8, 2021. During the SBA’s budget hearing on April 7,
2022, Members heard from the Administrator regarding the agen-
cy’s FY 2023 budget request for SBA’s pandemic relief programs to
include the SVOG program. Furthermore, the Subcommittee on
Oversight, Investigations, and Regulations held a hearing on the
impact of SBA’s pandemic grant programs on May 27, 2021. Mem-
bers heard from the National Association of Theater Owners about
the importance of the SVOG program, but also about the problems
venues had in accessing funds from the program.
On January 24, 2022, the Committee sent a letter to Adminis-
trator Guzman asking SBA to work with the Committee to make
improvements to the program to address the economic impacts felt
by venues due to the Omicron Variant. At the Committees’ January
19, 2022, hearing on the creative economy, arts workers testified
that the economic recovery for venues had halted because of the
Omicron Variant, and additional assistance was needed. However,
SVOG program rules restricted recipients of initial SVOG grants
from using proceeds to cover expenses incurred after December 31,
2021, so, during this time, these venues were left without a tool to
address the ongoing crisis. In order to address this matter, H.R.
3807, the ‘‘Relief for Restaurants and other Hard Hit Small Busi-
ness Act of 2022,’’ included a provision that extend the period, until
March 11, 2023, in which SVOG recipients can use grant funds to
cover their expenses. The bill passed the House on April 7, 2022,
and was received in the Senate on the same day. On May 25, 2022,
the bill was placed on the Senate Legislative Calendar under Gen-
eral Orders.
Going forward, the Committee will continue its oversight and
will monitor SBA’s audits of SVOG awardees. SBA’s audit plan will
help combat the possibility of fraud and abuse within the SVOG
program.
Subpart 3—Oversight of 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
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(SBDCs), Women’s Business Centers (WBCs), Service Corps of Re-
tired Executives (SCORE), and Veterans Business Outreach Cen-
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105
ters (VBOCs). During the 117th Congress, the Committee focused
its oversight efforts on ensuring these programs were operating ef-
fectively in creating jobs at startups and traditional firms, meeting
the needs of underserved populations, and using taxpayers’ dollars
responsibly.
On May 19, 2021, the Subcommittee on Innovation, Entrepre-
neurship, and Workforce Development held a hearing with rep-
resentatives from the SBDC, WBC, and SCORE programs to learn
how these programs could be improved and strengthened through
reauthorization. In addition, on October 6, 2021, the Committee
held a hearing with SBA Associate Administrator Mark Madrid to
discuss the status of SBA’s counseling and training programs, in-
cluding the SBDCs, WBCs, and SCORE, and how reauthorizing
these programs could help improve their operation. Following these
hearings, the Committee worked with Representative Jared Golden
(D–ME) on H.R. 6445, the ‘‘Small Business Development Center
Improvement Act of 2022,’’ which would reauthorize the SBDC pro-
gram for four years, allow for the promotion and advertisement of
the program, and strengthen oversight through an annual report to
Congress. The Committee also worked with Representative Sharice
Davids (D–KS) on H.R. 6441, the ‘‘Women’s Business Center Im-
provement Act of 2022,’’ 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 Young Kim (R–CA) on H.R. 6450, the ‘‘SCORE for
Small Business Act of 2022,’’ which reauthorizes the program for
two fiscal years and maintains the progress and safeguards SCORE
has put in place to bring the program in line with federal operating
standards. These bills were marked up in Committee and passed
the House in the 117th Congress but were not considered in the
Senate.
On June 8, 2022, the Committee held a hearing with representa-
tives from the veteran business community to learn more about the
Boots to Business program offered by the VBOCs as part of the De-
partment of Defense’s (DOD) Transition Assistance program (TAP)
and build support for the program.. The Committee heard testi-
mony from both veterans and VBOC employees that spoke of the
success of the Boots to Business program, with more than 20,000
service members participating in the program in Fiscal Year 2021.
Prior to the hearing, the Committee worked with Representative
Bradley Schneider on H.R. 3469, the ‘‘Veteran Entrepreneurship
Training Act of 2021,’’ to codify the Boots to Business program for
five years. H.R. 3469 passed the House on November 2, 2021. A
companion bill passed the Committee on Small Business and En-
trepreneurship in the Senate, but it was not considered by the full
Senate.
Subpart 4—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 awarded to small businesses.
To accomplish this mission, SBA has a wide range of contracting
programs and supporting resources to level the playing field
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through better access to the federal procurement system. During
the 117th Congress, the Committee focused its oversight activities
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106
on ensuring these programs and resources are implemented in a
transparent manner and in accordance with law. In addition, the
Committee focused on highlighting the challenges that are limiting
firms from adequately competing.
The Committee and Subcommittee on Contracting and Infra-
structure held numerous hearings to explore the issues facing
small businesses contractors with the federal government. One of
the major obstacles is an initiative known as Category Manage-
ment which was discussed in two separate hearings held on Octo-
ber 13, 2021, and June 14, 2022. Taking into consideration how
this initiative has significantly disrupted the procurement land-
scape, the Committee asked Administrator Guzman about the
Agency’s efforts to increase participation and opportunities for
small businesses in federal government contracting during the
April 27, 2022 hearing. Similarly, during an oversight hearing with
the Associate Administrator of the Office of Government Con-
tracting and Business Development, Ms. Bibi Hildalgo, Members
inquired about small business participation on federal contracts.
Associate Administrator testified that the agency is monitoring the
progress of all agencies towards congressionally mandated goals for
small businesses contracting and is fully committed to equity in
procurement. They also heard about updates to the IT platform for
all certification programs and the work done by the Administration
to increase the federal contracting goal for small and disadvan-
taged firms. Aligned with these efforts, the Committee sent a letter
to the Office of Management and Budget on March 23, 2022, in re-
sponse to a Memorandum titled ‘‘Advancing Equity in Federal Pro-
curement.’’ In this letter, the Committee inquired about certain
policies included in the Memo, which range from increasing the
goals for socioeconomic small business participation to reforms re-
garding Category Management.
The Committee also studied an initiative known as the Cyberse-
curity Maturity Model (CMMC), which seeks to protect the Defense
Industrial Base (DIB) from cyber-attacks. In this respect, the Sub-
committee on Oversight, Investigations, and Regulations held a
hearing on June 24, 2021, to discuss the impact of the CMMC
model on the DIB and the importance of balancing cybersecurity
with maintaining a diverse and robust industrial base. Con-
sequently, a provision was included in the National Defense Au-
thorization Act for Fiscal Year 2022 requiring the Department of
Defense to report on the effects of the CMMC framework on small
businesses.
As part of its legislative oversight of the SBA’s contracting pro-
grams, the Committee held multiple hearings to discuss specific
programs and ways to improve them. For example, the Committee
held a hearing on the Surety Bond Guaranty program on July 27,
2022, and the Subcommittee on Contracting and Infrastructure
held hearings on the 8(a) program and the HUBZone program on
March 2, 2022, and July 14, 2022, respectively. Equally important,
the Committee approved three measures to make the programs
more robust and transparent. H.R. 5879, the ‘‘HUBZone Price Eval-
uation Preference Clarification Act of 2021,’’ clarifies that the price
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evaluation preference applies to task orders. This clarification will
help create a more equitable contracting system and allows federal
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107
agencies to spend more funds with HUBZone firms. H.R. 7670, the
‘‘WOSB Program Transparency Act,’’ requires the SBA to report
the number and total dollar amounts of contracts awarded under
the Women-Owned Small Business Federal Contracting program.
Finally, H.R. 7694, the ‘‘Strengthening Subcontracting for Small
Businesses Act of 2022,’’ encourages compliance with subcon-
tracting plans. All three bills were approved by the House on June
8, 2022.
The Committee also worked on numerous bipartisan contracting
provisions, some of which were included in the National Defense
Authorization Act for Fiscal Year 2022 and the National Defense
Authorization Act for Fiscal Year 2023. In addition to the CMMC
provision, the 2022 NDAA includes a provision to protect small con-
tractors by exempting the Miller Act thresholds from periodic ad-
justments for inflation and a provision authorizing the SBA’s Office
of Hearings and Appeals to decide appeals relating to qualified
HUBZone small business concerns. Similarly, the 2023 NDAA in-
cludes a provision to require additional data and codify the Small
Business Scorecard in the Small Business Act, and another to
strengthen a reporting requirement about bundled and consoli-
dated contracts.
Finally, the Committee engaged in various efforts to promote
contracts with small businesses. For example, on January 20, 2021,
President Biden announced a national strategy to respond to the
pandemic which included increasing production of testing and PPE
by leveraging the Defense Production Act. In response to this an-
nouncement, Chairwoman Velázquez and Subcommittee Chairman
Mfume, sent a letter to President Biden to request that any effort
to leverage the Defense Production Act to respond to the COVID–
19 pandemic should include small businesses, in particular minor-
ity-owned businesses.
Subpart 5—Oversight of SBA Management
The Committee actively oversees the management of SBA
through hearings, letters, and meetings with agency officials and
industry representatives. The SBA assists small businesses
through business loans, loan guarantees, counseling, and con-
tracting preferences. A primary concern for the Committee is to en-
sure that adequate levels of funding are available to fully imple-
ment SBA programs.
The Committee held multiple hearings with Administrator
Guzman in the 117th Congress. The hearings reviewed SBA’s man-
agement of the pandemic relief programs, capital access pro-
grams—specifically efforts undertaken by SBA to improve access to
capital for underserved small businesses and small-dollar bor-
rowers, government contracting programs, and entrepreneurial de-
velopment programs.
At the Committee hearing with Administrator Guzman to discuss
the SBA’s FY 2023 budget on April 27, 2022, the Administrator an-
nounced the creation of a new Fraud Risk Management Board
(FRMB), and the appointment of a Special Counsel for Enterprise
Risk. The Committee was pleased at the steps the SBA was taken
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to address fraud withing the current pandemic relief programs and
to create a system to prevent fraud in its programs going forward.
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Prior to the hearing, the Committee learned of the FRMB and
asked for additional information from the agency regarding SBA’s
new fraud oversight strategy. The Committee also wanted to en-
sure that the new strategy was in conformance with the GAO’s
Fraud Risk Framework. The Committee intends to continue to pro-
vide oversight over SBA’s implementation of a fraud risk strategy
and the work conducted by the FRMB.
As discussed in other sections of the report, the Committee has
been steadfast in its oversight of the billions of dollars that were
disbursed by SBA as part its pandemic relief programs. These pro-
grams will need to be monitored for years to come.
Also, of concern to the Committee was the transfer of the man-
agement of the disaster lending program from the Office of Dis-
aster Assistance to the Office of Capital Access, which was an-
nounced by Associate Administrator Kelley at the Committee’s
oversight hearing of the Office of Capital Access. Because of the im-
portance of the disaster lending program in helping businesses and
homeowners, the Committee followed-up with this agency regard-
ing this transfer. The Committee wanted to get a better and more
detailed understanding regarding the program change, and how it
would impact the agency’s long standing and proven disaster loan
program.
As discussed in further detail above, the Committee was con-
cerned about SBA’s FY 2023 budget request to reduce funding for
the CDC/504 loan program. The Committee raised these objections
in its May 17, 2022, Views and Estimates Letter, which was trans-
mitted to the Committee on Budget a required by House Rules and
the Congressional Budget Act. In the letter the Committee also
raised concerns about SBA’s funded unproven pilot programs, in
particular the Committee believes that instead of funding the Cy-
bersecurity for Small Business Pilot program the agency should in-
stead focus its efforts on improving cybersecurity assistance offered
by its existing network of entrepreneurial development service pro-
viders In addition, the letter requests increased funding and sup-
port for the Small Business Centers, Women’s Business Centers,
State Trade Expansion Program, the Native American Outreach
program, the Small Business Set-Aside programs, the Office of
Field Operations, Office of Information Technology, and the Office
of Rural Affairs.
On October 15, 2021, the OIG released its report on the most se-
rious management and performance challenges facing the SBA in
Fiscal Year 2022. And on November 30, 2021, the OIG released its
Semiannual Report to Congress (April 1, 2021 through September
30, 2021), which highlighted its independent oversight of the SBA,
as required by law. On January 12, 2022, the Committee held an
oversight hearing to examine the management and performance
challenges identified in the OIG’s FY 2022 report, the OIG’s Semi-
annual Report, and discuss SBA’s efforts to address these chal-
lenges.
Finally, throughout this Congress, the Committee also held sev-
eral management review hearings to evaluate budgetary requests,
financial management, and reporting goals in each of the offices at
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SBA. The respective Associate Administrator from each department
testified before the Committee at these hearings, which are de-
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109
tailed throughout this report. Moreover, Committee staff met regu-
larly with Associate Administrators and other SBA employees to
conduct oversight.
Subpart 6—Oversight of Federal Regulatory and Paperwork
Burdens
During the 117th Congress, the Committee continued to
prioritize oversight of federal agency regulations and paperwork re-
quirements to ensure small businesses are not unduly burdened.
On Wednesday, April 6, 2022, the Subcommittee on Underserved,
Agricultural, and Rural Business Development, held an oversight
hearing with the Office of Advocacy. Mr. Major Clark III, Deputy
Chief Counsel for Advocacy, testified about the Office’s role in ele-
vating the concerns of small businesses through the Federal rule-
making process. The hearing also examined Advocacy’s role in mon-
itoring agencies’ compliance with the Regulatory Flexibility Act
(RFA).
Legislatively, the Committee worked with former Representative
Antonio Delgado (D–NY) to advance H.R. 4877, the ‘‘One Stop Shop
for Small Business Compliance Act of 2021,’’ which would require
the SBA and Agriculture Regulatory Enforcement Ombudsman
(Ombudsman) to create a centralized website for compliance
guides. H.R. 4877 would reduce the administrative burden on small
businesses by housing small business compliance guides for any
rule for which an agency must prepare a final regulatory flexibility
analysis in one place. In addition, H.R. 4877 requires the Ombuds-
man to report to Congress on federal agencies’ compliance with the
Small Business Regulatory Enforcement Fairness Act of 1996
(SBREFA). H.R. 4877 was signed into law by President Biden on
October 10, 2022 (Pub. L. No. 117–188).
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 7—Oversight of Federal Tax Matters
During the 117th Congress, the Committed conducted oversight
of tax issues that arose with the processing of COVID–19 EIDL
and PPP applications. In 2021, SBA started requiring COVID–19
EIDL applicants to submit a copy of their tax return with their ap-
plication so their information could be verified in order to prevent
fraud within the program. In order to receive a copy of the tax re-
turn, the SBA would send a Form 4506–T to the Internal Revenue
Service (IRS) to process the tax return request for the applicant.
During the Committee’s oversight, which included meetings and
briefings, it found that delays at the IRS and administrative errors
by the SBA detrimentally impacted COVID–19 EIDL applicants re-
ceiving their loans in a timely manner.
In addition, Chairwoman Velázquez sent a letter to Secretary
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Yellen at the Department of Treasury and Administrator Guzman
at the SBA regarding the high number of PPP loan application de-
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110
nials of business owners whose ITINs numbers were expired by the
IRS. This issue adversely impacted immigrant business owners
from receiving PPP loans and relief from other SBA programs.
Subpart 8—Oversight of Health Care Policy
With the impact of the pandemic on small businesses and their
employees nationwide, the Committee conducted oversight of the
pandemic healthcare policies that affected small businesses during
the 117th Congress. On November 4, 2021, President Biden and
the Department of Labor’s Occupation Safety and Health Adminis-
tration (OSHA) issued the details of a requirement for employers
with 100 or more employees to ensure workers are fully vaccinated
or face testing for COVID–19 on a weekly basis. The OSHA Emer-
gency Temporary Standard (ETS) will also require that these em-
ployers provide paid time for employees to get vaccinated, and en-
sure all unvaccinated workers wear a face mask in the workplace.
In response to this ETS, the Committee held a bipartisan briefing
for Members to get a better understanding of how the ETS was
going to protect employees and customers, and the potential impact
of this policy on small businesses.
Subpart 9—Oversight of Energy Policy
In the 117th Congress, several hearings were held detailing how
small businesses can be involved in the clean energy economy. On
July 21, 2021, the Subcommittee on Oversight, Investigations, and
Regulations held a hearing regarding the role small businesses can
play in addressing climate change and the impact of climate
change on small businesses. The hearing also discussed opportuni-
ties for small businesses in the clean energy economy. The Sub-
committee on Innovation, Entrepreneurship, and Workforce Devel-
opment held a hearing on July 27, 2021, that examined the oppor-
tunities for small businesses, workers, and consumers in the clean
energy economy. The clean energy economy has the potential to
create millions of good-paying jobs across tens of thousands of busi-
nesses while lowering energy prices for consumers. The Sub-
committee on Underserved, Agricultural, and Rural Business De-
velopment held a hearing about the role of sustainable forestry and
how small businesses across this sector are helping to address cli-
mate change on September 29, 2021.
Subpart 10—Oversight of Trade Policy
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 117th Congress, the Committee worked to ensure
the STEP program meets the needs of its participants and expands
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access to export markets across the country, in preparation for the
reauthorization of the program.
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On July 19, 2022, the Subcommittee on Economic Growth, Tax,
and Capital Access held a hearing to learn about the importance
of STEP for small businesses. Economic development officials from
Georgia and New Jersey highlighted how STEP has been a valu-
able resource for the small businesses in their states. On Sep-
tember 20, 2022, the Committee held an oversight hearing with the
Office of International Trade. The hearing gave Members an oppor-
tunity to learn more about the Office’s operations implementation
of its flagship exporting program for small businesses, STEP. Dur-
ing the hearing, Associate Administrator Esparaza acknowledged
that some states were concerned with the administrative require-
ments of the STEP grant. He committed to work on those issues
and improving the effectiveness and efficiency of the program.
On September 21, 2022, the Committee approved H.R. 8844, the
‘‘STEP Improvement Act of 2022,’’ which would reauthorize STEP
for 4 fiscal years. In addition, the legislation would improve the im-
plementation of the program by creating a standardized application
process, increasing spending flexibility for grant recipients, improv-
ing communication between SBA and States, collecting perform-
ance metrics and reporting to Congress. H.R. 8844, was approved
by the House on XX, and was received in the Senate and referred
to the Committee on Small Business and Entrepreneurship on De-
cember 6, 2022.
Moreover, although under related to STEP, the Committee
looked at other ways to increase international trade opportunities
for small businesses. In doing so, the Committee approved a meas-
ure, H.R. 6454, which makes clear that the Office of Advocacy has
the authority to examine international economic data, and rep-
resent small business interests in international discussions, par-
ticularly in trade negotiations. The Office of Advocacy has partici-
pated in a number of international regulatory cooperation and
international trade initiatives that have impacted small businesses.
Their ability to conduct outreach to small business sectors and ex-
amine the potential economic effects of agreements on small busi-
nesses can help level the playing field for small businesses, and in
turn, open vast new markets for smaller firms. H.R. 6454 was ap-
proved by the House on April 26, 2022.
Subpart 11—Oversight of Agriculture
During the 117th Congress, the Committee conducted hearings
and oversight on the important role small businesses play in the
agriculture sector of the economy. Small businesses are engaged in
a wide range of farm and food related activities as producers, dis-
tributors, and retailers domestically and in the international mar-
ket. The Subcommittee on Underserved, Agricultural, and Rural
Development held a hearing on September 14, 2022, on the impacts
of repair restrictions on farmers and businesses in rural commu-
nities. The Subcommittee heard testimony regarding the hardships
on farmers caused by the fact that they cannot repair their equip-
ment immediately due to the repair restrictions. On June 16, 2021,
the Subcommittee on Underserved, Agricultural, and Rural Devel-
opment held a hearing examining leveraging investments in
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broadband to support small businesses. During the hearing Mr.
Tim Waibel, President of the Minnesota Corn Growers Association,
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testified that modern farmers need reliable and affordable internet
to utilize the technologies to run a successful farm. Finally, during
a Committee hearing on the SBA’s SBIC program on October 27,
2021, Mr. John Mickelson, Managing Partner of Midwest Growth
Partners, testified that Rural Business Investment Companies li-
censed by the U.S. Department of Agriculture should be able to
draw leftover funds from the SBIC program.
Subpart 12—Oversight of Technology, Competition, and
Innovation Policy
During the 117th Congress, the Committee held hearings and
conducted oversight on the importance of innovation, competition,
and cybersecurity. The Committee also addressed how the lack of
access to broadband is impacting rural communities, and the Com-
mittee conducted oversight on SBA’s efforts to modernize its legacy
technology systems, such as Certify.gov. The Committee also exam-
ined the systems used to implement the PPP loan and COVID–19
EIDL programs.
Competition
On March 1, 2022, the Committee held a hearing to examine the
history of antitrust law and the historical importance of encour-
aging fair competition and their potential impacts on small firms.
In particular, the hearing focused on whether America’s competi-
tion policy has stifled small business innovation. In addition, the
hearing examined policies that could be instituted that would cre-
ate a level playing field for small businesses when they compete
with larger corporations.
The Committee sent a letter to the Federal Trade Commission
and the Department of Justice on July 1, 2022, to submit their
findings and policy recommendations to promote competitive labor
markets and worker mobility in the creative economy that resulted
from a workshop the two agencies held titled, ‘‘Making Competition
Work: Promoting Competition in Labor Markets.’’ In response to
the letter, the two agencies held a briefing for the Committee high-
lighting their work in this field, specifically the steps they are tak-
ing to promote competition in the creative industry and to protect
and help workers that are employed in the industry.
Cybersecurity
The Committee, in the 117th Congress, has been focused on en-
hancing resources and conducting oversight of the SBA’s cybersecu-
rity efforts. This includes reviewing the agency’s internal cyberse-
curity plans and plans to assist small businesses in defending
themselves from cyberattacks. The financial and reputational
harms of a cyberattack can be devastating for a small business,
and the Committee wants to ensure that the resources are avail-
able protect these businesses from bad actors.
In the 117th Congress, as part of its legislative oversight efforts,
the Committee approved three bills that would address the increas-
ing evolving cyberattacks aimed at small businesses. The three
bills are as follows: H.R. 3462, directs the SBA to issue reports on
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its cybersecurity infrastructure and issue reports in the event of
cyberthreats, breaches, and cyberattacks at the agency; H.R. 4515,
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113
helps Small Business Development Centers become better equipped
to assist small businesses with their cybersecurity needs; and H.R.
4513, would facilitate greater collaboration between small busi-
nesses and the federal government, and ultimately fortify our na-
tion’s cyber defenses. H.R. 3462 passed by the House on November
2, 2021, and was recently passed by the Senate, with an amend-
ment on December 6, 2022. H.R. 4515 passed the House on Novem-
ber 2, 2021, and was received in the Senate and referred to the
Committee on Small Business and Entrepreneurship on November
3, 2021. H.R. 4513 was reported to the House on October 12, 2021.
SBIR/STTR
On March 8, 2022, the Committee on Small Business held an
oversight hearing titled ‘‘Overview of the Small Business Innova-
tion Research (SBIR) and Small Business Technology Transfer
(STTR) programs.’’ This was the third hearing in a series on the
SBIR and STTR programs, which were set to expire on September
30, 2022. The sole witness was Mr. John Williams, the Director of
Innovation and Technology for the SBA’s Office of Investment and
Innovation (OII). SBA OII is responsible for coordinating policy
across the 11 participating agencies, monitoring implementation of
the programs, maintaining policy directives, and developing annual
reports. Director Williams raised concerns about the fast-approach-
ing expiration date of the programs and the consequences of a shut
down on small business innovators and federal research agencies.
After months of bipartisan and bicameral negotiations, the Com-
mittee finalized an agreement. The House passed S. 4900, the
‘‘SBIR and STTR Extension Act of 2022’’ to reauthorize the SBIR,
STTR, and pilot programs for three years (through 9/30/2025) to
provide stability and certainty for the small businesses and the
agencies that rely on their technology. It also expands federal re-
search security practices within the SBIR and STTR programs to
protect against technology theft by malign foreign governments, re-
quires the Department of Defense to increase the use of open topic
solicitations to attract new ideas and new firms, raises the per-
formance standards for more experienced firms while preserving
the golden standard of competition based on merit-based, best
science rather than award caps or quotas, and requires new reports
by the OIG and GAO. President Biden signed the bill into law on
September 30, 2022, P.L. 117–183.
Subpart 13—Oversight of Labor and Workforce Policy
The Committee held hearings to analyze the workforce needs of
small businesses often through the lens of workforce development
programs. The Committee held a hearing on September 15, 2022,
on the importance of apprenticeship and training programs to as-
sist small businesses in hiring and retaining high-skilled workers,
and held a hearing on March 31, 2022, on how apprenticeships can
be used to build a skilled workforce to meet the needs of small
businesses. The Committee also examined innovations in commu-
nity college programs to help retool the American workforce. Also,
the Committee held hearings on how investments in infrastructure
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could help create millions of good paying jobs for American work-
ers.
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On May 11, 2022, the Committee approved H.R. 7622, the ‘‘Small
Business Workforce Pipeline Act of 2022,’’ and H.R. 7664, the ‘‘Sup-
porting Small Business and Career and Technical Education Act of
2022.’’ These two pieces of legislation will help small firms attract
and retain qualified workforces by utilizing apprenticeships and ca-
reer and technical education programs. Both bills were approved by
the House on June 8, 2022. Both bills were received in the Senate
and referred to the Committee on Small Business and Entrepre-
neurship on June 9, 2022.
Æ
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