Markup of Committee's Budget Views and Estimates (House Small Business Committee hearing, February 28, 2023)

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The transcript of a Markup of Committee's Budget Views and Estimates before the House Committee on Small Business, 118th Congress, first session, held February 28, 2023 (Small Business Committee Document Number 118-003). Chairman Roger Williams calls the meeting to order and the contents list opening statements by Chairman Williams and Ranking Member Nydia Velázquez. Velázquez gives notice that the committee's Democrats will file additional views with the Committee on the Budget regarding the SBA FY 2024 budget. The appendix lists the Majority Views and Estimates and the Minority Views and Estimates for the Fiscal Year 2024 Budget Resolution.

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MARKUP OF COMMITTEE’S BUDGET VIEWS AND
ESTIMATES

HEARING
BEFORE THE

COMMITTEE ON SMALL BUSINESS
UNITED STATES
HOUSE OF REPRESENTATIVES
ONE HUNDRED EIGHTEENTH CONGRESS
FIRST SESSION

HEARING HELD
FEBRUARY 28, 2023

Small Business Committee Document Number 118–003
Available via the GPO Website: www.govinfo.gov

U.S. GOVERNMENT PUBLISHING OFFICE
51–409 WASHINGTON : 2023
HOUSE COMMITTEE ON SMALL BUSINESS
ROGER WILLIAMS, Texas, Chairman
BLAINE LUETKEMEYER, Missouri
PETE STAUBER, Minnesota
DAN MEUSER, Pennsylvania
BETH VAN DUYNE, Texas
MARIA SALAZAR, Florida
TRACEY MANN, Kansas
JACK ELLZEY, Texas
MARC MOLINARO, New York
MARK ALFORD, Missouri
ELI CRANE, Arizona
AARON BEAN, Florida
WESLEY HUNT, Texas
NICK LALOTA, New York
NYDIA VELÁZQUEZ, New York, Ranking Member
JARED GOLDEN, Maine
KWEISI MFUME, Maryland
DEAN PHILLIPS, Minnesota
GREG LANDSMAN, Ohio
MORGAN MCGARVEY, Kentucky
MARIE GLUESENKAMP PEREZ, Washington
HILLARY SCHOLTEN, Michigan
SHRI THANEDAR, Michigan
JUDY CHU, California
SHARICE DAVIDS, Kansas
CHRIS PAPPAS, New Hampshire

BEN JOHNSON, Majority Staff Director
MELISSA JUNG, Minority Staff Director

(II)
CONTENTS
OPENING STATEMENTS
Page
Hon. Roger Williams ................................................................................................ 1
Hon. Nydia Velázquez ............................................................................................. 2

APPENDIX
Additional Material for the Record:
Majority Views and Estimates for Fiscal Year 2024 Budget Resolution ..... 5
Minority Views and Estimates for Fiscal Year 2024 Budget Resolution ..... 15

(III)
MARKUP OF COMMITTEE’S BUDGET VIEWS
AND ESTIMATES

TUESDAY, FEBRUARY 28, 2023

HOUSE OF REPRESENTATIVES,
COMMITTEE ON SMALL BUSINESS,
Washington, DC.
The Committee met, pursuant to call, at 9:47 a.m., in Room
2360, Rayburn House Office Building, Hon. Roger Williams [Chair-
man of the Committee] presiding.
Present: Representatives Williams, Luetkemeyer, Stauber,
Meuser, Van Duyne, Mann, Ellzey, Molinaro, Alford, Bean, Hunt,
LaLota, Velázquez, Phillips, Landsman, McGarvey, Gluesenkamp
Perez, Scholten, Thanedar, Davids, and Pappas.
Chairman WILLIAMS. Good morning to everyone. I want to
thank everybody for being here. And I call the Committee on Small
Business Meeting to order. Without objection, the Chair is author-
ized to declare the recess of this Committee at any time. Today’s
first order of business is to consider the views and estimates on the
priorities of the Committee on Small Business for fiscal year 2024.
Then, we will then briefly adjourn to re-set the room for our first
hearing, which will take place immediately following this meeting.
I now recognize myself to make an opening statement.
There is no question that our country relies on small business.
In fact, 99 percent of all U.S. businesses are small businesses. We
are a nation of creators, inventors, and risk takers. Our economy
was structured to be driven by entrepreneurs. Most net job growth
in this country comes from small firms, yet we are hearing from
small business owners back home that they are struggling. In fact,
after this mark-up, we will hear from four of those small business
owners, who will educate us on the problems they face in today’s
economy.
Our goal, this Congress, is to pass meaningful reform to lessen
regulatory burdens and increase access to capital to those who need
it most. The last few years of overburdensome regulations and in-
flation have brought many small businesses to the breaking point.
That is why last week Republican Members on this Committee sent
25 letters to agencies, asking how they were considering small
businesses in their rulemaking process. The Small Business Ad-
ministration, over which we have jurisdiction, has a vital role in
helping small firms expand and grow our economy. It is our job on
this Committee to ensure that the SBA’s programs are working ef-
ficiently and effectively to the benefit of all types of small business.
We must censure that this is a positive return on investment for
the taxpayers.
(1)
2

The budget views and estimates presented today for this upcom-
ing fiscal year note that the SBA faces a significant number of
challenges. For instance, the emergency funding programs from the
pandemic quickly overwhelmed the SBA and were subject to total
fraud. In addition, as of May 2022, the SBA had 44 outstanding
recommendations for improvement from the Government Account-
ability Office. The implementation of these recommendations is
vital to ensure the SBA fulfills its mission, and we intend to over-
see that effort.
Our views and estimates also commit to conducting oversight
over systematic failures in the SBA and promote legislative
changes that will ensure the right people have access to the capital
and acts and assistance they need to succeed.
So, with that, I yield to the distinguished Ranking Member, Ms.
Velázquez, for 5 minutes for any remarks she may wish to make
on the budget views and estimates.
Ms. VELÁZQUEZ. Thank you, Mr. Chairman, for holding this
mark-up today on the Committee’s views and estimates of the
Small Business Administration.
Let me begin by saying the economic progress we have made
over the past 2 years is undeniable. We have added more than 12
million new jobs, and more than 10.5 million people applied to
start a new business. This is in large part due to the policies en-
acted by Democrats in the last Congress. More work needs to be
done, and I am committed to working with Chairman Williams to
make important budgetary decisions for SBA programs.
The submission of this document to the Budget Committee is an
important aspect of the Committee’s work, and I am sure my col-
leagues will agree that it would have been better to wait until the
President submits his proposed budget for FY 2024 next week.
Having the agency’s up-to-date information and projections would
enhance our recommendations to the Budget Committee.
Our views and estimate letter focuses broadly on improving pro-
grams and oversight at the Small Business Administration. We
agree with much of the Majority’s views. For example, recom-
mending that SBA take steps to improve its capital access, procure-
ment, and entrepreneurial development programs is prudent gov-
ernance. Doing so advances SBA’s mission to assist small busi-
nesses and better protect taxpayers.
Another area of agreement is our commitment to conducting vig-
orous oversight of lending rules to ensure they will actually en-
hance the current program without causing harm to it or the bor-
rowers. Expanding lending to borrowers in underserved markets is
a top priority, and that is why Democrats support codifying the
Community Advantage Program, a proven program that has been
effective in reaching underserved borrowers.
Turning to SBA’s disaster loans, which are the primary form of
federal assistance for both homeowners and small businesses, we
have seen multiple once-in-a-century weather events. We must en-
sure sufficient funds are available to help Americans in their times
of need, just as we did during the pandemic, when SBA delivered
$390 billion to 4 million small businesses through the COVID
EIDL program.
3

SBA will need significant funding to service these loans over the
next 30 years. Federal funding for SBA entrepreneurial develop-
ment programs provide free or low-cost counseling and training to
more than a million entrepreneurs each year. The Committee has
worked in a bipartisan manner to reauthorize this program and in-
crease the levels of funding, which we continue to support.
Similarly, SBA procurement programs maximize small business
participation in federal contracts, which in turn boosts competition,
lower prices, and expand our nation’s supplier base. Robust funding
is imperative if we want to provide this program with the per-
sonnel and resources needed to adequately meet their intent.
Turning to the Regulatory Flexibility Act, we agree agencies need
to follow the process to reduce regulatory burdens for small firms,
but we oppose a blanket rejection of regulations that safeguard
health, safety, and environment.
We must proceed with thoughtful deliberation to tailor regula-
tions for small businesses and provide compliance assistance. This
agreement on agency priorities is not unusual, and that is why
Committee Democrats will be submitting additional views and esti-
mates to the Budget Committee.
SBA remains the government’s best resource for small busi-
nesses, be it capital access, counseling, or contracting opportuni-
ties. The success of the economy depends on small businesses lead-
ing the way, and the SBA is central to this.
I thank the Chairman again for holding this mark-up. I look for-
ward to working together in a bipartisan way to further foster en-
trepreneurship.
Thank you. I yield back.
Chairman WILLIAMS. Thank you. Are there any other Members
who wish to be recognized for a statement on the views and esti-
mates on the priorities of the Committee for fiscal year 2024?
All right, seeing none, the Committee now moves to consideration
of the views and the estimates.
A copy of the proposed views and estimates has been distributed
to Members in advance. Without objection, the views and estimates
are considered read and open for amendment. Does any Member
seek recognition for the purpose of offering an amendment?
All right, seeing no amendments, the question is on adopting the
views and estimates on the priorities on the Committee for fiscal
year 2024.
All those in favor, say, aye.
All opposed, say, no.
In the opinion of the Chair, the ayes have it, and the views and
estimates are agreed to.
The Ranking Member is now recognized for a motion.
Ms. VELÁZQUEZ. Mr. Chairman, I would like to give notice,
pursuant to House Rule XI 2(l), that the Committee’s Democrats
will be filing additional views with the Committee on the Budget
regarding SBA FY 2024 budget.
Thank you.
Chairman WILLIAMS. Without objection, so ordered.
Without objection, the staff is authorized to make technical and
conforming changes, and I would like to thank everyone for partici-
pation today.
4

This meeting of the Committee on Small Business is adjourned.
Members, please stay seated, and we will bring the witnesses up
for the hearing today.
[Whereupon, at 9:57 a.m., the committee was adjourned.]
5

APPENDIX
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