Member Day (House Small Business Committee hearing, November 30, 2023)

Summary

Transcript of the November 30, 2023 House Small Business Committee Member Day, Small Business Committee Document Number 118-032. Chairman Roger Williams and Ranking Member Nydia Velázquez opened, and the session ran from 10:02 a.m. to 10:31 a.m. Statements came from Jill Tokuda and Ed Case of Hawaii, Jen Kiggans of Virginia and Blake Moore of Utah. The appendix adds a statement by Mark Alford on the VA's T4NG2 contract.

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“Member Day (House Small Business Committee hearing, November 30, 2023).” Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/member-day-house-small-business-committee-hearing-november-30-2023-e849af3d9f/, SHA-256 e159b805528644cb5f87e7c5bd1f992f642e8a3dbe7c330fadb40338e372907e.

Full text

MEMBER DAY

HEARING
BEFORE THE

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

HEARING HELD
NOVEMBER 30, 2023

Small Business Committee Document Number 118–032
Available via the GPO Website: www.govinfo.gov

U.S. GOVERNMENT PUBLISHING OFFICE
54–162 WASHINGTON : 2024
HOUSE COMMITTEE ON SMALL BUSINESS
ROGER WILLIAMS, Texas, Chairman
BLAINE LUETKEMEYER, Missouri
PETE STAUBER, Minnesota
DAN MEUSER, Pennsylvania
BETH VAN DUYNE, Texas
MARIA SALAZAR, Florida
TRACEY MANN, Kansas
JAKE ELLZEY, Texas
MARC MOLINARO, New York
MARK ALFORD, Missouri
ELI CRANE, Arizona
AARON BEAN, Florida
WESLEY HUNT, Texas
NICK LALOTA, New York
NYDIA 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
Hon. Jill Tokuda, a Representative in Congress from the State of Hawaii ........ 3
Hon. Ed Case, a Representative in Congress from the State of Hawaii ............. 5
Hon. Jen Kiggans, a Representative in Congress from the State of Virginia .... 7
Hon. Blake Moore, a Representative in Congress from the State of Utah ......... 9

APPENDIX
Prepared Statements:
Hon. Jill Tokuda, a Representative in Congress from the State of Hawaii 11
Hon. Ed Case, a Representative in Congress from the State of Hawaii ...... 14
Hon. Jen Kiggans, a Representative in Congress from the State of Vir-
ginia ............................................................................................................... 16
Hon. Blake Moore, a Representative in Congress from the State of Utah .. 18
Questions for the Record:
None.
Answers for the Record:
None.
Additional Material for the Record:
Hon. Mark Alford Statement for Member Day on the VA’s T4NG2 Con-
tract ................................................................................................................ 20

(III)
MEMBER DAY

THURSDAY, NOVEMBER 30, 2023

HOUSE OF REPRESENTATIVES,
COMMITTEE ON SMALL BUSINESS,
Washington, DC.
The Committee met, pursuant to call, at 10:02 a.m., in Room
2360, Rayburn House Office Building, Hon. Roger Williams [chair-
man of the Committee] presiding.
Present: Representatives Williams, Velázquez, Landsman, and
Davids.
Chairman WILLIAMS. Okay, before we get started I recognize
myself to lead us in the Pledge and the prayer. Please stand.
I pledge allegiance to the flag of the United States of America.
And to the Republic for which it stands, one nation under God, in-
divisible, with liberty and justice for all.
Bow your head, please.
Heavenly Father, God of all people, thank you for allowing us to
be here today to do things together as a team to make our country
better and be open-minded about it. In Your name we pray. Amen.
Good morning. I now call the Committee on Small Business to
order.
Without objection, the Chair is authorized to declare a recess of
the Committee at any time.
I now recognize myself for my opening statement.
Welcome to today’s House Committee on Small Business Member
Day Hearing. I want to thank each of you who may not sit on this
Committee for taking the time to come and share with us what you
are hearing from small businesses in your districts. I think this is
an excellent way for those of us on the Committee to broaden our
understanding and hear about what is going on in different parts
of the country. It is also beneficial to hear how different Members
interact with small businesses in their districts.
As I am sure we all have seen, America’s entrepreneurs have had
to confront historic challenges over the past few years—the
COVID-19, out of control inflation, broken supply chains, high in-
terest rates, and a national labor shortage. But as small business
have done countless times before, they endure.
Here on the Committee on Small Business we are working to cre-
ate an environment where businesses can thrive and survive, and
we all know that small business owners dedicate their lives and fi-
nances to the products and services they bring to the marketplace.
Every extra hour of paperwork is one less hour they can tend to
their personal livelihoods; every inflated tax is an extra dollar that
(1)
2

could have gone somewhere else; and every job vacancy is one more
a small business owner must cover themselves.
As we listen to the firsthand accounts, we salute the small busi-
nesses who continue to fight and give selflessly back to their com-
munities, and we are eager to enact policies and solutions that will
help pave a path toward success for both now in the future.
That is why we are looking forward to our conversation today.
There is always something we can learn and increasing the dia-
logue about small businesses between Members and it can only
strengthen and broaden our collective experience in how to better
serve our nation’s biggest job creators.
I want to thank you all for being here with us today. I look for-
ward to today’s conversation.
With that, I yield to our distinguished Ranking Member from the
great state of New York, Ms. Velázquez.
Ms. VELÁZQUEZ. Thank you, Mr. Chairman.
Today is a chance for the Committee to hear directly from our
fellow Members of Congress about their priorities for supporting
programs and policies that promote small business creation and
growth.
Small businesses have experienced unprecedented challenges
over the past few years. In 2020, the pandemic closed more small
businesses than any other year on record. As the COVID crisis
began to ease, many small businesses were then confronted with
supply chain problems, staffing shortages, and rising costs.
Despite all of these challenges, small employers have been the
driving force behind our economic recovery from the pandemic.
This is in part due to the bipartisan efforts of this Committee over
the years which helped provide over $1 trillion in relief to small
firms during a time of need.
Today we continue to see the fruits of that historic investment.
Since President Biden took office, Americans have filed a record
14.6 million applications to start businesses and recorded record
job creation rates.
At the same time, unemployment remains near historic lows, and
more than 14 million jobs have been created since the start of
2021.
As Members of Congress, it is our responsibility to help build on
the progress small businesses have made and supply them with the
resources they need to thrive. To do this we must have a keen un-
derstanding of the top challenges facing entrepreneurs back home
in our district. I know that when we travel back to our districts,
we are eager to hear from our local small business owners to un-
derstand what policies are working for them and what we can im-
prove on.
For the Members testifying here today, I know that you have
been gathering feedback from main street businesses in your dis-
trict. I look forward to your insights, and I appreciate you taking
the time to be a voice for small business constituents today. This
Committee’s mission is to open the lucrative federal marketplace to
entrepreneurs, strengthen capital markets for all small employers,
and give small firms the tools they need to take care of their em-
ployees and build their companies.
3

We do so while working together. Our Committee has a long his-
tory of bipartisanship because we all agree that small businesses
truly are the backbone of our economy. They unify us in our work
and hold our communities together. Today we have the chance to
engage in an open dialogue on how we can collaborate to support
small firms.
Thank you again to all the Members for being here today. I look
forward to our discussion.
Thank you. I yield back.
Chairman WILLIAMS. So before we continue I would like to take
a moment to explain the rules of civil proceeding. That is like talk-
ing to the choir. I get it. But I do want to emphasize one thing
about this Committee. We are a bipartisan Committee. We get a
lot of things done together and so forth and we are proud of that.
So each Member will be given 5 minutes to deliver their testi-
mony and after they finish speaking we will briefly pause as we
change the panel to accommodate the next Member.
With that I would like to introduce our first Member, the Honor-
able Jill Tokuda from the great state of Hawaii. Representative
Tokuda—am I saying that correctly?
Ms. TOKUDA. Tokuda.
Chairman WILLIAMS. Tokuda. I am from Texas remember.
Okay. All right.
The representative who represents Hawaii’s Second Congres-
sional District, which includes suburban Oahu and the remainder
of the Hawaiian Islands, elected November of 2022 to serve in the
118th Congress. The representatives serves on the House Com-
mittee on Agriculture, the Committee on Armed Services, and the
select Subcommittee on the Corona virus pandemic. So representa-
tive, it is nice to have you here. Thank you for taking the time to
come see us and I recognize you for 5 minutes.
STATEMENT OF HON. JILL TOKUDA, A REPRESENTATIVE IN
CONGRESS FROM THE STATE OF HAWAII
Ms. TOKUDA. Thank you, Chairman Williams, Ranking Member
Velázquez, and distinguished Members of the House Small Busi-
ness Committee. Mahalo for the opportunity to testify before you
today.
Small businesses are the backbone of our economy in Hawaii.
From tour operators to local foods that I know most of you have
enjoyed, jewelry and clothing, product manufacturing and service
providers, small businesses in Hawaii support their local commu-
nities through jobs and investments and have made Hawaii a lead-
ing destination for both business and tourism.
I want to thank this Committee for its decisive action during the
COVID-19 pandemic. Your work helped to save countless Hawaii
small businesses from going under. You saved jobs.
I am testifying before you today to ask for your help once again
to respond to a historic crisis on Maui that is impacting our entire
state.
I am honored to represent Hawaii’s Second Congressional Dis-
trict which spans all eight of our major Hawaiian islands, including
the island of Maui which suffered considerable devastation and
death from the August 8 fires, the deadliest wildfires in U.S. his-
4

tory in over a century. In just a single day, the Maui wildfires
cause significant physical damage and emotional trauma that will
be felt in Lahaina on Maui and throughout our entire state for gen-
erations to come.
Lahaina was home to as many as 1,000 businesses, many of
them small mom and pop, family owned and operated, many of
them microbusinesses with nine employees or less. By some esti-
mates, the catastrophic damage inflicted upon our Maui commu-
nities as a result of the fires has caused up to $6 billion in eco-
nomic losses. According to state agencies, 40 percent of Maui’s
economy depended on tourism and visitor spending on Maui made
up about 1/3 of total visitor spending in our state.
Because of the fires, visitor numbers on Maui are at historic
lows. From the latest monthly data, just over 94,000 visitors com-
ing to Maui in September of 2023. That volume represents a more
than 57 percent drop from September of 2022.
In addition to the physical damage from the fires, small busi-
nesses throughout Hawaii, especially Maui, are facing an economic
crisis. In response, the Hawaii Small Business Administration and
Small Business Development Centers have acted swiftly to provide
resources and support to businesses in need, and I want to com-
mend them for their responsiveness and their unwavering commit-
ment to getting our business back on track.
As of the end of October, the small business administration has
served over 7,900 individuals and approved 1,219 disaster assist-
ance loans for almost $200 million; 398 business loans totaling $59
million; and 821 loans for homeowners and renters totaling $140.9
million. While this assistance has been critical in helping residents
rebuild and recover from the fires, too many businesses in my dis-
trict are still, unfortunately, getting left behind from existing fed-
eral programs.
Just as you recognize in the midst of the pandemic, supplemental
programs are needed to meet the needs that arise from unprece-
dented disaster. I have heard from countless small business owners
still recovering from the economic impact of the pandemic who can-
not qualify for SBA assistance because of program capital require-
ments or could not take on more loans because they had existing
debt from pandemic error programs. Over 4,700 EIDL loans total-
ing roughly $569 million were made to my county during the pan-
demic.
Understanding the compounding financial impact COVID and
the fire have had on our small business, I introduced the Microen-
terprise Assistance and Urgent Investment for Supporting Trade,
Recovery Operations, and Neighborhood Growth, or the MAUI
STRONG Act. This bill would help businesses reestablish them-
selves and provide an economic bridge to recovery by providing
grants of up to $20,000 to nonprofits, small businesses with fewer
than 25 employees, and independent contractors that expense rev-
enue lost because of the fires. These funds would help cover a vari-
ety of expenses that come with rebuilding and restarting a busi-
ness.
In addition to the need for direct relief, changes to federal con-
tracting laws would go a long way in supporting local businesses
recovering from disaster. FEMA and the U.S. Army Corps of Engi-
5

neers are to be commended for their swift action hiring local 8(a)
Native Hawaiian Organizations to perform debris removal, con-
struct a temporary school, and provide cultural oversight of oper-
ations in the burn zone and Lahaina. Native Hawaiian small busi-
nesses have repeatedly demonstrated their ability to do critical
work across federal government and we should take the example
of the fires to ensure Native Hawaiian businesses can receive 8(a)
direct awards above the competitive threshold from all federal
agencies, not just through the Department of Defense.
My bill, H.R. 3830 would do just that, so that Native Hawaiian
organizations have parity with Native America and Alaska Native
owned businesses.
Chairman Williams, Ranking Member Velázquez, our Small
Business Committee Members, small businesses and entrepreneurs
in Hawaii are emblematic of the hard working spirit that makes
our nation so great. At this time of unprecedented disaster in my
home state of Hawaii, Congress must do everything possible to sup-
port those who are struggling.
I truly appreciate this opportunity to testify before you today and
look forward to working with you to support our State of Hawaii.
Mahalo.
Chairman WILLIAMS. Well, thank you very much. And I would
just like to say I have been to every state in the union but Hawaii.
But just from your testimony we have a thing called the Texas
spirit that we talk about all the time. And it sounds like you have
got the Hawaii spirit.
Thank you for being here.
Now we will introduce our next Member, The Honorable Ed
Case. Ed, thank you for being here from the great state of Hawaii.
Is everybody from Hawaii here? Representative Case represents
Hawaii’s First Congressional District, which covers the urban por-
tion of Oahu. Congressman Case previously represented Hawaii’s
Second Congressional District from 2002 to 2007 after serving as
a state representative from 1994 to 2002. His positions in the legis-
lature included majority leader. Since returning to Congress in
2019, Representative Case has served on the House Committee on
Appropriations where he is currently a Member of the Sub-
committee on Defense and the Subcommittee on Homeland Secu-
rity.
Congressman Case, it is nice to have you here. Thank you for
being here and I recognize you for 5 minutes.
STATEMENT OF HON. ED CASE, A REPRESENTATIVE IN
CONGRESS FROM THE STATE OF HAWAII
Mr. CASE. Thank you so much Mr. Chair and Ranking Member.
It is great to be back. You missed the most important part which
is I was a former Member of this Committee during my—yes, I did.
So I have very good memories and have taken many, many lessons
from my service on this Committee.
I appreciate the opportunity to talk with you today. Like my col-
league, Ms. Tokuda—and by the way, I endorse everything that she
just said to you—I am on the bills that she referred to you. I am
here to talk to you about Maui today and the specific devastating
August 2023 Maui wildfires which had so much impact throughout
6

our community but were particularly impactful on our small busi-
nesses.
They were, as she has testified, one of the worst natural disas-
ters in our country’s history with significant death and displace-
ment, burned areas throughout Lahaina in particular but not only
Lahaina. And a particularly deep impact on our small businesses.
Small businesses on Maui and businesses throughout Hawaii
linked to Maui, have experienced what anybody would call a severe
economic disruption following the fires. The State of Hawaii revised
its statewide economic growth projections for 2023 and 2024 down-
ward from 1.8 percent to 1.1 percent for 2023 and 2.0 to 1.5 percent
in 2024.
Far worst impacts on Maui, clearly just measured by initial un-
employment claims as an example, which jumped from an average
of 130 cases per week before the wildfire, 865 cases in the first
week after to almost 5,000 in the second week after the fire. Unem-
ployment went up to about 8.6-8.8 percent.
This economic consequence of the fires is hitting our Hawaii
small businesses hard. Still, they comprise the vast majority of our
workforce and are the backbone of our economy. Hawaii is a state
where small businesses is truly king. We have some 130,000 small
businesses, and the average small business employs just 12 people.
So it is a small, small business state. They already were recovering
from COVID-19 but they find themselves particularly grappling
with the aftermath of these recent wildfires.
The SBA, as Ms. Tokuda has referred to, has responded admi-
rably. They have approved almost 2,000 disaster loans, $243 mil-
lion of loans, and while this is commendable progress, it is very,
very clear that much more needs to be done. And the existing pro-
grams are falling short. This is really something that we saw dur-
ing COVID because when we went into COVID we discovered that
the programs of the small business were not exactly adapted to the
crisis that we were being faced with and we needed to modify those
and we did. And I think that was successful.
And so take that same theory and apply it to the Maui wildfires,
which present their own microcosm of small business consequence
and the need to actually adjust both our laws and our programs
from the small business perspective to specify particular needs that
are on Maui.
I am going to, myself, soon be introducing what we refer to as
the Heal Maui Act, which is a comprehensive legislative proposal
designed to provide swift and meaningful and direct support to our
small business and their specific conditions on Maui during these
times.
There are several key provisions that directly address these
issues. First of all, they seek to augment the existing SBA Eco-
nomic Injury Disaster EIDL Loan program.
Second, they would establish a new loan program under the 7(a)
initiative to directly address the immediate financial challenges
many businesses face in the aftermath of the wildfires.
And finally, for those that have already taken out SBA disaster
loans post-wildfire, my Heal Maui Act would offer a beacon of hope
through loan cancellations where appropriate, recognizing the need
to alleviate the weight of debt during these time when the busi-
7

nesses may not be able to open at all for a number of years. And
therefore, we need to find some way to allow them to survive
through a very difficult time of recovery.
Again, this is not anything particularly new but what it does do
is to take the lessons of our COVID-19 related refinements of the
small business programs and continue them forward in another
disaster which is every bit the same disaster as COVID-19 but with
its own specific conditions that we need to adjust to.
So I commend to you not only the legislation that Ms. Tokuda
referred to, and not only the need to assist our small businesses in
Maui but in particular as well the Heal Maui Act which I will soon
introduce. And I ask for your favorable consideration when that
ends up with the Committee.
I appreciate your time. I appreciate your focus. I appreciate your
effort. And Mahalo.
Chairman WILLIAMS. What did you just say?
Mr. CASE. Mahalo.
Chairman WILLIAMS. Thank you.
Mr. CASE. That is Texan for thank you.
Chairman WILLIAMS. That is what I thought. That is what I
thought I heard. But anyway, thank you for being here, too. And
you have got a unique situation. I listened to your testimony. Ad-
justments, flexible, like we do in business anyway are needed and
I think, you know, when you think about it, what your small busi-
ness owners are going through, it is a real test of capitalism and
entrepreneurship to begin to take something and start it all over
again. And so we need to do what we can to make sure that hap-
pens. Thanks for being here.
Mr. CASE. Thank you very much.
Chairman WILLIAMS. Sure.
I will now introduce our next Member, The Honorable Jen
Kiggans, from the great state of Virginia. Representative Kiggans
serves Virginia’s Second Congressional District, which includes Vir-
ginia Beach, the Eastern Shore, and parts of Chesapeake and
South Hampton. Representative Kiggans served three sessions in
the Virginia State Senate before her election to the House, and
prior to elected office, the Congresswoman served as a helicopter
pilot in the U.S. Navy and worked as a geriatric nurse practitioner.
Thank you for all of that. In the U.S. House, she sits on the Armed
Services, Natural Resources, and Veterans Affairs Committee. So
Congresswoman, thank you for being here, and you are recognized
for 5 minutes.
STATEMENT OF HON. JEN KIGGANS, A REPRESENTATIVE IN
CONGRESS FROM THE STATE OF VIRGINIA
Ms. KIGGANS. Thank you, Mr. Chair. Thank you for the Com-
mittee and for the warm welcome. I appreciate that.
I have the honor of representing Virginia’s Second Congressional
District, which is home to one of the largest veteran populations in
the country. So I appreciate the opportunity to be here today to dis-
cuss my Investing in Vets Act.
Small businesses, as we know, are the cornerstone of the Amer-
ican economy. In fact, our country’s entrepreneurs employ nearly
half of all private sector workers and account for most new jobs cre-
8

ated since 1995. Veterans who serve our country and are injured
in the line of duty face tightened challenges during the already dif-
ficult transition from active duty service to civilian life.
According to the Bureau of Labor Statistics, 27 percent of vet-
erans have a service-connected disability. Following their service,
many veterans use the invaluable professional and life skills they
learned in the military to have successful careers across a wide
array of industries.
Starting, owning, and operating a small business, much like
serving our country, requires hard work, determination, and sac-
rifice, which is why it is no surprise than many veterans have suc-
cesses in these ventures. In fact, some of the most dynamic and
successful businesses in my district are veteran owned.
I am also very proud that as of 2017, our Commonwealth boasts
nearly 13,000 veteran-owned small businesses. As you know, small
businesses face many barriers to success, including competing for
government contracts.
My Investing in Vets Act weeks to fix this by increasing the fed-
eral contracting goal for service-disabled, veteran-owned small
businesses from 3 to 5 percent. My bill will help make small busi-
nesses more competitive when trying to secure federal contracting
opportunities. Additionally, this bill would require these businesses
to be certified by the Small Business Administration rather than
the existing self-certification process. This important step will re-
duce fraud and ensure that the benefits of this program are going
to those it intends to help.
This legislation will provide an important economic boost for our
veteran-owned small business at a time when rising prices have
wreaked havoc on our nation’s entrepreneurs.
Once again, thank you to Chairman Williams, Ranking Member
Velázquez, and all the Members of the Small Business Committee
for giving me the opportunity to testify on my bill today.
Thank you, and I yield back.
Chairman WILLIAMS. Thank you very much. And self-certifi-
cation is always something that is to be questioned in many cases;
right?
Well, thank you for being here, and thank you for your history
now and what you have done in the past for our country. Thank
you.
All right, last but not least I would like to introduce the last
Member appearing before us today, The Honorable Blake Moore
from the great state of Utah. Representative Moore represents
Utah’s First District consisting of communities spread across north-
ern Utah. Before being elected to Congress, Representative Moore
was a small business owner himself in the healthcare and financial
services industries. He has also had the honor of representing the
United States abroad as a foreign services officer. After his election
in 2021, he was honored to be selected as the first-ever Utah Re-
publican on the Ways and Means Committee. Representative
Moore was also elected to serve as Vice Chair of the House of Re-
publican Conference earlier this month, and he is one of the great
centerfielders of all-time in the congressional baseball games.
Mr. MOORE. That is what we were waiting for.
9

Chairman WILLIAMS. So Congressman Moore, it is good to see
you, and you are recognized for 5 minutes.
STATEMENT OF HON. BLAKE MOORE, A REPRESENTATIVE IN
CONGRESS FROM THE STATE OF UTAH
Mr. MOORE. Thank you, Chairman. Thank you AKA Skipper.
Ranking Member, also. My apologies in advance for all of the base-
ball references that you probably have to endure on this Com-
mittee. To all the Members of the Committee, thank you for allow-
ing me the opportunity to testify you on the critical issues of this
Committee’s jurisdiction.
My remarks are going to be grounded in two major concerns that
I have for the future of our nation and that is maintaining and
growing a strong middle class and the burden that we are going
to have with respect to retirement on our younger generation.
And so in that vein this is what this particular piece of legisla-
tion ultimately tries to accomplish. Now, it is important always for
me to be thinking about the big picture and any type of legislation
that we put forward needs to be concerned with, you know, what
are some of our biggest challenges going forward. And again, a
strong middle class with respect to alleviating the retirement bur-
den that will exist on our next generation.
With respect to small businesses, the State of Utah is the proud
home of over 330,000 small businesses that employ more than
600,000 Utahans across a variety of industries and this work that
this Committee does is vital.
I want to speak briefly about a bipartisan and bicameral legisla-
tion that I am proud to co-lead. It is H.R. 3383, the Employee Eq-
uity Investment Act of 2023. I was joined by Representatives Dean
Phillips, Dusty Johnson, and Krissy Houlahan in introducing this
vital legislation that will support small business owners who aim
to pursue employee-owned arrangements.
The Senate companion was introduced by Senators Marco Rubio
and Chris Van Hollen. And according to the most recent Depart-
ment of Labor data there were nearly 6,500 companies with em-
ployee stock ownership plans (ESOPs) in the United States as of
2021, including 59 ESOPs with approximately 22,000 workers in
my home state of Utah. So Utah-based ESOPs distributed more
than $200 million to employee owners in 2021, bringing greater fi-
nancial security to these Utah families. Again, strong middle class,
allowing for individuals as they pursue their career to have equity
ownership is, in my opinion, one of the best ways to continue to
grow our middle class along with good pro-growth tax policy that
I focus on on Ways and Means.
Going forward, expanding these arrangements would be a good
thing for workers and businesses alike. The Employee Equity In-
vestment Act would do just that by leveraging the Small Business
Administration’s small business investment company to provide
loan guarantees for investment funds committee to expanding em-
ployee ownership such as through ESOPs or worker cooperatives.
These investment funds would provide financing for owners selling
a company to their employee. While also helping maintain current
employee-owned companies, it would achieve this on a no subsidy
basis on behalf of the taxpayer.
10

Access to the capital necessary for ESOP conversion has been a
major barrier to establishing more employee-owned companies.
This legislation will provide a meaningful opportunity to expand
employee-owned structures, and as I have noted, this will benefit
local economies.
Research shows that ESOPs outperform competitors, create high-
er quality jobs that retain employees at a higher rate, provide
greater job security for workers during economic downturns, and
improve the retirement security of employee owners. As almost 50
percent of private businesses in the United States are owned by in-
dividuals approaching retirement age—again, 50 percent of private
businesses in the United States are owned by individuals nearly
going to retire, bolstering employee ownership could help prevent
businesses from shuttering and keep economic activity in our local
communities. In Utah, this so-called ‘‘silver tsunami’’ could affect
25,300 firms representing 280,000 employees and over $50 billion
in revenue.
Lastly, we are proud that the Employee Equity Investment Act
has the support of over 20 industries and community stakeholders.
I look forward to working with the Members of this Committee
to advance this important policy. And again, thank you both again
for hosting this today and allowing for me to speak on this critical
issue again that will strengthen the middle class and provide secu-
rity for retirement for younger generations.
Chairman WILLIAMS. Thank you, Congressman, for being here.
I think you are right on. Being a business person myself it is al-
ways, as businesses get older, who do I pass it on to? And in most
cases your employees, they are the best ones you have got in the
business. They are your employees. They understand it. So thank
you for that vision. I appreciate it very much.
Are there any other Members who would like to be recognized by
the Committee?
Seeing no other comments, I would like to conclude by thanking
all of you, the witness today, for taking time out of your busy
schedule to be here on behalf of small business. Our Committee
will keep your ideas at the top of our mind as we continue to ad-
dress the issues that our nation’s small businesses are facing.
Members will have 5 legislative days to submit statements and
supporting materials for the record.
Without objection, so ordered.
And I do want to, before we leave, say Happy Birthday to Ben
Johnson. If you will all bear with me I am going to sing him Happy
Birthday.
This is your birthday song. It does not last too long. Hey! Happy
Birthday.
Finally, again, I would like to thank the Ranking Member and
her team for making this Committee one of the best there is.
And if there is no further business, this Committee is adjourned.
[Whereupon, at 10:31 a.m., the committee was adjourned.]
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