Organizational Meeting (House Small Business Committee hearing, February 8, 2023)

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The printed record of the organizational meeting of the House Committee on Small Business for the 118th Congress, held February 8, 2023 and published as Small Business Committee Document Number 118-001. Chairman Roger Williams presides, with Ranking Member Nydia Velázquez, and the meeting is announced to introduce members, approve Subcommittee Chairs, adopt Committee rules and adopt the authorization and oversight plan. Williams says he hopes the Committee can conduct oversight of problems at the SBA during the COVID-19 pandemic. The plan is adopted on a voice vote, and the Committee adjourns at 3:51 p.m.; the appendix reproduces the Rules and Procedures and the Authorization and Oversight Plan.

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“Organizational Meeting (House Small Business Committee hearing, February 8, 2023).” Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/organizational-meeting-house-small-business-committee-hearing-february-1bc98cb7f4/, SHA-256 eb23abcb5984eaa0c7f3d08fda876635166ac1af927ff4d3eb74c2f2a04f5f75.

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ORGANIZATIONAL MEETING

HEARING
BEFORE THE

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

HEARING HELD
FEBRUARY 8, 2023

Small Business Committee Document Number 118–001
Available via the GPO Website: www.govinfo.gov

U.S. GOVERNMENT PUBLISHING OFFICE
51–184 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 Submitted for the record:
Rules and Procedures ....................................................................................... 8
Authorization and Oversight Plan .................................................................. 25

(III)
ORGANIZATIONAL MEETING

WEDNESDAY, FEBRUARY 8, 2023

HOUSE OF REPRESENTATIVES,
COMMITTEE ON SMALL BUSINESS,
Washington, DC.
The Committee met, pursuant to call, at 3:31 p.m., in Room
2360, Rayburn House Office Building, Hon. Roger Williams [Chair-
man of the Committee] presiding.
Present: Representatives Williams, Luetkemeyer, Stauber,
Meuser, Salazar, Ellzey, Molinaro, Alford, Crane, Bean, LaLota,
Velázquez, Mfume, Phillips, Landsman, McGarvey, Gluesenkamp
Perez, Scholten, Thanedar, Davids, and Pappas.
Chairman WILLIAMS. Good afternoon, everybody. We are going
to get started. And let me just say before we get started, as we
start our next hearings that we have coming up, we are going to
be saying the Pledge of Allegiance and a short blessing, just like
we do on the House floor. And so, if any of our colleagues on either
side of the aisle are interested in leading the Pledge or blessing for
a hearing, let my office know. We will get you on the schedule. So
let us begin.
The Committee will now come to order, and without objection,
the Chair is authorized to declare a recess of the Committee at any
time. I want to welcome all our Members, both returning and new,
to the organizational meeting of the Committee on Small Business
for the 118th Congress.
This meeting will proceed as follows. First, Ranking Member
Velázquez and I will introduce our Members on each side. Then we
will introduce and officially approve our Subcommittee Chairs.
Next, we will officially adopt our Committee rules. And finally, we
will officially adopt our Committee’s authorization and oversight
plan.
I want to take a moment to recognize Ranking Member
Velázquez. As you said last year, Ms. Velázquez, small business de-
serve our partnership. And I look forward to working together to
make the small business in this nation better and more prosperous.
And I think we will find out we have much more in common than
we don’t.
As a small business owner myself, I know firsthand the hardship
many small businesses face every single day. As Chairman, I hope
we can come together, conduct meaningful oversight of the many
problems in the SBA during the COVID–19 pandemic and of the
overburdensome regulations coming out of the Biden administra-
tion.
(1)
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Now, before I introduce our new Members, I want to welcome
back Congressman Blaine Luetkemeyer from Missouri, who will
serve as the Vice Chair of this Congress. I was his Vice Ranking
Member last year, and I look forward to continuing to work to-
gether to make America the greatest country in the world and the
best place to do business.
So now I want to introduce the new Majority Members of this
Committee. First, Congressman Tracey Mann from Kansas, Con-
gressman Jake Ellzey from Texas, Congressman Marc Molinaro
from New York, Congressman Mark Alford from Missouri, Con-
gressman Eli Crane from Arizona, Congressman Aaron Bean from
Florida, Congressman Wesley Hunt from Texas, and Congressman
Nick LaLota from New York.
I also want to welcome back our Members returning to the Com-
mittee: Congressman Pete Stauber from Minnesota, who is serving
his third term in Congress and served on two of our Subcommittees
last Congress; Congressman Dan Meuser from Pennsylvania, who
was our Ranking Member of the Subcommittee on Economic
Growth, Tax, and Capital Access last Congress; Congresswoman
Beth Van Duyne from Texas, who served as our Ranking Member
for the Subcommittee on Oversight, Investigations, and Regulations
last Congress; and finally, Congresswoman Maria Salazar from
Florida, who served as our Ranking Member for the Subcommittee
on Contracting Infrastructure last Congress. I am excited to have
you all join us for the 118th, and I am looking forward to all we
will accomplish together as we move forward.
So with that, I will yield to our distinguished Ranking Member
from New York, Ms. Velázquez.
Ms. VELÁZQUEZ. Thank you, Chairman Williams, and con-
gratulations on your new role.
Small businesses make vital contributions to our economy. Not
only do they generate two out of the three net jobs, but they drive
innovation and economic progress throughout our country. How-
ever, the past few years have not been easy for small businesses.
The pandemic brought challenges that were unthinkable a short
time ago. Perseverance, combined with the historic investment in
economic recovery, helped millions of small firms stay afloat.
Since January 2021, there has been over 10.5 million applica-
tions for new businesses. In January 2022, we smashed economic
growth expectations with the addition of more than 500,000 new
jobs—but our work is not done. Looking ahead, we must work to-
gether on this Committee to make sure small businesses are given
the resources and protections they need to prosper. I hope we can
continue our bipartisan tradition during the 118th Congress and
show our constituents and new Members what it is like to make
real change happen.
I now would like to welcome our new and returning Members
and take a moment to introduce the Democratic Members on our
side. Let me begin with the newest Members of our Committee.
First is Mr. Greg Landsman of Ohio. He is a former public school
teacher and faith-based nonprofit leader who served five terms on
the Cincinnati City Council before being elected to Congress. As
someone with deep community connections, he will be a vital re-
source to our efforts to strengthen our nation’s main street.
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Our next freshman Member is Mr. Morgan McGarvey, an attor-
ney from Louisville, Kentucky, with a history and track record of
representing the interests of small businesses. His passion for serv-
ing his community led him to run for Kentucky State Senate in
2012, where he became the minority leader by 2018. His leader-
ship, legislative experience, and work ethic will be invaluable to
this Committee.
I would also like to introduce Ms. Marie Gluesenkamp Perez, a
working mother and small business owner from Southwest Wash-
ington. She started her auto repair and machine shop with her
husband, Dean, with the help of an SBA loan. Her experience with
SBA and running her own business is exactly the type of knowl-
edge we need on the Committee.
Next are two Members from Michigan. First, Ms. Hillary
Scholten, an attorney who clerked with the U.S. Court of Appeals
for the Second Circuit in a special unit focused on immigration. She
is a proven leader that is committed to finding common sense solu-
tions. Secondly, Mr. Shri Thanedar, who immigrated to the U.S. at
age 24 with $20. Discovering a passion for entrepreneurship, he
started several small businesses, and his success with the SBIR
program will be an asset to this Committee.
Last but not least is Mr. Chris Pappas of New Hampshire, who
helps run his family’s 100-year-old restaurant. As a third-term
Member of Congress, he serves on the Committee on Transpor-
tation and Infrastructure and Committee on Veterans Affairs.
I would also like to welcome back some excellent Members from
last Congress: Jared Golden from Maine, Kweisi Mfume from
Maryland, Dean Phillips of Minnesota, Judy Chu from California,
and Sharice Davids of Kansas.
Thank you and I yield back.
Chairman WILLIAMS. Thank you. And I want to also welcome,
of course, all the new Committee to the Republican side and all the
Democratic side. Look forward to working with all of you. Thank
you. And thank you, Ranking Member, for that.
Now, I would like to introduce our five Subcommittee Chairs on
the majority side. Congressman Dan Meuser will Chair the Sub-
committee on Economic Growth, Tax, and Capital Access. Con-
gresswoman Beth Van Duyne will Chair the Subcommittee on
Oversight, Investigations, and Regulations. Congressman Wesley
Hunt will Chair the Subcommittee on Rural Development, Energy,
and Supply Chains. And Congressman Nick LaLota will Chair the
Subcommittee on Contracting and Infrastructure. Congressman
Marc Molinaro will Chair the Subcommittee on Innovation, Entre-
preneurship, and Workforce Development.
So, I want to thank all of you for your willingness to serve in
that capacity. And now I yield to Ranking Member Velázquez to in-
troduce the Ranking Members of the Subcommittees.
Ms. VELÁZQUEZ. Thank you, Mr. Williams. I would like to con-
gratulate the Committee Chairs and Ranking Members. We have
had some bright, dynamic Members join our Committee, and I am
confident this will be a productive session.
The full Committee Vice Ranking Member will be Dean Phillips.
Kweisi Mfume will be the Ranking Member of the Subcommittee
on Oversight, Investigations, and Regulations. Greg Landsman will
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be the Ranking Member of the Subcommittee on Economic Growth,
Tax, and Capital Access. Morgan McGarvey will be the Ranking
Member of the Subcommittee on Innovation, Entrepreneurship,
and Workforce Development. Marie Gluesenkamp Perez will be the
Ranking Member of the Subcommittee on Rural Development, En-
ergy, and Supply Chains. Hilary Scholten will be the Ranking
Member of the Subcommittee on Contracting and Infrastructure.
Chairman WILLIAMS. All right, thank you very much. And I
move that the list of Subcommittee Chairs and Ranking Members
and as set forth in the rosters be approved.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it, and the Chairs and
Ranking Members are appointed. Without objection, the motion to
reconsider is laid on the table.
I would like to now proceed to the Committee rules package. Pur-
suant to clause 2A of House Rule XI, the first order of business is
adoption of the Committee’s Rules of Procedure for the 118th Con-
gress. A copy of the proposed rules has been distributed to each of
you in advance.
Now, the rules package is nearly the same as last Congress, with
a few minor changes. For instance, the name and jurisdiction of
some of the Subcommittees have been modified to better address
the problems facing small business in today’s economy. We clarified
the procedure for deposition and subpoenas to align with the House
rules. We added language to remove remote proceedings to align
with the House rules and to ensure that we are here in person,
working hard for the American people. And I think these changes
will allow us to propel this Committee forward to the benefit of
small businesses nationwide.
So I now recognize Ranking Member Velázquez for her remarks
on the rules.
Ms. VELÁZQUEZ. Thank you, Mr. Chairman. Our Committee’s
rules are not only a vital institutional requirement, but they also
set clear parameters for how we operate. More importantly, they
contain protections, ensuring that all points of view are considered.
It is important for Members on both sides of the aisle to note that,
with a few exceptions, these rules are very similar to those of pre-
vious Congresses.
With that said, I will be remiss if I didn’t mention my concern
over the new rule to grant the Chairman of the Committee unilat-
eral subpoena authority. While I recognize this change is in line
with House rules, our Committee has always required either a ma-
jority vote of the Committee or an agreement between the Chair
and Ranking Member before the Committee issues a subpoena.
Under the new rules, the Chairman has unilateral authority to
issue a subpoena with no debate. Subpoenas should be a measure
of last resort to prevent bringing important work to aid small busi-
nesses to a halt.
I expressed these concerns to the Chairman, and we reached an
agreement to require 24-hour notification to the minority before
issuing a subpoena. Mr. Chairman, I appreciate your under-
standing and respect for honoring the minority’s rights and, most
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importantly, of this Committee’s bipartisanship and bipartisan his-
tory.
Throughout my tenure on the Committee, we have conducted bi-
partisan oversight to hold the SBA to the highest standards, no
matter if we were analyzing regular SBA programs or the COVID
response programs. I look forward to our continued efforts in this
area, and it is my hope that we will work together if a subpoena
is to be issued. A Committee that is run openly and fairly is a Com-
mittee that works and can best achieve its objective.
I yield back, Mr. Chairman.
Chairman WILLIAMS. Thank you, Ms. Velázquez. And without
objection, the draft Committee rules are considered as read and
open for amendment at any point. Does any Member who wish to
be recognized to offer amendments to the proposed Committee
rules?
Okay. If not, I move the proposed rules be adopted as the rules
of the Committee on Small Business for the 118th Congress.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it, and the proposed
rules are adopted. Now, without objection, the motion to reconsider
is laid on the table. Pursuant to House rules, the rules adopted by
the Committee on Small Business for 118th Congress will be pub-
lished in the Congressional Record and made available to Members
and the public on the Committee’s website.
Now, the next order of business before the Committee is the
adoption of our Authorization Oversight Plan for the 118th Con-
gress. House rule X, clause 2D, directs each standing Committee to
no later than March 1 of the first session of a Congress in a meet-
ing that is open to the public adopt its Authorization and Oversight
Plan for that Congress. As required by the rules our plan includes
descriptions of each program or agency that is intended to be au-
thorized in the current Congress or the next Congress, and descrip-
tion of oversight to support reauthorization in the current Con-
gress. In addition, the plan includes recommendations for removing
any such programs or agencies from mandatory to discretionary
funding. The Committee may consider reforms and improvements
to various SBA programs as noted throughout this Authorization
and Oversight Plan. The Committee’s Authorization and Oversight
Plan for the 118th Congress was compiled with input from the
Ranking Minority Member and has been made available in advance
to all Members.
So, now I have recognized myself for 5 minutes to discuss the
plan for this Congress.
As a lifelong small business owner, I know firsthand how often
the smallest changes in Washington, D.C., can have a disastrous
impact on small businesses across America. Over the last 2 years,
overburdensome regulations have harmed small businesses. As
Chairman, I intend to focus this Committee’s attention on re-
sources, conducting rigorous oversight of costly regulatory burdens
that are harming small businesses. Members of this Committee
will be fierce advocates for free market principles and pro growth
policies.
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We will work to highlight the American Dream and the many
success stories of small business owners around the country with
entrepreneurs and innovators from all corners of this country. We
will hear from small business owners across the nation who are on
the front lines of innovation and job creation, and we will inves-
tigate ways the Small Business Administration could improve the
landscape for small business.
We will investigate agencies’ rulemaking process and work to en-
sure that the interests of small businesses are properly considered.
We will work to remove excessive and burdensome regulations to
make it easier for small businesses not only to form, but to stay
in business and to grow. And we will amplify the voice of small
business in Washington, D.C. I know my colleagues on both sides
of the aisle are eager to get to work on behalf of main street Amer-
ica.
With that, I yield to Distinguished Ranking Member Velázquez
for 5 minutes for any remarks she may wish to make on the Over-
sight and Authorization Plan.
Ms. VELÁZQUEZ. Thank you, Chairman Williams. The Over-
sight Plan sets forth a policy framework for our work this Con-
gress. Like in previous years, the plan calls for the robust oversight
of the SBA and other federal small business initiatives, a long tra-
dition that this Committee takes seriously. To that end, this Com-
mittee has forged a bipartisan consensus opposing the creation of
unauthorized pilot programs. Diverting scarce taxpayers’ dollars
away from proven programs can open the door to fraud, waste, and
abuse, something we are all working to minimize.
On the other hand, this Committee has steadfastly supported
statutorily authorized programs, including the Entrepreneurial De-
velopment Programs that offer free or low-cost counseling and
training to small businesses. Lending programs help small busi-
nesses access affordable capital and contracting programs that help
small businesses compete in the federal marketplace.
In the past two Congresses, we held numerous hearings with
GAO and the Office of the Inspector General and made it clear that
safeguarding taxpayers’ dollars was our top priority. In fact, our
oversight efforts increased last Congress, primarily in an effort to
work with the IG and DOJ to hold bad actors accountable for fraud
in COVID programs. In that vein, we enacted two bills that gave
the DOJ and other investigative agencies additional time to pros-
ecute fraud in the PPP and COVID EIDL programs. These laws
were the product of the robust bipartisan oversight conducted by
our Committee.
Additionally, regulatory burden is an important issue for small
businesses, and we must continue our work in this area. We need
to understand how we can make the regulatory process friendlier
to small businesses without undermining essential safeguards that
many of these rules provide. I hope to work with my colleagues to
review SBA rules, particularly the lending rules, to lift the 40-year
moratorium on licensing new small business lending companies to
participate in the 7A program. I have urged SBA to exercise cau-
tion in making substantial changes to this successful program and
to take the time to review the issues and comments to the rule.
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I am fully committed to working with the agency and the new
majority to protect the integrity of all SBA programs and ensure
they serve small business owners as efficiently and effectively as
possible.
With that, I urge Members to approve this oversight plan and I
get back.
Chairman WILLIAMS. Thank you, Ranking Member. And as
noted, the proposed Authorization Oversight Plan has been distrib-
uted to Members in advance. Now, without objection, the plan is
considered as read and open for amendment at any point. Does any
Member wish to be recognized to discuss the draft Authorization
and Oversight Plan?
Okay. Are there any amendments?
All right. If not, I move the Authorization and Oversight Plan of
the Committee on Small Business for the 118th Congress be adopt-
ed.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it, and the plan is
adopted. Now, without objection, the motion to reconsider is laid on
the table. As directed by House rule X the Authorization and Over-
sight Plan will be submitted simultaneously to the Committee on
Oversight and Accountability and the Committee on House Admin-
istration, who will compile and report the plan submitted by the
standing Committees to the House no later than April 1.
So, this concludes today’s business meeting. And I just want to
say, this will be a fun Committee. We are going to get a lot of
things done, and we are really going to help small business and
create jobs and see a lot of results.
So, without objection, Committee staff is authorized to make
technical and conforming changes to reflect the action of the Com-
mittee in adopting the resolution embodying our rules. So, without
objection, the Committee stands adjourned.
Ms. VELÁZQUEZ. Thank you.
Chairman WILLIAMS. Thank you.
[Whereupon, 3:51 p.m., the Committee was adjourned.]
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APPENDIX
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