[House Hearing, 118 Congress] [From the U.S. Government Publishing Office] 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 __________ [GRAPHIC NOT AVAILABLE IN TIFF FORMAT] 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 VELAZQUEZ, 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 C O N T E N T S OPENING STATEMENTS Page Hon. Roger Williams.............................................. 1 Hon. Nydia Velazquez............................................. 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 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 [Chairman of the Committee] presiding. Present: Representatives Williams, Luetkemeyer, Stauber, Meuser, Van Duyne, Mann, Ellzey, Molinaro, Alford, Bean, Hunt, LaLota, Velazquez, 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 authorized 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 inflation 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 Administration, 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 efficiently 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. The budget views and estimates presented today for this upcoming 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 Accountability Office. The implementation of these recommendations is vital to ensure the SBA fulfills its mission, and we intend to oversee 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. Velazquez, for 5 minutes for any remarks she may wish to make on the budget views and estimates. Ms. VELAZQUEZ. 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 enacted 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 colleagues 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 programs and oversight at the Small Business Administration. We agree with much of the Majority's views. For example, recommending that SBA take steps to improve its capital access, procurement, and entrepreneurial development programs is prudent governance. Doing so advances SBA's mission to assist small businesses and better protect taxpayers. Another area of agreement is our commitment to conducting vigorous oversight of lending rules to ensure they will actually enhance the current program without causing harm to it or the borrowers. 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 ensure 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. SBA will need significant funding to service these loans over the next 30 years. Federal funding for SBA entrepreneurial development 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 increase 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 personnel 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 regulations 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 estimates to the Budget Committee. SBA remains the government's best resource for small businesses, be it capital access, counseling, or contracting opportunities. The success of the economy depends on small businesses leading the way, and the SBA is central to this. I thank the Chairman again for holding this mark-up. I look forward to working together in a bipartisan way to further foster entrepreneurship. 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 estimates 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. VELAZQUEZ. 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 participation today. 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.] A P P E N D I X [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] [all]