[House Hearing, 116 Congress] [From the U.S. Government Publishing Office] COMMITTEE'S BUDGET VIEWS AND ESTIMATES FOR FISCAL YEAR 2021 ======================================================================= HEARING before the COMMITTEE ON SMALL BUSINESS UNITED STATES HOUSE OF REPRESENTATIVES ONE HUNDRED SIXTEENTH CONGRESS SECOND SESSION __________ HEARING HELD MARCH 4, 2020 __________ [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Small Business Committee Document Number 116-077 Available via the GPO Website: www.govinfo.gov ______ U.S. GOVERNMENT PUBLISHING OFFICE 39-947 WASHINGTON : 2020 HOUSE COMMITTEE ON SMALL BUSINESS NYDIA VELAZQUEZ, New York, Chairwoman ABBY FINKENAUER, Iowa JARED GOLDEN, Maine ANDY KIM, New Jersey JASON CROW, Colorado SHARICE DAVIDS, Kansas JUDY CHU, California MARC VEASEY, Texas DWIGHT EVANS, Pennsylvania BRAD SCHNEIDER, Illinois ADRIANO ESPAILLAT, New York ANTONIO DELGADO, New York CHRISSY HOULAHAN, Pennsylvania ANGIE CRAIG, Minnesota STEVE CHABOT, Ohio, Ranking Member AUMUA AMATA COLEMAN RADEWAGEN, American Samoa, Vice Ranking Member TROY BALDERSON, Ohio KEVIN HERN, Oklahoma JIM HAGEDORN, Minnesota PETE STAUBER, Minnesota TIM BURCHETT, Tennessee ROSS SPANO, Florida JOHN JOYCE, Pennsylvania DAN BISHOP, North Carolina Melissa Jung, Majority Staff Director Justin Pelletier, Majority Deputy Staff Director and Chief Counsel Kevin Fitzpatrick, Staff Director C O N T E N T S OPENING STATEMENTS Page Hon. Nydia Velazquez............................................. 1 Hon. Steve Chabot................................................ 2 APPENDIX Additional Material for the Record: Committee's Views and Estimates.............................. 4 COMMITTEE'S BUDGET VIEWS AND ESTIMATES FOR FISCAL YEAR 2021 ---------- WEDNESDAY, MARCH 4, 2020 House of Representatives, Committee on Small Business, Washington, DC. The Committee met, pursuant to call, at 11:19 p.m., in Room 2360, Rayburn House Office Building. Hon. Nydia Velazquez [chairwoman of the Committee] presiding. Present: Representatives Velazquez, Golden, Kim, Crow, Davids, Chu, Evans, Schneider, Espaillat, Delgado, Houlahan, Chabot, Balderson, Hern, Stauber, and Spano. Chairwoman VELAZQUEZ. Good morning. The Small Business Committee will come to order. Today's order of business is to consider the views and estimates of the Committee on Small Business for Fiscal Year 2021. These resources are a critical first step in helping entrepreneurs launch and grow their small businesses. The purpose of this meeting is to set our priorities and expectations for fiscal year 2021 to ensure the Small Business Administration has the funding necessary to modernize and strengthen its core programs on behalf of America's entrepreneurs. While the economy has appeared healthy, much uncertainty remains now with the coronavirus outbreak. Just last week, the stock market plunged, suffering some of the worst losses since the 2008 Financial Crisis. Small businesses throughout the country currently face looming supply chain disruptions while consumer confidence is diminishing. As the virus spreads, it has the potential to significantly dampen global economic activity both here and abroad. With the threat to the economy, more entrepreneurs and small business owners are looking to the Small Business Administration and its many programs for help. SBA core programs ensure small employers and aspiring entrepreneurs have the counseling, financing, and access to the federal marketplace they deserve. Ensuring this program has robust levels of funding is operating effectively are a top priority for the Committee. Today's views and estimates reiterate the Committee's longstanding position to prioritize core programs like the Small Business Development Centers and the 7(a) Loan Program, rather than expending critical funding on untested agency- initiated programs. To that end, the views and estimates, proposals, reports, increase levels of funding for the entrepreneurial development programs which provide free or low-cost counseling and training to nearly 1 million entrepreneurs each year. The Committee enacted bipartisan legislation last year to modernize the programs and maximize their effectiveness. Fully funding SBA's entrepreneurial development programs will strengthen the SBA's ecosystem and allow SBA to provide valuable counseling and training to more small businesses. We must also ensure Main Street businesses have access to affordable capital which plays a vital role in their success. Affordable capital is the key to unlocking opportunities to grow and create new jobs in the local economy, and this proposal provides the resources and funding levels to do just that. Finally, we have to work together to level the playing field in federal procurement opportunities for socially and economically disadvantaged business owners. We can achieve this through a greater emphasis on hiring more contracting personnel and providing them with adequate training in order to effectively assist small contractors competing in the $500 billion federal marketplace. The views and estimates we are proposing will breathe new life into the SBA. More importantly, it will provide tangible benefits to small businesses and make sure taxpayers get a positive return on their investment. At this point, I will yield to the Ranking Member, Mr. Chabot, for any comments he may have on the Committee's views and estimates. Mr. CHABOT. I want to first thank Chairwoman Velazquez and her staff for again working in a bipartisan manner on the Committee's budget views and estimates on the Small Business Administration's fiscal year 2021 Budget. I appreciate her willingness to work collegially as we meet our responsibilities to America's small businesses. The SBA and its programs can be essential to helping small firms expand, create jobs, and grow our economy. The SBA helps many small businesses to access capital, provides counseling and training, and links entrepreneurs with mentors. In this committee, it is our responsibility to provide our views and estimates to the Committee on the budget to ensure that the SBA's programs are working efficiently and effectively on behalf of all small businesses all across this Nation. We must insist that the programs are transparent and make the best use of taxpayer dollars. Every small business starts as an idea. America is a Nation of creators and investors and risk-takers. Our economy was structured to be driven by entrepreneurs, and in fact, most net new job growth is from startups and new businesses. In fact, about 70 percent of the new jobs created in the American economy are created by America's small businesses. We are fortunate to have the SBA's new administrator, Jovita Carranza, to lead the agency into the future. She has a distinguished record both in the private sector, as well as having been the deputy SBA administrator under President George W. Bush. We look forward to seeing her vision in action. The Chairwoman and I very often agree, but there are times when we do not fully agree. And thus, even though I will be voting for the Committee's budget views and estimates, I will also be offering a motion later to submit additional views and estimates from the minority members of this Committee. And again, I want to thank the Chairwoman for working in a bipartisan manner with us, both staff working together very well. And I yield back. Chairwoman VELAZQUEZ. The gentleman yields back. I thank him for his remarks. Are there any other Members who wish to be recognized for a statement on the views and estimates of the Committee for fiscal year 2021? Seeing no Members, the Committee now moves to consideration of the views and estimates. The clerk will read the title of the document. The CLERK. Views and estimates of the Committee on Small Business---- Chairwoman VELAZQUEZ. I ask unanimous consent that the views and estimates be considered as read and open for an amendment in its entirety. Does any Member seek recognition for the purpose of offering an amendment? Seeing no amendments, we will move on. The question is on adopting the views and estimates on the priorities of the Committee for fiscal year 2021. All those in favor, say aye. Those opposed, no. In the opinion of the chair, the ayes have it. The ayes have it, and the views and estimates are agreed to. I will now recognize the Ranking Member for the purpose of making a motion. Mr. CHABOT. Thank you, Madam Chairwoman. And I would move that the minority members of the Committee be permitted to file additional views and estimates on the budget for fiscal year 2021. Chairwoman VELAZQUEZ. Without objection, so ordered. Mr. CHABOT. Thank you. Chairwoman VELAZQUEZ. The Committee is authorized to make technical and grammatical corrections to the views and estimates. We are adjourned and the Committee will stand in recess for a few moments to prepare for the committee hearing. Thank you. [Whereupon, at 11:26 a.m., the committee was adjourned.] A P P E N D I X [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]