[House Hearing, 116 Congress]
[From the U.S. Government Publishing Office]
MARKUP OF: H.R. 7903, ``TO AMEND THE SMALL BUSINESS ACT TO ESTABLISH
THE COMMUNITY ADVANTAGE LOAN PROGRAM'' H.R. 8211, ``504 MODERNIZATION
AND SMALL MANUFACTURER ENHANCEMENT ACT OF 2020'' H.R. 8199, ``504
CREDIT RISK MANAGEMENT IMPROVEMENT ACT OF 2020'' H.R. 8229, ``PARITY
FOR HUBZONE APPEALS ACT OF 2020''
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HEARING
BEFORE THE
COMMITTEE ON SMALL BUSINESS
UNITED STATES
HOUSE OF REPRESENTATIVES
ONE HUNDRED SIXTEENTH CONGRESS
SECOND SESSION
__________
HEARING HELD
SEPTEMBER 16, 2020
__________
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Small Business Committee Document Number 116-093
Available via the GPO Website: www.govinfo.gov
__________
U.S. GOVERNMENT PUBLISHING OFFICE
44-270 WASHINGTON : 2021
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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
KWEISI MFUME, Maryland
JUDY CHU, California
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................................................ 3
APPENDIX
Additional Material for the Record:
H.R. 7903, ``To amend the Small Business Act to establish the
Community Advantage Loan Program''......................... 22
H.R. 8211, ``504 Modernization and Small Manufacturer
Enhancement Act of 2020''.................................. 49
H.R. 8199, ``504 Credit Risk Management Improvement Act of
2020''..................................................... 64
H.R. 8229, ``Parity for HUBZone Appeals Act of 2020''........ 73
MARKUP OF: H.R. 7903, ``TO AMEND THE SMALL BUSINESS ACT TO ESTABLISH
THE COMMUNITY ADVANTAGE LOAN PROGRAM'' H.R. 8211, ``504 MODERNIZATION
AND SMALL MANUFACTURER ENHANCEMENT ACT OF 2020'' H.R. 8199, ``504
CREDIT RISK MANAGEMENT IMPROVEMENT ACT OF 2020'' H.R. 8229, ``PARITY
FOR HUBZONE APPEALS ACT OF 2020''
----------
WEDNESDAY, SEPTEMBER 16, 2020
House of Representatives,
Committee on Small Business,
Washington, DC.
The Committee met, pursuant to call, at 10:32 a.m., in Room
2175, Rayburn House Office Building. Hon. Nydia Velazquez
[chairwoman of the Committee] presiding.
Present: Representatives Velazquez, Finkenauer, Golden,
Kim, Crow, Davids, Chu, Mfume, Evans, Schneider, Espaillat,
Delgado, Houlahan, Craig, Chabot, Radewagen, Balderson, Hern,
Hagedorn, Stauber, Burchett, Spano, Joyce, and Bishop.
Chairwoman VELAZQUEZ. Good morning. With a quorum being
present, I call this morning's meeting of the Committee on
Small Business to order.
Without objection, the Chair is authorized to declare a
recess at any time.
I would like to begin by noting some important
requirements. During the covered period as designated by the
speaker, the Committee will operate in accordance with H.R. 965
and the subsequent guidance from the Rules Committee in a
manner that respects the rights of all members to participate.
Standing House and Committee rules and practice will continue
to apply during hybrid proceedings as well.
House regulations require members to be visible through a
video connection throughout the proceeding. Due to the nature
of a markup, it is extremely important that members follow this
rule to ensure a quorum can be established and that members'
votes can be recorded by the clerk.
As a reminder, members can participate in only one
proceeding at a time, so if you have another Committee
proceeding or meeting, please sign off and rejoin later.
If a member wishes to offer an amendment that has not been
pre-filed, we will take a brief recess to allow for its
uploading, printing, and distribution, then resume.
We may also recess briefly to address technical issues in
the event a member cannot be recognized to speak or offer an
amendment.
Finally, for those members physically present in the
Committee room today, we will also be following the health and
safety guidance issued by the attending physician that includes
social distancing and especially the use of masks. I urge
members and staff to wear a mask at all times while in the
hearing room, and I thank you in advance for your commitment to
a safe environment for all.
Welcome to our first hybrid markup. Today, we will be
considering four bipartisan bills. Three of them make important
changes to the lending programs to make it easier for small
businesses to access capital. Another will provide much needed
uniformity for the HUBZone appeals process for protest
determinations.
I would like to begin by taking a moment to thank the
Ranking Member and all the members of the Small Business
Committee for their commitment to small firms during this
particularly tough year. The coronavirus pandemic has
threatened the very existence of millions of small businesses
all across the country. Members of this Committee were front
and center working tirelessly to help small businesses survive.
I commend each and every one of you for your leadership during
these unprecedented times.
For the past 6 months, our Committee has worked around the
clock to make sure the emergency relief reaches struggling
small businesses. While we continue to press for more aid for
those that are bearing the brunt of this pandemic, we must also
focus on SBA's core programs and responsibilities. Today's
markup is a continuation of our work to improve day-to-day
operations of the agency.
Prior to the coronavirus, the Committee held numerous
hearings and roundtables to learn what is working and what
needs to be improved at SBA. The bills we are considering today
are a product of that work and a testament to our ability to
work together day in and day out on behalf of small businesses.
Following in the longstanding tradition of the Committee, all
of the bills are bipartisan. I am proud of the work of our
Committee and am especially grateful to have Ranking Member
Chabot as a pioneer in this process.
With that said, let's turn to the bills under
consideration.
H.R. 7903, to establish the Community Advantage Loan
Program, introduced by Ms. Chu and cosponsored by Mr. Spano.
H.R. 8211, the ``504 Modernization and Small Manufacturer
Enhancement Act of 2020,'' introduced by Ms. Craig and
cosponsored by Mr. Chabot.
H.R. 8199, the ``504 Credit Risk Management Improvement
Act,'' introduced by Mr. Bishop and cosponsored by Ms. Craig.
H.R. 8229, the ``Parity for HUBZone Appeals Act of 2020,''
introduced by Ms. Radewagen and cosponsored by Ms. Houlahan.
I strongly support each of the four bills to be marked up
today.
I would now like to recognize our Ranking Member, Mr.
Chabot, for his opening remarks.
Mr. CHABOT. Thank you, Madam Chairwoman. And thank you for
holding today's markup.
As always, I appreciate your willingness to work with me
and with our staff in such a bipartisan manner. All four of
these bills are led by members of both parties, which is now
the norm in this Committee. We find common ground, and that
makes our Committee so successful. Thank you for that.
I will be brief in my opening as we will discuss each bill
as it is called up.
Our Committee continues to be of critical importance to
this Congress, and most importantly to our country, especially
in these challenging COVID times. Over the past 6 months, our
Committee has been working nonstop on emergency measures to
help our nation's small businesses to literally survive. As we
move forward towards recovery, it is more important than ever
that the SBA's core programs are operating at an optimum level.
Each of the bills before us today improves some aspect of
the SBA programs that small businesses across the country
utilize to help speed up this country's recovery. I support
each of these measures, and I want to thank all of our members,
both Republican and Democrat alike for their hard work on these
bills. Again, I complement you on your bipartisan operation of
this Committee, as we had done when I was Chair, and we have
worked together for many years now. I think it really works for
us and this Committee, and most importantly, for the country.
I thank you, and I yield back.
Chairwoman VELAZQUEZ. Thank you, Mr. Chabot. The gentleman
yields back.
Before we get into the individual bills, are there any
members present who seek recognition for the purpose of making
an opening statement?
Seeing none, we will move to consideration of H.R. 7903, to
establish the Community Advantage Loan Program, introduced by
Ms. Chu and cosponsored by Mr. Spano.
H.R. 7903
The bill codifies the Community Advantage Program known as
``CA,'' which has been on a pilot status since it was initiated
by SBA in 2011.
I would like to now recognize the gentlewoman from
California, Ms. Chu, the sponsor of the bill for an opening
statement.
Ms. CHU. Thank you, Madam Chairwoman. And thank you to my
colleague, Mr. Spano, for his partnership on this important
legislation.
The Community Advantage Program was established as a pilot
at SBA nearly 10 years ago with the goal of meeting the credit,
management, and technical assistance needs of small businesses
in underserved markets. The program provides mission granted
lenders with access to SBA 7(a) loan guarantees to deliver
financing to the disadvantaged small businesses that too often
lack adequate access to capital that their businesses need to
thrive. This is a proven success that reaches significantly
more women and minority-owned businesses than the traditional
7(a) program. That is why I introduced this legislation to
elevate the Community Advantage Program from a pilot to one of
SBA's core lending programs.
I want to thank my colleagues on this Committee for their
support and bipartisan input to make this bill stronger by
increasing targeting of underserved businesses and ensuring
that small businesses in disaster areas can qualify for the
program.
This is so important, especially as wildfires rage through
California, including in my very own district. We are facing a
long and challenging recovery once we defeat the coronavirus,
and Community Advantage can play a bit part in ensuring that no
small businesses are left behind.
Thank you, and I yield back.
Chairwoman VELAZQUEZ. The gentlewoman yields back.
I would like now to recognize the gentleman from Florida,
Mr. Spano, the cosponsor of the bill for an opening statement.
Mr. SPANO. Thank you, Madam Chairwoman and Ranking Member
Chabot for convening the markup today.
I am excited to discuss several important bills and
programs that will continue to assist small businesses from
coast to coast.
As a former small business owner myself, one of my main
motivations for getting involved in politics was to fight for
small businesses, and I am honored to do that today.
I would also like to thank Representative Judy Chu for
working with me on details to improve the Community Advantage
Loan Program.
The program, which was launched by the SBA a decade ago,
aims to assist small businesses in historically underserved
areas. Through a combination of financial assistance and
technical assistance, this program has proven to be a
gamechanger for many small businesses.
In my home state of Florida, there are over 2.5 million
small businesses. However, a remaining challenge for small
businesses is access to capital. Representative Chu and I heard
about this during our Subcommittee on Investigations,
Oversight, and Regulations hearing back in May of 2019 when we
discussed the Community Advantage Loan Program. This program,
which provides low interest loans to small businesses, was
created by the SBA and continues today as a pilot program.
H.R. 7903, which I am a proud cosponsor of, brings
consistency and assurances to program participants as it
reauthorizes the program for 5 more years. H.R. 7903 codifies
and strengthens the program to better serve businesses.
Legislation outlines the mission-oriented program by defining
loan terms and requirements that a certain amount of loans must
be made to small businesses in underserved areas. Additionally,
H.R. 7903 outlines important weekly and annual reporting
requirements for the SBA. These reports will be instrumental as
Congress measures the efficiency and the effectiveness of this
program moving forward. Now more than ever it is time to
support our small businesses. PPP and the EIDL have helped
small businesses keep their doors open and have saved numerous
jobs. H.R. 7903 is another way we can assist these small
businesses in need. My hope is that this bill is a step in the
right direction for small businesses that continue to face
challenges finding access to capital as our nation continues to
recover.
I urge my colleagues to support this bill, and I yield
back.
Chairwoman VELAZQUEZ. The gentleman yields back.
Now I recognize the Ranking Member for his statement.
Mr. CHABOT. Thank you, Madam Chair. I will be brief.
As the country continues to deal with COVID-19, the SBA's
existing toolbox of programs provide capital assistance and
resources to America's main street small businesses. One of the
existing government-guarantee lending programs that aims to
assist small businesses in underserved areas across the country
is the Community Advantage Loan Program. It was originally
created by the SBA without congressional involvement and thus,
currently operates as a pilot program that lacks oversight
benchmarks and comprehensive reporting requirements.
I would like to thank Representative Judy Chu and
Representative Ross Spano for working hard and in a thorough
manner to authorize the Community Advantage Loan Program for 5
years. H.R. 7903 not only delivers certainty, but it
comprehensively outlines the intent of the program. It defines
the rules of the program for lenders and businesses and
requires strong reporting requirements to ensure Congress can
prudently measure the program.
H.R. 7903 will ensure this program meets the needs of
America's small businesses while informing Congress of the
program's performance. Now more than ever, the nation's
smallest firms need financial assistance and technical
assistance. This program delivers both. I commend
Representative Chu and Representative Spano for putting forth
this legislation, and I want to especially thank Representative
Spano for his service on this Committee and this Congress. He
has very aggressively, very well served as the Ranking Member
of the Investigations, Oversight, and Regulations Subcommittee.
He has done a tremendous job doing that, and we appreciate his
service and the things that you have accomplished here will
benefit small businesses for quite some time. Thank you for
doing it in a bipartisan manner as you and Representative Chu
have done while you have worked on this Committee.
I urge my colleagues to support this legislation, and I
yield back.
Chairwoman VELAZQUEZ. Thank you. The gentleman yields back.
Are there any other members who wish to be recognized for a
statement on H.R. 7903?
Mr. MFUME. Madam Chair?
Chairwoman VELAZQUEZ. Who seeks recognition?
Mr. MFUME. Mr. Mfume.
Chairwoman VELAZQUEZ. Mr. Mfume is recognized.
Mr. MFUME. Thank you very much, Madam Chair.
My congratulations to both Ms. Chu and Mr. Spano.
I have a quick question just for clarification.
The bill establishes, I understand, a working group that
will advise the SBA well into the future, and I am just trying
to get clarity on the criteria for the working group. I do not
know if I missed that or not, but if either of the sponsors
could expand on that, that would be great.
Chairwoman VELAZQUEZ. Yes. I would ask the counsel to
explain.
Mr. PELLETIER. Can you describe exactly what you are asking
about the scope of the working group?
Mr. MFUME. I am trying to figure out what is the criteria
to be a part of or to be included in this working since it is
going to be advising the SBA going forward. It is not to second
guess them. I am just trying to get a sense of how it is to be
established.
Mr. PELLETIER. Sure. There are two criteria. Two groups of
folks that can be included. One is geographically diverse
representation of members from among covered institutions
participating in the program. Those are the CA lenders and
representatives from the Office of Capital Access at SBA, the
Office of Credit Risk Management at SBA, and the Office of
Economic Opportunity at SBA.
Mr. MFUME. Is there a term to each one of these persons'
service on that group?
Mr. PELLETIER. The legislation is silent as to the length
of service.
Mr. MFUME. I beg your pardon?
Mr. PELLETIER. The legislation is silent as to the length
of service.
Mr. MFUME. Okay. Is there a rotation? That is the other
point that I was trying to ask about. Are people rotated on and
off periodically, including the fact that they have a length of
service? Are the terms staggered? I am just trying to get a
sense. That is all.
Mr. PELLETIER. That is usually taken care of by the working
group themselves. This legislation is silent as to that point
exactly.
Mr. MFUME. Okay. All right then. Thank you very much. Thank
you, Madam Chair.
Chairwoman VELAZQUEZ. Thank you, Mr. Mfume. The gentleman
yields back.
I now recognize myself.
Many entrepreneurs, especially those from traditionally
undeserved communities, have struggled to access affordable
capital on reasonable terms. The most recent example of this
comes from the Paycheck Protection Program (PPP), where just 12
percent of Black and Latino business owners who apply for PPP
loans reported receiving the amount they asked for. To fill
this gap, a nationwide network of nonprofit mission lenders has
stepped up to help these businesses who have been left behind
by traditional lenders. These lenders include SBA certified
development companies, microlenders, and CDFIs, all of whom are
empowered to further strengthen their communities using this
program. So far, the CA program has been incredibly successful
in meeting its goal of channeling critically needed capital to
underserved markets. According to SBA, this program reaches
significantly more women and minorities than the traditional
7(a) loan program. I have been critical of the 7(a) program
because the portfolio basically shows that they are making the
bigger loans, but loans less than $150,000 are the loans that
are applied for by minority businesses and female business
owners. There is this gap that exists under the 7(a). The 504
is filling that gap and it is clear that in the near decade
since its inception, the CA program has matured into a program
that deserves statutory recognition and status. That is why I
am proud to support today's bill to codify the CA program under
the Small Business Act.
I want to thank Ms. Chu and Mr. Spano for their leadership
on this issue. I encourage all of my colleagues to vote yes.
If there is no further discussion, the Committee will move
to consideration of H.R. 7903.
The clerk will report the title of the bill.
The CLERK. H.R. 7903, to establish the Community Advantage
Loan Program.
Chairwoman VELAZQUEZ. Without objection----
Mr. SPANO. Madam Chair?
Chairwoman VELAZQUEZ. H.R. 79----
Mr. SPANO. Madam Chair, I have not amended it.
Chairwoman VELAZQUEZ. Yes. I will go through that.
Without objection, H.R. 7903 is considered as read and open
for amendment at any point.
Are there any members who wish to offer an amendment?
Mr. SPANO. Madam Chair, I have an amendment at the desk and
apologize for jumping the gun.
Chairwoman VELAZQUEZ. The clerk will report the amendment.
The CLERK. Amendment to H.R. 7903----
Chairwoman VELAZQUEZ. Without objection, the amendment is
considered as read.
The gentleman is recognized for 5 minutes.
Mr. SPANO. Thank you, Madam Chairwoman.
Florida is home to more than 2.5 million small businesses
and 3.5 million small business employees. In my district alone
there are 12,000 small businesses and over 100,000 small
business employees. For years, I, too, ran my own small
business. I know firsthand the challenges that small business
owners face and the grit and determination necessary to
overcome them.
One of the unfortunate challenges that many Florida
businesses combat are the unforeseen impacts of hurricanes, and
other weather-related disasters. Today, the Gulf Coast region
is actually suffering the impact of Hurricane Sally as it moves
ashore, and our prayers are certainly with them today. Natural
disasters leave destruction in their wake, including the dreams
of small business owners. That is why I am offering the
amendment to bring a bit of certainty to small businesses that
find themselves in the middle of uncertain circumstances
recovering from a disaster. My amendment will include
designated disaster areas as an underserved area as it relates
to the Community Advantage Loan Program. This classification
would stand throughout the disaster designation and for a
period of 2 years afterward supporting small businesses
throughout the recovery process.
Additionally, the amendment contains a provision that would
help Congress better understand the role of a small business's
credit score within the Community Advantage Loan Program. In
March of this year, the SBA's Office of Inspector General
released a report outlining a number of issues within the
program, including the role of a small business's credit score.
My amendment, which requires the SBA to report on the
performance of loans based on credit score ranges provides a
clear metric for Congress to use in evaluation of the program.
I appreciate the opportunity to offer these two provisions
in the amendment that would strengthen and improve the
Community Advantage Loan Program, and I yield back.
Chairwoman VELAZQUEZ. Are there any other members who wish
to be recognized for a statement on the amendment?
Mr. CHABOT. Madam Chair?
Chairwoman VELAZQUEZ. Ranking Member Mr. Chabot.
Mr. CHABOT. Thank you. Move to strike the last word.
I want to thank the gentleman from Florida, Mr. Spano, for
offering this amendment that will strengthen the underlying
bill. The amendment contains two important provisions.
First, it makes sure that small businesses that are
impacted by a natural disaster have a place within this program
as they recover and rebuild.
Second, it follows through on the SBA Inspector General
Report by examining the credit scores of small businesses
operating within the program. These changes will enhance the
Community Advantage Loan Program and provide Congress with a
clear view of the program's performance. I know Representative
Spano has worked diligently on this program, including meeting
with me to specifically discuss next steps. I would like to
thank him for his hard work which will benefit people all over
the country but especially in areas which are subject to
natural disasters as parts of Florida are.
I urge my colleagues to support this amendment, and I yield
back the balance of my time.
Chairwoman VELAZQUEZ. The gentleman yields back.
Are there any other members who wish to be recognized for a
statement on the amendment?
Let me recognize myself briefly.
I really appreciate Mr. Spano for offering this important
amendment which will strengthen this program, reaching into
communities impacted by natural disasters. With the rise in
number and strength of natural disasters all across the
country, it is important that this Committee improves SBA
capital access offerings. I support the amendment, and I
encourage all my colleagues to support it as well.
The question is now on Amendment 1 offered by the gentleman
from Florida, Mr. Spano.
All those in favor say aye.
Those opposed say no.
In the opinion of the Chair the ayes have it and the
amendment is agreed to.
Are there any other members who wish to be recognized for
the purposes of offering an amendment?
Mr. CROW. Madam Chair, I have an amendment.
Chairwoman VELAZQUEZ. The gentleman, Mr. Crow, has an
amendment at the desk.
The clerk will report the amendment.
The CLERK. Amendment to H.R. 7903 offered by Mr. Crow.
Chairwoman VELAZQUEZ. Without objection, the amendment is
considered as read.
I recognize the gentleman from Colorado, Mr. Crow, for 5
minutes.
Mr. CROW. Madam Chair, thank you for the opportunity to
speak on H.R. 7903.
Before COVID-19, 83 percent of all entrepreneurs did not
have access to bank loans or venture capital, including SBA
loans. Almost 65 percent of entrepreneurs relied on personal
and family savings for startup capital. Additionally, although
the number of women and minority-owned businesses is growing,
they are less likely to start their own business due to lack of
access to capital, entrepreneurial training, and networks, the
basics of starting a successful enterprise. Entrepreneurs,
particularly those in traditionally underserved communities,
need upfront support to take the risk of starting a business.
The ongoing pandemic has made these disparities even
larger. The economic hardship brought on by the pandemic
continues to exacerbate previously distressed economies, so
creating opportunities for business growth in a post-COVID-19
economy will be critical to revitalize the impacted areas. That
is why the underlying bill is so important. It provides an
avenue for mission-based lenders who tend to have more
relationships and trust in underserved areas to reach more
businesses that are not traditionally eligible for 7(a) loans.
H.R. 7903 offered by my friend and colleague,
Representative Chu of California, includes a stipulation that
lenders operating under the Community Advantage Program must
ensure that at minimum 60 percent of their loans go to small
businesses in traditionally undeserved markets. These are
defined as ``low- to moderate-income community, HUBZone,
enterprise community, opportunity zone, or rural areas.''
My amendment would increase the 60 percent stipulation to
75 percent, which would ensure that lenders under the Community
Advantage Loan Program focus their outreach more closely on
underserved small businesses.
Small businesses in underserved communities are hurting,
and I believe that this bill with my amendment will resonate
with mission-based lenders and make their objective all the
more clear.
I urge my colleagues to support my amendment, and I thank
the Chairwoman for the opportunity to speak on its behalf. I
yield back.
Chairwoman VELAZQUEZ. The gentleman yields back.
Are there any other members who wish to be recognized on
Mr. Crow's amendment?
Mr. CHABOT. Madam Chair?
Chairwoman VELAZQUEZ. Ranking Member Chabot.
Mr. CHABOT. Thank you, Madam Chair.
I want to thank Representative Crow for this amendment and
his efforts to improve the Community Advantage Loan Program.
This amendment focuses this program even more on underserved
small businesses. That is a worthy effort. I support it. I
support this amendment and I yield back.
Chairwoman VELAZQUEZ. Thank you. The gentleman yields back.
Thank you so much, Mr. Chabot.
Again, I will ask all the members to support this important
amendment. It is going to make a large difference for those
minority businesses in underserved communities that are
struggling right now, and I am happy to support it.
The question is now on Amendment 2 offered by the gentleman
from Colorado, Mr. Crow.
All those in favor say aye.
All those opposed say no.
I am sorry; all those that support the amendment say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it and the
amendment is agreed to.
Are there any other members who wish to be recognized for
the purpose of offering an amendment?
Seeing none, the question is now on H.R. 7903 as amended.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair the ayes have it and H.R. 7903
as amended is agreed to.
The question now occurs on reporting H.R. 7903 as amended
to the House.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair the ayes have it.
H.R. 7903 as amended is reported to the House.
Without objection, Committee staff is authorized to correct
punctuation, make other necessary technical corrections and
conforming changes.
Without objection members have 2 business days to file
additional supplemental, dissenting, and minority views.
H.R. 8211
Our second bill today is H.R. 8211, the ``504 Modernization
and Small Manufacturer Enhancement Act of 2020,'' introduced by
Ms. Craig and cosponsored by Ranking Member Chabot. This bill
will help manufacturing firms access the affordable long-term
capital they need to sustain and expand operations and create
jobs.
I will now recognize the gentlewoman from Minnesota, Ms.
Craig, for an opening statement on H.R. 8211.
Ms. CRAIG. Thank you so much, Madam Chairwoman, for
yielding.
I am proud to lead H.R. 8211, the ``504 Modernization and
Small Manufacturer Enhancement Act of 2020,'' and I would like
to thank Ranking Member Chabot, the original cosponsor, for his
work on the bill.
The 504 Loan Program backs long-term loans up to $5.5
million to support investment in major fixed assets such as
land, buildings, heavy equipment, and machinery. The program is
delivered by local, certified development companies (CDCs),
which are private, nonprofit corporations established to
promote economic development within their communities. The
program promotes economic development, job creation and
retention, and expansion of small businesses throughout a
three-part partnership.
In December of 2019, the Subcommittee on Investigations,
Oversight, and Regulations heard from CDC leaders about their
experiences with the program and improvements needed. Some of
the issues mentioned were the lengthy and complex loan closing
process, which has caused third-party lenders to walk away from
potential deals and the occupancy rules governing the program
hindering the financing of projects for multi-story buildings.
H.R. 8211 would make various improvements to the 504
program, making it more accessible to small businesses and
ultimately drive economic development and growth. More
specifically, the bill would increase the maximum loan amount
to $6.5 million, require SBA district offices to partner with
SBA resource partners to provide entrepreneurial development
assistance, decrease project costs for small manufacturers, and
increase the job creation retention requirements streamlining
numerous administrative processes and would create an express
loan program for loans less than $500,000.
In a time of economic process and unemployment, I believe
we need to continue to invest in our small businesses,
specifically small manufacturers, to promote economic
development and the creation and retention of jobs.
Small businesses are the heart of this economy, and with
these improvements, more small businesses will be able to grow
and ultimately contribute to the economic landscape of not only
their communities but of this country.
I urge my colleagues to support H.R. 8211, and Madam
Chairwoman, I yield back.
Chairwoman VELAZQUEZ. The gentlewoman yields back.
Now I recognize the cosponsor of the bill, Mr. Chabot for
an opening statement.
Mr. CHABOT. Thank you, Madam Chair.
Many of the SBA's government guarantee loan programs have a
strong track record of producing results. Included near the top
of this list is the 504 CDC Loan Program. Year in and year out,
the program helps to transform small businesses and their
neighborhoods where they operate. This legislation, which I
have cosponsored along with my democratic colleague, Ms.
Craig--and I want to thank her for her leadership and hard work
on this--will further enhance and modernize the program in
order to assist and serve small businesses across the Nation.
Specifically, the bill expands the public policy goals that
will qualify a small business with a 504 Loan Program. The
legislation also puts a focus on small manufacturers, as Ms.
Craig indicated, by increasing their loan amount and increasing
assistance available to them. Additionally, H.R. 8211
streamlines the 504 Loan Program, the closing process, an
creates an express program for loans below a half million
dollars. These changes will enhance and improve the programs
for many small businesses.
I want to thank again Representative Craig for working with
me on these provisions. I fully support this legislation and
urge my colleagues to do so as well.
I yield back.
Chairwoman VELAZQUEZ. Mr. Chabot yields back.
Are there any other members who wish to be recognized for a
statement on H.R. 8211?
Seeing none, I would like to recognize myself. I just want
to take this opportunity to thank Ms. Craig and Mr. Chabot for
their leadership on this important effort to enhance the
ability of small manufacturers to access long-term growth
capital through this bill.
By streamlining the 504 loan closing process, the bill
makes program compliance easier for CDCs, borrowers, and
especially the third-party lenders who are essential to the 504
loan structure. We know that closing delays have caused loans
to flow through and businesses to lose out on affordable
financing. To that end, Ms. Craig has put forth a strong
proposal to address these issues.
I want to thank my colleagues on this Committee for their
continued support of SBA's 504 Loan Program, and I encourage
all my colleagues to support the bill.
If there is no further discussion, the Committee will move
on to consideration of H.R. 8211.
The clerk will report the title of the bill.
The CLERK. H.R. 8211, the 504 Modernization----
Chairwoman VELAZQUEZ. Without objection, H.R. 8211 is
considered as read and open for amendment at any point.
Does anyone wish to offer an amendment?
Ms. CHU. Madam Chair?
Chairwoman VELAZQUEZ. Who seeks recognition?
The lady from California, Ms. Chu, is recognized.
Ms. CHU. Yes. Thank you, Chairwoman.
I urge my colleagues to support my amendment to H.R. 8211,
the ``504 Modernization Act.''
Chairwoman VELAZQUEZ. I am sorry, Ms. Chu, can you state
for what purpose are you asking recognition?
Ms. CHU. Yes. I am submitting an amendment to H.R. 8211.
Chairwoman VELAZQUEZ. The clerk will report the amendment.
The CLERK. Amendment to H.R. 8211 offered by Ms. Chu of
California.
Chairwoman VELAZQUEZ. Without objection, the amendment is
considered as read.
The gentlewoman is recognized for 5 minutes.
Ms. CHU. Thank you, Chairwoman.
I urge my colleagues to support my amendment to H.R. 8211,
the ``504 Modernization and Small Manufacturer Enhancement Act
of 2020.''
This amendment will make 504 financing available to more
small businesses by offering an alternate job retention goal
and will permanently authorize and expand the 504 refinancing
program. This builds upon my previous legislation, the CREED
Act, which in 2015 revived the refinancing program under 504,
allowing more small businesses to lower costs under existing
real estate and fixed asset tax. In December 2019, I chaired a
hearing on the 504 program in the Subcommittee on
Investigations, Oversight, and Regulations. I commend my
colleagues for introducing this bill to address many of the
concerns that small business owners raised during that hearing.
I look forward to supporting this underlying bill and urge
support for my amendment.
Chairwoman VELAZQUEZ. The gentlelady yields back.
Are there any other members who wish to be recognized for a
statement on the amendment?
Mr. Chabot?
Mr. CHABOT. Thank you, Madam Chair. I will be brief.
I want to thank Representative Chu for working to make
adjustments and improvements in this program. The program has
made a real difference in communities and the changes that we
are entertaining today, including Ms. Chu's amendment, will
further add to the program's mission.
I support the amendment, and I yield back.
Chairwoman VELAZQUEZ. The gentleman yields back.
Are there any other members who wish to be recognized on
this amendment?
Okay. Seeing none, I recognize myself briefly.
I thank the gentlelady from California for offering this
amendment, and I appreciate her commitment to affordable loan
refinancing.
In a world where small business loans are growing more and
more predatory, Congress should be finding ways to enhance the
ability of small businesses to refinance debt on reasonable
terms through the 504 program. Ms. Chu's amendment is a step in
that direction, and I am happy to support her amendment.
The question is now on Amendment 1 offered by the
gentlelady from California, Ms. Chu.
All those in favor say aye.
Those opposed, no.
In the opinion of the Chair, the ayes have it and the
amendment is agreed to.
Are there any other members who wish to be recognized for
the purposes of offering an amendment?
I believe the gentleman from Ohio is seeking recognition.
Mr. CHABOT. Thank you. Yes, thank you.
I want to briefly thank the Chairwoman for her efforts with
this markup, this bill, and also this amendment. Once again----
Chairwoman VELAZQUEZ. You are seeking recognition. You have
an amendment.
The clerk will report the amendment.
The CLERK. Amendment to H.R. 8211 offered by Mr. Chabot----
Chairwoman VELAZQUEZ. Without objection, the amendment is
considered as read.
The Ranking Member is recognized for 5 minutes.
Mr. CHABOT. Thank you, Madam Chair. I was thanking you for
your amendment and working on something else here. We
appreciate the cooperation.
This amendment is straightforward. It increases the
flexibility of small businesses to operate within the 504 CDC
Loan Program.
If a small business cannot meet the job retention or job
creation requirements within the 504 program, they are still
eligible for the program if they meet a public policy goal.
This amendment expands the list of public policy goals to also
include expanding a small business that has 10 employees or
fewer. These small businesses are often in need of the most
support, both when it comes to resources and financial
assistance.
I introduced a bill this past summer that focuses on small
businesses with 10 employees or less in the context of COVID-
19. This amendment is similar and will assist the smallest of
small businesses that hope to utilize the 504 CDC Loan Program.
These small businesses are truly the ``mom and pop'' shops down
on main street. They support millions of jobs and transform
neighborhoods. Now is the time to ensure that they have as much
assistance as possible.
I urge my colleagues to support the amendment and yield
back.
Chairwoman VELAZQUEZ. The gentleman yields back.
Are there any other members who wish to be recognized on
the amendment?
Seeing none, I will recognize myself in support of the
gentleman's amendment.
I really appreciate the Ranking Member's commitment to
small businesses. Especially at this moment through this
pandemic, COVID-19, we have learned how those smaller of the
small businesses have been left behind when it comes to access
to PPP and even EIDL, the Economic Injury Disaster Loan, and
this is why this amendment is so important.
Mr. Chabot's amendment is a common-sense proposal that will
improve the bill under consideration and strengthen the 504
program's ability to reach America's microbusinesses.
I encourage all my colleagues to vote yes.
The question is now on Amendment 2 offered by the Ranking
Member, Mr. Chabot.
All those in favor say aye.
Those opposed, no.
In the opinion of the Chair, the ayes have it and the
amendment is agreed to.
I would like to recognize myself for the purpose of
offering an amendment.
I have an amendment at the desk, and the clerk, please
report the amendment.
The CLERK. Amendment to H.R. 8211 offered by Chair
Velazquez.
Chairwoman VELAZQUEZ. Without objection, the amendment is
considered as read.
I recognize myself for 5 minutes.
This amendment seeks to expand the pool of buildings that
may be purchased by small business owners with a 504 loan.
Current occupancy requirements for financing projects to
purchase an existing building requires business owners to
occupy 51 percent of the building and allows them to lease out
up to 49 percent. This has created challenges for CDCs in
trying to qualify a two-story building for 504 financing.
Industry stakeholders have advocated that a change to 50-50
will greatly simplify the process for purchasing two-story
buildings. Although a change to 50-50 would ease the process
for purchasing two-story buildings with a 504 loan, multi-story
buildings would still be ineligible for 504 financing.
In my district in Brooklyn, the majority of buildings are
not two stories. They tend to be four and five-story walkups,
typically with a small business occupying the first floor.
Under current rules, that small business owner will be required
to occupy multiple stories of the buildings if they thought to
purchase it with a 504 loan. For many small firms that is
simply unobtainable, making the 504 program obsolete for them.
Earlier in the Congress, our Committee held a hearing on
the 504 program, and we heard from a CDC in the Boston area who
said that in the 30 years of being in business, they have only
done 53 loans in the city of Boston. That is because so few
buildings there and in densely populated cities across the
country cannot meet SBA's occupancy requirements. This is a
clear gap in the coverage of the 504 program, and this
amendment helps fill it.
The bottom line here is that we should be making it easier,
not harder, for small businesses to access affordably priced
capital on reasonable terms. That is the entire point of the
SBA loan programs.
I believe this amendment accomplishes exactly that for
small business owners seeking to expand by purchasing the
building they currently occupy regardless of whether they are
in an urban or rural area.
I urge members to support my amendment.
At this point, are there any other members who wish to be
recognized for a statement on the amendment?
Mr. CHABOT. Madam Chair?
Chairwoman VELAZQUEZ. I recognize the Ranking Member.
Mr. CHABOT. Thank you, Madam Chair. I will be brief.
I want to thank the Chairwoman for offering this amendment
which improves the bill. This and the other changes that we are
making will assist numerous small businesses, both in her
district, my district, and districts all over the country to
have a better chance of surviving, operating well, thriving,
and creating more jobs.
Thank you for the amendment. I intend to support it. I
would urge my colleagues to support it and I yield back.
Chairwoman VELAZQUEZ. Thank you. The gentleman yields back.
The question is now on Amendment 3 offered by myself.
All those in favor say aye.
Those opposed, no.
In the opinion of the Chair, the ayes have it and the
amendment is agreed to.
Are there any other members who wish to be recognized for
the purpose of offering an amendment?
Seeing none, the question is now on H.R. 8211 as amended.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it and H.R. 8211
as amended is agreed to.
The question now occurs on reporting H.R. 8211 as amended
to the House.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it.
H.R. 8211, as amended, is reported to the House.
Without objection, Committee staff is authorized to correct
punctuation, make other necessary technical corrections and
conforming changes.
Without objection, members have 2 business days to file
additional supplemental, dissenting, and minority views.
H.R. 8199
The next bill under consideration today is H.R. 8199, the
``504 Credit Risk Management Improvement Act'' introduced by
Mr. Bishop and cosponsored by Ms. Craig. The bill clarifies the
oversight rule of SBA's Office of Credit Risk Management with
respect to the CDCs who deliver the 504 Loan Program.
I would now like to recognize Mr. Bishop, the sponsor of
the bill, for an opening statement.
Mr. BISHOP. Thank you, Madam Chairwoman, and Ranking Member
Chabot for holding this critical markup. Thank you also for the
opportunity to lead the ``504 Credit Risk Management
Improvement Act of 2020'' in cooperation with Representative
Craig and to address it in this hearing.
As our nation grapples with COVID-19, it is important for
Congress and this Committee to consider policy proposals that
bolster the tools available to small businesses. With
approximately $5 billion on lending in fiscal year 2019, the
SBA's 504 CDC Loan Program is a very important economic
development program in operation and a crucial tool for small
business.
The program with its job creation and job retention
requirements has been transformative for neighborhoods and
communities from North Carolina to Ohio to Texas. With a focus
on long-term and fixed-rate financing, it is often a lending
tool that is suited for growing and expanding small businesses
that do not fit traditional and conventional funding models.
In the 9th Congressional District of North Carolina, the
district I represent, we have over 13,000 small businesses.
This represents over 100,000 small business workers. These
small businesses and their employees play an outsized role in
our local and state economy. When these small businesses are
growing, expanding, and creating jobs, our entire economy
flourishes.
That is why it is instrumental for this Committee to
continue its focus on access to capital. I want to thank
Representative Craig for working in a bipartisan manner with me
to strengthen the 504 CDC Loan Program.
The ``504 Credit Risk Management Improvement Act of 2020''
contains numerous provisions that will ensure the program
remains available to small businesses that truly need the SBA's
assistance. The legislation puts a focus on the SBA's oversight
capabilities when it comes to the 504 CDC Loan Program. By
outlining the responsibilities of the Office of Credit Risk
Management and detailing the file review and enforcement
authorities at the SBA, H.R. 8199 will further protect American
taxpayer dollars.
Beyond oversight, the legislation also requires the SBA to
outline clear rules for CDCs and small businesses to follow
when it comes to environmental obligations. Too often we hear
of roadblocks that prohibit small businesses from expanding and
creating jobs. The nation's small businesses, startups, and
entrepreneurs are nimble and quick. When they know the rules of
the road, they will adapt and deliver for customers.
Unfortunately, ambiguous rules get in the way of progress.
This legislation will help remove one of those barriers and
provide clear guidance. Because of the fee structure of the 504
CDC loan program, this program has operated on zero cost to the
American taxpayer. Provisions in my bill will help continue
this trend moving forward.
Small businesses need our help, and I am confident this
commonsense proposal will help thousands of small business
owners and their employees.
I want to again thank Representative Craig for working on
this legislation and thank the Committee for considering it. I
urge my colleagues to vote yes on this bill.
Thank you, Madam Chairman. I yield back.
Chairwoman VELAZQUEZ. Thank you. The gentleman yields back.
Now I recognize the gentlewoman from Minnesota, Ms. Craig,
the cosponsor of the bill, for an opening statement.
Ms. CRAIG. Thank you so much, Madam Chairwoman, for
yielding.
I first want to say thank you to Representative Bishop for
leading this bill and his work on it. I am proud to be the lead
cosponsor for the ``504 Credit Risk Management Improvement Act
of 2020.''
This bipartisan legislation would make necessary updates to
clarify the Office of Credit Risk Management's role in
administering the 504 Loan Program and direct the SBA to issue
rules for compliance with the National Environmental Policy Act
of 1969. This will would provide clarity asked for by CDC
leaders and guarantee that the 504 program can continue to
provide assistance while conserving small business's working
capital.
As I have said before, small businesses are the heart of
our economy. We must continue to improve our programs to best
serve these businesses to ensure economic development and
investment in rural economies.
Thank you so much, again, Representative Bishop and Madam
Chairwoman. I yield back.
Chairwoman VELAZQUEZ. The gentlelady yields back.
Are there any other members who wish to be recognized for a
statement on H.R. 8199?
Mr. Chabot?
Mr. CHABOT. Thank you, Madam Chair.
As a way to strengthen the popular 504 CDC Loan Program,
Representatives Bishop and Craig have worked in a bipartisan
manner to craft H.R. 8199. This legislation bolsters oversight
and requires clear and concise rules for CDCs and small
businesses. With any government guarantee loan program,
oversight is paramount. H.R. 8199 outlines the rules and duties
of the Office of Credit Risk Management as it oversees the 504
Loan Program at the SBA.
Additionally, this legislation requires the SBA to clearly
outline how certain loans must be treated under the National
Environmental Policy Act. Small businesses and certified
development companies require comprehensive information in
order to make daily business decisions.
I would like to thank Representative Bishop and
Representative Craig again for working in a bipartisan manner
to put the nation's small businesses first when it comes to the
504 Loan Program.
I fully support the legislation and urge my colleagues to
support it. I yield back.
Chairwoman VELAZQUEZ. The gentleman yields back.
Are there any other members who wish to be recognized?
If not, I will speak on this bill.
It is an important bill, and I want to thank both Mr.
Bishop and Ms. Craig for your leadership.
To optimize oversight of the 504 program and all the
capital access programs at SBA, SBA established the Office of
Credit Risk Management (OCRM) within the Office of Capital
Access. OCRM conducts reviews of lenders to ensure that they
are complying with program requirements. In 2018, Congress
passed bipartisan legislation to codify the office and gave it
the tools needed to conduct proper oversight and hold
noncompliant lenders accountable. It was Congress's intent that
by boosting OCRM and enhancing its enforcement powers, the
office will minimize the likelihood that the capital access
programs, including the 504 program will face a positive
subsidy.
Therefore, I am pleased Mr. Bishop has introduced this
important piece of legislation that clarifies OCRM's oversight
role and enhances its enforcement powers by shifting loan
closing file review responsibilities to OCRM.
I urge my colleagues to support this legislation.
If there is no further discussion, the Committee will move
to consideration of H.R. 8199.
The clerk will report the title of the bill.
The CLERK. H.R. 8199, the 504 Credit Risk----
Chairwoman VELAZQUEZ. Without objection, H.R. 8199 is
considered as read and open for amendment at any point.
Are there any other members who wish to be recognized for
the purposes of offering an amendment?
Seeing none, the question is now on H.R. 8199.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it.
H.R. 8199 is agreed to.
The question now occurs on reporting H.R. 8199 to the
House.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it and H.R. 8199
is reported to the House.
Without objection, Committee staff is authorized to correct
punctuation and make other necessary technical corrections and
conforming changes.
Without objection, members have 2 business days to file
additional supplemental, dissenting, and minority views.
H.R. 8229
The final bill up for consideration today is H.R. 8229, the
``Parity for HUBZone Appeals Act of 2020,'' introduced by Mrs.
Radewagen and cosponsored by Ms. Houlahan, which ensures the
HUBZone program has the same appeal processes for protest
determinations of the service-disabled, veteran-owned, and the
women-owned small business programs.
I will now recognize the gentlelady from American Samoa,
Ms. Radewagen, the author of the bill, for an opening statement
on H.R. 8229.
Ms. RADEWAGEN. Thank you, Madam Chairwoman.
I would like to thank my colleague, Ms. Houlahan, for
collaborating with me on this important legislation.
The SBA's various small business contracting programs
support different types of entrepreneurs from women and
service-disabled veterans to minorities and the economically
disadvantaged.
By providing these businesses with special federal
contracting, whether a business holds a specific status is
critical to determine whether that company is eligible to
compete for these special contract opportunities. Not only does
the business have a vested interest in obtaining and
maintaining its status, but the federal Government also has an
interest in making sure these special contracts are not awarded
to fraudulent firms. If a company is suspected to be ineligible
for a status it claims to hold, an interested party can protest
the firm's status.
For historically underutilized business zones, or HUBZone
small businesses, the initial protest decision is made by the
HUBZone program director, and if the small business disagrees
with the decision, the small business may appeal the protest
decision to the associate administrator of the Office of
Government Contracting and Business Development (AAGCBD).
This differs significantly from the appeals process
utilized by the SBA's other federal contracting programs.
Currently, most of the SBA's federal contracting programs
authorize the SBA's Office of Hearings and Appeals (OHA) to
hear the appeal. Unlike the AAGCBD who directly oversees all
the SBA's federal contracting program offices, including the
HUBZone program, OHA is an independent office of the SBA.
Leaving the appeal decision to the AAGCBD raises questions of
conflict of interest, whereas housing that process at OHA will
ensure the decision remains separate and independent from any
influence.
Additionally, requiring the AAGCBD to hear these appeals
places the responsibility on the office to have a thorough
understanding of the nuances of SBA's HUBZone eligibility and
size requirements, procurement law, and have the time and
resources to assess the facts of the appellants' case in a
thorough and impartial manner.
The primary role of the AAGCBD is to oversee all of the
SBA's federal contracting programs. This duty takes precedence
over adjudicating HUBZone appeals. In contrast, OHA
administrative judges are primarily tasked with similar
appeals, and thus, are well versed at making these decisions
objectively and impartially. Thus, passage of the bill means
that small businesses will have a greater chance of having a
fair and knowledgeable assessment.
Finally, the AAGCBD's appeals decisions are currently named
in a vacuum. There is no visibility into reasons why a decision
was reached. In contrast, all of OHA's decisions are published
online and easily searchable. These opinions are critical for
small businesses to obtain a greater understanding of the rules
surrounding the eligibility. Therefore, shifting the
responsibility to hear HUBZone appeals to OHA will provide the
public with much needed guidance and transparency.
In sum, H.R. 8229 will bring greater parity, fairness, and
transparency between SBA's HUBZone program and its other
federal programs. I urge my colleagues to support this common-
sense legislation, and I yield back.
Chairwoman VELAZQUEZ. The gentlelady yields back.
I appreciate her work on this issue. Thank you so much for
your commitment on behalf of small businesses.
Are there any other members who wish to be recognized for a
statement on H.R. 8229?
I now want to recognize the Ranking Member.
Mr. CHABOT. Thank you, Madam Chairwoman.
I would like to thank the gentlelady from American Samoa,
Ms. Radewagen, and the gentlelady from Pennsylvania, Ms.
Houlahan, for their leadership on this legislation. Ms.
Radewagen is joining us all the way from American Samoa where I
believe it is something like 4 o'clock in the morning. It just
goes to show how she and other members of this Committee are
willing to work very hard and at very unusual hours of the day
and night to help our nation's small businesses.
As we heard from our colleagues, the current appeals
process for the HUBZone program raises many red flags,
including questions of conflict of interest, lack of
transparency and responsibility, and on and on. The AAGCBD
plays a key role within the leadership structure of the SBA,
and we need to ensure that this official is equipped to
successfully supervise all of the SBA's various federal
contracting programs.
Relieving this official of the duty of hearing HUBZone
appeals will help to do that. Furthermore, the SBA's Office of
Hearings and Appeals is a fully functioning, independent
organization unbeholden to any of the SBA's federal contracting
offices, and OHA administrative judges are trained to hear
exactly these types of matters. By moving HUBZone appeals from
the AAGCBD's purview to OHA through the passage of this bill,
HUBZone small businesses will be able to receive impartial,
fair, and knowledgeable treatment of their case. H.R. 8229
makes a necessary and long overdue correction in the way
HUBZone appeals are approached.
I urge my colleagues to support this commonsense
legislation, and I yield back.
Chairwoman VELAZQUEZ. The gentleman yields back.
Are there any other members who wish to be recognized on
this legislation?
Okay. I would like to recognize myself briefly.
SBA's Office of Hearings and Appeals provides independent
quasi-judicial reviews of certain SBA program decisions. While
OHA hears appeals for protest determinations concerning the
status of a small business as a service-disabled, veteran-owned
small business or a woman-owned small business, unfortunately,
it does not do the same for the HUBZone program. By requiring
SBA to issue regulations granting OHA jurisdiction over these
appeals, H.R. 8229 advances our efforts in this Committee
towards uniformity among SBA's contracting programs. More
importantly, it capitalizes on OHA's expertise and promotes
efficiency. Finally, because OHA opinions are published, this
bill will encourage transparency and consistency in judgments.
I commend Ms. Radewagen and Ms. Houlahan for working
together on this legislation, and I urge colleagues to support
the bill.
If there is no further discussion, the Committee will move
on to consideration of H.R. 8229.
The clerk will report the title of the bill.
The CLERK. H.R. 8229----
Chairwoman VELAZQUEZ. Without objection, H.R. 8229 is
considered as read and open for amendment at any point.
Does anyone wish to offer an amendment?
Seeing none, the question is now on H.R. 8229.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it and H.R. 8229
is agreed to.
The question now occurs on reporting H.R. 8229 to the
House.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it.
H.R. 8229 is reported to the House.
Without objection, Committee staff is authorized to correct
punctuation, make other necessary technical corrections and
conforming changes.
Without objection, members have 2 business days to file
additional supplemental, dissenting, and minority views.
I thank all the members for their participation today.
If there is no further business to come before the
Committee, we are adjourned. Thank you.
[Whereupon, at 11:40 a.m., the committee was adjourned.]
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