[House Hearing, 118 Congress]
[From the U.S. Government Publishing Office]


            MARKUP OF COMMITTEE'S BUDGET VIEWS AND ESTIMATES

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                                HEARING

                              BEFORE THE

                      COMMITTEE ON SMALL BUSINESS
                             UNITED STATES
                        HOUSE OF REPRESENTATIVES

                    ONE HUNDRED EIGHTEENTH CONGRESS

                             FIRST SESSION

                               __________

                              HEARING HELD
                           FEBRUARY 28, 2023

                               __________

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            Small Business Committee Document Number 118-003
             Available via the GPO Website: www.govinfo.gov
             
                              __________

                                
                    U.S. GOVERNMENT PUBLISHING OFFICE                    
51-409                     WASHINGTON : 2023                    
          
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                  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

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