The Subcommittee on Investigations, Oversight and Regulations hearing titled, “Oversight of the Office of Advocacy and the Office of the National Ombudsman at the SBA,” originally scheduled to begin at 10:00 A.M. on Tuesday, January 26, 2016 is rescheduled for 1:00 P.M. on Wednesday, February 10, 2016 in Room 2360 of the Rayburn House Office Building.
The Hon. Darryl L. DePriest
Chief Counsel for Advocacy
United States Small Business Administration
Rear Admiral Earl L. Gay, USN (Ret.)
Small Business and Agriculture Regulatory Enforcement Ombudsman
United States Small Business Administration
WASHINGTON – The House Committee on Small Business approved its official views and estimates on the FY2017 budget for the Small Business Administration (SBA) today.
While Committee Chairman Steve Chabot (R-OH) noted bipartisan support for key programs designed to help entrepreneurs, he stressed the need for swift action to correct serious management problems at the SBA related to IT security, access to capital and competition for federal contracts.
“Federal taxpayers and American entrepreneurs must have an efficient and effective SBA. This Committee and its Subcommittees have held a number of hearings which have examined the operations of the SBA. These hearings reveal anything but an efficient and effective operation. Instead, the hearings, multiple investigations by the GAO, examinations by the SBA’s Inspector General and the Committee’s own reviews, reveal an agency that is deeply flawed with misplaced priorities that reduce the ability of small businesses to effectively compete for federal contracts, inhibit their ability to receive needed capital or obtain necessary training to operate their businesses. The views and estimates before us outline the actions needed to correct these problems,” said Chairman Chabot.You can see the Committee’s full views and estimates for SBA here and watch this morning’s full markup here. President Obama’s final budget is expected to be transmitted to Congress next week. Read More
SBA Official: $1 Million System Still Doesn’t Work
Lawmakers Press for Answers Ahead of President’s Budget Request for SBA
WASHINGTON – Lawmakers pressed officials from the Small Business Administration (SBA) today on reports of mismanagement that may affect two key SBA offices which provide business development counseling to entrepreneurs and veterans who want to start a small business. The hearing comes after a report from the Government Accountability Office (GAO) raised questions about agency-wide inefficiency that may extend to SBA’s Office of Entrepreneurial Development and Office of Veterans Business Development.
“The necessity of unauthorized SBA-created initiatives has frequently been questioned on a bi-partisan basis by this Committee,” said Rep. Tim Huelskamp, R-KS, the Chairman of the Subcommittee on Economic Growth, Tax and Capital Access. “In the wake of the recent GAO report detailing SBA management challenges, I am concerned that SBA is continuing to prioritize its wish list rather than ensuring taxpayer dollars are carefully spent on programs with proven performance records.”
Asked by Chairman Huelskamp about a $1 million upgrade to the SBA’s Entrepreneurial Development Management System (EDMS), Tameka Montgomery, Associate Administrator of the Office of Entrepreneurial Development, said the redesigned system was not effective at achieving its purpose: measuring the performance outcomes of programs designed to help entrepreneurs.
“It looks to me like you wasted one million dollars.” Huelskamp responded.
Together, the two SBA offices represented at today’s hearing are primarily responsible for the agency’s entrepreneurial development programs, including a special focus on veteran-owned small businesses. You can read the full testimony here and view today’s hearing here.
The Committee is scheduled to mark up Views and Estimates on President Obama’s FY 2017 Budget for the Small Business Administration this Thursday, February 4, 2016 at 9:00am.Read More
WASHINGTON – House Small Business Committee Chairman Steve Chabot (R-OH) made the following statement after voting to override President Obama’s veto of a measure to repeal the central pillars of ObamaCare.
“As long as ObamaCare remains in effect, America’s small businesses and the people they employ will continue to suffer its outrageous costs and burdensome mandates. We must continue to do everything we can to get this unworkable, unaffordable law off the books as soon as possible and replace it with an efficient health care system that puts patients first and brings down costs.”Chabot pointed to two recent studies from the National Small Business Administration (NSBA) and the National Federation of Independent Businesses (NFIB) which demonstrate the burden Obamacare is placing on America's small businesses as they face major cost increases and struggle to navigate the confusion and complexity of the new system. Read More
Notice of Markup
The Committee on Small Business will hold a markup of the Views and Estimates on the President’s FY 2017 Budget for the Small Business Administration. The markup will be held at 10:00 A.M. on Wednesday, January 27,
First Committee Markup of 2016
Bipartisan Legislation Advances to U.S. House
WASHINGTON – The U.S. House Committee on Small Business today approved bipartisan legislation to expand and improve opportunties for America’s small firms to compete for federal contracts. The measure, H.R. 4341, the Defending America’s Small Contractors Act of 2016, was approved unanimously by the panel and now advances to the full House of Representatives for consideration.
“As a Committee, we’ve worked tirelessly to ensure that federal contracts are awarded appropriately to small businesses in order to maximize competition, create jobs and foster innovation,” said Committee Chairman Steve Chabot (R-OH). “This bipartisan, common-sense legislation will allow America’s small businesses new and improved opportunities to provide value and quality to the taxpayer.”
Specifically, the Defending America’s Small Contractors Act of 2016:
The measure was informed by the Committee’s ongoing efforts to improve contracting opportunities for small businesses across all federal agencies. Chairman Chabot noted that the first Committee markup of 2015 was also on contracting reform legislation and almost all of those provisions have since become law.
You can view the full Committee markup HERE.Read More
VIEW HEARING HERE
WASHINGTON - House Committee on Small Business Chairman Steve Chabot (R-OH) continued the Committee's ongoing probe of management at the Small Business Administration (SBA) today with a hearing focused on the SBA's Access to Capital Offices.
Today's panel examined the SBA's Office of Capital Access (OCA) and Office of Credit Risk Management (OCRM) and whether improvements within these Offices are necessary to ensure sufficient lender oversight and effectiveness in helping small firms obtain capital.
"As the SBA’s lending portfolio continues to grow, it will become even more vital that these two offices work together to establish clear guidance and ensure the integrity of the lending programs,” Chairman Chabot said.“I remain concerned that mismanagement at SBA could well be detracting from the integrity of these key financing programs.”
“We must keep these programs relevant and cost effective for lenders who make loans to small businesses. For 2016 both the 7(a) and 504 programs have returned to zero subsidy.” said Ann Marie Mehlum, the Associate Administrator of Capital Access for SBA. She noted that SBA loans to women have increased by twenty percent over the previous year and loans to veterans increased by 103 percent.
“SBA is particularly interested in balancing the growing credit needs of America’s small businesses with prudent lending, always ensuring that we are meeting the requirements of our mission as defined in the Small Business Act,”said Linda Rusche, Director of Office of Credit Risk Management at SBA. “My mission, and that of the entire Office of Credit Risk Management, is to effectively manage program credit risk, monitor lender performance, and enforce lending program requirements. In short, our mission is to maintain the integrity and viability of the 7(a) and 504 Loan Programs.”
The hearing comes after a blistering report from the Government Accountability Office (GAO) detailing widespread mismanagement at the agency that may affect the ability of small businesses to access capital vital to their success in a timely and efficient manner. SBA Administrator Contreras-Sweet responded to the report and concerns from Committee members about SBA mismanagement last week.
WASHINGTON - House Committee on Small Business Chairman Steve Chabot (R-OH) discussed President Obama's last State of the Union address and what it means for the economy and small businesses with WKRC TV in Cincinnati today.
Watch the Interview HERE
Under Obama, Small Businesses Get Hit Worst and First
WASHINGTON - House Committee on Small Business Chairman Steve Chabot (R-OH) made the following statement about what he expects from President Obama’s final State of the Union address tonight:
“Small business owners tell me a very different story than the one I expect President Obama to tell tonight. When President Obama circumvents Congress and takes executive action, small businesses get hit worst and they get hit first. From the unworkable, unaffordable ObamaCare law to an avalanche of new taxation, regulation and litigation, small businesses have been squeezed by this administration for eight years. I hope the President will put partisanship aside and work with Congress to relieve the burden on our entrepreneurs so they can focus on creating jobs and growing this economy.”Chairman Chabot stopped by the nationally-syndicated Fox News Radio program “Kilmeade and Friends” this morning to discuss with host Brian Kilmeade what the President’s address will mean for the nation’s 28 million small businesses. The interview will be made available here. Read More
WASHINGTON - House Committee on Small Business Chairman Steve Chabot (R-OH) made the following statement after President Obama delivered his final State of the Union address:
“President Obama used his last ever State of the Union address to try to divide the American people and those they have chosen to represent them. Tonight, I hoped to hear President Obama reach out to the elected representatives of the people and commit to working with us. Instead, he talked about the ways he plans to work around us. He may not want to listen to us, but the American people should rest assured that we’re listening to them. That’s why we’re going to work harder than ever for meaningful tax reform, responsible and responsive government, and a safer America. Our families, small businesses, and leaders of the future depend on it.”Read More
WASHINGTON - House Small Business Committee Chairman Steve Chabot (R-Ohio) today announced that Rep. Tim Huelskamp (R-KS) will serve as Chairman of the Subcommittee on Economic Growth, Tax and Capital Access.
“Congressman Huelskamp listens to his constituents first and foremost,” said Chairman Chabot. “That’s what small businesses need from their representatives in Washington, and that is what will make him a great leader for the Economic Growth, Tax and Capital Access Subcommittee.”Huelskamp said of his new Chairmanship: "From family farms, to small manufacturers and our community banks, small businesses are the lifeblood of Kansas. It will be an honor to serve as Chairman of this Subcommittee and focus on issues so important to Kansans' and Americans’ way of life. As Chairman, I will invite small business owners, employees, farmers, bankers, and others to give their insight how the federal government can work better for them, or simply just get out of their way.” Read More
Policymakers Must Match Resolve of Entrepreneurs in 2016
2015 was a testament to the strength and resilience of America’s entrepreneurs.
2016 will be a challenge to policymakers to match their resolve with bold leadership, creative solutions and meaningful reforms.
As Chairman of the House Small Business Committee, I have worked with Members of Congress from both sides of the aisle to find new ways to empower America’s entrepreneurs and remove obstacles in the way of their success.
We must do all we can to help America’s entrepreneurs who dare to dream and put their shoulders to the wheel to turn those dreams into a reality. When they succeed, they create jobs and jump-start economic growth, benefitting our communities, our states and our country.
That’s why the Kauffman Foundation’s Main Street Entrepreneurship Indexfor 2015 could not have come at a better time. These reports contain a number of useful data points that help us better understand what we hear from our small business owners at home. This invaluable input from a variety of sources will better inform the conversation surrounding entrepreneurship in our nation’s capital this coming year.
Small business activity is on the rise despite the strong headwinds of high taxation and overregulation. Our goal as policymakers must be to harness that momentum, build on past successes and unleash the full might of the American entrepreneurial spirit.
This has been an exciting year for our Committee, and I firmly believe that our work can serve as an excellent example of what Washington can accomplish when both sides come together to help small businesses.
Of particular note were two bipartisan bills crafted by our Committee, passed by Congress and signed by the President that can serve as a model for pro-entrepreneur legislative initiatives in 2016.
The first is The Veterans Entrepreneurship Act of 2015 (H.R. 2499), which makes it easier for a veteran or spouse of a veteran to obtain the private capital they need to start a business. The legislation achieves this by waiving the upfront guarantee fee for a Small Business Administration 7(a) express loan at no cost to the taxpayer.
I was proud to introduce this legislation, because veterans have invaluable skills and experience that often translate into success as entrepreneurs and small business owners.This law eliminates an obstacle to that success and will help ensure that the valuable skills of our service members are put to good use post deployment. The second bill is theRecovery Improvements for Small Entities (RISE) After Disaster Act of 2015(H.R. 208), which allows small business owners to re-apply for disaster loans in states affected by natural disasters, including Superstorm Sandy.
The Government Accountability Office and the Office of the Inspector General uncovered significant delays in the Small Business Administration (SBA)’s processing times for disaster recovery assistance loans and serious operational problems within the program. As a result, disaster relief funds were needlessly delayed, arriving so late that families and businesses suffered additional, unnecessary financial losses.
Our legislation provides a remedy for small businesses that were victimized twice, first by a disaster and then by bureaucratic incompetence. And I am pleased to report that SBA disaster centers began reopening this month to help entrepreneurs get back on track in pursuing their dreams.
Progress made in 2015 will set the stage for broader, more comprehensive reform in the coming year.
For example, we must extend and make permanent the temporary provisions in the tax code that are vital to the success of our entrepreneurs. Step by step, Congress is moving closer to providing more tax certainty in these key areas. Just last month, the House passed the PATH (Protecting Americans from Tax Hikes) Act of 2015, which makes permanent the increased limits for the Section 179 expensing, and indexes those limits to inflation starting in 2016. The PATH Act also makes permanent the Research and Development tax credit and extends the bonus depreciation rules through 2019.
I look forward to continuing the conversation in 2016 and translating ideas into actionable policy solutions that will enable America’s entrepreneurs to thrive. I have no doubt the Kauffman Foundation will continue to make invaluable contributions to that conversation.
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