WASHINGTON—Today, House Committee on Small Business Chairman Steve Chabot (R-OH), released the following statement upon House passage of the FY2019 National Defense Authorization Act (NDAA), which includes small business provisions introduced by the House Committee on Small Business:
“Small businesses play an immeasurable role in keeping America safe and strong. Not only are they the lifeblood of the economy, but they also the lifeblood of our nation’s industrial base,” said Chairman Chabot. “The common sense reforms in this bill will open new avenues for small businesses to flourish in our economy.”
Versions of the following bills were included in FY19 NDAA:
WASHINGTON—Today, House Committee on Small Business Chairman Steve Chabot (R-OH) released the following statement upon House passage of S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act:“As Chairman of the Committee on Small Business, I hear consistently about the negative effects of flawed and burdensome regulations on our community banks and credit unions. It is these small financial institutions that fuel our local economies and give hope to those who want to start their own version of the American dream,” said Chairman Steve Chabot. “The reforms included in this package, which will now be sent to the President’s desk, will put American Main Street businesses on the path to job creation and expansion. I applaud Chairman Hensarling and the Financial Services Committee for spearheading this comprehensive reform package in the House.”
WASHINGTON—Today, House Committee on Small Business Chairman Steve Chabot (R-OH) released the following statement upon the House passage of his bill, H.R. 5044, the Service-Disabled Veterans Small Business Continuation Act:
“America owes a debt of gratitude to not only members of our military, but also their families. My bill ensures that the surviving spouses of service-disabled veteran-owned small businesses are able to retain the service-disabled veteran-owned status of their small business for a period of time after the passing of their veteran spouse,” stated Chairman Chabot. “Most importantly, this bill provides peace of mind for surviving spouses of veteran business owners.”
Chairman Chabot has made veteran small business issues a key pillar for the Committee on Small Business during his tenure. The Committee has held multiple hearings on veterans’ business development and has successfully passed veterans-related bills such as the Veterans Entrepreneurship Act, which has since been signed into law.
The Subcommittee on Contracting and Workforce will meet for a hearing titled, “Hotline Truths II: Audit Reveals Inconsistencies in Defense Subcontracting.” The hearing is scheduled to begin at 10:00 A.M. on May 17, 2018 in Room 2360 of the Rayburn House Office Building.
As part of the Subcommittee’s ongoing efforts to identify waste, fraud and abuse in federal contracting and to ensure that small contractors have the opportunity to compete, the Subcommittee will hear testimony from the Department of Defense Inspector General (DODIG) concerning the results of a recent audit. As a result of hotline complaints, the DODIG has been reviewing contracting activities for compliance with the Small Business Act. The hearing will allow the Subcommittee to learn about the findings of this audit and compare these findings with earlier DODIG audits examining small business subcontracting at other service branches.Attachments
WASHINGTON—Today, Members of the Committee on Small Business Subcommittee on Contracting and Workforce questioned officials from the Department of Defense and the Office of the Secretary of the Army and a government procurement expert as to why statutory provisions outlined in the Small Business Act are being overlooked and undermined in a recent audit of the Army Contracting Commands (ACC) Redstone and Warren.
“The Department of Defense Inspector General (IG) investigated small business subcontracting at two Army Contracting Command, or ACC, locations. The IG’s report, issued on March 19, 2018, found that the ACC has inconsistently complied with statutory requirements requiring the administration of subcontracting plans. This failure resulted in the denial of $914.8 million in small business subcontracting opportunities,” said Subcommittee Chairman Steve Knight (R-CA). “I believe a vibrant small business community is essential to our national security. Many of these businesses serve our country by working with the Department of Defense to provide necessary goods and services to our men and women in uniform.”
“Perhaps most alarming is the IG’s finding that administering subcontracting plans is not a high priority at the ACC. This is a short-sighted view, failing to take into account the enormous cost the loss of qualified, high-performing small business contractors would have on our industrial base.”
What the Audit Found
According to the Department of Defense (DoD) Office of the Inspector General (IG), the ACC has inconsistently complied with statutory requirements regarding the administration of subcontracting plans. This has resulted in the denial of $914.8 million in subcontracting opportunities for small businesses.
“Overall, ACC-Redstone and ACC-Warren generally provided small businesses with the opportunity to compete for prime contracts; however, contracting officials did not ensure that prime contractors provided small businesses adequate subcontracting opportunities,” said DoD Assistant Inspector General Michael J. Roark. “We made a total of 8 recommendations to the Army to address the deficiencies identified during the audit.”
Assistant Inspector General Roark continued, “ACC-Redstone and ACC-Warren contracting officials did not ensure that prime contractors provided small businesses with adequate subcontracting opportunities for 23 (valued at $914.8 million) of 50 contracts (valued at $1.6 billion).”
Mr. Tommy L. Marks, Director of the Army Office of Small Business Programs, said that, “The DoD awarded $59.4B in prime contract dollars to small business firms, during the period of October 1, 2016 through September 30, 2017.” However, Mr. Marks agreed with the findings in the IG report, acknowledging the Army’s deficiencies in the administration of subcontracting plans. He stated his commitment to strengthening the enforcement and compliance of subcontracting plans to the statutory requirements of the Small Business Act.
Tiffany Scroggs, President of the Association of Procurement Technical Assistance Centers (APTAC) in Lacey, WA, stated, “The IG’s findings are consistent with PTAC’s experience across all agencies and buying activities….In the broader context of government acquisitions, expanding access to small business subcontracting opportunities is often not treated as a priority at any level – not by buying offices, not by agency leadership, and not by policy; as a consequence, it is not a priority for prime contractors either. But it should be.
“When we fail to establish and support practices that allow small businesses maximum opportunity for subcontracting, our nation’s supply chain suffers."Click here to read full testimony and here to watch the hearing. Read More
The Committee on Small Business will meet for a hearing titled, “Intellectual Property 101: How Small Business Owners Can Utilize Intellectual Property Protections in Their Businesses.” The hearing is scheduled to begin at 11:00 A.M. on Wednesday, May 16, 2018 in Room 2360 of the Rayburn House Office Building.
Intellectual property plays a vital role in protecting creative and innovative products and ideas. There are four main types of intellectual property: patents, trademarks, copyrights, and trade secrets. Each type of intellectual property has different attributes and criteria that must be met in order to be protected. Unfortunately, many small business owners are not aware that they should protect their innovative products and ideas through intellectual property protections. Those small business owners that are aware of intellectual property rights do not always know how to navigate the intellectual property process, and it can be very expensive. This hearing will examine how small business owners have used intellectual property protections to help their businesses and identify issues they have faced when navigating the intellectual property processes.Attachments
WASHINGTON—Today, Members of the House Committee on Small Business heard from a panel of small business representatives on how small business owners can capitalize and safeguard their hard work and innovation through intellectual property protections.
“Our nation’s small business owners are essential to producing new, creative, and ground-breaking products and ideas that strengthen our nation’s economy,” said Chairman Steve Chabot (R-OH). “However, the process for obtaining intellectual property protections can be daunting even for the most experienced small business owner.... As this Committee knows all too well, most small business owners cannot afford to hire an army of experts to guide them through many processes, leaving them vulnerable to their innovations being stolen both here in the United States and internationally.”
Intellectual Property 101
Intellectual property plays a vital role in protecting small business owners’ innovative ideas and products. The witnesses described their experiences with intellectual property and securing intellectual property rights to grow small businesses.
“Startups and small businesses…rely on the immense value that the patent system provides to entrepreneurs,” said Michal Rosenn, General Counsel at Expa, a startup studio helping the world’s best entrepreneurs build and grow their businesses located in San Francisco, CA. “It is a system that is meant to reward true innovation by allowing a patent holder to reap the benefits of her work while providing a service to the public in sharing her discoveries.”
“Because franchisees are individual owners, ensuring brand protection is key to ensuring the customer’s experience with the brand is of a consistent quality,” said David Graham, CEO of Code Ninjas LLC, in Pearland, TX, testifying on behalf of the International Franchise Association. “The only way to give legal effect to brand protection is through intellectual property protection, specifically trademarks, service marks, trade dress, patents, copyrights, and trade secrets. Significantly, the use of these protections by franchises has had a net-positive effective on the U.S. economy, helping to fuel the economy and spur growth both at home and overseas.”
“Independent songwriters—just like grocery store owners, electricians and florists—are small business people who rely on the clear and effective enforcement of U.S. law in order to succeed,” stated Rick Carnes, President of the Songwriters Guild of America, in Brentwood, TN. “A strong copyright system is absolutely essential to the long-term health of the songwriting profession.”
“Curemark, like almost all other startups, has transitioned through a process of discovery, validation, and scale. We would not exist as a company, we would not have the opportunity to work on this drug treatment if it were not for our intellectual property protection,” said Dr. Joan Fallon, Founder and CEO of Curemark, in Rye, NY. “Our IP forms the basis of our company. It has allowed us to protect our findings, raise money, demonstrate efficacy, and put forth the novel science which hopefully will benefit millions of American children.”
WASHINGTON—House Committee on Small Business Chairman Steve Chabot (R-OH) submitted the following statement for the record today at the House Committee on Veterans' Affairs Member Day:
“As this Committee is aware, our nation’s veterans make up a significant percentage of the American workforce. Many of our nation’s heroes exit military service and choose to begin a new undertaking: opening a business,” said Chairman Steve Chabot. “In fact, there are an estimated 2.5 million nonfarm firms in the United States owned by veterans, and 99 percent of these firms are categorized by the Small Business Administration as small businesses. These businesses employ approximately 5 million workers and account for more than $1 trillion in business receipts.”
He continued, “As Chairman of the House Committee on Small Business, it has been one of my main priorities to increase the opportunities available to veteran-owned small businesses and service-disabled veteran-owned small businesses. Our Committee has conducted oversight hearings and authored legislation to ensure that veteran entrepreneurs have the necessary tools for success.”During the last Congress, the House and Senate passed, and the President signed, the Veteran’s Entrepreneurship Act. In the current Congress, Members of the Committee on Small Business have also introduced two veteran small business bills: H.R. 5044, the Service-Disabled Veterans Small Business Continuation Act, and H.R. 5494, the Projecting Business Opportunities for Veterans Adjustment Act.
WASHINGTON—Yesterday, House Committee on Small Business Chairman Steve Chabot (R-OH) released the following statement when presented the Small Business Council of America 2018 Congressional Award for his significant efforts on behalf of America’s 30 million small businesses:
“I’ve been privileged to serve on the House Committee on Small Business every year that I’ve been in Congress. Since 2015, I’ve had the unique opportunity to be in the front seat of our ever changing economy as Chairman of the Committee. Our nation’s entrepreneurs and innovators embody the American dream every time their ideas become reality,” said Chairman Steve Chabot.“There is no doubt that starting a small business takes true grit and courage. It is an honor to receive this award; but truly, this award belongs to the millions of small business owners across the country that sacrifice so much to grow our economy every day. The fact is, when small businesses are strong, America is strong.” Read More
The Committee on Small Business will meet for a hearing titled, “Ready, Willing, and Able to Work: How Small Businesses Empower People with Developmental Disabilities.” The hearing is scheduled to begin at 11:00 A.M. on Wednesday, May 9, 2018 in Room 2360 of the Rayburn House Office Building.
The purpose of the hearing is to examine the role small businesses have played in employing individuals with differing abilities and the lessons that have been learned.Attachments
WASHINGTON—Today, Members of the House Committee on Small Business heard testimony from a panel of small business owners and experts on developmental disabilities on how those with differing abilities have an essential role in the small business economy.
“One segment of American society that is often overlooked when discussing economic opportunities through new job growth is the special needs community,” said Chairman Steve Chabot (R-OH). “Given the innovation, flexibility, and diversity of small businesses, they can offer inclusive environments for employees with developmental disabilities, and fill jobs vital to operating and expanding their businesses.”
Ready, Willing, and Able to Work
“I have Down syndrome, but Down syndrome never holds me back. I am 22-years old and work hard every day to show the world that individuals with Down syndrome are ready, willing and able to work. Give us a chance and we can be successful,” proclaimed John Cronin, Co-Founder and Chief Happiness Officer of John’s Crazy Socks in Melville, NY. “I founded this business with my dad, Mark. It was my idea and I came up with the name. We have a mission to spread happiness. We work to show what is possible. I love my business.”
What Advocates Are Saying
“While employment opportunities for people with disabilities have substantially improved since the Great Recession, the gap, in comparison to those without disabilities, continues to persist at almost the same rate,” stated Angela Geiger, President and CEO of Autism Speaks in Washington, DC. “However, despite the continued low rates of disability employment, progress is being made. In the last year, employment rates for people with disabilities have increased (up from 32.3 percent in March 2017). Disability employment has increased steadily over the last 24 months. The rate of increase for workers with disabilities is greater than the rate for people without disabilities.”
“Many people with autism possess skills that are valuable for today's economy. Often, they possess intense focus, comfort with numbers and process, and a passion for repetitive, process-intensive tasks,” said David Friedman, Founder and CEO of AutonomyWorks in Downers Grove, IL. “In the next decade, the workplace will be flooded with over half million adults with autism – talented and eager to work. Small businesses generate a large percentage of new jobs across the United States. Small businesses must be a core part of any solution to the employment challenges facing adults with disabilities.”
“We are witness to the dramatic positive impact have a job has on our employees. We see the significant decrease in challenging behaviors, an increase in job skills, dexterity, communication, life skills, and confidence,” said Lori Ireland, President of Ireland Family Foundation and Founder of Extraordinary Ventures, in Chapel Hill, NC. “There is no question that employment is beneficial and a worthy cause to fight for.”Full video can be found here and full testimony can be found here. Read More
WASHINGTON—Today, Chairman Steve Chabot (R-OH), made the following statement upon House passage of 7 bipartisan small business bills:
“I applaud the bipartisan work our Committee and the full House has done to safeguard America’s 30 million small businesses,” said Chairman Chabot. “Whether the issue is cybersecurity, women’s entrepreneurship, or strong agency oversight, the Committee is determined to make sure that small businesses are at the forefront of our national economic conversation. These bills only further our unwavering commitment to America’s risk takers and job creators.”
Below are the bills that have been passed by the House:
WASHINGTON—Today, Members of the House Small Business Committee Subcommittee on Economic Growth, Tax, and Capital Access heard from a panel of small business owners and industry experts on the economic impact of small businesses in the travel and tourism industries.
“According to the United States Travel Association, an impressive 83 percent of businesses in the travel and tourism industries are considered small businesses,” said Subcommittee Chairman Dave Brat (R-VA). “And while small businesses are frequently the ones that take you from destination to destination, or provide American families for a place to stay on the road, the economic impact of the travel and tourism industries positively impacts small businesses in other industries as well.”
The Small Business Angle
“In Virginia, there are 1.5 million small business employees: half of the state’s private workforce. Among our 20,000 leisure and hospitality establishments, two-thirds are businesses with fewer than 20 employees,” said Rita McClenny, President and Chief Executive Officer of Virginia Tourism Corporation, in Richmond, VA. “We are a resilient, self-reliant industry. We recovered faster than any other sector from the economic recession. We thrive when we serve the public well by providing safe, efficient and enjoyable travel experiences.”
“According to our friends at the American Society of Travel Agents, there are approximately 9,400 airline-accredited travel agency firms with over 12,000 retail locations in the United States, employing over 105,000 full-time travel agents,” said Steve Shur, President of Travel Tech in Arlington, VA. “Yet, 98 percent of all travel agencies in the U.S. meet the Small Business Administration’s definition of a small business.”
“The outdoor industry represents a recreation economy that is $887 billion in annual consumer spending with 79 percent of that spending from trips, travel, and tourism. The outdoor recreation economy also supports 7.6 million American jobs. We generate $125 billion in local, state, and federal tax revenue,” said Cam Brensinger, Founder and CEO, NEMO Equipment, Inc., in Dover, NH, testifying on behalf of the Outdoor Industry Association. “When you support the small outdoor businesses spread around this country…you also bolster the health of those local economies.”“Our industry is one of the major factors driving economic expansion, job creation, exports, and prosperity in the United States. From family vacations, to business conferences and meetings, to international visitors, the travel and tourism sector reaches nearly every corner of the country and is a top ten industry in nearly every state,” said Jagruti Panwala, President and CEO of Wealth Protection Strategies in Bensalem, PA, and Vice Chairwoman of the Asian American Hotel Owners Association. “As I meet with hoteliers and hospitality professionals around the country, one issue we discuss frequently is the importance of the new tax law on small businesses. Small business confidence is growing and we are able to create new jobs, hire new employees, increase wages and benefits, make capital improvements, purchase new properties, and expand our businesses.”
The Committee on Small Business Subcommittee on Contracting and Workforce will meet for a hearing titled, “No Man’s Land: Middle-Market Challenges for Small Business Graduates.” The hearing is scheduled to begin at 10:00 A.M. on Thursday, April 26, 2018 in Room 2360 of the Rayburn House Office Building.
This hearing will examine the challenges to growth and success for businesses as they approach the upper limits of their small size standard. As the divide between small and large contractors continues to widen, successfully navigating the middle market becomes an increasingly challenging prospect for advanced small or mid-size businesses. The mid-size issue is a multi-faceted one and this hearing continues the efforts of the Committee to examine this important issue in light of the changing procurement landscape. The Committee also hopes to identify potential legislative solutions which may help extend a pathway to growth for these transitional firms.Attachments
The Committee on Small Business will meet for a hearing titled, “American Infrastructure and the Small Business Perspective.” The hearing, originally scheduled to begin at11:00 A.M., is now scheduled to begin at 11:30 A.M. on Wednesday, April 25, 2018 in Room 2360 of the Rayburn House Office Building.
The Committee will examine the small business perspective of the development and use of our nation’s infrastructure. In particular, the hearing will examine how surface transportation and access to broadband promote economic growth among small businesses. The hearing will also explore some of the challenges that small businesses face without a robust infrastructure system.Attachments
The Committee on Small Business will meet for a hearing titled, “An Examination of the Small Business Administration’s 7(a) Loans to Poultry Farmers.” The hearing is scheduled to begin at 11:00 A.M. on Wednesday, April 18, 2018 in Room 2360 of the Rayburn House Office Building.
The purpose of the hearing is for the Small Business Administration (SBA) Office of Inspector General (OIG) to present the results of its recent evaluation of the SBA’s 7(a) loans to poultry farmers. Members will also have an opportunity to hear how SBA intends to implement the OIG’s recommendations to ensure future 7(a) loans meet the statutory, regulatory, and SBA requirements for eligibility.Attachments
The Committee on Small Business Subcommittee on Economic Growth, Tax, and Capital Access will meet for a hearing titled, “Small Business Retirement Plans and the IRS’ Employee Plans Fee Change.” The hearing is scheduled to begin at 10:00 A.M. on Tuesday, April 17, 2018 in Room 2360 of the Rayburn House Office Building.
The hearing will examine the importance of retirement plans for small businesses and the recent employee plans fee change by the Internal Revenue Service. The hearing will allow Members of the Committee the opportunity to hear directly from the IRS regarding retirement plans and this fee change.Attachments
The Committee on Small Business Subcommittee on Investigations, Oversight, and Regulations will meet for a hearing titled, “Community Support: Entrepreneurial Development and Beyond.” The hearing is scheduled to begin at 11:00 A.M. on Thursday, April 12, 2018 in Room 2360 of the Rayburn House Office Building.
This hearing will examine the role small businesses play in creating thriving communities. The discussion will highlight the ways in which community support is imperative to the success of small businesses. Additionally, the hearing will focus on existing resources available to support the relationship between small businesses and the communities they serve, and explore areas for resource expansion.Attachments
The Committee on Small Business will meet for a hearing titled, “The State of Trade for America’s Small Businesses.” The hearing is scheduled to begin at 11:00 A.M. on Wednesday, April 11, 2018 in Room 2360 of the Rayburn House Office Building.
The hearing will examine the State Trade and Export Promotion (STEP) Grant Program and the federal government’s overall efforts to increase small business exports. Additionally, the Committee will explore recent trade policy developments and their impact on America’s small business exporters. Increasing small business exports continues to be a top priority for both United States lawmakers and the federal government. While nearly 300,000 small businesses are currently exporting to foreign markets, many small businesses face significant challenges in getting their goods and services abroad. The Committee will hear from small businesses and technology service experts on how proposed changes to the tariff schedule and stronger enforcement strategies will impact American manufacturers and service-oriented small businesses.Attachments