Small Business

Committee on Small Business

Steve Chabot

All Work and No Pay: Change Orders Delayed for Small Construction Contractors

2017/05/25



The Subcommittees on Contracting and Workforce and Investigations, Oversight, and Regulations will meet for a hearing titled, “All Work and No Pay: Change Orders Delayed for Small Construction Contractors.”  The hearing is scheduled to begin at 10:00 A.M. on Thursday, May 25, 2017 in Room 2360 of the Rayburn House Office Building.  

This hearing will examine the effects of change orders on small business contractors and potential solutions to alleviate the financial burden on small businesses caused by agency delay in approval and payment of change orders.

Hearing Documents
1. Hearing Notice
2. Witness List

Witnesses

Mr. Edward DeLisle
Co-Chair, Federal Contracting Group
Cohen Seglias Pallas Greenhall & Furman PC
Philadelphia, PA 
Testimony
Disclosure

Mr. Andy Brown
Vice President
GlenMar Construction
Clackamas, OR
*Testifying on behalf of the Associated General Contractors of America 
Testimony 
Disclosure

Mr. Greg Long
CEO
Long Electric Company
Napa, CA
*Testifying on behalf of the National Electrical Contractors Association
Testimony
Disclosure

Ms. Colette Nelson
Chief Advocacy Officer
American Subcontractors Association, Inc.
Alexandria, VA
*Testifying on behalf of the Construction Industry Procurement Coalition
Testimony
Disclosure

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All Work and No Pay: Change Orders Delayed for Small Construction Contractors

2017/05/25

WASHINGTON – Today, the House Small Business Subcommittee on Contracting and Workforce and the Subcommittee on Investigations, Oversight, and Regulations heard from small businesses and experts about the effects of change orders on small business contractors and solutions to ease the financial burden. 

 “In contracting, a certain degree of reasonable delay is expected when changes are made; however, this becomes inexcusable when federal agencies are unwilling to formally execute change orders and fail to pay for work that has been completed for months – or even years,” said Subcommittee Chairman Steve Knight.  

“During this waiting period, small contractors are often left to finance new work out-of-pocket.  Some of these expenses include: paying employee salaries, taxes, building materials, renting expensive machinery, and any other costs a small construction firm must assume.  Unfortunately, this creates untenable situations and can result in financial distress and in some cases, bankruptcy,” added Knight.

“…the Committee is concerned that agencies may be engaging in unfair negotiation strategies with construction contractors.  One such tactic involves delaying multiple change order payments until the end of a project to try to leverage a better price.  Agencies may also be forcing small businesses to rely on the claims process to litigate their disputes,” said Subcommittee Chairman Trent Kelly.     

Kelly continued, “Small businesses do not have the time or resources to litigate claims and often settle for lesser amounts than owed—rather than face thousands of dollars in legal fees for the potential benefit of being paid pennies on the dollar.” 

From the Experts

“The concern rests with agencies failing to execute change orders and make payments to contractors for months – even years – at a time. Unsurprisingly, this delay causes serious harm to the project schedule and has a deleterious impact upon payment to the prime and subcontractors, especially small businesses which depend upon that cash flow to remain in business,” said Edward T. DeLisle, Co-Chair of the Federal Contracting Group at Cohen Seglias Pallas Greenhall & Furman PC.

Andy Brown, Vice President of Glen/Mar Construction, Inc., asserted, “When we [small construction contractors] don’t pay our bills our utilities shut off, our cars are repossessed, and our houses are foreclosed. However, when the government fails to pay their bills, small businesses go out of business.”

“A change order, in its simplest form, is an agreement to affect a change to the already executed contract. Often, it is necessitated by added, deleted or simply changed work from the plans and specifications already bid and agreed upon. While a change order typically adds value to the contract in exchange for the changed scope, it also can delete funds, change work without affecting price, and add or subtract time to completion of the work,” said E. Colette Nelson, Chief Advocacy Officer at the American Subcontractors Association, Inc.

Small Business Legislative Actions

Earlier this week, Small Business Committee Member Brian Fitzpatrick introduced H.R. 2594 the Small Business Payment for Performance Act of 2017 to ensure that small business federal contractors get paid in a timely manner for change orders.  On May 4th, Small Business Committee Member Don Bacon introduced H.R. 2350 the Small Business Know Before You Bid Construction Transparency Act to create transparency by requiring agencies provide notice to prospective contractors regarding their change order policies and processes.

You can view full video of today’s hearing HERE and full witness testimony HERE.

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Accomplishments and Challenges at the SBA’s Office of International Trade

2017/05/23






The Committee on Small Business will meet for a hearing titled, “Accomplishments and Challenges at the SBA’s Office of International Trade.” The hearing is scheduled to begin at 11:00 A.M. on Tuesday, May 23, 2017 in Room 2360 of the Rayburn House Office Building.  

The Committee will hear directly from the SBA about its ongoing efforts to assist small businesses seeking to engage in the international trading system.

Attachments
1. Hearing Notice
2. Witness List
3. Opening Statement 
4. Hearing Memo

Witnesses 
Mr. Peter J. Cazamias
Associate Administrator
Office of International Trade
United States Small Business Administration
Washington, DC 
Testimony

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Fitzpatrick Introduces Bipartisan Bill to Ensure Small Business Federal Contractors Get Paid

2017/05/23

WASHINGTON – House Small Business Committee Member Rep. Brian Fitzpatrick (R-PA) introduced H.R. 2594 the Small Business Payment for Performance Act to ensure small business federal contractors get paid in a timely manner for change orders.

Specifically, the legislation allows contractors to submit a request for equitable adjustment (REA) - or an increase in fee - to the agency. The contractor may then bill the agency for any actual change order work completed, while the REA is pending. Once the agency receives the REA, it must pay 50% of the billed amount immediately to offset extra costs. Currently, small businesses complete change orders without this protection. 

“For small businesses, federal contracts can lead to good jobs, but can also result in many headaches. While businesses regularly deal with change orders in the private sector, contractors and subcontractors on federal construction projects are often forced to bear a financial burden by the slow process of approval. Some federal agencies routinely delay the approval process until the end of the project. That isn’t fair,” said Fitzpatrick. “The Small Business Payment for Performance Act stands up for small businesses by requiring federal agencies to make interim partial payments to contractors, allowing them to pay their own bills without being delayed until the end of the project. It’s common sense.”

“When federal agencies request unexpected work, it often puts the burden of financing the change orders on the small business – including paying their employees, buying supplies and even paying taxes. We need to ensure small business owners won’t be shackled with extra financial burdens while completing a project, and I appreciate Rep. Fitzpatrick’s leadership on this very important legislation,” said House Small Business Committee Chairman Steve Chabot.

Joining Rep. Fitzpatrick as original cosponsors are Rep. Steve Knight (R-CA), Chairman of the Contracting and Workforce Subcommittee, and Rep. Stephanie Murphy (D-FL), Ranking Member of the Contracting and Workforce Subcommittee.

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SBC Examines How SBA Can Help Small Businesses in the Global Marketplace

2017/05/23

WASHINGTON – Today, the House Small Business Committee heard from the Small Business Administration (SBA) about its ongoing efforts to help small businesses participate in the international marketplace. Peter Cazamias, the Associate Administration of the Office of International Trade, testified on behalf of the SBA.  

“There is no question that foreign markets hold incredible opportunities for America’s small businesses. Ninety-five percent of all consumers live outside the borders of the United States, and yet, only one percent of United States small businesses actually export—about 300,000 of them,” said House Small Business Committee Chairman Steve Chabot.

“If we want to unleash America’s most significant economic force, then we must make it easier for small businesses to participate in the global marketplace,” added Chairman Chabot.

Accomplishments and Challenges at the SBA’s Office of International Trade

“Today, among our over 28 million U.S. small businesses, less than 5% can claim the title of ‘exporter.’ The Office of International Trade is charged, by statute, to improve upon this number. Its stated mission involves: increasing the number of U.S. small businesses that export, and increasing the volume of exports by U.S. small businesses,” said Peter Cazamias, Associate Administrator of the Office of International Trade at the SBA.

You can view the full video of today’s hearing HERE and read the full witness testimony HERE.

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SBA’s 7(a) Loan Program: A Detailed Review

2017/05/17




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On Wednesday, May 17, 2017 at 11:00 a.m., the Committee on Small Business will meet in Room 2360 of the Rayburn House Office Building for the purpose of examining the United States Small Business Administration’s (SBA) 7(a) Loan Program.  As a way to review the program’s ability to help creditworthy small businesses obtain capital, this hearing will offer Members of the Committee the opportunity to hear from SBA officials directly involved in administering the program.     

Attachments
1. Hearing Notice
2. Witness List
3. Hearing Memo
4. Opening Statement
 
Witnesses

Ms. Linda Rusche
Director, Office of Credit Risk Management
Office of Capital Access
United States Small Business Administration
Washington, DC
Testimony

Mr. William Manger
Associate Administrator
Office of Capital Access
United States Small Business Administration
Washington, DC
Testimony

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Small Business Committee Reviews SBA’s 7(a) Loan Program

2017/05/17

WASHINGTON— Officials from the Small Business Administration (SBA) told members of the House Small Business Committee today that they are working diligently to make sure small businesses can get the capital they need to grow their companies while conducting proper oversight of the 7(a) loan program,  SBA’s most common loan program, to maintain a zero subsidy cost to the taxpayer. 

“As the 7(a) Program grows in terms of loan volume, loan amount, and the Congressionally-authorized loan limit, we owe it to the taxpayers and the small businesses involved to conduct vigilant oversight. We have to make sure that American small businesses who are creditworthy but cannot obtain capital elsewhere, remain the priority,” said House Small Business Committee Chairman Steve Chabot.

SBA’s 7(a) Loan Program: A Detailed Review

“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 authorized by the Small Business Act and the Small Business Investment Act,” said Linda Rusche, Director of the Office of Credit Risk Management at the Office of Capital Access at SBA.

“SBA also continues in active discussions with primary federal regulators on such topics as information sharing and vendor management. Through exchange of information we can bring improved oversight and monitoring to our activities and theirs, minimizing duplication and burden,” noted Rusche.

“It is of paramount importance to me and our agency that our 7(a) and 504 flagship programs continue to operate at zero subsidy and remain a great deal for taxpayers. As we look to refine the programs within the Office of Capital Access – the continued zero subsidy status of our programs will absolutely be a major priority for this Administration,” said William Manger, Associate Administrator at the Office of Capital Access at SBA.

This hearing was a follow up to the House Small Business Subcommittee hearing held in March: An Overview of SBA’s 7(a) Loan Program.

You can view full video of today’s hearing HERE and read full witness testimony HERE.

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SBC Urges GAO to Examine SBA’s Office of International Trade’s (OIT) Grant Program

2017/05/17

WASHINGTON –  House Small Business Committee Chairman Steve Chabot (R-OH) sent a letter yesterday to the Honorable Gene Dodaro, Comptroller General of the United States at the Government Accountability Office (GAO) requesting he examine the Small Business Administration’s (SBA) Office of International Trade’s (OIT) State Trade and Export Promotion (STEP) Grant Program.

 “Because it is a grant-making program, the Committee wants to ensure that taxpayer-funded grants are being spent appropriately. In that vein, the Committee has concerns that SBA officials may be misusing funds for international travel under the banner of the agencies export promotion activities,” said House Small Business Committee Chairman Steve Chabot.

The full text of the letter can be found HERE.

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ICYMI: Good News: Increased Health Care Options for Small Businesses?

2017/05/16


WASHINGTON
 - This week, the Centers for Medicare and Medicaid Services (CMS) announced that small businesses can enroll their employees directly in a health insurance company instead of having to do it through Obamacare’s Small Business Health Options Program (SHOP).

Wall Street Journal: White House Closes a Health-Care Enrollment Option  

WSJ Excerpt:

“Our goal is to reduce ACA burdens on consumers and small businesses and make it easier for them to purchase coverage,” Seema Verma, the administrator of the Centers for Medicare and Medicaid Services, said in a statement.

To read the full WSJ article, click HERE.

The House Small Business Committee has been working to increase health care options for small businesses since Obamacare placed unnecessary burdens on them.

In 2015, House Small Business Committee Chairman Chabot sent a letter to Health and Human Services (HHS) Secretary Sylvia Burwell requesting answers after the agency sent incorrect tax information to 800,000 Americans and affected many small businesses in the process.

To read the full letter to HSS Secretary Burwell click HERE.

For more details on the decision from CMS, click HERE.

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ICYMI: Key Witness at House SBC Hearing Featured in Glamour

2017/05/15

 

ICYMI: Key Witness at House SBC Hearing Featured in Glamour

WASHINGTON - On May 3, Carolyn Rodz, Founder and CEO of Circular Board, a virtual accelerator, spoke before the House Small Business Committee to discuss empowering small businesses through the accelerator model.

This week, Carolyn was featured in Glamour, talking about how she and fellow entrepreneur Elizabeth Gore, the entrepreneur-in-residence of Dell Inc, created Alice, the first AI platform for women entrepreneurs. Alice will be a virtual platform where women can find answers to many of their start-up questions including capital, strategy, marketing, and legal needs.

Glamour: Carolyn, you just met with members of the House Small Business Committee to talk about empowering small businesses. Glamour has recently spoken with several congresswomen about what role the government should play, if any, in bolstering women entrepreneurs. I was wondering, based on your experiences in these areas, do you think there's any room for governments both here and around the globe to provide women with the resources they need for successExcerpt from Glamour:

Carolyn Rodz: “It’s important to note that there are commonalities among certain types of companies when we see them being more successful. Being able to show a founder what opportunities are most relevant to them helps them eliminate a lot of the pain points. A lot of times people have struggles raising capital from the venture community, and the fact of the matter is the venture community wants to support women who have the right types of companies. It’s both connecting them to the right resources but also helping them find things beyond traditional venture capital.”

To read the entire Glamour article click HERE.

The Glamour article underscores what Carolyn told the House Small Business Committee recently during Small Business at a hearing titled Empowering Small Businesses: The Accelerator Model.


Carolyn told the Small Business Committee:

“Think of an accelerator as a liaison between a founder, who likely knows much about how to operate their businesses and succeed within their industry, but often little about how to raise capital, get covered by the media, build support within their local community and get the endorsement of the most influential minds in the startup ecosystem.”

“When these founders are armed with a network of experts, introduced to early stage investors, and supported by a community of unique perspectives and varied experiences, they are better prepared to overcome the dismal statistics that currently define female founders,” Carolyn concluded.

For more information on the hearing click HERE.

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Chairman Chabot Visits Local SBDC

2017/05/11


CINCINNATI
—House Small Business Committee Chairman Steve Chabot (R-Ohio) visited the Ohio SBDC this week at the Greater Cincinnati Urban League – Union Institute and University. The event was held to hear more about how the program operates and the effect it’s had on small businesses in the community.

“SBDCs are an important resource for small businesses and entrepreneurs, and we’re lucky to have them in the Cincinnati region. From credit information to business plan advice this program is here to help start-ups get on their feet, and to help small businesses continue to grow,” said Chairman Steve Chabot.

The SBDC program is the largest Entrepreneurial Development resource within the SBA.

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Empowering Small Businesses: Cincinnati Minority Business Accelerator Roundtable

2017/05/10


CINCINNATI—House Small Business Committee Chairman Steve Chabot (R-Ohio) met with members of Cincinnati’s Minority Business Accelerator at a roundtable discussion this week. The event was a follow-up to the May 3rd hearing of the Small Business Committee, Empowering Small Businesses: The Accelerator Model.

“Last week at the Small Business Committee, we heard from entrepreneurs from across the United States who are using their resources and knowledge of business to help other entrepreneurs succeed.

“This week we continued the conversation and brought what we know about business accelerators full circle: entrepreneurs helping other entrepreneurs leads to success and creates new jobs in our communities.  The Minority Business Accelerator is a shining example of this,” said Chairman Steve Chabot.


Chairman Chabot led the discussion with Darrin Redus, who testified on behalf of Cincinnati’s Minority Business Accelerator at the May 3rd hearing.

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Improving the Small Business Innovation Research and Small Business Technology Transfer Programs

2017/05/04


The Committee on Small Business Subcommittee on Contracting and Workforce and the Committee on Science, Space, and Technology Subcommittee on Research and Technology will meet for a joint hearing titled, “Improving the Small Business Innovation Research and Small Business Technology Transfer Programs.” The hearing will take place at 10:00 A.M. on Thursday, May 4, 2017 in Room 2318 of the Rayburn House Office Building.

The Committee on Small Business and the Committee on Science, Space, and Technology are interested in collaborating on legislation making minor adjustments and improvements to the programs in 2017.  The objectives of these initiatives include expansion of commercialization of federally-funded small business research and development, stimulation of technological innovation in the small business sector, and increased use of this community to meet the government’s diverse research and development needs.  Government and private sector witnesses will discuss the programs and suggest potential improvements to help stimulate commercialization rates, modify reporting requirements that improve data collection, and ensure agencies are utilizing all of the tools available to help transition SBIR and STTR technology into larger contracts.

Hearing Documents 
1. Hearing Notice
2. Witness List 
3. Hearing Memo

Witnesses

Panel I

Mr. Joe Shepard
Associate Administrator, Office of Investment and Innovation
United States Small Business Administration
Washington, DC 
Testimony

Mr. John Neumann
Director, Natural Resources and Environment
United States Government Accountability Office
Washington, DC 
Testimony

Panel II

Mr. John Clanton
Chief Executive Officer
Lynntech Inc.
College Station, Texas 
Testimony
Disclosure 

John S. Langford, Ph.D.
Chairman and CEO
Aurora Flight Sciences Corporation
Manassas, VA 
Testimony
Disclosure 

Mr. Ron Shroder
CEO/President
Frontier Technologies, Inc.
Beavercreek, OH 
Testimony
Disclosure 

Ms. Angela M. Albán
President and CEO
SIMETRI, Inc.
Winter Park, FL
Testimony
Disclosure 

Clinton T. Rubin, Ph.D. 
SUNY Distinguished Professor and Chair, Department of Biomedical Engineering
Director, Center for Biotechnology
Stony Brook University
Stony Brook,NY 
Testimony
Disclosure 






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Small Business Committee Statement on Obamacare Repeal

2017/05/04

 

WASHINGTON -- House Small Business Committee Chairman Steve Chabot (R-Ohio) has the following statement regarding House passage of H.R. 1628:

"Americans deserve better than the failing healthcare system they have now. By passing H.R. 1628, the House has acted to remove the crippling burden of Obamacare and give America's 29 million small businesses the freedom and options they need to provide both coverage and care to the millions of families that depend on them."

To understand more about how Obamacare has hurt America's small businesses, click here.

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Empowering Small Businesses: The Accelerator Model

2017/05/03




The Committee on Small Business will meet for a hearing titled, “Empowering Small Businesses: The Accelerator Model.”  The hearing is scheduled to begin at 11:00 A.M. on Wednesday, May 3, 2017 in Room 2360 of the Rayburn House Office Building.  

The hearing will examine how business accelerators help entrepreneurs, startups, and small businesses grow and create jobs, while also offering Members of the Committee the opportunity to hear from organizations that are directly involved in offering private sector resources to small businesses. 

Attachments
1. Hearing Notice
2. Witness List
3. Hearing Memo 

Witnesses 
Ms. Starr Marcello
Executive Director, Edward L. Kaplan New Venture Challenge (NVC)
Polsky Center for Entrepreneurship and Innovation
University of Chicago
Chicago, IL
Testimony
Disclosure

Mr. Darrin M. Redus
Sr. Vice President
Minority Business Accelerator
Cincinnati USA Regional Chamber
Cincinnati, OH
Testimony
Disclosure

Ms. Carolyn Rodz
Founder and CEO
Circular Board
Houston, TX
Testimony
Disclosure

Stephen S. Tang, Ph.D., MBA
President and CEO
University City Science Center
Philadelphia, PA 
Testimony
Disclosure


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Small Business: The Key to Economic Growth

2017/04/27




Chairman Dave Brat has scheduled a hearing of the Committee on Small Business Subcommittee on Economic Growth, Tax, and Capital Access titled, “Small Business: The Key to Economic Growth.”  The hearing is scheduled to begin at 10:00 A.M. on Thursday, April 27, 2017 in Room 2360 of the Rayburn House Office Building.  

Attachments
1. Hearing Notice
2. Witness List

Witnesses

Robert Barro, Ph.D.
John H. Makin Visiting Scholar
American Enterprise Institute
Washington, DC
Testimony
Disclosure 

Mr. Andrew Sherman
Partner 
Seyfarth Shaw LLP 
Washington, DC
Testimony
Disclosure 

Mr. Stephen Moore
Distinguished Fellow, Project for Economic Growth
Institute for Economic Freedom and Opportunity  
The Heritage Foundation
Washington, DC
Testimony
Disclosure

Mr. Chad Stone
Chief Economist
Center on Budget and Policy Priorities
Washington, DC
Testimony 
Disclosure 

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Storm Watch: Making Sure SBA’s Disaster Loan Program is Prepared

2017/04/26




The Committee on Small Business will meet for a hearing titled, “Storm Watch: Making Sure SBA’s Disaster Loan Program is Prepared.” The hearing is scheduled to begin at 11:00 A.M. on Wednesday, April 26, 2017 in Room 2360 of the Rayburn House Office Building.    

Attachments
1. Hearing Notice
2. Witness List
3. Hearing Memo

Witnesses
Mr. James Rivera
Associate Administrator
Office of Disaster Assistance
United States Small Business Administration
Washington, DC
Testimony

Mr. Hannibal “Mike” Ware
Acting Inspector General
United States Small Business Administration
Washington, DC
Testimony

Mr. William Shear
Director
Financial Markets and Community Investment
United States Government Accountability Office
Washington, DC
Testimony

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Scam Spotting: Can the IRS Effectively Protect Small Business Information?

2017/04/06




The Committee on Small Business will meet for a hearing titled, "Scam Spotting: Can the IRS Effectively Protect Small Business Information?" The hearing is scheduled to begin at 10:00 AM on Thursday, April 6, 2017 in Room 2360 of the Rayburn House Office Building. 

Hearing Documents 
1. Hearing Notice
2. Witness List
3. Hearing Memo
4. Opening Statement


Witnesses
The Honorable J. Russell George
Inspector General
Treasury Inspector General for Tax Administration
Washington, DC
Testimony

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Taking Care of Small Business: Working Together for a Better SBA

2017/04/05





The Committee on Small Business will meet for a hearing titled, “Taking Care of Small Business: Working Together for a Better SBA.” The hearing is scheduled to begin at 11:00 A.M. on Wednesday, April 5, 2017 in Room 2360 of the Rayburn House Office Building.

The Honorable Linda McMahon was sworn in on February 14, 2017 as the 25th Administrator of the United States Small Business Administration (SBA). From 1980 to 2009, Administrator McMahon was active in her family’s company, World Wrestling Entertainment, Inc., eventually becoming President and Chief Executive Officer. WWE began as a small regional company and grew into a large, global business. The Committee will hear from Administrator McMahon about her priorities for entrepreneurs and the SBA.

Hearing Documents
1. Hearing Notice
2. Witness List
3. Opening Statement 

Witness List 
The Honorable Linda McMahon
Administrator 
United States Small Business Administration
Washington, DC
Testimony 



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SBA’s Entrepreneurial Development Programs: Resources to Assist Small Businesses

2017/03/30



The Committee on Small Business Subcommittee on Contracting and Workforce will meet for a hearing titled, “SBA’s Entrepreneurial Development Programs: Resources to Assist Small Businesses.” The hearing is scheduled to begin at 10:00 A.M. on March 30, 2017 in Room 2360 of the Rayburn House Office Building.  

The hearing will examine the United States Small Business Administration’s (SBA) Entrepreneurial Development (ED) programs and offer Members of the Subcommittee the opportunity to review the major technical assistance programs, along with the offices at SBA charged with overseeing the programs. 

Hearing Documents
1. Hearing Notice
2. Witness List
3. Hearing Memo
4. Opening Statement

Witness List

Mr. W. Kenneth Yancey, Jr.
CEO
SCORE
Herndon, VA
Testimony
Disclosure

Ms. Antonella Pianalto
President and CEO
Association of Women’s Business Centers
Washington, DC
Testimony
Disclosure

Mr. Charles Rowe
President & CEO
America’s Small Business Development Centers
Burke, VA
Testimony
Disclosure

Mr. Joseph C. Sharpe, Jr.
Director, National Veterans Employment & Education Division
The American Legion

Washington, DC 
Testimony
Disclosure






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Contact Information

2361 Rayburn HOB
Washington, DC 20515
Phone 202-225-5821
Fax 202-225-3587
smbiz.house.gov


Membership

Steve Chabot

OHIO's 1st DISTRICT

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