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
WASHINGTON – Today, Chairman Steve Chabot (R-OH) and the House Committee on Small Business heard from agency officials from the United States Small Business Administration (SBA) on the SBA Office of the Inspector General’s (OIG) March 6, 2018 report entitled, “Evaluation of SBA 7(a) Loans Made to Poultry Farmers.”
“The subject of today’s hearing is further justification that more oversight of the SBA is needed to ensure that taxpayer dollars are preserved for small businesses that cannot qualify for traditional lending,” said Chairman Chabot. “A recent evaluation by SBA’s Office of Inspector General confirmed what the Committee had already suspected: SBA may have allowed nearly $2 billion of ineligible guaranteed 7(a) loans to non-small businesses. OIG’s findings are troubling, as it appears that many small poultry farmers were unable to operate their businesses independently, thus violating SBA’s affiliation rules and other regulations.”
Increasing Access to Capital While Protecting Taxpayer Dollars
Over the last few months, the Committee has heard from experts and small business owners on the hardships small businesses face in today’s economy. Despite the recent economic recovery, many are concerned about the lack of access to capital.
“We found that 7(a) loans made to growers did not meet regulatory and SBA requirements for eligibility. …Therefore, SBA and lenders approved 7(a) loans to growers that appear ineligible under SBA size standard regulations and requirements,” stated Mr. Hannibal “Mike” Ware, Acting Inspector General at the United States Small Business Administration in Washington, DC.
“The [SBA] Office of Capital Access is currently evaluating our policies to determine if any modifications are needed. Soon after joining the SBA, I began an examination of various loan policies and practices in my office,” said Mr. William Manger, Associate Administrator of the Office of Capital Access at the United States Small Business Administration in Washington, DC. “As we continue to conduct our review of poultry lending, we want to hear from all stakeholders, and I would certainly welcome the views of this Committee and your Senate counterparts.”
In an effort to ensure the integrity of the 7(a) Loan Program for small businesses that truly need SBA’s capital, House Small Business Committee Chairman Steve Chabot, along with Ranking Member Nydia Velázquez (D-NY), introduced H.R. 4743, the Small Business 7(a) Lending Oversight Reform Act of 2018. The bill would institute reforms and increase lender oversight.
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
Today marks the end of an era—an era of high taxes and a complicated tax code that has burdened small business owners and hardworking Americans for decades.
Today will be the last day Americans file their taxes under the old and broken tax code.
That’s right, because the Republican Congress worked with President Trump and his Administration, Congress overhauled the 31-year-old tax code and unleashed an economic revival across our nation.
American small businesses employ about half the private sector workforce and create seven out of every ten new jobs. Time and time again, we are hearing the praises of the Tax Cuts and Jobs Act from Silicon Valley to Main Street.
Here are some stories from small business owners across our great land:
When Julia Mueller, an employee of First Communications in Fairlawn, Ohio, learned her employer was going to give $1,000 bonuses to her and her co-workers this year, she had an immediate reaction: Tears.
Sheffer Corporation’s CEO and President, Jeff Norris, from Blue Ash, Ohio, credits the Tax Cuts and Jobs Act for being able to give all 126 employees $1,000 bonuses.
Wichita Railway Services’ CEO Bob Aldrich, in Wichita, Kansas, praised the big bonuses the company's employees received due to the tax reform law.
"This is an opportunity we haven't seen during my career, as far as cuts in corporate tax rates," said Executive Vice President of F&M Bank Neil Hayslett in Harrisonburg, Virginia. "Rather than just banking all that, so to speak, we wanted to share it with the employees."
Tax reform benefits are reaching ordinary workers at Dynamic Fasteners, in Raytown, Missouri. "We all benefit from the economy being better," said Solomon Essex, from Raytown, who's worked for the company for 12 years. "For the simple fact that it improves life. It improves everybody's life at the same time. The boost in the economy is a great thing.”
“The new tax law lowers taxes on our business, which gives us the ability to give back to our employees and invest in our technology infrastructure and partner relationships,” says Warren Chaiken, President and CEO, of Almo Corporation in Philadelphia, Pennsylvania.
Donna Mincey, President and CEO of Mincey Marble in Gainesville, Georgia, said, “We have 300 employees and we’re giving $1000 bonuses to the people that have been there 10 years or more, $900 to 9 years, and $800 to 8 year employees and so on. People were jumping up and down, they’re so happy. There’s all kinds of things that $1000 will do.”
WASHINGTON--Today, Chairman Steve Chabot (R-OH) released the following statement on the Federal Communications Commission (FCC) and Department of Commerce's actions against state-sponsored foreign businesses:
“As Chairman of the House Small Business Committee, I have long held concerns that China’s state-backed telecommunications firms pose a significant threat to America’s hardworking small businesses. There is little question that China’s telecoms firms undermine America’s interests—this is a threat to both our overall economy and our national security," said Chairman Steve Chabot (R-OH). "We support the FCC’s willingness to take these issues as seriously as we have in Congress. This Committee has paid close attention to the malicious actions carried out by telecom equipment maker, ZTE, and information and communications technology provider, Huawei, in recent years. We have held numerous hearings with the FBI and other federal agencies regarding the growing threats that many small businesses face from foreign entities. It has been made abundantly clear that nefarious actors view small businesses as an easy target for disrupting America’s supply chains and penetrating our cybersecurity infrastructure.”
WASHINGTON – Today, House Committee on Small Business Chairman Steve Chabot (R-OH) helped pass H.R. 4790, the Volcker Rule Regulatory Harmonization Act to roll back the Volcker Rule, a burdensome and harmful regulation created under the onerous Dodd-Frank Act. Specifically, H.R. 4790 would exclude community banks from the Volcker Rule by raising the compliance threshold to $10 billion in consolidated assets, exempting them from regulations intended for large investment banks engaged in speculative trading.
“Instead of addressing problems, the Volcker Rule just created more of them for small businesses trying to access capital and the small community banks trying to provide it. Exempting them from the rule will allow community banks to better serve local and small businesses as they strive to grow their companies and create more jobs,” said Chairman Chabot.The Committee has heard frequently from small businesses that many of the Dodd-Frank rules, regulations and provisions have limited access to capital and increased compliance costs for small financial institutions.
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
WASHINGTON – Today, Members of the Committee on Small Business Subcommittee on Investigations, Oversight, and Regulations heard from a panel of experts on entrepreneurial development and the interdependent relationship between a community and small businesses.
“With 29.6 million small businesses employing 47.8 percent of the workforce, small business success is essential to the economic well-being of both individual communities throughout the country as well as our nation overall. While there are many factors that contribute to the success of a small business, one factor that is often overlooked is the community-small business relationship,” said Subcommittee Chairman Trent Kelly (R-MS).
The Community-Small Business Relationship
At the hearing, the panel agreed that while the programs provided by the Small Business Administration are critically important, just as important is the entrepreneurial environment of the local economy. When coupled together, not only will small businesses prosper, the whole community will.
“I believe that building the infrastructure to support the development of entrepreneurship is well within the means of every community in America - be it large or small,” stated Mr. Ara Bagdasarian, Co-Founder and Chief Executive Office of Omnilert, LLC, in Leesburg, VA, testifying on behalf of America’s SBDC’s. “Once this framework is built, an entrepreneurial ecosystem will develop and flourish incrementally.”
“Our innovative work provides a critical piece of Cincinnati’s startup ecosystem, showing what’s possible when people work together towards a common goal…. Every day, MORTAR shows Cincinnatians and other communities what’s possible when you invest in previously underestimated entrepreneurs,” said Mr. Derrick Braziel, Founding Partner and Managing Director of MORTAR, in Cincinnati, OH, testifying on behalf of SCORE.
“…[A] strong community helps identify new opportunities. Every business, whether five minutes or five generations old, is seeking new opportunities. A community that understands your business and its offerings is incredibly helpful in spotlighting business development,” stated Ms. Stephanie Carter, President of SCB Management Consulting in Upper Marlboro, MD, testifying on behalf of the Association of Women’s Business Centers.
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
WASHINGTON—Today, House Committee on Small Business Chairman Steve Chabot (R-OH) addressed Members of the House Armed Services Committee on behalf of America’s 30 million small businesses and pushed for 13 bipartisan bills to be included in this year’s National Defense Authorization Act (NDAA).
“I am here today to support the inclusion of thirteen small business bills in this year’s National Defense Authorization Act. Each of them is critical to ensuring a robust defense industrial base…
“Our nation demands a vital small business industrial base: it is fundamental to the health of our nation as a whole. I am grateful to the Armed Services Committee for its collaboration with the Small Business Committee and I look forward to working with you to ensure that small businesses continue to provide the Department of Defense and the federal government with competitive solutions that support critical programs.”
The Committee on Small Business has delivered a wide range of small business bills to be included in the FY19 NDAA. Some of these provisions include the increased use of research and development programs such as the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs; urging of the federal government and private sector to work together to combat cyber threats that harm small businesses; and the reducing of regulation and red tape to increase access to capital.Read More
WASHINGTON—Today, Chairman Steve Chabot (R-OH) and the House Committee on Small Business heard from a panel of stakeholders on the state of international trade for America’s 30 million small businesses.
“We must do more to make it easier for small businesses to engage in foreign markets. About one percent of United States small businesses export—around 300,000 of them and, in 2016, exports reached 2.2 trillion dollars and supported nearly 11.5 million jobs,” said Chairman Chabot.
“Simply put, trade means opportunity for small business. After all, 95 percent of the world’s consumers live outside of our borders, and I have long believed that if we tear down trade barriers, we can make it easier for small businesses to participate in the global marketplace and unleash one of the largest sectors of the American economy. “
Tariffs, Trade, and Technology
At the hearing, witnesses agreed that there is little doubt that the United States needs to negotiate better trade deals—agreements that not only make American small business more competitive but also fair for American workers. Stronger and more easily enforceable trade agreements means businesses will create and sell more products, drive up wages, increase benefits, and generate more jobs. Increased access to international markets strengthens the American economy.
“Some of the challenges small businesses face are similar to larger businesses, including tariffs and other market access barriers, lack of transparency, discriminatory policies and weak protection of intellectual property,” said Mr. Chuck Weatherington, President of BTE Technologies, Inc. in Hanover, MD, testifying on behalf of the National Association of Manufacturers. “We need open markets and strong, enforceable agreements that eliminate barriers and set in place strong rules to promote fairness.”
“One of the most significant barriers to success in international business is the investment of resources without any known return. Companies often do not have the needed funds or they are unwilling to take the investment risk,” stated Mr. Ken Couch, Director of Product Management at ComSonics, Inc. in Harrisonburg, VA, testifying on behalf of the State International Development Organizations (SIDO).
“It is important to start out on a foundational point, i.e., that free international trade amounts to a significant plus for the economy, consumers and small businesses. In fact, the net benefits of free trade are one of the very few points upon which most economists agree,” said Mr. Raymond J. Keating, Chief Economist at the Small Business and Entrepreneurship Council, in Vienna, VA. “Free trade reduces costs through enhanced competition and lower trade barriers; expands choices and lowers prices for consumers; keeps U.S. firms competitive; opens new markets and opportunities for U.S. goods and services; expands economic freedom; and feeds economic growth.”
Committee Members agreed that trade is not a choice or a luxury in our modern world. It is a necessity. If the United States wants to continue to be a global economic powerhouse, small businesses need to have every opportunity to engage in global commerce.Click here to watch full hearing, and here to read full testimony.
WASHINGTON—Today, House Committee on Small Business Chairman Steve Chabot (R-OH), released the following statement on the Administration’s Memorandum of Understanding (MOU) to expedite infrastructure project approvals.“Small businesses and contractors across America can now breathe a huge sigh of relief knowing that this Administration continues to work on their behalf. For too long the burden of federal permitting has cast a shadow on entrepreneurs, small contractors, and innovators. I applaud the White House and the corresponding federal agencies for putting hard working Americans first. Streamlined decision-making for infrastructure projects are key to rebuilding our nation and allowing for a healthier small business economy.”
WASHINGTON – Today, House Small Business Committee Chairman Steve Chabot (R-OH) and Ranking Member Nydia Velazquez (D-NY) recognized Small Business Development Center (SBDC) Day. SBDC’s offer counseling, training and technical assistance in all aspects of business creation and management.
“SBDC’s began in 1976 with only eight participating universities. Today, the program is the largest and most utilized entrepreneurial development program, boasting over 1,000 centers across the country, within the Small Business Administration. This isn’t surprising considering they are a critical resource for small business owners and entrepreneurs. For over 40 years, we have seen the remarkable impact that SBDCs have on not only the small business community, but on the American economy overall, said Chairman Chabot.
“For millions of budding small businesses, SBDCs are there to provide hands-on assistance and mentorship, serving as a ‘one-stop shop’ towards building a successful venture. Today, I am proud to join Chairman Chabot in recognizing the dynamic and vital role that SBDCs play in fostering a thriving small business economy,” said Velazquez.
In Fiscal Year 2017:
The Committee on Small Business Subcommittee on Contracting and Workforce will meet for a hearing titled, “Workforce Development: Advancing Apprenticeships for Small Business.” The hearing is scheduled to begin at 2:00 P.M. on Tuesday, March 20, 2018 in Room 2360 of the Rayburn House Office Building.
Subcommittee Members will continue the Committee’s exploration of strategies to mitigate small business workforce challenges caused by the skills gap. On February 26, 2018 the Committee held a field hearing, “Workforce Development: Closing the Skills Gap,” which focused on career and technical education programs. This hearing will examine apprenticeship initiatives, specifically the Department of Labor Registered Apprenticeship Program, which combines on-the-job learning and related technical instruction.Attachments
The Committee on Small Business will hold a markup of legislation to amend the Small Business Act and the Small Business Investment Act. The markup will be held at 11:00 A.M. on Wednesday, March 14, 2018, in Room 2360 of the Rayburn House Office Building. The items that will be marked up include:
The Committee on Small Business will meet for a hearing titled, “Disparities in Access to Capital: What the Federal Government Is Doing to Increase Support For Minority Owned Firms.” The hearing is scheduled to begin at 10:00 A.M. on Monday, March 12, 2018 at the Jacksonville Chamber of Commerce, 3 Independent Dr., Jacksonville, FL.
Small businesses owners, particularly women and minorities, face unique challenges when it comes to getting a loan to help them grow and create new jobs. At a time when minority-owned businesses are growing at a faster pace, they still secure financing at much lower levels than many other businesses. Without adequate access to capital, whether microloans, commercial lending, or investment capital, small minority firms cannot compete for government contracts, grow their business, or create jobs in their local communities. The hearing will focus on the challenges they face with Small Business Administration (SBA) lending programs, traditional bank loans, private investment capital, and other alternative financing.Attachments
The Committee on Small Business will meet for a hearing titled, “Regulatory Reform and Rollback: The Effects on Small Businesses.” The hearing will take place at 11:00 A.M. on Wednesday, March 7, 2018 in Room 2360 of the Rayburn House Office Building.
Complying with federal regulations continues to be one of the biggest challenges for America’s small businesses. In an effort to reduce the continuing burden, both Congress and President Trump have taken steps to reduce the regulatory burden on small businesses by rolling back and revising existing regulations. The President has also taken steps to reform the regulatory process and require federal agencies to review their existing regulations and identify candidates for removal or revision. This hearing will examine the effects of Congress and the President’s regulatory reform and rollback efforts on small businesses and explore ways to continue to provide regulatory relief.Attachments