▶ 0:16:31Before we get started, I want to recognize Miss Simon uh to who's going to lead us in the pledge and the prayer. Would you please stand? Thank you, Mr. Chair.
▶ 0:17:03And we acknowledge that you put us here to serve and to speak truth and to be together to do the right thing. The right thing meaning your way. in yourstead. The beautiful and amazing guests that we have here today amplify the tapestry of this beautiful nation that you have set forth and you allow us to be in. And we are so thankful.
▶ 0:17:29Heavenly Father, in your name, in the name of your son Jesus Christ, we say amen. Amen. Nation under God, indivisible, with liberty and justice for all.
▶ 0:18:02Good morning or good afternoon. I now call the committee on small business to order. Without objection, the chair is authorized to declare a recess of the committee at any time. I now recognize myself for opening statement. Welcome to today's House Committee on Small Business Opening Day hearing or member day hearing. I want to thank each of you for taking the time to come before the committee to share what you are hearing from small business owners in your districts. Member day is an opportunity for us to get a pulse on the issues facing Main Street America.
▶ 0:18:30We deeply value your time and the voice of you and your constituents. Now, to me, owning a small business embodies the very essence of the American dream. The opportunity for an American from any background to take risk, work hard, and build a better future for themselves, their families, and their communities. Our economy depends on small business and the workers they employ. In fact, 99% of businesses are small, and they employ half of American workers.
▶ 0:18:52From local manufacturers to retail employees, service workers and bankers, small businesses are the heartbeat of our economy, shaping their communities through their dedication, creativity, and resilience. It is no secret that small business have faced historic challenges over the past four years. The CO 19 pandemic, out of control inflation, broken supply chains, high interest rates, and a national labor shortage. To add insult to injury and overregulation, bad policy under the previous administration hurt small businesses even further.
▶ 0:19:20Every extra hour of paperwork is one less hour they can tend to their personal livelihoods and and every inflated tax is an extra dollar that could have gone back into their business. We see hope on the horizon through his pro business administration committed to lowering taxes and cutting regulations. House Republicans are working with President Trump and Ambassador Leler to create an environment where businesses can thrive. We salute the entrepreneurs who continue to fight and give selflessly back to their communities.
▶ 0:19:46We're eager to enact policy solutions that will help have a path toward success for both now and the future. Here on the Committee on Small Business, our mission is to listen, learn, and better understand the challenges of committee's opportunity impacts on Main Street America. That is why we look forward to hearing from representatives from across the country as they recount the experiences of small business owners in their district. Today's conversation will shed light on many challenges plaguing American small business.
▶ 0:20:11Increasing the dialogue between members can and off and off the committee can only strengthen and broaden our understanding of how to better serve our nation's biggest job creators. I want to thank all of you for being here today. I'm looking forward to today's conversation. With that, I yield to Mr. Tran from the great state of California for opening remarks. Thank you, Mr. Chairman. Today, we'll hear directly from our fellow members of Congress about their views on the federal programs and policies that promote small business creation and growth.
▶ 0:20:40In the last four years, our nation has seen an unprecedented small business boom and come back in the face of an an equally unprecedented global pandemic and recession. Under the previous administration, Main Street received critical assistance and investment from historic legislative victories, putting putting our economy on a uniquely strong path to recovery. Small employers, startup, tech startups operating out of their garages, family farms, and main street restaurants all flourished in the last four years. They joined by they are joined by 22 million new small businesses.
▶ 0:21:11We're well on our way to a slice of the American dream. But since then, the Trump administration has proven to be a nightmare for entrepreneurs. Members of both parties are hearing at town halls nationwide that America's main streets are increasingly threatened by the economic uncertainty and chaos emanating from the Trump administration's policies. In particular, President Trump's tariffs imperil the livelihoods of millions of American entrepreneurs and employers, all of whom are staring down added costs ranging from tens of thousands to hundreds of thousands.
▶ 0:21:41In fact, 88% of small firms rely upon imports for the goods they produce and sell with many inputs and components lacking viable domestic alternatives. Furthermore, the suddeness of these tariffs as well as their pauses and increases ignores how most business operate regardless of their size. As the White House repeatedly flip-flops on tariffs, small business owners and their customers cannot reason reasonably predict how products will be priced next month, next week, or even tomorrow.
▶ 0:22:11Small business owners and even the US Chamber of Commerce are begging the Trump administration for immediate tariff relief, and the White House has spurned their pleas for help. Instead, promising tax cuts for the rich and powerful at the expense of the everyday American. And the pain won't let up. The Trump administration's first 100 days have seen economic activity contract by 2.8% and our ports empty out with uncertainty rippling through all sectors of our nation's economy. America is risking an entirely preventable recession. Mr.
▶ 0:22:41Chairman, I would be remiss if I didn't mention that this week is National Small Business Week, where on this committee we honor the 35 million small businesses in our nation and recommmit to promoting and protecting the jobs and livelihoods they sustain. I would also be remiss if I didn't remind my colleagues that these same small businesses are disproportionately harmed by recession. That's why this hearing is especially timely.
▶ 0:23:04As elected officials and policymakers, our duty is to build on the progress that small businesses have made and to give them the resources they need to thrive. To achieve this, we need a keen understanding of the greatest challenge challenges facing small business owners in our district. I know when we all go home, we're eager to hear from entrepreneurs about the policies that serve them well and what we can improve on.
▶ 0:23:27Thank you to all the members testifying and taking the time out of uh their day to share their perspectives that they've heard from their small business constituents. Today, our committee has a chance to have an open, frank dialogue about how we can all stand up and support Main Street America. I look forward to our discussion. And with that, Mr. Chairman, I yield back. Gentleman yields back. And before we continue, I would like to take a moment to explain how this hearing will proceed. Each member will be given five minutes to deliver their testimony.
▶ 0:23:54And after they finish speaking, we will briefly pause as we change the panel to accommodate the next member. With that, I'd like to introduce our first member, Representative Mike Kelly, my friend and a fellow car dealer uh from the great state of Pennsylvania, and recognize him for to deliver his five minutes of Thank you, Chairman. It's really good to be with you uh especially when the car guys get together. I think we always talk about how business is going and and and quite frankly uh from both opening remarks. I guess it's it's a tale of two cities.
▶ 0:24:24Uh I watched for four years as we tried to get through the previous administration with all the type of things that were put in our way. And now we're into the Trump administration and and I would just remind we're we're talking about 30 days since we we started on the on the tariffs. It's not 30 weeks or 30 months. Uh, and I I think the the impact while we have all these ideas of how bad it's it's become, I got to tell you, I'm on the lot when I go home. Um, where I'm from, it's a little different view of the world.
▶ 0:24:51Uh, and I tell people all the time, if you want to know how important small businesses are, if you have a son who plays little league baseball, see whose names on the outfield fence. If you have a daughter who is maybe performing in a school play, open up the program and you're going to see whose name is inside the program because we pick up the tab on almost everything there is in our small towns and our small businesses and wherever it is that we live and work.
▶ 0:25:14So, it's been an honor for me to serve with Roger because we understand each other so much on what it is that it takes to make a a business prosper. And the other side of it is the economic impact that small businesses have. uh we pay incredible taxes. Uh we provide benefits. We provide uh an idea that you know what this is a business that I can I can work as hard as I want.
▶ 0:25:42I can keep working and I can prosper from it. Uh there are times that it's tougher than other times. We get that. I've been through both sides of it. I've been through the situation where I I can't imagine how I'm going to make payroll. Uh the 6th and the 21st were always the biggest days of the month for me. People were say, "Is that an anniversary?" I said, "No, it was payroll." Uh, and I know that for people who were in small businesses, we never missed a payday. That's not bragging, by the way. Now, there were days I didn't get paid, but for the team that worked together every single day, we were there for them.
▶ 0:26:10But I think the backbone of America really is small. Small business is the big business of America. And I think the way we participate in our communities, it has nothing to do with other than the fact that we are all in the same on the same field at the same time and trying to make sure that everybody at the end of the day walks away thinking, you know what, that was not a wasted day. That was a day where I actually achieved something. And when I walked in, I got a chance to meet Roger's family. Uh it kind of reminds me of my own.
▶ 0:26:38Uh and and you see these these little people as they as they grow up. And uh and I think Raj and I the same way. My first job at the dealership was was cleaning restrooms and washing cars and uh and delivering cars to parts of the body shops that needed them. So, we were always on the road or in the shop or doing something. But the re the reward for me was watching John Reamers retired and Jim Belo retired.
▶ 0:27:05And people say, "Who are those guys?" I said, "Well, those are two people that worked for us." One was a tech, the other worked in the parts department. My dad in 1971, right after I had graduated from school, called me in and says, "Listen, there's a guy coming in to talk to us today and he's going to talk to us about a pension program." I said, "Why would he be doing that?" He said, "Well, 21, you have no idea what it looks like, but you will later on." So, why do I bring up those two names?
▶ 0:27:28When my dad instituted that program, when John Reamers retired and Jealo retired, they had tears in their eyes when they came in. My dad had already left the business, but they said, "If it had not been for your dad and the program that he put in place, we never would have been able to retire on just what we had been able to save." And I thought, you know what, that's what my dad was talking about back then. And I think Roger and I shared the same thing. Our commitment is not so much to ourselves.
▶ 0:27:56It our commitment to ourselves is you're going to open those doors every day and you're never going to miss the 6th or the 21st. you're going to be there not just for the team that you work with every day, but for the community you live in. And so I think when you talk about small business, people tell me, "Well, big business is the backbone." I said, "No, it's not. No, it's not. Please come into our communities. They have a presence, but their presence is name only. It's not that they're on the field every single day. We don't miss birthdays. We don't miss anniversaries.
▶ 0:28:25And again, as my friend lost his wife this year, uh we share in grief times, too. So, it's a pleasure to be with you today. Please keep the eye on the ball. It's about small businesses making it possible for us to be prosperous. I got to tell you, there's two times in my life that I didn't pay one penny in income tax and I'm on I'm on on on Ways and Means and they asked me said, "How did you get away with that?" I said, "We lost money that year." So, the key to everything in in small business and every business, you must be profitable so you can do everything.
▶ 0:28:54Not only do you pay income tax, but you're putting money into into pay into into retirement plans into health care pans plans. That takes the burden off hardworking American taxpayers every day. So, the success of small business is the success of America. So, I can't tell you how how proud I am to be here with you today, sir. Uh, and we are we are the backbone. We are the backbone of America. Thank you so much and thanks for having this meeting. Thank you, Representative Kelly, for your friendship and your commitment to this country.
▶ 0:29:23Uh and uh uh if uh do we have members have any Well, well then nobody's asking who sells them cheaper, you or me. So Well, wait. We do. I think Yes. Yes. Yes, ma'am. Yes, Miss Simon. All this way. I think you deserve a question, right? Planes, trains, and automobiles. My name is Latifah Simon, and I come from uh the great state of California, which our chair reminds me of often, and I appreciate that.
▶ 0:29:51Um well, thank you all to all the witnesses, but one I want I just want to thank you for your testimony. It was um it was heartening regardless where and who we are, how we vote, you know, your testimony was extremely compelling. Uh I guess I do have a question. Um and it's really the question, there's no right or wrong answer. Your hopes for this committee as we move forth, you know, there is so much so much at stake clearly for every American.
▶ 0:30:19Uh the SBA uh is a very very important agency. We do some oversight over SBA. Um just curious for small businesses like yours who literally you keep folks going, right? Um yes ma'am. What do you need? What do you need from the United States Congress from this particular committee? I think what we need more than anything else because these are not red or blue issues. These are red, white and blue issues. I think too often we get separated by our politics and not our and we need to look at our policy.
▶ 0:30:46the policies affects every single American every single day and what we decide on. So I would hope that and I and I know that Roger and I the same way. Anytime anybody would ever come into our store, we'd always say, "What can we help you with today?" And I think when we come in here to the Congress, we should be looking back home to the threequarters of a million people that we represent and say, "What can we do to help you today?" Because I know when when small business is successful, America's successful.
▶ 0:31:11And we do so much in our communities in addition to payroll, which is which is a big part of it, but our very presence is what adds hope and trust in the future for America. It is small business is America's biggest business. I appreciate you talking about payroll. Um I since I was 20 years old, I've I've had staff in the day that day before payroll when you don't have the cash balance, we all sweat and we figure it out and we make it and we don't get paid.
▶ 0:31:36So, thank you for really modeling uh I think our chair and our ranking member who isn't here today and our ranking member and instead um we can say that this is one of uh the most productive committees in the United States Congress because we get exactly what you're saying that regardless who you are, what you look like, who you pray to, uh the backbone of every small town of every big city, the sandwich shop, the car dealer, the the the the tire salesman, the the local
▶ 0:32:06ice cream shop. They build who we are. They are who we are. The the cupcake lady. Um so I just really appreciate uh you and I hope you can come back and continue to educate us uh as we move through a very what we think is going to be a very lively two years. Thank you, sir. Yes, ma'am. Thank you so much. Thank you, Mr. Chairman. We need to search. We need to move on to the next Okay. Okay. Thank you for being here. We appreciate it greatly. Appreciate it. Thank you very much.
▶ 0:32:31And uh now we will bring up uh uh Delegate James Molen from Guam. Thank you, Mr. Chairman and Ranking Member Tran. I want to thank you for hosting this member day. Thank you very much.
▶ 0:32:50Now, for over six decades, uh, since what we call Super Typhoon Karen devastated our island in 1962, the SBA branch office has been the cornerstone in providing disaster loans and grants, enabling businesses and residents not only to recover and rebuild, but to thrive as well. However, the recent decision to close Guam SBA branch office April of this year poses significant challenges for our island.
▶ 0:33:21The transfer of responsibility to Hawaii SBA office more than 3,800 miles and five time zones away poses many risk. The distance and time zone differences will lead to delays in service and limited accessibility for small businesses in Guam. Without a local branch office, our communities will face additional challenges in accessing much assistance.
▶ 0:33:50Now, I commend the support of SBA's efforts to streamline spending, empower small businesses, and to eliminate fraud, waste, and abuse. However, the current reality falls short in considering the unique challenges of the Pacific Islands.
▶ 0:34:08The current plan to assign a procurement center representative to work alongside the Small Business Development Center, SBDC, at the University of Guam fails to address the urgent needs of our local community, especially as we host the military buildup.
▶ 0:34:28While the SBDC plays an important role, it is primarily designed to support SBA counseling, often with an international focus. Now, the SBDC is not meant to serve as a substitute for Guam SBA branch office functions that assist Guam businesses.
▶ 0:34:50The Pacific territories are now the only jurisdiction in the entire nation that lack on the ground SBA services. Every state has a district office. Even Puerto Rico and the US Islands where they have only a single district office to serve both territories. SBA is retaining their presence.
▶ 0:35:16Yet for Guam, the Commonwealth of the Northern Marianas, and America's Samoa, we must rely on a district office thousands of miles away to access SBA services. The recent decision leaves me with a question. Why do small businesses in the Pacific territories face such a challenge when nowhere else is this the case?
▶ 0:35:42To properly address our island needs, Guam requires a fully operational SBA branch office. Faced with unique challenges, including higher cost of doing business and vulnerabilities to natural disasters, Guam small businesses rely heavily on all SBA services, especially direct on the ground assistance. Eliminating the presence on island dismisses federal responsiveness and risk undermining our local economy.
▶ 0:36:12So I respectively um urge this committee, Mr. Chairman, uh to ensure that every state and territory small business communities has the resources they need to thrive. Small businesses are the cornerstone of America and we as Congress must take action to ensure that Main Street has the tools they need to succeed.
▶ 0:36:35Small business owners deserve continuity to of service and support to ensure their survival and success regardless of where they're located. Mr. Chairman, I thank you for your attention on this issue. Thank you. Thank you very much before appearing. And we uh do we have time for a one minute question from anybody? Okay, seeing none, uh thank you very much.
▶ 0:37:01I now recognize uh Representative Tony Weed from the great state of Wisconsin for 5 minutes. Well, thank you, Mr. Chairman, and thank you to my colleagues who came to speak today. As most of you may know, this week is National Small Business Week, a time when we celebrate the hard work and contributions that entrepreneurs and small businesses make to our economy. As a former small business owner, I know firsthand how difficult it is to run a successful company.
▶ 0:37:28For too long, small businesses on Main Street have been overlooked in favor of big businesses on Wall Street. House Republicans are committed to supporting President Trump's efforts to refocus the Small Business Administration away from the bloated regulatory agency primarily staffed by career bureaucrats in Washington DC towards its original mission of helping small businesses inside their communities. Last week, this committee did just that.
▶ 0:37:54We passed out of committee bills that moved 30% of SBA staff out of Washington DC, required proof of citizenship for SBA loans, and prohibited the SBA from engaging in any voter registration activities. These are all common sense bills that refocus the Small Business Administration toward its original mission. One of the biggest changes we have seen from the SBA under the Trump administration is an increased focus on manufacturing right here in the United States of America.
▶ 0:38:23From ship building to paper products, Wisconsin's eighth district is a manufacturing hub with almost one quarter of our working population employed in this vital economic sector. I'm committed to improving access to capital, reducing regulations, and supporting technical school graduates as we reshore American manufacturing. I'm looking forward to working with the administrator Leler and members of this committee to promote manufacturing in Wisconsin's 8th district and across our entire country.
▶ 0:38:52There is work to be done and I along with the small business committee colleagues of mine are committed to making Main Street great again. Thank you. I yield back. Gentlemen yields back. One minute question. Okay. Uh our next uh uh representative and congressman is Gus Barcus. Good friend from the great state of Florida. Thank you. Thank you, Mr. App.
▶ 0:39:19It's good to see my good friend here, my fellow baseball fan, and also my fellow Floridaidian, a very good friend, Jimmy Petronis. Great to see you here, uh, Jimmy. So, I want to thank you, Mr. Chairman. I really appreciate you. Uh, I want to thank you for holding this uh, members day hearing. It is great to testify in front of you uh, during the national again uh, small business week.
▶ 0:39:45Florida is home, as you know, to approximately 2.3 millions small businesses, which employ about 3.1 million people. So, I said billion, I meant million. This represents uh 43.2% uh of the state's private sector workforce. I always enjoy meeting with small business owners in my district who are the lifeblood of our community. As a matter of fact, uh Mr.
▶ 0:40:14Patronis uh has probably the best restaurant uh and I'm going to get in trouble with my constituents, but in any case, one of the best restaurants in the state of Florida in Panama City. Uh and I know he doesn't own it anymore, but it's still in his family. So, I have many uh such meetings this year with small business owners and have held budget workshops to hear what my constituents would like to see out of Washington DC.
▶ 0:40:44The number one concern I have heard from the owners of these businesses is the need for an extension of the provisions in the 2017 Tax Cuts and Jobs Act. I know you agree, Mr. Chairman. These tax policies have allowed hardworking Americans to hold on to more of their paychecks and let small businesses in our state flourish and reinvest in their communities.
▶ 0:41:10Some provisions that have allowed businesses to grow are the deduction for research and development expenses, bonus depreciation, and a competitive interest deductibility standard. The gains that have been made since 2017 are at risk if we do not extend these tax provisions. Additionally, small businesses are most at risk since they are overwhelmingly structured as pass through entities.
▶ 0:41:41They have benefited from the qualified business income deduction and the personal income tax rate which are set to expire. pass through entities account for 48% of private sector uh for-profit employment in Florida. In my district 63,010 taxpayers claimed the 20% deduction passed through deduction uh in 2020. This amounted to a collective tax benefit of $425,22,000.
▶ 0:42:14The expiration of this provision would inflict severe damage to those small business owners and have a detrimental impact on our community. We can't have that within the community at large. The average taxpayer in Florida would see a 23% tax hike if uh 20 the 2017 tax cuts are not extended. It would amount to the largest tax increase in history. Again, we can't have that, Mr. Chairman. This is unacceptable as far as I'm concerned.
▶ 0:42:44Similarly, I have talked to small business owners who have been able to hire more workers and expand their businesses but would have to scale back if the tax cuts provisions were to expire. We need to ensure that owners are given the tools they need to continue to make these investments and grow their communities. So again, small business is the backbone of America. I don't have to tell you, Mr. Chairman.
▶ 0:43:14A permanent extension would give business owners the long-term tax stability they need to plan and invest in their future with confidence. As small businesses succeed, America succeeds. That's the bottom line. I support making the tax cuts and jobs act provisions permanent and look forward to continue to work with you uh again for the entire committee. As a matter of fact, Mr. Petronis, my dad served on this committee.
▶ 0:43:41Congressman Bill Horack is his first term and I tell you it's a great committee. Thank you. God bless you and I yield back. Thank you Gus for those words and also thank you for your family that's been representing this great country for so long. Thank you very much. Uh we have a a one minute question. Okay, seeing none, uh Ben Klein from the great state of Virginia for five minutes. One of the great golf putters of all time right here.
▶ 0:44:10So, Mr. Chairman, thank you. It's a honor to be before the committee. I appreciate the opportunity uh here on Small Business Week to uh join you in the celebration. and it's an honor to discuss legislation that I've introduced that supports and positively impacts small businesses not only in my district, the sixth district of Virginia, but across the nation.
▶ 0:44:33Uh the Small Business Regulatory Flexibility Improvements Act is an important piece of legislation under the jurisdiction of the committee that uh will help American small businesses comply with the overwhelming rate weight of federal regulation. As you know, uh, small businesses around the United States are at a disadvantage when complying with burdensome federal regulations. And such regulations, including one-sizefits-all rules that raise prices at the cash register, cause significant economic harm to small businesses and consumers.
▶ 0:45:03Burdensome regulations also can keep some small businesses out of the market altogether. Facing insurmountable compliance costs, potential entrepreneurs all too often choose to never open their small businesses in the first place. Under the existing regulatory flexibility act, the FRA, agencies that issue economically burdensome regulations are required to take small businesses into account. But all too often, agencies don't comply with the RFA's mandates.
▶ 0:45:27While the RFA requires agencies to study the effect of their regulations on small businesses, in up to 75% of rulemakings, the agencies either ignored costs on small businesses or underestimated the regulations cost. According to NFIB, HR 358, the Small Business Regulatory Flexibility Improvements Act, would strengthen the RFA's already existing provisions and deter agencies from skirting their statutory obligations to American small businesses.
▶ 0:45:53HR 358 requires that agencies convene convene small business review panels when promulgating all major rules, which gives small businesses a seat at the table to voice their concerns about the economically harmful regulations. It also requires regulators take indirect costs of their regulations into account. As you know, the bulk of the harm from regulations come from the indirect cost of compliance. This bill addresses the oversight in the federal regulatory process.
▶ 0:46:19Further, it authorizes the Small Business Association's chief advocacy council to create rules mandating how agencies must conduct their analyses. Finally, it mandates that all rules is defined under the Administrative Procedures Act, not just notice and comment rulemakings, are covered by RFA's analysis requirements. Uh, as you know, Mr.
▶ 0:46:39Chairman, the RFA was passed in 1980, but there are still agencies which do not take the specific needs of small businesses into account when crafting regulations, and ultimately f federal regulators have failed and their obligations to American small business owners under the RFA. So, Mr.
▶ 0:46:54Chairman, in conclusion, our HR 358, the Small Business Regulatory Flexibility Improvements Act, is a common sense effort to ensure regulators comply with the RFA's provisions as Congress intended by fully considering the total regulatory impact on small business owners when crafting legislation. Hope it would be the uh will of the committee to report the bill out and uh put it to your consideration and I thank you for the opportunity today. Thank you, Congress, and thank you for your leadership. Thank you, Mr. Chair.
▶ 0:47:23I now recognize Representative McCyver from the great state of New Jersey for 5 minutes. Uh thank you chairman and ranking member for holding this hearing and thank you to our fellow members of Congress for coming to share their small business goals with us today. Uh first of all, happy small business week to all of the small businesses um who are tuned in to us today.
▶ 0:47:43If you're so lucky to be tuned in to us today via C-SPAN, I proudly represent the 10th Congressional District in the great state of New Jersey, which has a GDP of more than 200 billion and is home to more than 5,000 businesses, many of them thriving small businesses. These small businesses are not just job creators, they are community builders, and they are driving growth.
▶ 0:48:08They also include local gyms like Big Rocks Deli owned by and operated by Rockman and Casa del Flora, a beautiful flower shop owned by Marissa. We are at a pivotal moment for small businesses like these and the Small Business Administration. The economy is officially contracting well on its way into a recession.
▶ 0:48:30All while the SBA engages in mass layoffs of qualified and experienced employees and moves forward with plans to move its offices out of the economic hubs that need it most. These actions are a direct threat to the millions of entrepreneurs who depend on the SBA. Our job isn't just to support Our job isn't just to support small businesses in theory. It's to ensure the SBA can function in real life for real people.
▶ 0:49:00First, we must confront a core challenge. Access to information. For too many small businesses, business owners, especially first generation and lowincome business owners, the process of applying for SBA loans remains complex and difficult to navigate. That's unacceptable. SBA must improve its outreach efforts to ensure that these entrepreneurs get the same clear, timely, and reliable guidance that any large business would expect from a bank.
▶ 0:49:29Second, we cannot allow the historic gains made under the prior administration to slip away. We saw record growth in the number of small businesses owned by veterans, women, and people of color. That didn't happen by accident. It was the result of a fully staffed and funded SBA underneath the Biden and Harris administration. The SBA had a capital impact of 56 billion in 2024.
▶ 0:49:55We must prioritize staffing and resources to ensure as many small business entrepreneurs as possible are able to share in that success. Third, we must think beyond our borders. Small businesses represent over 98% of all US exporters. Yet many lack the tools to navigate international trade, a situation made worse by the on and off again tariff policy of the Trump administration.
▶ 0:50:21If the administration is not going to not going to abandon its tariffs policies, then SBA needs to step up its services to these businesses to help them navigate these very very trying times. And finally, the future of small businesses relies not only on who owns the companies, but on how they're owned.
▶ 0:50:41That's why I'm calling for a renewed focus on employee ownership models, such as cooperatives and employee stock ownership plans that allow workers to build wealth and equity through their labor. These models are proven to stabilize businesses and strengthen local economies. The SBA must play a leadership role in supporting employee ownership, particularly as older Americans retire and ownership ownership secession becomes a growing issue.
▶ 0:51:11These are not partisan ideas. These are not partisan ideas. They're common sense steps to make the SBA work better for more people and in more places. We need an SBA that supports our entrepreneurs at home, opens doors abroad, and ensures workers share in the prosperity they help create.
▶ 0:51:30For these reasons, I urge my colleagues across the aisle and my colleagues on this side of aisle to eliminate barriers that to growth among small businesses, not just in today's discussion, but in the legislation and oversight to come. Our small businesses deserve nothing less. With that, I yield back. Gentle lady yields back. I now recognize uh Congressman Brian Jack from the great state of Georgia for five minutes. Well, thank you, Mr. Chairman, and mindful of the timing of our vote series today.
▶ 0:52:00I'll be very brief. First and foremost, Mr. Chairman, I want to thank you for your leadership on this committee. And likewise, want to commend the the committee's work. As you've noted long before, this is the one of the the last vests of bipartisanship on Capitol Hill, and it's important because we're trying to solve the problems that affect 99.9% of all businesses across our country. Just want to highlight two things as it relates to Georgia's incredible third congressional district.
▶ 0:52:24Uh in honor of not just National Small Business Week of of which we're uh well within now, but really small business month over the last month and really this entire year. U I had uh the privilege of welcoming to my congressional district about 3 weeks ago administrator Leler. Uh she's a friend of mine. I was formerly her constituent before she was appointed, of course, uh to to lead the Small Business Administration, but I had a chance to bring her to Troop County in my uh my district. We had a chance to go to Jane's Foods.
▶ 0:52:53If anybody's in Troop County, it's a great place to visit. And likewise, I took her to really what is Main Street America. Took her to the Main Street in Lraange. She had a chance to go to uh Solomon's Clothing Store and Charlie Joseph's, which is the best place to eat if you're in Lraange. So, it was very special for me. special for the community to have an opportunity to share with her some of the challenges that they face and likewise provide some recommendations for resolutions to those challenges.
▶ 0:53:18And I also just want to highlight in my closing comments, uh I had a chance working with members of this committee to really help a small business in my district just a few months ago. Uh there was a regulation that was handed down by Joe Biden's Department of Energy uh the day after Christmas, December 26, 2024, that would have put out of business a water heater manufacturing company in my district.
▶ 0:53:42Last Friday, I welcome my second cabinet member to the district, Secretary Chris Wright, to celebrate the passage of our CRA resolution that repealed that regulation. We talk a lot. We've heard from innumerable witnesses throughout the course of this Congress just how regulatory burdens can drastically impact and affect the way that small businesses function.
▶ 0:54:03In this case, working together with our colleagues and 11 Democrats crossing the aisle, we repealed a regulation that would put a factory out of business and we celebrated its repeal last Friday with the second cabinet secretary to visit my district. So excited about that blueprint for success and look forward to building upon that going forward and look forward to continuing to serve under your leadership, Mr. chairman. Thank you. Thank you very much.
▶ 0:54:24Gentleman yields back and I'd like to conclude by thanking all the members who testify today for taking time of your business busy schedule to advocate on behalf of small businesses in your districts and around the country. Our committee will keep your ideas at the top of mind as we continue addressing the issues that our nation's small businesses are facing. Members will have five legislative days to submit statements and supporting materials for the record. With without objection, so ordered. And if there's no further business, we'll go vote. This committee is adjourned. Thank you, Mr. Chair. Thank you, buddy.