▶ 0:04:15So someone else is talking. He knows how to do what I just sold it.
▶ 0:17:19uh before we get started, I want to recognize Representative Alford from the great state of Missouri to lead us in the pledge and the prayer. Would you please stand? Well, thank you, chair, for this honor. Let's go to our father in prayer. God, we're just so thankful for this committee. We're thankful for our great nation. We're thankful for administrator Leler being here. Please bless her and um uh bless our ranking member and our chair as they lead us through this uh hearing today.
▶ 0:17:45God, uh most of all, bless our 34 million small businesses in America. May the information we gain here today help them. And uh it's through your son's Christ Jesus name that we pray. Amen. I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all.
▶ 0:19:18I want to call the committee on small business to order and without objection, the chair is authorized to declare a recess of the committee at any time. I now recognize myself for my opening statement. Welcome to today's hearing, budgeting for growth and testimony from the Small Business Administration Minister Kelly Leler. I'm very excited to welcome my friend, Administrator Leler, uh here today from the great state of Georgia to testify before us. I want to thank you again for your visit to Texas last week.
▶ 0:19:44We got to show you some great things happening in the great state of Texas and where we had the opportunity to hear directly from small business manufacturers across the district as part of your Made in America road show. Now, today's hearing is an opportunity to examine how the president's budget proposal will support administrator Leler in returning the SBA to its core mission of serving Main Street and ensuring American entrepreneurs are prioritized once again.
▶ 0:20:09So, far too long, small businesses have been affected by Washington's budget mismanagement, burdensome regulations, and government overreach. President Trump's budget request makes a historic course correction by delivering over $163 billion in spending cuts, fueling American manufacturing and realigning the government to better meet the needs of our nation's biggest job creators. Now, we commend Administrator Leler's work to the right size of the SBA and her commitment to restore American manufacturing and innovation.
▶ 0:20:38Under the leadership under her leadership, the SBA will once again prioritize what truly matters to small business owners and safeguard American taxpayer dollars. President Trump and administrator Leler's commitment to made in America has begun uh revitalizing America manufacturing, reducing our dependency on foreign adversaries like China.
▶ 0:20:58From the launch of the SBA's made in America manufacturing initiative to the uh pri prioritization of skilled workforce development, administrator Leler is fostering an environment where small manufacturers and small businesses can simply thrive. I'm proud to join President Trump and Administrator Leler in support of strong American manufacturing. Last month, I introduced HR 3174, the Made in America Manufacturing Finance Act.
▶ 0:21:23The bill would increase access to loans for America's small manufacturers and ensure they have the capital they need to start and grow a business. In another major step toward for main toward and forward for Main Street, uh this hearing comes on the heels of the House passage of HR1, the one big beautiful bill act.
▶ 0:21:40This bill makes me m many of the pro small business provisions found in President Trump's 2017 tax cuts and jobs act permanent with provisions such as increased deductions for small business, bonus depreciation, and tax relief for tipped and overtime workers. This tax package definitely favors Main Street America. In addition, the bill marks a pivotal shift from the prior administration that incentivized divisive DEI and Green New Deal policies.
▶ 0:22:08uh the one centered on self-determination uh free enterprise and growth. Now, as we move forward, we must ensure that the government gets out of the way of entrepreneurs who take risks, sign paychecks, and drive American innovation. Administrator Leler, we look forward to your testimony today and thank you for your continued service in restoring SBA to its rightful role as a champion for Main Street America.
▶ 0:22:33With that, I now recognize my friend, the distinguished ranking member, Representative Velasquez, for her opening remarks. Thank you, Mr. Chairman, and thank you, Administrator Lifeler, for testifying before our committee today. Congressional oversight is essential for holding agencies accountable. And from what I have seen over the past few months, your action suggests a clear disregard for that responsibility.
▶ 0:23:00My hope is that we can have a substantive discussion today. Small businesses are hurting. They are being crushed by the administration's trade policies and creeping inflation. The Wall Street Journal small business index found 58% of small businesses say the economy has gotten worse. 42% uh points worse than January.
▶ 0:23:2666% of small businesses believe tariffs are having a negative impact. 51% anticipate a recession and a staggering 59% less economic uncertainty as their top challenge. But the data only tells part of the story. We have heard from entrepreneurs across the country struggling to keep their doors open.
▶ 0:23:51The founder of Passion Footwear shared how the breath and speed of tariffs are gutting everything she has built almost overnight. Duana Rosel, the founder of Business Management Associates, launched her small business with $500 20 years ago and built it into a multi-million dollar business.
▶ 0:24:16In February, she received stop work orders on numerous contracts and saw her business crumble. She lost 55% of her company overnight and had to let 15 employees go. It is hard for us to reconcile your golden age comments with the reality that that small businesses are facing. Today, we are looking for substantive answers.
▶ 0:24:42In a press release, you announced a plan to eliminate 2,700 employees, representing a 43% cut to agency staff. Yet, you never consulted Congress and other key stakeholders about the proposed reforms. Instead, you charge ahead on a path to disseminate the agency, erasing institutional knowledge, customer service, and leaving critical skill gaps.
▶ 0:25:11In March, the president announced SBA will take over the student loan portfolio. And you responded that SBA is prepared to restore accountability and integrity to the program. But where are student loans mentioned in the AY's mission? What does this have to do with assisting small firms?
▶ 0:25:33I want to know how you intend to take over the student loan portfolio when you are hollowing out the agency dedicated to small businesses not education turning to fraud. You have been quick to criticize the Biden administration's handling of the pandemic programs while conveniently ignoring the fact that the vast majority of that fraud occurred under the first Trump administration watch.
▶ 0:26:00And let's not forget the president fired the inspector general who was present under his first administration and has been applauded by members on both sides of the aisle in this committee. Despite numerous requests, we still have incomplete and insufficient responses to a variety of letters we have sent you. From Doge and the reorganization to closing regional offices and staffing, there has been no engagement.
▶ 0:26:30This lack of transparency underscores the need for robust congressional oversight. And then you propose a budget that eliminated 15 of the counseling and training programs, many of which support veterans, women, and underserved entrepreneurs.
▶ 0:26:48At a time when we should be expanding opportunity for those who serve our country, it is disgrateful that you are cutting the veterans outreach programs that helps veterans successfully transition into civilian life. There is so much ground to cover and I age I urge the administrator to provide substantive information in her testimony and answer our questions directly.
▶ 0:27:14Time is limited today and we need answers to our question that have gone ignored for months. I look forward to today's discussion and for more in-depth ones in the future as I have a feeling today's hearing will not be enough. Mr. Chairman, I yield back. Gentle lady yields back and I will now introduce our witness, Administrator Leler. Administrator Kelly Leler is the 28th administrator of the Small Business Administration.
▶ 0:27:41Administrator Leler was the first in her family to graduate from college at the University of Illinois and later received an MBA from Depal University. Prior to entering the public sector, she had a very successful 25-year career in financial services and technology. She served in numerous leadership positions at Intercontinental Exchange and as the founding of CEO of Bach.
▶ 0:28:02In 2020, she brought her private sector experience to the US Senate, representing the great state of Georgia, where she passed legislation to strengthen economic growth and advocated for small businesses. Her experience as a businesswoman and senator makes her a great fit to lead the SBA and to help small business across the country achieve the American dream. So, I want to thank you again for taking time to testify before this committee today.
▶ 0:28:29And I now recognize Administrator Kelly Leler for her fiveminute opening remarks. Good morning. Uh thank you, Chairman Williams, Ranking Member Velasquez, and members of the committee. I'm grateful to have the opportunity to appear before you today to discuss the president's fiscal year 2026 discretionary budget request for the US Small Business Administration. This budget reflects our AY's return to its mission with a clear strategy.
▶ 0:28:54streamline services, eliminate waste, and ensure every taxpayer dollar delivers measurable results for America's small businesses. It consolidates duplicative operations, shifts resources to our field offices who are on the front lines, and refocuses agency, our agency, on proven solutions, including our capital access program and nationwide network of small business development centers. It reflects the president's belief that small businesses are not just part of the economy.
▶ 0:29:25They are the engine of it. And that and to build a stronger, more secure, more prosperous America, we must put Main Street and our job creators first. I'm pleased to report that under President Trump's leadership and through the reforms we've implemented at the SBA, this is exactly what's happening. Main Street is making a historic comeback. Since January, President Trump has cut core inflation to its lowest level in tw in since 2021.
▶ 0:29:52He's secured over 11 trillion dollars in private sector investment. He's delivered a half million new jobs while deregulating after the last four years of massive bureaucratic expansion of the regulatory state. And he's brought dozens of countries, including China, back to the negotiating table for fair trade deals. Job creators and workers once again know they have a seat at the table. and they know that this administration has their back. Our economy is springloaded for growth, especially on Main Street.
▶ 0:30:23And I'm pleased to report that the SBA has never been more prepared to help small businesses lead the America first economic comeback. Since January 20th, we've undertaken a sweeping overhaul of the agency to refocus it on its statutory mission of supporting small businesses and fueling economic growth through free enterprise. We're cutting red tape, restoring accountability, and delivering capital to the job creators who empower opportunity, growth, and innovation.
▶ 0:30:52When we arrived, the SBA was bloated and dysfunctional, weighed down by work from home bureaucracy that promoted a partisan political agenda. The Biden administration presided over unprecedented levels of fraud and four straight years of failed audits. Our flagship 7A loan program was mismanaged to the tune of $400 million of negative cash flow in just one year.
▶ 0:31:17Oversight and accountability had broken down along with any sense of fiscal responsibility to taxpayers. Common sense had left the building along with our workforce. That era is over and it is a new day at the SBA. I come to this role with three decades of private sector experience. Following an extensive review of the financials and operating metrics, I launched a full-scale reorganization to rightsize the agency, returning to prepandemic staffing levels.
▶ 0:31:47Our team is unleashing resources that had been consolidated in Washington back out into the field among our 68 district offices in local communities. We cancelled wasteful contracts for total cost savings of more than $3 billion. I'm proud that we are working alongside the Doge team who are not partisans, but patriots and business leaders like myself who are working to strengthen the future of our nation.
▶ 0:32:13We also took urgent action to restore the financial integrity of our core loan programs by reinstating lender fees and restoring underwriting standards, eliminating the reckless do what you do criteria that put taxpayers on the hook for billions of dollars. And we implemented common sense identity and citizenship verification protocols to ensure that loans only go to eligible businesses, not illegal aliens or fraudsters.
▶ 0:32:41We made it a priority to depoliticize the agency and end the era of picking winners and losers based on race or ideological beliefs, replacing it with our nation's strong tradition of free enterprise. We eliminated DEI mandates, terminated the Green Lender Initiative, and withdrew SBA from voter registration schemes. And we began relocating SBA offices out of sanctuary cities that refused to enforce federal immigration law.
▶ 0:33:07At the same time, we're helping rebuild American industry through the SBA's made in America manufacturing initiative. We're backing new legislation to give small manufacturers additional capital. And just last month, we introduced a firstofits-kind onshoring portal to help small businesses find Americanmade supply chain partners. The results are immediate and measurable.
▶ 0:33:29In our first 100 days, SBA loan approvals have skyrocketed by 80% compared to the same time under the last administration and 20% when compared to the last when the last administration left office. Loans to the smallest businesses, those with five or fewer employees have nearly doubled. And the share of federal contracts going to small businesses is up to 23% from just 18% in January.
▶ 0:33:55So with new opportunity and a strong economic agenda, demand for capital is up, businesses are growing, and confidence is rising across the country. I'm proud to say that this is not the SBA of the past. This is a leaner, stronger, and unapologetically pro small business agency, one that supports American industry and its workers, that respects taxpayer dollars, and delivers results. I've seen the impact of these reforms firsthand.
▶ 0:34:22From Bay City to Boise, small business owners are expanding, hiring, and reinvesting in their communities. They know that for the first time since the first Trump administration, this administration is on their side. The SBA is once again serving the people who built this country. Not the globalists, the bureaucrats, or partisan political interests, but the small defense manufacturers, the local construction companies, and the founders who are putting everything on the line to live the American dream.
▶ 0:34:51Chairman Williams, Ranking Member Velasquez, members of the committee. As a former small business owner and employee myself, I firmly believe in the dignity of work, the American dream, and the power of free enterprise to lift up every job creator and worker across this country. That's what guides our work at the SBA. And I am proud to say it is also the vision that we're returning to at the SBA. Thank you, and I look forward to your We will now move to the member questions under the five-minute rule.
▶ 0:35:22Uh I now recognize myself for five minutes. Administrator Leler, I'm honored to work with you uh and the President Trump to revitalize American manufacturing. And to fuel these efforts, I introduced HR 3174, the Made in America Manufacturing Finance Act along with Senate Small Business and Entrepreneurship Committee Chair Ernst to increase access to capital for America's small manufacturers. Now, HR 3174 increases the maximum SBA loan size for small manufacturers from 5 million to $10 million.
▶ 0:35:51This bill addresses a concern that members from both sides of the aisle have discussed. So, Administrator Leler, can you explain how increasing access to capital and SBA lending programs will actually help America's small manufacturers? Thank you, Chairman, and uh thank you for the opportunity to visit your district last week. It was wonderful to visit two manufacturers, Staccato and IDMe Home. It was really uh confirmative of uh our move to expand access to capital for manufacturers.
▶ 0:36:18We see that made in America is happening and it's growing across this country. But what we also see is that our great manufacturers of which there are thousands in in everyone's home state and and they're growing is that advanced manufacturing, robotics, AI, there's a tremendous opportunity to increase productivity and growth through these factories by allowing them to invest more.
▶ 0:36:40So doubling that loan from 5 million to 10 million will provide needed access not just for capital equipment but for hiring and investing in R&D which is perfectly timed with the uh big beautiful bill act which will encourage uh these manufacturers which are springloaded to invest and hire in this country. So it's all part of the uh administration's progrowth proworker agenda that is going to fuel economic opportunity across every community in America.
▶ 0:37:07So, thank you and I I do hope to earn the bipartisan support of this committee for your important bill. Now, one thing we know well in Texas and one thing we know well in Texas, Washington DC does not know best. Now, the Biden Harris administration expanded the SBA's mission to include actions unrelated to entrepreneurs such as cutting deals uh with the state of Michigan to engage in electioneering efforts in 2024.
▶ 0:37:32So, how have you been right sizing the SBA and redirecting the agency back to its mission of helping Main Street America? Chairman, you're right. Um, we uncovered the uhou that you referenced with the state of Michigan for uh electioneering voter registration and we've certainly heard from other states where that was attempted.
▶ 0:37:52um we won't tolerate partisan uh activity, but we certainly um must return to our mission of supporting small businesses on Main Street across this country and not get distracted from that mission uh of serving small businesses. So, we have undertaken an aggressive effort to ensure our loan programs are more available to more entrepreneurs. That's already working. We have seen an 80% increase in our loan growth uh to 26,000 loans in President Trump's first 100 days.
▶ 0:38:22So, we're on track for a record year. That's about 2,000 loans to Main Street across America every single week. So, we're excited about that refocused mission of this agency. Thank you. Now, you have an inspiring background that makes you incredibly uh well positioned to fight for Main Street as the head of the SBA.
▶ 0:38:42From businesswoman to senator, you have a unique perspective and knowledge and knowledge based on what it takes for small businesses to thrive and how important it is for foster to foster an environment that allows small business to do what they do best. That's why it's critical to pass the one big beautiful bill act and unleash American entrepreneurship. So, in the time that I have remaining, can you explain why it is so important to preserve the favorable small business provisions? Chairman, you're right. I was raised uh in a fourth generation farm family. now five gener generations.
▶ 0:39:12Uh they also started a small trucking company. Um great entrepreneurs that never called themselves entrepreneurs but had all the challenges uh facing, you know, taxation, uh excessive regulation. And this bill, what it does is return power to small businesses by making sure their taxes stay low. And I was disappointed to see that every uh Democrat member of this committee voted against small business tax relief.
▶ 0:39:39Uh what it does is provide small businesses that certainty that they will have a 23% 199A pass through deduction. They will have 179 expensing accelerated depreciation 100% expensing from made in America. And it comes with a $1.6 trillion spending cut that reduces uh the the massive inflation and the cost of government in this country. That's what taxpayers voted for under President Trump. This bill is pro small business.
▶ 0:40:10It's prow worker and it's prog growth. So we at the SBA are proud to support it. Thank you very much. I now recognize I haven't remaining my time. I now recognize the ranking member for five minutes of Good morning administrator Lifer. uh members of this committee has sent you nine letters requesting information on the major changes at SBA.
▶ 0:40:40Our letters went unanswered, questions were ignored and documents were not provided. We have the right to exercise oversight of the agency. So would you commit to responding fully and promptly to all oversight requests? Yes or no?
▶ 0:41:02Uh, ranking member, we've uh responded to every single letter and uh we've been very focused on ensuring that this agency has great transparency. We've put out numerous announcements. We've responded to every letter to make sure that you have I look forward to working with you. I want to make sure that our small businesses have bipartisan support. So I want you to know that this type of response is unacceptable that we expect for you to answer our question point by point.
▶ 0:41:35Real answer. What I'd like to say is that what we're focused on is serving the needs of small business and what we have done in the last uh 100 days is make sure that small businesses know that we are there for them. For the very first time, this agency was working from home. my time. I have too many reclaiming my time. I have too many questions and I waited this long uh to have this um opportunity.
▶ 0:42:05Miss Leler, how many employees resigned through the deferred resignation program in round one and two? Ranking member, we have taken a very careful review of the agency to streamline it. The agency doubled under the Biden administration during COVID and never returned to the size. I just wanted to know the numbers. It's a question about how many employees. Yes, ma'am.
▶ 0:42:31At this point, we have reduced the agency headcount by 2700 employees, returning it to the same size that it was during the first Trump administration when small business was booming and we had the best economy in my lifetime. We have heard that the office of field operations saw a 20% cut. Is that correct? No, ma'am. The Office of Field Operations had really been depleted under the Biden administration, consolidated back in Washington, and our small businesses were left without contacts on maintenance.
▶ 0:43:0290% of the working from home. That the 20% is is is incorrect. So, how many field offices are operating with a reduction of 25% or more employees since January? ranking member. What we found was that we had 35 offices across the country that had zero or one employee working in them. What we've done is streamline and rightsize the agency to put our mission focus back on small businesses on Main Street to make sure critical resources.
▶ 0:43:32Will you provide the committee with those numbers? Of course. We'd be happy to work with you and share information. Will you provide the committee with copies of the agency reduction in force and reorganization plans that you submitted to OPM on March 13 and April 14 as well as the monthly reports beginning with May? I think you'll find this is the most transparent administration ever had transparent or not. Would you submit to us?
▶ 0:44:00We have the right to know information with you as appropriate. Um, I saw that you uh praised uh Elon Musk uh last week uh in a tweet and so did you see Elon Musk recent tweet saying that the Trump administration's massive outrageous pork field congressional spending bill is a abomination. Do you support his position on the reconciliation bill?
▶ 0:44:30No, what I was shocked was that every single Democratic member of this committee voted against No, I'm not talking We're not talking about Democrats. We we Democrats voted against the bill exactly because of the characterization of Elon Musk. So the ugly bill short chain people in this country taking more than 700 million people will be affected by the cuts on Medicaid.
▶ 0:45:01Ranking member this is not true my next my bill supports tax cut bill that secures our border cuts $1.6 trillion. You're talking about the beautiful bill. I'm talking about the ugly bill and the characterization of Elon Musk that was paraded on every meeting in the White House. He was good then.
▶ 0:45:25Now that he is sending a warning to the American people that this bill is going to bankrupt our government. You don't agree with that? Ranking member I yield back my time. Lady yields back. I now recognize Miss Van Dyene from the great state of Texas for five minutes. Administrator, thank you so much for being here today and I really appreciated spending time with you in Texas and all of the small businesses that you visited while you were down there. I think they loved seeing you.
▶ 0:45:53It was great that so early in your term that you have gotten all around the country. I applaud you for that because I know it's not easy for you and your family. I love the focus though. I like the responsiveness. You were just asked questions about this one big beautiful bill. Can you tell me a little bit how this one big, beautiful bill helps small businesses and why it was shocking to see every single Democrat, including those on the Small Business Committee, vote against it. Absolutely. Thank you, Congresswoman.
▶ 0:46:20I uh appreciated the opportunity to be with you in your great district and and visit manufacturers that are really making uh a difference in America and uh look forward to continuing to meet with more small businesses across the committee's constituencies. Uh the big beautiful bill act is vitally important to main street America. It is uh it's progrowth. It's pro it's pro small business and it's proworker.
▶ 0:46:44Uh we have never had a bill like this in our country that ensures that small businesses can thrive with a 23% pass through deduction immediate expensing. Uh it ensures that we start to cut spending $1.6 six trillion dollars in mandatory spending uh that uh drove inflation that small businesses were crushed by under the last administration. It secures the border. Small businesses have been suffering from crime in their communities, needless crime uh that went uninforced.
▶ 0:47:13So, this is really a dream bill and for small businesses, it prevents a nightmare happening that every Democratic member of this committee voted for to raise taxes on small businesses. Trillions of dollars by 23%. Small businesses could not make it through a 22% tax increase. And so, I'm really grateful uh for the support of this bill and um look forward to, you know, continued uh reductions in spending and taxes.
▶ 0:47:41So, I've been working with small businesses for about 20 years now, and I have never heard them say, "We want to have more regulations, right? We need the business the government to get out of our way. Over the last four years under the Biden administration, we have seen $1.8 trillion in additional new regulations." The only thing that I've heard from my Democrat colleagues is talking about tariffs. Now, you have talked to small businesses across this country. I know you have. Tell me how tariffs are actually helping the small business Absolutely.
▶ 0:48:09when when we've gone across the country, literally from New York to California to Utah to Tennessee to Texas, uh to New Jersey to Pennsylvania, small businesses are investing and growing, but they say they have three big challenges. Uh regulation is always one of those three. Workforce is always one of those three and the threat of rising taxes.
▶ 0:48:31And so small businesses are grateful that they now can have the commitment of fair trade, something that they could have never dreamed of under the Biden administration who was pushing more and more uh trade imbalance. We had a $1.2 trillion trade imbalance in this country in one year that had grown by 20%. That meant small businesses were being robbed of opportunity while countries uh around the world erected barriers against our small businesses.
▶ 0:48:59is I visited one logistics operator in New Jersey that said that he used to have 5050 uh import export. It had gone to 90% import 10% export shutting small businesses out of markets around this world. Small businesses can now compete on a level playing field thanks to President Trump's fair trade agenda. Thank you very much.
▶ 0:49:20Yesterday, the rules committee favorably reported my American Entrepreneurs First Act, which would codify um President Trump's executive order and your new rule, by the way, that all SBA loan applicants have their age and citizenship status verified. Last night in rules, I was told by a number of my Democrat colleagues that we have absolutely no experience with this at all. We don't have any evidence that there has been any kind of use of of illegal immigrants receiving uh SBA funds. What have you found, Congresswoman?
▶ 0:49:48Thank you uh for the question. It's really important that everyone in this committee hear this. The uh Doge team did help us identify $630 million of fraudulent loans that were granted to individuals over the age of 120 or under the age of 11. That's why absolutely it's critical that we have age verification. We also found uh SBA loans to non-citizens. We were able to cancel those. They were approved under the Biden administration. Uh that's why we need citizenship verification.
▶ 0:50:17We also heard some some questions about your um uh uh your your new rule that you want to be able to move S SBA offices out of areas that are sanctuary cities. Can you say anything about that and the importance of it? Well, it's vitally important. We just saw yesterday uh in Boston, one of the sanctuary cities that we'll be leaving uh 1,400 illegals, gangbangers, traffickers, sex offenders uh were arrested.
▶ 0:50:44We we cannot support cities that don't support federal law and I'm grateful to ICE and Secretary Gnome for advancing uh these efforts. Thank you very much for your testimony. I yield back. Gentle lady yields back. I now recognize Miss Sculton from the great state of Michigan for 5 minutes. Thank you, Mr. Chairman. Uh Administrator Laf, thank you so much for joining us here today. Uh, I'm hearing from a lot of small business owners in my district who are feeling the deep uncertainty of our nation's economy right now.
▶ 0:51:14I find it deeply concerning that in the midst of trade wars and fluctuating tariff policies that questionably seem to uh benefit certain uh segments of the the population over others. that in the midst of all this uncertainty and speculation about inside deals, your agency fired its independent inspector general, Mr. Wear, without proper notice to Congress.
▶ 0:51:42This is an independent watchdog who is responsible for uncovering waste, fraud, and abuse in the district. firing him does not do anything to alleviate the concerns of small businesses in my district.
▶ 0:52:04This is a fact that, you know, has raised concerns again about what type of inside dealings are happening within the Small Business Administration, who's getting preferential treatment. That is why I am introducing a bill today that would protect inspectors general from political retaliation to avoid illegal actions like this in the future.
▶ 0:52:26Miss Laughafler, can you please describe the process currently for finding a new inspector general and the status there? Well, we're certainly in the process of filling that role. It's an important role and it's important to know the deadline for for trying to find someone and get a new independent inspector general in place. Uh we'll we'll we're already working through it and we'll have more to date to we've identified candidates and we're working through that nomination process.
▶ 0:52:55So we'll when you expect the role is incredibly important but let me just say the president it's incredibly important the seat has been vacant after a political firing to remove an independent watchdog. We all care about waste fraud and abuse. Miss Laughler reclaiming my time. We all care about waste, fraud, and abuse. That's the purpose of an independent watchdog in this agency, and you fired him and left this position vacant. What is your timeline for getting this individual replaced? We will have an individual in the seat as soon as it's confirmed in the Senate.
▶ 0:53:24But I can tell you, when do you expect to have general overlooked massive fraud over the last four years? We want to get to the bottom of fraud. We want to make sure how are you going to do that without an independent administration for getting We are not going to allow have a timeline for getting a new nomination. We will have one as soon as we can get the position confirmed and we are working. You need a nominee before you get We'll be glad to work with your office on once we have a clear timeline.
▶ 0:53:50It's an independent office and uh we we know it's an independent office which is why it is critically important. What steps will you take to ensure that this individual can in fact operate in an independent nature? We we actually need this position to be filled because the last inspector general overlooked massive fraud that was trying to be forgiven on taxpayer uh money by uh then it would seem incumbent to to make sure that you have an individual Yeah.
▶ 0:54:19immediately in this individual. our our office will be following up to make sure we we would love your support in making sure that this this bill can make through Congress. We are we are hoping it will be a bipartisan bill to ensure the independent nature of this office. I have one more question. In my district uh is home to an incredible women's business center called Grow.
▶ 0:54:43It has made remarkable investments in our small business community, deploying over 55 loans totaling over half a million dollars in just one year. The president's current budget proposal would eliminate women's business centers like Grow, leaving many entrepreneurs, particularly women, without the financial and technical support that they need to grow their businesses.
▶ 0:55:04At a time when this administration and your own remarks have said that they are going on an attack on quote DEI, many women feel incredibly attacked by this administration and unable to support their businesses. I convened a a women's business a women business owners roundt in my district and that was one of the number one concerns that women said that they they had right now with the attacks from this administration.
▶ 0:55:29What steps will the SBA take to ensure that these small businesses are made aware of any changes and to protect these critical services? Congressman, the the top concerns I hear from the business owners I meet across the country are ensuring that taxes stay low. You you just voted to increase their taxes. Uh our our efforts at the SBA are streamlining our services to ensure that there's not confusion if you're a let's say a woman.
▶ 0:55:55uh to be clear, let's let's put a let's put a pass through uh on there that actually supports and prioritizes small businesses. And I think we'd get unanimous bipartisan support from this committee, but we know overwhelmingly the benefits went to the large corporations, not the small businesses. Thank you. I yield back time. Gentle lady yields back. And let me take a a moment of personal preference. The administrator's last name is pronounced Leler. So I now uh recognize Mr. Else from the great state of Texas for 5 minutes.
▶ 0:56:25Thank you, Mr. Chairman. Thank you, administrator. Uh before we start our talk, I'd just like to point out that uh I think it's ironic that it's critically important now to have an inspector general in place when we watch the SBA and the previous administration waste billions and billions of dollars that I didn't hear the other side arguing that it's critically important that that inspector general get to work and find that money. It's gone. We're never getting it back.
▶ 0:56:54So, let's take a little step back and not be too hasty to say it's critically important now. It's always been critically important, but it wasn't critically important a year ago. Thank you for being here, Administrator Leer. Thank you for coming to the state of Texas to see a small business in our neck of the woods in North Texas.
▶ 0:57:12You could be doing a whole lot of other things, but instead you're going out throughout the country to visit small businesses that are benefiting from your If you've cut 2,700 people and you've increased the loans approval rate 80%. I think that's exactly what the American people elected this administration and Donald Trump appointed you to do for small businesses in this country.
▶ 0:57:38You come from a small town of 600, raised on a soybean farm. You had to mortgage some of your own land to go to business school. So you grew up along with three members of my staff. One of whom J.R. over here is from Marian. My deputy chief is from another small town around there. People like you who have a a vested interest in small businesses in the United States because that's how you were raised.
▶ 0:58:04Your parents sent you to college um on thin margins as soybean farmers. So you knew exactly what is required at this job. Your predecessor was an administrator and a consultant. you know exactly what you're talking about. So, your expertise is extremely important. So, tell me, um, we noticed when we did a trip, a surprise trip to the SBA under the previous administration, they had troubles finding people to sit at the desks.
▶ 0:58:31What has your policy been on requiring people to come back to work? Thank you, Congressman Elia. It was wonderful to be with you in the district and um, you you raised a number of important issues. Certainly, Inspector General is something I think we all agree on. we need to have someone in that seat that will actually do the job. And uh we we have sent that individual to the Senate and are just waiting the Senate confirmation.
▶ 0:58:54So I I well I can't confirm uh the specific date and and can't speak for the Senate, I can confirm that we all agree accountability is vital. Um what I can what I can tell you about um small businesses is as I travel across this country is they're grateful to President Trump for fighting for them finally to have fair trade to ensure that small businesses compete on a level playing field for the first time in in three decades.
▶ 0:59:20And one of the things that we're seeing uh certainly is the access to capital uh is is growing because of our efforts to streamline the agency and get rid of the bureaucracy that was pre preventing small businesses from being a focus of the agency. We the agency it was impossible to touch a small business when I first got to the agency because there was so much bureaucracy and uh the agency had doubled during the Biden administration.
▶ 0:59:46Uh, when I walked in, 90% of the staff had been working from home for four years. And I filmed that. I put a video out. It had 30 million views. We now have most of the staff back in office. We're streamlining the agency to refocus on small businesses. And it's working. It would seem that up here in Congress, it seems that all these administrative jobs, uh, it's a jobs program for GS's. That's not what the American people are paying for. It's their money.
▶ 1:00:15And so therefore, people going back to work at the SBA to provide small loans for small businesses of uh employ with five or fewer employees is exactly what you're so supposed to be doing. So is there a correlation between telling people you're fired if you're not working and the increase and the uptick in uh in going back to to work, but also the increase in in loans approved?
▶ 1:00:36Well, certainly there there are mission-minded individuals at the SBA, and I'm grateful for the the good individuals at this agency, and I'm thrilled that we've put 30% of our staffing back out in the field. You're right, it had consolidated up in Washington under bureaucracy and administrative rules and and rules that really wrecked the loan program. So, we've right-sized and the agency and and reshuffled the loan program back to what it was under the Trump administration when it worked and wasn't going into default and costing taxpayers billions of dollars.
▶ 1:01:06I'd finally like to thank you with the time remaining to say thank you for being a very successful business person, pulling yourself up for by your bootstraps, and you can do anything you want with your life right now. You're giving back to the American people by taking on this very, very difficult job. And furthermore, you're leaving Washington to go out and visit these businesses that they're going to be uh uh uh getting the benefits of what you're doing. So, thank you very much. I yield back, Mr. Chairman. Uh gentleman yields back.
▶ 1:01:32I now recognize Miss McCyver uh from the great state of New Jersey for 5 minutes. Thank you, uh chairman and ranking member for convening this hearing today. And thank you to uh the administrator for being here with us finally. We've been waiting for months for you to get here. Um, I do agree it is a new day at the SBA, a new depressing day. Uh, since this administration began, we have heard almost nonstop concerns from small business owners fighting for their businesses survivals.
▶ 1:02:01All while the all while the SBA cuts staff, plans to take on more than $1 trillion student loan portfolio and removes critical needed resources from communities across the country. administrator, you should be working with us as well too on the Democratic side to support our small businesses. You mentioned you came to New Jersey. Next time, give us a call. We'll love to be with you as well, like our uh members across the aisle have been.
▶ 1:02:27I led several of my uh New Jersey and New York colleagues in a letter to your department expressing concern that your plan to remove SBA offices from socalled sanctuary cities would negatively affect my state and the surrounding region which contributes trillions to the national GDP. In response, you sent the letter describing these concerns as concerns for illegal aliens and characterizing these communities as criminal sanctuary cities.
▶ 1:02:56As head of SBA, do you care at all for aspiring entrepreneurs in these communities? You so-called label them as sanctuary cities. Do you care? Yes or no? Congressman, I I'm deeply concerned about our cities that Do you care? Yes or no? Absolutely. Yes. I'll take that as a yes. Do you commit right here to stop your plans to do away with the resources many of these businesses rely on? Yes or no?
▶ 1:03:23Congressman, we're spending our resources to ensure that all No, I'll take that as a no because obviously you don't care. These are businesses that are not labeled as Democratic or Republican. You're going to hurt all businesses by doing something like this. You mentioned working with Doge to identify what you called illegal loans to undocumented people. However, even after requests from us to review Doge access, we have had silence, complete silence from you and your office. And now we hear about this case.
▶ 1:03:52Will you commit to allow members and committee staff an inc camera review of these cases? Yes or no? Uh we will commit to working with you to unders uh so you understand the importance of the cuts that um yes or no. Yes. Do I hear yes or no? Okay. We will absolutely look forward to working with you. Okay. Let's let's take that as a yes. We'll wait on the response. Is vital. I'm reclaiming my time on February 3rd. I have a lot of questions. Administrator, no disrespect, but we've been waiting for you for months. So you have to let me get through my questions.
▶ 1:04:21On February 3rd, 2025, Musk and Trump's Doge team invaded the SBA and gained access to SBA systems, including its human resources, contract, and payment systems. This type of access to government systems by unauthorized, unvetted individuals, is unpredict unprecedented. The committee continues to request specific information on the level of Doge access to SBA systems that you have not provided.
▶ 1:04:47Yet you regularly cite the information that Doge releases about SBA that appears to be obtained from those systems. What SBA system did Congresswoman, the premise of your question is entirely false. Our Doge partner is an SBA employee who has been vetted as has the entire team. Administrator, did gain access to employee personnel files? Congressman, this is exactly Did gain access to employee personnel files? Yes or no? These are yes or no questions. administrator.
▶ 1:05:17Okay, I'll take that as a yes if you're not responding. Did gain access I'm reclaiming my time. Did gain access to the personnel identifiable information of small businesses? Congressman, we yes or no administrator to follow the law as SB employee. Okay, I'm going to take that as you not answering. I'm reclaiming my time. I'm reclaiming my time. What information was obtained and what is being what is it being used for? Congressman, we'd be happy to work with you.
▶ 1:05:46We've been very transparent about the cost. I know you have an administrator we've been doing at the age of 35 empty offices. We've talked about those. It's a yes or no question. We have 11 data centers that we don't need. We need one data center. Yes or no? Administrator, you're saying you're saying a lot without saying anything at all. We're trying to get answers to our questions so that we can focus on small businesses. The bureaucracy, I yield back. The administrator is not answering my questions. We've been waiting for months to get answers to these questions.
▶ 1:06:16You're saying a lot, but you're not saying anything at all. With that, I yield back. Gentle lady yields back. I now recognize Mr. Alford from the great state of Missouri for 5 minutes. Minister Leler, would you like to answer that question, please? Thank you, Congressman. Uh the the work that we've done in partnership with Doge is based on data.
▶ 1:06:35Uh, as a businesswoman, I am calling the shots at FB SBA, but I can tell you the work that the our Doge partners who are employees of the federal government who have been vetted have been tremendously helpful in helping us streamline the agency to ensure that small business is the focus of this agency. It was a bloated bureaucracy that was costing taxpayers billions of excess dollars that didn't produce results for small businesses.
▶ 1:07:02We're getting back to that focus and ensuring that we're getting to the bottom of the fraud that the Biden administration tried to sweep under the rug and we're going to continue to do that work in in service of taxpayers and small businesses. Well, thank you and I I do appreciate you being here and you know there's been a lot of uh outcry from our friends on the other side of the aisle that uh you're finally here. They've been asking you for a long time. It's taken so long. Uh you've been on the job 104 days.
▶ 1:07:31Why did you want to come here now? You've made so many positive changes to the SBA. There's a lot you still have to do, but why did you want to come here specifically now? Thank you, Congressman Alford. I am really excited to be with all of you. I I hope that we can work together in a bipartisan manner to ensure that small businesses are served. They represent 99% of all businesses.
▶ 1:07:53And as I've in my first hundred days, as you mentioned, I've been here 104 days, about three months and a week, uh making sure that I hear from small businesses so that my viewpoints can be informed by what's actually happening on the ground. And it's quite different from uh the viewpoint uh espoused by your Democratic colleagues on the other on the other side because what's happening on Main Street is tremendous growth and the SBA is proud to be part of that.
▶ 1:08:19Uh last week I was in Texas working uh with veterans uh visiting manufacturers, ensuring that um I understand the priorities of small businesses. And so I'm here to share those viewpoints. Obviously uh some of my viewpoints aren't welcome and and they may not like the answers, but we're going to be very transparent about what we're doing to serve small businesses. And I look forward to talking about that with you.
▶ 1:08:41Well, I'm just pleased that we have a cooperation from the current administrator, one that we really did not have with your predecessor, which was very disappointing. Uh, but I I know you have a spirit of cooperation and bipartisanship, and that's what this committee is about. Uh, I don't want to see it devolve into something other than that. And under the leadership of the chair and the ranking member, hopefully that will not. Um, why is it so important that we pass the returning SBA to Main Street Act?
▶ 1:09:10Well, certainly the SBA's focus had been really politicized uh historically in the last four years. We we saw DEI, Green New Deal initiatives, um you know, focusing back on our main street job creators, getting them the capital that they need, uh ensuring the integrity of those programs, make sure that they're there for the future.
▶ 1:09:34Um, but also so that small businesses aren't confused about the services available to them, that they're very clear about the the lending uh that the SBA guarantees, that we have good lending partnerships as well as great uh counseling partners in our small business development centers.
▶ 1:09:51So, um I look forward to um ensuring that we have uh great opportunities to make permanent some of the things that we're doing at the SBA through Want to thank you for updating the SBA's SOP to include language inspired by our bill, the Small Business Technological Advancement Act, to allow 7A bars to utilize their loan for digital tools. What other actions are you taking at the SBA to help small businesses thrive in a digital age?
▶ 1:10:17Yeah, certainly the um growth that I've seen as I as we go out on our manufacturing tour of advanced manufacturing uh the sophistication of our supply chain is increasing which is raising the the cost of investing in uh manufacturing and all small businesses. The technology tools are great ways to increase efficiency and productivity at small businesses.
▶ 1:10:39So increasing our loan sizes from 5 million to 10 million for manufacturers will help um really ensure that uh an environment that is springloaded for investment and uh capital that they have those resources uh available through loans backed by the SBA. Thank you. I have about 30 seconds left. Uh I want to correct the record uh from previous questions.
▶ 1:11:02is the population of America is about 330 million and so it would be impossible for 700 million to be harmed from the legislation we're putting forth. Do you plan on coming back to testify? I would love to. I very much support um the opportunity to share in a bipartisan manner the um work of uh the SBA and to ensure uh great transparency and collaboration. Thank you. I yield back. Gentleman yields back. I now recognize Dr.
▶ 1:11:31Morrison from the great state of Minnesota for 5 minutes. Thank you, Chairman Williams, and thank you uh Administrator Leler for taking the time to testify today. Time's short, so I'm going to jump right in. Uh were you consulted on President Trump's Trump President Trump's tariff policy? Congresswoman, I I certainly stay in constant dialogue with President Trump. There is no stronger advocate of small business than President Trump.
▶ 1:11:56He knows that small business is big business and he also knows that small businesses have been incredibly disadvantaged by unfair trade policy by an unlevel playing field that not only disadvantages Thank you, administrator. So I assume you support President Trump's tariff policy, I guess if you could call it a policy. Well, I would say that it's a fair trade policy that has not been in place for 30 years that has created a massive disadvantage. Thank you, administrator.
▶ 1:12:23Are you aware of the tariff exemption that President Trump announced on April 11th for smartphones, laptops, and televisions? Yes, Congresswoman. Do you support this exemption? I I support the president's actions to ensure that we have fair trade and that's Would you support a tariff exemption for small businesses? What I support is a level playing field for small businesses. Ma'am, yes. Say this is what our small businesses have been up against. this book, 400 pages of unfair trade.
▶ 1:12:53Respectfully, administrator, yes or no, would you support an exemption for small businesses from the trade? I support ensuring our small businesses never take that as a no against this again. Administrator, the US Chamber of Commerce has asked the administration for an exemption for small businesses. Small businesses in my state and across the country are asking for an exemption. Senator Curtis even said to you when he when you testified in front of the Senate Small Business Committee that small businesses are being hurt by the tariffs and the uncertainty without an exemption.
▶ 1:13:22They're going to be forced to raise prices for consumers, lay off staff, go out of business. I think it's completely unacceptable that this administration is willing to give exemptions to massive tech corporations who have the resources to lobby the president while disregarding the outcries of small businesses from so many small business owners who are in disbelief. They're frustrated. They're scared that everything they've worked so hard for to build is going to be taken away from them.
▶ 1:13:49I urge you to do everything you can to advocate for a tariff exemption for our small businesses as the small business administrator, our nation's leading advocate for small businesses. Congresswoman, our president is negotiating fair trade for the first time in 30 years. Who is advocating for the American worker for the president? Please, administrator, small businesses need an exemption from the tariff war. Okay, I want to turn to our veteranowned small business owners. I have the honor of serving on the Veterans Affairs Committee, and I'm the wife of an Army combat veteran.
▶ 1:14:18In March, we learned that VA canled over two billion dollars in contracts. Reporting suggests that 90% of the canceled contracts were were with veteranowned small businesses and service disabled veteranowned small businesses. I joined my colleagues on this committee and the Veterans Affairs Committee in sending a letter to Secretary Collins to determine how many small business owners were impacted by these contract cuts. We have not received a reply yet from the VA.
▶ 1:14:41The SBA may not administer these contracts, but these are small businesses being affected, and the service disabled veteranowned small business program is an SBA program. Are you keeping track of how many contracts with service disabled veteranowned small businesses or veteranowned small businesses the VA canled? For the first time in four years, this administration is back focusing on veterans. We have seen Minister, how many small businesses are being impacted by these cuts?
▶ 1:15:06Congressman, we're partnering with the VA who the president the small veterans will be better off under President Trump. He increased their budget by 5. Administrator, what is the SBA doing to support the veteranowned small businesses and service disabled veteranowned small businesses impacted by these contract cuts? I'm the daughter and granddaughter of veterans. I served on the veterans affairs committee in the Senate as well. Uh we are making sure that our veterans are Ma'am respectfully, will you commit to working with Senator Secretary Collins to get us this information? Absolutely.
▶ 1:15:35I just entered into anouou with Secretary Collins to ensure that there is that partnership and I look forward to delivering real was at Joint Base San Antonio last week with veterans. Wonderful. One final question. You say you're focusing on field operations to improve delivery and support to small businesses, especially in rural areas, but you cut the district office workforce by more than 20%. So, how do you reconcile the cuts with more support and access to reliable and timely customer service? Well, I reject the idea that we've cut the field.
▶ 1:16:04We've returned people to the field. Uh 90% of who were working from home and not even in the field. So, we're strengthening our field organization. We're streamlining it to ensure that they're focused on small businesses. And have you appointed anyone to head up the office of rural affairs yet? Yes, Congresswoman, we have. Wonderful. Looking forward to hearing more about that. Um there's been a characterization of the way uh the minority voted on the uh ridiculously named One Big Beautiful Bill Act.
▶ 1:16:30Uh, and I just would like to point out that the majority actually voted to take health care away from kids and moms, voted to explode the national debt, and to pay for tax cuts for the wealthiest among us. Thank you for being here today, Administrator Laughler, and I yield the remainder of my time. Gentle lady yields back. I now recognize Mr. Loa from the great state of New York for 5 minutes. Thank you, Chairman. Administrator, good to see you. How are you?
▶ 1:16:57Uh, administrator, before you were the head of the SBA, you earned an MBA, you were a CFA chart holder, you founded a fintech company, and you served in the US Senate. Is that right? That's correct. And you've been the head of the SBA for about four months now. Uh, three months and a week. I think somebody said 107 days. That's uh pretty neat. That's right. Uh, and you've been pretty busy. You've been touring the country uh supporting America's small businesses on your Made in America Road Show. It's That's right, Congressman.
▶ 1:17:24got to see you out in New York, which was uh wonderful to see all the manufacturing happening on Long Island. And isn't it true that of all the places you've visited, Long Island was the best place you visited? It's certainly memorable. It's important. I object. Um I hate to put you on the spot, but when you were on Long Island, do you remember the technology company Orbit that we met? I do, Congressman.
▶ 1:17:46Um, it's a American company located on Long Island and they do what uh many Trump trade policy critics uh say can't be done in the United States of America. They make technology products like smartphones, laptops, and tablets. Um, Madam Administrator, I'm certain that you and I agree that President Trump is right to want to protect our supply chain from international disruptions and bring manufacturing back to America.
▶ 1:18:14Um, my question is, what can the SBA do to help small businesses like Orbe who help accomplish those worthy goals? Well, we certainly see manufacturing growing across this country. Our loan volume in our 7A program for manufacturers is up 74% in President Trump's first 100 days, demonstrating an investment in manufacturing like never before. Uh, 1,120 loans.
▶ 1:18:41uh certainly saw that taking place on Long Island and that's why I am grateful for the chairman's leadership on the Made in America Manufacturing Finance Act uh which I hope in this committee would be bipartisan to get more capital in the hands of our innovators those that are pro providing uh jobs and uh production of critical technologies like 5G and cell phones and other uh infrastructure that this country so greatly needs and we'll continue to work through that.
▶ 1:19:10Recently, we launched our onshoring portal for small businesses. It's uh made available on the SBA website for small businesses to source products domestically. It lists over 1 million domestically sourced manufacturing uh sources to strengthen supply chains domestically. So, those are just some of the things we're focused on. Administrator, that portal is great for the folks who will watch us later on YouTube or wherever else. Where can they access that portal?
▶ 1:19:37Uh it can be found on our homepage at sba.gov and you click into the portal and you can choose from three private sector databases that list all kinds of products uh produce even uh production materials and sourcing domestically is is the focus of that portal. And and when you Google um make onshore great again it it gets you to your website. Is there any fee charge or is there a sign up barrier to access that portal? There's no there's no cost.
▶ 1:20:07It's made available through the SBA's resources. Love it. I was on it this morning. I think that many of my constituents and small business owners will uh will gain from that. Uh shifting gears, you were caught off several times when responding to the ranking member and others questioning. I wanted to give you some some time to reply. Uh first on the number of staff at the SBA, my friends from the other side of the aisle are criticizing you for bringing that number of SBA employees to 2700. Madam administrator, why is 2700 the right number?
▶ 1:20:37Well, our our reductions total 2700. The uh total staff would be 3,800 uh post uh reductions and certainly um that excludes our disaster operations which scale up and down uh and and certainly have been incredibly responsive already putting out more disaster loans uh $3.4 4 billion dollars in disaster loans operating across 1300 counties in this country right now of 25 disasters. So we're scaling that very well.
▶ 1:21:07But the right bigger is not more efficient. And what we're finding is that as we reduce bureaucracy, we get more focused on small business. And the results are in the loan numbers that you see. It's uh we're more productive. uh small businesses are telling me in the field that they see that we are back uh after a long hiatus and we're going to be able to innovate and become even more productive for small businesses at that level. Great. I I appreciate that.
▶ 1:21:31Bringing us back to a preandemic number I think is right for America of wage growth, GDP growth, inflation rates, number of valid loans made and number of SBA employees. Of those five, which is the least valuable metric to analyze the SBA's performance? Number of SBA employees. Thank you. I yield back. Thank you very much. I now recognize Mr. Trant from California for five minutes. Thank you, Chairwoman. Uh Madame Administrator, good morning. Welcome.
▶ 1:22:00Thank you for being here. Uh the ranking member Velasquez and I sent you a letter in February and May uh requesting information regarding terminated or frozen funding for federal grants and contracts at the Small Business Administration. After months of repeated requests, I'm glad you finally got around to responding yesterday, uh even though it was due months ago.
▶ 1:22:21Unfortunately, your letter still failed to provide specific details or a comprehensive list of all SBA programs, services, grants, contracts, and other funds that has been frozen or terminated. To add injury to to add insult to injury, uh your fiscal year 2026 budget also proposes to eliminate funding for 15 of the entrepreneurial development programs which provide vital counseling and training to small business small businesses in my district.
▶ 1:22:49Your cuts will shutter the Orange County Women's Business Center in Fullerton, which my constituents rely on to grow their careers and our economy. My constituents are hurting because six months into the Trump administration, the SBA and you have delayed and cancelled congressionally mandated spending under your leadership. So, I wanted to ask you today, how many SBA programs, services, grants, contracts, and other types of funding have been cancelled, frozen, or delayed? Uh, zero.
▶ 1:23:18we uh what and thank you for your letter. Uh if we were delayed, it's because we were making sure that the grants that were not administered under the Biden administration, uh a 100 women's business centers had not received their grants for four years. Uh $17 million. We had to come in and clean up the mess of the last administration for not paying. We have not canceled their grants.
▶ 1:23:43Certainly, our new budget streamlines to get rid of the confusion that small businesses face on Main Street about who they should visit when they have questions about the SBA. We have our field offices, of which there are 68. We have 1,000 small business development centers. It's uh there's complexity and if you layer in all the other nonprofits that this agency was making grants to, we'd almost become a zero. You said zero. So, thank you for that uh testimony.
▶ 1:24:10Uh, administrator, I want to focus on the importance of women business centers, WBC. My district is home to Orange County's Women Business Center. In 2024, they helped 118 new businesses start in Orange County and created over 500 jobs. Despite their proven track record of creating new jobs and empowering female entrepreneurs, you're proposing they close their doors. This program is the definition of an efficient government program that has contributed to local economic growth and innovation.
▶ 1:24:40With every $1 invested in WBC's, we've seen $6 in new business revenue and $15 in econ um economic activity, an extraordinary return on government investment. Under your plan, you're proposing a one-sizefits-all approach to small business counseling.
▶ 1:24:57Administrator, why are you cancelling funding for a program that has bipartisan support and drives job Congressman, certainly there are many great nonprofits ac across this country and and providing services. Um, this agency is ensuring we get back to our mission of focusing on small business capital access and delivering service through our 1,000 small business development centers across the country who partner with our veterans business outreach centers.
▶ 1:25:26In fact, this week we have uh 35 efforts ongoing for small businesses to learn boots to business uh job and skills training to become entrepreneurs and ensure that we partner together with our small business development centers. Speaking of veterans uh small business owners, uh veteran often possess unique qualities such as leadership, discipline, time management, logistic and strategic thinking which are highly transferable to business.
▶ 1:25:53Despite this, they were often under reppresented in business and faced challenges to transitioning to entrepreneurship. This is why Congress created the Veterans Business Outreach Centers and the Veterans Entrepreneurship and Small Business Development Act of 1999 and codified the Boots to Business Program and the National Defense Author Authorization Act last year. How do you intend to ensure that veteran specific needs are met through general purpose programmings like the SBDC program?
▶ 1:26:20Well, obviously, Congressman, we're going to continue to support the veterans business outreach centers. I was just at Joint Base San Antonio last week working uh with the transition assistance program. Uh I mentioned we have three dozen boots to business uh seminars going on this week. I just signed anou with the veterans administration. Thank you, administrator. And let me just clarify something. You mentioned earlier that you uh you you named someone to lead the Office of Rural Affairs. Uh who who's that person? Uh Richard Kingan. And when did you make this appointment?
▶ 1:26:51Um I believe it was in February. And uh was this on posted on the website or where's the website I can find this information? I'm not I'm not sure, Congressman, but we he's been very active and uh as a daughter of a farming family. It's incredibly important. Rural communities have been overlooked the last four years. We have to get back to strengthening our rural main streets and certainly our manufacturing initiative will help do that as well. Thank you, Madame Administrator. Mr. uh Madam Chairwoman, I yield back. Thank you. I now recognize Mr. Finstat from Minnesota for five minutes.
▶ 1:27:22Thank you, Madam Chair. I'd also like to thank uh Chairman Williams for holding this uh hearing today and uh like to say welcome to Administrator Leler. Uh as I was looking over your resume and getting to know you better, there's uh no doubt about it, you're very accomplished and you have a lot to be proud of. But the thing to me that stands out the most and makes you the most qualified is you're a soybean farmer.
▶ 1:27:45And uh I'm a farmer myself and uh the value of hard work, the value of understanding the environment, uh the family nature of the business of farming I think is just a a great foundation and I'm happy to hear you have that. You've been on the job 104 days. A couple of observations that I have that I've been very impressed with.
▶ 1:28:03Uh, you know, the main one would be this is that I really do feel like you're using uh in the right proportions of what God gave you, your two ears versus your one mouth and your willingness to travel around the country, to get your hands dirty, to roll up your sleeves, to not sit in the marble towers in Washington and listen to bureaucrats and policy makers, but actually listen to the people that you're called to serve, the small businesses of this country.
▶ 1:28:28hearing right from them the issues that they're facing is is probably the most important thing that you could be doing for small businesses right now. So, I want to thank you for that. Uh with with that um with your resume that I highlighted, there was only one blurb on your resume and that was the United States Senate, but we'll we'll let that one fly.
▶ 1:28:47uh you you you you come into know come into the administration 104 days ago and uh you with your three decades working in the private sector uh you're certainly aware of the speed of business the speed of the private sector and and how business community moves what was the status of the SBA bureaucracy and just the internal workings when you walked in and what have you uh taken pride in in regards to trying to restructure and reshape absolutely thank Thank you, Congressman.
▶ 1:29:18And um thank you for recognizing my farming background. It's probably the thing I'm most proud of and appreciate yours as well. Certainly, a lot of what I learned uh about business I learned on that farm, which is uh accountability and um the the need for a voice on Main Street. Um I I know what it feels like to feel like you don't have a voice. And that's that was my commitment in in coming to Washington. And President Trump, I believe, chose me because he knows that small business is big business.
▶ 1:29:45and under his leadership, small business is going to thrive uh like never before. Uh certainly I would say uh coming into the SBA, we had a commitment to run this like a business. Uh what I found when I walked in on day one, 90% of the seats were empty after four years of working from home. Uh that is not serving small businesses. Small businesses served us throughout the pandemic. They served us after the pandemic not working from home. They show up every single day.
▶ 1:30:16And then they had to endure four years of massive rampant inflation, 20% inflation. Regulation uh of 1.7 trillion at very conservative estimates were heaped on the heads of small businesses. The threat of rising taxes. Uh the Biden administration threatened a$4 trillion dollar tax increase. The list goes on. And then they were suffocated by Green New Deal and DEI mandates.
▶ 1:30:41We got into the agency, rolled all that back, made people come back to work, put our our staff out into the field to work with small businesses, and then got to work fighting for the one big beautiful bill act to make sure that small businesses don't face a massive tax increase, and to ensure that something like this never happens to small business again, that they don't have uh that they know that someone has their back on Main Street, and uh that we will have fair trade, that small business products will be welcomed around the world once again. So, it's a great honor.
▶ 1:31:10It's very humbling to serve our nation's 34 million businesses and job creators and uh we're just getting started. Appreciate that. Uh I have a bill called the Prove It Act and one of the uh highlights that that I like to talk about with that is, you know, it's not just the dollars, it's the 350 million hours of paperwork and manh hours that go into complying with the different layers of regulations.
▶ 1:31:36And you know, as a small business owner, you don't have a stable of lawyers or regulatory affairs people or I mean, you're the janitor, the HR, the CFO, and the CEO all with all before lunch. And so, uh, would love to work with you as we move that through Congress. Um, just in closing, you talked a little bit about rural America. And, uh, I have a bill up this week, the, uh, Save SBA from Sanctuary Cities Act. So, in Minnesota, we have an SBA center in Minneapolis. Minneapolis has chose to be a sanctuary city.
▶ 1:32:06We have seen an uptick in crime and quite frankly folks from southern Minnesota that I represent aren't too inclined to drive to Minneapolis to go to the SBA office. Just a quick thought on if if you're supportive of this and and if you're willing to implement it if we pass it. Yeah, we're we're very supportive. As you know, we've uh decided to move all of our regional offices out of sanctuary cities that refuse to cooperate with federal law and ICE. And I'm grateful uh to have the opportunity to codify that. So, thank you for your leadership on that.
▶ 1:32:35Appreciate it. Thank you. And I yield back. I now recognize Mr. Oshki from Maryland for five minutes. Thank you, Madam Chair, Ranking Member Velasquez, and Administrator Leler for joining us today. Uh we've heard a lot from you and my colleagues today about both uh Doge and the as Elon Musk describes it, the disgusting abomination bill. Uh so I'll focus my questions on those two topics today. I'll start uh with your prior service in the Senate.
▶ 1:33:02Um, administrator, you acknowledge that individual provisions like the no tax on tip can be acted on independently as the Senate did through unanimous consent, right? It's a yes or no, right? You acknowledge that can happen. Congressman, I'll And if you can't say yes or no, we'll say I don't know and that's fine, too. I'll leave it to the Senate. So, you can because they did. So, um I know it might have been a little while, but um so I just want to be clear.
▶ 1:33:27I didn't vote against the disgusting abomination bill because of taxation on businesses. I and my colleagues would have supported that as the Senate did on an independent provision. I voted against that bill because it guts health care for millions of Americans. I voted against that bill because it takes away food supports for veterans and hungry kids and seniors and it hurts the farmers in my district.
▶ 1:33:55I voted against that bill because it raises our country's deficit by trillions of dollars. I voted against that bill because it now says a child who is seven is no longer a dependent child administrator. I voted against that bill because it weakens our courts. I voted against that bill because it is a reverse Robin Hood nightmare for our country. So there are provisions in this bill that on their own me and my colleagues would be happy to support.
▶ 1:34:21So I have to ask you and again you can say yes or no or I don't know pass but those are your options. Do you support the provisions that reduce Medicaid? I support the provisions that reduce Medicaid waste. Do you support the provisions that remove people who deserve to have Medicaid? Do you support Do you support provisions that remove food supports? I I support removing people who are gaming the support Do you support Here's an easy one.
▶ 1:34:49Do you support the provision that makes a seven-year-old child no longer considered dependent? I support provisions that ensure that it is there for the people that need it and the people that are gaming the system. I don't think a single mother who has a seven-year-old child is now being forced to work gaming the system reclaiming my time. Do you support the provision that weakens the courts?
▶ 1:35:07I support this bill because it reduces taxes, it cuts spending, and it ensures that and we can do all those things respectfully, administrator, without doing all of these things that harm Americans in deeply painful ways. Uh turning now to Doge. Uh Madam Chair, I'd like to enter into the record uh an article from Fox Fox News uh that highlights the efforts that I led as Baltimore County Executive to lead uh $700 million of efficiency in local government.
▶ 1:35:39Without objection. Thank you. Um so just a few questions about Doge. were talking about how great it is and I've proven it's possible without firing people and without uh harming programs. What kind of vetting have you done with Doge employees? What does that look like? The Doge uh team are employees of veter uh various federal agencies like the SBA. They had the same vetting that any government employee would would have.
▶ 1:36:05But uh I'd like to point out that there are employees of the federal government just recently who were arrested for food stamps fraud to the $66 billion. Interesting you say that though, administrator, because Doge staff have actually been reported to not be subject to the same vetting and security clearance procedures as other federal employees. It's been reported that Doge staff has circumvented u chains of custody in their work. Do you know the Doge members working in at the SBA have small business expertise?
▶ 1:36:32Uh I know I know that our our Doge partner does and he is an employee of I would love to see the resume of of those individuals. And then where do the Doge numbers come from? What loan programs and SBA systems contain the information that you're sharing in your press release? Do you know that information? The uh our Doge partners are authorized to access this the systems that government employees are authorized to access. And uh what systems are they from? Which systems are we pulling this information? Well, Congressman, we have 48 systems at the SBA.
▶ 1:37:02Uh, that's what they're helping us streamline to ensure that there's a single point of contact. Small businesses are not being served by having a massive number of technology systems that cost tens of millions of dollars a year to maintain. And so, what they're doing is helping us serve small businesses better.
▶ 1:37:18I don't think any small businesses object to having better service to having streamlined efficiency at this agency which hasn't touched and nor do I administrator but small businesses do object to reckless tariffs and having their employees kicked off health coverage and having hungry kids not have food in their mouths and so I welcome you to the conversation. We support the provisions that will help our small businesses. And with that, Madam Chair, I yield back. I now recognize Miss King Hines from the Northern Marana Islands for five minutes. Thank you, Madam Chair.
▶ 1:37:46And uh thank you Administrator Leler for being with here being with us here today. So, a couple of weeks ago, we had a couple actually quite a few people who made the 8,000mi trek from the Northern Marianis, uh, the district that I represent to come and make, um, a door knock here to various members of of the House, seeking for relief because our economy uh, is tourism dependent and we have not
▶ 1:38:17from the typhoon that hit us back in 2018. and then COVID. Um, and then in 2022, there was a part 213 order issued during the Biden administration which just basically collapsed began the collapse. Second, we need to get the clock working. Thank you. Which began the collapse of of our tourism industry. And so, um, I just got back this a few days ago from the district and one of the things that folks are asking for is relief.
▶ 1:38:45And so, I'm really happy uh to be able to have this conversation with you today. Um, first I would like to invite you to come out and visit the Northern Marana Islands. Uh, the small business committee is planning a Kodell and I invite and encourage all the members to come out to see the conditions on the ground on America's western most border and closest border to Asia.
▶ 1:39:10so in 2018, the biggest typhoon to ever hit one of America's jurisdiction uh hit the Marianas called Typhoon U2. And because of the drastic decline in our tourism industry, folks just don't have customers coming and walking through the doors. And there were quite a few folks who have who took out SBA uh disaster loans who are asking for some sort of a temporary relief until such time that we figure out how to get our economy back going.
▶ 1:39:38So a letter will be forthcoming to your office um seeking opportunities of how we can work to provide relief to those folks until we figure out um our way out of this hole. That's one. two. Um, one of, uh, a growing in one of our one one growing industry in the CNMI is the expanding footprint of the military activities that are happening on the island of Tenion.
▶ 1:40:04And what we're seeing are is that our local businesses are now competing with folks who are coming from other jurisdiction bidding on these military contracts. And so one of the asks and I'm looking for an opportunity here is to um I guess you can do it through updating your regulatory guidance with regards to uh the 8A SBA program to specifically identify Chammorals and NMDs um so that
▶ 1:40:34they would have a better chance and a better shot in terms of competing for for these programs. Other than that I really don't have any questions. Uh, one of the things that I would like to commend you and the Trump administration is uh, your work on rem removing regulatory burdens that have been impacting these small businesses. Almost all businesses in the CNI are small businesses and so um, you know, it's it's a welcome relief.
▶ 1:40:59So, thank you for your hard work and I look forward to working with you and uh, please be expecting a letter outlining some of these asks. Thank you, Congresswoman. Thank you. And I recognize Miss Simon from California for five minutes. Thank you, administrator, for being here today.
▶ 1:41:19You know, as my colleagues have touched on, the administration is proposing deep cuts to SBA's entrepreneurial development programs, you know, and the salaries and expenses that directly support our SBA federal workforce are under fire.
▶ 1:41:36I recently met with a young woman from the Bay Area, my constituent who was hired for a permanent position at SBA at the regional office in San Francisco last December after holding a temporary positions at the agency since 2017.
▶ 1:41:56And this individual, she had worked tirelessly through COVID, through the pandemic, one of the hardest and darkest times for small business owners around the country to keep those small businesses going in the Bay Area. Um, you know, she dedicated thousands of hours in the field, doortodoor, working with business owners literally night and day prior to being wrongfully terminated by Doge.
▶ 1:42:20This individual played a vital role in connecting these small businesses, especially minority owned businesses, which I know this administration doesn't have much love for, and underserved businesses, to resources, training, and expert opportunities, technical assistance, as you know, is extremely important for our small businesses. Then one Friday, unbeknownst to her and her direct supervisor, she was fired unexpectedly and without proper reason.
▶ 1:42:48Unfortunately, we know, we all know, Republican and Democrat, our SBA local offices have experienced these terminations. She is not the only story. But what's most concerning here is the contradiction between the administrated stated goals and the real actions in real communities. We have, as you've articulated, shut down six and counting SBA offices in the country.
▶ 1:43:18I represent disabled small business owners. As a disabled woman myself who started keeping a payroll at the age of 19, I've employed hundreds of folks. I know what it's like trying to call, get on a website, begging for support as a both an NGO and a for-profit small business.
▶ 1:43:38With the shuttering of these offices, could you tell us now if I were call any regional office, what would be my wait time as a small business owner? Is it better or worse since you fired all of these folks unexpectedly? Is it better or worse? Congressman, it's better because people are in the office. Let's call you. Could we call one right now? What's the average wait time? What is the average wait time? I've done the work.
▶ 1:44:06I've been on hold for more than an hour. The websites are not ADA accessible. You cannot tell us right now that the services being rendered in this moment under your leadership are supporting small business owners at a better rate than they were a year ago. I understand we need to get to the bottom of it. We need to figure out how to create a more efficacious system.
▶ 1:44:31But we cannot fool ourselves in saying when you fire thousands of staff, lowincome small businesses are better off. Like we can't lie to each other right here. It's not okay. It's not okay. We can say we're struggling to figure out how to develop a better small business administration. But you can't tell me that the weight times are better. You can't tell me that if I go to the website as a disabled, legally blind woman that I could get the information that I need.
▶ 1:45:00Try your today. So, it's okay for us. We want to work together. We have to work together to say that there are more opportunities to grow. But you can't say the wait times are better, that the service is better, that the information is multilingual in the ways that it should be. I have 150 languages spoken in my district. You want to tell me you want to take away my San Francisco office and that small business owners will be better off because of this bigotry? Are they going to be better off?
▶ 1:45:31Are they going to get the information that they need to be able to be prosperous and feed their families to be the main street that we know that we want in our communities? No. You actually want to take those opportunities, those staffing opportunities, those technical assistance opportunities away from the people that need them most. you don't need to respond because you've responded throughout this whole hearing. And the answer is the services aren't going to be better, that folks aren't going to be able to have opportunities, and you don't care.
▶ 1:45:59You don't care because you don't fire over 2,000 people and say that services are going to be better for small business owners. And I'll yield back. Congresswoman, our loan volume is up 80% compared to the first 100 days of the Biden administration. So, we're doing more with less, just like all small businesses do. I now recognize Mr. Muser from Pennsylvania for five Thank you uh madam chairwoman and administrator. Thank you very very much for um bearing through this for answering your questions.
▶ 1:46:29Congratulations on 104 days. Um the SBA in this short period of time has launched the red tape hotline. I think I mentioned to you yesterday at the meeting I think we should have called it the blue tape hotline. uh the made in America manufacturing initiative, the franchise directory and the make onuring great again portal that I want to hear a little bit more about.
▶ 1:46:51You restored prudent underwriting standards in the 7A loan program as we all know and predicted there was 1776 million in non-colateralized loans which we warned that our chairman warned the SBA administrator right to her while she was sitting there that these loans were going to go bad but they did it anyway non-colateralized. Uh, and we crack down on SBOA loans going to illegals and those who are ineligible, non-eligible persons and businesses.
▶ 1:47:21Uh boy, I don't know who finds that to be um disturbing, but my goodness, if we're all from the private sector, or some of us anyway, and uh are about small businesses, we shouldn't we really wouldn't want a a private bank or a private business to be doing business with those who have no chance of paying them back or paying paying the loan. So, there's still a lot of work to do. You have no shows. 90% over a 4-year period, I believe you said. That is unbelievable.
▶ 1:47:52I don't remember hearing much of a of a cry about that over the last four years, except maybe from us. And the SBA administrator said, "We're working on it." Uh when we didn't have to subpoena her to uh to uh provide us information. Piles of the blue tape, the overreach, the the loans as stated going out to non-colateralized. And by the way, we had a big issue with them doing a lot of focus, spending a lot of time on registering voters, particularly in blue areas.
▶ 1:48:22But outside of that, they were wonderful. So, we're very glad that you're now in in your seat. The BBB provides tax certainty continuation of of particularly small business taxes particularly the 199A enhanced to 23% very very important bonus depreciation R&D tax credit tell us from your vast experience in in business and then you're talking with the small business you you worked
▶ 1:48:52for what would happen if these provisions expire? Well, we we would face many many challenges, most of which would be felt on Main Street America. And certainly that is the heartbeat of this country's economy. It's the jobs engine. It would cost us millions and millions of jobs if that 23% deduction doesn't go through.
▶ 1:49:14If uh factories don't have the depreciation they need to invest and grow in made in America manufacturing which is so vital to our country's economic and national security uh and and they would uh many of them we would lose many of our small businesses because they operate at such thin margins.
▶ 1:49:31uh they would lose the certainty of uh their future and and be unable to invest uh not just in equipment but in employees and hiring which which are the engines of our uh hiring under which President Trump we've already seen a half million jobs created reversing the Biden administration's decline of manufacturing of 110,000 jobs lost in manufacturing in just his last year. So we're getting back to supporting the working men and women of America on Main Street. Thank you. Um, you're on shoring great again.
▶ 1:50:01I want to talk about that, but I also find it alarming how so many talk about tariffs and how that's going to make the sky fall, but raising taxes on companies is is a-ok. Okay, uh, but not on small businesses because this bill caters to the big businesses. Does this bill, the BBB, even have any effect on CC corporations, the larger larger corporations with with with certain exceptions of our R&D and um uh and bonus depreciation?
▶ 1:50:30No, it maintains the corporate tax rate and it maintains it. Yeah, it certainly helps small businesses uh grow and invest. And did uh did I see correctly that the inflation rate last month was at 2.1%, the lowest it's been since I think 2019. Yeah. Four year lows. Yeah. four four year lows. So why don't you tell us a little bit about your onshoring great again which shows businesses where they could go as opposed to buying products from overseas. Thank you Congressman.
▶ 1:50:59We strongly reject the narrative that things can't be made in America again and are promoting made in America manufacturing and as part of that not just expanding our loan sizes but making sure small businesses know they have a choice to procure uh their resources uh to onshore production in this country. Our make onshoring great again portal which is on the sba.gov website homepage can be accessed by everyone.
▶ 1:51:23It's three different private sector databases that provide access to um onshore production and it'll ensure that our uh small businesses can source locally and not from the Chinese Communist Party. Thank you administrator very much. I yield back, Mr. Chairman. Gentleman yields back. I now recognize Miss Goodlander from the great state of New Hampshire for 5 minutes. Thank you, Administrator Leler, for being here today. You testified that as you've traveled around the country, you've heard three big concerns from our small businesses.
▶ 1:51:52You you talked about workforce challenges, uh regulations and red tape, and taxes. I'm I'm hearing similar concerns, but I want to start I want to address both. I I want to start uh by asking you about the workforce challenges you've heard about for as as I've traveled around New Hampshire.
▶ 1:52:10Um, and part of what has really given me grave concern about the biggest cuts to healthcare in American history is the impact that these cuts will have on our small business owners and employees. Do you have a sense, administrator, of uh what the scale is, how many small business owners and employees depend on Uh, Congresswoman, we have to make sure that Medicaid is there for the people that need it and not for people who are gaming the system or double dipping.
▶ 1:52:38We know that there are Medicaid checks being sent to the same person in two different states and Americans want to know that this program will be there for them when they need it. We should make sure that uh pregnant single women are uh able to get that and not able. The answer is 7 million small business owners and employees depend on Medicaid for affordable healthcare coverage. We're talking about the biggest cuts to Medicaid in American history.
▶ 1:53:03We're we're also not extending the ACA premium tax credits which is going to hurt our small businesses across this country and it's what I'm hearing from our small businesses every day on this job. I want to ask you about child care as a workforce issue and and administrator will you commit to working with me and to our with our committee to make child care more affordable?
▶ 1:53:25Congressman, I I hear too hear child care concerns and we want to make sure that we are uh ensuring that small businesses have the resources they need and I would love to hear your ideas about improving uh that across this country. Thank you. I appreciate that and I will take you up on that. I I want to ask you you mentioned red tape and As I've traveled around New Hampshire, the number one concern it's it's I guess my question to you is how important is certainty to our small businesses.
▶ 1:53:57Certainty is is one uh thing that small businesses would like to have, but running a small business is about anything but certainty. And that's why the tax bill is so important. They have the continuity of of their expectations around tax. The primary driver of uncertainty uh for our small businesses today is this absolutely hard to follow trade policy um in which tariffs and trade wards have been waged and exemptions have been granted.
▶ 1:54:24You testified earlier, administrator, that you oppose exemptions for small businesses from the president's tariffs. Is that I just want to be sure that we have that right. I testified that we have to have fair trade for our small businesses who don't have the resources to fight against the trade war waged against our small businesses allowing small businesses in China to take away to commit sabotage and espionage when small businesses produce administrator.
▶ 1:54:50So you I'm going to take that as you you oppose exemptions for small businesses while some of the biggest corporations in the world are getting exemptions from the president country's manufacturing base and that's happened across communities. 5 million workers have not had a voice. We have to restore opportunity for our workers for our small businesses to compete on a level playing. I agree. You know in New Hampshire we have an incredible community of advanced manufacturing small businesses.
▶ 1:55:16And I'm I'm reading here from a letter I received from one such business in the town of Fitz William, New Hampshire. This is this is a a precision motion and engineering company. It's a small business. They said without relief, companies like ABTE representing the backbone of American manufacturing face significant challenges to sustaining growth, innovation, and and and employment. I've heard from countless small businesses who are worried that they're not going to be able to stay in business because of the president's tariffs.
▶ 1:55:45Will you commit to working with us in this committee to make sure that our small manufacturing businesses don't go out of business? Well, certainly I'll always commit to working through exemptions to these options and solutions. Our solution of onshoring uh our supply chain through our onshoring portal is critical, but we have to ensure that our small businesses are never at the mercy of the Chinese Communist Party again. I couldn't agree more with that and I want them to stay in business. So, I hope we can count on you to work with us on that.
▶ 1:56:15Administrator Laughler, you you talked about staffing cuts. Um last week you testified before the Senate uh and you committed to my colleague Senator Shaheen from New Hampshire to giving us a full update on how you plan to restaff critical district offices including in New Hampshire. So that you know a we've seen a 60% reduction in our staffing in New Hampshire. I how is that in any way consistent with strengthening the SBA in the field?
▶ 1:56:41Well, we've certainly seen a return to office and and the return to office did cause some people to opt out of returning to work in office, but we are restaffing those field offices and people are back at work now in the field office. Well, unfortunately, in my state of New Hampshire, we've seen a 60% reduction and this is harming our small businesses. So, I I expect that we will be hearing about from from you with answers to our questions about how you intend to restore the workforce in that critical field office.
▶ 1:57:11Gentle lady's time is up. I now recognize Mr. Stalber from the great state of Minnesota for 5 minutes. Uh thank you, Chairman Williams and Ranking Member Velasquez uh for holding today's hearing and thank you Administrator Leler uh for your testimony and your willingness to lead the SBA at such a pivotal moment.
▶ 1:57:28I want to um just share that during the Biden administration, the SBA lacked transparency, leading this committee to issue four subpoenas to former administrator Guzman to talk about oversight in the Small Business Committee. And I'd like to remind my colleagues, Senator Leler, Administrator Leler is here on her own.
▶ 1:57:54She didn't need a subpoena to be compel her to te testify before this committee and I commend you for that. Is it safe to say that under your leadership and the small business committee asks you to come in and talk, you won't need a subpoena. You'll come willingly like you did today. Uh yes, Congressman, I will uh be glad to talk with this committee and we're going to be continue to be very transparent. Thank you very much.
▶ 1:58:21Uh, small businesses o small business owners in my district in northern Minnesota and across the country have spent the last few years drowning in blue tape. During the Biden administration, more than 1,100 new regulations were added to the Register. Those rules carried a staggering $1.8 trillion price tag and imposed more than 356 million hours of paperwork on the American small business man and woman. That's not governing.
▶ 1:58:49It's smothering, stifling, and wrong. And the hardest hit was Main Street. And I've spoken to countless entrepreneurs, small business, men and women who sat right here in front of us. And I asked, "Are those rules of regulations demoralizing?" And they all said, "Yes, no more rules or regulations on uh American small businesses.
▶ 1:59:13It's stifling." Can you uh speak to the steps you've taken in your first 100 plus days to reduce the regulatory burdens on American small businesses? Congressman, we are for the first time in years staffing the uh office of the advocacy which advocates for small businesses across the administration across all agencies. The last administration did not fill that advocate role. We are going to ensure that small businesses have a regulatory watchdog in in Washington.
▶ 1:59:44We've already had that office out on the road in listening to small businesses. And you're correct, small businesses are being crushed. Uh they're uh we call it the American dream wrapped in blue tape. So we have to uh unleash small businesses and we've heard it from every single business. We're going to ensure that they have a voice in unwrapping that regulatory red tape.
▶ 2:00:05And the small businesses that uh you have talked to and I have talked to many, they want certainty and that certainty comes with the extension a permanent extension of the tax cut and jobs act. Uh would that be uh correct? Absolutely.
▶ 2:00:20Small businesses uh would suffer the most if this bill uh is not passed and it was really shocking to see Democrats vote against uh the tax making the tax cuts permanent uh to voting against $1.6 six trillion dollars in spending to vote against the border wall uh and to get rid of the abuse of federal programs like Medicaid and food stamps. Another major change under your leadership has been a push to restructure and streamline the SBA.
▶ 2:00:49Can you walk us through how the SBA is being restructured to eliminate uh duplic duplication and provide more direct effective services to entrepreneurs and small businesses across this great uh the agency had doubled under the Biden administration in terms of headcount uh but the services uh actually deteriorated. We saw uh record levels of delinquencies and defaults uh costing taxpayers almost $2.2 billion in loan losses.
▶ 2:01:17We've restored the uh underwriting standards. uh we've right-sized the agency and as a result our loan volume is up 80% uh in President Trump's first 100 days compared to the last administration and up 20% from the end of the Biden administration. So just like a small business we are doing more with less.
▶ 2:01:36uh in your uh in in in your uh one of the questions um that uh in your testimony that was asked of you in your response was uh when you arrived in your position, I just want to make sure this is clear that 90% of the staff at the Small Business Administration, they were working from home for the last four years. Is that correct? Yes.
▶ 2:02:03the offices were almost empty and even today we found 35 offices that had either zero or one employee. So we're also streamlining that footprint to ensure taxpayer dollars are used wisely. Thank you for your leadership and I yield back. Gentleman yields back. I now recognize Mr. Cisneros from the great state of California for five minutes. Administrator Laughler. Um, okay.
▶ 2:02:28You know, it's finally nice to actually have somebody from the SBA after so many hearings to actually answer questions about policies that are being put in place. And the first thing I would like to ask you is if you could name those offices that had zero employees. I would love to see those. You don't have to give them right now, but you can give them to me back in in a letter. I think that you could address. I would love to hear what offices and what cities those were um there.
▶ 2:02:50But um you know you say you are supporting small businesses but you moved offices out of six metropolitan areas. People in New York City are now having to travel to Long Island which is not easy to get to. Have to go by train or other means in order to get there. How does moving these offices out of the metropolitan areas where they serve al collectively hundreds of thousands of businesses, how is that supporting small business?
▶ 2:03:20Congressman, thank you for the question. Uh, I I would like to start by thanking Secretary Gnome and and ICE for ensuring that our cities are safe. You saw in a sanctuary city yesterday. That's not I'm not asking you about ICE. I'm asking about how you're supporting small businesses if you're moving the offices out of the area. Small businesses safe after four years of Were any of these were the any of these SBA offices or any of these small businesses under attack or threat? Do you have proof of that? where everything was going on.
▶ 2:03:50We needed to move these offices out. In Denver, we saw a terror attack on the Jewish community by an illegal alien who is in a sanctuary city. Yes, there are many small businesses in Denver that are threatened by illegal aliens who again, I would love to see that list of small businesses that have been attacked or threatened by we have many by these you felt that it was needed in order to move these officers out.
▶ 2:04:13But when you in doing that you are not only hurting and and this is you are supposed to be there to help businesses support businesses in these areas. And some of these businesses are owned and operated uh not only by Democrats but independents and Republicans as well. And when you move these resources out of these metropolitan areas, you are making it harder for them to receive these services.
▶ 2:04:41So, how is this helping small businesses? How is it keeping them safe? Congressman, this is not about partisansship. This is about public safety. Well, I'm talking about right now whether you whether or not you move the office out of these areas. These small businesses are still in those areas. So, how does that help these small businesses if you're moving them out of these metropolitan areas? Congressman, there are resources all over this country from the SBA. We have 1,000 small business development centers.
▶ 2:05:11Uh, do you agree? You've said numerous times today that you need to be on Main Street where these things are, right? Main Street is not only in smalltown America, but it's also in large metropolitan areas. Do you not agree you need to be where the businesses are? We absolutely are where the businesses are. How are that is the Why are you moving offices out of these metropolitan areas? Not only are you because when you do that, you are not you are not where the businesses are.
▶ 2:05:38The the offices are are not only unsafe, they're in areas that are difficult to get to, they have uh the buildings are inaccessible. So moving an office out of New York City into Long Island is making it more accessible for those small thousands of small businesses in New York City. We are going to support regional offices in areas that comply with federal law, including federal immigration law. I I you know, I'm mistaken. And I'm sorry. I was assuming that you were the small business administrator, not the not Homeland Security.
▶ 2:06:08We are the voice for small businesses who want safety and security. And we're going to make sure our resources and those small businesses want resources and help and support. And by moving those resources and help and support out of these metropolitan areas, you cannot legitimately tell me that you are supporting them. Next question. Up 80% compared. Next question. The FAR Council was rewriting the government's procurement regulations.
▶ 2:06:34Many of the rules are in place because small businesses find it nearly impossible to compete with large corporations to win a contract. To what extent has SBA been involved in the rewrite to advocate for small contractors? And have you specifically addressed the potential elimination or sunset of the rule of two? Congressman, we are working with OM on the federal acquisition regulations with the board and ensuring that small businesses once again have a voice there.
▶ 2:07:03We've seen uh the aims of the program uh not being met. We think that's a serious problem as the as the voice as the advocate for small businesses. We have every again means and hope when you're reducing the numbers the goals for small businesses whether it be womenowned, veteranowned or or minority owned businesses, how is that helping them and how is that advocating for small businesses when those contracts are now going to larger things? And with that, I yield back. Gentleman yields back. I now recognize Mr.
▶ 2:07:32Downey from the great state of Montana for five minutes. Thank you, Mr. Chairman, and uh thank you, Administrator Leler, for uh testifying today. I I represent Montana's second congressional district, which is among the most rural in the nation, and federal agencies need to be aware of the challenges that uh rural small businesses, uh farms, ranches face.
▶ 2:07:54To help address this, I introduced the Expanding Access to Capital for rural job creators act, which requires the SEC's Office of the Advocate for Small Business Capital Formation to report on capital access issues faced by rural small businesses. The Small Business Administration, much like the SEC, needs leadership that values small business innovators from all different types of communities.
▶ 2:08:17So, administrator, do you believe the Small Business Administration under the Biden administration paid adequate attention to the difficulties that rural small businesses face in uh securing capital? Congressman, we saw a major void in serving rural communities. As uh the daughter of a five generation farm, uh I know how important and vital small businesses are. They are disproportionately important in rural communities. They were completely overlooked in the Biden administration.
▶ 2:08:47So, what is the SBA doing under your leadership to reverse the previous administration's inaction in to expand access to capital for rural entrepreneurs and small businesses? Well, we certainly immediately staffed our uh office of rural advocacy to ensure that they had the small business community has a true advocate there.
▶ 2:09:07Um, and we're working across the uh not just the regulatory uh rule set to ensure that hub zones and other uh aspects of the SBA are truly defined so that small businesses in rural communities thrive, but that our lending sector provides access to small business loans. Unfortunately, under the Biden administration, we saw a severe decline in in uh lenders offering SBA loans, which uh disproportionately impacted rural communities.
▶ 2:09:36So, we have a focus on ensuring capital is made available there. Thank you. Uh in our hearings here in House Small Business Committee, we've investigated how the Biden administration SBA egregiously politicized and mismanaged its operation through irresponsible work from home policies, DEI mandates, and voter registration efforts. So, since taking over as administrator, what have been some of the most egregious examples of politicization and inefficiency that you and your team have discovered from this uh Biden SBA?
▶ 2:10:07Well, you mentioned the electioneering of setting up voter registration. Certainly in Michigan with theou, but we've also heard of other states that happening. We moved on day one to ensure that the focus got back to small business and we ended that work which went through something like 2033. Um we're back to focusing on small businesses. But we also saw tremendous uh fraud that was being uh swept under the rug by the Biden administration.
▶ 2:10:32uh not just in COVID era loan programs that they attempted to forgive on the backs of hardworking Americans, those fraudsters loans, but we've also found that other areas of uh giving uh loans to those over the age of 120 uh under the age of 11, $630 million worth of those loans were found thanks to Doge, thanks to their ability to do data analytics.
▶ 2:10:57Uh as a result of that, we've been able to strengthen our loan application process and then also reform our lending programs to ensure that they're not losing money to the tune of $2 billion, which is what happened under the Biden administration. Thank you. You you mentioned the work SBA has done under your leadership to restore integrity to the loan programs through citizen verification pro protocols. To what degree uh did the SBA in the previous administration channel taxpayer dollars to provide loans to illegal aliens?
▶ 2:11:27Well, one example that that we were able to stop was we identified a a loan for more than $700,000 that was going to an illegal alien. We were able to stop the funding on that. We have to make sure that the agency's resources are made available to uh US citizens. So what steps do you think Congress can take uh moving forward to ensure that future presidential administrations can't mismanage SBA in the same manner?
▶ 2:11:54Well, certainly President Trump's leadership with his executive order of stopping taxpayer subsidization of the Biden open borders policy is a first step, but uh ensuring that uh it's codified to have citizenship uh as a requirement for receiving SBA resources. Okay. Uh, finally, I just want to touch on veterans, uh, as they play a role in small business owners. Uh, President Trump's budget request for 2026 includes a $10 million increase for veteranowned business services through small business development centers.
▶ 2:12:24How would this request better support veteran entrepreneurs? Well, we know that veterans are going to be better off under President Trump. We're uh we recently signed anou with uh veterans uh the veterans administration secretary Doug Collins to ensure that the SBA and VA are working together uh and ensuring that their increase in their budget also coordinates with ours to the benefit of small business and veterans. Excellent. Thank you uh Mr. Chair. I yield. Gentleman yields back. I now recognize Mr.
▶ 2:12:52McGarvey from great state of Kentucky for 5 minutes. Thank you Mr. Chairman. Thank you Administrator Leler for being here with us today. I want to start by going back to one of the questions you obuscated on earlier today when the ranking member of Velasquez asked if you would provide the committee with copies of the agency reduction in force and reorganization plans that you submitted to the office of personnel management on March 13th and April 14th as well as the monthly progress reports beginning in May. That's a yes or no question. You said you would do it as appropriate.
▶ 2:13:21Uh, so let me ask you, is it appropriate for you to give the oversight body in Congress of the Small Business Association those plans specifically from a March 13th and April 14th as well as the monthly progress reports? Will you do that for us? And is it appropriate? Congressman, I have committed to being transparent with Right. But you're not. So, is it yes or no? No, I've been very This is This is so I tell you what, this is so simple. Will you give us the report you submitted on March 13th and April 14th? Uh, we'll certainly talk with our team and I have broad authority.
▶ 2:13:51I've got kids, Miss Leler, so I'm used to dealing with this type of obfuscation. It's it's a yes or no question. Will you give us the report you've already submitted to? No, we don't need to talk about it. Will you submit it? No, we'll certainly get back to you. I have brought it to the agency. The buck has to start stop somewhere with the Small Business Administration. Okay. Then yes or no. Will you give us the report you gave to OPM? Yeah, I'll consult with my team and we'll come back. No, no, you just your team. It's it's you. Yeah. I thought you were in charge. Yeah. Well, we're going to make sure that we uphold all the uh rules and requirements. No, no, it's a yes or a no question. Will you give us the reports you submitted?
▶ 2:14:21If you're transparent, you'll give them to us. Yes. Well, yes. Great. Thank you. Thank you for saying yes. We will hold you to that. Um I also want to go into tariffs now. Um because with tariffs, I've talked about tariffs all the time. Tariffs are neither good nor bad. Tariffs are a tool. A hammer is neither good nor bad. It's a tool. It's really good for putting a nail in a wall. It's not so great for fixing your iPhone. How you use them matters.
▶ 2:14:44And the chaotic nature of the Trump tariff policy has disrupted the economy so much that even Wall Street analysts have a name for it. Uh the taco term uh that we're talking about Trump's tariff policy. But that uncertainty is not funny for small businesses. In fact, the Wall Street Journal, Small Business Index, found that 58% of small businesses say the economy has gotten worse. 66% of small businesses believe tariffs are having a negative impact.
▶ 2:15:12and 51 and percent anticipate a recession coming up soon. Do you have any relief efforts or certainty that you can give small business owners in my district of Louisville, Kentucky, all of whom are complaining to our office about this that there will be certainty in the tariff policy specifically? President Trump is fighting for fair trade. He's fighting for American industry and you don't have an answer on that either. No one has goodl I'm going to reclaim my time. I'm reclaiming my time right now.
▶ 2:15:41Look, I told you I' i've got three kids. They're in elementary and middle school. When they don't answer a question directly, I know what they're up to. I know what you're up to, too. Uh, so we're just going to move on. Hopefully, we can get to some good work here today. Um, I got a lot of questions about your fiscal year 2026 budget request, and I'm just hoping you can clarify a few of those today. Uh, because I'm looking at the budget request right now. Um, and I'm on the veterans committee. I have over 40,000 veterans who live in Louisville, Kentucky.
▶ 2:16:07deeply concerned about veterans issues and how they can make a really good life for themselves after they've put on the uniform to serve us. But the plain reading of your budget says that it is one of the 15 programs that looks like it is going to be ending. Um that that's our veterans uh business outreach centers that help veterans. Last year at the Veterans Business Outreach Center, they held more than,900 training events, including 867 Bootsto Business Reboot classes at more than 180 military institutions.
▶ 2:16:37Uh Bootsto is a program passed by Congress. Testifying in the Senate, you said, "I want to correct the assumption that we are eliminating these veteran business outreach centers." And today with Mr. TR questions, uh you said that something similar. So, I want to ask, is the veteran business outreach center program one of the 15 entrepreneurial development programs mentioned in your budget request? We have said that we will continue to fund it. That the $10 million funding level is a floor, not a ceiling.
▶ 2:17:07We have, in fact, 35 boots to business efforts going on this week that veterans can Okay, but I want I want to drill into this really quick. I'm reclaiming my time. I want to drill into this really quickly. By cutting those 15 programs, you cut $167 million. You say that you're going to put them over in the small business development center, but you increase the funding for that only by $10 million. You say it's a floor, but it's in here. It's in the budget. It says exactly what it is.
▶ 2:17:33So, it doesn't seem possible that you have the funding for a congressionally approved program which has put thousands of veterans not just back to work, but having the American dream of starting their own business. your budget eliminates it. And again, you are not giving us a straight answer. I wish you would do that because just yesterday on the House floor, this committee passed seven bipartisan bills. We work together for small businesses so that everyone can have the American dream. And I hope we can have that relationship with you. Mr. Chairman, I yield back.
▶ 2:18:02Gentlemen yields back. I now recognize Mr. Weed from the great state of Wisconsin for 5 minutes. Well, thank you, Mr. Chairman, and thank you, Administrator Leler, for testifying here today. Administrator Leler, in your opening statement, you mentioned unprecedented levels of fraud and mismanagement within the SBA under the previous administration. Unfortunately, this seems to be the trademark of the Biden administration, not only within the SBA, but across the federal government.
▶ 2:18:27I want to thank you and your team's hard work to reorient and streamline the SBA towards working for Main Street once again. Uh, one of the primary concerns I hear from small businesses in my district is their ability to access capital. During the Biden administration, the 7A loan program, like many other federal programs, was nearly destroyed thanks to the previous administration's reckless policies. How will the recent reforms to 7A loan program protect this program for years to come?
▶ 2:18:57Congressman, you're right. Under the Biden administration, they introduced a SOP called do what you do. Effectively trying to turn the 7A loan program, which is a public private partnership, uh into a grant program. As a result of that, we saw rising defaults uh going negative cash flow for the first time in 13 years.
▶ 2:19:17We've eliminated that SOP and restored the uh prior uh underwriting guidelines to ensure that small businesses uh have the access to capital that they need under certain terms that apply to everyone. So almost a quarter of the working population in the district that I represent in Wisconsin's 8th district are employed in the manufacturing sector.
▶ 2:19:37My Republican colleagues and I are fully supportive of the Trump administration and SBA's goal of bringing back manufacturing to the United States and programs like the Make Onshoring Great again portal in the American manufacturing initiatives are important pieces in achieving this goal. With that being said, what are some of the biggest concerns you're hearing from manufacturers on your Made in America road show and what can we do as members of this committee to uh alleviate some of those concerns? Certainly. Thank you, Congressman.
▶ 2:20:06Some of the biggest concerns we hear uh are ensuring that the tax bill gets passed. That making the tax cuts permanent to have 100% expensing in addition to the 199A pass through deduction, the 179 uh bonus depreciation uh made in America manufacturing, 100% depreciation. They want to know that's going to go through because manufacturers are spring-loaded for investment. If that goes through, they're spring-loaded for hiring. And that's another issue is a skilled workforce.
▶ 2:20:34manufacturers talk to us about finding that skilled workforce. Um, so that's been a big focus for us. And then deregulation, they have been crushed by massive regulation the last four years and that has been heaped disproportionately on small businesses and manufacturers. And so we're getting back to uh the focus on deregulation as well. Great. Well, thank you Administrator Leler for all you do and for your service to our great country. Appreciate it. I yield back. Gentleman yields back. I now recognize Dr.
▶ 2:21:03Conaway, great state of New Jersey for 5 Uh, thank you, Mr. Chairman, and thank you, uh, Administrator, uh, Leler, for presenting yourself to us today and offering information on the workings of your department. Uh, on March 19th, President Trump signed an executive order which effectively dismantles the US Department of Education or certainly puts it on track to be dismantled.
▶ 2:21:26Um this unprecedented action has also included shifting the student loan portfolio uh which is a $1.6 trillion dollar outstanding loan debt to the SBA. In addition to that, the SBA announced that it will be reducing its workforce by 43% as that amounts to 2,700 uh employees as you've noted for us here today.
▶ 2:21:48Uh and so uh it seems contrary uh to uh the White House's position uh that they are trying to bring efficiencies to um to both of the the uh these efforts, the Small Business Administration and administering student loans with less people to actually do that and placing that student loan portfolio in an agency that has no experience in running uh that very important program.
▶ 2:22:16Um I have not heard and it's not been presented to me that you have presented plans on how you intend to incorporate uh the student loan portfolio within the SBA. Uh can you uh outline those plans for us today? Well, Congressman, uh as you're aware, the Biden administration created a absolute crisis with the student loan program uh trying to forgive near claiming my time. I'm really I'm asking a question about claiming my time.
▶ 2:22:43I really don't want to be combative with you, but if you would just get because I only have limited time, could you just give us a a brief outline of what your plans are to incorporate uh this loan portfolio? Yes, Congressman. We'll be working with the White House and this administration to ensure uh these any of these plans as they're developed will be carried out. The SBA is the largest uh government guaranteed lender, $444 billion uh loan portfolio that we operate.
▶ 2:23:12um we've generated 80% increase in our loan volume with 43% less staff and it's uh consistent with my family. Let me move on to tariffs because um I don't want to leave this important question uh to one side.
▶ 2:23:26Uh I have met as you have with small businesses in my community and I will tell you one of the things that I've heard from uh people who sell cars from people who are selling products and at baseline uh small businesses get many of their um parts uh or wholly made products from overseas and so they suffer tariffs on the way in and they sell overseas and and they're hit with tariffs on the way out. The policy has been back and forth.
▶ 2:23:53We were promised we'd have 90 deals in 90 days to uh at this time there are zero deals uh done and the clock is ticking on this 90-day program and what they have told me these small business owners is that what one of the things they need is certainty so that they can plan I met with a small business that has overseas operations um they have made a it's a third generation business they've made a profit every year they've maintained a stable workforce and growing and they uh and what I was told is they believe for the first time in
▶ 2:24:24the history of that firm that they will not be able to make a profit because of the tariffs and the and the cost being imposed on their uh business. We know it's a tax on consumers and we know that tariffs have driven economies and indeed the world economy into recession or depression. So tell me how does this shifting policy on tariffs, how does that help small business? Congressman, I I disagree with your premise. These are the tariffs enacted against America.
▶ 2:24:52These are what small businesses right now claiming my time. This is what's happen. No one's fighting for small business. How is a policy that is a sort of a whirly bird policy. It's like a weather vein going it's they're on they're off. These deals that are supposed to get done again 90 deals 90 days. Zero zero um um of these agreements have been made and all the experts say it takes two years roughly for any of these deals actually to get done and ironed out.
▶ 2:25:20So, what are small businesses supposed to do over the next two years with all of this uncertainty as they attempt to plan and grow? What are you telling these small businesses? Um, to wait and in two years, help will then be on the way. Congressman, the president has committed to a short-term trade negotiation over 90 days. He's already completed two deals and more to come. Zero deals, small business, zero my time because I just have 30 seconds left.
▶ 2:25:45I want to get to this question about uh the inspector generals that have been fired across the government and I'm I want uh my questions are will you commit to ensure uh that whoever comes to your agency is uh has a demonstrated history of nonpartisanship in their dealings. We've seen the opposite in people that are already on the job. And will you commit that they have expertise in the in the areas of auditing and finance in the legal uh affairs that they need understanding to actually run the office of an inspector general for the SBA?
▶ 2:26:16Will you commit to that? Yes, Congressman. Yes. Thank you, Mr. Chairman. Gentleman yields back. I now recognize Mr. Patronis from the great state of Florida for five minutes. Thank you, Mr. Chairman. Thank you, Mr. Chairman. Uh, administrator, thank you for joining us today. Um, my district is Northwest Florida. If you're from Georgia, you know where it is. And I'm sure you probably vacation there at some time in your life. Um, please know that we have an invitation open for you to come and visit. I'm the new guy on the block.
▶ 2:26:42Um, but where um, I'm coming from is I grew up in a small family business, restaurant business. Uh, taking care of the customer is important. Taking care of our employees is important. And I appreciate we have an administrator that understands the importance of signing the first front side of a check and understand running a business. Um, I I I I'm I'm really pleased of what y'all are doing to prioritize phrase waste, fraud, and abuse. Um, when you're running a small business, the only way you're going to succeed is to watch the bottom line.
▶ 2:27:10And I saw the video that you posted as you walked past all the empty cubicles. And I was floored by the amount of of really lack of efficiency that was taking place in your administration and how you had to really uh wrap your arms around uh a mess. And it's not easy. and I I I I admire your uh your commitment to want to turn the agency around. Um I I regret that my my colleagues from across the aisle weren't here to to hear my questions.
▶ 2:27:38Um but I'm I'm sensitive to my part of the state, especially when deals with natural disasters and um the SBA loan program has been responsible for saving many a business in the state of Florida, especially after a hurricane. Um, and the one thing that I appreciate about the loan program, there's not a question that it says, are you a Democrat or a Republican? Mother Nature doesn't care where it lands, but it's going to affect everybody and hurt everybody just the same. No matter where you voted, no matter where you live.
▶ 2:28:07But describe how that program makes a difference in saving these businesses, which ultimately keeps people employed. You're absolutely right, Congressman Petronis. We I've visited red states and blue states disasters ensuring that uh from Kentucky to California they have what they need in the uh recovery efforts. We're not a response agency.
▶ 2:28:28We're a recovery and resilience agency and certainly uh have been on the ground and in the first 100 days of the Trump administration we've delivered $3.4 billion dollars of uh disaster loans. that means to small businesses and families across this country. Uh impacted in over 1300 counties right now in America. We have ongoing about 25 disasters.
▶ 2:28:50That means that homeowners have the resources through our SBA loan program to rebuild that small businesses can rebuild and and keep staff on. And my commitment to you is that we will not let happen what happened under the Biden administration when the administrator lied about having funds and then when disaster hit a few days later found out that they had run out of money and and homeowners across this country, business owners went without for months.
▶ 2:29:17And so um appreciating the the need to be responsive, we've brought in a great disaster team. We've strengthened it to make sure that that uh recovery and resilience force is on the ground as it is today with hundreds of employees deployed across America right now as we speak. The the one element of of your job that I don't think the members realize is how you have to surge after a disaster.
▶ 2:29:42I mean, you don't run an agency with, you know, with the anticipation you're going to have a storm every day. So, you try to have to be efficient with your resources. And so, you know, explain to us a little bit how challenging that is and how important it is, but how you manage the surge component to take care of people. Well, we've brought in an experienced leader in disasters, Chris Stallings, who is ensuring that he brings to bear all of his experience uh in responding to disasters on the ground in Georgia and a national network.
▶ 2:30:13uh and he is on the phone with states every single day and un also monitoring weather developments or uh other developments that might constitute a disaster to ensure that we are a ready rapid response force when it happens. And I think the job that we've done to date is uh reflective of the job we will continue to do.
▶ 2:30:36We're reporting to you monthly on the resources left in that program which are under the current budget sufficient to get us uh well through the year uh at current elevated levels. So we're not only managing the people resources but the financial resources and partnering with states as we do every single day. Well, it's crazy. You take a a storm like Milton, incredible damage to Florida, but it was one of the worst storms in the history of Georgia and North Carolina.
▶ 2:31:04So, it's not just work in one state, it's multiple states. Um, I just don't think people realize how much you have on your plate and um and how much efficiency you've done in a short time you've been there. So, thank you for your leadership. Thank you, Congressman. It's an honor. Gentleman yields back. I now recognize Mr. Latimer from the great state of New York for five minutes. Thank you, Mr. Chairman. Thank you, Madam Minister. I stay in close.
▶ 2:31:36Sorry. Thank you. Sorry about that. I apologize. Um, thank you, Mr. Chairman. Thank you, Madam Administrator. Uh, I want to report back to the businesses in my uh communities which I stay in close contact with some of these information. It is correct that you have closed the New York City SBA office in Federal Plaza. Is that correct? Uh, Congressman, we we are uh working on moving offices out of sanctuary cities. I'm asking, did you close the office? Is it still open or is it closed at this moment in time?
▶ 2:32:06I believe it's still open. It's still open. Uh, I'll note that Federal Plaza is where Federal Courthouse is where uh we have New York uh uh police department headquarters and other government uh organizations right in the Wall Street area. Very safe, secure area and easily accessible by mass transit. Um, have we uh are we continuing to operate just for nearby purposes the Bridgeport, Connecticut office or we intend to close that? Uh, I can get you a list of the offices that we currently have open.
▶ 2:32:34I believe we still have it and and we have our small business development centers as well across uh the New York and Connecticut. And what about Newark, New Jersey? Is that office uh open closed? Uh planned to be closed? Uh like I said, I can get you the full list. Uh right now it's I believe they're operating. All right. I will I will share that. I will share that with the folks had no staff. What is the headcount of the um uh expected of the Long Island office that will replace the New York City office?
▶ 2:33:02Well, certainly we want to optimize our field to ensure that small businesses are being served. We think that uh sometimes for small businesses to approach a federal building can be intimidating and not as accessible and particularly when they're in sanction. I don't mean to be rude, but you I I just wanted a specific number. You don't have that number at the state. Yeah, we're developing it. Continue. So, I'll report that we don't know how how many people will be in the Long Island office replacing that which is New York City to meet the needs of small business.
▶ 2:33:26Uh when I went on to your when I went on to your uh website, uh I did not see any specific information regarding tariffs and that is the single most asked question that I get from small businesses. What are the tariffs? What's the percentages? Do you intend to have a distinct page on small business website that a uh a business can go to to look at and see what the tariff policies are?
▶ 2:33:48Congressman, on our homepage, we have our onshoring portal that allows small businesses to a access resources that can direct them to onshore suppliers to strengthen their supply chains and ensure that they But you don't have specific information that that when when a business is trying to price its product or service, it needs to know certain specific information and it needs to know exactly what the tariffs are for the particular country, for the particular product. Just yesterday, there was an announcement that steel and aluminum may be going from 25% up to 50%.
▶ 2:34:18We don't know if that's true. There may be a deal that comes down tomorrow or maybe not with a company and and I want to be able to direct someone and so either you do or you won't have that in the Small Business Administration website. Do I assume that that is not the case? You're going to refer them to some other location for that information. The the tariff conversations are ongoing and the president has implemented 10% reciprocal tariffs in the meantime and uh administration will continue to ensure that. All right, we'll try to find the information I can. I'll share it.
▶ 2:34:45uh do should I inform uh the the small businesses in my area that uh the organization is going to cease all efforts for women, minority, and disabled owned businesses uh the initiatives that have existed in the past given the policies toward inclusion, diversity, and equity. Uh that's incorrect, Congressman. We're streamlining and unifying our services to ensure that there's not confusion and uh too much bureaucracy for small businesses to hear to deal with.
▶ 2:35:12does not mean there will continue to be programs for women, minority, and disabled. Our services are available to all who qualify. We don't pick winners and losers. We don't Well, no one's asking you to pick it, but there have been specific initiatives, I'm not meaning to be contentious, but there's been specific initiatives to assist those who are womenowned businesses, minority owned business, and disabledowned businesses. And those initiatives, which assist people in those categories, are they going to be continued? Are they going to end? We continue our uh compliance with statutory requirements for small business contracting.
▶ 2:35:43That doesn't that doesn't sound like a a firm commitment, but I appreciate your answers. Uh Mr. Chairman, I yield back my time. Gentleman yields his time back. I now recognize Mr. Jack from the great state of Georgia for 5 minutes. Well, thank you, Mr. Chairman and administrator as the only Georgian on this uh committee. I'm very excited for your testimony today and I very much enjoyed working not just with you but many of your senior leadership within small business administration during my previous life when I worked for President Trump in the White House.
▶ 2:36:12I heard some of my colleagues invoke uh Richard's name Mr. Kenan who I think is doing a fantastic job for you Wesley as well. So want to commend you for the team that you've assembled around you and likewise your leadership. um for my colleagues across the the deis and likewise for anybody watching at home. I I would love to walk through uh the impact that you've already created in my district in a positive way.
▶ 2:36:35In April, you took time to come visit Troop County and uh again for everybody to understand the time and devotion she gave to my district and our state. Uh she came to Troop County. She visited uh we together visited uh Jane Foods uh used to be known as Kimbles. And I say that because it's interesting. They they shared with us that they started through an SBA loan and that's one of the reasons why they continue to serve a community I represent for the last 50 years.
▶ 2:37:02Uh we then had a wonderful roundt with the troop Lraange Chamber of Commerce and thereafter walked down a few streets in Lraange visit Solomon's department store been around for over 100 years a small business. Had lunch at Charlie Joseph's went to Tasted Lemon Restaurant. So, I just want to commend you for the attention that you've already provided to to my district and welcome any thoughts from that trip uh with respect to what you learned. Well, thank you, Congressman. It was great to be with you in the third district in in Lraange walking on the town square.
▶ 2:37:31It's you know, these main streets are truly the the heartbeat of our country. And um you know, what we saw was um not just the ingenuity of Main Street and how they uh create jobs and opportunity. We we also visited a manufacturer and and saw that they are spring-loaded for growth thanks to President Trump's policies and we're really pleased to be able to uh promote the administration's agenda of made in America manufacturing.
▶ 2:37:58We heard from an aerospace manufacturer that with the uh big beautiful bill act if it passes there will be more investment more jobs in this country more made in America. So from Main Street uh from Charlie Joseph's to all the way to uh aerospace manufacturing, it's vitally important that we support the administration's agenda with access to capital, reducing regulation that is so burdensome. We heard that from every small business owner.
▶ 2:38:27And then we also heard the need to reduce um uh regulations, spending, and taxes. So that's just the the consistent focus we hear. But it's really great to see that in a state like Georgia, it's working and manufacturing is very strong. Well, and I'm glad that you mentioned too that your your role was leading the Small Business Administration to fulfill the administration's agenda and the president's priorities.
▶ 2:38:51Um, and to to respectfully rebut some of my Democrat colleagues line of questioning throughout this hearing with respect to the location of offices, I just want to clarify over 70% of Americans support President Trump's immigration policies and they do not want to see in the incentive structure that we saw over the last four years reward illegal immigration.
▶ 2:39:10So by uh by working with jurisdictions that respect federal law enforcement policy and honoring those jurisdictions that do so, which by the way should be every jurisdiction across America, it's a shame that it's not. In effect, in my mind, you're fulfilling what the American people demanded at the ballot box last November. And welcome any thoughts from you again with respect to the relocation of some offices. Absolutely. President Trump won in a landslide because people want the border uh the open border policies to end.
▶ 2:39:39They want their cities and streets to be safe. They want to be in cities that uphold federal law, that cooperate with ICE. And uh I'm grateful for his leadership and I'm I'm proud to support those policies. So we see that working because we know that small businesses have often been terrorized by crime and worse. Um we've we've heard horrible stories about this and we're making sure that small businesses are safe, that our employees are safe, and that we support jurisdictions that support federal law.
▶ 2:40:07And in our last 50 seconds of this hearing today, would love for you too just to walk through made in America is something that we all very much care about. Again, that was a cornerstone campaign promise President Trump made and everyone else uh on this side of the day has made uh during our campaigns that led us to the House majority. Would welcome any closing thoughts from you on what SBA is doing to ensure that we continue to fulfill that promise.
▶ 2:40:29Well, the SBA is supporting President Trump's focus on made in America and and we're so proud to have our made in America manufacturing initiative to be out with manufacturers across the country who are investing in advance manufacturing, who are going to regain our industrial dominance uh in the world. Uh and President Trump has been the only president uh for decades to have the backbone to stand up against countries that have put this on the backs of our manufacturers and our hardworking Americans where their cities were hollowed out.
▶ 2:41:00So we're grateful to President Trump and supporting his work there. Thank you, Administrator. Mr. Chairman, I yield. Gentleman yields back. Uh I'd like to thank uh Administrator Leler for being here today for your testimony and for taking time to come to see us. And also I'm uh both sides have participated fully in this hearing and we're glad for that. And without objection, members have five legislative days to submit additional materials and written questions for the witnesses to the chair which will be forward to the witness. I ask a witness to please respond promptly.
▶ 2:41:30If there's no further business without objection, the committee is adjourned.