▶ 0:19:26to say the pledge of allegiance. And
▶ 0:20:36The committee will now come to order and a quorum is present. Before I get into my comments, I would like to say it's going to be a busy day. We're going to have members from both sides of the aisle uh coming to and from uh the small business committee. Uh so just uh be aware um that there'll be comingings and goings u of members. So without objection, the chair is authorized to declare a recess of the committee at any time as required by house rules. A copy of the legislation measures have been made available to members and the public at least 24 hours in advance.
▶ 0:21:06Pursuant to committee rule 13 and house rule 11, all votes will be rolled to the end of the meeting. Without objection, the committee will vote electronically in accordance with committee rules and regulations developed by the House Committees on Rules and Administration. Before recognizing myself for opening remarks, I want to pass along a brief message from Chairman Williams, who could not be here today due to a family matter. He is very proud of the progress made by this committee this year, especially the five bills being considered today.
▶ 0:21:35The chairman urges support of all five bills for consideration today and looks forward to this committee continuing its great work for the American people. And I'll recognize myself for an opening opening remarks. Today we we will mark up five important bills that support small businesses across America. These bills will revitalize American manufacturing, support rural entrepreneurs, protect taxpayers dollars, and hold fraudsters accountable. Small businesses are vital to the American economy.
▶ 0:22:04Under President Trump's leadership, small business optimism is at an all-time high. And that didn't happen by accident. It happened because we are cutting taxes, reducing burdensome regulations, and ensuring entrepreneurs have the freedom to grow. These bills build on all that momentum. This committee is dedicated to unleashing American manufacturing, strengthening our domestic supply chains, and keeping investment in good paying jobs at home rather than overseas.
▶ 0:22:32These bills reflect those same commitments. We will meet the needs of small American manufacturers, encourage greater private investment into critical technologies, and reinforce support for rural entrepreneurs. Additionally, these bills hold fraudsters accountable to preserve taxpayer trust. Members of this committee on both sides of the aisle have been working tirelessly to get these bills to where they are today.
▶ 0:22:56I look forward to working with my colleagues so we can continue to pass meaningful legislation that empowers small businesses and strengthens our communities. With that, I look forward to today's markup and yield to the disting distinguished ranking member from New York, Miss Velasquez.
▶ 0:23:12Thank you, Mr. Chairman, uh, for holding this markup to discuss policies that will strengthen the services SBA provides to America's 35 million small businesses. Today we will consider four bipartisan bills negotiated in good faith and in the spirit of collaboration.
▶ 0:23:32First, the Investing in All of America Act of 2025 as amended will give small business investment companies or SBIC's additional leverage when they invest in small businesses in rural or underserved communities, small manufacturers or small businesses critical to our national security.
▶ 0:23:55Second, the Office of Rural Affairs Enhancement Act will empower the SBA's Office of Rural Affairs by elevating its leader role to that of an assistant administrator and requiring the office to host webinars and outreach events.
▶ 0:24:13Third, the SBA fraud enforcement extension act would hold frosters accountable for exploiting pandemic relief programs intended for America's small restaurants and performance venues by extending the statute of limitation for fraud offenses.
▶ 0:24:33And for the SBA IT modernization reform act of 2025 would require the SBA to implement 11 recommendations made by the Government Accountability Office to reform future IT modernization projects. These four bills make common sense policy changes that will meaningfully make the SBA a stronger resource for small businesses across the country.
▶ 0:25:00I am proud to support them and I thank my colleagues on both sides of the aisle for their hard work and thoughtful discussion to get these bills to a good place. Unfortunately, we were not able to reach an agreement on the Mate in America manufacturing finance of 2025. On the surface, the idea may sound good, but with any bill, you must get past the message and do the due diligence on the policy.
▶ 0:25:29I however I am not ruling out further negotiations over the summer provided you work with us to raise loan limits for small manufacturers in a way that maintains the integrity of SBA lending programs and protects taxpayers dollars. Thank you and I yield back.
▶ 0:25:49Thank you very much. Does any other member seek recognition for the purpose of making an opening statement? Seeing none, we will now move to consideration of the first bill. Consideration of HR 2066, Investing in All of America Act of 2025. The committee now moves to consideration of HR 2066, the Investing in All of America Act of 2025, introduced by Representative Muser and Schlatten. The the clerk will report the bill.
▶ 0:26:19HR 2066, a bill to amend. Without objection, HR 2066 is considered as read and open for amendment. The bill sponsor, Mr. Muer, has an amendment in the nature of a substitute at the desk. The amendment has been distributed in advance. The clerk will report the
▶ 0:26:34Amendment in the nature of a substitute to HR 2066 offered by Mr. Muer.
▶ 0:26:38Without objection, the amendment is considered as read and the substitute will be considered as base text for the purpose of further amendment. I now recognize the bill sponsor, Mr. Muer, for a statement on the bill and the Thank you, Mr. Chairman.
▶ 0:26:53Uh, my bipartisan legislation, HR 2066, the Investing All of America Act, would incentivize small business investment companies, SBIC's, to deploy additional capital to small businesses located in rural or low-income areas, as well as small businesses in manufacturing and national security technology sectors. SBIC's are privately owned and managed investment funds that are licensed and regulated by the by the SBA.
▶ 0:27:18These companies raise private capital which is then matched with SBA guaranteed leverage. SBIC's invest both their private capital and SBA leverage into qualifying small businesses and communities across the country. Importantly, the SBIC program operates at zero subsidy cost to the American taxpayer. Over the past two decades, SBIC backed businesses have created three million new jobs and supported an additional 10 and a half million jobs over the last two decades.
▶ 0:27:46Over the last 5 years, SBIC's invested over $130 billion in small businesses across America, including $1.3 billion in my home state of Pennsylvania. Though the SBIC program is successful, recent studies have shown that less than 20% of SBIC investments reaches low to middle inome communities, especially rural ones.
▶ 0:28:05The Investing in All America Act encourages private capital investments in parts of America that are often overlooked by not counting dollars invested in these areas against individual SBI SBIC's leverage cap. It is important to note that the bonus leverage included in this legislation does not change the cost or the risks of the SBIC program. The existing model operates at no cost to the taxpayer and this will remain the same.
▶ 0:28:31The Trump administration SBA administrator Kelly Leler are focused on fueling small business growth and reinvigorating domestic manufacturing throughout the United States. This legislation supports that effort by encouraging increased private investment in the manufacturing sector by expanding access to capital and reducing barriers to entry. This legislation helps manufacturers scale operations and create high quality American jobs. Before I can conclude, Mr.
▶ 0:28:57Chairman, I'd like to ask unanimous consent to insert a letter into the record from the Small Business Investor Alliance in support of this legislation.
▶ 0:29:04Without objection.
▶ 0:29:06Thank you. I would also like to thank Representative Skolken for her partnership on this legislation and the uh bipartisan group of members who have co-sponsored it. I'd also like to thank Chairman Williams for bringing this bill forward for consideration today. this legislation will have the tangible positive impacts uh we plan to for them to have for our communities. Uh a similar version of this legislation passed this committee and houseed unanimously last Congress.
▶ 0:29:33So I encourage my colleagues to support this legislation and Mr. Chairman I yield
▶ 0:29:38And I'll recognize the bill's co-sponsor, Miss Colton, for a statement on the bill and the amendment.
▶ 0:29:44Thank you, Mr. Chair. I am so proud to speak on my bill, the Investing in All of America Act, uh, which I'm so proud to co-sponsor uh, with Mr. Muer. Michigan is home to almost 1 million small businesses. That's 99.6% of all privatelyowned businesses in the state on any given day. The issues of access to cap the issue of access to capital is among the greatest challenges for our small businesses.
▶ 0:30:14For low-income or rural communities and small this issue hits even closer to home. Recent studies have shown that less than 20% of small business investment companies, their funds are reaching these communities.
▶ 0:30:30For a program with a long history of success, this disparity is unacceptable and it is incumbent upon us in this committee to remedy the program so it serves small businesses in every corner of our country.
▶ 0:30:47That is why I am so proud to leave the invest the lead the investing in all of America act which would incentivize the employment deployment of additional capital to the communities and small manufacturers that need it most. Simply put, this bill would exclude certain amounts of leverage invested in these businesses from the SBIC's leverage cap.
▶ 0:31:10This bill will enable further support for small businesses and underserved communities in addition to small manufacturers and other businesses in critical manufacturing sectors. This bipartisan solution would bolster the SBIC's program's success as a zero subsidy public private partnership by encouraging investments in rural areas and industries that are vital to the nation's defense both here in West Michig both here in West Michigan and across the country.
▶ 0:31:40It is critical that these businesses can get the investment they need to continue growing our economy. I strongly urge members to vote yes on this important legislation. And thank you, chair. I yield the rest of my
▶ 0:31:53Thank you. Are there any me other members who wish to be recognized for a statement on the bill? Uh seeing none, I would now like to recognize the ranking member to speak on the bill and the
▶ 0:32:03Thank you, Mr. Stover, and thank you to Representatives Muer and Scolton for your bipartisan leadership on this bill. HR 2020 2066 makes statutory improvements to the SBIC program to provide SBIC's with access to additional leverage when they invest in certain sectors.
▶ 0:32:24Due to their often capital intensive nature and early revenue profile, small businesses operating in America's critical technology sector need institutional investors with longerterm time horizons to raise capital. Yet due to statutory constraint, these investors are often limited in their ability to participate in the SBIC program.
▶ 0:32:51By providing SBIC's with additional leverage flexibility, HR more appropriately matches the SBIC program with the capital needs for America's small businesses in critical sectors. This alignment will enable the SBA and defense department to continue to successfully carry out their joint SBIC critical technology initiative.
▶ 0:33:18And by providing SBIC's with additional bonus leverage, we are encouraging investment in small businesses in our communities that need it the most. I again want to thank both Representative Muer and Scolton for their leadership on this issue. I also want to thank Chairman Williams and his team for their collaboration on technical edits to this bill. I believe through the effort of all parties, we have gotten this bill to a good place.
▶ 0:33:47I'm proud to support it and encourage members to vote yes. I yield back.
▶ 0:33:55Thank you. I now recognize myself to speak in support of this legislation for 5 minutes. One of those one of the most significant barriers to economic growth across our country is the lack of access to capital for small businesses. While some regions and industries are flushed with investment, too many small businesses struggle to secure the funding they need to grow.
▶ 0:34:15HR 2066, the Investing in All of America Act, is a bipartisan common sense bill that strengthens one of the federal government's most successful public private partnerships, the Small Business Investment Company Program, or SBIC. This program was created to unlock private capital and fuel small business growth. SBIC's are privately managed investment funds licensed and regulated by the SBA. The SBA provides government guaranteed funding to qualified SBIC's to increase investments in small businesses.
▶ 0:34:45This bill would further strengthen the SBIC program by encouraging investments in rural areas, American manufacturing, and critical national security technologies. Additionally, this bill directs no new spending and mandates, allowing the program to continue operating at zero cost to the taxpayer. With these improvements, SBIC's could unleash nearly 20 billion into American small businesses, expand operations, and drive job creation across America.
▶ 0:35:14I urge my colleagues to vote yes on HR 2066, and I yield back. Does anyone wish to offer an If none, seeing none, the question now occurs on the adoption of the substitute amendment offered to HR 2066 by Mr. Muer. All those in favor say I.
▶ 0:35:35All those opposed say no. In the opinion of the chair, the eyes have it. The amendment in the nature of a substitute to HR 2066 is adopted. The question is now on favor favorably reporting HR 2066 as amended to the house. All those in favor say I.
▶ 0:35:55All those opposed say no. In the opinion of the chair, the eyes have it and HR 2066 is agreed to.
▶ 0:36:04Yes. For what purpose does the gentleman seek recognition?
▶ 0:36:06I'd like to request a recorded vote.
▶ 0:36:09A recorded vote has been requested. A roll call vote is ordered. Pursuant to committee rule 13 and House Rule 11, further proceedings on the bill are The committee now moves to consideration of HR4549, the Office of Rural Affairs Enhancement Act, introduced by Representatives Gutlander and Weed. The clerk will report the bill. a bill.
▶ 0:36:38Without objection, HR4549 is considered as read and open for amendment. I now recognize the sponsor of the bill, Mrs. Goodlander, for a statement on the bill.
▶ 0:36:47Thank you, Madam Chair, Ranking Member Velasquez. Thank you for the opportunity to speak about this bill. I'm very proud to sponsor the Office of Rural Affairs Enhancement Act. This is a bipartisan common sense bill that's going to ensure the voices of rural America aren't just heard, but they they are prioritized within the Small Business Look, this bill comes directly from conversations that I've had with rural small businesses all across my home state,
▶ 0:37:17New Hampshire. Everywhere I go, from Chesterfield to Colebrook, I hear the same basic thing from so many small rural businesses that federal programs designed to help them are simply not tailored to their needs. And even more often, they fail to be able to reach them at all.
▶ 0:37:38I've heard this from farmers in Lowden as recently as Saturday, from retailers in Lisbon, small manufacturing businesses in Swansea, and loggers in West 35 years ago, in 1990, the Office of Rural Affairs was created to address this precise set of problems. But what we've seen over the last 35 years is that this office has underperformed. It's been chronically understaffed and underresourced. It needs clear direction.
▶ 0:38:07It needs stronger tools to really be able to do what we all want to do, which is to deliver for our rural small businesses. And that's exactly what our bill aims to do. It ensures that the office is led by someone with direct experiment experience in rural economic development. This is a big core pillar which is accountability.
▶ 0:38:28It requires annual reporting to Congress um which is going to be very valuable reporting that will help us track and and keep this office accountable um with respect to impact and improvement. And it's also going to improve access. This this bill mandates regular outreach to small businesses in meaningful ways that are going to ensure that the Small Business Administration is meeting small businesses in rural America precisely where they are. So this bill is about accountability.
▶ 0:38:56It's about access and above all it is about basic fairness. Basic fairness for rural America rural America's entrepreneurs and small businesses who are far too often forgotten, who have been unheard for far too long and who have so much to offer our great country. So in passing this bill, we are saying we would be saying clearly to our our rural small businesses, we see you, we hear you, and we are fighting for you.
▶ 0:39:22So, I urge all of my colleagues to join me in supporting the Office of Rural Affairs Enhancement Act. And I want to thank my colleague from the great state of Wisconsin, Tony Weed, for partnering with me in this bipartisan effort. And with that, I yield back. Are there any other members who wish to be recognized for a statement on the Seeing none, I would like to recognize the ranking member to speak on the bill and amendment. Thank you, Madame Chair.
▶ 0:39:52I am pleased to support legislation to enhance the Office of Rural Affairs, and I commend Miss Goodlander, Mr. Wed, and Mr. Golden for their commitment to making this office operate more effectively for rural small businesses. In 2019, Mr.
▶ 0:40:10Golden as a former member of the small business committee raised this as one of his top priorities for the committee because the office has been largely vacant for 15 years. He worked to ensure resources were devoted to the office. Similar legislation was approved by the committee in the last congress. I am delighted that Miss Goodlander is championing it this congress.
▶ 0:40:37Rural small businesses are powerful drivers of economic growth across the country, fueling the agriculture, tourism, manufacturing, and energy sectors. Yet, they receive disproportionately fewer SBA loans and resources than their urban In FY2025, only 16% of 7A loans and 13% of 504 loans got to
▶ 0:41:07rural areas. So today, we are sending a message to 7A lenders and 504 companies that rural America must be taken care of. By codifying the office of rural affairs, we will ensure that rural entrepreneurs have a permanent advocate at SBA to help them overcome persistent challenges. We have heard the challenges and we know the gaps. Now it is time to act.
▶ 0:41:36I urge my colleagues to vote yes. I yield back my time.
▶ 0:41:42Thank you, Ranking.
▶ 0:41:44Thank you, ranking member. I now recognize myself to speak in support of this legislation for five minutes. I rise in support of HR4549, the Office of Rural Affairs Enhancement Act. Rural small businesses face distinct and persistent challenges that often hinder their growth and sustainability. These challenges include a shortage of business assistance resources and limited access to capital. This bill addresses these challenges by clarifying the critical role of the SBA's Office of Rural Affairs in rural entrepreneurship.
▶ 0:42:14A recurring theme with the Office of Rural Affairs is that it is it often goes unused or is ignored at the detriment of many rural communities. At the heart of this bill is a commitment to leadership that understands and prioritizes the rural economy. This bill ensures that the office will be utilized to reach rural entrepreneurs where they are where they are Main Street America. These efforts will strengthen local networks and equip entrepreneurs with the knowledge and support necessary for long-term growth.
▶ 0:42:44HR4549 is about investing in the future of rural America, creating jobs, and ensuring resources reach all businesses across America. I urge my colleagues to support this legislation and I yield back. Does anyone wish to offer an Seeing none, the question is now on favorably reporting HR4549 to the House. All those in favor say I. I.
▶ 0:43:09All those opposed say no. In the opinion of the chair, the eyes have it. An HR4549 is agreed to.
▶ 0:43:15Madam Chair,
▶ 0:43:16for what purpose does the gentleman seek
▶ 0:43:19I request a recorded vote.
▶ 0:43:20A recorded vote has been requested. A roll call vote is ordered. Pursuant to committee rule 13 and House rule 11. Further proceedings on the bill are The committee now moves to consideration of HR4495. the SBA Fraud Enforcement Extension Act introduced by Representatives Downing and Conway. The clerk will report the
▶ 0:43:44HR 4495, a bill to extend the statute.
▶ 0:43:48Without objection, HR4495 is considered as read and open for amendment. I now recognize the bill sponsor, Mr. Downing, for a statement on the bill.
▶ 0:43:57Thank you, Madam Chair. Uh over the course of the coronavirus pandemic, the small business administration carried out an extensive effort channeling funding to small businesses facing unprecedented economic challenges. In total during this period, SBA provided over $1.2 trillion in emergency loans and grants to small businesses.
▶ 0:44:19Two of these SBA co era programs, the restaurant revitalization fund and the shuttered venue operators grant targeted financial assistance towards businesses that rely on confined gathering places and were thus disproportionately harmed by lockdown policies. While CO era era SBA programs in many cases delivered muchneeded aid to small businesses, they were also exploited to an un unacceptable degree by criminals seeking to defraud American taxpayers and secure illegitimate loans and grants.
▶ 0:44:50According to a 2023 report from the SBA's Office of Inspector General, SBA distributed over $200 billion in potentially fraudulent funds in its COVID era This level of fraud undermines the integrity of the SBA. It is essential that we track these criminal fraudsters down and hold them accountable.
▶ 0:45:12Notably, the statute of limitations for prosecuting fraud for SBA's restaurant revital revitalization fund and the shuttered venue operators grant is set to expire in December. If Congress doesn't act, law enforcement will not be able to investigate and prosecute these This is why I introduced HR4495, the SBA fraud enforcement extension act. This bill extends the statute of limitations from 5 years to 10 years for fraud with respect to SBA's restaurant revitalization fund and shuttered venue operations grant.
▶ 0:45:43This extension will provide critical time for law enforcement to track down fraudsters and hold them accountable. Moreover, it will establish parody with the statute of limitations for fraud for other SBA co era programs like the paycheck protection program and the economic injury disasters loan. Uh I'd like to personally thank my colleague and former uh Air Force veteran Dr. Conway uh for co-leading this legislation with me.
▶ 0:46:09The fraudulent uh spending of federal taxpayer dollars undermines our trust in our government. It is essential that law enforcement is given the proper tools and authority to punish those who subvert the integrity of the SBA uh and to ensure fraudsters face consequences for their actions. With that, I urge my colleagues to support this legislation. And Madam Chair, I yield my time.
▶ 0:46:31Thank you. I now recognize Mr. Conway for a statement on the bill. Uh thank you uh Madame Chairman and thank you certainly to my friend and fellow Air Force uh officer Troy Downing for uh joining me in uh bringing uh this while this important program uh to account uh for those parts of the program that didn't work according to the expectations of the American people.
▶ 0:46:54American people uh understood very well how important it is uh to help uh during the pandemic and uh but these are taxpayer dollars and the American people expect that those taxpayer dollars are going to be spent according to the to the law and that those who violate the law should be held uh to account for those transgressions. Um more than 30 million small businesses were negatively impacted by the co 19 pandemic.
▶ 0:47:20the federal government quite properly took action in an unprecedented way to ensure that money flowed uh into uh our small businesses which are so important to our economy. And over the course of 18 months, the SBA administered four major loan programs and delivered 22 million loans and grants totaling 1.2 trillion.
▶ 0:47:40It's estimated after the SBA undertook um its um review and issued a report called protecting the integrity of pandemic relief programs and an estimated onethird of that $1.2 trillion uh went to persons who fraudulently obtain them and businesses who fraud fraudulently obtain them.
▶ 0:48:03As of June this year, uh the office of investigator general has opened 31 uh I would say just 31 investigations related to potential fraud in these programs uh w with uh by opening 25 cases in the um restaurant relief uh program and uh six uh open cases in the shuttered venue program. To date, the OG's efforts have resulted in charges against 25 individuals with 14 criminal convictions and more than $61 million in recovery.
▶ 0:48:32How however it remains important for OA that it has the appropriate amount of time to uh process these fraudulent claims and why it's so important that the Congress act uh to extend the statute of limitations so that the SBA uh and the OAG uh can get after these frauders who have taken advantage of the large s and generosity um uh and goodwill of their fellow citizens here in the United States.
▶ 0:49:00Um I would note uh that in the restaurant um revitalization fund nearly $29 billion was spent in that program and in the um shuttered venues operators grant uh justif $15 million was spent uh in that program. Uh we understand small businesses in Jersey. It's um nearly half of our jobs are created there.
▶ 0:49:25We have u tens of thousands of restaurants um and um and uh hundreds of thousands of small businesses. They're very important to our economy. But all of those people, all of those people work very hard and they want their tax dollars spent in a way that meets their expectations uh for a competent program uh that is free of fraud. Uh that's the best way, one certainly good way to eliminate fraud and waste uh in federal spending.
▶ 0:49:55So um as has been mentioned uh the statute of limitation will be extended and I only hope that as we look forward uh in time that we will have enough people there to actually get after all this money and take whatever other steps we need to take to make sure that these fraudulent funds are returned uh uh to the federal government uh so that the people who through their tax dollars support them can be confident uh that we're doing the accountability job we must do here in the government. Thank you.
▶ 0:50:23Uh again to my colleague and thank you madam chairman uh for um uh allowing uh this bill to move forward.
▶ 0:50:34Are there any other members who wish to be recognized for a statement on the Seeing none, I would like to now recognize the ranking member to speak on the bill.
▶ 0:50:42Thank you, Madam Chair, and I would like to lend my support to the legislation spons sponsored by Mr. Downing and Dr. Conway. I commend both of you for working together to extend the statute of limitations from five years to 10 years for the additional COVID programs. This bill is a good compliment to the one former ranking member Luke Meyer and myself enacted into law for the PPP and idol.
▶ 0:51:11During the pandemic, the SBA executed 14 years of lending in 14 days to help keep small businesses stay afloat. This program helped millions of small businesses across the country. Unsurprisingly, there was fraud committed by bad actors looking to take advantage of our work to assist entrepreneurs in their time of need.
▶ 0:51:35While we may never know the full extent of that fraud, we do know for certain that the majority of that fraud took place in the first nine months of the pandemic. To combat fraud, the previous administration reinstated the internal controls in the PP PPP and IDO programs and put strong upfront controls in place for the RRF and SVOG programs. And for the most part, it worked.
▶ 0:52:06Today, the Office of Inspector General's work has resulted in charges against 25 individuals, 14 criminal convictions, and more than 60 million $61 million in recoveries. The OIG has 31 open RF cases and six open SVOG cases.
▶ 0:52:28While these numbers may seem modest, each case is complex, involving layered transactions, false documentations, and financial concealment. These cases take time to investigate and prosecute, and we owe it to the experts doing the work to give them the tools they need. But I will be remiss if I didn't mention that extending the statute of limitation is only part of the equation.
▶ 0:52:57We also need to provide full funding so that they have the resources to root out fraud and we cannot talk about fraud and then look the other way while the administrator cuts the agency staff by 43%. More than 100 employees were reviewing these cases awards to ensure the money were used in accordance with the terms of the grant.
▶ 0:53:23And despite multiple requests for information about staff cuts, we do not know whether SBA retained these employees. Without sufficient funds dedicated to oversight and investigative staff, SBA and the OIG may not be able to fully recover the monies. In closing, I commend Mr. Doning and Mr. Conaway for leading this effort and support the bill. I yield back.
▶ 0:53:52Thank you. I now recognize myself to speak in support of this legislation for five minutes. HR4495 is essential to extend the soontoxpire statute of limitations for two pandemic era relief programs. Shuttered venue operators grants and restaurant revitalization fund. First, I want to thank my colleagues across the aisle and their staff for working with us to deliver this important piece of legislation. Taxpayer dollars should be protected at all costs.
▶ 0:54:21Unfortunately, fraudsters, too many fraudsters, sto COVID relief funds from small businesses across the country. These fraudsters hope that the statute of limitations for their crimes pass, allowing them to skirt justice. We cannot let this happen. This committee is committed to holding fraudsters accountable. Earlier this year, the House passed HR825, the Assisting Small Businesses Not Fraudsters Act.
▶ 0:54:45Once passed by the Senate and signed into law, that bill will cut off the ability for the same individuals to have access to the agency that they defrauded. The ranking member led the charge in the 117th Congress to hold fraudsters accountable in the paycheck protection program and COVID economic injury disaster loans. I'm glad this bipartisan effort will do the same for SVOG and RRF programs.
▶ 0:55:10This legislation sends a clear message that the era of taking advantage of the American taxpayer is over. I urge my colleagues to support this legislation and I yield back. Does anyone want to uh does anyone wish to offer an amendment? Seeing none, the question is now on favorably reporting HR4495 to the House. All those in favor say I.
▶ 0:55:34All those opposed say no. In the opinion of the chair, the eyes have it. HR4495 is agreed to. The vote has been requested. A roll call vote is ordered. Pursuant to committee rule 13 and House rule 11. Further proceedings on the bill are postponed. All right. The committee now moves to consideration of HR4491, the SBA IT modernization reporting act introduced by representatives Cisneros and Jack. The clerk will report the bill.
▶ 0:56:02HR 4491, a bill to require the admin. Without objection, HR4491 is considered as read and open for amendment. I now recognize is Mr. Cisneros available. Yes. I now recognize the bill sponsors, Mr. Cisneros for a statement on the
▶ 0:56:18Thank you, uh, Madame Chair. I'd like to thank the the chairman and, uh, the the ranking member for their support on this. I am proud this committee can work in a bipartisan manner so that SBA can modernize its IT infrastructure and improve its services to small business.
▶ 0:56:33I thank Representative Jack for joining me in introducing this SBA IT Modernization Reporting Act, which will require the SBA to implement 11 recommendations made by the Government Accounting Office to address future IT modernization projects and keep Congress informed of these ch of those changes. Billions of dollars in federal contracts are awarded to small businesses every year, and the SBA plays a vital role in promoting small business participation.
▶ 0:57:01But over the years, the SBA's outdated and inefficient IT systems have made it harder for entrepreneurs to access the resources they need. A recent uh GAO report identified critical gaps in the SBA's modernization efforts from risk management to cyber security and budgeting. Going forward, it is important for our small businesses that the SBA follow best practices when modernizing IT systems.
▶ 0:57:27My bill directly addresses these issues by requiring the SBA administrator to implement 11 GAO recommendations. It also mandates a clear plan of action and ensures that we in Congress are kept in the loop by ensuring we receive a copy of the implementation plan, a briefing on the plan and the details and timeline for all actions within the plan. This means better oversight, better execution, and most importantly, better service by the SBA for all small businesses.
▶ 0:57:56I worked across the aisle with Rep. Jack to introduce this common sense bipartisan legislation which shows that modernizing how the SBA works is not a partisan issue. Together, we can ensure that the SBA is prepared to meet the evolving needs of small businesses. I urge my colleagues to support this bill to ensure we give the SBA modern tools it needs to support the success of America's small businesses. And with that, I yield back.
▶ 0:58:25Are there any other members who wish to be recognized for a statement on the Seeing none, I'd like to recognize the ranking member to speak on the bill. Thank you, Madam Chair, and thank you to Representatives Cisnero and Jack for your work on this important bill. after repeated unsuccessful attempts to develop and deploy a platform that will be a one-stop shop for contracting certifications.
▶ 0:58:53I asked GAO to review SBA efforts and figure out why they failed. An efficient and fully operational IT platform is critical for the SBA to conduct the certifications that open the door to the federal marketplace for so many small businesses.
▶ 0:59:14While I urge SBA to address the shortcomings GIO identify for the UNI unified certification platform, I appreciate that today's bill addresses the underlying issue that go highlighted SBA does not have the processes and procedures in place that should govern any IT modernization project.
▶ 0:59:39Failing to use best practices to manage risk, costs, and security waste taxpayers dollars and puts the information small businesses have provided to SBA at risk. The SBA IT modernization reporting act will ensure that the SBA addresses the root causes that lead IT projects to fall behind schedule, increase cost or outright outright fail.
▶ 1:00:08Again, I appreciate the leadership of our contract contracting subcommittee ranking member, Representative Cisnerto, to move this bill. It strikes the right balance of providing SBA with sufficient flexibility to make necessary changes while holding them accountable through smart congressional oversight. I urge all my colleagues to support it and I yield back. Thank you. I now recognize myself to speak in support of this legislation for 5 minutes.
▶ 1:00:39I rise in support of HR4491, the SBA IT Modernization Reporting Act. Under the Biden administration, mismanagement of the SBA was an all-time high. This was evident with last year's disastrous overhaul of SBA's contract certification system. This committee raised the alarm over the unorganized plan with no internal controls and guard rails to ensure small businesses don't suffer. While the SBA delayed the launch of the contract certification system for months, they ignored our concerns.
▶ 1:01:06The Biden Harris SB SBA left a final product with serious serious flaws, including cyber security risks. Late last year, the GAO reviewed these failures and issued a series of recommendations to strengthen the SBA's policies around IT system upgrades. This bill requires the SBA to implement these recommendations and establish a plan for proper safeguards. This will prevent future disruptions and restore trust in the SBA's ability to serve small businesses efficiently and securely.
▶ 1:01:34I urge my colleagues to support this legislation and I yield back. Does anyone wish to offer an amendment? Seeing none, the question is now on favorably reporting HR4491 to the House. All those in favor say I.
▶ 1:01:47All those opposed say no. In the opinion of the chairs, the eyes have it. HR4491 is agreed to. Madam Chair,
▶ 1:01:57for what purpose does the gentleman seek
▶ 1:01:59Madam Chair, I request a recorded vote.
▶ 1:02:01A recorded vote has been requested. A roll call vote is ordered pursuant to committee rule 13 and House Rule 11. Further proceedings on the bill are The committee now moves into consideration of HR 3174, the Made in America Manufacturing Finance Act, introduced by Chairman Williams. The clerk will report the bill. HR 3174 to a bill to increase loan limit.
▶ 1:02:25Without objection, HR 3174 is considered as read and open for amendment. As designated by Chairman Williams, I now call up an amendment in the nature of a substitute at the desk on his behalf. The amendment has been distributed in advance. The clerk will report the
▶ 1:02:41Amendment in the nature of a substitute to HR 3174 offered by Mr. Williams. Without objection, the amendment is considered as read and the substitute will be considered as base tech for the purposes of further amendment. I now recognize myself for an opening statement on the chairman's bill and the amendment. I am proud to speak about HR 3174, the Made in America Manufacturing Finance Act of 2025, or MAFA for short, a bill that the chairman introduced on May 1st, 2025.
▶ 1:03:11HR 3174 will increase the loan limit for small manufacturers under the SBA 7A and 50 504 lending programs from five million to10 million. This bill will provide American manufacturers the capital they need to invest in new technology as well as hire, grow, and reshore jobs that have been lost. In the last year of President Biden's term, the US lost over 100,000 manufacturing jobs. While this alone is staggering, the decline of the American manufacturing sector did not happen overnight.
▶ 1:03:41It is the result of America last policies that carelessly ship jobs overseas, opening the door for foreign adversaries to fill the void. We must reverse this strength. We must reverse this trend which will require more than just luck. The ability to manufacture in the United States is v vital to our country's economic and national security. President Trump understands this.
▶ 1:04:05As part of his administration's priorities, he has been championing progrowth and pro-American policies that are fueling a domestic manufacturing comeback. I'd like to thank FSG Chairman Dave Joyce and his staff for working with the committee to provide additional loan authority for small manufacturers to account for HR 3174 in the FSG bill approved by the subcommittee yesterday.
▶ 1:04:29HR 31 3174 is essential to keep pace with demand for capital and bring bringing jobs back to the United States. That is why SBA administrator Laughafler and manufacturing and lending stakeholders have come out in support of this bill. Some on the other side of the aisle plan to oppose this bill, claiming that it will add risk to the SBA's loan portfolio.
▶ 1:04:50But the truth is that SBA's modeling shows that the 7A loan fee structure would actually return more fees to the SBA and help ensure the programs remains zero subsidized, costing the taxpayers nothing. The chairman has worked very hard on this legislation and wishes he could be here to speak in support of it. I urge my colleagues to support HR 3174, a crucial piece of legislation that will support small businesses and revitalize the American manufacturing base. I now recognize the ranking member to speak on the bill.
▶ 1:05:21Thank you, Madam Chair. One of my longstanding legislative priorities for modernizing this 504 program raises the 504 loan limit for small manufacturers. But more can be done and I look forward to continuing discussions to further strengthen the program. Turning to 7A.
▶ 1:05:45Last Congress we heard concern from our colleagues on the on the other side of the aisle about rising default rates. I share those anxieties and have since been working to better understand the situation. But apparently we are dismissing the default rates and just ignoring all the data we have worked dilig diligently to collect.
▶ 1:06:13I would like to reach an agreement but it will take more time and more evidence to ensure we are protecting the program and taxpayers. I am committed to continuing continuing our discussions to make thoughtful modifications after additional briefings with the agency. But let me just lay out some concerns with the text as drafted.
▶ 1:06:40Perhaps most frustrating is the fact that there is no evidence to demonstrate that the 78 loan limit needs to be increased. In fact, SBA data shows the opposite. There is greater demand for manufacturing loans of $1 million and less than there is for loans greater than $3 million.
▶ 1:07:06Since there has been over 6,300 manufacturing loans worth $1 million or less, but only 362 loans worth more than $3 million. Maybe there could be a demand now that we have erratic tariff policies harming domestic manufacturers.
▶ 1:07:31Unfortunately, we do not know what the need is, nor evidence that manufacturers cannot access financing in our conventional markets required by the credit elsewhere test.
▶ 1:07:47This remains amongst the question I need answer from SBA and I recognize the loan limits having been increased since 2010 and admit there is a conversation to be had on that topic. However, neither the SBA nor the majority have justified in any way how they arrived at the $10 million limit.
▶ 1:08:14Instead, this number just seemed to be plucked out of thin air and well beyond the adjustment for inflation. More importantly, raising the loan limits does not happen in a vacuum. Defaults have increased annually for the last three years and stands at 3.7%.
▶ 1:08:37More alarming, the 7A loans originated to manufacturers have the second highest percentage of defaults in the program. And I want to repeat that more alarming. 7A loans originated to manufacturers have the second highest percentage of defaults in the program. The 7A program is zero subsidy.
▶ 1:09:02But when defaults are rising, like they are now, the SBA spend more taxpayer money to reimburse lenders for losses, threatening the program's ability to pay for itself and necessitating additional congressional We are on track to reach the overall program cap for the 7A program.
▶ 1:09:26And my fear is that increasing the loan limit for manufacturers risk allowing this loan to use up a disproportionate share of the lending authority which could result in fewer small dollar loans. I recognize that the House FSG appropriations bill proposes an increase to the 7A cap and I appreciate Mr. Williams efforts on this point.
▶ 1:09:55But that is just the first step in a lengthy appropriation process and there is no guarantee if there will be an increase at all. I remain committed to working together to find agreement on raising small business loan for manufacturers but must be done in a responsible way and not at the expense of the program's Chairman Williams and I have agreed to continue working together on this measure and in an effort to make
▶ 1:10:25the bill as strong as possible. With that, I yield back. Thank you. Are there any other members who wish to be recognized for a statement on the bill? Does anyone wish to offer an amendment? Seeing none, the question now occurs on the adoption of the substitute amendment offered to HR 3174. All those in favor say I.
▶ 1:10:51All those opposed say no. In the opinion of the chair, the eyes have it. The amendment in the nature of a substitute to HR 3174 is adopted. The question is now on favorably reporting HR 3174 as amended to the house. All those in favor say I. I.
▶ 1:11:08All those opposed say no. In the opinion of chair, the eyes have it. HR 3174 as amended is adopted and will be reported favorably to the house. The committee will stand in recess subject to the call of the chair. Members uh please return in
▶ 1:11:26at 11 at 11 p.m. to resume consideration of the bills. 11:00 a.m.
▶ 1:11:3111:00 a.m. to resume consideration of the bills on which roll call votes were requested and postponed. Thank you. Thank you very
▶ 1:31:36Thank you.
▶ 1:31:41The committee will come to order. The committee will resume consideration of the bills on which roll call votes were requested and postponed. We will start with HR2066. The question now is on adopting HR 2066 as amended and ordering it favorably to the House. The clerk will open the vote.
▶ 1:32:30Are there any other members who have not voted or wish to change the vote?
▶ 1:32:38If not, the clerk will close the vote. Clerk will report.
▶ 1:32:45Mr. Chairman, on this vote, the eyes are 23 and the nos are zero. The motion is agreed to and HR 206 as amended is adopted and will be reported favorably to the House. The question now is on adopting HR 4549 and ordering it favorably to the House. The clerk will open the vote.
▶ 1:33:16Are there any other members who have not voted or wish to change their vote? If not, the clerk will close the vote. The clerk will report.
▶ 1:33:27Mr. Chairman, on this vote, the eyes are 23 and the nos are zero. The motion is agreed to and HR 4549 is adopted and will be reported favorably to the House. The question now is on adopting HR 4495 and ordering it favorably to the House. The clerk will open the vote.
▶ 1:34:01Are there any other members who have not voted or wish to change their vote? If not, the clerk will close the vote. The clerk will report.
▶ 1:34:10Mr. Chairman, on this vote, the eyes are 23 and the nos are zero. The motion is agreed to an HR 4495 is adopted and will be reported favorably to the House. The question now is on adopting HR 4491 and ordering it favorably to the House. The clerk will open the vote. That's it, right?
▶ 1:34:39Are there any other members who have not voted or wish to change the vote? If not, the clerk will close the vote. The clerk will report.
▶ 1:34:50Mr. Chairman, on this vote, the eyes are 23 and the nose are zero. The motion is agreed to and HR 4491 is adopted and will be uh reported favorably to the House. Without objection, the committee staff is authorized to make technical and conforming changes and members have two business days to file additional supplemental dissenting and minority views. I want to thank all of you for being here today. If there's no further business, this concludes today's markup.
▶ 1:35:16Without objection, the committee stands Heat.
▶ 1:35:57Heat.