Streaming Success: Small Businesses in the Age of Digital Influence

Small Business Administration OversightHouse Small Business · 2025-09-17 · 119th Congress
The House Small Business Committee held this hearing to examine the "creator economy" — content creators, influencers, and social-media-driven entrepreneurs — as a growing segment of American small business, and to explore the tax, legal, trade, and platform-related challenges these creators face. Begins at 0:25:21
Transcript
Highlights

Title

Content creators as small business owners: opportunities and regulatory gaps

Purpose

The House Small Business Committee held this hearing to examine the "creator economy" — content creators, influencers, and social-media-driven entrepreneurs — as a growing segment of American small business, and to explore the tax, legal, trade, and platform-related challenges these creators face. Four witnesses testified about revenue models, intellectual property theft, tariffs, TikTok uncertainty, and the need for federal guidance on right-of-publicity, payment terms, and AI regulation. Begins at0:25:21

Who spoke

Chairman Williams0:25:21: Opened by framing content creators as entrepreneurs, citing over 1.5 million Americans earning a full-time living as creators0:25:52 and YouTube's $55 billion, half-million-job contribution to the economy0:26:18; later questioned witnesses on their motivations and NIL trends0:54:590:56:18.

Ranking Member Velázquez (D-NY)0:27:41: Noted she led 67 colleagues in a letter to the Trump administration on tariffs affecting small businesses and had received no response0:29:04; criticized the TikTok ban's repeated short-term delays, most recently extended a day earlier by three months0:30:47, and entered her tariff letter into the record0:29:25.

Kayla Moran, Founder & Attorney, Kayla Moran Law0:36:18: Said creators need dedicated legal, accounting, and wealth-management support similar to SBA aid for traditional small businesses0:38:12; called for federal right-of-publicity standards to replace a patchwork of state laws0:38:40, and warned that net-60/net-90 payment terms leave creators unpaid for months0:39:46; later urged federalizing state "Coogan law" protections for child performers after payments are sometimes taken by parents1:56:32.

Christina Brennan, President, CelebExperts LLC0:41:20: Described social media as "a marketplace, a workplace, and...a lifeline" for small businesses0:41:50, citing 77% of small businesses using social media per Business Dasher0:58:32; identified cash-flow delays, AI-driven misinformation, and a "resource gap" in creator education as top challenges0:44:04; described a client surgeon's video being stolen and dubbed to sell an unverified supplement0:28:161:28:16.

Nicholas Luciano, Founder & CEO, Trotter House0:44:53: Left a Department of Defense engineering job to found Trotter House, a Western-lifestyle content company with over 8 million followers0:45:54; said an artist he launched hit 5 million streams and reached #1 on Spotify's Viral 500:48:04; described using CrowdSurf for investment funding1:06:35 and cited rising costs forcing him to raise merchandise prices, e.g. caps from $29 to $401:24:40.

Jesse Appell, Founder & Owner, Jesse's Tea House0:49:54: Testified he sells tea sourced from farmers in China and Taiwan, with over 80,000 orders shipped0:50:20; estimated losing roughly $250,000 in sales due to the recent trade war, including a subscription box stuck at port0:52:320:53:01; said losing TikTok would cost him 600,000 followers and hundreds of thousands in sales0:51:36; urged Congress to codify any TikTok deal into law rather than rely on executive action0:51:36.

Rep. Stauber (R-MN)1:05:20: Asked witnesses about barriers to accessing capital and legal risks in handling contracts without professional help1:05:491:06:56.

Rep. Skelton (Michigan district referenced)1:10:30: Focused questioning on generative AI, asking whether young creators are getting adequate education on AI tools and whether SBA could play a role1:11:301:14:03.

Rep. Alford (R-MO)1:15:30: Reflected on the generational shift from radio to social media and asked what Congress can do now to help the industry succeed1:18:33.

Rep. McIver (D-NJ)1:20:47: Asked how tariffs have affected content creators' ability to maintain product quality and pricing1:21:57.

Rep. LaLota (R-NY)1:25:37: Questioned Moran on the size of the creator economy ($250B in 2023, projected $500B by 2030)1:26:06 and Brennan on the damage from stolen/copied content1:27:53.

Rep. Conaway (R-NJ)1:31:04: Asked how "Big Tech" impacts creators and what defenses Congress could offer, prompting Appell's account of thousands of fake accounts impersonating him on Meta1:32:25.

Rep. Downing (R-MT)1:36:23: Asked about AI-related risks like deepfakes and account hacking, and which foreign actors are most associated with malicious bot activity1:37:381:38:52.

Rep. Goodlander (D-NH)1:41:36: Highlighted her Small Business Liberation Act to protect businesses from "lawless trade wars"1:42:32 and asked witnesses to identify top priorities for reining in Big Tech gatekeepers, prompting Moran's call for payment-term regulation and liability caps1:45:08.

Rep. Kim-Hines (Northern Mariana Islands)1:46:32: Credited social media influencers with her election win1:47:02 and asked about barriers to formalizing a creator business, including business classification and tax confusion1:48:18.

Rep. Olszewski (D-MD)1:51:42: Cited Maryland's Internet Crimes Against Children Task Force, which initiated 595 investigations, 41 arrests, and rescued 17 child victims1:53:03; asked how to protect children online while letting creators' businesses grow1:53:47.

Rep. Schmidt2:02:52: Asked what Congress should keep in mind so anti-crime tools online don't harm legitimate creator activity, citing FBI Director Patel's earlier testimony that day2:03:20; Appell shared how social media helped catch a thief who stole his father's side-by-side vehicle in Cecil County, Maryland2:05:18.

Rep. Petronas (R-FL)2:07:35: Asked witnesses about Section 230 liability protections2:07:35 and whether regulation should target only Apple/Google or all platforms including Meta and TikTok2:09:57.

Key moments

Velázquez noted the TikTok ban's latest deadline expired the day of the hearing but was extended by three months just the day before0:30:47, and later pressed Appell on whether he felt "whiplash" from the shifting policy — he said yes1:02:10.

Appell estimated approximately $250,000 in lost sales from the recent trade war, describing a subscription tea box stuck at port and being unable to receive any restock shipment between January and August0:52:320:53:01.

Brennan described a client surgeon whose content was stolen and dubbed into an ad for an untested supplement, generating direct messages from followers who purchased it believing his endorsement was real1:28:16.

Moran testified that creators using net-60/net-90 payment terms often wait 2–3 months to be paid, sometimes never receiving payment at all, and lack awareness they can pursue small-claims remedies0:39:46.

Appell disclosed thousands of fake Meta accounts impersonating him despite his own identity-verified account, and questioned why reported impersonators aren't removed immediately1:32:25.

Moran cited Denmark's law allowing people to copyright their own face to combat deepfakes and suggested the U.S. could look at similar protections1:38:27.

Under Chairman Williams' rapid poll, all four witnesses confirmed their content-creator businesses had hired other small businesses in the past year, naming an accountant, a talent roster, a tax firm (Decipher Financials), and an editing firm (Rare Flower Media)1:09:35.

Appell described the complexity of collecting state sales tax in all 50 states as a physical-goods seller, requiring a third-party service to manage dozens of separate registrations with varying thresholds and filing schedules1:50:26.

Luciano recounted receiving a message from a man who said Luciano's video stopped him from ending his life while sitting on his truck's tailgate0:46:21.

On Section 230, most witnesses said they were unfamiliar with the statute's specifics, though Brennan and Moran both favored limiting creator liability while holding platforms more accountable2:08:06.

Metadata

CommitteeHouse Small Business
Chamber / CongressHouse · 119th Congress
Date2025-09-17
TypeHearing
Witnesses
Ms. Christina Brennan — President, CelebExperts LLC
Mr. Nicholas Luciano — Founder & CEO, Tratter House
Mr. Jesse Appell — Founder & Owner, Jesse’s Tea House
Ms. Kayla Moran — Founder & Attorney, Kayla Moran Law
Videoyoutube
Transcript246 caption blocks · 19,705 words · 2:13:27 runtime
EventCongress.gov 118617