[House Report 111-695]
[From the U.S. Government Publishing Office]
111th Congress
2d Session HOUSE OF REPRESENTATIVES Report
111-695
_______________________________________________________________________
Union Calendar No. 418
REPORT ON THE ACTIVITY
of the
COMMITTEE ON SMALL BUSINESS
for the
ONE HUNDRED ELEVENTH CONGRESS
December 23, 2010.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
LETTER OF TRANSMITTAL
----------
House of Representatives,
Committee on Small Business,
Washington, DC, December 23, 2010.
Hon. Lorainne C. Miller,
Clerk, House of Representatives,
Washington, DC.
Dear Ms. Miller: Pursuant to clause 1(d) of rule XI of the
Rules of the House of Representatives for the 111th Congress, I
present herewith a report on the activity of the Committee on
Small Business for the 111th Congress, including the
Committee's review and study of legislation within its
jurisdiction, and the oversight activities undertaken by the
Committee.
Yours truly,
Nydia M. Velazquez,
Chairwoman.
C O N T E N T S
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Page
Letter of Transmittal............................................ III
Jurisdiction..................................................... 1
Rules of the Committee........................................... 2
Membership and Organization...................................... 11
Legislative and Oversight Activities............................. 15
Full Committee................................................... 51
Subcommittee on Finance and Tax.................................. 65
Subcommittee on Contracting and Technology....................... 67
Subcommittee on Regulations and Health Care...................... 69
Subcommittee on Rural Development, Entrepreneurship, and Trade... 71
Subcommittee on Investigations and Oversight..................... 73
Oversight Plan for the 111th Congress............................ 75
Implementation of the Oversight Plan for the 111th Congress...... 91
Hearings Held Pursuant to Clauses 2(n), (o), and (p) of House
Rule XI........................................................ 107
Appendix I--Committee Legislation: Committee Reports and Public
Laws........................................................... 109
Appendix II--Committee Publications: Committee Hearings.......... 113
Union Calendar No. 418
111th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 111-695
======================================================================
REPORT ON THE ACTIVITY OF THE COMMITTEE ON SMALL BUSINESS FOR THE ONE
HUNDRED ELEVENTH CONGRESS
_______
December 23, 2010.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Ms. Velazquez of New York, from the Committee on Small Business,
submitted the following
R E P O R T
Clause 1(d) of rule XI of the Rules of the House of
Representatives for the 111th Congress requires that each
standing committee, not later than January 2 of each odd-
numbered year, submit to the House a report on the activities
of that committee, including separate sections summarizing the
legislative and oversight activities of that committee during
that congress.
JURISDICTION AND SPECIAL OVERSIGHT FUNCTION
Clause 1(p) of rule X of the Rules of the House of
Representatives for the 111th Congress sets forth the
jurisdiction of the Committee on Small Business as follows--
(1) Assistance to and protection of small business,
including financial aid, regulatory flexibility, and paperwork
reduction.
(2) Participation of small business enterprises in Federal
procurement and Government contracts.
Clause 3(l) of rule X of the Rules of the House of
Representatives for the 111th Congress sets forth the Special
Oversight Function of the Committee on Small Business as
follows--
The Committee on Small Business shall study and investigate
on a continuing basis the problems of all types of small
business.
RULES OF THE COMMITTEE ON SMALL BUSINESS FOR THE ONE HUNDRED ELEVENTH
CONGRESS
1. GENERAL PROVISIONS
The Rules of the House of Representatives, and in
particular the committee rules enumerated in rule XI, are the
rules of the Committee on Small Business to the extent
applicable and by this reference are incorporated. Each
subcommittee of the Committee on Small Business (hereinafter
referred to as the ``committee'') is a part of the committee
and is subject to the authority and direction of the committee,
and to its rules to the extent applicable.
2. REFERRAL OF BILLS BY CHAIRWOMAN
Unless retained for consideration by the committee, all
legislation and other matters referred to the committee shall
be referred by the Chairwoman as she deems appropriate to the
subcommittee of appropriate jurisdiction within 14 days. Where
the subject matter of the referral involves the jurisdiction of
more than one subcommittee or does not fall within any
previously assigned jurisdictions, the Chairwoman shall refer
the matter, as she may deem advisable.
In referring any measure or matter to a subcommittee, the
Chairwoman may specify a date by which the subcommittee shall
report thereon to the subcommittee. The Chairwoman may also
discharge a subcommittee from consideration of any measure or
matter referred to a subcommittee.
3. DATE OF MEETING
The regular meeting date of the committee shall be the
second Thursday of every month when the House is in session. A
regular meeting of the committee may be dispensed with if, in
the judgment of the Chairwoman, there is no need for the
meeting. Additional meetings may be called by the Chairwoman as
she may deem necessary or at the request of a majority of the
members of the committee in accordance with clause 2(c) of rule
XI of the House.
At least 3 days notice of such an additional meeting shall
be given unless the Chairwoman determines that there is good
cause to call the meeting on less notice.
The determination of the business to be considered at each
meeting shall be made by the Chairwoman subject to clause 2(c)
of rule XI of the House.
A regularly scheduled meeting need not be held if there is
no business to be considered or, upon at least 3 days notice,
it may be set for a different date.
4. ANNOUNCEMENT OF HEARINGS
Unless the Chairwoman, with the concurrence of the Ranking
Minority Member, or the committee by majority vote, determines
that there is good cause to begin a hearing at an earlier date,
public announcement shall be made of the date, place and
subject matter of any hearing to be conducted by the committee
at least 7 calendar days before the commencement of that
hearing.
After announcement of a hearing, the committee shall make
available as soon as practicable to all Members of the
committee a tentative witness list and to the extent
practicable a memorandum explaining the subject matter of the
hearing (including relevant legislative reports and other
necessary material). In addition, the Chairwoman shall make
available as soon as practicable to the Members of the
committee any official reports from departments and agencies on
the subject matter as they are received.
5. MEETINGS AND HEARINGS OPEN TO THE PUBLIC
(A) Meetings
Each meeting of the committee or its subcommittees for the
transaction of business, including the markup of legislation,
shall be open to the public, including to radio, television and
still photography coverage, except as provided by clause 4 of
rule XI of the House, except when the committee or
subcommittee, in open session and with a majority present,
determines by record vote that all or part of the remainder of
the meeting on that day shall be closed to the public because
disclosure of matters to be considered would endanger national
security, would compromise sensitive law enforcement
information, or would tend to defame, degrade or incriminate
any person or otherwise would violate any law or rule of the
House; Provided, however, that no person other than members of
the committee, and such congressional staff and such executive
branch representatives as they may authorize, shall be present
in any business meeting or markup session which has been closed
to the public.
(B) Hearings
Each hearing conducted by the committee or its
subcommittees shall be open to the public, including radio,
television and still photography coverage, except when the
committee or subcommittee, in open session and with a majority
present, determines by record vote that all or part of the
remainder of the hearing on that day shall be closed to the
public because disclosure of testimony, evidence or other
matters to be considered would endanger the national security,
would compromise sensitive law enforcement information, or
would violate any law or rule of the House; Provided, however,
that the committee or subcommittee may by the same procedure
vote to close one subsequent day of hearings. Notwithstanding
the requirements of the preceding sentence, a majority of those
present, there being in attendance the requisite number
required under the rules of the committee to be present for the
purpose of taking testimony, (i) may vote to close the hearing
for the sole purpose of discussing whether testimony or
evidence to be received would endanger the national security,
would compromise sensitive law enforcement information, or
violate clause 2(k)(5) of rule XI of the House; or (ii) may
vote to close the hearing, as provided in clause 2(k)(5) of
rule XI of the House.
All members of the committee shall be able to participate
in any subcommittee hearing. No member of the House may be
excluded from non-participatory attendance at any hearing of
the committee or any subcommittee, unless the House of
Representatives shall by majority vote authorize the committee
or subcommittee, for purposes of a particular series of
hearings on a particular article of legislation or on a
particular subject of investigation, to close its hearing to
members by the same procedures designated for closing hearings
to the public. Additionally, such members who would like to not
only attend, but participate shall notify the Ranking Minority
Member and submit a request in writing to the Chairwoman two
days in advance of such hearing. Such requests shall be subject
to approval of the Chairwoman and the Ranking Member.
6. WITNESSES
(A) Statement of witnesses
Each witness who is to appear before the committee or
subcommittee shall file with the committee at least two
business days before the day of his or her appearance 75 copies
of his or her written statement of proposed testimony. Each
witness shall also submit to the committee a copy of his or her
final prepared statement in an electronic format at that time.
At least one copy of the statement of each witness shall be
furnished directly to the Ranking Minority Member. In addition,
all witnesses shall be required to submit with their testimony
a curriculum vitae or other statement describing their
education, employment, professional affiliations and other
background information pertinent to their testimony unless
waived by the Chairwoman. Each witness will complete a
disclosure form detailing any contracts or business that they
currently have with the federal government.
The committee will provide public access to its printed
materials, including the proposed testimony of witnesses, in
electronic form.
(B) Interrogation of witnesses
Whenever any hearing is conducted by the committee or any
subcommittee upon any measure or matter, the minority party
members on the committee shall be entitled, upon request to the
Chairwoman by a majority of those minority members, to call a
witness or witnesses selected by the minority to testify with
respect to that measure or matter. The minority shall be
entitled to a ratio of one-third of the witnesses testifying.
For the purposes of determining this ratio, it shall not
include testifying government officials. The witnesses
requested by the minority shall be invited to testify by the
Chairwoman and must furnish at least one copy of his or her
statement and any supplementary materials directly to the
Chairwoman within two business days before the day of his or
her appearance unless waived by the Chairwoman.
Except when the committee adopts a motion pursuant to
subdivisions (B) and (C) of clause 2(j)(2) of rule XI of the
rules of the House, committee members may question witnesses
only when they have been recognized by the Chairwoman for that
purpose, and only for a 5-minute period until all members
present have had an opportunity to question a witness. The
Chairwoman and the Ranking Member shall not be subject to the
5-minute period limitation. For all other Committee Members,
the 5-minute period for questioning a witness by any one member
can be extended only with the unanimous consent of all members
present. The Chairwoman, followed by the Ranking Minority
Member and all other members alternating between the majority
and minority, shall initiate the questioning of witnesses in
both the full and subcommittee hearings. The order for
questioning by members of each party shall be determined by the
time in which the member arrived at the hearing after the gavel
has been struck, with the first arriving having priority over
members of his or her party. If members arrive at the same
time, then seniority on the committee shall dictate the order.
In recognizing members to question witnesses, the
Chairwoman may take into consideration the ratio of majority
and minority members present in such a manner as not to
disadvantage the Members of either party. The Chairwoman, in
consultation with the Ranking Minority Member, may decrease the
5-minute time period in order to accommodate the needs of all
the Members present and the schedule of the witnesses.
7. SUBPOENAS
A subpoena may be authorized and issued by the committee in
the conduct of any investigation or series of investigations or
activities to require the attendance and testimony of such
witness and the production of such books, records,
correspondence, memoranda, papers and documents, as deemed
necessary. Such a subpoena shall be authorized by a majority
vote of the full committee. The requirement that the
authorization of a subpoena require a majority vote may be
waived by the Ranking Minority Member. The Chairwoman may issue
a subpoena, in consultation with the Ranking Minority Member,
when the House is out of session for a period of 3 days or
longer.
8. QUORUM
No measure or recommendation shall be reported unless a
majority of the committee was actually present. For purposes of
taking testimony or receiving evidence, there shall be one
member from the majority and one member from the minority for
the purposes of a quorum. Such requirement may be waived for
field hearings by the Chairwoman. For all other purposes, one-
third of the members (or 11 Members) shall constitute a quorum.
9. AMENDMENTS DURING MARK-UP
Any amendment offered to any pending legislation before the
committee or subcommittee must be made available in written
form when requested by any member of the committee. If such
amendment is not available in written form when requested, the
Chair shall allow an appropriate period for the provision
thereof.
10. POSTPONEMENT OF PROCEEDINGS
The Chairwoman in consultation with the Ranking Minority
Member may postpone further proceedings when a record vote is
ordered on the question of approving any measure or matter or
adopting an amendment. The Chairwoman may resume proceedings
postponed at any time, but no later than the next meeting day.
In exercising postponement authority, the Chairwoman shall take
all reasonable steps necessary to notify members on the
resumption of proceedings on any postponed recorded vote. When
proceedings resume on a postponed question, notwithstanding any
intervening order for the previous question, an underlying
proposition shall remain subject to further debate or amendment
to the same extent as when the question was postponed.
11. NUMBER AND JURISDICTION OF SUBCOMMITTEES
There will be five subcommittees as follows:
Subcommittee on Finance and Tax
The Small Business Administration (SBA) Lending and
Investment programs: Section 7(a) loan program, 504 Certified
Development Company program, Small Business Investment Company
program, Disaster Loan Assistance programs, and Microloan
program.
Access to capital and finance issues generally.
Oversight over tax policy and retirement/pension matters
affecting small businesses.
Subcommittee on Contracting and Technology
SBA Contracting programs including the following: Section
8(a) Business Development program, Small Disadvantaged Business
(SDB) certification operated by SBA, Women's Procurement
Program, HUBZone program, Surety Bond program, Service-disabled
veteran procurement, and Section 7(j) management and technical
assistance program.
SBA Technology programs: Small Business Innovation Research
(SBIR) program, Small Business Technology Transfer program.
Oversight of government-wide procurement practices and
programs affecting small businesses.
Oversight of technology and patent issues.
Subcommittee on Regulations and Healthcare
The Regulatory Flexibility Act, the Small Business
Regulatory Enforcement Fairness Act, and the Paperwork
Reduction Act.
SBA's Office of Advocacy, National Ombudsman, and SBA small
business size standards.
Oversight of regulations and regulatory issues that affect
small businesses.
Oversight of healthcare coverage issues.
Oversight over issues affecting small healthcare providers.
Subcommittee on Rural Development, Entrepreneurship and Trade
SBA entrepreneurial development programs: Women's Business
Centers, National Veterans Business Development Corporation,
Small Business Development Centers, SCORE, Drug Free Workplace
program, Office of Women's Business Ownership, and National
Women's Business Council (NWBC).
New Markets Venture Capital (NMVC) program, New Markets Tax
Credit program, BusinessLINC and the Program for Re-Investment
in Micro entrepreneurs.
General oversight of programs targeted toward rural
development and economic growth as well as general federal
government entrepreneurial development programs.
Oversight of agricultural issues.
Oversight of energy issues.
Oversight of trade issues, including SBA's Office of
International Trade.
Subcommittee on Investigations and Oversight
Oversight of SBA Administration, Management, and Agency
Practices.
Oversight of activities by the Office of the Inspector
General at SBA.
Oversight over general issues impacting small businesses.
12. COMMITTEE STAFF
(A) Majority staff
The employees of the committee, except those assigned to
the minority as provided below, shall be appointed and
assigned, and may be removed by the Chairwoman. The Chairwoman
shall fix their remuneration, and they shall be under the
general supervision and direction of the Chairwoman.
(B) Minority staff
The employees of the committee assigned to the minority
shall be appointed and assigned, and their remuneration
determined, as the Ranking Minority Member of the committee
shall determine.
(C) Subcommittee staff
The Chairwoman and Ranking Minority Member of the full
committee shall endeavor to ensure that sufficient committee
staff is made available to each subcommittee to carry out its
responsibilities under the rules of the committee.
13. POWERS AND DUTIES OF SUBCOMMITTEES
Each subcommittee is authorized to meet, hold hearings,
receive evidence, and report to the full committee on all
matters referred to it. Subcommittee chairmen shall hold such
meetings and hearings after approval of the Chairwoman of the
full committee. Meetings and hearings of subcommittees shall
not be scheduled to occur simultaneously with meetings or
hearings of the full committee.
14. RECORDS
The committee shall keep a complete record of all actions,
which shall include a record of the votes on any question on
which a record vote is demanded. The result of each
subcommittee record vote, together with a description of the
matter voted upon, shall promptly be made available to the full
committee. A record of such votes shall be made available for
inspection by the public at reasonable times in the offices of
the committee.
The committee shall keep a complete record of all committee
and subcommittee activity which, in the case of any meeting or
hearing transcript, shall include a substantially verbatim
account of remarks actually made during the proceedings,
subject only to technical, grammatical, and typographical
corrections authorized by the person making the remarks
involved.
The records of the committee at the National Archives and
Records Administration shall be made available in accordance
with rule VII of the Rules of the House. The Chairwoman of the
full committee shall notify the Ranking Minority Member of the
full committee of any decision, pursuant to clause 3(b)(3) or
clause 4(b) of rule VII of the House, to withhold a record
otherwise available, and the matter shall be presented to the
committee for a determination of the written request of any
member of the committee.
15. ACCESS TO CLASSIFIED OR SENSITIVE INFORMATION
Access to classified or sensitive information supplied to
the committee and attendance at closed sessions of the
committee or its subcommittees shall be limited to members and
necessary committee staff and stenographic reporters who have
appropriate security clearance when the Chairwoman determines
that such access or attendance is essential to the functioning
of the committee.
The procedures to be followed in granting access to those
hearings, records, data, charts, and files of the committee
which involve classified information or information deemed to
be sensitive shall be as follows:
(A) Only Members of the House of Representatives and
specifically designated committee staff of the Committee on
Small Business may have access to such information.
(B) Members who desire to read materials that are in the
possession of the committee should notify the clerk of the
committee.
(C) The clerk will maintain an accurate access log, which
identifies the circumstances surrounding access to the
information, without revealing the material examined.
(D) If the material desired to be reviewed is material
which the committee or subcommittee deems to be sensitive
enough to require special handling, before receiving access to
such information, individuals will be required to sign an
access information sheet acknowledging such access and that the
individual has read and understands the procedures under which
access is being granted.
(E) Material provided for review under this rule shall not
be removed from a specified room within the committee offices.
(F) Individuals reviewing materials under this rule shall
make certain that the materials are returned to the proper
custodian.
(G) No reproductions or recordings may be made of any
portion of such materials.
(H) The contents of such information shall not be divulged
to any person in any way, form, shape, or manner, and shall not
be discussed with any person who has not received the
information in an authorized manner.
(I) When not being examined in the manner described herein,
such information will be kept in secure safes or locked file
cabinets in the committee offices.
(J) These procedures only address access to information the
committee or a subcommittee deems to be sensitive enough to
require special treatment.
(K) If a member of the House of Representatives believes
that certain sensitive information should not be restricted as
to dissemination or use, the member may petition the committee
or subcommittee to so rule. With respect to information and
materials provided to the committee by the executive branch,
the classification of information and materials as determined
by the executive branch shall prevail unless affirmatively
changed by the committee or the subcommittee involved, after
consultation with the appropriate executive agencies.
(L) Other materials in the possession of the committee are
to be handled in accordance with the normal practices and
traditions of the committee.
16. OTHER PROCEDURES
The Chairwoman of the full committee may establish such
other procedures and take such actions as may be necessary to
carry out the foregoing rules or to facilitate the effective
operation of the committee.
17. AMENDMENTS TO COMMITTEE RULES
The rules of the committee may be modified, amended or
repealed by a majority of the members, at a meeting
specifically called for such purpose, but only if written
notice of the proposed change has been provided to each such
member at least 3 days before the time of the meeting.
18. BUDGET AND TRAVEL
(A) From the amount provided to the Committee in the
primary expense resolution adopted by the U.S. House of
Representatives for the 111th Congress, the Chairwoman, after
consultation with the Ranking Minority Member, shall designate
one-third of the budget under the direction of the Ranking
Minority Member for the purposes of minority staff, travel
expenses of minority staff and members, and minority office
expenses.
(B) The Chairwoman may authorize travel in connection with
activities or subject matters under the general jurisdiction of
the Committee.
(C) The Ranking Minority Member may authorize travel for
any minority member or minority committee staff member in
connection with activities or subject matters under the general
jurisdiction of the Committee. Before such travel, there shall
be submitted to the Chairwoman in writing the following at
least seven calendar days prior:
a) The purpose of the travel.
b) The dates during which the travel is to occur.
c) The names of the States or countries to be visited and
the length of time spent in each.
d) The names of members and staff of the committee
participating in such travel.
At the conclusion of such travel, a summary of the activity
and its accomplishments shall be provided to the Chairwoman
within ten calendar days.
19. COMMITTEE WEBSITE
The Chairwoman shall maintain an official Committee website
for the purpose of furthering the Committee's legislative and
oversight responsibilities, including communicating information
about the Committee's activities to Committee members and other
Members of the House. The Ranking Minority Members may maintain
a similar website for the same purpose, including communicating
information about the activities of the minority to Committee
members and other Members of the House.
20. VICE CHAIR
Pursuant to House Rules, the Chairwoman shall designate a
member of the majority party to serve as Vice Chairman of the
Committee. The Vice Chairman shall preside at any meeting or
hearing during the temporary absence of the Chairwoman. The
Chair also reserves the right to designate a committee member
of the majority to serve as the Chair at a hearing or meeting.
MEMBERSHIP AND ORGANIZATION OF THE COMMITTEE ON SMALL BUSINESS
ONE HUNDRED ELEVENTH CONGRESS
COMMITTEE ON SMALL BUSINESS
FULL COMMITTEE LIST
Rep. SAM GRAVES, Missouri Rep. NYDIA M. VELAZQUEZ, New York
Ranking Member Chairwoman
Rep. ROSCOE G. BARTLETT, Maryland Rep. DENNIS MOORE, Kansas
Rep. W. TODD AKIN, Missouri Rep. HEATH SHULER, North Carolina
Rep. STEVE KING, Iowa Rep. KATHY DAHLKEMPER,
Rep. LYNN A. WESTMORELAND, Georgia Pennsylvania
Rep. LOUIE GOHMERT, Texas Rep. KURT SCHRADER, Oregon
Rep. MARY FALLIN, Oklahoma Rep. ANN KIRKPATRICK, Arizona
Rep. VERN BUCHANAN, Florida Rep. GLENN NYE, Virginia
Rep. BLAINE LUETKEMEYER, Missouri Rep. MARK CRITZ, Pennsylvania\1\
Rep. AARON SCHOCK, Illinois Rep. MICHAEL MICHAUD, Maine
Rep. GLENN THOMPSON, Pennsylvania Rep. MELISSA BEAN, Illinois
Rep. MIKE COFFMAN, Colorado Rep. DAN LIPINSKI, Illinois
Rep. JASON ALTMIRE, Pennsylvania
Rep. YVETTE CLARKE, New York
Rep. BRAD ELLSWORTH, Indiana
Rep. JOE SESTAK, Pennsylvania
Rep. BOBBY BRIGHT, Alabama
Rep. PARKER GRIFFITH, Alabama\2\
Rep. DEBORAH HALVORSON, Illinois
----------
\1\Joined the Committee on May 25, 2010.
\2\Left the Committee on December 23, 2009.
SUBCOMMITTEE LIST
Subcommittee on Finance and Tax
Rep. VERN BUCHANAN, Rep. KURT SCHRADER, Chair
Ranking Member Rep. DENNIS MOORE
Rep. STEVE KING Rep. ANN KIRKPATRICK
Rep. TODD AKIN Rep. MELISSA BEAN
Rep. BLAINE LUETKEMEYER Rep. JOE SESTAK
Rep. MIKE COFFMAN Rep. DEBORAH HALVORSON
Rep. GLENN NYE
Rep. MICHAEL MICHAUD
------
Subcommittee on Contracting and Technology
Rep. AARON SCHOCK, Rep. GLENN NYE, Chair
Ranking Member Rep. YVETTE CLARKE
Rep. ROSCOE BARTLETT Rep. BRAD ELLSWORTH
Rep. TODD AKIN Rep. KURT SCHRADER
Rep. MARY FALLIN Rep. DEBORAH HALVORSON
Rep. GLENN THOMPSON Rep. MELISSA BEAN
Rep. JOE SESTAK
Rep. MARK CRITZ\3\
----------
\3\Rep. Mark Critz joined the Committee on May 25, 2010.
------
Subcommittee on Regulations and Healthcare
Rep. LYNN WESTMORELAND, Rep. KATHY DAHLKEMPER, Chair
Ranking Member Rep. DAN LIPINSKI
Rep. STEVE KING Rep. MELISSA BEAN
Rep. VERN BUCHANAN Rep. JASON ALTMIRE
Rep. GLENN THOMPSON Rep. JOE SESTAK
Rep. MIKE COFFMAN Rep. BOBBY BRIGHT
Rep. MARK CRITZ\4\
----------
\4\Rep. Mark Critz joined the Committee on May 25, 2010.
------
Subcommittee on Rural Development, Entrepreneurship and Trade
Rep. BLAINE LUETKEMEYER, Rep. HEATH SHULER, Chair
Ranking Member Rep. MICHAEL MICHAUD
Rep. STEVE KING Rep. BOBBY BRIGHT
Rep. AARON SCHOCK Rep. KATHY DAHLKEMPER
Rep. GLENN THOMPSON Rep. ANN KIRKPATRICK
Rep. YVETTE CLARKE
------
Subcommittee on Investigations and Oversight
Rep. MARY FALLIN, Rep. JASON ALTMIRE, Chair
Ranking Member Rep. HEATH SHULER
Rep. LOUIE GOHMERT Rep. BRAD ELLSWORTH
VACANCY\5\
----------
\5\Vacancy due to Rep. Parker Griffith departure from the Committee on
December 23, 2009.
COMMITTEE STAFF
Majority Staff
Michael Day, Staff Director
Adam Minehardt, Deputy Staff
Director
Tim Slattery, Chief Counsel
Russell Orban, General Counsel
Moraima Garcia, Office Manager
Darienne Gutierrez, Clerk
Tom Dawson, Health Care Counsel
Sarah Gallo, Agriculture Counsel
David Grossman, Technology Counsel
Andy Jiminez, Banking Counsel
Erik Lieberman, Regulatory Counsel
Chris Lyons, Oversight Counsel
Naveen Parmar, Tax Counsel
Nicole Witenstein, Trade Counsel
Melissa Johnson, Professional
Staff
Eminence Northcutt, Professional
Staff
Justin Pelletier, Professional
Staff
Alex Haurek, Communications
Director
Zamir Ahmed, Deputy Press
Secretary
Duncan Neasham, Deputy Press
Secretary
Xinia Bermudez, Staff Assistant
Minority Staff
Karen Haas, Staff Director
Janet Oliver, Deputy Staff
Director
Paul Sass, Deputy Chief of Staff
Barry Pineles, Chief Counsel
Lisa Christian, Professional Staff
Joe Hartz, Professional Staff
Member
Brooke Shupe, Professional Staff
Mark Ratto, Professional Staff
Member
Caroline Rabbit, Staff Assistant
Alexandra Sollberger,
Communications Director
Kelly Hoffman, Press Assistant
LEGISLATIVE AND OVERSIGHT ACTIVITIES
During the 111th Congress, 100 bills were referred to the
Committee on Small Business. The full Committee reported to the
House or was discharged from the further consideration of 22
measures, not including conference reports. 12 measures
regarding matters within the Committee's jurisdiction were
enacted into law.
The following is a summary of the legislative and oversight
activities of the Committee on Small Business during the 111th
Congress, including a summary of the activities taken by the
Committee to implement its Oversight Plan submitted under
clause 2(d) of House rule X. In addition, this report includes
a summary of hearings held pursuant to clauses 2(n), (O), and
(P) under House rule XI.
Full Committee
Legislative Activities
AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009
(H.R. 1)
Summary
H.R. 1 amended the Small Business Act to suspend, until
September 30, 2010, fees under the 7(a) program and the 504
program. The legislation also authorized the SBA to guarantee
up to 90 percent of a 7(a) loan and directed the SBA
Administrator to establish a Secondary Market Guarantee
Authority and a process in which private lenders may apply for
a federal guarantee on pools of first lien position 504 loans
that are to be sold to third-party investors. The legislation
authorized the Administrator to guarantee up to $3 billion of
such pools and requires monthly reports from the Administrator
to Congress on the guarantee authority.
The legislation permitted the refinancing of existing
indebtedness under the 504/CDC program, in an amount not to
exceed 50 percent of the projected cost of the project
financed, under certain conditions. It also provided that a
504/CDC project meets SBA policy objectives if it creates or
retains one job for every $65,000 guaranteed by the SBA.
With regard to the Small Business Investment Company
program, H.R. 1 revised and increased the maximum amount of
outstanding leverage made available to a licensed investment
company and revised aggregate investment limits under such
program.
H.R. directed the Administrator to carry out a temporary
program to provide loans on a deferred basis to viable small
businesses that have a non-SBA-guaranteed small business loan
and that were experiencing immediate financial hardship. Each
such loan was limited to $35,000 and SBA was prohibited from
charging a fee for such loans.
The legislation also increased the maximum surety bond
guarantee amount and temporarily authorized the Administrator
to guarantee a surety for a total work order or contract amount
that does not exceed $10 million, if a federal agency
contracting officer certifies that such a guarantee is
necessary.
H.R. 1 authorized the SBA to establish a temporary
Secondary Market Lending Authority to make loans to the
systematically important secondary market broker-dealers who
operate the SBA secondary market.
Legislative history
H.R. 1 was introduced by Rep. Obey on January 26, 2009. The
bill was referred to the Committee on Appropriations and the
Committee on the Budget.
On January 28, 2009, the legislation passed the House by a
vote of 244 to 188. The Senate passed H.R. 1, as amended, on
January 20, 2009 by a vote of 61 to 37. Conference negotiations
began shortly thereafter and the conference report passed the
House on February 13, 2009 by a vote of 246 to 183, with 1
voting present. On the same day, the Senate passed the
conference report by a vote of 60 to 38.
On February 17, 2009, the legislation was signed by the
President and became Public Law 111-5.
CONGRATULATING THE MINORITY BUSINESS DEVELOPMENT AGENCY ON ITS 40TH
ANNIVERSARY AND COMMENDING ITS ACHIEVEMENTS IN FOSTERING THE
ESTABLISHMENT AND GROWTH OF MINORITY BUSINESSES IN THE UNITED STATES
(H. RES. 215)
Summary
H. Res. 215 congratulates the Minority Business Development
Agency on its 40th anniversary, commends its achievement in
fostering the establishment and growth of minority businesses,
and encourages it to continue its efforts to assist minority
businesses as such enterprises continue to strengthen
communities, create jobs, and contribute to the health of the
economy in the United States.
Legislative history
H. Res. 215 was introduced by Representative Michael Honda
on March 5, 2009. Original Cosponsors included the Committee
Chairwoman Nydia Velazquez, Representative Barbara Lee, and
Representative Dale Kildee. The bill was referred to the
Committee on Financial Services and the Committee on Small
Business.
On September 15, 2009, the House considered H.Res. 215
under suspension of the rules and it passed by voice vote.
CONGRATULATING THE ON-PREMISE SIGN INDUSTRY FOR ITS CONTRIBUTIONS TO
THE SUCCESS OF SMALL BUSINESSES
(H. RES. 298)
Summary
H. Res. 298 applauds the United States Small Business
Administration for educating small business owners on the
benefits of using well-placed, well-designed on-premise signs
to overcome competitive disadvantages in the areas of marketing
and advertising, and encourages the on-premise sign industry to
continue its efforts to produce a new and greater understanding
of how to develop safer, more effective, and more affordable
signage products so as to alleviate small businesses'
competitive disadvantages in marketing and advertising.
Legislative history
H. Res. 298 was introduced by Representative Steven King on
March 30, 2009. Original Cosponsors included Representative Dan
Boren and Representative Stephanie Herseth Sandlin. The bill
was referred to the Committee on Small Business.
On April 1, 2009, the House considered H. Res. 298 under
suspension of the rules and it passed by voice vote.
VETERANS BUSINESS CENTER ACT OF 2009
(H.R. 1803)
Summary
H.R. 1803 amends key sections of the Small Business Act to
meet the emerging needs of the growing veteran population by
ensuring the sector has affordable, timely and comprehensive
access to resources to start or grow small businesses. The bill
targets resources and expertise at the agency to the needs of
veterans, including those requiring customized assistance such
as reservists, service-disabled veterans, and women.
The legislation enhances assistance to veteran
entrepreneurs in three main areas: outreach, business
counseling, and targeted resources to address specific issues.
To provide veterans returning from deployment with access to
entrepreneurial development resources in their local
communities, the legislation provides for the establishment of
additional outreach centers through a newly-created Veterans
Business Center program at the agency. The bill also provides
new resources for the development of specialized assistance to
veteran-owned firms, specifically aid in accessing capital,
procurement assistance, and for service-disabled veterans.
Finally, the legislation updates the structure of
entrepreneurial development assistance to the sector at the
agency by establishing a Director of the new Veterans Business
Center Program and formalizing the role of the National
Veterans Task Force.
Legislative history
H.R. 1803 was introduced by Rep. Glenn Nye on March 31,
2009. The bill was referred to the Committee on Small Business.
The Small Business Committee, Subcommittee on Rural and
Urban Entrepreneurship held a hearing on April 2, 2009 to
evaluate the legislation. The Committee received testimony from
the small business community, including a veteran's small
business association representative who also serves as the
Chairman of SBA's Advisory Committee on Veterans Business
Affairs. He testified on the merits of the legislation and the
need for an expansion of services to this sector through the
legislation.
The Committee on Small Business, Subcommittee on Rural and
Urban Entrepreneurship met in open session on April 30, 2009,
and ordered H.R. 1803 reported to the Committee on Small
Business by a voice vote.
On July 28, 2009, the House considered H.R. 1803 and passed
the bill by a voice vote. On July 29, 2009, the bill was
received in the Senate, read twice, and referred to the
Committee on Small Business and Entrepreneurship.
No further action was taken on this legislation in the
111th Congress.
EDUCATING ENTREPRENEURS THROUGH TODAY'S TECHNOLOGY ACT
(H.R. 1807)
Summary
H.R. 1807 establishes distance training and education to
potential as well as existing entrepreneurs through the use of
high-speed communication technology. The legislation targets
resources toward expanding access to affordable entrepreneurial
development resources for firms across geographical borders.
To increase access to business development services, the
bill promotes the development and dissemination of virtual
information through an interactive process and customized to
the needs of specific businesses. To do this, the legislation
provides for the establishment of contracts with service
providers to develop entrepreneurial training content to be
virtually conveyed to facilities across the country, including
to SBA Small Business Development Centers, Women's Business
Centers, Veterans Business Outreach Centers, and district
offices as well as home based businesses. The information to be
distributed through the legislation is required to remain
flexible and adaptive to entrepreneurs' changing needs.
Legislative history
H.R. 1807 was introduced by Rep. Glenn Thompson on March
31, 2009. The bill was referred to the Committee on Small
Business.
The Small Business Committee, Subcommittee on Rural and
Urban Entrepreneurship held a hearing on April 2, 2009 to
evaluate the legislation. The Committee received testimony from
small business representatives, including an administrator of a
community education center who discussed the benefits of the
additional resources to be established in the legislation,
particularly on rural regions.
The Committee on Small Business, Subcommittee on Rural and
Urban Entrepreneurship met in open session on April 30, 2009,
and ordered H.R. 1807 reported to the Committee on Small
Business by a voice vote.
On July 28, 2009, the House considered H.R. 1807 and passed
the bill by a voice vote. On July 29, 2009, the bill was
received in the Senate, read twice, and referred to the
Committee on Small Business and Entrepreneurship.
No further action was taken on this legislation in the
111th Congress.
NATIVE AMERICAN BUSINESS DEVELOPMENT ENHANCEMENT ACT OF 2009
(H.R. 1834)
Summary
H.R. 1834 ensures entrepreneurial development services are
customized to Native American small business owners' needs by
amending the Small Business Act to establish the Office of
Native American Affairs at the Small Business Administration
(SBA). It also establishes grants for business development
outreach facilities in regions with high concentrations of
Native American enterprises.
To ensure business assistance services at the agency are
customized to this sector, the legislation formalizes the
Office of Native American Affairs and tasks it with the
responsibility to develop and implement tools to increase
entrepreneurship. The legislation also expands access to
business development services through the establishment of a
Tribal Business Information Center program, which provides
grants to conduct business workshops, business counseling,
entrepreneurial development training, access to computer
technology and other resources. The bill also establishes
grants for eligible SBA Small Business Development Centers to
provide customized services and work with tribal organizations
in the development of the program.
Legislative history
H.R. 1834 was introduced by Rep. Ann Kirkpatrick on April
1, 2009. The bill was referred to the Committee on Small
Business.
The Small Business Committee, Subcommittee on Rural and
Urban Entrepreneurship held a hearing on April 2, 2009 to
evaluate the legislation. The Committee received testimony from
small business representatives, including the Chairwoman of the
National Center for American Indian Enterprise Development who
discussed the merits of additional policy resources and
outreach facilities targeted to promoting Native American
entrepreneurship.
The Committee on Small Business, Subcommittee on Rural and
Urban Entrepreneurship met in open session on April 30, 2009,
and ordered H.R. 1834 reported to the Committee on Small
Business by a voice vote.
On November 19, 2009, the House considered H.R. 1834 and
passed the bill by a record vote of 343 ayes and 55 nays. On
November 20, 2009, the bill was received in the Senate, read
twice, and referred to the Committee on Small Business and
Entrepreneurship.
No further action was taken on this legislation in the
111th Congress.
WOMEN'S BUSINESS CENTER ACT
(H.R. 1838)
Summary
The Women's Business Centers Act improves and expands
business development resources for women entrepreneurs by
increasing counseling and training facilities, particularly
targeting underserved areas; enhancing the operating procedures
of the Women's Business Center (WBC) program at the U.S. Small
Business Administration (SBA); and mandating a more targeted
approach to the National Women's Business Council's research
program.
The bill expands the network of assistance facilities and
coordinates public-private policy efforts dedicated to this
sector. The bill alters the WBC funding formula to establish
more equity between permanent centers and new ones to be
located in currently underserved areas, particularly rural and
inner city areas. To promote services that generate economic
growth for entrepreneurs and their communities, the bill
establishes new program performance measurements promoting
tangible outcomes for clients, such as job creation and
industry productivity. To increase the efficiency and
transparency of the WBC program's administration, the
legislation also establishes new procedural requirements, such
as resolving time delays and information lapses. Finally, to
ensure that the National Women's Business Council, which is a
bi-partisan federal advisory council, updates its plans in
accordance with changing needs and the composition of the
current entrepreneurial sector, the legislation mandates that
the organization conduct specific research on priority issues.
Legislative history
H.R. 1838 was introduced by Rep. Mary Fallin on April 1,
2009. Rep. Yvette Clarke and Rep. McMorris Rodgers were
original cosponsors. The bill was referred to the Committee on
Small Business.
The Small Business Committee, Subcommittee on Rural and
Urban Entrepreneurship held a hearing on April 2, 2009 to
evaluate the legislation to expand entrepreneurial development
resources, including for women business owners. The Committee
received testimony from small business representatives,
including the Coordinator for the Women's Business Center at
the Rural Enterprises of Oklahoma who testified on the bill's
merits, including the provision of increased resources and
policy updates to the entrepreneurial development services
available for this sector.
The Committee on Small Business, Subcommittee on Rural and
Urban Entrepreneurship met in open session on April 30, 2009,
and ordered H.R. 1838 reported to the Committee on Small
Business by a voice vote.
On November 7, 2009, the House considered H.R. 1838 and
passed the bill by a recorded vote of 428 ayes and 4 nays. On
November 9, 2009, the bill was received in the Senate, read
twice, and referred to the Committee on Small Business and
Entrepreneurship.
No further action was taken on this legislation in the
111th Congress.
SCORE ACT
(H.R. 1839)
Summary
The SCORE Act updates SBA's SCORE program to ensure
services provided through the network of business mentoring
chapters across the country are relevant to the needs of
current entrepreneurs. Given the growth of entrepreneurs from
socially-economically disadvantaged backgrounds, the
legislation is designed to ensure expanded representation of
emerging needs in these services.
The legislation increases the effectiveness of the SCORE
program by establishing new performance and benchmark
requirements for the agency's business mentoring resources. The
legislation establishes benchmarks regarding service delivery,
such as the success of assisted entrepreneurs, as well as
standards for the expertise levels of volunteers to ensure
effective counseling. H.R. 1839 also requires SCORE counselors
to reflect the demographics of today's business community.
Specifically, program administrators are required to recruit
and maintain a higher representation of volunteers from a
diverse set of backgrounds, helping ensure that mentors provide
appropriate advice to clients.
Legislative history
H.R. 1839 was introduced by Rep. Vern Buchanan (R-FL-13) on
April 1, 2009. The bill was referred to the Committee on Small
Business.
The Small Business Committee, Subcommittee on Rural and
Urban Entrepreneurship held a hearing on April 2, 2009 to
evaluate the legislation to improve entrepreneurial development
resources, including through the agency's business mentoring
program. The Committee received testimony from small business
representatives, including the SCORE Administrator from
Manasota, Florida who testified on the benefits of the
legislation.
The Committee on Small Business, Subcommittee on Rural and
Urban Entrepreneurship met in open session on April 30, 2009,
and ordered H.R. 1839 reported to the Committee on Small
Business by a voice vote.
On November 18, 2009, the House considered H.R. 1839 and
passed the bill by a voice vote. On November 19, 2009, the bill
was received in the Senate, read twice, and referred to the
Committee on Small Business and Entrepreneurship.
No further action was taken on this legislation in the
111th Congress.
EXPANDING ENTREPRENEURSHIP ACT OF 2009
(H.R. 1842)
Summary
H.R. 1842 facilitates businesses' access to tools that
provide assistance addressing the challenges of the current
economy by requiring the Small Business Administration (SBA) to
utilize the entrepreneurial development programs more
effectively to support job creation and economic growth. The
legislation updates the organization and management of the
entrepreneurial development resources at the SBA by increasing
coordination among agency programs; requiring strategic
planning by the agency, focusing on the use of these resources
for job creation; and modernizing the agency's information
technology and web portal related to these programs.
The legislation promotes increased planning to strengthen
entrepreneurial development services at the agency. It also
requires outreach facilities to meet performance measures
established to help in the creation or maintenance of jobs. To
increase coordination of service delivery, the agency is
required to ensure there is collaboration among the
headquarters as well as state and local economic development
agencies. Further, the bill requires the designation of
Community Specialists in each SBA District Office. Finally, the
legislation requires expanded access to agency services by
restructuring informational entrepreneurial development
resources.
Legislative history
H.R. 1842 was introduced by Rep. Luetkemeyer on April 1,
2009. The bill was referred to the Committee on Small Business.
The Small Business Committee, Subcommittee on Rural and
Urban Entrepreneurship held a hearing on April 2, 2009 to
evaluate the legislation to improve institutional structure and
program implementation of the agency's ED services. The
Committee received testimony from business assistance program
administrators and small business representatives regarding the
merits of the legislation to promote economic growth objectives
through the ED resources and to better coordinate the ED
network's efforts to deliver services more efficiently.
The Committee on Small Business, Subcommittee on Rural and
Urban Entrepreneurship met in open session on April 30, 2009,
and ordered H.R. 1842 reported to the Committee on Small
Business by a voice vote.
On November 18, 2009, the House considered H.R. 1842 and
passed the bill by a voice vote. On November 19, 2009, the bill
was received in the Senate, read twice, and referred to the
Committee on Small Business and Entrepreneurship.
No further action was taken on this legislation in the
111th Congress.
SMALL BUSINESS DEVELOPMENT CENTERS MODERNIZATION ACT OF 2009
(H.R. 1845)
Summary
The Small Business Development Centers Modernization Act of
2009 updates the Small Business Development Center program
(SBDC) at the Small Business Administration to provide it with
the resources to address current issues impacting the
entrepreneurial sector. The legislation updates services
provided by SBDCs through expanding the types of assistance
available and improving the program structure.
The legislation updates operational procedures to improve
the delivery of services through the centers and authorizes the
development of specialized assistance programs at SBDCs aimed
at assisting businesses secure federal stimulus contracts and
affordable financing. To maintain high levels of service
through SBDCs, operational procedures are restructured to
ensure that the program is administered efficiently. The
legislation targets additional resources to eligible centers to
establish new initiatives, including programs to help
entrepreneurs access credit and capital, enter or expand in the
procurement arena, become green enterprises or achieve
financial stability.
Legislative history
H.R. 1845 was introduced by Rep. Schock on April 1, 2009.
The bill was referred to the Committee on Small Business.
The Small Business Committee, Subcommittee on Rural and
Urban Entrepreneurship held a hearing on April 2, 2009 to
evaluate the legislation to enhance entrepreneurial development
resources, particularly through the SBDC program. The Committee
received testimony from small business representatives,
including the Director of the Illinois Small Business
Development Center to discuss the effect of the legislation on
the capacity of SBDCs to meet the increasing demand for
services particularly during the economic downturn of 2007-
2009.
The Committee on Small Business, Subcommittee on Rural and
Urban Entrepreneurship met in open session on April 30, 2009,
and ordered H.R. 1845 reported to the Committee on Small
Business by a voice vote.
On November 7, 2009, the House considered H.R. 1845 and
passed the bill by a record vote of 412 ayes and 20 nays. On
November 9, 2009, the bill was received in the Senate, read
twice, and referred to the Committee on Small Business and
Entrepreneurship.
No further action was taken on this legislation in the
111th Congress.
THE JOB CREATION THROUGH ENTREPRENEURSHIP ACT OF 2009
(H.R. 2352)
Summary
H.R. 2352 updates SBA's core entrepreneurial development
programs, including Small Business Development Centers, Women's
Business Centers, Service Corps of Retired Executives, and
Veterans and Native American Business Outreach Programs. The
legislation updates SBA's entrepreneurial development resources
to reflect the changing needs of small firms by providing them
with modernized services, including business counseling,
technical assistance, research, and mentorship, for adjusting
to and expanding within the current recession.
The legislation modernizes these resources to reflect the
changing needs of entrepreneurs by improving service quality
and relevance, enhancing service delivery methods, and
expanding program emphasis on promoting growth. To ensure
entrepreneurs have access to relevant business development
tools to address economic conditions, the legislation
establishes new, specialized services tailored to the needs of
individual small business subsectors. New initiatives have been
developed to provide more sophisticated levels of assistance
and counseling. Additional services have been targeted to
address the needs of veterans, including those requiring
customized assistance, particularly reservists, service-
disabled, and women. Further, the bill establishes new service
for women business owners and Native American entrepreneurs.
The legislation also improves the ways that services are
delivered to the small business population. It enhances the ED
program's structure and implementation particularly affecting
access to services for entrepreneurs in underserved
communities, and expands the use of performance measurements.
The legislation increases the ED programs' focus on promoting
economic growth by increasing the agency's collaboration with
local community organizations; facilitating the growth of
entrepreneurs in socio-economically disadvantaged regions; and
expanding program incentives for spurring productivity.
Legislative history
H.R. 2352 was introduced by Rep. Shuler on May 12, 2009.
Original Cosponsors included the Committee Chairwoman Nydia
Velazquez and the following Committee members: Reps.
Luetkemeyer; Altmire; Buchanan; Clarke; Dahlkemper; Halvorson;
Michaud; Moore; Nye; Schock; Schrader; Sestak; and Thompson.
The bill was referred to the Committee on Small Business.
The Committee on Small Business held a hearing on February
11, 2009 to examine entrepreneurial needs arising from the
economic downturn to be addressed through the reauthorization
and modernization of SBA's entrepreneurial development (ED)
programs. Small business representatives and public-private
business management consultants recommended policy changes and
resource priorities to update the agency's ED programs.
On April 2, 2009 the Subcommittee on Rural and Urban
Entrepreneurship held a hearing to evaluate proposed
legislative initiatives to update the agency's core ED programs
and received testimony from the major program administrators on
the likely impacts to the services available to small
businesses from the legislation.
On May 6, 2009, the Committee on Small Business held a
hearing to consider the effect of the legislation to extend the
scope and modify the delivery of the agency's business
development services, as well as the role of the bill in
strengthening small businesses during the economic downturn.
Small business representatives testified on the merits of the
legislation.
The Committee on Small Business met in open session on May
13, 2009, and ordered H.R. 2352 reported to the House, as
amended, with a favorable recommendation by a voice vote.
On May 20, 2009, the House considered H.R. 2352 and passed
the bill by a record vote of 406 ayes and 15 nays. On May 21,
2009, the bill was received in the Senate, read twice, and
referred to the Committee on Small Business and
Entrepreneurship.
No further action was taken on this legislation in the
111th Congress.
RURAL TECHNOLOGY DEVELOPMENT AND OUTREACH ACT
(H.R. 2747)
Summary
H.R. 2747 amends provisions of the Small Business Act
relating to the Small Business Innovation Research (SBIR)
Program and the Small Business Technology Transfer (STTR)
Program to direct the Administrator of the Small Business
Administration (SBA) to make grants to organizations to conduct
outreach efforts to increase participation in such programs and
provide application, entrepreneurial, and business skills
support to prospective program participants. The legislation
requires organizations receiving such funds to direct
activities toward small businesses located in areas that are
underrepresented in SBIR and STTR programs or owned and
controlled by women, service-disabled veterans, and minorities.
It also directs the Administrator to establish an advisory
board to carry out authorized activities and provides a two-
year period for each grant award. The legislation also requires
federal agencies, in making SBIR and STTR grant awards, to
prioritize applications so as to increase the number of
recipients from rural areas.
Legislative history
H.R. 2747 was introduced by Rep. Halvorson on June 8, 2009.
The bill was referred to the Committee on Small Business and
the Committee on Science and Technology.
In the 111th Congress, the Committee on Small Business
convened a hearing on April 22, 2009 to explore the numerous
contributions that the SBIR program makes to national security
priorities, health technology, economic development objectives
and America's international economic competitiveness. On June
4, 2009, the Committee on Small Business, Subcommittee on
Contracting and Technology held a hearing to review the
proposed legislation that would reauthorize and modernize the
SBIR program. The Subcommittee met in open session on June 11,
2009 and approved H.R. 2747 by voice vote.
No further action has been taken on this legislation in the
111th Congress.
INVESTING IN TOMORROW'S TECHNOLOGY ACT
(H.R. 2767)
Summary
H.R. 2767 amends the Small Business Act to extend through
FY 2011 the Small Business Innovation Research (SBIR) Program
and the Small Business Technology Transfer (STTR) Program. The
legislation provides that, with respect to participation in an
SBIR or STTR program a business that has more than 500
employees shall not qualify as a small business and in
determining whether a small business is independently owned and
operated, the Administrator of the Small Business
Administration (SBA) shall not consider the business as
affiliated with a venture capital operating company if such
company does not own 50 percent or more of the business and the
company's employees do not constitute a majority of the
business's board of directors.
The legislation provides limited conditions under which a
small business shall still be considered eligible for SBIR/STTR
participation when a venture capital operating company
controlled by a business with more than 500 employees has an
ownership interest in a small business owned in majority part
by venture capital operating companies.
Legislative history
H.R. 2767 was introduced by Ranking Member Graves on June
9, 2009. The bill was referred to the Committee on Small
Business and the Committee on Science and Technology.
In the 111th Congress, the Committee on Small Business
convened a hearing on April 22, 2009 to explore the numerous
contributions that the SBIR program makes to national security
priorities, health technology, economic development objectives
and America's international economic competitiveness. On June
4, 2009, the Committee on Small Business, Subcommittee on
Contracting and Technology held a hearing to review the
proposed legislation that would reauthorize and modernize the
SBIR program. The Subcommittee met in open session on June 11,
2009 and approved H.R. 2767 by voice vote.
No further action has been taken on this legislation in the
111th Congress.
COMMERCIALIZING SMALL BUSINESS RESEARCH AND DEVELOPMENT ACT
(H.R. 2769)
Summary
H.R. 2767 amends the Small Business Act to state as the
policy of Congress that Small Business Administration (SBA)
research and development (R&D) programs should focus on
promoting R&D of projects governed by commercial business plans
which have significant potential to produce products or
services for the marketplace or for acquisition by federal
agencies. Energy-related, nanotechnology, and rare disease-
related research topics are designated as deserving special
consideration under Small Business Innovation Research (SBIR)
Program research topics.
The legislation requires each federal agency that is
obligated to have an SBIR program and that awards annually $5
billion or more in procurement contracts to establish, for
FY2010 and thereafter, annual goals for the commercialization
of projects funded by SBIR awards. Finally, it directs each
federal agency required to conduct an SBIR program to establish
a commercialization program that supports the progress of SBIR
awardees to the third phase.
Legislative history
H.R. 2769 was introduced by Rep. Bright on June 9, 2009.
The bill was referred to the Committee on Small Business and
the Committee on Science and Technology.
In the 111th Congress, the Committee on Small Business
convened a hearing on April 22, 2009 to explore the numerous
contributions that the SBIR program makes to national security
priorities, health technology, economic development objectives
and America's international economic competitiveness. On June
4, 2009, the Committee on Small Business, Subcommittee on
Contracting and Technology held a hearing to review the
proposed legislation that would reauthorize and modernize the
SBIR program. The Subcommittee met in open session on June 11,
2009 and approved H.R. 2769 by voice vote.
No further action has been taken on this legislation in the
111th Congress.
SBIR AND STTR ENHANCEMENT ACT
(H.R. 2772)
Summary
H.R. 2772 amends the Small Business Act to direct each
federal agency that is required to establish a small business
innovation research (SBIR) program to issue research topic
solicitations at least twice a year and make a final decision
on topic proposals within 90 days, unless the Administrator of
the Small Business Administration (SBA) determines that a
decision may be extended to 180 days.
The legislation also authorizes funding for SBIR
administrative, oversight, and contract processing costs and
requires a Comptroller General audit on how federal agencies
calculate SBIR and STTR (Small Business Technology Transfer)
extramural research budgets. It directs each federal agency
conducting an SBIR or STTR program to establish and maintain
program evaluation and technology utilization databases and
authorizes them to ``fast track'' phase two awards. Finally,
H.R. 2772 increases SBIR and STTR award levels and provides
express authority for agencies to award sequential phase two
awards for SBIR-funded projects.
Legislative history
H.R. 2772 was introduced by Rep. Schock on June 9, 2009.
The bill was referred to the Committee on Small Business and
the Committee on Science and Technology.
In the 111th Congress, the Committee on Small Business
convened a hearing on April 22, 2009 to explore the numerous
contributions that the SBIR program makes to national security
priorities, health technology, economic development objectives
and America's international economic competitiveness. On June
4, 2009, the Committee on Small Business, Subcommittee on
Contracting and Technology held a hearing to review the
proposed legislation that would reauthorize and modernize the
SBIR program. The Subcommittee met in open session on June 11,
2009 and approved H.R. 2772 by voice vote.
No further action has been taken on this legislation in the
111th Congress.
SBIR/STTR REAUTHORIZATION ACT OF 2009
(H.R. 2965)
Summary
The SBIR/STTR Reauthorization Act extends for a period of
two years the Federal government's largest small business
research and development programs. The legislation modernizes
the Small Business Innovation Research (SBIR) program, changing
the legislative guidelines and policies in order to update the
program in response to the unique challenges facing small
research companies and the changing research priorities of
Federal agencies.
The Act is aimed at three broad goals. First, the bill
seeks to encourage greater participation in SBIR. An increase
in the number of small businesses applying for SBIR is critical
to the on-going success of the program. Second, the bill
permits small companies that are majority-owned by qualifying
venture capital firms to participate in the SBIR program. A
2003 ruling by the Small Business Administration (SBA) has made
small firms with large investments from venture capital
companies ineligible to participate in the SBIR program. The
SBA ruling forces many small businesses to choose between
accepting investments from venture capital firms and
participating in the Federal government's largest R&D program
for small research firms. Third, the bill seeks to encourage
and support commercialization initiatives at Federal agencies
that administer SBIR programs. Under current law, certain
Federal agencies have the authority to develop
commercialization programs. This bill extends to all agencies
the authority to develop programs designed to support the
commercialization of SBIR-funded research.
Additionally, the bill seeks to codify in statute the
programmatic flexibility that Federal agencies need in order to
administer SBIR awards in a manner that is most consistent with
the agency's specific mission. The SBIR policy directive issued
by the SBA has provided a great deal of autonomy to the Federal
agencies, the bill codifies agency autonomy with respect to
administering their SBIR programs. Along with granting to
Federal agencies a great degree of autonomy, the bill also
requires Federal agencies to establish more concrete goals and
objectives with respect to their SBIR programs and directs the
agencies to provide Congress with more regular reports.
Legislative history
H.R. 2965 was introduced by Rep. Altmire on June 19, 2009.
Original Cosponsors included the Committee Chairwoman Nydia
Velazquez and Reps. Wu, Graves, Schock, Nye, Halvorson, and
Bright. The bill was referred to the Committee on Small
Business and the Committee on Science and Technology.
In the 111th Congress, the Committee on Small Business
convened a hearing on April 22, 2009 to explore the numerous
contributions that the SBIR program makes to national security
priorities, health technology, economic development objectives
and America's international economic competitiveness. On June
4, 2009, the Committee on Small Business, Subcommittee on
Contracting and Technology held a hearing to review the
proposed legislation that would reauthorize and modernize the
SBIR program. A mark-up of the legislation, which would become
the basis for H.R. 2965 was conducted on June 11, 2009.
On June 17, 2009, the Committee on Small Business convened
a hearing to review H.R. 2965. Witnesses testified on the
legislation's broad benefits to small businesses and American
innovation. On June 25, 2009, the Committee met in open session
and ordered H.R. 2965, as amended, to be reported by a recorded
vote of 22 to 0.
On July 8, 2009, the bill was considered by the House under
a structured rule. Five amendments were made in order under the
rule and all were agreed to by either voice vote or recorded
vote. The bill passed the House with a vote of 386 yeas and 41
nays. On July 9, 2009, H.R. 2965 was received in the Senate and
read twice. On July 13, 2009, the Senate struck all after the
Enacting Clause, substituted the language of S. 1233 as amended
and then passed the legislation by Unanimous Consent.
No further action has been taken on this legislation in the
111th Congress.
SMALL BUSINESS HEALTH INFORMATION TECHNOLOGY FINANCING ACT
(H.R. 3014)
Summary
H.R. 3014 amends the Small Business Act to create a new
loan guarantee program separate from other SBA programs that is
solely available to certain healthcare providers to purchase
health information technology (HIT). This new HIT loan program
will rely on private-sector lenders to provide loans that are,
in turn, guaranteed by the SBA. The proceeds from a HIT loan
may be used for qualifying HIT purpose including the
acquisition, maintenance, or training for HIT systems and
equipment. Loans are eligible for a 90 percent SBA guarantee
and loan amounts are up to $350,000 for any single individual/
professional and $2,000,000 for any group.
Legislative history
H.R. 3014 was introduced by Rep. Dahlkemper on April 1,
2009. Original cosponsors included Reps. Altmire, Clarke,
Ellsworth, Nye, Schrader, Shuler, and Velazquez. The bill was
referred to the Committee on Small Business.
The Small Business Committee, Subcommittee on Regulations
and Healthcare held a hearing on June 22, 2009 to discuss the
financial challenges that solo and small group health practices
face in adopting health information technology (HIT). In
particular, witnesses provided testimony on the dislocations
between capital costs and returns on investment that discourage
greater uptake of HIT assets by small health providers.
On Thursday, July 23, 2009 the Small Business Committee,
Subcommittee on Finance and Tax held a hearing to examine
proposed legislative initiatives to address deficiencies in the
SBA's lending and investment programs that had been identified
by previous hearings before the Committee.
On Thursday, October 8, 2009, the Small Business Committee,
Subcommittee on Finance and Tax held a markup of H.R. 3014.
This bill was reported to the full Committee by voice vote with
no amendments.
On November 18, 2009, the House considered H.R. 3014 and
passed the bill by voice vote.
On November 19, 2009, the bill was received in the Senate,
read twice, and referred to the Committee on Small Business and
Entrepreneurship.
No further action was taken on this legislation in the
111th Congress.
THE ENHANCED NEW MARKETS AND EXPANDED INVESTMENT IN RENEWABLE ENERGY
FOR SMALL MANUFACTURERS ACT OF 2009
(H.R. 3722)
Summary
H.R. 3722, The Small Business Financing and Investment Act
updates and expands two of the SBA's most underutilized
programs--the New Markets Venture Capital (NMVC) program and
the Renewable Fuel Capital Investment (RFCI) program--with
specific emphasis on expanding the programs and providing
targeted investment for small manufacturing firms.
For both the NMVC and RFCI programs, a statutory mandate is
established for the SBA Administrator to actively engage in
affirmative actions to expand the number of investment
companies and ensure that both programs have a broad nationwide
distribution. Additionally, the Administrator is required to
perform a study on the success in expanding the NMVC and RFCI
programs and report this progress no later than one year after
the bill's enactment.
H.R. 3722 amends the NMVC program to place a heightened
emphasis on increasing capital investments for small businesses
engaged in manufacturing. The program's current limitations to
``smaller enterprises'' will be expanded to permit investment
in any small business concern located in a low income (LI) area
that is engaged primarily in manufacturing. The bill also
expands the permissible uses of operational assistance (OA) to
include assistance for small manufacturing businesses to
retool, update, or replace machinery or equipment.
Additionally, the private capital requirements for NMVC
companies that investment in small manufacturers in LI areas
are lowered, making it easier for these companies to secure
final approval from the SBA. Taken together, these changes will
facilitate the licensing of more NMVC companies that will
invest in small manufacturing firms and will provide small
manufacturing businesses with crucial support to expand their
business activity in a recovering economy.
The bill makes similar amendments to the RFCI program to
help small manufacturing firms reorient their businesses toward
the anticipated green economy. The program's current
limitations to ``smaller enterprises'' will be expanded to
permit investment in any small business concern that is engaged
in research, development, or manufacturing of renewable energy-
related goods, products or services. The program will also be
renamed the ``Renewable Energy Capital Investment'' (RECI) and
will be established as a permanent part of the SBA's investment
mission. The bill will also expand the permissible uses of
operational assistance grants (OA) to include assistance for
RECI businesses to reduce their energy consumption or to
retool, update, or replace machinery or equipment. The bill
also simplifies the existing fee structure of the RECI program
to authorize the Administrator to charge fees only for the
purpose of offsetting the cost of RECI guarantees. Operational
assistance grants would continue to be subsidized by
appropriated funds. This will effectively expedite the
implementation of the RECI program by enabling the SBA to
implement the investment and leverage portion of the program
independent of the operational grants.
H.R. 3722 makes several technical and process improvements
to both the NMVC and RECI programs. In the NMVC program, the
final approval process for conditionally approved NMVC
companies will be streamlined by establishing simplified
application documents and permitting conditionally approved
NMVC companies to receive funding for operational assistance.
The operational assistance element will also be simplified,
making it easier for companies to raise matching commitments
for OA. The NMVC definition of ``low-income geographic areas''
would be directly associated with the definition of a ``low-
income community'' in the Internal Revenue Code, thus enabling
NMVC companies to leverage eligible NMVC investments with New
Markets Tax Credit allocations.
H.R. 3722 authorizes the SBA to make up to $40 million in
OA grants for fiscal years 2010 and 2011 in the NMVC program,
and $40 billion in OA grants for fiscal years 2010 and 2011 in
the RECI program. The SBA is also authorized to guaranty $100
million in NMVC program debentures and $1 billion in RECI
debentures for each of fiscal years 2010 and 2011.
Legislative history
H.R. 3722 was introduced by Congresswoman Ann Kirkpatrick
(AZ-01) on October 6, 2009 with no additional original
cosponsors. The bill was referred to the Committee on Small
Business and was further referred to the Subcommittee on
Finance and Tax.
The Subcommittee on Finance and Tax held a markup on H.R.
3722 on October 8, 2009 where the bill was forwarded to the
full committee by voice vote with no amendments.
Provisions of H.R. 3722 were incorporated in H.R. 3854,
which was reported to the House on October 21, 2009 and
subsequently passed by the House on October 29, 2009.
No further action was taken on this legislation in the
111th Congress.
THE SMALL BUSINESS CREDIT EXPANSION AND LOAN MARKETS STABILIZATION ACT
OF 2009
(H.R. 3723)
Summary
H.R. 3723 updates and streamlines the SBA's largest small
business finance program, the 7(a) program. Most importantly,
the bill makes a number of changes to help small businesses
access credit in an environment where many have experienced
unprecedented capital constraints. The legislation increases
the maximum gross size of 7(a) loans by 33 percent--from the
current level of $2 million to $3 million. This level of loans
will help provide small firms with larger amounts of capital
under the program without increasing the SBA's level of risk
exposure with larger guarantee amounts on larger loans. This
change will also ensure that the program remains focused on
startup and early stage small firms, businesses that have
historically encountered the greatest difficulties in accessing
credit. It also avoids making small borrowers carry a
disproportionate share of the risk associated with larger
loans.
A new Capital Backstop program is also established under
which the SBA will provide assistance to lenders in the
application, processing, and underwriting functions for 7(a)
loans, thus acting as a conduit to match lenders who are
willing to make loans with borrowers in need of capital. Under
this program, the SBA would also act as a lender of last resort
for creditworthy borrowers in times of credit shortage or when
private lenders withdraw from lending in an effort to hoard
capital--as was widely seen in the recent credit crunch. This
program would only take effect in the event that the Bureau of
Economic Analysis has determined that the gross domestic
product of the U.S. has declined for three consecutive
quarters, and if the annual program level volume of the SBA's
7(a) loan program has declined by 30 percent or more compared
to the same time in the previous fiscal year. It should also be
noted, however, that the SBA would be required to apply the
existing eligibility and credit underwriting criteria that are
used for 7(a) loans, thus avoiding any adverse selection for
SBA loan-making. In fact, the SBA backstop portfolio should
carry no more risk than that of a 7(a) private sector lender.
Additionally, total program level in the Capital Backstop
program would be identical to the annual program level of the
7(a) program, meaning that the program would not entail any
increased exposure beyond levels already contemplated in the
annual 7(a) program level authorization. Finally, to avoid any
undue personnel burden on the SBA's other programs, the Capital
Backstop program would be carried out using a reserve cadre of
lending professionals that is skilled and trained to make
loans.
The bill will also extend the recovery and relief loan
benefits that were originally established under the American
Recovery and Reinvestment Act of 2009 (ARRA) through the end of
fiscal year 2011, thus providing businesses with no-fee loans
that are backed up to 90 percent by the SBA. The America's
Recovery Capital (ARC) loan program will also see several
enhancements, with its extension through the end of fiscal year
2011, a new single-page application requirement, and an
increase in the maximum size of ARC loans to $50,000. Previous
restrictions on the use of ARC loans to service other SBA debt
will also be eliminated, thus expanding the reach of ARC
proceeds as a significant source of business stabilization
capital.
The bill incorporates several initiatives aimed at
encouraging more lenders to participate in the 7(a) program and
make more loans available to small firms. First, the 7(a)
lending process is simplified and streamlined, particularly
among community banks and lenders who do not currently
participate in the program. A Small Bank Outreach program will
be established with the specific mission of identifying and
supporting small banks, credit unions, and community lenders to
participate in the program. The legislation also establishes a
Rural Lender Outreach program to reduce the paperwork burden
associated with 7(a) loans.
To ensure that the SBA's private sector lenders receive
fair and expeditious resolution of their complaints, an
independent and objective Ombudsman's office will be created to
resolve lenders' appeals separately from the SBA's program
administration offices. This measure will enhance participation
in the lending programs by ensuring that program participants
can make informal inquiries or file formal appeals to an
independent, disinterested party in the strictest confidence
and without fear of retaliation. The Ombudsman and independent
review process, however, would not be a binding determination
and would not affect other existing administrative procedures
or judicial remedies.
The bill also adapts the 7(a) program to achieve specific
public policy objectives through the establishment of a Rural
Lender Outreach program to focus on making loans with
increased-guarantees and reduced paperwork burdens for
entrepreneurs in rural communities. It also targets capital
toward socially and economically disadvantaged businesses by
providing permanent authority for the Community Express Loan
program and the Increased Veteran Participation Loan program.
The legislation will also expand access to 7(a) loans for
businesses that are organized as cooperative enterprises and
will prohibit the SBA from applying disparate treatment to
loans that are used to finance goodwill when a business is
bought or sold.
This legislation also addresses several deficiencies that
discourage existing lenders from fully utilizing the program.
The legislation will put an end to improper denials and long
waiting periods when lenders apply for the SBA to honor its
guarantees by requiring the SBA to make prompt and proper
payment on guaranty repurchase applications. A National Lender
Training Program will be established to train new and
participating lenders on SBA's lending systems, policies, and
procedures, and to help reduce incidents of improper loan
underwriting and documentation in the program. The Secondary
Market Lending Authority established under ARRA will be made a
permanent part of the SBA's access to capital mission and will
be expanded to provide warehouse credit to any 7(a) lender.\6\
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\6\Currently, participation in the Secondary Market Lending
Authority is limited solely to systemically significant brokers and
dealers in 7(a) loans.
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The bill authorizes a program level of $20 billion for
fiscal years 2010 and 2011. This is approximately 14 percent
higher than the current level of $17.5 billion and should be
more than adequate to support any increased lending that may
occur in the program.
Legislative history
H.R. 3723 was introduced by Congresswoman Deborah Halvorson
(IL-11) on October 6, 2009 with no additional original
cosponsors. The bill was referred to the Committee on Small
Business and was further referred to the Subcommittee on
Finance and Tax.
The Subcommittee on Finance and Tax held a markup on H.R.
3723 on October 8, 2009 where bill was forwarded to the full
committee by voice vote with no amendments.
Provisions of H.R. 3723 were incorporated in H.R. 3854,
which was reported to the House on October 21, 2009 and
subsequently passed by the House on October 29, 2009.
No further action was taken on this legislation in the
111th Congress.
SMALL BUSINESS MICROLENDING EXPANSION ACT OF 2009
(H.R. 3737)
Summary
H.R. 3737 authorizes the SBA to utilize surplus funds for
the purpose of reducing the interest rates that borrowers pay
in the program. Borrowers will benefit from legislative
language that permits intermediaries to make loans with more
flexible credit that can better meet the needs of small
businesses, particularly those with seasonal business. The SBA
will be required to establish a process for the transmission of
credit reporting data to the major credit bureaus, thus
enabling program participants to establish credit histories
through the program.
The legislation also increases the maximum size of loans
made under the program, both for intermediaries and borrowers.
Currently, the maximum obligation that any intermediary may
have under the program is $3.5 million, with first-year
intermediaries limited to just $750,000. This bill will
increase those caps to $7 and $1 million respectively. The
legislation also seeks to bring more intermediaries into the
program by broadening the eligibility requirements for micro-
intermediaries to qualify for the program.
Finally, the bill makes a number of technical revisions to
the 7(m) program that will increase its overall efficacy. An
annual reporting requirement will be implemented to closely
track the performance of the program and provide policymakers
with information on the program's performance.
Legislative history
H.R. 3737 was introduced by Rep. Ellsworth on October 7,
2009. The bill was referred to the Committee on Small Business.
The full Committee subsequently held a hearing on June 10,
2009, to examine the challenges facing the full array of the
SBA's capital access programs. The Committee received testimony
on issues facing the 7(a), Certified Development Company (CDC),
Small Business Investment Company (SBIC), New Markets Venture
Capital (NMVC), 7(m)/Microloan, and Renewable Fuels Capital
Investment (RFCI) Company programs. Witnesses at this hearing
discussed various deficiencies affecting the efficacy of these
programs and proposed steps that could be taken to better meet
the SBA's capital access mission.
On Thursday, July 23, 2009 the Small Business Committee,
Subcommittee on Finance and Tax held a hearing to examine
proposed legislative initiatives to address deficiencies in the
SBA's lending and investment programs that had been identified
by previous hearings before the Committee. Witnesses at this
hearing discussed several legislative proposals that would make
a number of important reforms to the SBA's existing programs.
On Thursday, October 8, 2009, the Small Business Committee,
Subcommittee on Finance and Tax held a markup of H.R. 3737.
This bill was reported to the full Committee by voice vote with
no amendments.
On November 6 and 7, 2009, the House considered H.R. 3737
and passed the bill by a vote of 405 to 23.
On November 9, 2009, the bill was received in the Senate,
read twice, and referred to the Committee on Small Business and
Entrepreneurship.
No further action was taken on this legislation in the
111th Congress.
SMALL BUSINESS EARLY-STAGE INVESTMENT ACT OF 2009
(H.R. 3738)
Summary
Under the Small Business Early Stage Investment (SBESI)
program established by this legislation, the SBA will provide
grant funding to act as co-investment in qualified companies
that will focus on investing in small businesses, with
particular emphasis on financing early-stage small businesses
in targeted industries. Early stage small businesses are those
that have not generated revenues in excess of $15 million in
any of the previous three years.
In order to receive SBA funding, however, an investment
company must have capital commitments from non-federal sources
that are at least equal to the amount of its grant request. SBA
funding would then be repaid pari passau when the fund exits
its investments. As SBA funding is repaid, funds will go to a
revolving capital fund administered by the SBA and be
recommitted to new program participants.
Funds from the SBESI program will only be given to highly
qualified investment funds with experienced managers that have
a proven track record of returning a profit to their investors.
As a condition of receiving grants, the investment funds must
commit to repayment of all investors, including the SBA, in
cash. The SBA shall establish a process for selecting funds to
participate in the program, with an abbreviated application
process for investment companies that have already secured a
license under the SBA's Small Business Investment Company
(SBIC) program. SBICs will also benefit from presumptive
qualifications under several selection criteria for which they
previously qualified under the SBIC licensing process.
In order to receive SBESI funds, applicants must have
raised private capital in an amount equal to or greater than
the amount of SBA funds being requested. The maximum amount of
a grant may not exceed $100 million for any single investment
fund or its affiliates. Investment companies receiving grant
monies must make all of their investments in small businesses,
and no less than 50 percent of their investments in early stage
small businesses in targeted industries.
In exchange for receiving SBESI funds, participating
investment funds must convey a ``grant interest'' to the SBA.
The grant interest shall have all the rights and attributes of
an investor interest, but shall not denote control or voting
rights to the SBA. The grant interest shall entitle the SBA to
a pro rata portion of any distributions made by the investment
company, in cash, and equal to the pro rata share of the total
funds in the investment company that the SBA grant commitment
comprised.
As distributions are made by participating funds, all
distributions shall go to a revolving fund and be recommitted
to new participating funds. SBA will audit participating
investment companies when half of the grant commitment funds
have been drawn-down to ensure that the grant is being invested
in a fashion consistent with the law.
Legislative history
H.R. 3738 was introduced by Rep. Nye on October 7, 2009.
The bill was referred to the Committee on Small Business.
On March 26, 2009, the Small Business Committee,
Subcommittee on Oversight and Investigations held a hearing to
examine issues related to investment in small businesses, with
particular emphasis on how prevailing economic conditions have
affected investment in small firms. Witnesses in this hearing
explained how the current recession has aggravated the need for
investment funds, particularly for equity investing in small
firms, and how new federal initiatives could allay those needs.
Additionally, this hearing explored numerous setbacks to the
SBA's investment programs that have dramatically reduced the
amount of investment in early stage and startup businesses and
have inhibited the flow of venture capital to small businesses
in general.
The full Committee subsequently held a hearing on June 10,
2009, to examine the challenges facing the full array of the
SBA's capital access programs. Witnesses at this hearing
discussed various deficiencies affecting the efficacy of these
programs and proposed steps that could be taken to better meet
the SBA's capital access mission.
On Thursday, July 23, 2009 the Small Business Committee,
Subcommittee on Finance and Tax held a hearing to examine
proposed legislative initiatives to address deficiencies in the
SBA's lending and investment programs that had been identified
by previous hearings before the Committee. Witnesses at this
hearing discussed several legislative proposals that would make
a number of important reforms to the SBA's existing programs
and establish new programs that will help close the gap for
equity investment that was left when the SBA's investing
programs were curtailed.
On Thursday, October 8, 2009, the Small Business Committee,
Subcommittee on Finance and Tax held a markup of H.R. 3738.
This bill was reported to the full Committee by voice vote with
no amendments.
On November 18, 2009, the House considered H.R. 3738 and
passed the bill by voice vote.
On November 19, 2009, the bill was received in the Senate,
read twice, and referred to the Committee on Small Business and
Entrepreneurship.
No further action was taken on this legislation in the
111th Congress.
THE JOB CREATION AND ECONOMIC DEVELOPMENT THROUGH CDC MODERNIZATION ACT
OF 2009
(H.R. 3739)
Summary
H.R. 3739 will modernize and improve the Certified
Development Company (CDC) program by making an array of
technical changes that increase the flow of capital to small
businesses and addressing two of the program's most important
challenges. The bill contains several provisions that will
directly benefit small businesses in need of long-term, fixed-
rate financing. Businesses will be able to make larger equity
injections to reduce the amount of a CDC project that is
financed with a first lien loan. This will result in lower-cost
CDC financings, particularly for startup or capital-intensive
businesses. Borrowers will also have the option of including
loan and debenture closing costs in a CDC financing loan, thus
reducing the upfront cost of these loans. Additionally, the
maximum size of CDC financings will be significantly
increased--from the current limit of $10 million to $12.5
million--and existing statutory limits that prohibit borrowers
from securing CDC loans and 7(a) loans for the maximum combined
amounts will be eliminated.
Borrowers will also benefit from legislative initiatives to
expand the program's reach to businesses that are owned by
women, minorities, and veterans by permitting CDCs to consider
the qualifications of two or more business owners in
determining whether a financing qualifies for larger
financings. Additionally, the bill will expand the program to
permit financing for businesses in low-income communities and
rural areas, while also increasing the maximum loan size for
these businesses as well as for businesses that are a major
source of employment in their community.
The bill contains provisions that will be vital to the
long-term success of the CDC program, by authorizing CDC staff
to act as local agents of the SBA in performing workouts,
liquidations, and recoveries. This will help minimize losses by
ensuring timely liquidation and recovery of defaulted loans.
The bill contains a provision for the SBA to reimburse CDC
costs for both staff and contractors, as necessary, for these
liquidation activities, with the funds ultimately coming from
increased recoveries on defaulted loans. These provisions will
be particularly relevant in the current environment where loan
defaults in the program are increasing in response to the
economic downturn and real estate values declining.
Finally, an important, but easily overlooked focus for the
bill will be to codify the existing certification requirements
and processes that define CDCs. Although historically defined
in agency guidance and regulation, the statutory codification
of the program's membership requirements, operational
parameters, and ethical standards are critical to the long-term
stability and successful implementation of the program. These
changes will provide permanent and fixed authority for every
existing CDC while simultaneously laying the groundwork for new
CDCs to enter the program.
The bill authorizes a program level of $9 billion for FY
2010 and $10 billion for FY 2011. Because the program operates
at zero subsidy, however, no appropriation will be necessary to
support these levels of lending in the program.
Legislative history
H.R. 3739 was introduced by Congressman Vern Buchanan (FL-
13) on October 6, 2009 with no additional original cosponsors.
The bill was referred to the Committee on Small Business and
was further referred to the Subcommittee on Finance and Tax.
The Subcommittee on Finance and Tax held a markup on H.R.
3739 on October 8, 2009 where the bill was forwarded to the
full committee by voice vote without amendments.
Provisions of H.R. 3739 were incorporated in H.R. 3854,
which was reported to the House on October 21, 2009 and
subsequently passed by the House on October 29, 2009.
No further action was taken on this legislation in the
111th Congress.
THE SMALL BUSINESS INVESTMENT COMPANY MODERNIZATION ACT OF 2009
(H.R. 3740)
Summary
The Small Business Financing and Investment Act will update
and streamline the SBA's largest investment program, the Small
Business Investment Company program. The legislation will seek
to increase the number and size of investments made in small
firms under the program. Perhaps equally important, the bill
will seek to halt the continued flight of SBICs that
participate in the program by establishing an expedited
licensing process to keep successful SBICs that are in good-
standing involved in the program. The bill will also revise the
SBIC leverage limitations to create an incentive for
successful, well run SBICs to remain in the program by
permitting SBICs that are managed by the same team to access
the increased leverage limits available for a family of SBIC
funds.
The bill will spur innovation within the program and test
new structures for SBIC leverage by providing the SBA with
specific authority to create new pilot programs within the SBIC
program. This would be subject to limitations on the number,
size, term, and dollar amount of any leverage pilot program,
and could not constitute mandatory program changes for SBICs to
follow. The SBA would also be required to continue applying
existing requirements to maintain zero-subsidy in the SBIC
program, and would have to comply with the notice and comment
rulemaking provisions of current law.
Businesses will have access to greater investment under the
provisions of the bill that expand the Energy Saving Debenture
program and increase the amounts of leverage available to
invest in veteran-owned businesses. Burdensome SBA regulations
that limit businesses' ability to prepay SBIC leverage will
also be eliminated, enabling businesses to prepay a de minimis
amount of their SBIC investment without prior approval from the
SBA. This change will provide businesses with greater
flexibility in managing the investment funds they receive under
the program.
Finally, the bill makes a number of technical revisions to
the SBIC program that will increase the overall efficacy of the
program. The bill clarifies that venture leases, equipment
leases, real estate sale leasebacks, and similar arrangements
qualify as loans that are authorized forms of financing for
SBIC funds. The bill also corrects inconsistencies between the
SBA's regulations and the Small Business Investment Act to
clarify the terms of a default on an SBIC loan.
The bill authorizes the SBA to make up to $5 billion in
SBIC debenture guarantees and in each of fiscal years 2010 and
2011.
Legislative history
H.R. 3740 was introduced by Congressman Blaine Luetkemeyer
(MO-09) on October 6, 2009 with no additional original
cosponsors. The bill was referred to the Committee on Small
Business and was further referred to the Subcommittee on
Finance and Tax.
The Subcommittee on Finance and Tax held a markup on H.R.
3740 on October 8, 2009 where the bill was forwarded to the
full committee by voice vote with no amendments.
Provisions of H.R. 3740 were incorporated in H.R. 3854,
which was reported to the House on October 21, 2009 and
subsequently passed by the House on October 29, 2009.
No further action was taken on this legislation in the
111th Congress.
SMALL BUSINESS DISASTER READINESS AND REFORM ACT OF 2009
(H.R. 3743)
Summary
H.R. 3743 directs the SBA to improve the way in which it
disburses approved assistance to victims of disasters. The bill
directs the SBA to only require that repayment begins once all
the disaster loan proceeds have been disbursed and further
requires that repayment amounts be based solely on funds that
have actually been disbursed, not on amounts that were approved
and not disbursed.
The bill also establishes a grant program to assist small
businesses in the most severe of disasters for which the
Administrator has declared eligibility for additional disaster
assistance. To ensure that grant assistance only goes to the
neediest small businesses and is only used to spur
redevelopment in communities where market forces have failed,
the program will only be applicable under very limited
circumstances. In order to receive a grant, a small business
must have been located in those communities most severely
damaged by the disaster, must have been in existence for at
least two years prior to the disaster, must have been rejected
for a conventional SBA loan, must have remained economically
viable following the disaster, and must have certified that
they will reopen their business in one of the affected
communities.
The legislation creates an outreach program under which the
SBA will allocate funds to Women's Business Centers, Veterans'
Business Outreach Centers, Small Business Development Centers
and local chambers of commerce for these organizations to
provide applicants with assistance in preparing applications
for loan assistance and navigating the SBA's convoluted loan
process.
Finally, the SBA's disaster planning and preparedness will
be enhanced through the creation of Regional Disaster Working
Groups. Under this provision the Regional Administrator in each
of the SBA's regional offices must develop region-specific
disaster preparedness and response plans that are based upon
the comprehensive disaster response plan required by Section 40
of the Small Business Act and that is developed in cooperation
with city, state, and federal emergency response authorities as
well as with representatives from businesses located within the
region. At a minimum, the disaster preparedness and recovery
subplan must identify and plan for three disaster scenarios,
either natural or manmade, that are likely to occur in the
region.
Legislative history
H.R. 3743 was introduced by Rep. Griffith on October 7,
2009. The bill was referred to the Committee on Small Business.
The Committee held a hearing on June 10, 2009, to examine
the challenges facing the full array of the SBA's capital
access programs. Witnesses at this hearing discussed various
deficiencies affecting the efficacy of these programs and
proposed steps that could be taken to better meet the SBA's
capital access mission.
On Thursday, July 23, 2009 the Small Business Committee,
Subcommittee on Finance and Tax held a hearing to examine
proposed legislative initiatives to address deficiencies in the
SBA's lending programs that had been identified by previous
hearings before the Committee.
On July 29, 2009, the Committee held an agency oversight
hearing that focused on a GAO examination of the SBA's Disaster
program. This hearing reviewed the agency's progress in making
improvements post-Katrina and made recommendations for
improvements.
On Thursday, October 8, 2009, the Small Business Committee,
Subcommittee on Finance and Tax held a markup of H.R. 3743.
This bill was reported to the full Committee by voice vote with
no amendments.
On November 6, 2009, the House considered H.R. 3743 and
passed the bill by voice vote.
On November 9, 2009, the bill was received in the Senate,
read twice, and referred to the Committee on Small Business and
Entrepreneurship.
No further action was taken on this legislation in the
111th Congress.
SMALL BUSINESS FINANCING AND INVESTMENT ACT OF 2009
(H.R. 3854)
Summary
The Small Business Financing and Investment Act of 2009
extends through fiscal year 2011 the federal government's
primary small business lending and investment programs. In
doing so, the legislation makes key reforms to these programs
that are intended to improve the flow of capital to small firms
amidst one of the worst economic downturns in decades. The
legislation also establishes two new programs that are intended
to fill the gaps in the SBA's existing array of capital access
programs, particularly in the provision of capital to early-
stage small businesses in capital-intensive industries and for
small firms whose access to capital is limited by the cost of
financing.
Legislative history
H.R. 3854 was introduced by Rep. Schrader on October 20,
2009. Original cosponsors included Committee Chairwoman
Velazquez and Reps. Halverson and Kirkpatrick. The bill was
referred to the Committee on Small Business.
In the 111th Congress, the Committee on Small Business held
six hearings to examine the issue of small business access to
capital, the SBA's capital access programs, and related
legislation.
On March 26, 2009, the Small Business Committee,
Subcommittee on Oversight and Investigations held a hearing to
examine issues related to investment in small businesses, with
particular emphasis on how prevailing economic conditions have
affected investment in small firms. Witnesses in this hearing
explained how the current recession has aggravated the need for
investment funds, particularly for equity investing in small
firms, and how new federal initiatives could allay those needs.
Additionally, this hearing explored numerous setbacks to the
SBA's investment programs that had dramatically reduced the
amount of investment in early stage and startup businesses and
had inhibited the flow of venture capital to small businesses
in general.
The full Committee subsequently held a hearing on June 10,
2009, to examine the challenges facing the full array of the
SBA's capital access programs. The Committee received testimony
on issues facing the 7(a), Certified Development Company (CDC),
Small Business Investment Company (SBIC), New Markets Venture
Capital (NMVC), 7(m)/Microloan, and Renewable Fuels Capital
Investment (RFCI) Company programs. Witnesses at this hearing
discussed various deficiencies in these programs and proposed
steps that could be taken to better meet the SBA's capital
access mission.
The Small Business Committee, Subcommittee on Regulations
and Healthcare held a hearing on June 22, 2009 to discuss the
financial challenges that solo and small group health practices
face in adopting health information technology (HIT). In
particular, witnesses provided testimony on the dislocations
between capital costs and returns on investment that discourage
greater uptake of HIT assets by small health providers.
On July 23, 2009 the Small Business Committee, Subcommittee
on Finance and Tax held a hearing to examine proposed
legislative initiatives to address deficiencies in the SBA's
lending and investment programs that had been identified during
previous hearings. Witnesses at this hearing discussed several
legislative proposals that would make a number of important
reforms to the SBA's existing programs and establish new
programs that will help close the gap for equity investment
that was left when the SBA's investing programs were curtailed.
On Thursday, October 8, 2009, the Small Business Committee,
Subcommittee on Finance and Tax held a markup of legislation
affecting the SBA's capital access programs, including the
7(a), CDC, Microloan, SBIC, NMVC, and Disaster loan programs.
These bills would also establish a new lending program to
provide reduced cost capital to small medical practices that
purchase health information technology and new equity investing
program under the SBA. These bills were reported to the full
Committee by voice vote with no amendments.
The full Committee subsequently held a hearing on October
14, 2009, to review proposed legislation to address
deficiencies in the SBA's lending and investment programs that
had been identified by previous hearings before the Committee.
Witnesses at this hearing expressed their support for several
legislative proposals to reform the SBA's existing programs and
establish new programs to help close the gap for equity
investment.
The Committee on Small Business met in open session on
October 21, 2009 and ordered H.R. 3854 reported to the House by
voice vote. No amendments were offered during the markup.
On October 29, 2009, the House considered H.R. 3854 and
passed the bill by a vote of 389 to 32. The underlying bill
text was modified pursuant to a self-executing rule. Sixteen
amendments were made in order and fifteen were approved, while
one was withdrawn.
On November 2, 2009, the bill was received in the Senate,
read twice, and referred to the Committee on Small Business and
Entrepreneurship.
No further action was taken on this legislation in the
111th Congress.
TEMPORARY EXTENSION ACT OF 2010
(H.R. 4691)
Summary
H.R. 4691 extended several expiring federal programs,
including the small business loan guarantee program established
under the American Recovery and Reinvestment Act, which was
reauthorized through March 28, 2010 by this legislation.
Legislative history
H.R. 4691 was introduced by Chairman Rangel on February 25,
2010 and cosponsored by Reps. Conyers, Waxman, Miller, and
Oberstar. The bill was referred to the Committee on Ways and
Means, and in addition to the Committees on Energy and
Commerce, Education and Labor, Transportation and
Infrastructure, Financial Services, Small Business, the
Judiciary, and the Budget, for a period to be subsequently
determined by the Speaker, in each case for consideration of
such provisions as fall within the jurisdiction of the
committee concerned.
On February 25, 2010, the House considered the legislation
under suspension of the rules and it was passed by voice vote.
On February 25, 2010, H.R. 4691 was received in the Senate.
The Senate passed the legislation by a vote of 78 to 19 on
March 2, 2010. On March 2, 2010, the legislation was signed by
the President and became Public Law 111-144.
TO PERMIT THE USE OF PREVIOUSLY APPROPRIATED FUNDS TO EXTEND THE SMALL
BUSINESS LOAN GUARANTEE PROGRAM, AND FOR OTHER PURPOSES.
(H.R. 4938)
Summary
H.R. 4938 makes up to $40 million of funds appropriated for
the business loan program of the Small Business Administration
(SBA) under the Consolidated Appropriations Act, 2010 available
for small business loan fee reductions and eliminations and the
cost of guaranteed loans authorized under the American Recovery
and Reinvestment Act of 2009 (ARRA).
The legislation also amends ARRA to extend from March 28,
2010, through April 30, 2010, the authority of the SBA to
guarantee up to 90 percent of qualifying small business loans
made by eligible lenders under the Small Business Act or the
Small Business Investment Act of 1958.
Legislative history
H.R. 4938 was introduced by Rep. Serrano on March 25, 2010.
The bill was referred to the Committee on Small Business.
On March 25, 2010, the House considered the legislation
under suspension of the rules and it was passed by voice vote.
On March 25, 2010, H.R. 4938 was received in the Senate and
it was passed by Unanimous Consent. On March 26, 2010, the
legislation was signed by the President and became Public Law
111-150.
SMALL BUSINESS JOBS AND CREDIT ACT OF 2010
(H.R. 5297)
Summary
H.R. 5297 makes several changes to SBA's access to capital
and contracting programs. This includes provisions increasing
the size of 7(a), 504/CDC, and Microloans. In addition,
provisions were included regarding the Secondary Market
program, the Surety Bond program, the New Markets Venture
Capital program and the Office of International Trade, where a
new state export assistance program and a rural export
promotion initiative were established. In addition, the floor
plan financing program was extended.
Significant changes were made to small business procurement
initiatives. This includes the establishment of a framework to
reduce contract bundling, the creation of a multiple award set-
aside program for small businesses, the repeal of the Small
Business Competitive Demonstration program, and the
establishment of parity of SBA's contracting programs. In
addition, changes are made to subcontracting requirements and
the OMB is required to report on opportunities for
micropurchase opportunities for small businesses.
The legislation also provides the Office of Advocacy with a
separate budget line item, sets up a small business size
standard certification process, makes changes to Small Business
Development Center grants, and permits the SBA loans to be made
for businesses impacted by aquaculture disasters.
In addition to provisions related to SBA, the legislation
also established in the Treasury the Small Business Lending
Fund, administered by the Secretary of the Treasury to cover
purchases of preferred stock and other financial instruments
from eligible institutions. It also creates a State Small
Business Credit Initiative, administered by the Secretary to
allocate federal funds to participating states with capital
access programs. Finally, the legislation included several tax
provisions targeted at small firms.
Legislative history
H.R. 5297 was introduced by Rep. Frank on May 13, 2010. The
bill was referred to the Committee on Financial Services.
On May 27, 2010, the Committee on Financial Services
reported the legislation by a vote of 42 to 23. The legislation
passed the House on June 17, 2010 by a vote of 241 to 182. The
Senate received the legislation on June 18, 2010 and the Senate
began consideration of the legislation and a substitute
amendment to it on July 19, 2010. On September 16, 2010, H.R.
5297, as amended, passed the Senate by a vote of 61 to 38. On
September 23, 2010, the House passed the Senate version of H.R.
5297 by a vote of 237 to 187.
On September 27, 2010, the legislation was signed by the
President and became Public Law 111-240.
LEGISLATION TO TEMPORARILY EXTEND THE PROGRAMS OF THE SMALL BUSINESS
ADMINISTRATION
TO PROVIDE FOR AN ADDITIONAL TEMPORARY EXTENSION OF PROGRAMS UNDER THE
SMALL BUSINESS ACT AND THE SMALL BUSINESS INVESTMENT ACT OF 1958
(H.R. 1541)
Summary
H.R. 1541 extended the programs authorized under the Small
Business Act and the Small Business Investment Act of 1958
through July 31, 2009.
Legislative history
H.R. 1541 was introduced by Chairwoman Nydia Velazquez on
March 17, 2009. Original Cosponsors included the following
Committee members: Rep. Sestak; Rep. Dahlkemper; and Rep.
Griffith. The bill was referred to the Committee on Small
Business.
On March 17, 2009, the House considered H.R. 1541 under
suspension of the rules and was passed by voice vote.
On March 17, 2009, H.R. 1541 was received in the Senate and
was passed by unanimous consent. On March 20, 2009, the
legislation was signed by the President and became Public Law
111-10.
TO PROVIDE FOR AN ADDITIONAL TEMPORARY EXTENSION OF PROGRAMS UNDER THE
SMALL BUSINESS ACT AND THE SMALL BUSINESS INVESTMENT ACT OF 1958
(S. 1513)
Summary
S. 1513 extended the programs authorized under the Small
Business Act and the Small Business Investment Act of 1958
through September 30, 2009.
Legislative history
S. 1513 was introduced by Senator Landrieu and passed the
Senate on July 24, 2009.
On July 29, 2009, the House considered S. 1513 under
suspension of the rules and was passed by voice vote.
On July 31, 2009, the legislation was signed by the
President and became Public Law 111-43.
TO PROVIDE FOR AN ADDITIONAL TEMPORARY EXTENSION OF PROGRAMS UNDER THE
SMALL BUSINESS ACT AND THE SMALL BUSINESS INVESTMENT ACT OF 1958
(H.R. 3614)
Summary
H.R. 3614 extended the programs authorized under the Small
Business Act and the Small Business Investment Act of 1958
through October 31, 2009.
Legislative history
H.R. 3614 was introduced by Chairwoman Nydia Velazquez on
September 22, 2009. The bill was referred to the Committee on
Small Business.
On September 23, 2009, the House considered H.R. 3614 and
it was passed by a recorded vote of 417 to 2.
On September 25, 2009, the Senate amended H.R. 3614 and it
was passed by unanimous consent. On September 29, 2009, the
House concurred to the Senate amendment. On September 30, 2009,
the legislation was signed by the President and became Public
Law 111-66.
TO PROVIDE FOR AN ADDITIONAL TEMPORARY EXTENSION OF PROGRAMS UNDER THE
SMALL BUSINESS ACT AND THE SMALL BUSINESS INVESTMENT ACT OF 1958
(S. 1929)
Summary
S. 1929 extended the programs authorized under the Small
Business Act and the Small Business Investment Act of 1958
through January 31, 2010.
Legislative history
S. 1929 was introduced by Senator Landrieu and passed the
Senate on October 26, 2009.
On October 28, 2009, the House considered S. 1929 under
suspension of the rules and was passed, as amended, by voice
vote.
On October 29, 2009, the Senate agreed to the House
amendments by Unanimous Consent.
On October 30, 2009, the legislation was signed by the
President and became Public Law 111-89.
TO PROVIDE FOR AN ADDITIONAL TEMPORARY EXTENSION OF PROGRAMS UNDER THE
SMALL BUSINESS ACT AND THE SMALL BUSINESS INVESTMENT ACT OF 1958
(H.R. 4508)
Summary
H.R. 4508 extended the programs authorized under the Small
Business Act and the Small Business Investment Act of 1958
through April 30, 2010.
Legislative history
H.R. 4508 was introduced by Chairwoman Nydia Velazquez on
January 26, 2010. The bill was referred to the Committee on
Small Business.
On January 27, 2010, the House considered H.R. 4508 under
suspension of the rules and was passed by voice vote.
On January 28, 2010, H.R. 4508 was received in the Senate
and was passed by unanimous consent. On January 29, 2010, the
legislation was signed by the President and became Public Law
111-136.
TO PROVIDE FOR AN ADDITIONAL TEMPORARY EXTENSION OF PROGRAMS UNDER THE
SMALL BUSINESS ACT AND THE SMALL BUSINESS INVESTMENT ACT OF 1958
(S. 3253)
Summary
S. 3253 extended the programs authorized under the Small
Business Act and the Small Business Investment Act of 1958
through July 31, 2010.
Legislative history
S. 3253 was introduced by Senator Landrieu and passed the
Senate on April 22, 2010.
On April 27, 2010, the House considered S. 3253 under
suspension of the rules and was passed by voice vote.
On April 30, 2010, the legislation was signed by the
President and became Public Law 111-162.
TO PROVIDE FOR AN ADDITIONAL TEMPORARY EXTENSION OF PROGRAMS UNDER THE
SMALL BUSINESS ACT AND THE SMALL BUSINESS INVESTMENT ACT OF 1958
(H.R. 5849)
Summary
H.R. 5849 extended the programs authorized under the Small
Business Act and the Small Business Investment Act of 1958
through September 30, 2010.
Legislative history
H.R. 5849 was introduced by Chairwoman Nydia Velazquez on
July 27, 2010. The bill was referred to the Committee on Small
Business.
On July 27, 2010, the House considered H.R. 5849 under
suspension of the rules and was passed by voice vote.
On July 28, 2010, H.R. 5849 was received in the Senate and
was passed by unanimous consent. On July 30, 2010, the
legislation was signed by the President and became Public Law
111-214.
TO PROVIDE FOR AN ADDITIONAL TEMPORARY EXTENSION OF PROGRAMS UNDER THE
SMALL BUSINESS ACT AND THE SMALL BUSINESS INVESTMENT ACT OF 1958
(S. 3839)
Summary
S. 3839 extended the programs authorized under the Small
Business Act and the Small Business Investment Act of 1958
through January 31, 2010.
Legislative history
S. 3839 was introduced by Senator Landrieu and passed the
Senate on September 24, 2010.
On September 28, 2010, the House considered S. 3839 under
suspension of the rules and was passed by voice vote.
On September 30, 2010, the legislation was signed by the
President and became Public Law 111-251.
Full Committee
Oversight Activities
HEALTH CARE REFORM IN A STRUGGLING ECONOMY: WHAT'S ON THE HORIZON FOR
SMALL BUSINESS?
On February 4, 2009, the House Committee on Small Business
held a hearing entitled ``Health Care Reform in a Struggling
Economy: What's on the Horizon for Small Business?'' The
Committee discussed the challenge of offering health insurance
coverage for small businesses. Particular attention was given
to the leading health reform proposals under consideration by
Congress, and the opportunities health reform may offer small
firms and their workers. Testimony was offered by Alissa Fox,
Senior Vice President, Office of Policy and Representation for
the BlueCross BlueShield Association; Tom Haynes, Executive
Director of the CocaCola Bottlers' Association; Dan Ratner on
behalf of the National Retail Federation; Janette Davis, CPA,
on behalf of the U.S. Women's Chamber of Commerce; Michael
Beene on behalf of the National Association for the Self-
Employed; and Mr. Dirck Clark of Heartland Regional Medical
Center.
THE STATE OF SBA'S ENTREPRENEURIAL DEVELOPMENT PROGRAMS AND THEIR ROLE
IN PROMOTING ECONOMIC RECOVERY
The Committee on Small Business held a hearing on February
11, 2009 to examine entrepreneurial needs arising from the
economic downturn. This included a review of the SBA's
entrepreneurial development (ED) programs and proposals to
modernize these initiatives. Small business representatives and
industry experts recommended policy changes to the agency's ED
programs.
DROP IN RETIREMENT SAVINGS: THE CHALLENGES SMALL BUSINESSES FACE
FUNDING AND MAINTAINING RETIREMENT PLANS IN A STRUGGLING ECONOMY
On February 25, 2009, the Committee examined the impact the
recession and drop in stock market had on small businesses'
ability to fund pension and other retirement benefits.
Retirement benefits provide both future financial security for
business owners and employees, but also allow small business
owners the ability to attract and retain talented individuals
as their businesses grow. However, with the steep decline in
the stock market an estimated $2 trillion in retirement savings
were lost over the past 2 years. Small businesses that have
defined benefit plans have fiduciary obligations with respect
to funding their plans that are increasingly harder to meet.
Employees and small businesses that are in defined contribution
plans were being forced to take distributions from depleted
accounts.
Witnesses included Stephen Dobrow of Primark Benefits,
Jason Speer, owner of Quality Float Works, Andrew Keeler, a
certified financial planner with Everhart Financial Group, and
Catherine Collinson of Transamerica Center for Retirement
Studies. The witnesses highlighted how the recession has
impacted their industry, and potential policy changes to aid
small businesses and their employees that are experiencing
hardship as a result of the recession.
THE STATE OF THE RENEWABLE FUELS INDUSTRY IN THE CURRENT ECONOMY
On March 4, 2009 the Committee held a hearing entitled:
``The State of the Renewable Fuels Industry in the Current
Economy.'' The Committee heard testimony from witnesses who
discussed the state of the renewable fuels industry in light of
current economic conditions.
The hearing focused on access to capital issues, the effect
of volatile energy prices, and how the overall downturn is
affecting the renewable fuels industry. This forum also
examined current policies promoting renewable and next
generation fuels, including those in the 2008 Farm Bill. It
enabled the Committee to consider future policies that will
further develop the industry's future during these times of
uncertainty. The Committee also heard testimony from small
renewable fuels producers and related industries about how they
are adjusting during a period of economic instability.
Witnesses included: Mr. Nathan Kimpel, President and Chief
Operating Officer, New Energy Corp.; Mr. John Howe, Vice
President of Public Affairs, Verenium Corporation; Mr. Manning
Feraci, Vice President of Federal Affairs, National Biodiesel
Board; Mr. Ron Litterer, Chairman, National Corn Growers
Association; Mr. Brooks Hurst, Member of the Board of
Directors, The Paseo-Cargill Biofuels Plant, on Behalf of the
Missouri Soybean Association.
THE PRESIDENT'S FY 2010 BUDGET AND MEDICARE: HOW WILL SMALL PROVIDERS
BE IMPACTED?
On March 18, 2009, the Committee on Small Business held a
hearing entitled ``The President's Budget and Medicare: How
Will Small Providers Be Impacted?'' The Committee examined
Medicare policy within the President's budget outline for FY
2010. The purpose of the hearing was to consider the
Administration's proposed changes to Medicare, and the
implications it presents for small medical practices and
medical facilities. Witness testimony was offered by Dr.
Jeffrey P. Harris on behalf of the American College of
Physicians; Dr. Joseph M. Heyman on behalf of the American
Medical Association; Dr. John T. Preskitt on behalf of the
American College of Surgeons; Mr. Edward J. Hannon on behalf of
the American Hospital Association; and Robert E. Moffit Ph.D.
on behalf of the Heritage Foundation.
HEARING ON WASTE, FRAUD, AND ABUSE PURSUANT TO HOUSE RULE XI
The Committee held a hearing on March 25, 2009 to assess
the extent of the fraud and management problems in the SBA's
Historically Underutilized Business Zone Empowerment
Contracting (HUBZone) program and whether or not the agency
implemented GAO recommendations from 2008 regarding these
problems. In addition, GAO reviewed its findings regarding the
``credit elsewhere'' requirement of the Small Business
Administration's (SBA) 7(a) loan program. GAO's Managing
Director of Forensic Audits and Special Investigations, Greg
Kutz, testified on GAO's findings of the expanded fraud
investigation the Committee requested in 2008. Bill Shear,
Director of Financial Markets and Community Investment at GAO,
provided a progress report on the recommendations GAO made in
2008 to strengthen the operation of the HUBZone program and
also reviewed GAO's findings on the ``credit elsewhere'' as it
is applied to 7(a) loans. The SBA testified about their
progress in resolving problems uncovered in these programs.
IRS OVERSIGHT: SMALL BUSINESS CONCERNS WITH THE IRS
On April 1, 2009, the Commissioner of the IRS, Douglas
Shulman, testified before the Committee on a wide range of
small business tax issues. For many small businesses, one of
the largest impediments to growth is the complexity of the tax
code and the administrative burdens associated with meeting
their tax obligations. The hearing explored the IRS's efforts
were taking to make it as easy as possible for small businesses
to comply with the tax code and also how the IRS plans to
outreach to small businesses so that the IRS can understand the
needs and concerns of small businesses. Additionally, as the
nation's collector and distributor of tax revenue, the IRS will
play a critical role in the stimulus. The hearing allowed
members of the Committee to ascertain whether the IRS was
properly staffed to process the millions of dollars in refunds
and tax credits owed to small businesses. After the hearing,
the Committee sent a letter to the IRS detailing small business
concerns and the Commissioner responded via letter and assured
the Committee it will work closely with the Chair regarding all
small business tax issues.
THE IMPORTANCE OF TECHNOLOGY IN AN ECONOMIC RECOVERY
On April 22, 2009 the Committee on Small Business convened
a hearing to provide an overview of the SBIR program and to
highlight its role in advancing innovation and creating jobs.
Program managers from Federal government agencies and
representatives of small firms testified about the public-
private partnerships that SBIR awards facilitate.
CLIMATE CHANGE SOLUTIONS FOR SMALL BUSINESSES AND FAMILY FARMERS
On April 29, 2009 the Committee on Small Business held a
hearing entitled: ``Climate Change Solutions for Small
Businesses and Family Farmers.'' The Committee heard testimony
from Mr. Fred Yoder, Past President, National Corn Growers
Association, from Plain City, Ohio; Mr. Robert McNamara,
President, F.J.A. Christiansen Roofing Co., Inc., in Milwaukee,
WI representing the National Roofing Contractors Association;
Mr. Roger Johnson, President, National Farmers Union; Mr.
Gordon P. Sharp, Chairman, Aircuity, Inc. in Newton, MA; and
Mr. Lawrence W. Kavanagh, Vice President, Environment &
Technology representing the American Iron and Steel Institute.
This hearing provided a critical forum when the House
considered climate change legislation, as small businesses and
family farmers will have a critical role in future energy
policy solutions. The hearing examined the potential
opportunities reforms present and ensured the needs of small
businesses are addressed in crafting measures. The hearing was
also an opportunity for panelists to discuss existing industry
practices as well as policy solutions that can reduce
greenhouse gas emissions while maintaining a strong economy.
The Committee also heard testimony about voluntary and
cooperative efforts.
Following the hearing, the Chairwoman sent a letter
outlining small business and agriculture issues that should be
addressed during House consideration of energy legislation.
LEGISLATION TO REAUTHORIZE AND MODERNIZE SBA'S ENTREPRENEURIAL
DEVELOPMENT PROGRAMS
On May 6, 2009 the Committee held a hearing to examine
legislation to reauthorize and modernize SBA's Entrepreneurial
Development (ED) Programs. The legislation extended the scope
and modified the delivery of business development services for
SBA's ED programs. In particular, the Committee considered the
legislation's role in stabilizing and strengthening small
businesses during the current period of economic weaknesses.
Small business representatives provided testimony at the
hearing.
THE ROLE OF SMALL BUSINESS SUPPLIERS AND MANUFACTURERS IN THE DOMESTIC
AUTO INDUSTRY
On May 13, 2009, the Committee held a hearing to examine
the role that small business suppliers and manufacturers play
in supporting the domestic auto industry. The hearing focused
on the prevailing conditions in the domestic automobile
industry in the wake of the 2008 recession and resulting
bankruptcies of General Motors and Chrysler. The hearing
examined the implications of these events for small businesses
throughout the U.S., with particular emphasis on how small
manufacturers and third-tier auto part suppliers have been
affected. Witnesses also discussed the importance of the
domestic automotive industry to the small business economy and
the role that the federal government should play in helping
stabilize this sector of the economy in order to facilitate the
wider recovery of the economy. The Committee received testimony
from the Association for Manufacturing Technology, the Motor
and Equipment Manufacturers Association, the National Tooling
and Machining Association, the Precision Metalforming
Association, National Association of Surface Finishers and the
American Foundry Society.
HEROES OF SMALL BUSINESS
On May 20, 2009, the Committee held a hearing entitled
``Heroes of Small Business.'' Entrepreneurs from across the
country testified on their small business success stories. The
Committee examined the important contributions these firms make
creating jobs, growing the economy and strengthening local
communities.
COMMON GROUND: FINDING CONSENSUS ON HEALTH REFORM, THE SMALL BUSINESS
PERSPECTIVE
On June 3, 2009, the Committee on Small Business held a
hearing entitled ``Common Ground: Finding Consensus on Health
Reform, the Small Business Perspective.'' The Committee
examined the health reform debate giving particular attention
to those issues impacting the small business community.
Witnesses were asked to provide their views on health reform,
and where they see opportunities for legislative consensus.
Testimony was offered by Jim Wordsworth on behalf of the United
States Chamber of Commerce; John Nicholson on behalf of the
National Federation of Independent Business; Ms. Joan M.
Burkholder on behalf of the United States Women's Chamber of
Commerce; Freddy Castiblanco on behalf of the Main Street
Alliance; and Mr. Bradley Thompson II on behalf of the Printing
Industries of America.
LAYING THE GROUNDWORK FOR ECONOMIC RECOVERY: EXPANDING SMALL BUSINESS
ACCESS TO CAPITAL
On June 10, 2009, the Committee held a hearing to conduct
oversight of the Small Business Administration's (SBA)
financing programs. Specifically, this hearing explored the
challenges facing the SBA's Capital Access programs, including
the 7(a) loan program, the Certified Development Company
program (``CDC'' or ``504''), the 7(m) loan program
(``Microloan''), the Small Business Investment Company program
(``SBIC''), the New Markets Venture Capital program (``NMVC''),
and the Renewable Fuels Capital Investment program (``RFCI'').
More specifically, this hearing set the groundwork for
legislative actions necessary to modernize these programs and
better achieve the mission of providing small businesses with
access to capital for economic recovery. The Committee received
testimony from the Independent Community Bankers of America;
the National Association of Development Companies; the Credit
Union National Association; the National Association of Small
Business Investment Companies; the American Bankers
Association; the Biotechnology Industry Organization, the
International Franchise Association; the Associated Equipment
Distributors; and the National Marine Manufacturers
Association.
LEGISLATIVE INITIATIVES TO STRENGTHEN AND MODERNIZE THE SBIR AND STTR
PROGRAMS
On June 17, 2009 the Committee on Small Business convened a
hearing to examine legislative proposals to improve the SBIR
and STTR programs. At this hearing, the Committee heard
testimony from small businesses and industry experts on how
these proposals will affect small businesses' ability to
advance research and development.
THE LOOMING CHALLENGE FOR SMALL MEDICAL PRACTICES: THE PROJECTED
PHYSICIAN SHORTAGE AND HOW HEALTHCARE REFORMS CAN ADDRESS THE PROBLEM
On July 8, 2009, the Committee on Small Business held a
hearing entitled ``The Looming Challenge for Small Medical
Practices: The Projected Physician Shortage and How Health Care
Reforms Can Address the Problem.'' The Committee discussed the
issue of physician supply and the future of small medical
practices. Specifically, witnesses offered their views
regarding the projected physician workforce shortage,
strategies to address the problem, and how current trends have
influenced care in rural and underserved areas. Testimony was
provided by Dr. Robert E. Harbaugh, on behalf of the American
Association of Neurological Surgeons/ Congress of Neurological
Surgeons; Dr. George F. Sheldon on Behalf of the American
College of Surgeons; Dr. Carlo J. Demarco American Osteopathic
Association; Dr. Lori Heim on behalf of the American Academy of
Family Physicians; and Dr. Bruce A. Kauk of Northland Internal
Medicine located in Gladstone, Missouri.
ECONOMIC RECOVERY: TAX STIMULUS ITEMS THAT BENEFITTED SMALL BUSINESS
WITH A LOOK AHEAD
On July 15, 2009, the Committee held a hearing analyzing
the tax provisions contained in the stimulus package that
benefitted small businesses during the recession and what more
needs to take place to revive our economy. Realizing the
economic situation our country was facing early in the year,
Congress passed the American Recovery and Reinvestment Act of
2009 (ARRA) to jumpstart the economy. ARRA contained a variety
of tax rebates, credits, deductions, and other incentives
directly targeted at small businesses. The hearing focused on
whether small businesses had utilized these provisions. The
National Association of Realtors commented that housing sales
increased as a result of the first-time home buyer's tax
credit. The Air Conditioning Contractors Association of America
noted that 75% of their members had witnessed increased sales
as a result of the non-business energy tax credits for air
conditioners, and other home heating equipment. The Independent
Community Bankers Association and Association of Manufacturing
Technologies emphasized that the extension of the Net Operating
Loss provision provided their members an infusion of cash
especially at a time when access to credit is severely limited.
All witnesses on the panel emphasized to the Committee that
their businesses were still hurting. They suggested extensions
of some of the current tax provisions, such as the section 179
expensing provisions and an increased home buyer's tax credit,
while doing as much as possible to increase lending.
MEETING THE NEEDS OF SMALL BUSINESSES AND FAMILY FARMERS IN REGULATING
OUR NATION'S WATERS
On July 22, 2009 the Committee on Small Business held a
hearing entitled ``Meeting the Needs of Small Businesses and
Family Farmers in Regulating our Nation's Waters.'' The
nation's waterways play a critical role in all acts of
commerce, especially when it comes to small businesses and
agriculture. Not only are waters used to transport goods, but
there are many waters that are used or affected in the daily
operations of small businesses in a wide variety of industries.
The Committee took the opportunity to evaluate the
regulatory framework for our nation's waters and the concerns
of small business and family farmers. The Committee listened to
farmers and small businesses on ways to ensure that the federal
regulation of waterways meets the needs of our environment and
economy. These small firms are directly affected by the
coordination between federal, state and local governments in
how these waters and relevant business activities are
regulated.
Testifying were members of the agriculture sector, and
construction trade groups. Those presenting statements
included: Mr. Charlie Kruse, President, Missouri Farm Bureau,
on behalf of American Farm Bureau Federation; Mr. Trey Pebley,
McAllen Construction Inc., on behalf of Associated General
Contractors; Mr. Jim Chilton, on behalf of Arizona Cattle
Growers Association, Arizona Public Lands Council, and National
Cattlemen's Beef Association; Mr. Lyle Schellenberg, President,
Armadillo Underground, on behalf of National Utility
Contractors Association; and Mr. Bob Gray, Executive Director,
Northeast Dairy Farmers Cooperatives.
HEARING ON WASTE, FRAUD, AND ABUSE PURSUANT TO HOUSE RULE XI
On July 29, 2009, the Committee held a hearing to fulfill
its mandate of performing Quarterly Congressional Oversight of
the SBA. The purpose of the hearing was to review the SBA's
progress in addressing identified deficiencies in its various
programs. Specifically, however, this hearing focused on the
SBA's progress in implementing legislative reforms to its
Disaster Assistance program and the HUBZone program. The
Committee received testimony from the SBA Administrator as well
as from the Government Accountability Office.
THE CHALLENGES OF THE 2009-H1N1 INFLUENZA AND ITS POTENTIAL IMPACT ON
SMALL BUSINESSES AND HEALTHCARE PROVIDERS
On September 9, 2009, the Committee on Small Business held
a hearing entitled ``The Challenges of the 2009-H1N1 Influenza
and its Potential Impact on Small Businesses and Healthcare
Provider.'' The hearing examined (1) the preparation of small
business for H1N1 Influenza, (2) the financial impact a
pandemic would have on small business, (3) the stress the 2009-
H1N1 outbreak could place on small medical practices, and (4)
the response of the federal government.
Testimony was provided by Rear Admiral Anne Schuchat, MD,
Assistant Surgeon General for the United States Public Health
Service and Director of the National Center for Immunization
and Respiratory Diseases (NCIRD) for the Department of Health
and Human Services; Dr. Rebecca Blank, Under Secretary of
Commerce for Economic Affairs for the U.S. Department of
Commerce; Mr. Bridger McGaw, Acting Assistant Secretary for the
Private Sector for the Department of Homeland Security; Mr.
Anthony Demangone on behalf of the National Association of
Federal Credit Unions; Dr. Jim King on behalf of the American
Academy of Family Physicians; Mr. Harold Jackson on behalf of
the U.S. Chamber of Commerce; Dr. David T. Tayloe on behalf of
the American Academy of Pediatrics; and Ms. Chris Chinn on
behalf of the American Farm Bureau Federation.
THE IMPACT OF FINANCIAL REGULATORY RESTRUCTURING ON SMALL BUSINESSES
AND COMMUNITY LENDERS
On September 23, 2009, the Committee on Small Business held
a hearing on the effect of financial regulatory restructuring
on small businesses and community lenders. This hearing
examined how proposed changes to the structure and powers of
federal financial services regulators will impact smaller
firms. The Committee heard testimony from two panels of
witnesses. The first panel included business owners and
representatives from trade associations. The second panel was
comprised of banks, credit unions, and a broker/dealer.
EXPIRING TAX INCENTIVES: EXAMINING THEIR IMPORTANCE FOR SMALL
BUSINESSES ON THE ROAD TO AN ECONOMIC RECOVERY
On September 30, 2009, the Committee held a hearing
examining tax provisions that are due to expire at the end of
the year and their importance to small businesses. Commonly
known as ``tax extenders'', Congress on an annual or bi-annual
basis extends certain tax provisions that encourage business
investment, and promotes consumer spending. The hearing took on
increased importance since the economy had recently shown signs
of improvement. The witnesses stressed that to sustain that
momentum, Congress should extend these important tax
provisions.
Witnesses included representatives of the National Retail
Federation, National Restaurant Association, and the
International Franchise Association. These witnesses stressed
to the Committee that provisions such as the 15-year
depreciation schedule for retail and restaurant improvements
encourages businesses in their industry to upgrade and improve
their restaurants and stores. In addition, the Bio-diesel Board
testified that the Bio-diesel tax credit was essential for
their members to maintain production and create jobs. Finally,
the minority witness, Keith Hall, implored Congress to protect
small businesses from the harmful reach of the Alternative
Minimum Tax. All of these provisions are considered in the tax
extenders package. After the hearing, the Committee wrote a
letter to the respective tax writing Committees on House and
Senate detailing the need to extend these tax incentives.
THE STATE OF THE NATION'S HOUSING SECTOR: AN EXAMINATION OF THE FIRST
TIME BUYER'S CREDIT AND FUTURE POLICIES TO SUSTAIN A RECOVERY
On October 7, 2009, the Committee held a hearing entitled
``The State of the Nation's Housing Sector: An Examination of
the First Time Buyer's Credit and Future Policies to Sustain a
Recovery.'' The Committee examined the current state of the
nation's housing sector and the millions of small businesses
who operate in it. The hearing assessed the impact of the
first-time homebuyer tax credit and federal policies affecting
the real estate industry.
INCREASING ACCESS TO CAPITAL FOR SMALL BUSINESS
On October 14, 2009, the Committee held a hearing to review
proposed legislation to address deficiencies in the SBA's
lending and investment programs that had been identified by
previous hearings before the Committee. Witnesses at this
hearing expressed their support for several legislative
proposals to reform the SBA's existing programs and establish
new programs that will help close the gap for equity
investment. These proposals ultimately became the basis for
H.R. 3854, the Small Business Financing and Investment Act of
2009.
THE RECOVERY ACT AND BROADBAND: EVALUATION OF BROADBAND INVESTMENTS ON
SMALL BUSINESSES AND JOB CREATION
On October 28, 2009, the Committee held a hearing entitled
``The Recovery Act and Broadband: Evaluation of Broadband
Investments on Small Businesses and Job Creation.'' The
Committee heard testimony from government and industry
representatives on steps to advance broadband deployment and
adoption through American Recovery and Reinvestment Act of 2009
(ARRA) programs. Through this hearing, the Committee examined
the impact on small firms and the importance of these programs
in job creation.
SMALL BUSINESSES AND THE ESTATE TAX: IDENTIFYING REFORMS TO MEET THE
NEEDS OF SMALL FIRMS AND FAMILY FARMERS
On November 4, 2009, the Committee on Small Business held a
hearing regarding the estate tax and its impact on small
businesses. The hearing highlighted the concerns small
businesses have with the uncertainty surrounding the estate tax
regime. While the current exemption levels protect most small
businesses, the law faced expiration at the end of 2009, with
the estate tax being repealed in 2010, and then coming back in
2010 at exemption levels falling back to $1 million and a tax
rate of 55 percent.
Witnesses included a small grocer representing the Food
Marketing Institute, a representative from the National
Cattlemen's Beef Association, and a small printer representing
the Printing Industries Association. The witnesses detailed how
the complexity and uncertainty surrounding the estate has
increased operational costs for their respective businesses and
made planning nearly impossible. Further, the witnesses
detailed that the estate tax is especially burdensome for
capital intensive businesses such as family farms and those in
the printing industries. The witnesses stated that they fear
they may have to liquidate the business in order to pay the
estate tax assessment. The Committee assured the witnesses that
it will ensure that small businesses concerns are heard when
the estate tax debate begins.
HEARING ON WASTE, FRAUD, AND ABUSE PURSUANT TO HOUSE RULE XI
The Committee on Small Business held a hearing on November
19, 2009 that focused on the SBA's operation of the Service-
Disable Veteran-Owned Small Business (SDVOSB) procurement
program. Witnesses included SBA Administrator Karen Mills and
Greg Kutz, GAO's Managing Director of Special Investigations.
GAO testified regarding SBA's fraud prevention controls for the
SDVOSB program. It found that ten contracts were let to
ineligible firms. GAO also determined that over $100 million in
sole-source or restricted competition SDVOSB contracts and $300
million in other contracts went to those 10 ineligible firms.
GAO uncovered that one firm did not employ any service disabled
veteran and, in four cases, found that SBA had previously found
the firms ineligible after bid protests, but that the
contracting agencies had allowed the contracts to proceed. The
majority of the cases involved ineligible firms, including some
large and one foreign-owned firm, which used an SDVOSB ``front
company'' to ``pass-through'' the benefits of the contract.
CONDITION OF SMALL BUSINESS AND COMMERCIAL REAL ESTATE LENDING IN LOCAL
MARKETS
On February 26, 2010, the Committee on Small Business and
the Committee on Financial Services held a joint hearing
entitled, ``Condition of Small Business and Commercial Real
Estate Lending in Local Markets.'' The purpose of this hearing
was to examine the state of small business lending and the role
that this activity would play in the economic recovery.
Additionally, this hearing reviewed the current state and
potential risks in the commercial real estate (CRE) sector and
explored how it relates to the small business lending and real
estate sectors. The hearing was comprised of three panels of
witnesses, including small business representatives and CRE
professionals; federal regulators and agency officials; and
lenders and investment companies.
BUSINESS INCUBATORS AND THEIR ROLE IN JOB CREATION
On March 17, 2010, the Committee on Small Business held a
hearing entitled ``Business Incubators and Their Role in Job
Creation.'' The purpose of the hearing was to evaluate the
overall effectiveness of incubators in promoting small business
development and employment growth within the current economic
conditions. The hearing considered how these business
development facilities and programs can contribute to an
employment-focused economic recovery as well as current
obstacles to their effectiveness.
The Committee received testimony from policy experts in the
business incubation and small business fields. The President of
the National Business Incubation Association testified on the
critical tools these facilities provide to small firms,
particularly start-ups, as well as recommendations for
legislative initiatives to increase the effectiveness of
incubators across the country. A witness representing academia
provided the Committee with data demonstrating the impact of
business incubators on job creation. The Director of Research
and Policy at the Ewing Marion Kauffman Foundation highlighted
the role of incubators in providing the critical technical
assistance tools to promote entrepreneurship. The director of
an angel investment foundation testified on the importance of
venture funds linked with technical assistance to promote
sustainable start up enterprises. Finally, administrators of
two business incubators highlighted the role that these
facilities serve in promoting start-ups in their regions and
detailed critical needs facing these operations.
SMALL BUSINESS PARTICIPATION IN THE FEDERAL PROCUREMENT MARKETPLACE
On March 24, 2010, the Committee on Small Business held a
hearing on issues related to small business procurement, which
included oversight of the contracting programs of the Small
Business Administration (SBA). The focus of the hearing was on
small businesses' participation in the federal procurement
marketplace and what steps should be taken to modernize the
government's efforts in this area. The Committee examined
several issues, including the potential for small business
reforms to the Federal Acquisition Regulation (FAR) and the GSA
schedule, the need to expand small firms' access to multiple
award and multiple agency contracts, the adequacy of the
acquisition workforce, recent court challenges to SBA's
contracting programs, and contract bundling. Witnesses
represented small businesses from a wide range of industries
and demographics including veterans, women, aerospace,
engineering, and consulting.
ENTREPRENEURS AND TAX DAY: HOW THE IRS POLICIES AND PROCEDURES IMPACT
SMALL BUSINESSES
On April 14, 2010, the House Committee on Small Business
held a hearing entitled ``Entrepreneurs and Tax Day: How the
IRS Policies and Procedures Impact Small Businesses.'' The
Committee discussed the Internal Revenue Service's relationship
with small businesses and the agency's efforts to simplify the
tax code for small businesses. The hearing explored the
administrative burdens for small businesses regarding tax
compliance and examinations while examining strategies the IRS
could implement to aide small businesses. The hearing also
assessed small business outreach programs within the IRS with
special attention paid to the IRS's response to recent tax law
changes created by the Recovery Act. Specifically the hearing
focused on staffing and procedures the IRS implemented that
ensured effective administration of the Recovery Act. Committee
Members also evaluated how the National Research Program on
Employment Taxes will impact small businesses and steps the IRS
will take to reduce the administrative burdens associated with
the study. Testimony was offered by Douglas Shulman,
Commissioner of the Internal Revenue Service.
HEARING ON WASTE, FRAUD, AND ABUSE PURSUANT TO HOUSE RULE XI
On Wednesday April 21, 2010, the Committee held a hearing
to fulfill its mandate of performing Quarterly Congressional
Oversight of the SBA. The purpose of the hearing was to receive
the report of an audit conducted by the SBA's Office of the
Inspector General to determine whether Certified Development
Companies (CDCs) that participate in the Premier Certified
Lender (PCL) loan program exercised prudent underwriting
practices when making SBA loans and whether the compensation
practices of CDC executives were excessive, relative to the
gross receipts of CDCs. The results of this report found
widespread deficiencies within the PCL program and determined
that, in 4 out of 5 instances, PCLs were paying out excessive
executive compensation. Witnesses at this hearing included the
Administrator of the SBA and the SBA Inspector General.
EVALUATING THE IMPACT OF SMALL BUSINESS TRADE POLICY ON JOB CREATION
AND ECONOMIC GROWTH
On April 28, 2010, the Committee on Small Business held a
hearing entitled ``Evaluating the Impact of Small Business
Trade Policy on Job Creation and Economic Growth.'' The purpose
of the hearing was to examine the effect of international trade
policies on small firms' ability to stimulate economic growth.
The hearing considered the effectiveness of current trade
promotion programs designed for small businesses as well as
recommendations to ensure these resources contribute to an
employment-focused recovery.
The Committee received testimony from small business
industry representatives and international trade policy
experts. The President of the National Farmer's Union detailed
the importance of export promotion assistance to ensure the
continued global competitiveness of U.S. agricultural
producers. The President of TechAmerica highlighted the
contributions of small technology exporters to economic growth
and the critical role these businesses should serve in the
nation's recovery strategy. An economist with the Peterson
Institute for International Economics testified in support of
an expansion to lending and technical assistance to promote
U.S. exports as well as improvements to the effectiveness of
trade promotion programs targeted to small businesses. A small
manufacturing firm owner also detailed the importance of export
opportunities, particularly to maintain the enterprise's market
share and global competitiveness during a domestic economic
downturn.
TAX INITIATIVES THAT PROMOTE SMALL BUSINESS GROWTH
On May 5, 2010, the House Committee on Small Business held
a hearing entitled ``Tax Initiatives that Promote Small
Business Growth.'' The hearing examined tax policies that
support small business growth and job creation. In particular,
the Committee focused on expiring tax incentives created or
extended by the Recovery Act, such as favorable depreciation
and expensing schedules and energy tax credits. The hearing
also examined proposed tax incentives, such as increasing and
expanding tax rules related to expensing, business start up
costs and deductions for meals and entertainment. The purpose
of the hearing was to discuss the impact tax incentives have on
small business job creation and growth. The witnesses provided
testimony that they used many of the tax incentives for their
businesses and suggested that extensions and expansions of
these tax policies will further assist in the economic
recovery. Witness testimony was offered by Christopher J. Green
on behalf of the American Institute of Architects, Chad Collins
on behalf of the National Roofing Contractors Association; Dave
Koenig on behalf of the National Restaurant Association; Hugh
Joyce on behalf of the Air Conditioning Contractors of America;
and Curtis Dubay on behalf of the Heritage Foundation.
SMALL BUSINESSES AND BROADBAND: AN ENGINE FOR ECONOMIC GROWTH AND JOB
CREATION
On May 12, 2010, the Committee held a hearing entitled
``Small Businesses and Broadband: An Engine for Economic Growth
and Job Creation.'' The Committee heard testimony from Mr. Evan
Burfield, Chairman & CEO, Synteractive Corporation; Mr. Steve
Messere, Founder & CEO, Revenue Spark Inc.; Mr. Greg Whisenant,
Founder & CEO, CrimeReports; Mr. Tom McDonald, CEO, BeSafe
Technologies; and Ms. Lindsay Dofelmier, Co-Owner, Urban Agent
Team LLC. The hearing examined the transformative effect that
innovative broadband applications and services have on small
businesses. During this hearing, the Committee heard from small
businesses on how broadband is helping to expand their
business, grow the economy and create new jobs.
HEROES OF SMALL BUSINESS
The Committee held a hearing on May 26, 2010, entitled,
``Heroes of Small Business.'' Entrepreneurs from across the
country testified on how they have achieved success. The
Committee examined how these firms have created jobs and
supported their local communities.
RECOVERY IN THE GULF: WHAT THE $20 BILLION BP CLAIMS FUND MEANS FOR
SMALL BUSINESSES
On June 30, 2010 the Committee held a hearing to evaluate
the BP Gulf Spill Independent Claims fund established by BP to
assist businesses and individuals affected by the Deepwater
Horizon oil spill. The Committee heard testimony from Kenneth
Feinberg, who was the Independent Administrator of the trust
fund.
The Committee found that some businesses were complaining
that they have not even received the initial advanced payments
of $5,000 while others were complaining that BP is losing
documentation supporting claims. In addition, although BP had
made payments to many individuals and small businesses of the
initial advanced disbursement, increasing numbers of small
businesses were facing longer periods without compensation.
Most of the early payments received by entrepreneurs and
small businesses had been limited to one month's worth of lost
wages and income or lost net profits, which businesses claimed
was minimal compared to the lost sales of the business
especially during peak fishing and tourism season. Some small
firms and self-employed fishermen were still waiting to receive
their larger claim payments with many starting to question if
they could stay in business while they awaited payment.
BP continually stated its commitment to ensuring businesses
continue to operate and keep employees working but many local
businesses found the minimal advance payment inadequate to
cover current operating costs and payrolls. As of early June
2010--before the hearing occurred--only about 10 percent of
small businesses had received payments from BP with only a
handful of larger claims paid in Louisiana.
BONUS DEPRECIATION: WHAT IT MEANS FOR SMALL BUSINESS
On July 14, 2010, the House Committee on Small Business
held a hearing entitled ``Bonus Depreciation: What it Means for
Small Business.'' The hearing focused on bonus depreciation and
evaluated how it benefits small businesses. Bonus depreciation
offers flexibility and increased cash flow to businesses by
providing a 50% immediate deduction on the cost of new
property. The hearing gave members of the Committee the
opportunity to evaluate the effectiveness of bonus depreciation
in small business investments and assess how the secondary
effect of increased demand benefits the overall economy. The
Committee focused on bonus depreciation due to a proposal to
extend bonus depreciation in the Small Business Jobs and Credit
Act of 2010. Witnesses provided their views on the benefits of
bonus depreciation and why it should be extended. Witnesses
included Jack Sanford on behalf of the American Road and
Transportation Builders Association; Robert Ring on behalf of
the Air Conditioning Contractors of America; Jon Budington on
behalf of the Printing Industries of America; Daniel Fesler on
behalf of the National Lumber and Building Materials Dealers
Association; and Dennis Vander Molen on behalf of the
Associated Equipment Distributors.
THE IMPACT OF INTELLECTUAL PROPERTY ON ENTREPRENEURSHIP AND JOB
CREATION
On July 21, 2010, the Committee held a hearing entitled
``The Impact of Intellectual Property on Entrepreneurship and
Job Creation.'' The Committee heard testimony from Mr. Robert
Holleyman, President & CEO, Business Software Alliance; Mr.
Rick Carnes, President, Songwriters Guild of America; Mr.
Steven Friedman, President, t3 Technologies, Inc.; Mr. Peter
Carnes, CEO, Traffax Inc.; and Mr. William Mansfield, Director
of Intellectual Property, ABRO Industries. The hearing examined
the importance of intellectual property to the growth of small
businesses and the broader economy. Witnesses shared their
perspective on the steps needed to support job creation and the
long-term health of small businesses in IP-intensive
industries.
HEARING ON WASTE, FRAUD, AND ABUSE PURSUANT TO HOUSE RULE XI
On July 28, 2010, the Committee held a hearing to examine a
recent Government Accountability Office (GAO) report on the
Historically Underutilized Business Zone (HUBZone) Program, the
agency's response to the BP Oil Spill, and progress made in
implementing GAO's recommendations concerning the Service-
Disabled Veteran-Owned Small Business program, and several
other matters. The Committee heard testimony from the Karen
Mills, Administrator of SBA and Greg Kutz, Managing Director of
Forensic Audits and Special Investigations at GAO.
Subcommittee on Finance and Tax
Oversight Activities
HOW THE COMPLEXITY OF THE TAX CODE HINDERS SMALL BUSINESSES
On May 7, 2009, the Subcommittee on Finance and Tax held a
hearing highlighting the growing complexity of the Internal
Revenue Code and the impediments this creates for small
businesses. The hearing focused on ways to simplify the tax
code, make it more efficient, and less burdensome to comply
with. The complicated nature of the income tax imposes costs
not only on small businesses, who are forced to spend time and
money preparing and filing their returns, but also on the
Internal Revenue Service (IRS) who is tasked with audit,
collection, and enforcement of our nation's tax laws.
Witnesses included Keith Hall, National Tax Advisor for the
National Association of Self Employed, and owner of his own
accounting firm; Christine Chin-Ryan owner of Synergy
Consulting, Inc.; Eric Blackledge, owner of Blackledge
Furniture; and Stam Stathis, a certified public accountant of
CPA Associates. Witnesses emphasized the need to create
permanency with respect to tax provisions, do away with the
Alternative Minimum Tax, and eliminate costly and inefficient
record keeping requirements. Shortly after the hearing,
Congressman Schrader introduced a tax simplification bill that
created a standard deduction for those operating a business out
of their homes.
LEGISLATIVE PROPOSALS TO REFORM THE SBA'S
CAPITAL ACCESS PROGRAMS
On July 23, 2009 the Subcommittee on Finance and Tax held a
hearing to examine proposed legislative initiatives to address
deficiencies in the SBA's lending and investment programs that
had been identified by previous hearings before the Committee.
Witnesses at this hearing discussed several legislative
proposals that would make a number of important reforms to the
SBA's existing programs and establish new programs to close the
gap for equity investment that was left when the SBA's
investing programs were curtailed. The Subcommittee received
testimony from the American Bankers Association, the
Corporation for Enterprise Development; the National
Association of Home Builders; the National Association of
Development Companies; the National Association of Small
Business Investment Companies; and American Academy of Family
Physicians.
EXPLORING WAYS FOR SMALL BUSINESS TO ACCESS CAPITAL
On August 4, 2009, the Subcommittee on Finance and Tax held
a field hearing in Salem, Oregon on expanding access to capital
for entrepreneurs and spurring economic growth. The
Subcommittee heard testimony from the SBA's Portland District
Office, local businesses, and lenders.
ACCESS TO CAPITAL FOR SMALL BUSINESSES
On April 19, 2010, the Subcommittee on Finance and Tax held
a field hearing in Sarasota, Florida, entitled, ``Access to
Capital for Small Businesses.'' The purpose of the hearing was
to examine the state of small business lending, with particular
emphasis on the prevailing conditions in South Florida. Hearing
witnesses included local business owners and lenders.
Subcommittee on Contracting and Technology
Oversight Activities
ENSURING STIMULUS CONTRACTS FOR SMALL AND VETERAN-OWNED BUSINESSES
The Subcommittee on Contracting and Technology held a
hearing entitled ``Ensuring Stimulus Contracts for Small and
Veteran-Owned Businesses'' on March 12, 2008. This hearing
reviewed federal agencies' efforts to provide small businesses
and veteran-owned small businesses with contracting
opportunities contained in P.L. 111-5, the American Recovery
and Reinvestment Act of 2009 (ARRA). The Committee examined
federal actions to date, as well as recommendations for
ensuring small business participation in ARRA-related
infrastructure projects. The Committee considered these efforts
in the context of small business procurement law, including the
applicability of subcontracting requirements, protections under
the Federal Acquisition Regulation (FAR), and the application
of federal small business goals.
LEGISLATIVE INITIATIVES TO STRENGTHEN AND MODERNIZE THE SBIR AND STTR
PROGRAMS
On June 4, 2009 the Subcommittee on Contracting and
Technology held a hearing entitled ``Legislative Initiatives to
Strengthen and Modernize the SBIR and STTR Programs.'' At this
hearing, witnesses provided testimony on four legislative
proposals that, if enacted, would modernize these initiatives.
Committee members heard how these proposals will affect small
businesses' ability to advance research and development.
HELPING SMALL BUSINESS INNOVATORS THROUGH THE RESEARCH AND
EXPERIMENTATION TAX CREDIT
On July 9, 2009, the Subcommittee on Contracting and
Technology held a hearing on the R&D tax credit and the role it
plays in innovation and growth for America's small businesses.
Witnesses included Bart Heenan, CEO of Morphix Technologies;
Scott Ferros, CFO of Blackhawk; Doug Wilson, Executive Vice
President of LifeNet Health; Dr. Karl Schoenbach of Old
Dominion University; Ned Barrett, President of Direct Logic
Solutions; and Richard Bendis, President & CEO Innovation
America.
The witnesses detailed that the R&D tax credit is vital for
American companies looking to stay ahead in increasingly global
economy. They emphasized that capital and research lead to new
inventions, product, and ultimately jobs. However, since
capital and research can take place almost anywhere in the
world, it is important for the U.S. economy to keep pace with
the rest of the world, changes need to be made. The panel
argued that the credit needs to be made a permanent part of the
tax code so that firms can rely on the incentive when planning
their research budgets. Additionally, the witnesses noted that
the complexity of the provision needs to be reduced so that
more and more small businesses can take advantage of the
credit.
THE ROLE OF FEDERAL LABS IN SPURRING INNOVATION AND ENTREPRENEURSHIP
ACROSS THE U.S.
On September 24, 2009, the Subcommittee on Contracting and
Technology held a hearing entitled, ``The Role of Federal Labs
in Spurring Innovation and Entrepreneurship Across the U.S.''
The Subcommittee heard testimony from industry representatives
on how small businesses performing contracts for federal labs
and research facilities have generated technological
advancements and local economic benefits. The hearing reviewed
the importance of these research projects in job creation.
VETERAN CONTRACTING--PREVENTING FRAUD
The Subcommittee on Contracting and Technology held a
hearing on May 24, 2010 in Norfolk, Virginia to discuss a
Government Accountability Office (GAO) report that discovered
fraud in the Service-Disabled Veteran Owned Small Business
(SDVOSB) procurement program. In addition, the hearing examined
procurement opportunities available to SDVOSBs. The
Subcommittee heard testimony from Greg Kutz, GAO's Managing
Director of Forensic Audits and Special Investigations; Cindy
Walters, Director of the Hampton Roads Procurement Assistance
Center; Janice Cavolt, owner of JBC Corp and local
representative from the American Legion; Elton Roller, owner of
Greenland Enterprises, Inc., a certified SDVOSB; and George
Armbruster and Duke Ingraham, co-owners of Fleet Services and
Installation, LLC, an SDVOSB.
ENSURING CONTRACTING OPPORTUNITIES AND PREVENTING FRAUD FOR SERVICE-
DISABLED VETERAN-OWNED SMALL BUSINESSES
On July 15, 2010, the Subcommittee on Contracting and
Technology held a hearing to discuss the Service-Disabled,
Veteran-Owned Small Business (SDVOSB) procurement program.
Federal agencies testified regarding how they work to meet
their SDVOSB goals as well as on the contracts that they
awarded to SDVOSBs with funds from the American Recovery and
Reinvestment Act (ARRA). The Subcommittee heard testimony from
representatives from the following agencies: Department of
Veteran Affairs; Department of Defense; Environmental
Protection Agency; and the Federal Emergency Management Agency.
These agencies were selected to testify because they either had
noteworthy performance or were cited in the October 2009
Government Accountability Office (GAO) report regarding fraud
in the SDVOSB program.
Subcommittee on Regulations and Health Care
Oversight Activities
IMPACT OF FOOD RECALLS ON SMALL BUSINESSES
On March 11, 2009, the Subcommittee on Regulations and
Healthcare held a hearing entitled, ``Impact of Food Recalls on
Small Businesses.'' The Food and Drug Administration and U.S.
Department of Agriculture testified on how their agencies
responded to a rash of food recalls occurring in the months
before the hearing, and how they work with small businesses
during recalls. Representatives of small firms discussed the
severe economic impact that food recalls have on their
businesses, and what should be done to reduce the incidence of
such recalls.
IMPACTS OF OUTSTANDING REGULATORY POLICY ON SMALL BIOFUELS PRODUCERS
AND FAMILY FARMERS
On May 21, 2009 the Subcommittee on Regulations and
Healthcare held a hearing on outstanding regulatory issues
impacting the domestic biofuels industry. The Subcommittee
heard testimony from witnesses who discussed pending renewable
fuel regulations and the regulatory framework affecting the
biofuels and related agriculture industries. This forum
examined the implementation of programs in the 2007 Energy Bill
as well as the 2008 Farm Bill.
Witnesses on the first panel included: Ms. Cheryl Cook,
Deputy Under Secretary for Rural Development, United States
Department of Agriculture; and Ms. Margo Oge, Director Office
of Transportation and Air Quality, U.S. Environmental
Protection Agency. Witnesses on the second panel included: Mr.
Mike Noble, President, Lake Erie Biofuels, LLC; Mr. Ben
Wootton, President, Keystone, Shiremanstown, PA; Mr. Gregory L.
Bafalis, President & CEO, Green Earth Fuels, LLC; Mr. Ray
Gaesser, Executive Committee Member, American Soybean
Association; Mr. Zippy Duvall, President, Georgia Farm Bureau
Federation; and Mr. K.C. Das, Ph.D., P.E., Associate Professor,
University of Georgia.
HEALTH IT ADOPTION AND THE NEW CHALLENGES FACED BY SOLO AND SMALL GROUP
HEALTHCARE PRACTICES
On June 24, 2009, the Subcommittee on Regulations and
Healthcare held a hearing entitled ``Health IT Adoption and the
New Challenges Faced by Solo and Small Group Healthcare
Practices.'' The Committee discussed the challenges solo and
small group practices face in adopting health information
technology (HIT). It also examined the implementation of
policies in the American Recovery and Reinvestment Act of 2009
to promote Health IT adoption. Congresswoman Kathy Dahlkemper,
Chair of the Subcommittee on Regulations and Healthcare,
introduced the Health Information Technology Financing Act of
2009, a small business proposal designed to increase wider
adoption of HIT by providers though the Small Business
Administration. Testimony was offered by Dr. David Blumenthal
on behalf of the US Department of Health and Human Services;
Mr. Jim Fetzner of Comfort Care located in Erie, Pennsylvania;
Mr. Rob Jackson of Grove City Medical Center located in Grove
City, Pennsylvania; Dr. Susan Kressly on behalf of the American
Academy of Pediatrics; Dr. Charles J. Stuckey, O.D.; on behalf
of the Pennsylvania Optometric Association; and Ms. Carladenise
A. Edwards, Ph.D. on behalf of the Georgia Department of
Community Health.
Subcommittee on Rural Development, Entrepreneurship, and Trade
Oversight Activities
THE IMPACT OF COMPETITIVE BIDDING ON SMALL BUSINESSES IN THE DURABLE
MEDICAL EQUIPMENT COMMUNITY
On February 11, 2009, the Subcommittee on Rural
Development, Entrepreneurship, and Trade held a hearing
entitled ``The Impact of Competitive Bidding on Small
Businesses in the Durable Medical Equipment Community.'' The
hearing focused on the Centers for Medicare & Medicaid Services
(CMS) final rule on competitive bidding for durable medical
equipment, prosthetics, orthotics, and supplies (DMEPOS). Under
the rule, DMEPOS companies are required to submit bids,
allowing CMS to select suppliers based on cost and volume, or
on potential savings. Witnesses raised concerns about the
bidding process suggesting implementation of the program could
lead to access and quality problems.
Testimony was provided by Laurence Wilson, Director of
DMEPOS Policy, Centers for Medicare and Medicaid Services;
Wayne Stanfield on behalf of the National Association of
Independent Medical Equipment Suppliers; William Griffin on
behalf of North Carolina Association for Medical Equipment
Services; Robert E Brant, Accredited Medical Equipment
Providers of America, Inc.; Ms. Georgetta Blackburn, AA
Homecare; and Dr. Alan Routman on Behalf of American
Association of Orthopaedic Surgeons.
LEGISLATIVE INITIATIVES TO MODERNIZE SBA'S ENTREPRENEURIAL DEVELOPMENT
PROGRAMS
On April 2, 2009, the Subcommittee on Rural Development,
Entrepreneurship, and Trade held a hearing to examine
legislative proposals to modernize the SBA's entrepreneurial
development (ED) programs. Small business representatives
testified on how the proposed legislative initiatives will
impact the effectiveness of SBA's ED programs, while
strengthening small firms' ability to expand.
TEXTILE IMPORT ENFORCEMENT: IS THE PLAYING FIELD LEVEL FOR AMERICAN
SMALL BUSINESSES?
On June 18, 2009, the Subcommittee on Rural Development,
Entrepreneurship, and Trade held a hearing entitled ``Textile
Import Enforcement: Is the Playing Field Level for American
Small Businesses?'' The Assistant Commissioner in the Office of
International Trade at U.S. Customs and Border Protection, Dan
Baldwin, delivered testimony. The hearing examined the
challenges small businesses face from illegally trafficked
products and whether enforcement of textile laws is adequate.
THE FUTURE OF SPECIALTY CROPS FOR SMALL FAMILY FARMERS
On Thursday, July 30, 2009 the Subcommittee on Rural
Development, Entrepreneurship and Trade, held a hearing
entitled, ``The Future of Specialty Crops for Small Family
Farmers.'' This forum provided a discussion of the current Farm
Bill programs, and how they will apply to fresh fruits and
vegetables. It enabled the Subcommittee to consider future
policies that will further develop the industry's future during
these times of uncertainty. This Subcommittee was also able to
hear testimony from producers about how production will
continue to provide small businesses with a future in this
industry, even during a period of economic instability.
The hearing included two panels. The first panel included
the Honorable Kathleen Merrigan, Deputy Secretary of
Agriculture, with the U.S. Department of Agriculture. The
second panel included: Mr. Bill Holbrook, Cold Mountain Farms
from Waynesville, NC; Mr. Kenny Barnwell, Kenny Barnwell
Orchards, from Edneyville, NC; Mr. Brian Rose, President,
Flavor 1st Growers & Packers, from Horse Shoe, NC; Mr. Rich
Hudgins, President & CEO, California Canning Peach Association,
and Mr. Jim Anderson, Executive Director, with the Missouri
Wine and Grape Board.
THE ROLE OF AUTO DEALERS ON RURAL COMMUNITIES
On September 16, 2009, the Subcommittee on Rural
Development, Entrepreneurship and Trade held a hearing on the
role of auto dealerships on rural communities. This hearing
examined the effect of automobile dealers on the local
communities that these dealers are located within, with a focus
on rural communities. The Subcommittee heard testimony from
auto dealers and an academic scholar on this issue.
COAL COMBUSTION BYPRODUCTS: POTENTIAL IMPACT OF A HAZARDOUS WASTE
DESIGNATION ON SMALL BUSINESSES IN THE RECYCLING INDUSTRY
On July 22, 2010, the Subcommittee on Rural Development,
Entrepreneurship and Trade held a hearing to discuss the effect
of proposed coal combustion waste (CCW) regulations on small
businesses. The Environmental Protection Agency (EPA) testified
about the proposed regulations and a panel of industry
representatives and experts testified about the regulation's
impact on small businesses.
The Subcommittee stressed the importance of the business
community and the EPA working together to promote
environmentally progressive strategies to dispose of CCW.
During the hearing, witnesses testified that the new
regulations proposed by the EPA could shut down many businesses
in the coal ash recycling and associated manufacturing sectors.
Witnesses further testified that it could also deter industry
investment in such strategies and, as result, increase the
amount of waste in landfills. Instead, witnesses concluded that
any final EPA rules should draw on the commercial markets for
CCW ``beneficial use'' products, which are an economically
efficient means to reduce this waste stream.
Subcommittee on Investigations and Oversight
Oversight Activities
EXPANDING EQUITY INVESTMENT IN SMALL BUSINESSES, INVESTIGATIONS AND
OVERSIGHT
On March 26, 2009, the Subcommittee on Investigations and
Oversight held a hearing to explore the role of equity
investment for small firms and examine potential measures for
expanding equity investment for small businesses. More
specifically, the hearing focused on issues related to equity
investment in small business with emphasis on how difficult
economic conditions have affected investment in small firms.
The Committee received testimony from the National Association
of Small Business Investment Companies, the Angel Capital
Association, the Private Equity Council, the National Venture
Capital Association, the Biotechnology Industry Organization
and a Business Development Company.
THE CONSUMER PRODUCT SAFETY IMPROVEMENT ACT AND SMALL BUSINESS
On May 14, 2009, the Subcommittee on Investigations and
Oversight held a hearing entitled ``The Consumer Product Safety
Improvement Act and Small Business.'' The Acting Chairman of
the Consumer Product Safety Commission, Nancy Nord, delivered
testimony. The Subcommittee heard testimony from small business
manufacturers of children's products. The small firms discussed
the challenges they face in complying with the Consumer Product
Safety Improvement Act. The Subcommittee explored how the CPSC
can minimize related regulatory burdens on small businesses.
THE UPCOMING HIGHWAY BILL AND ENSURING IT MEETS THE NEEDS OF SMALL
BUSINESS
On July 16, 2009, the Subcommittee on Investigations and
Oversight held a hearing entitled ``The Upcoming Highway Bill
and Ensuring It Meets the Needs of Small Business.'' The
Subcommittee heard testimony from small firms in the
construction industry including contractors, equipment
distributors, architects and materials providers. The hearing
examined how investing in highway infrastructure benefits local
economies and what improvements to America's surface
transportation system are required to meet the needs of
entrepreneurs.
THE IMPACT OF ENERGY POLICY ON SMALL BUSINESS
On August 25, 2009, the Subcommittee on Investigations and
Oversight held a field hearing in Tulsa, Oklahoma on the impact
of national energy policy on small businesses. As Congress
considered energy and climate change legislation, it was
appropriate to convene this hearing to ensure that small
businesses and family farmers would have a critical role in any
policy solutions. The hearing examined the potential
opportunities that potential reforms can present and ensured
that the needs of small businesses were addressed in crafting
measures. The Subcommittee heard testimony from local energy
businesses.
ACCESS TO CAPITAL FOR SMALL BUSINESSES
On May 17, 2010, the Subcommittee on Investigations and
Oversight held a field hearing in Pittsburgh, Pennsylvania,
entitled, ``Access to Capital for Small Businesses.'' The
purpose of the hearing was to examine the state of small
business lending, with particular emphasis on the prevailing
conditions in Western Pennsylvania.
IMPACT OF INTERCHANGE FEES ON SMALL BUSINESS
On July 29, 2010, the Subcommittee on Investigations and
Oversight, held a hearing to examine how the current fee
structure associated with card payment transactions has
affected small businesses and small financial institutions.
Specifically, the Subcommittee explored the advantages that the
current system provides to small businesses, consumers, and
banks, as well as how the costs of this system are allocated
among these parties. Additionally, this hearing explored how
the interchange system will be affected by recent changes in
law that are expected to come about with the passage of the
Frank-Dodd Financial Regulatory Reform bill. Witnesses at this
hearing included the CEOs of a community bank, a credit union
and representatives from two small businesses.
OVERSIGHT PLAN FOR THE 111TH CONGRESS
Clause 2(d) of rule X of the Rules of the House of
Representatives for the 111th Congress requires that each
standing committee in the first session of a Congress adopt an
oversight plan for the two-year period of the Congress and
submit the plan to the Committee on Government Reform and the
Committee on House Administration.
Clause 1(d)(1) of rule XI requires each committee to submit
to the House not later than January 2 of each odd-numbered
year, a report on the activities of that committee under rules
X and XI during the Congress ending on January 3 of such year.
Clause 1(d)(3) of rule XI also requires that the report include
a summary of the oversight plans submitted pursuant to clause
2(d) of rule X; a summary of the actions taken and
recommendations made with respect to each such plan; and a
summary of any additional oversight activities undertaken by
the committee and any recommendations made or actions taken
thereon.
Part A of this section contains the Oversight Plan of the
Committee on Small Business for the One Hundred Eleventh
Congress, which the Committee considered and adopted on January
28, 2009.
Part B of this section contains a summary of the actions
taken to implement that plan and the recommendations made with
respect to the plan. Additional oversight activities undertaken
by the Committee, and the recommendations made or actions taken
thereon, are contained in the specific sections relating to the
activities of the full Committee and each of the subcommittees.
PART A
OVERSIGHT PLAN OF THE COMMITTEE ON SMALL BUSINESS FOR THE ONE HUNDRED
ELEVENTH CONGRESS
----------
January 28, 2009. Approved by the Committee on Small Business.
----------
Ms. Velazquez, from the Committee on Small Business,
submitted to the Committee on Oversight and Government Reform
and the Committee on House Administration the following
REPORT
Clause 2(d)(1) of rule X of the Rules of the House of
Representatives for the 111th Congress requires each standing
committee, not later than February 15th of the first session to
adopt an oversight plan for the 111th Congress. The oversight
plan must be submitted simultaneously to the Committee on
Government Reform and the Committee on House Administration.
The following agenda constitutes the oversight plan of the
Committee on Small Business for the 111th Congress. It includes
areas in which the Committee and its subcommittees expect to
conduct oversight during this Congress, but does not preclude
oversight or investigation of additional matters or programs as
they arise. The Committee will consult, as appropriate, with
other committees of the House that may share jurisdiction over
any of the subjects listed below.
I. Oversight of the Small Business Administration
A. Agency Management. Given the challenges facing the
economy, the Committee will review the adequacy of the
management structure, staffing levels, and financial resources
of the agency's programs. The Committee will review new
initiatives that have been implemented to respond to the
economic slowdown and determine if further action or
modification is warranted. With the decrease in SBA lending
activity, the Committee will examine the role that the
centralization of loan processes played, including the role
that the facilities in Herndon, Virginia; Hazard, Kentucky; and
Citrus Heights, California have played. The Committee will also
consider whether the commercial loan centers in Fresno,
California and Little Rock, Arkansas are accomplishing their
mission. The Committee will examine the role of SBA District
Offices and whether they are meeting the needs of the local
community. The Committee will review human resources policies
and employee training programs, including SBA University, to
determine their effect on agency morale and preparedness. The
Committee will review the agency's cooperative agreements,
partnerships and co-sponsorships. The Committee will continue
to assess the adequacy of the agency's budgetary requests,
financial management, and reporting goals.
B. Lending Programs. With loan volumes declining
substantially across SBA's lending programs, the Committee will
review measures to reverse these trends. This will include
examining alternatives to existing programs, as well as
changing existing initiatives' structure. The Committee also
will analyze the government's response to the recent economic
downturn and financial crisis. This will include an evaluation
of the impact of the Troubled Assets Relief Program (TARP) and
the Capital Purchase Program (CPP) on SBA lending. In addition,
the Committee will assess whether the Federal Reserve's Term
Asset-Backed Securities Loan Facility (TALF) has assisted the
secondary market for SBA loans. The Committee will also
consider enhancing the 7(a) and Certified Development Company
programs so that they are more effective in reaching borrowers
unable to secure conventional loans. Additionally, the
Committee will review the Microloan program with the intent of
making it more affordable for borrowers and reducing barriers
to its growth.
C. Lender Oversight. The Committee will conduct hearings
regarding the effectiveness of SBA's Office of Lender
Oversight. This will include an assessment of the SBA's ability
to monitor risk in its loan portfolio and the corrective
actions it has taken to address undue risk. In addition, the
Committee will also review the sufficiency of the budgetary
resources for the lender oversight function. The Committee also
will examine methods the SBA uses to manage risk in its loan
portfolio and review the agency's policies and practices
regarding its lending partners. Finally, the Committee will
review the procedures to monitor the SBA's investment programs,
including an assessment of actions taken to protect the
government from loss due to capital impairment in these
programs.
D. Investment Programs. The Committee will conduct hearings
regarding the availability of equity capital for small firms in
the current economic environment. The Committee will consider
proposals to modify and reestablish the SBIC participating
securities program, with a focus on broadening early-stage
investment in high-growth, job-creating industries. The
Committee will continue to consider policy changes that will
increase angel investment. Finally, the Committee will assess
the New Markets Venture Capital program and how it can be
strengthened to better fulfill its mission of making equity
capital more available to low-income in urban and rural
communities.
E. Disaster Programs. The Committee will review the
implementation of major statutory changes to the SBA's disaster
loan and response programs made during the 110th Congress. This
will include an assessment of the programs that: incorporate
private sector lenders into the disaster loan program; improve
the agency's response during and after disasters; enhance
coordination among agency's responding to disasters; and
provide for improved system resiliency. In addition, the
Committee will review SBA's disaster simulations, planning and
preparations for large-scale disasters, and modifications made
to the disaster cadre.
F. Entrepreneurial Development Programs. The Committee will
conduct hearings into how these programs can play a greater
role in current economic downturn and assist struggling
businesses and unemployed workers. This will include ensuring
that these initiatives are focused on stimulating economic
development, providing workforce retraining, and creating new
jobs. The Committee also will evaluate the sufficiency of these
programs' services to make certain that the needs of small
businesses are being met. The Committee will examine proposals
to establish a national incubator program that will provide and
serve as a catalyst for entrepreneurial growth in local
communities.
G. Government Contracting and Business Development
Programs. The Committee will examine the SBA's contracting and
business development to ensure that the agency's efforts are
meeting the needs of small businesses. In particular, the
Committee will review the 8(a) program, the Small Disadvantaged
Business program, and the Women's Procurement Program. With
regard to the Women's Procurement Program, the Committee will
continue to review the agency's implementation actions. The
effectiveness of SBA's role in mitigating bundled contracts,
including the hiring and retention of procurement center
representatives, will be assessed. In light of reports raised
by the SBA's Inspector General, the Committee will examine the
role that Alaskan Native Corporations play in the 8(a) program
and ensure that the program's rules and regulations encourage
minority small business growth and development. The Committee
will continue to oversee the HUBZone program, including
addressing the GAO's findings of fraud and insufficient program
controls. The Committee will assess the Service-Disabled
Veteran-Owned Procurement Program to ensure that it is being
properly implemented. The Committee will examine recent
decisions by the GAO (International Programs, Inc. B-400278; B-
400308), as well as changes to the Federal Acquisition
Regulations (FAR) that would effect the coordination of SBA's
contracting and business development programs government-wide.
The Committee will examine the SBA's Office of Size Standards
to ensure that it has the resources and organization structure
to effectively update size standards in a timely manner. With
regard to the 7(j) program, the Committee will review the
agency's process to determine awards under this authority.
Finally, the Committee will review the SBA's actions to improve
the accuracy of federal contracting databases that list
eligibility and awards made to small businesses.
H. Small Business Innovation Research (SBIR) and Small
Business Technology Transfer (STTR) programs. Building on the
Committee's efforts to assess and reauthorize the SBIR and STTR
programs during the 110th Congress, the Committee will consider
proposals to strengthen and modernize the SBIR and STTR
programs. In order to further the most promising technologies
and promote maximum job creation, the Committee will consider
specific proposals to permit venture capital-backed companies
to participate in the SBIR program.
I. Office of Advocacy. The Committee will assess the
policies of the Office of Advocacy and its capabilities to
reduce regulatory burdens on small businesses.
J. Veterans Corporation. The Committee will review the on-
going activities of the National Veterans Business Development
Corporation to determine whether the Corporation is serving as
an effective advocate for veteran-owned businesses. In light of
concerns that the Corporation is not meeting its obligation to
veterans, the Committee will examine the Corporation's
operation and performance to determine whether or not it should
be replaced with a new entity. The Committee will examine the
Corporation's relationship within the context of all federal
programs designed to assist veterans, particularly those
returning from Iraq and Afghanistan. The Committee also will
evaluate the relationship between the SBA and the Corporation
to identify whether the SBA is working cooperatively with the
Corporation, or whether work is being unnecessarily replicated.
The Committee will identify whether the Corporation's efforts
at expanding and enhancing private funding options have been
successful.
II. Agriculture
A. Implementation of Recent Agricultural Policy. The
Committee will examine the impact of federal policies on family
farms, ranchers, and rural small businesses. The Committee will
provide an in-depth examination of the implementation of the
2008 Farm Bill and its impact on small entities. This will
include an investigation of the policies' effects on the
income, production costs, and prices received by small
producers.
B. Financial and Technical Assistance. The Committee will
examine the impact of access to capital issues facing rural
areas, farmers and agribusinesses. The Committee will evaluate
federal programs that provide training, information, and
networking resources to enhance entrepreneurial activity in
these regions.
C. Program Harmonization. The Committee will examine the
SBA and Department of Agriculture economic development programs
to determine how the two agencies can better coordinate their
missions to assist small business owners, both through program
harmonization and streamlined communications.
D. Renewable fuels. The Committee will examine the role of
small businesses in renewable fuel development and production.
The Committee will assess the operational needs of small
farmers seeking to produce alternative fuel products.
E. Climate Change. The Committee will examine how farmers
and small businesses can contribute to climate change
mitigation, and how they can minimize their climate impact in a
way that will positively affect their revenues and
profitability.
F. Food Prices. The Committee will examine how over the
course of the last months of 2008, commodity prices have
dramatically declined, yet retail food prices remain high. The
Committee will examine further all responses to the food price
issue, including their impact on American farmers, consumers
and small businesses.
G. Value Added Products. The Committee will increase
oversight of financing and technical assistance programs that
aid small farmers' expansion into emerging niche agricultural
markets, including organic products. The Committee will
evaluate the operational needs of small farmers working to add
value to outputs and maintain competitiveness in the changing
marketplace.
H. Rural Economic Development. The Committee will oversee
federal activities to spur economic development in rural
communities. The Committee will conduct hearings on the
physical and financial infrastructure needed to maintain and
grow small rural businesses, including access to air
transportation.
I. Competition Problems in Rail Industry and Impact on
Rural Areas. The Committee will examine competition problems
facing small firms as related to the rail industry and rail
rates, and identify anticompetitive barriers to entry. The
Committee will identify antitrust policies that increase
competition and foster market conditions, thus allowing for
more competition in terms of price and availability for rural
areas.
III. Energy
A. Energy Bill Provisions. The 110th Congress passed
sweeping energy legislation signed by the President (P.L. 110-
140 December 19, 2007) that included Title XII, entitled
``Small Business Energy Programs.'' The Committee will play an
active oversight role as these provisions are implemented,
especially with respect to the adequacy of the programs for
small firms.
B. Energy Efficiency. The Committee will investigate
methods to increase energy efficiency and improve resource
conservation practices for small businesses. The Committee will
conduct oversight of federal initiatives to streamline business
operations and reduce energy costs for small firms.
C. Renewable Energy Incentives. The Committee will examine
expiring renewable energy tax incentives. This will include a
review of how important these policies have been in stimulating
small business commerce within the sectors of renewable
biofuels, wind, solar, and geothermal.
D. Energy Prices. The Committee will conduct hearings on
the effect of volatile energy and petroleum prices on small
businesses, particularly fuel intensive sectors, such as
farming, transportation, and those that use petroleum products
as feedstock.
IV. Financial services and credit availability
A. Financial Crisis. The Committee will review the impact
that legislation aimed at stabilizing the U.S. financial
markets has had on small financial firms and other small
businesses. This will include an assessment of the Troubled
Asset Relief Program (TARP) and the Capital Purchase Program
(CPP). In addition, the Committee will review several actions
taken by the Federal Reserve, including the establishment of
the Term Asset-Backed Securities Loan Facility (TALF) and its
effect on commercial lending.
B. Emerging Economic Trends. The Committee will continue to
examine ongoing economic conditions stemming from the recession
that began in August of 2008, and their effect on small firms'
ability to grow, create jobs, and access capital.
C. Credit Markets. The Committee will review conditions in
the national credit markets as they relate to small business
lending and investment and will oversee federal efforts to
ensure that those markets function properly.
D. Secondary Market. The Committee will examine the role
that the secondary market plays in small business finance. This
will include a review of asset-securitization procedures and
policies in place for commercial lending. The Committee will
consider whether the secondary market for small business loans
can be enhanced through standardization, credit enhancements,
or making performance data more readily available.
E. Costs of Sarbanes-Oxley Compliance. In 2009, the
Securities and Exchange Commission (SEC) will release data on
the costs small public companies would face if they were
required to comply with Section 404 of the Sarbanes-Oxley Act.
The Committee will evaluate the findings of the SEC and will
assess the affect of SOX 404 compliance costs on small firms.
F. Venture Capital. The Committee will conduct oversight
hearings into trends in venture capital investment, including
whether start-up firms are securing such funding. The Committee
also will consider declining initial public offering activity
and its impact of venture capital financing.
G. Capital Formation. The Committee will review barriers
that impede small businesses' access to the capital markets,
including obstacles to initial public offerings and the public
equity markets. This will include a review of how SEC rules,
regulations, and forms affect small companies and whether SEC
regulation S-B is sufficiently tailored to the needs of small
issuers.
H. Middle Market Financing. The Committee will examine
whether middle market companies are able to secure sufficient
and cost-effective financial resources. These companies, which
generate between $5 million and $250 million in annual revenue,
contribute approximately 70 percent toward the nation's gross
national product. The financing needs of these companies are
often well beyond the capacity of SBA's programs and, given the
current economic downturn, many of these companies are left
without access to affordable credit and capital.
I. Role of Small Lenders. The Committee will assess the
impact of consolidation and attrition in the financial services
industry on small lenders and small business borrowers. In
addition, the Committee will review industry trends and
regulatory developments that may reduce the availability of
financing to small firms.
J. Insurance. The Committee will evaluate the use of
insurance products by small businesses, including property/
casualty lines. The Committee also will assess the impact of
federal insurance reforms on small insurers and small
businesses. Finally, the Committee will examine the impact of
federal regulatory efforts on small insurance companies and
insurance brokers.
V. Health care
A. Access to Affordable Health Coverage. The Committee will
evaluate a number of health care policies designed to expand
access to affordable health insurance through small employers.
The Committee will look at proposed federal changes to give
small employers greater options for coverage. The Committee
will examine current and proposed state initiatives to promote
coverage, and will evaluate the impact of these reforms on
small employers in those markets. The Committee will examine
the impact of these changes on the small-group health insurance
market.
B. Expanding Available Options for Small Employers to
Purchase Health Insurance. The Committee will examine options
for removing barriers to affordable small employer coverage.
The Committee will conduct hearings to review new and emerging
policies to increase access to affordable health care coverage.
These possible changes include, but are not limited to,
increasing pooling mechanisms for small businesses, reinsurance
models, and ERISA reforms.
C. Tax Credits to Increase Health Coverage. The Committee
will analyze the intersection of tax policy and health care in
the 111th Congress as health care reform becomes not only a
national but also a small business priority. The Committee will
examine whether the current system, which allows an employer
deduction for health insurance premiums, is the best way to
make health care affordable for the millions of small business
employers and small business employees that currently are
without any coverage. The Committee will examine reform
options, including but not limited to: capping the deduction on
employer benefits, converting the deduction into a fixed
refundable credit for the small business employer, converting
the deduction into a fixed, refundable credit for the small
business employee, or some other reform option.
D. Health IT Adoption. The Committee will conduct hearings
to evaluate the economic benefits derived through the adoption
of a uniform, secure, interoperable health information
technology infrastructure (Health IT) by small healthcare
groups--i.e. physicians, vendors and other providers. In
particular, the Committee will consider the degree to which
Health IT creates market efficiencies and whether those
advantages will exist for small groups. The Committee will
evaluate the challenges of Health IT adoption.
E. Health Care Consolidation. The Committee will examine
the impact of consolidation in the health care industry on the
cost and availability of care to small firms. The Committee
will assess the effects of health insurer consolidation on
healthcare providers. The Committee will examine the need to
revise the FTC/DOJ Joint Health Care Guidelines to reflect
increased consolidation health care markets, and to ensure that
the Guidelines are not placing physicians on an unlevel playing
field.
F. CMS Healthcare Provider Compensation. The Committee will
examine federal reimbursement of healthcare providers and the
effect that such reimbursement decisions have on non-Medicare/
Medicaid insurer reimbursement to physicians and other
healthcare providers. This will provide a particular focus of
the impact on small healthcare practices.
G. CMS Regulation. The Committee will evaluate CMS
regulations that affect the business operation of small
healthcare providers. In particular, the Committee will examine
CMS' regulatory structure and consider how current regulations
may be enhanced to improve the business environment of
healthcare providers.
VI. International trade
A. Domestic and International Trade Policies. The Committee
will hold hearings to identify measures for inclusion in trade
agreements that reflect the interests of small domestic
businesses, particularly facilitation measures and sector-
specific preferences. The Committee also will work to increase
the representation of small business interests in the
negotiation of new trade agreements and enforcement of existing
agreements and treaties. This will include an effort to expand
the focus on small business interests among federal trade
policymakers. Additionally, the Committee will identify
domestic policies compliant with international regulations,
such as export loans, which help ensure the global
competitiveness of small United States businesses.
B. Trade and Employment. The Committee will examine the
impact of trade policies on job losses among small firms. This
will include a review of trade agreements, regulations, and
procedures that adversely effect small firms' ability to create
and retain domestic jobs.
C. Trade Promotion Programs. The Committee will hold
oversight hearings to measure the performance of federal trade
programs, which seek to reduce small firms' costs of expanding
into international markets, including those administered by the
SBA, Departments of Commerce and Agriculture, the Export-Import
Bank, and the Overseas Private Investment Corporation. The
Committee also will evaluate the implementation of the National
Export Promotion Strategy, particularly its focus on small
businesses. Further, the Committee will highlight components of
the country's infrastructure that facilitate efficient cross-
border trade, but are in need of improvements such as ports,
roads, and airport facilities.
D. Regulations Affecting Trade. The Committee will assess
whether existing international trade sanctions effectively
prevent unfair trade practices such as theft of intellectual
property or dumping of products below the cost of production.
This evaluation will incorporate an examination of mechanisms
to increase small businesses' access to relief from unfair
trade practices through trade remedy programs. Finally, the
Committee will work with the Executive Branch to reduce
regulations that serve as barriers to small businesses engaged
in importing and exporting.
E. Trade Data and Trends. The Committee will evaluate the
availability and quality of data measuring the contributions to
the nation's trade performance by small businesses, including
information gathered by the Department of Commerce and the
United States Trade Representative. This will include an effort
to examine the data compiled by federal agencies, indicating
the output by small firms receiving trade-related assistance.
VII. Procurement
A. Troubled Asset Relief Program (TARP). The Committee will
examine the impact of waiving certain provisions of the Federal
Acquisition Regulation on small business in the implementation
of the Emergency Economic Stabilization Act of 2008. The
Committee will examine measures taken by the Department of
Treasury to utilize small businesses, including minority-owned
and women-owned businesses as asset mangers, consultants, and
servicers for the TARP.
B. Omnibus Economic Stimulus. The Committee will conduct
oversight of any economic stimulus legislation to determine its
impact of small businesses. This will include an examination of
the number and amount of federal contracts awarded to small
businesses and an analysis of the job creation benefits of such
procurement actions.
C. Implementation of National Defense Authorization Act of
2008. The Committee will review the impact of the ``enhanced
competition'' and new bid protest provisions of this Act on
small firms. This will include an investigation of whether
these new authorities are benefiting small firms, particularly
in defense-related industries.
D. Application of Small Business Set-Asides for Task and
Delivery Orders under Multiple Award Contracts. The Committee
will examine recent GAO decisions (including Delex Systems,
Inc., B-400403) that determined that federal small business
set-asides and ``the rule of two'' apply to task and delivery
order under multiple award schedule contracts. The Committee
will examine efforts taken by agencies to understand if such
set-asides are being applied consistently government-wide.
E. Use of Indefinite Delivery/Indefinite Quantity (ID/IQ)
versus Sealed Bids for Construction Project Awards. The
Committee will investigate whether federal agencies are
increasingly relying on ID/IQ solicitations, instead of sealed
bids, to award construction projects. The Committee will use
this examination to determine whether such a trend promotes
competition, particularly for smaller firms in construction and
related industries.
F. Emergency Contracting Authority. The Committee will
review the federal government's emergency contracting
practices, such as the use of no-bid contracts and the raising
of the micropurchase threshold, to ensure that maximum
competition is achieved in such circumstances, particularly
with regard to small business participation.
G. Contract Bundling. The practice of contract bundling
displaces small businesses from the federal marketplace. The
Committee will continue to monitor the use of ``bundled''
contracts, and ensure that regulations to reduce contract
bundling are being followed. The Committee will continue to
work to ``unbundle'' contracts where appropriate.
H. Federal Contracting Goal. The Committee will review
federal agencies performance in meeting annual contracting
goals. In order to foster greater small business participation
in the federal marketplace, the Committee will seek to work
with agencies that have historically underperformed in meeting
their contracting goals.
I. Agency Miscounting of Contracts. The Committee will
investigate the sufficiency of actions taken by the SBA, the
FAR Council, and the Office of Federal Procurement Policy to
ensure that contract awards to small firms are accurately
enumerated. The continued reliance by the Executive Branch on
an inaccurate data collection system overstates agency
compliance with small business contracting goals--a situation
that has yet to be rectified. The Committee will continue to
review whether processes, including the usage of the Federal
Procurement Data System, are appropriate to provide an accurate
and transparent accounting of small business participation in
the federal procurement market.
VIII. Regulations
A. The Committee will examine federal agency rules and
regulations, as well as consider proposals to simplify them and
ensure that small businesses are not subject to undue
regulatory burdens.
B. The Committee will identify regulations that impose
unnecessary barriers to competitive market entry by small
businesses and place small businesses at a competitive
disadvantage with respect to larger competitors.
C. The Committee will identify regulations that fail to
minimize recordkeeping and reporting requirements, including
the elimination of duplicative requirements as required by the
Paperwork Reduction Act.
D. The Committee will assess whether small businesses are
provided sufficient compliance assistance, including small
entity compliance guides issued by agencies as mandated by the
Small Business Regulatory Enforcement Fairness Act.
E. The Committee will examine the agency process for
promulgating rules and regulations including: the adequacy of
an agency's compliance with the Regulatory Flexibility Act; the
adequacy of an agency's compliance with the Paperwork Reduction
Act; whether the agency minimized burdens and maximized
benefits for small businesses while achieving its statutory and
regulatory objectives; whether the agency fully considered
alternatives to the regulations that would lessen burdens on
small firms; and, whether small businesses have been provided
sufficient opportunity to comment and provide input into the
development of regulations.
F. The Committee will examine the need to amend and further
strengthen the Regulatory Flexibility Act and the Paperwork
Reduction Act to improve agency compliance with the laws and
ensure that small businesses are not unnecessarily burdened by
regulations.
IX. Taxation issues
A. Tax Incentives and Measures to Stimulate Economy. The
Committee will hold hearings on the state of the U.S. economy
and how tax policy geared towards small businesses can generate
an economic recovery. The Committee will focus on tax stimulus
items to mitigate the negative effects of the economic
slowdown. This will include an examination of the concerns of
specific industries such as housing, manufacturing, technology,
travel, and retail, where small businesses play a dominant
role. The Committee will highlight regulatory and legislative
efforts that increase consumption, hiring, retention, and
investment by and for small businesses.
B. Current State of the Tax Code. Nearly all aspects of
taxation, including the current taxation of individual income,
capital gains, estate taxes, and dividends, are set to change
in 2010. As such, the committee will analyze, keeping fiscal
considerations in mind, whether a renewal, modification, or
expiration of some or all of these tax policy items best
promotes development and growth of the economy and small
business. Finally, the Committee will examine if this is the
appropriate time to enact fundamental tax reform that includes
a rationalization of deductions, exclusion, and credits, and an
integrated tax system, which would promote small business
expansion.
C. Investment in Small Businesses and Tax Policy. The
Committee will study tax proposals that encourage investments
from outside sources while also analyzing tax initiatives that
encourage small firms to expand their businesses. This includes
not only scrutiny of existing incentives, such as the
Investment Tax Credit, and New Markets Tax Credit, but also new
tax credits, deductions or preferences that would encourage
investors to directly invest in small business start-ups.
Additionally, the Committee will the examine other specific tax
relief, such as Section 179 expensing provisions, accelerated
bonus depreciation provisions, and hiring and retention tax
credits that encourage small firms to expand their workforce
and grow their businesses.
D. Alternative Minimum Tax. The Committee will examine ways
to reform the alternative minimum tax to provide tax relief for
small businesses. The Committee will review proposed changes
and the budgetary costs of making such modifications.
E. Tax Modernization. The last major reform of the tax code
occurred in 1986, and changes made since have occurred in a
piecemeal fashion. Therefore, the Committee will investigate
obsolete provisions in the tax code that need to be modernized
to help small businesses. The Committee will identify code
provisions that need to be updated on account of inflation,
altered business realities, or inequitable treatment due to the
small business's choice of entity.
F. Tax Simplification and Fairness. The Committee will
explore the growing complexity of the United States tax system
and its adverse impact on small employers. Also, because the
tax system is based on voluntary compliance, the Committee will
examine the myriad of complex and unclear tax rules that cause
frequent errors by small businesses and exacerbate
opportunities for noncompliance. Finally, the Committee also
will examine inequities within the tax code that treat smaller
businesses differently from their larger counterparts. The
Committee will focus on proposals and make recommendations that
ensure that tax policy is fair and reasonable for small
businesses.
G. Three Percent Withholding Requirement and Potential
Impact on Small Businesses. A three percent withholding measure
was added to the Tax Increase Prevention and Reconciliation Act
of 2005. This measure, which will become effective in 2011,
will require that all federal payments have three percent
withheld for future taxes. The Committee will examine the
potential negative impact this provision could have on the cash
flow for small firms who perform federal contracts. The
Committee will review whether this could hinder the
competitiveness of small businesses.
H. Retirement and Pension Benefits. The Committee will
analyze tax code restructuring to enhance the ability of small
businesses to offer retirement benefits through lowering their
costs. Any such restructuring also will examine mechanisms to
maximize employee enrollment. In performing this assessment,
the Committee necessarily will investigate why such plans are
outdated given current economic conditions, the morass of
regulatory red-tape that prevents nearly 70 percent of small
businesses from offering retirement plans. The Committee will
explore what can be done to minimize the impact of burdensome
pension plans and regulations so that small businesses can find
and retain quality employees.
X. Technology and innovation
A. Broadband Deployment. The Committee will assess the
impact and conduct oversight of proposals to spur broadband
deployment. This will include a review of the benefit from
efforts to expand access to broadband services. The Committee
will review the concerns of rural areas that are
``underserved'' in terms of broadband coverage. It will examine
the issue of how increased broadband speed affects the
potential for further economic growth.
B. Immediate Job Creation with Broadband Deployment. The
Committee will investigate and oversee efforts to use public
funds to encourage broadband deployment as an economic
stimulus. This will include an assessment of the potential for
immediate job creation with small telecommunications companies.
In addition, the Committee will review how rapid deployment
spurs growth.
C. Universal Service Fund. The Committee will investigate
the economic benefits of increasing the speed of broadband and
proposals for reform of the Universal Service Fund. The
Committee will assess whether such action could increase costs
borne by providers or consumers.
D. Broadband Adoption. The Committee will investigate the
benefits of increasing the affordability of high-speed access
to the Internet. The Committee will consider an array of
potential government-led incentives designed to encourage
consumers, including small firms, to adopt broadband services.
E. Openness and Networks. The Committee will seek to ensure
that small firms, including device manufactures, software
application providers and online service providers, have open
access to the public and private networks of the Internet. The
Committee will also examine proposals that limit the necessary
network management that helps ensure that all consumers,
including small businesses, benefit from high-speed Internet
access.
F. Patent Reform. The Committee will examine the cost and
benefits of proposed reforms to the U.S. patent system. In
particular, the Committee will seek to evaluate the effect of
patent reform legislation on the small businesses that apply
for, receive and enforce patents. It will also assess the
impact of reforms on those small companies that manufacture
innovative products, license patented technologies, and defend
themselves in alleged patent infringement cases.
G. Cybersecurity. The Committee will monitor any efforts to
create onerous or questionable cybersecurity mandates on
private industry in an attempt to monitor and protect the
Internet. The Committee will ensure that the concerns of small
firms are raised. It will also assess the current government-
wide National Cybersecurity Initiative to ensure small
technology firms have adequate contracting opportunities.
H. Online Advertising. The Committee will examine the
increasing importance of online marketing strategies to many
successful small businesses and the concerns some have raised
about consumer privacy. The Committee will also consider
challenges some small firms have driving traffic to their
website and converting on-line advertising into sales.
I. Proposed Changes to Internet Domains. The Committee will
investigate a proposal by the Internet Corporation for Assigned
Names and Numbers (ICANN) to introduce new generic top-level
domains (gTLDs). The proposed change is likely to compel many
small businesses to invest in defensive domain registrations
but may also provide new opportunities for some small firms.
ICANN is expected to release the final gTLD in 2009 and the
Committee will consider the costs and benefits of the proposal.
J. Small Business Adoption of New Technology Tools. The
Committee will examine the success with which small firms are
utilizing new technologies and services (including social
networking, so-called ``cloud computing'' services) to make
their companies more efficient and competitive. The Committee
will consider the challenges some small businesses face with
respect to the effective adoption of these technologies and
services.
XI. Transportation and infrastructure
A. The Committee will conduct oversight hearings on the
impact of transportation and infrastructure legislation and
associated project funding on small businesses. This will
include examining how small contractors are utilized in these
projects, as well as the impact on local businesses that are
dependent on transportation networks.
XII. Veteran's entrepreneurship
A. Customized Assistance. The Committee will hold hearings
to ensure federal entrepreneurial and capital assistance
programs accommodate the growing veteran population. This will
include evaluating the programs to ensure that services address
the specialized needs of current veterans, including service
disabled, women, and Reservists/Guardsman.
B. Federal Veteran Procurement Policy. The Committee will
review federal actions to assist veteran entrepreneurs and
ensure that they are consistent with federal small business
policy. This will include a review of regulations establishing
agency-specific veteran contracting initiatives.
C. Program Performance. The Committee will examine the
effectiveness of federal programs that seek to improve
veterans' access to markets and training by monitoring the
output of veterans receiving entrepreneurial assistance. The
Committee also will work with Executive Branch officials to
ensure veterans have improved access to local business
development facilities.
D. Transition Services. The Committee will identify current
transition assistance needs of separating service members and
those experiencing ongoing deployments, such as Reservists, to
help them apply skills gained in the service to the private
sector. This will include working with administration officials
to ensure that federal agencies, including, but not limited to,
the SBA, and the Departments of Defense and Veterans Affairs,
prepare service members with resources to initiate
entrepreneurial enterprises upon separation from the military.
E. Federal Coordination and Centralization. The Committee
will examine whether the federal government is sufficiently
coordinating activities and allocating resources appropriately
with regard to veteran entrepreneurship activities and
initiatives. In addition, the Committee will investigate
whether a government-wide office should be established to
better facilitate the provision of services to veteran
entrepreneurs.
XIII. Workforce issues
A. Green Jobs. As small firms combat climate change by
implementing renewable energy strategies from wind, solar, and
geothermal to the development of more energy efficient heating
systems, the Committee will have the opportunity to consider
and evaluate green jobs and public policies that affect
potential growth. The Committee also will evaluate needs for
more workforce training.
B. Technology Workforce. The Committee will investigate the
impact of government programs and initiatives on small
technology companies' ability to hire and retain the
scientists, researchers and engineers these companies need to
succeed. The Committee will examine the efficacy of public-
private partnerships aimed at strengthening education and
training for American students and workers in subjects related
to science, technology, engineering and math and will consider
mechanisms that increase small firm participation in such
initiatives. The Committee also will investigate the potential
benefits to small firms associated with increasing the annual
cap on H-1B visas, reforming the process by which employment
visas are awarded, and permitting the recapture of used green
cards.
C. Visa System. The Committee will assess whether the
existing visa system is meeting the workforce needs of small
firms, and how it is affecting their ability to compete in a
global marketplace. The Committee will examine suggestions to
improve the visa system that benefits small firms.
PART B
IMPLEMENTATION OF THE OVERSIGHT PLAN OF THE COMMITTEE ON SMALL BUSINESS
FOR THE ONE HUNDRED ELEVENTH CONGRESS
I. Oversight of the Small Business Administration
A. Agency management
The Committee conducted an aggressive oversight agenda
during the 111th Congress. The Committee held ten oversight
hearings of the SBA and its programs. During this Congress, the
Committee has reviewed the SBA's activities in its three core
operational areas: access to capital, entrepreneurial
development, and contracting. In addition, the Committee held
hearings regarding the Disaster Program and the Small Business
Innovation Research (SBIR) Program, two significant initiatives
administered by the agency. Three hearings were held to assess
Government Accountability Office (GAO) reports requested by the
Committee and one hearing was conducted to examine an SBA
Inspector General investigation. These Committee oversight
hearings included:\7\
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\7\All of Committee's SBA-related oversight hearings have been held
at the full committee level.
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The State of SBA's Entrepreneurial Development
Programs and Their Role in Promoting Economic Recovery
(Oversight of the SBA's Entrepreneurial Development Programs),
February 11, 2009
GAO Investigation of the SBA's HUBZone Contracting
Program, March 25, 2009
The Importance of Technology in an Economic
Recovery (Oversight of the SBA's Small Business Innovation
Research Program), April 22, 2009
Laying the Groundwork for Economic Recovery:
Expanding Small Business Access to Capital (Oversight of the
SBA's Lending and Investment Programs), June 10, 2009
GAO Investigation on the SBA's Disaster Program,
July 29, 2009
GAO Investigation of the SBA's Service-Disabled
Veteran-Owned Small Business Contracting Program, November 18,
2009
Small Business Participation in the Federal
Procurement Marketplace (Oversight of the SBA's Contracting
Programs), March 24, 2010
SBA Inspector General Investigation of the SBA's
504/CDC Program, April 21, 2010
Improving Contracting Opportunities and Preventing
Fraud for Service-Disabled Veteran-Owned Small Businesses, July
15, 2010
GAO Fraud Investigation: Undercover Tests Show
HUBZone Program Remains Vulnerable to Fraud and Abuse, July 28,
2010
The Committee also continued to oversee the management of
the SBA through the consideration of the agency's FY 2010 and
FY 2011 budget proposals. The Committee approved views and
estimates on the SBA's budget for each of these fiscal years,
which included associated meetings and interviews with agency
personnel and analysis of the SBA's managerial operations. On
March 11, 2009 the Committee on Small Business marked up the FY
2010 Budget Views and Estimates. On March 4, 2010 the Committee
marked up the FY 2011 Budget Views and Estimates.
B. Lending programs
The Committee held six hearings that focused on the SBA's
7(a), Certified Development Company, and Microloan programs,
culminating in the introduction and passage of three pieces of
legislation, H.R. 3723, H.R. 3737, and H.R. 3739, which were
ultimately incorporated into H.R. 3854, reported out of
Committee, and passed by the House.
On March 26, 2009, the Small Business Committee,
Subcommittee on Oversight and Investigations held a hearing to
examine issues related to investment in small businesses, with
particular emphasis on how prevailing economic conditions have
affected investment in small firms. Witnesses in this hearing
explained how the current recession has aggravated the need for
investment funds, particularly for equity investing in small
firms, and how new federal initiatives could allay those needs.
Additionally, this hearing explored numerous setbacks to the
SBA's investment programs that had dramatically reduced the
amount of investment in early stage and startup businesses and
had inhibited the flow of venture capital to small businesses
in general.
The full Committee subsequently held a hearing on June 10,
2009, to examine the challenges facing the full array of the
SBA's capital access programs. The Committee received testimony
on issues facing the 7(a), Certified Development Company (CDC),
and 7(m)/Microloan programs. Witnesses at this hearing
discussed various deficiencies affecting the efficacy of these
programs and proposed steps that could be taken to better meet
the SBA's capital access mission.
On July 23, 2009 the Small Business Committee, Subcommittee
on Finance and Tax held a hearing to examine proposed
legislative initiatives to address deficiencies in the SBA's
lending and investment programs that had been identified by
previous hearings before the Committee.
The Committee held a hearing on October 14, 2009, to review
proposed legislation to address deficiencies in the SBA's
lending and investment programs that had been identified by
previous hearings before the Committee. Witnesses at this
hearing expressed their support for several legislative
proposals to reform the SBA's existing programs and establish
new programs that will help close the gap for equity
investment.
Throughout the 111th Congress, the Committee conducted
vigorous oversight to ensure the SBA swiftly and correctly
implemented provisions from H.R. 1, the ``American Recovery and
Reinvestment Act,'' that related to small business access to
capital. Via hearings, meetings with SBA staff and
Congressional correspondence the Committee pressed to see the
statute properly applied, so as to best meet entrepreneurs'
financing needs.
C. Investment programs
The Committee conducted several hearings on the SBA's
investment programs, culminating in the introduction and
passage of H.R. 3854, which modernized the SBA's investment
programs.
The Small Business Committee, Subcommittee on Oversight and
Investigations held a hearing on March 26, 2009 to examine
issues related to investment in small businesses. Witnesses in
this hearing explained how the current recession has aggravated
the need for investment funds, particularly for equity
investing in small firms, and how new federal initiatives could
allay those needs. Additionally, this hearing explored numerous
setbacks to the SBA's investment programs that had dramatically
reduced the amount of investment in early stage and startup
businesses and had inhibited the flow of venture capital to
small businesses in general.
The Committee held a hearing on June 10th, 2009, to examine
the challenges facing the full array of the SBA's capital
access programs. The Committee received testimony on issues
facing the Small Business Investment Company (SBIC), New
Markets Venture Capital (NMVC), and Renewable Fuels Capital
Investment (RFCI) Company programs.
On Thursday, July 23, 2009 the Small Business Committee,
Subcommittee on Finance and Tax held a hearing to examine
proposed legislative initiatives to address deficiencies in the
SBA's lending and investment programs that had been identified
by previous hearings before the Committee. Witnesses at this
hearing discussed several legislative proposals that would make
a number of important reforms to the SBA's existing programs
and establish new programs that will help close the gap for
equity investment that was left when the SBA's investing
programs were curtailed.
On October 14, 2009, the Committee held a hearing to review
proposed legislation to address deficiencies in the SBA's
lending and investment programs that had been identified by
previous hearings before the Committee. Witnesses at this
hearing expressed their support for several legislative
proposals to reform the SBA's existing programs to help close
the gap for equity investment.
D. Disaster programs
The Committee conducted oversight of SBA's Disaster program
during the 111th Congress. On July 29, 2009, the Committee held
an agency oversight hearing that focused on a GAO examination
of the SBA's Disaster program. This hearing reviewed the
agency's progress in making improvements post-Katrina and made
recommendations for improvements.
In addition, the Committee authored, considered, and passed
legislation to improve the Disaster program. This legislation,
H.R. 3743, passed the House on November 6, 2009.
E. Entrepreneurial development programs
The Committee continued to monitor and update SBA
Entrepreneurial Development (ED) programs to ensure the
agency's technical assistance and training resources meet the
needs of small business owners, particularly as they address
challenges in the current economic climate. The Committee
evaluated the agency's core ED programs, including Small
Business Development Centers, Women's Business Centers, SCORE,
as well as Native American and Veterans Outreach assistance, in
terms of service gaps, resource needs, and policy
recommendations. New initiatives were also considered to expand
the business assistance resources available to current
entrepreneurs.
To assess the ED programs assistance to small business
during the economic downturn and identify new business
development needs, the Committee on Small Business held a
hearing entitled ``The State of SBA's Entrepreneurial
Development Programs and Their Role in Promoting an Economic
Recovery'' on February 11, 2009. The overall effectiveness of
the agency's business management and training services were
evaluated as well as the capacity of these initiatives to spur
growth in the nation's economy. The Committee received
testimony from SBA ED program administrators, including
representatives of the Associations of Small Business
Development Centers and Women's Business Centers, regarding
institutional and resource needs to operate these services as
demand for assistance increases.
Proposed legislative updates to SBA's ED programs were
evaluated by the Subcommittee on Rural and Urban
Entrepreneurship on April 2, 2009, in a hearing entitled
``Legislative Proposals to Strengthen SBA's Entrepreneurial
Development Programs.'' Program administrators and small
business representatives assessed the quality of services to be
established through the bill available to firms through an
expansion of resources and policy modifications to the
programs.
Updates to the bill were incorporated in bill, H.R. 1803,
``Veterans Business Center Act of 2009, which expands the
agency's ED resources for veteran entrepreneurs. The House
approved the bill on July 28, 2009 by voice vote. The
legislation was sponsored by the Chairman of the Subcommittee
on Contracting and Technology, Committee on Small Business,
Representative Nye.
Legislation to establish distance learning ED resources for
small businesses across the country, H.R. 1807, ``Educating
Entrepreneurs through Today's Technology Act,'' was approved by
the House on July 28, 2009 by voice vote. The bill was
sponsored by Rep. Glenn Thompson.
The Committee evaluated comprehensive legislation to
reauthorize SBA's ED programs on May 6, 2009. Small business
representatives highlighted the critical gaps in the agency's
business assistance services that the proposed legislation
addressed.
On May 20, 2009, the House of Representatives voted in
support of H.R. 2352, ``The Job Creation Through
Entrepreneurship Act of 2009,'' by 406-15 which comprehensively
reauthorized and updated SBA's ED programs. The bill was
sponsored by the Chairman of the Subcommittee on Rural and
Urban Entrepreneurship, Committee on Small Business,
Representative Shuler.
F. Government contracting and business development programs
The Committee conducted regular oversight through hearings
on SBA's contracting programs, which reviewed the challenges
that small firms face in making use of these initiatives. In
particular, the Committee focused on fraud in the SBA's HUBZone
and Service-Disabled Veteran-Owned Small Business (SDVOSB)
contracting programs.
This included hearings on a GAO Investigation of the SBA's
HUBZone Contracting Program on March 25, 2009 and a GAO
Investigation of the SBA's Service-Disabled Veteran-Owned Small
Business Contracting Program on November 18, 2009. These
hearings demonstrated that these programs were susceptible to
fraud and that the SBA needs to take immediate corrective
action. Additional hearing pertaining to the SDVOSB program
were conducted on May 24, 2010 and July 15, 2010 and pertaining
to the HUBZone program on July 28, 2010.
In addition, the Committee conducted a hearing that
examined small business procurement issues, including the
performance of SBA's contracting programs. This hearing,
entitled Small Business Participation in the Federal
Procurement Marketplace, occurred on March 24, 2010.
G. Small Business Innovation Research (SBIR) and Small
Business Technology Transfer (STTR) programs
The Committee on Small Business undertook a comprehensive
reauthorization effort of the SBIR and STTR programs during the
111th Congress. This included oversight and legislative
hearings, meetings with key stakeholders, and consideration of
reauthorization legislation in both the Committee and on the
House floor.
In the 111th Congress, the Committee on Small Business
convened a hearing on April 22, 2009 to explore the numerous
contributions that the SBIR program makes to national security
priorities, health technology, economic development objectives
and America's international economic competitiveness. On June
4, 2009, the Committee on Small Business, Subcommittee on
Contracting and Technology held a hearing to review proposed
legislation, which would become H.R. 2965 and would reauthorize
the SBIR program. A further hearing on H.R. 2965 was held at
the full Committee on June 17, 2009. Witnesses testified on the
legislation's broad benefits to small businesses and American
innovation. Ultimately, the legislation was considered and
passed the House by a vote of 386 yeas and 41 nays.
H. Office of Advocacy
The Committee conducted oversight of the Office of Advocacy
through the annual budget process. The Committee made
recommendations concerning the Office of Advocacy's budget and
raised concerns that the administration had not yet confirmed a
Chief Counsel, which was addressed through a recent recess
appointment of Winslow Sargeant in August 2010.
I. Veterans Corporation
The Committee continued to monitor the performance of the
National Veterans Business Development Corporation (NVBDC) and
to work to improve the services delivered through the
organization to veteran entrepreneurs. The Committee worked to
shift the administration of the NVBDC's Veterans Business
Outreach Centers to the Small Business Administration. The
shift was conducted to enhance the effectiveness of these
outreach facilities and increase the efficiency of resources
allocated to assist veteran entrepreneurs.
II. Agriculture
The Committee conducted regular oversight of agricultural
issues that affect small businesses and family farmers. On July
22, 2009 the Committee held a hearing entitled ``Meeting the
Needs of Small Businesses and Family Farmers in Regulating our
Nation's Waters.'' The nation's waterways play a critical role
in all acts of commerce, especially when it comes to small
businesses and agriculture. The Committee took the opportunity
to evaluate the regulatory framework for our nation's waters
and the concerns of small business and family farmers. The
Committee heard from farmers and small businesses on ways to
ensure that the federal regulation of waterways meets the needs
of our environment and economy.
On Thursday, July 30, 2009 the Subcommittee on Rural
Development, Entrepreneurship and Trade, held a hearing
entitled, ``The Future of Specialty Crops for Small Family
Farmers.'' This forum provided a discussion of the current Farm
Bill programs, and how they will apply to fresh fruits and
vegetables. It enabled the Subcommittee to consider policies
that will further develop the industry's future during these
times of uncertainty. This Subcommittee was also able to hear
testimony from producers about how production will continue to
provide small businesses with a future in this industry, even
during a period of economic instability
The Committee also held several hearings on biofuels during
the 111th Congress. On March 4, 2009 held a hearing entitled,
``The State of the Renewable Fuels Industry in the Current
Economy.'' The hearing focused on access to capital issues, the
effect of volatile energy prices, and how the overall downturn
is affecting the renewable fuels industry. This forum also
examined current policies promoting renewable and next
generation fuels, including those in the 2008 Farm Bill. It
enabled the Committee to consider future policies that will
further develop the industry's future during these times of
uncertainty. The Committee heard testimony from small renewable
fuels producers and related industries on how they are
adjusting during a period of economic instability.
On May 21, 2009 the Subcommittee on Regulations and
Healthcare held a hearing on outstanding regulatory issues
impacting the domestic biofuels industry. The Subcommittee
heard testimony from witnesses who discussed pending renewable
fuel regulations and the regulatory framework affecting the
biofuels and related agriculture industries. This forum
examined the implementation of programs in the 2007 Energy Bill
as well as the 2008 Farm Bill.
In addition to hearings, the Committee conducted oversight
of biofuels issues through the legislative process. H.R. 3854
also amended the SBA's ``Renewable Fuel Capital Investment
Company'' (RFCIC) program. This program authorizes the creation
of new Renewable Fuel Capital Investment Companies (RFCICs),
which issue SBA guaranteed debentures to invest in small
businesses engaged in researching, manufacturing, developing,
and bringing to market renewable energy sources. In particular,
these Companies place specific emphasis on businesses that
produce biofuels.
The Committee examined the impact of climate change on
small businesses. On April 29, 2009 the Committee on Small
Business held a hearing entitled: ``Climate Change Solutions
for Small Businesses and Family Farmers.'' This forum was
critical when the House considered energy and climate change
legislation, as small businesses and family farmers will have a
critical role in any policy solutions. The hearing examined the
potential opportunities reforms can present and ensured the
needs of small businesses are addressed in crafting measures.
This forum led to the Chairwoman sending a letter outlining
small business and agriculture issues that should be addressed
during House consideration.
The hearing also offered an opportunity for panelists to
discuss existing industry practices as well as policy solutions
that can reduce greenhouse gas emissions while maintaining a
strong economy.
III. Energy
The Committee conducted oversight of the impact of energy
prices on small businesses. On August 25, 2009, the
Subcommittee on Investigations and Oversight held a field
hearing in Tulsa, Oklahoma on the impact of national energy
policy on small businesses. As Congress considered energy and
climate change legislation, it was appropriate to convene this
hearing to ensure that small businesses and family farmers
would have a critical role in any policy solutions. The hearing
examined the potential opportunities that potential reforms can
present and ensured that the needs of small businesses were
addressed in crafting measures. The Subcommittee heard
testimony from local energy businesses.
IV. Financial services and credit availability
The Committee undertook an extensive hearing agenda
pertaining to small business credit availability, holding six
hearings, including three field hearings. On March 26, 2009,
the Small Business Committee, Subcommittee on Oversight and
Investigations held a hearing to examine issues related to
investment in small businesses, with particular emphasis on how
prevailing economic conditions have affected investment in
small firms. Witnesses in this hearing explained how the
current recession has aggravated the need for investment funds,
particularly for equity investing in small firms, and how new
federal initiatives could allay those needs. The Committee held
a hearing on June 10, 2009 to examine the challenges facing the
full array of the SBA's capital access programs. Witnesses at
this hearing discussed various deficiencies affecting the
efficacy of these programs and proposed steps that could be
taken to better meet the SBA's capital access mission.
The Committee continued to review trends and conditions in
the credit markets. In a hearing held on October 7, 2009, the
Committee examined how the decline of the housing market
affected small firms' ability to grow, create jobs, and access
capital. During this hearing, the Committee also reviewed
conditions in the national credit markets as they related to
small businesses in the home building and real estate
industries.
The Committee conducted a series of field hearings that
occurred across the country that examined credit conditions
affecting small businesses. On May 17, 2010, the Subcommittee
on Investigations and Oversight held a field hearing in
Pittsburgh, Pennsylvania, entitled, ``Access to Capital for
Small Businesses.'' The purpose of the hearing was to examine
the state of small business lending, with particular emphasis
on the prevailing conditions in Western Pennsylvania. On April
19, 2010, the Subcommittee on Finance and Tax held a field
hearing in Sarasota, Florida, entitled, ``Access to Capital for
Small Businesses.'' The purpose of the hearing was to
investigate local commercial lending trends. Hearing witnesses
included local business owners and lenders. On August 4, 2009,
the Subcommittee on Finance and Tax held a field hearing in
Salem, Oregon on expanding access to capital for entrepreneurs
and spurring economic growth. The Subcommittee heard testimony
from the SBA's Portland District Office, local businesses, and
lenders.
In addition, on February 26, 2010, the Committee on Small
Business and the Committee on Financial Services held a joint
hearing entitled, ``Condition of Small Business and Commercial
Real Estate Lending in Local Markets.'' The purpose of this
hearing was to examine the state of small business lending and
the role that this activity would play in the economic
recovery. Additionally, this hearing reviewed the current state
and potential risks in the commercial real estate (CRE) sector
and explored how it relates to the small business lending and
real estate sectors. The hearing was comprised of three panels
of witnesses, including small business representatives and CRE
professionals; federal regulators and agency officials; and
lenders and investment companies.
The Committee also looked at the impact of changes to the
financial services regulatory structure on small firms. This
hearing, which was held on September 23, 2009, examined how
proposed changes to the structure and powers of federal
financial services regulators would impact smaller firms.
V. Health care
The Committee conducted oversight of health care issues and
their impact on small firms. In particular, the Committee
examined health care proposals. On February 4, 2009, the House
Committee on Small Business held a hearing entitled ``Health
Care Reform in a Struggling Economy: What's on the Horizon for
Small Business?'' The Committee discussed the challenge of
offering health insurance coverage for small businesses.
Particular attention was given to the leading health reform
proposals under consideration by Congress, and the
opportunities health reform may offer small firms and their
workers. On March 18, 2009, the Committee held a hearing
entitled ``The President's Budget and Medicare: How Will Small
Providers be Impacted?'' The Committee examined Medicare policy
within the President's budget outline for FY 2010. The purpose
of the hearing was to consider the Administration's proposed
changes to Medicare, and the implications it presents for small
medical practices and medical facilities. On June 3, 2009, the
Committee on Small Business held a hearing entitled ``Common
Ground: Finding Consensus on Health Reform, the Small Business
Perspective.'' The Committee examined the health reform debate
giving particular attention to those issues impacting the small
business community. Witnesses were asked to provide their views
on health reform, and where they see opportunities for
legislative consensus.
The Committee also examined the issues surrounding the
adoption of Health Information Technology. On June 24, 2009,
the Subcommittee on Regulations and Healthcare held a hearing
entitled ``Health IT Adoption and the New Challenges Faced by
Solo and Small Group Healthcare Practices.'' The Committee
discussed the challenges solo and small group practices face in
adopting health information technology (HIT). It also examined
the implementation of policies in the American Recovery and
Reinvestment Act of 2009 to promote Health IT adoption.
Congresswoman Kathy Dahlkemper, Chair of the Subcommittee on
Regulations and Healthcare, introduced H.R. 3014, the Health
Information Technology Financing Act of 2009, a small business
proposal designed to increase wider adoption of HIT by
providers through the Small Business Administration. H.R. 3014
passed the House on November 18, 2009.
Oversight was also conducted regarding issues facing small
medical practices and suppliers. On July 8, 2009, the Committee
on Small Business held a hearing entitled ``The Looming
Challenge for Small Medical Practices: The Projected Physician
Shortage and How Health Care Reforms Can Address the Problem.''
The Committee discussed the issue of physician supply and the
future of small medical practices. Specifically, witnesses
offered their views regarding the projected physician workforce
shortage, strategies to address the problem, and how current
trends have influenced care in rural and underserved areas. On
February 11, 2009, the Subcommittee on Rural Development,
Entrepreneurship, and Trade held a hearing entitled ``The
Impact of Competitive Bidding on Small Businesses in the
Durable Medical Equipment Community.'' The hearing focused on
the Centers for Medicare & Medicaid Services (CMS) final rule
on competitive bidding for durable medical equipment,
prosthetics, orthotics, and supplies (DMEPOS). Under the rule,
DMEPOS companies are required to submit bids, allowing CMS to
select suppliers based on cost and volume, or on potential
savings. Witnesses raised concerns about the bidding process
suggesting implementation of the program could lead to access
and quality problems.
The Committee also considered the impact of H1N1 Influenza
on small health care providers. On September 9, 2009, the
Committee on Small Business held a hearing entitled ``The
Challenges of the 2009-H1N1 Influenza and its Potential Impact
on Small Businesses and Healthcare Providers.'' The hearing
examined (1) the preparation of small business for H1N1
Influenza, (2) the financial impact a pandemic would have on
small business, (3) the stress the 2009-H1N1 outbreak could
place on small medical practices, and (4) the response of the
federal government.
VI. International trade
The Committee continued to monitor international trade
policies and programs impacting small businesses. Discussions
were held with Federal trade policy makers, including
Administrators of the Office of the U.S. Trade Representative,
the Department of Commerce, and the Small Business
Administration to ensure the promotion of small business
interests during the negotiation and enforcement of trade
agreements and the development of domestic trade policies that
support small businesses' competitiveness in the globalized
marketplace.
The Committee continued to work with administrators of
federal technical and financial assistance programs, including
officials from the Department of Commerce and the Small
Business Administration, to ensure small firms participating in
the international marketplace have access to resources to
adjust to challenging business conditions impacting their
ability to spur employment and economic growth. To evaluate the
job creation role of small business-dominated industries
integrated into the global economy, the Committee held a
hearing entitled, ``The Role of Small Business Suppliers and
Manufacturers in the Domestic Auto Industry'' on May 13, 2009.
The hearing examined the implications of the current economic
conditions upon the domestic automobile industry's capacity to
sustain small firms and their continued expansion and workforce
investments.
The Committee continued to monitor programs and their
resources developed to promote small businesses'
competitiveness in and access to the global marketplace.
Discussions were held with Administration officials and
business groups to identify appropriate services to meet export
assistance needs. Meetings were held with Export-Import Bank
officials to evaluate the effectiveness of programs designed to
increase lending resources for small business overseas
transactions and with Small Business Administration officials
to address gaps in that agency's financial and technical
assistance resources. To reduce gaps in technical and financial
assistance programs established for small firms engaged in
international trade, the Committee held a hearing entitled
``Evaluating the Impact of Small Business Trade Policy on Job
Creation and Economic Growth.'' The Committee received
testimony from small firms from various sectors to identify the
tools and assistance necessary to profitably pursue a global
business strategy.
The Committee continued to work with federal trade
regulation administrators regarding the development and
enforcement of rules impacting small businesses involved in
international trade transactions. The Committee met with
officials of the Office of the U.S. Trade Representative to
ensure the international agreements included regulations
customized to the needs of small firms, particularly regarding
physical presence requirements and trade enforcement
procedures. The Committee also met with business industry
representatives to evaluate efforts to reduce the burden of
regulations upon international transactions. To examine the
challenges small firms face from illegally trafficked products,
the Committee held a hearing on June 18, 2009 entitled
``Textile Import Enforcement: Is the Playing Field Level for
American Small Businesses?'' The Committee received testimony
from U.S. government trade officials and small businesses in
the textile industry to examine whether enforcement of textile
laws is adequate.
The Committee continued to monitor the qualitative and
quantitative data collected to measure trends in small business
trade transactions and the level of federal assistance to
promote these activities. The Committee met with officials from
the U.S. Export-Import Bank and the Small Business
Administration to evaluate the agencies' efforts to track the
level of service and impact from these programs upon small
firms.
VII. Procurement
The Committee conducted oversight of federal procurement
matters pertaining to small businesses. On March 24, 2010, the
Committee on Small Business held a hearing on issues related to
small business procurement. The focus of the hearing was on
small businesses' participation in the federal procurement
marketplace and what steps should be taken to modernize the
government's efforts in this area. The Committee examined
several issues, including the potential for small business
reforms to the Federal Acquisition Regulation (FAR) and the GSA
schedule, the need to expand small firms' access to multiple
award and multiple agency contracts, the adequacy of the
acquisition workforce and contract bundling. Witnesses
represented small businesses from a wide range of industries
and demographics including veterans, women, aerospace,
engineering, and consulting.
In addition, the Committee conducted oversight of federal
procurement practices related to the American Recovery and
Reinvestment Act (ARRA). The Subcommittee on Contracting and
Technology held a hearing entitled ``Ensuring Stimulus
Contracts for Small and Veteran-Owned Businesses'' on March 12,
2009. This hearing reviewed federal agencies' efforts to
provide small businesses and veteran-owned small businesses
with contracting opportunities contained in ARRA. The Committee
examined federal actions to date, as well as recommendations
for ensuring small business participation in ARRA-related
infrastructure projects. The Committee considered these efforts
in the context of small business procurement law, including the
applicability of subcontracting requirements, protections under
the Federal Acquisition Regulation (FAR), and the application
of federal small business goals.
VIII. Regulations
The Committee convened hearings pertaining to federal
regulations' impact on small firms. On May 14, 2009, the
Subcommittee on Investigations and Oversight held a hearing
entitled ``The Consumer Product Safety Improvement Act and
Small Business.'' The Acting Chairman of the Consumer Product
Safety Commission, Nancy Nord, delivered testimony. The
Subcommittee heard testimony from small business manufacturers
of children's products. The small firms discussed the
challenges they face in complying with the Consumer Product
Safety Improvement Act. The Subcommittee explored how the CPSC
can minimize related regulatory burdens on small businesses.
On March 11, 2009, the Subcommittee on Regulations and
Healthcare held a hearing entitled, ``Impact of Food Recalls on
Small Businesses.'' The Food and Drug Administration and U.S.
Department of Agriculture testified on how their agencies
responded to a rash of food recalls occurring in the months
before the hearing, and how they work with small businesses
during recalls. Representatives of small firms discussed the
severe economic impact that food recalls have on their
businesses, and what should be done to reduce the incidence of
such recalls.
In addition, the Committee sent several letters to the
administration concerning regulatory matters. On April 8, 2009,
the Chairwoman submitted a letter to the Chairman of the
Federal Trade Commission regarding the Commission's lack of
compliance with the Regulatory Flexibility Act on the final
rule implementing provisions of the Fair and Accurate Credit
Transactions Act of 2003 pertaining to identity theft ``red
flags'' (72 Fed. Reg. 63718). On May 1, 2009, the Chairwoman
sent a letter to the Director of the Office of Management and
Budget urging him to strengthen the voice of small businesses
in the Federal rulemaking process in his recommendations to the
President for a new executive order on Federal regulatory
review.
IX. Taxation issues
The Committee held a wide range of hearings on tax matters
pertaining to small businesses. This included several forums on
the IRS and its impact on small firms. On April 1, 2009, the
Commissioner of the IRS, Douglas Shulman, testified before the
Committee on a wide range of small business tax issues. The
hearing explored the IRS's efforts to make it as easy possible
for small businesses to comply with the tax code and also how
the IRS plans outreach to small businesses so that the IRS can
understand the needs and concerns of small businesses. After
the hearing, the Committee sent a letter to the IRS detailing
small business concerns and the Commissioner responded via
letter and assured the Committee it will work closely with the
Chair regarding all small business tax issues.
A follow-up hearing was conducted on April 14, 2010, when
the Committee held a hearing entitled ``Entrepreneurs and Tax
Day: How the IRS Policies and Procedures Impact Small
Businesses.'' The Committee discussed the Internal Revenue
Service's relationship with small businesses and the agency's
efforts to simplify the tax code for small businesses. The
hearing explored the administrative burdens for small
businesses regarding tax compliance and examinations while
examining strategies the IRS could implement to aide small
businesses. The hearing also assessed small business outreach
programs within the IRS, paying special attention to the
agency's response to tax law changes created by the Recovery
Act. Specifically, the hearing focused on staffing and
procedures the IRS utilized to ensure effective administration
of the Recovery Act. Committee Members also evaluated how the
National Research Program on Employment Taxes will impact small
businesses and steps the IRS will take to reduce the
administrative burdens associated with the study.
In addition, on May 7, 2009, the Subcommittee on Finance
and Tax held a hearing highlighting the growing complexity of
the Internal Revenue Code and the impediments this creates for
small businesses. The hearing focused on ways to simplify the
tax code, make it more efficient, and less burdensome to comply
with. Shortly after the hearing, Congressman Schrader
introduced a tax simplification bill that created a standard
deduction for those operating a business out of their homes.
The Committee held several hearings pertaining to tax
incentives to promote small business expansion. On July 15,
2009, the Committee held a hearing analyzing the tax provisions
contained in the stimulus package that benefitted small
businesses during the recession and what more needs to take
place to revive our economy. Realizing the economic situation
our country was facing early in the year, Congress passed the
American Recovery and Reinvestment Act of 2009 (ARRA) to
jumpstart the economy. ARRA contained a variety of tax rebates,
credits, deductions, and other incentives directly targeted at
small businesses. The hearing focused on whether small
businesses had utilized these provisions.
The Committee held a hearing on September 30, 2009
examining tax provisions that are due to expire at the end of
the year and their importance to small businesses. Commonly
known as ``tax extenders'', Congress on an annual or bi-annual
basis extends certain tax provisions that encourage business
investment, and promotes consumer spending. The hearing took on
increased importance since the economy had recently shown signs
of improvement. The witnesses stressed that to sustain that
economic momentum, Congress should extend these important tax
provisions.
On May 5, 2010, the Committee held a hearing to examine tax
policies that support small business growth and job creation.
In particular, the Committee focused on expiring tax incentives
created or extended by the Recovery Act, such as favorable
depreciation and expensing schedules and energy tax credits.
The hearing also examined proposed tax incentives, such as
increasing and expanding tax rules related to expensing,
business start up costs and deductions for meals and
entertainment. The purpose of the hearing was to discuss the
impact tax incentives have on small business job creation and
growth.
The Committee also looked at specific policies that promote
small business growth. On July 14, 2010, the House Committee on
Small Business held a hearing entitled ``Bonus Depreciation:
What it Means for Small Business.'' The hearing focused on
bonus depreciation and evaluated how it benefits small
businesses. Bonus depreciation offers flexibility and increased
cash flow to businesses by providing a 50 percent immediate
deduction on the cost of new property. The hearing gave members
of the Committee the opportunity to evaluate the effectiveness
of bonus depreciation in small business investments and assess
how the secondary effect of increased demand benefits the
overall economy.
In addition to bonus depreciation, the Committee reviewed
the research and development tax credit. On July 9, 2009, the
Subcommittee on Contracting and Technology held a hearing on
the research and development tax credit and the role it plays
in innovation and growth for America's small businesses. The
witnesses detailed that the research and development tax credit
is vital for American companies looking to stay ahead in
increasingly global economy. They emphasized that capital and
research lead to new inventions, product, and ultimately jobs.
However, since capital and research can take place almost
anywhere in the world, it is important for the U.S. economy to
keep pace with the rest of the world changes need to be made.
The panel argued that the credit needs to be made a permanent
part of the tax code so that firms can rely on the incentive
when planning their research budgets. Additionally, the
witnesses noted that the complexity of the provision needs to
be reduced so that more and more small businesses can take
advantage of the credit.
Another specific tax policy the Committee examined was the
first time home buyer tax credit. On October 7, 2009, the
Committee held a hearing entitled ``The State of the Nation's
Housing Sector: An Examination of the First Time Buyer's Credit
and Future Policies to Sustain a Recovery.'' The Committee
examined the current state of the nation's housing sector and
the millions of small businesses who operate in it. The hearing
assessed the impact of the first-time homebuyer tax credit and
federal policies affecting the real estate industry.
The Committee also considered the impact of the estate tax
on small firms. On November 4, 2009, the Committee held a
hearing regarding this issue. The hearing highlighted the
concerns small businesses have with the uncertainty surrounding
the estate tax regime. The witnesses detailed how the
complexity and uncertainty surrounding the estate has increased
operational costs for their respective businesses and made
planning nearly impossible. Further, the witnesses detailed
that the estate tax is especially burdensome for capital
intensive businesses such as family farms and those in the
printing industries.
X. Technology and innovation
The Committee conducted oversight of technology policy
issues and their impact on small firms. On October 28, 2009,
the Committee held a hearing entitled ``The Recovery Act and
Broadband: Evaluation of Broadband Investments on Small
Businesses and Job Creation.'' The Committee heard testimony
from government and industry representatives on steps to
advance broadband deployment and adoption through American
Recovery and Reinvestment Act of 2009 (ARRA) programs. Through
this hearing, the Committee examined the impact on small firms
and the importance of these programs in job creation.
On May 12, 2010, the Committee held a hearing entitled
``Small Businesses and Broadband: An Engine for Economic Growth
and Job Creation.'' The hearing examined the transformative
effect that innovative broadband applications and services have
on small businesses. During this hearing, the Committee heard
from small businesses on how broadband is helping to expand
their business, grow the economy and create new jobs.
On July 21, 2010, the Committee held a hearing entitled
``The Impact of Intellectual Property on Entrepreneurship and
Job Creation.'' The hearing examined the importance of
intellectual property to the growth of small businesses and the
broader economy. Witnesses shared their perspective on the
steps needed to support job creation and the long-term health
of small businesses in IP-intensive industries.
XI. Transportation and infrastructure
The Committee conducted oversight of transportation issues
and their impact on small firms. The Subcommittee on
Investigations and Oversight, on July 16, 2009, held a hearing
entitled ``The Upcoming Highway Bill and Ensuring It Meets the
Needs of Small Business.'' The hearing examined how highway
funding impacts small firms; how small contractors are utilized
in highway projects; and, the impact of transportation networks
on small businesses.
XII. Veteran's entrepreneurship
The Committee worked to expand veteran entrepreneurial
assistance. Specifically, the Committee considered the emerging
business assistance needs of these entrepreneurs, including
service disabled, women, and Reservist members. To evaluate the
usefulness of current entrepreneurial development resources for
veterans, the Committee held a hearing on February 11, 2009
which examined the SBA's assistance programs, including their
effectiveness serving the expanding small business population.
Testimony was provided by small business representatives
providing recommendations for increasing training and technical
assistance tools while ensuring they are appropriate for all
entrepreneurs.
The Committee identified additional federal efforts to
expand veterans' opportunities in the federal marketplace and
endeavored to make sure that these entrepreneurs are able to
compete for their fair share of federal contracts. The
Committee held a hearing on March 12, 2009, which focused on
veteran owned business and service disabled veteran owned
business participation in federal contracting in general and
stimulus contracting in particular. Representatives of the
Department of Veterans Affairs, the Small Business
Administration, the Department of Defense, the Department of
Transportation and the Department of Energy as well as veteran
and service disabled business owners testified. The purpose of
the hearing was to ensure that the agencies improve their
efforts to use and meet Service Disabled Veteran-Owned Small
Business (SDVOSB) and Veteran-Owned Small Business (VOSB)
procurement goals.
The Committee continued to monitor the quality and level of
services provided by Federal veteran entrepreneurial
development programs. The Committee also considered ways to
improve the effectiveness of the Small Business
Administration's veteran business assistance resources.
Legislative proposals to enhance entrepreneurial development
assistance, including for veteran small business owners, were
considered at a hearing on April 2, 2009 by the Subcommittee on
Rural and Urban Entrepreneurship. Legislation to expand the
resources available for outreach and training to assist veteran
entrepreneurs was developed through HR 1803, Veterans Business
Center Act of 2009. The House approved the bill on July 28,
2009.
The Committee considered efforts to enhance tools for
separating service members' interested in transitioning to
entrepreneurial enterprises. To provide active service members
with comprehensive counseling services and training sessions,
federal veteran assistance programs were expanded to this
sector. A legislative initiative was established to improve
entrepreneurial development resources for potential veteran
entrepreneurs through the Military Entrepreneurship Program.
The program was designed to provide business counseling and
entrepreneurial development assistance to members of the Armed
Forces and establishes a liaison to facilitate outreach to
these members. Additional legislative provisions were
established to establish eligibility for Reservists and
Guardsman for SBA's entrepreneurial development services as
these members face ongoing military responsibilities while many
attempt to maintain small businesses. The initiatives were
incorporated into H.R. 2352, ``the Job Creation through
Entrepreneurship Act of 2009,'' which the House approved on May
21, 2009.
The Committee continued to consider approaches to increase
the coordination of Federal veteran entrepreneurial assistance
resources. The Committee helped to transfer the administration
of the Veterans Business Outreach Centers from the National
Veterans Business Development Corporation to the Small Business
Administration in order to increase the efficient use of
federal resources and centralize the administration of these
outreach facilities. The Committee is working with the SBA to
create an integrated network of assistance centers that will
disseminate best practices and improve service delivery for
veterans across the country who are seeking tools to grow their
businesses.
XIII. Workforce issues
The Committee convened several hearings that examined
worforce issues and policies to promote job creation. On
October 28, 2009, the Committee held a hearing entitled ``The
Recovery Act and Broadband: Evaluation of Broadband Investments
on Small Businesses and Job Creation.'' The Committee heard
testimony from government and industry representatives on steps
to advance broadband deployment and adoption through American
Recovery and Reinvestment Act of 2009 (ARRA) programs. Through
this hearing, the Committee examined the impact on small firms
and the importance of these programs in job creation.
On March 17, 2010, the Committee on Small Business held a
hearing entitled ``Business Incubators and Their Role in Job
Creation.'' The purpose of the hearing was to evaluate the
overall effectiveness of incubators in promoting employment
growth within the current economic conditions. The hearing
considered how these business development facilities and
programs can contribute to an employment-focused economic
recovery as well as current obstacles to their effectiveness.
On April 28, 2010, the Committee on Small Business held a
hearing entitled ``Evaluating the Impact of Small Business
Trade Policy on Job Creation and Economic Growth.'' The purpose
of the hearing was to examine the effect of international trade
policies on small firms' ability to stimulate economic growth.
The hearing considered the effectiveness of current trade
promotion programs designed for small businesses as well as
recommendations to ensure these resources contribute to an
employment-focused recovery.
Hearings Held Pursuant to Clauses 2(n), (o), and (p) of House Rule XI
The Committee held a hearing on March 25, 2009 to assess
the extent of the fraud and management problems in the SBA's
Historically Underutilized Business Zone Empowerment
Contracting (HUBZone) program and whether or not the agency
implemented GAO recommendations from 2008 regarding these
problems. In addition, GAO reviewed its findings regarding the
``credit elsewhere'' requirement of the Small Business
Administration's (SBA) 7(a) loan program. GAO's Managing
Director of Forensic Audits and Special Investigations, Greg
Kutz, testified on GAO's findings of the expanded fraud
investigation the Committee requested in 2008. Bill Shear,
Director of Financial Markets and Community Investment at GAO,
provided a progress report on the recommendations GAO made in
2008 to strengthen the operation of the HUBZone program and
also reviewed GAO's findings on the ``credit elsewhere''
standard as it is applied to 7(a) loans. The SBA testified
about their progress in resolving problems uncovered in these
programs.
On July 29, 2009, the Committee held a hearing to fulfill
its mandate of performing Quarterly Congressional Oversight of
the SBA. The purpose of the hearing was to review the SBA's
progress in addressing identified deficiencies in its various
programs. Specifically, this hearing focused on the SBA's
progress in implementing legislative reforms to its Disaster
Assistance program and the HUBZone program. The Committee
received testimony from the SBA Administrator as well as from
the Government Accountability Office.
The Committee on Small Business held a hearing on November
19, 2009 that focused on the SBA's operation of the Service-
Disable Veteran-Owned Small Business (SDVOSB) procurement
program. Witnesses included SBA Administrator Karen Mills and
Mr. Kutz, GAO's Managing Director of Special Investigations.
GAO testified regarding SBA's fraud prevention controls for the
SDVOSB program. It found that ten contracts were let to
ineligible firms. GAO also determined that over $100 million in
sole source or restricted competition SDVOSB contracts and $300
million in other contracts went to those 10 ineligible firms.
GAO uncovered that one firm did not employ any service disabled
veteran and, in four cases, found that SBA had previously found
the firms ineligible after bid protests, but that the
contracting agencies had allowed the contracts to proceed. The
majority of the cases involved ineligible firms, including some
large and one foreign-owned firm, which used an SDVOSB ``front
company'' to ``pass-through'' the benefits of the contract.
On Wednesday April 21, 2010, the Committee held a hearing
to fulfill its mandate of performing Quarterly Congressional
Oversight of the SBA. The purpose of the hearing was to receive
the report of an audit conducted by the SBA's Office of the
Inspector General to determine whether Certified Development
Companies (CDCs) that participate in the Premier Certified
Lender (PCL) loan program exercised prudent underwriting
practices when making SBA loans and whether the compensation
practices of CDC executives were excessive relative to the
gross receipts of CDCs. The results of this report found
widespread deficiencies within the PCL program and determined
that in 4 out of 5 instances, PCLs were paying out excessive
executive compensation. Witnesses at this hearing included the
Administrator of the SBA and the SBA Inspector General.
On July 28, 2010, the Committee held a hearing to examine a
recent Government Accountability Office (GAO) report on the
Historically Underutilized Business Zone (HUBZone) Program, the
agency's response to the BP Oil Spill, and progress made in
implementing GAO's recommendations concerning the Service-
Disabled Veteran-Owned Small Business program, and several
other matters. The Committee heard testimony from the Karen
Mills, Administrator of SBA and Greg Kutz, Managing Director of
Forensic Audits and Special Investigations at GAO.
APPENDIX I--COMMITTEE LEGISLATION
PART A--COMMITTEE REPORTS
Reports filed by the Committee on Small Business with the
House
111-112: To Accompany H.R. 2352, a bill to amend the Small
Business Act, and for other purposes. May 15, 2009
111-190: To Accompany H.R. 2965, a bill to amend the Small
Business Act with respect to the Small Business Innovation
Research Program and the Small Business Technology Transfer
Program, and for other purposes. June 26, 2009
111-315: To Accompany H.R. 3854, a bill to amend the Small
Business Act and the Small Business Investment Act of 1958 to
improve programs providing access to capital under such Acts,
and for other purposes. October 26, 2009
PART B--PUBLIC LAWS
This table lists measures that contained matters within the
jurisdiction of the Committee on Small Business, which were
enacted into law during the 111th Congress.
1. [111th] H.R. 1: American Recovery and Reinvestment Act
of 2009
Sponsor: Rep. Obey, David R. [WI-7] (introduced 1/26/2009)
Latest Major Action: Became Public Law No: 111-5
2. [111th] H.R. 1541: To provide for an additional
temporary extension of programs under the Small Business Act
and the Small Business Investment Act of 1958, and for other
purposes.
Sponsor: Rep. Velazquez, Nydia M. [D-NY-12] (introduced 3/
17/2009)
Latest Major Action: Became Public Law No: 111-10
3. [111th] S. 1513: A bill to provide for an additional
temporary extension of programs under the Small Business Act
and the Small Business Investment Act of 1958, and for other
purposes.
Sponsor: Sen. Landrieu, Mary L. [LA] (introduced 7/24/2009)
Latest Major Action: Became Public Law No: 111-43
4. [111th] H.R. 3614: To provide for an additional
temporary extension of programs under the Small Business Act
and the Small Business Investment Act of 1958, and for other
purposes.
Sponsor: Rep. Velazquez, Nydia M. [D-NY-12] (introduced 9/
22/2009)
Latest Major Action: Became Public Law No: 111-66
5. [111th] S. 1929: A bill to provide for an additional
temporary extension of programs under the Small Business Act
and the Small Business Investment Act of 1958, and for other
purposes.
Sponsor: Sen. Landrieu, Mary L. [LA] (introduced 10/26/
2009)
Latest Major Action: Became Public Law No: 111-89
6. [111th] H.R. 4508: To provide for an additional
temporary extension of programs under the Small Business Act
and the Small Business Investment Act of 1958, and for other
purposes.
Sponsor: Rep. Velazquez, Nydia M. [D-NY-12] (introduced 1/
26/2010)
Latest Major Action: Became Public Law No: 111-136
7. [111th] H.R. 4691: Temporary Extension Act of 2010
Sponsor: Rep. Rangel, Charles B. [D-NY-15] (introduced 2/
25/2010)
Latest Major Action: Became Public Law No: 111-144
8. [111th] H.R. 4938: To permit the use of previously
appropriated funds to extend the Small Business Loan Guarantee
Program, and for other purposes.
Sponsor: Rep. Serrano, Jose E. [D-NY-16] (introduced 3/25/
2010)
Latest Major Action: Became Public Law No: 111-150
9. [111th] S. 3253: A bill to provide for an additional
temporary extension of programs under the Small Business Act
and the Small Business Investment Act of 1958, and for other
purposes.
Sponsor: Sen. Landrieu, Mary L. [LA] (introduced 4/22/2010)
Latest Major Action: Became Public Law No: 111-162
10. [111th] H.R. 5849: To provide for an additional
temporary extension of programs under the Small Business Act
and the Small Business Investment Act of 1958, and for other
purposes.
Sponsor: Rep. Velazquez, Nydia M. [D-NY-12] (introduced 7/
26/2010)
Latest Major Action: Became Public Law No: 111-214
11. [111th] H.R. 5297: Small Business Jobs and Credit Act
of 2010
Sponsor: Rep. Frank, Barney [MA-4] (introduced 5/13/2010)
Latest Major Action: Became Public Law No: 111-240
12. [111th] S. 3839: A bill to provide for an additional
temporary extension of programs under the Small Business Act
and the Small Business Investment Act of 1958, and for other
purposes.
Sponsor: Sen. Landrieu, Mary L. [D-LA] (introduced 9/24/
2010)
Latest Major Action: Became Public Law No: 111-251
APPENDIX II--COMMITTEE PUBLICATIONS
PART A--COMMITTEE HEARINGS
January 2009
January 14, 2009
Full Committee meeting on: ``The State of the Small
Business Economy and Identifying Policies to Promote Economic
Recovery''
January 28, 2009
Committee on Small Business Organizational Meeting
February 2009
February 4, 2009
Full Committee hearing on: ``Health Care Reform in a
Struggling Economy: What is in the Horizon for Small
Business?''
February 11, 2009
Subcommittee on Rural Development, Entrepreneurship and
Trade hearing on: ``The Impact of Competitive Bidding on Small
Businesses in the Durable Medical Equipment Community''
February 11, 2009
Full Committee hearing on: ``The State of SBA's
Entrepreneurial Development Programs and Their Role in
Promoting Economic Recovery''
February 25, 2009
Full Committee hearing on: ``Drop in Retirement Savings:
The Challenges Small Businesses Face Funding and Maintaining
Retirement Plans in a Struggling Economy''
March 2009
March 4, 2009
Full Committee hearing on: ``The State of the Renewable
Fuels Industry in the Current Economy''
March 11, 2009
Subcommittee on Regulations and Healthcare hearing on:
``Impact of Food Recalls on Small Businesses''
March 11, 2009
Full Committee Mark Up on Views and Estimates for SBA
Budget FY 2010
March 12, 2009
Subcommittee on Contracting and Technology hearing on:
``Ensuring Stimulus Contracts for Small and Veteran Owned
Businesses''
March 18, 2009
Full Committee hearing on: ``The President's FY 2010 Budget
and Medicare: How Will Small Providers Be Impacted?
March 25, 2009
Full Committee hearing on: ``Quarterly Congressional
Mandated Oversight of the SBA''
March 26, 2009
Subcommittee on Investigations and Oversight hearing on:
``Expanding Equity Investment in Small Businesses''
April 2009
April 1, 2009
Full Committee hearing on: ``IRS Oversight: Are Tax
Compliance Costs Slowing the Economy Recovery?''
April 2, 2009
Subcommittee on Rural Development, Entrepreneurship and
Trade hearing on: ``Legislative Initiatives to Modernize SBA's
Entrepreneurial Development Programs''
April 22, 2009
Full Committee hearing on: ``The Importance of Technology
in an Economic Recovery''
April 29, 2009
Full Committee hearing on: ``Climate Change Solutions for
Small Businesses and Family Farmers''
April 30, 2009
Subcommittee on Rural Development, Entrepreneurship and
Trade Markup on ED Programs Legislations
May 2009
May 6, 2009
Full Committee hearing on: ``Legislation to Reauthorize and
Modernize SBA's Entrepreneurial Development Programs''
May 7, 2009
Subcommittee on Finance and Tax hearing on: ``How the
Complexity of the Tax Code Hinders Small Businesses''
May 13, 2009
Full Committee hearing on: ``The Role of Small Business
Suppliers and Manufacturers in the Domestic Auto Industry''
May 13, 2009
Full Committee Markup of Entrepreneurial Development
Programs' Legislation
May 14, 2009
Subcommittee on Investigations and Oversight hearing on:
``The Consumer Product Safety Improvement Act and Small
Business''
May 20, 2009
Full Committee hearing on: ``Heroes of Small Business''
May 21, 2009
Subcommittee on Regulations and Healthcare hearing on:
``Impacts of Outstanding Regulatory Policy on Small Biofuels
Producers and Family Farmers''
June 2009
June 3, 2009
Full Committee hearing on: ``Common Ground: Finding
Consensus on Health Reform, the Small Business Perspective''
June 4, 2009
Subcommittee on Contracting and Technology hearing on:
``Legislative Initiatives to Strengthen and Modernize the SBIR
and STTR Programs''
June 10, 2009
Full Committee hearing on: ``Laying the Groundwork for
Economic Recovery: Expanding Small Business Access to Capital''
June 11, 2009
Subcommittee on Contracting and Technology Markup on
Legislations to Modernize the SBIR and STTR Programs
June 17, 2009
Full Committee hearing on: ``Legislative Initiatives to
Strengthen and Modernize the SBIR and STTR Programs''
June 18, 2009
Subcommittee on Rural Development, Entrepreneurship and
Trade hearing on: ``Textile Import Enforcement: Is the Playing
Field Level for American Small Businesses?''
June 24, 2009
Subcommittee on Regulations and Healthcare hearing on:
``Health Information Technology and Small Healthcare
Practices''
June 25, 2005
Full Committee Markup on Legislations to Modernize the SBIR
and STTR Programs
July 2009
July 8, 2009
Full Committee hearing on: ``The Looming Challenge for
Small Medical Practices: The Projected Physician Shortage and
How Health Care Reforms Can Address the Problem''
July 9, 2009
Subcommittee on Contracting and Technology hearing on:
``Helping Small Business Innovators through the Research and
Experimentation Tax Credit''
July 15, 2009
Full Committee hearing on: ``Economic Recovery: Tax
Stimulus Items that Benefitted Small Business with a Look
Ahead''
July 16, 2009
Subcommittee on Investigations and Oversight hearing on:
``The Upcoming Highway Bill and Ensuring it Meets the Needs of
Small Businesses''
July 22, 2009
Full Committee hearing on: ``Meeting the Needs of Small
Businesses and Family Farmers in Regulating Our Nation's
Waters''
July 23, 2009
Subcommittee on Finance and Tax hearing on ``Legislative
Proposals to Reform the SBA's Capital Access Programs''
July 29, 2009
Full Committee hearing on: ``Quarterly Congressional
Mandated Oversight of the SBA''
July 30, 2009
Subcommittee on Rural Development, Entrepreneurship and
Trade hearing on: ``The Future of Specialty Crops for Small
Family Farmers''
August 2009
August 4, 2009
Subcommittee on Finance and Tax field hearing in Salem,
Oregon on: ``Exploring Ways for Small Business Access to
Capital''
August 25, 2009
Subcommittee on Investigations and Oversight field hearing
in Tulsa, Oklahoma on: ``The Impact of Energy Policy on Small
Business''
September 2009
September 9, 2009
Full Committee hearing on: ``The Challenges of the 2009-
H1N1 Influenza and its Potential Impact on Small Businesses and
Healthcare Providers''
September 16, 2009
Subcommittee on Rural Development, Entrepreneurship and
Trade hearing on: ``The Role of Auto Dealers on Rural
Communities''
September 23, 2003
Full Committee hearing on: ``The Impact of Financial
Regulatory Restructuring on Small Businesses and Community
Lenders''
September 24, 2009
Subcommittee on Contracting and Technology hearing on:
``The Roles of Federal Labs in Spurring Innovation and
Entrepreneurship Across the U.S.''
September 30, 2009
Full Committee hearing on: ``Expiring Tax Incentives:
Examining their Importance for Small Businesses on the Road to
an Economic Recovery''
October 2009
October 7, 2009
Full Committee hearing on: ``The State of the Nation's
Housing Sector: An Examination of the First Time's Buyers
Credit and Future Policies to Sustain Recovery''
October 8, 2009
Subcommittee on Finance and Tax Markup on Access to Capital
Legislation
October 14, 2009
Full Committee hearing on: ``Increasing Access to Capital
for Small Business''
October 21, 2009
Full Committee Markup on Access to Capital Legislation
October 28, 2009
Full Committee hearing on: ``The Recovery Act and
Broadband: Evaluating the Impact on Small Business''
November 2009
November 4, 2009
Full Committee hearing on: ``Small Business and the Estate
Tax: Identifying Reforms to Meet the Needs of Small Firms and
Family Farmers''
November 19, 2009
Full Committee hearing on: ``Quarterly Congressional
Mandated Oversight of the SBA''
February 2010
February 26, 2010
Joint Small Business Committee and Financial Services
Committee hearing on: ``Condition of Small Business and
Commercial Real Estate Lending in Local Markets''
March 2010
March 4, 2010
Full Committee Mark-Up on SBA's FY 2011 Views and Estimates
March 17, 2010
Full Committee hearing on: ``Business Incubators and Their
Role in Job Creation''
March 24, 2010
Full Committee hearing on: ``Small Business Participation
in the Federal Procurement Marketplace''
April 2010
April 14, 2010
Full Committee hearing on: ``Entrepreneurs and Tax Day: How
the IRS Policies and Procedures Impact Small Businesses''
April 19, 2010
Subcommittee on Finance and Tax field hearing in Sarasota,
Florida on: ``Access to Capital for Small Businesses''
April 21, 2010
Full Committee hearing on: ``Quarterly Congressional
Mandated Oversight of the SBA''
April 28, 2010
Full Committee hearing on: ``Evaluating the Impact of Trade
Policy on Job Creation and Economic Growth''
May 2010
May 5, 2010
Full Committee hearing on: ``Tax Initiatives that Promote
Small Business Growth''
May 12, 2010
Full Committee hearing on: ``Small Businesses and
Broadband: An Engine for Economic Growth and Job Creation''
May 17, 2010
Subcommittee on Investigations and Oversight field hearing
in Pittsburgh, Pennsylvania on: ``Access to Capital for Small
Businesses''
May 24, 2010
Subcommittee on Contracting and Technology field hearing in
Norfolk, Virginia on: ``Veteran Contracting--Preventing Fraud''
May 26, 2010
Full Committee hearing on: ``Heroes of Small Business''
June 2010
June 30, 2010
Full Committee hearing on: ``Recovery in the Gulf: What the
$20 Billion BP Claims Fund Means for Small Business''
July 2010
July 14, 2010
Full Committee hearing on: ``Bonus Depreciation: What it
Means for Small Business''
July 15, 2010
Subcommittee on Contracting and Technology hearing on:
``Improving Contracting Opportunities and Preventing Fraud for
Service-Disabled Veteran-Owned Small Businesses''
July 21, 2010
Full Committee hearing on: ``The Impact of Intellectual
Property on Entrepreneurship and Job Creation''
July 22, 2010
Subcommittee on Rural Development, Entrepreneurship and
Trade hearing on: ``Coal Combustion Byproducts: Potential
Impacts of Hazardous Waste Designation on Small Businesses in
the Recycling Industry''
July 28, 2010
Full Committee hearing on: ``Quarterly Congressional
Mandated Oversight of the SBA''
July 29, 2010
Subcommittee on Investigations and Oversight hearing on:
``Impact of Interchange Fees on Small Business''
Total Hearings: 75
Full Committee Hearings: 45
Subcommittee Hearings: 28
Joint Hearings: 1
Committee Meetings: 1
Field Hearings: 5
Full Committee Legislative Markups: 5
Subcommittee Legislative Markups: 3