House Small Business Committee

Committee on Small Business Markup

House Small Business Committee News - Wed, 03/25/2015 - 1:00pm
On Wednesday March 25, 2015  the Committee on Small Business will hold a markup  at 1:00 P.M. to consider H.R. 1481, "Small Contractors Improve Competition Act of 2015." The markup will be held in Room 2360 of the Rayburn House Office Building.   The hearing will be webstreamed live HERE.

The markup will consist of the following bills:  H.R. 1481 " Small Contractors Improve Competition Act of 2015. It is possible that an amendment in the nature of a substitute or some other legislative vehicle will be provided Monday pursuant to the Committee's Rules.

Opening Statement:

Chairman Steve Chabot (R-OH)

    Related Documents:

  • Markup Notice 
  • H.R.1481
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    Small Business Committee Passes Contracting Reform Bill

    House Small Business Committee News - Wed, 03/25/2015 - 12:00am

    Small Business Committee Passes Contracting Reform Bill

    WASHINGTON – The Small Business Committee today passed legislation introduced by Chairman Steve Chabot (R-OH) to ensure more small businesses can compete for federal contracts and help save taxpayer money.

    H.R. 1481, the Small Contractors Improve Competition Act, makes a series of commonsense improvements to small business contracting policies to promote increased competition, a healthier industrial base, and a more cost-effective federal procurement process.

    “We know that when small businesses compete for federal work, it creates jobs, improves the quality of work, and saves taxpayers’ money,” said Chabot. “This bill is a commonsense approach to make sure that Washington is working with Main Street – not locking it out of the procurement process altogether.”

    The bill is the result of a series of hearings examining small business contracting policies, including a full committee hearing in February and two subcommittee hearings last week that further exposed how unjustified contract bundling, Administration policies devaluing small business subcontracting opportunities, and the improper use of reverse auctions are keeping small businesses from participating in the federal procurement process. It incorporates a number of proposals introduced by Small Business Committee Members, including:

    ·         H.R. 1386 introduced by Rep. Carlos Curbelo

    ·         H.R. 1390 introduced by Rep. Steve Knight

    ·         H.R. 1410 introduced by Rep. Amata Coleman Radewagen

    ·         H.R. 1429 introduced by Rep. Mike Bost

    ·         H.R. 1444 introduced by Rep. Richard Hanna

    ·         H.R. 1583 introduced by Rep. Cresent Hardy

    The Committee has received testimony supporting provisions of the bill from the American Council of Engineering Companies, Mechanical Contractors Association, Veterans Entrepreneurship Task Force, the American Legion, and the Professional Services Council.

    The bill has also been endorsed by:

    ·         The Associated General Contractors

    ·         The National Defense Industrial Association

    ·         Women Impacting Public Policy

    ·         National Electrical Contractors Association

    ·         American Institute of Architects

    ·         National Small Business Association

    ·         Mid-Tier Advocacy

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    Chabot Makes Second Request for Answers from HHS on Bad Obamacare Tax Information

    House Small Business Committee News - Mon, 03/23/2015 - 12:00am

    Chabot Makes Second Request for Answers from HHS on Bad Obamacare Tax Information

    WASHINGTON - Small Business Committee Chairman Steve Chabot (R-OH) followed up with a second request for answers from Health and Human Services Secretary Sylvia Burwell on the faulty tax information released to roughly 800,000 Americans at the height of tax season.

    Chabot sent his original letter, seen here, on February 25, 2015, with five inquiries related to how this bad information impacted Americans receiving health coverage through the Small Business Health Options Programs (SHOPs). "I asked specific questions regarding this incident and requested a response by March 6, 2015," Chairman Chabot said. "It is now March 23, 2015, and I have yet to receive anything from your office."

    In addition to the five questions Chabot originally asked, today's letter makes two further inquiries

    1. How many of these delayed 80,000 corrected forms will be sent or made available to small business owners who purchased insurance on the Small Business Health Options Program (SHOP)?

    2. What effort is the Department making, in conjunction with the Internal Revenue Service, to ensure that taxpayers will be able to file accurate and timely tax returns if they have received incorrect information concerning their health care coverage from HHS?

    Today's follow-up comes on the fifth anniversary of the signing of Obamacare into law and amid continued reports of small business struggles caused by the law. Chabot requested a response to his inquiries by close of business this Friday, March 27, 2015.

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    ICYMI: Despite Birthday Celebrations, the Blistering Truth About Obamacare and Small Businesses

    House Small Business Committee News - Mon, 03/23/2015 - 12:00am

    ICYMI: Despite Birthday Celebrations, the Blistering Truth About Obamacare and Small Businesses

    WASHINGTON - In the lead-up to the Obama administration's self-congratulatory celebration of the 5th anniversary of Obamacare today, national newspapers this weekend published a blistering account from the Associated Press of the law's crippling affect on American small businesses.

    Highlights from the report:

    “Complying with the health care law is costing small businesses thousands of dollars that they didn't have to spend before the new regulations went into effect.”

     “Many small businesses don't have the human resources departments or computer systems that large companies have, making it harder to handle the paperwork."

     “To pay for the extra services the business is getting from his broker, [small business manager Mike] Patton cut back on workers' bonuses and raises.”

     “Complying with the law costs small businesses more than $15,000 a year.

     On his employees facing another year of no bonuses or raises: “They understand it didn't emanate from us," Patton says. 

    This report and the anniversary come just weeks after Small Business Committee Chairman Steve Chabot (R-OH) requested answers from HHS Secretary Sylvia Burwell on the faulty tax information sent to more than 800,000 Americans and how this latest glitch impacts the Small Business Health Options Programs (SHOPs).

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    Chabot Introduces Small Business Contracting Reform Bill

    House Small Business Committee News - Fri, 03/20/2015 - 12:00am

    Chabot Introduces Small Business Contracting Reform Bill
    Incorporates solutions from New Committee Members

    WASHINGTON  –  On Thursday, Small Business Committee Chairman Steve Chabot (R-OH) introduced H.R. 1481, the Small Contractors Improve Competition Act.

    This bill is the result of a series of hearings examining small business contracting policies, including two Subcommittee hearings this week that further exposed how unjustified contract bundling, Administration policies devaluing small business subcontracting opportunities, and the improper use of reverse auctions are keeping small businesses from participating in the federal procurement process.

    In the last four years, the number of small businesses participating in federal procurement has fallen by over100,000 companies  and the number of contract actions being awarded to small businesses has fallen by nearly 60 percent.  This reduced competition ultimately increases the cost of goods and services for the federal government and diminishes the vibrancy of the industrial base, which threatens national security. 

    “Having a healthy small business industrial base means that taxpayers benefit from increased competition, innovation, and job creation,” said Chairman Chabot.  “It also means that we can support programs crucial to our national defense.  Small business contracting policies are intended  to make sure we have a broad spectrum of small firms working with the government across industries, and when those policies are undermined, it is imperative that we find appropriate solutions. These commonsense reforms move us in the right direction.”

    H.R. 1481 would make a series of improvements to small business contracting policies to promote increased competition, a healthier industrial base, and more cost-effective federal procurement process. The bill incorporates a number of legislative proposals introduced by Small Business Committee Members, including:

    ·         H.R. 1386 introduced by Rep. Carlos Curbelo

    ·         H.R. 1390 introduced by Rep. Steve Knight

    ·         H.R. 1410 introduced by Rep. Amata Coleman Radewagen

    ·         H.R. 1429 introduced by Rep. Mike Bost

    ·         H.R. 1444 introduced by Rep Richard Hanna

    In fiscal year 2013, small businesses won nearly $100 billion in federal prime contracts and nearly $90 billion in federal subcontracts.  This is roughly half of the dollars spent by the federal government in contracts, so increasing competition and reducing inefficiencies in the procurement process through small business contracting reform is critical to saving taxpayer money.

    The Committee has received testimony supporting provisions of the bill from Associated General Contractors, American Council of Engineering Companies, Mechanical Contractors Association, Women in Public Policy, Veterans Entrepreneurship Task Force, the American Legion and the Professional Services Council.  The bill has also been endorsed by the National Defense Industrial Association.

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    Contracting and the Industrial Base Part III: Reverse Auctions, Verification and The SBA's Role in Rulemaking

    House Small Business Committee News - Thu, 03/19/2015 - 10:00am

    On, March 19, 2015 at 10:00 a.m., the Small Business Subcommittee on Contracting and Workforce will hold a hearing titled, Contracting and  the Industrial Base Part III: Reverse Auctions, Verification and the SBA's Role in Rulemaking.  The hearing will be webstreamed live HERE.
     
    The purpose of the hearing  is to examine issues related to reverse auctions, The Small Business Administration's (SBA) and Department of Veterans Affairs (VA) contracting programs for service-disabled veteran owned small business and the enforcement and implementation of its statutory functions.

    Opening Statement:

    Richard Hanna (R-NY)

    ​Witness Testimony 

    • Mr. Daniel I. Gordon, Senior Advisor, Government Procurement Law Program, The George Washington University Law School, Washington, DC

     

    • Ms. Amber Peebles, President, Athena Construction Group, Inc. Dumfries, VA
    • Testifying on behalf of Women Impacting Public Policy

     

    • Mr. Davy Leghorn, Assistant Director, National Veterans Employment and Education Division, The American Legion, Washington, DC

     

    • Ms. Margot Dorfman, CEO, United States Women's Chamber of Commerce, Washington, DC
       

     

     

    Additional Items:

     

    Small Business Subcommittee Continues Examination of Contracting Issues

    House Small Business Committee News - Thu, 03/19/2015 - 12:00am

    Small Business Subcommittee Continues Examination of Contracting Issues

    WASHINGTON - Today, the Small Business Subcommittee on Contracting and Workforce, led by Subcommittee Chairman Richard Hanna (R-NY), examined small business contracting policies, with a particular focus on the improper use of reverse auctions, inconsistencies with service-disabled veteran owned small business programs, and the SBA’s delayed implementation of Congressional reforms.  

    “This hearing provided a valuable opportunity to discuss issues important to small businesses and veterans – two key drivers of our nation’s success,” Subcommittee Chairman Hanna said. “When contracting programs are overly burdensome, rules are inconsistent, and the implementation of Congressional reforms are seriously delayed, it creates confusion. Uncertainty holds small businesses back from growing and creating jobs. I look forward to working with Chairman Chabot and my colleagues to improve the federal contracting process for small businesses and our veterans.”

    Witnesses raised serious concerns about the SBA’s 5-year delay of implementation of small business contracting reforms. Amy Peebles, a Marine Corps Veteran running a service-disabled veteran owned small business described her frustration with the matter:  “…the delay in implementation of important small business contracting provisions is an ongoing frustration of women business owners… [This delay] is simply unfair to the businesses burdened by outdated, ineffective, or damaging policies Congress saw fit to change.”

    In addition, witnesses spoke to issues they have with the Department of Veteran Affairs verification process for determining the status of a service-disabled veteran-owned small business. One witness, testifying on behalf of the American legion described it as “overly burdensome” and urged lawmakers and regulators to “[strike] the appropriate balance” between government oversight necessary to combat fraud and the amount of oversight necessary to protect the integrity of the program.

    Testimony also shed light on the fact that the improper use of reverse auctions by agencies is having a detrimental impact on the purposes of using this type of bidding process, which are namely to spur competition and save tax dollars.

    Notable quotes:

    “The American Legion appreciates the goal of the government contracting community to lower federal expenditure through competitive contracting initiatives, but we are concerned that misuse of non-governmental platforms that have not suffered the scrutiny of the appropriations process, are putting veteran owned small businesses at risk and could also be serving to undermine the entire procurement process.”
    -Mr. Davy Leghorn, Assistant Director, National Veterans Employment and Education Division, The American Legion

    “In my opinion, any competition for a government contract, whether run electronically or “the old fashioned way,” that gets only one bid should be considered a failure. If the government is paying a fee to use an electronic reverse auction and only one bid is received, the government is paying a fee for that failed procurement.”
    -Mr. Daniel I. Gordon, Senior Advisor, Government Procurement Law Program, The George Washington University Law School

    “WIPP has two recommendations with regards to the timeline of SBA rule promulgation and FAR adoption. In our view, there is no reason these cannot be done concurrently. Any diversions between the proposed rules could be best addressed through increased cooperation between SBA and the FAR Council. One solution could be adding SBA to the FAR Council. WIPP supports this option because it would also give small businesses an advocate on the Council charged with maintaining acquisition procedures.”
    Ms. Amber Peebles, President, Athena Construction Group, Inc.

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    Tangled in Red Tape: New Challenges for Small Manufacturers

    House Small Business Committee News - Wed, 03/18/2015 - 11:00am
     

    On Wednesday, March 18, 2015, at 11:00 A.M., the Committee on Small Business will hold a hearing titled, ​ Tangled in Red Tape: New Challenges for Small ManufacturersThe hearing will be held in Room 2360 of the Rayburn House Office Building.

     

    The purpose of the hearing is to examine the effects of regulations on small manufacturers.  



    Broadcast live streaming video on Ustream

     

    Opening Statement:

    Chairman Steve Chabot (R-OH)

    Witnesses and Testimony:

     

  • Ms. Cynthia Reichard, Executive Vice President, Arylessence, Inc., Marietta, GA
  •  

     
  • Ms. Janis Herschkowitz, President & CEO, PRL, Inc. Cornwall, PA
  •  

  • Mr. Viktor Anderson, P.E. Director of Engineering, Structural Concepts, Muskegon, MI
  •  

  •  Mr. James Goodwin, Senior Policy Analyst, The Center for Progressive Reform, Washington, DC
    •        

     Additional Items:

     

     



     

     

    "Never-Ending Wave," "Tragic," "Disadvantage:" Small Manufacturers Describe Regulatory Burden in Small Business Committee Hearing

    House Small Business Committee News - Wed, 03/18/2015 - 12:00am

    "Never-Ending Wave," "Tragic," "Disadvantage:" Small Manufacturers Describe Regulatory Burden in Small Business Committee Hearing

    WASHINGTON—In today’s Small Business Committee hearing, “Tangled in Red Tape: New Challenges for Small Manufacturers,” real American small business employees told Committee members how excessive federal regulations burden small manufacturers.

    Chairman Steve Chabot (R-OH) started the hearing by showing attendees the stack of federal regulations from February 2015. “These are regulations that came out of the federal government in the last month alone,” Chabot explained. “How can we expect our small businesses to focus on creating jobs and bringing new ideas to life when, odds are, something in these pages will have an impact on them? And even worse, they likely had no input at all in what those regulations say.”

    We are not a large corporation with a plethora of resources to redirect towards the review, testing and compliance of new rules,” said Viktor Anderson of Structural Concepts in Muskegon, Michigan, a maker of commercial refrigerators. “With its never-ending wave of new rules and ever-more-stringent standards, the Administration is threatening our ability to do business and provide critical products to American consumers.”

    Janis Herschkowitz of PRL, Inc. in Cornwall, Pennsylvania, whose foundry makes parts for nuclear submarines, had a similar message. “The fact is there are very few foundries remaining in the U.S. who are able to meet the high specifications standards required by our nation’s military.” Herschkowitz went on to tell the Committee that “the bulk of the regulations would hit our small foundry the hardest, and to put it bluntly as a small business owner we would need to determine if it is even worth the cost of compliance. This is tragic.

    Cynthia Reichard of Arylessence, a fragrance manufacturer in Marietta, Georgia, told the Committee about the ways regulations are impacting her company’s growth plans, adding, “U.S. manufacturers simply need an environment conducive to growing and creating jobs. We need economic stability, certainty, predictability and common-sense regulations that don’t unfairly disadvantage small firms.”

    Chairman Chabot expressed his appreciation to the witnesses for taking valuable time away from their workplaces to share their stories with the Committee. “You’re not the bad guys,” Chairman Chabot told the witnesses. “If we want to remain a global economic leader, we have to modernize. We have to make the small businesses that provide livelihoods for about half of all American families a part of the solution, not the biggest loser in an economy that desperately needs them to succeed,” Chabot said.

    One solution discussed in the hearing was the Small Business Regulatory Flexibility Improvements Act, which passed the House earlier this year. Learn more about the Small Business Regulatory Flexibility Improvements Act here.

    Full testimony and footage from the hearing can be viewed here.

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    Contracting and Industrial Base II: Bundling, Goaling, and the Office of Hearings and Appeals

    House Small Business Committee News - Tue, 03/17/2015 - 10:00am
    The Subcommittee on Contracting and Workforce held a hearing titled ​Contracting and Industrial Base II: Bundling, Goaling, and the Office of Hearings and Appeals. The hearing was held at 10:00 A.M. on March 17, 2015 in Room 2360 of the Rayburn House Office Building. 

    The hearing examined contracting issues in the industrial base as it relates to bundling, consolidation and strategic sourcing, the Small Business Administration's (SBA) goaling processes and the jurisdiction and operation of the SBA's office of Hearings and Appeals.

    Opening Statement:

    Chairman Richard Hanna ( R-NY)

    Witnesses and Testimony:
     

  • Mr. Joe Wynn, President, VETS Group, Inc, Washington, DC

     

  • Mr.  Robert Burton, Partner, Venable, LLP, Washington, DC
  •  

  •  Mr. Alan Chvotkin, Executive Vice President and Counsel, Professional Services Council, Arlington, VA
  •  

  • Mr.  Damien Specht, Partner, Jenner & Block, Washington, DC
  •  

     

    Additional Items:

  • Hearing Notice
  • Witness List
  • Hearing Memo
  •  

     

    Small Business Subcommittee Examines Obama Administration Contracting Policies

    House Small Business Committee News - Tue, 03/17/2015 - 12:00am

    Small Business Subcommittee Examines Obama Administration Contracting Policies

    WASHINGTON  – On Tuesday, the Small Business Subcommittee on Contracting and Workforce, led by Subcommittee Chairman Richard Hanna (R-NY), examined the efficacy of small business contracting goals, particularly the impact of contract bundling, goaling, and the Small Business Administration’s (SBA) analysis of small firm participation.

    While more competition from small business contractors drive down prices and save taxpayers money, testimony revealed that more small businesses are being forced out of the contracting process altogether. At the hearing, witnesses addressed the fact that while data shows contract dollar amounts to small businesses have increased, so to have the size of those contracts, which necessarily limits the number of small firms that can compete for that work. Witnesses also raised concern over the SBA’s analysis of small business participation in federal procurements, describing it as “woefully inaccurate” and “flawed.”

    “More competition from small businesses saves the government money and ensures we have a vibrant industrial base,” Subcommittee Chairman Hanna said. “What we learned today is that contract bundling and consolidations, while well-intentioned, is excluding qualified small business from the federal marketplace. And the data and goaling scorecard we rely on to measure small business participation are failing us.  We must create an open contracting process in which more small businesses can compete and ultimately save taxpayers money.”

    Notable quotations:

    “Many small businesses find they are shut out of the contract process and eventually stop wasting time and money… and the country is weaker for it.” -Mr. Joe Wynn, President, VETS Group

    “The SBA’s current analysis does not reveal the true effects of bundling and consolidation on small business participation in federal procurements… it is more important than ever that bundling and consolidation regulations designed to protect small business participation are effectively implemented.” -Mr.  Robert Burton, Partner, Venable, LLP

    More needs to be done to improve the data reporting to track federal prime and subcontracting data.” -Mr. Alan Chvotkin, Executive Vice President and Counsel, Professional Services Council

    “I believe the purpose of small business programs is to create a vibrant and diverse base of small businesses … a higher percentage of spending that is isolated within a small number of firms is not a step in the right direction. -Mr. Damien Specht, Partner, Jenner & Block  

    “While SBA is agnostic about how an agency achieves its goals, we have seen how agencies have skewered their performance to focus on some of the “low hanging fruit” within their business opportunities and not looked across their enterprise for meaningful small business participation opportunities. As a result, agencies are, in effect, picking winners and losers in the small business market—and in the larger agency industrial base market—through these goal attainment decisions.” -Mr. Alan Chvotkin, Executive Vice President and Counsel, Professional Services Council,

     

    This was the second installment of three Subcommittee hearings on the topic of contracting reform. The Subcommittee will next meet on Thursday, March 19, to examine the federal government’s use of reverse auctions.

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    Next Week at Small Business:

    House Small Business Committee News - Fri, 03/13/2015 - 12:00am

    Next Week at Small Business: 
    "Tangled in Red Tape" and Contracting II and III

    WASHINGTON—The Small Business Committee will hold the following hearings during the week of March 16, 2015.

    Full Committee Hearing
    Chairman Steve Chabot (R-OH)
    Wednesday, March 18, 2015 at 11:00 A.M.
    2360 Rayburn House Office Building

    Tangled in Red Tape: New Challenges for Small Manufacturers
    On Wednesday, March 18, 2015, at 11:00 A.M., the Committee on Small Business will hold a hearing titled, ​ Tangled in Red Tape: New Challenges for Small Manufacturers. The hearing will be held in Room 2360 of the Rayburn House Office Building.

    The purpose of the hearing is to examine the effects of regulations on small manufacturers.  The hearing will be webstreamed live HERE.

    Witnesses:

    • Ms. Cynthia Reichard, Executive Vice President, Arylessence, Inc., Marietta, GA
    • Ms. Janis Herschkowitz, President & CEO, PRL, Inc. Cornwall, PA (Testifying on behalf of the American Foundry Society)
    • Mr. Viktor Anderson, P.E. Director of Engineering, Structural Concepts, Muskegon, MI (Testifying on behalf of the Air-Conditioning, Heating and Refrigeration Institute)
    • Mr. James Goodwin, Senior Policy Analyst, The Center for Progressive Reform, Washington, DC


    Subcommittee Hearing

    Subcommittee on Contracting and Workforce
    Chairman Richard Hanna (R-NY)
    Tuesday, March 17, 2015 at 10:00 A.M.
    2360 Rayburn House Office Building

    Contracting and Industrial Base II: Bundling, Goaling, and the Office of Hearings and Appeals
    The Subcommittee on Contracting and Workforce will hold a hearing titled ​Contracting and Industrial Base II: Bundling, Goaling, and the Office of Hearings and Appeals. The hearing will be held at 10:00 A.M. on March 17, 2015 in Room 2360 of the Rayburn House Office Building. The hearing will be webstreamed live HERE

    The hearing will examine contracting issues in the industrial base as it relates to bundling, consolidation and strategic sourcing, the Small Business Administration's (SBA) goaling processes and the jurisdiction and operation of the SBA's office of Hearings and Appeals.

    Witnesses:

    • Mr. Joe Wynn, President, VETS Group, Inc, Washington, DC (Testifying on behalf of VET-Force)
    • Mr.  Robert Burton, Partner, Venable, LLP, Washington, DC
    • Mr. Alan Chvotkin, Executive Vice President and Counsel, Professional Services Council, Arlington, VA
    • Mr. Damien Specht, Partner, Jenner & Block, Washington, DC

     

    Subcommittee Hearing
    Subcommittee on Contracting and Workforce
    Chairman Richard Hanna (R-NY)
    Thursday, March 19, 2015 at 10:00 A.M.
    2360 Rayburn House Office Building

    Contracting and the Industrial Base Part III: Reverse Auctions, Verification and The SBA's Role in Rulemaking
    On, March 19, 2015 at 10:00 a.m., the Small Business Subcommittee on Contracting and Workforce will hold a hearing titled, Contracting and  the Industrial Base Part III: Reverse Auctions, Verification and the SBA's Role in Rulemaking.  The hearing will be webstreamed live HERE.
     
    The purpose of the hearing  is to examine issues related to reverse auctions, The Small Business Administration's (SBA) and Department of Veterans Affairs (VA) contracting programs for service-disabled veteran owned small business and the enforcement and implementation of its statutory functions.

    ​Witnesses:

    • Mr. Daniel I. Gordon, Senior Advisor, Government Procurement Law Program, The George Washington University Law School, Washington, DC
    • Ms. Amber Peebles, President, Athena Construction Group, Inc. Dumfries, VA (Testifying on behalf of Women Impacting Public Policy)
    • Mr. Davy Leghorn, Assistant Director, National Veterans Employment and Education Division, The American Legion, Washington, DC
    • Ms. Margot Dorfman, CEO, United States Women's Chamber of Commerce, Washington, DC

     


    **Members of the press interested in covering these hearings should reply to this e-mail.**

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    ***POSTPONED TO A DATE TO BE DETERMINED Improving Capital Access Programs within the SBA

    House Small Business Committee News - Thu, 03/05/2015 - 10:00am

    On Thursday, March 5, 2015, at 10:00 A.M., the Committee on Small Business Subcommittee on Economic Growth, Tax and Capital Access HAS POSTPONED a hearing titled,  "Improving Capital Access Programs within the SBA." The hearing will be held in Room 2360 of the Rayburn House Office Building.  The hearing will be webstreamed live HERE. The Subcommittee will reschedule the hearing at a date to be determined.

    The purpose of the hearing is to examine capital access programs within the Small Business Administration (SBA).
      

    Opening Statement:

    Chairman Tom Rice (R-SC)

    Witnesses and Testimony:

  •  Ms. Barbara Vohryzek, President and CEO, National Association of Development Companies (NADCO), Washington, DC
  •  

  •  Mr. Brett Palmer, President, Small Business Investor Alliance, Washington, DC
  •  

  • Mr. Richard Bradshaw, President, Specialized Lending, United Community Bank, Greenville, SC
    • Testifying on behalf of the National Association of Government Guaranteed Lenders (NAGGL)
  •  

  • Dr. Scott Shane, A. Malachi Mixon III Professor of Entrepreneurial Studies and Professor of Economics, Case Western Reserve University, Weatherhead School of Management, Cleveland, OH
               
  •  

    Additional Items:
        Hearing Notice
        Witness List
           
         
         
          
       

    Building an Opportunity Economy: State of Small Business and Entrepreneurship

    House Small Business Committee News - Wed, 03/04/2015 - 11:00am
    On Wednesday, March 4, 2015 at 11:00 A.M., the Committee on Small Business held a hearing titled, ​​​Building an Opportunity Economy: The State of Small Business and Entrepreneurship. The hearing was held in Room 2360 of the Rayburn House Office Building. 

    The hearing examined the health and vibrancy of the American economy, particularly as it pertains to the creation, sustainability, and future growth of small businesses.


    Opening Statement:

    Chairman Steve Chabot (R-OH)

    Witnesses and Testimony:

    • ​Mr.  Jon Clifton, Partner, Managing Director, Government Division, Gallup, Washington, DC

     

    • Ms.  Cynthia Kay, Owner and President, Cynthia Kay and Company, Grand Rapids, MI

     

    • Mr.  David Burton, Senior Fellow in Economy Policy, The Heritage Foundation, Washington, DC

     

    • Ms. Elana Fine, Managing Director, Dingman Center for Entrepreneurship, Robert H. Smith School of Business, College Park, MD


    Additional Items:

    Hearing Notice
    Witness List 
    Hearing Memo 


    An Opportunity Economy Starts with Small Business

    House Small Business Committee News - Wed, 03/04/2015 - 12:00am
       
    An Opportunity Economy Starts with Small Business
    Small businesses are failing faster than they're starting up. Here's why that needs to change--and what we can do to make it happen.
    By Rep. Steve Chabot

    Running a small business is a tough job. As any entrepreneur knows, you often wear many hats. No matter your title, at some point you will act as your own tax accountant, marketing executive, regulatory expert, fundraiser, and human resources supervisor. 

    Yet throughout our history, American entrepreneurs and small businesses have done all these things and more. Their dogged determination has spurred the development of new technologies, new industries, and new jobs. But in the past few years, the business of being in business has gotten a lot more difficult.

    Entrepreneurs often feel like the odds are unfairly stacked against them. In 2008, that feeling became fact. One of the most startling trends that has emerged from our uncertain and uneven economic recovery is that small businesses now fail at a rate faster than they are being created. Starting with the Great Recession--and for the first time since data on this concept has been collected--more new American businesses failed than succeeded. Back in 2008, this was just another piece of terrible economic news. It is surprising and troubling that in 2015, the trend continues. More than six years later, small firms are still dying at faster rate than they are being produced.

    This is a real problem for a number of reasons. The first is that small firms already employ half of the American workforce. On top of that, small businesses create the vast majority of new job opportunities--seven out of every ten in most places. If you take into consideration the Kauffman Foundation’s findings that startups and new businesses are responsible for all net new jobs over the past 30 years, you reach one conclusion: fewer new businesses means fewer new jobs.

    When we passed the Regulatory Flexibility Improvements Act earlier this year, the Speaker of the House pointed out that it is easier to start a business in Belarus and 44 other countries than it is in America. While this is unfortunately true today, it doesn’t have to be true tomorrow. Free enterprise embodies the essence of the American spirit. Our nation has been a steady force of certainty in an uncertain world in large part because it has always been a place where anyone with an idea and the willingness to work hard has the freedom to turn that idea into reality. We must not let that slip away.

    The Small Business Committee is examining the most pressing challenges facing our entrepreneurs and small businesses. And we are working on solutions that will promote free enterprise and help us build an opportunity economy. That starts with understanding the importance of small businesses, and it continues with doing the difficult work to make starting and growing a business less complicated.

    Congress can set the stage for that growth. We are focusing on solutions that reduce unnecessary regulatory burdens, simplify the tax code, improve access to capital, and open new markets for companies to sell goods stamped “Made in the U.S.A.”

    Every American business--from the most iconic brands to the most steadfast of neighborhood establishments--started as an idea. Making sure America remains a place where ideas and new businesses can take root will set the foundation for an opportunity economy holds promise for everyone.

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    Chairman Chabot's Opening Statement for Hearing on Building an Opportunity Economy: The State of Small Business and Entrepreneurship

    House Small Business Committee News - Wed, 03/04/2015 - 12:00am

    Opening Statement

    Chairman Steve Chabot

    Small Business Committee Hearing

    Building an Opportunity Economy: The State of Small Business and Entrepreneurship

    3/4/2015

     

    Good morning.  This hearing will come to order.  Thank you all for joining us.

    Today, we are here to examine the state of small business. For the Members here, it’s not the first or last time we’ll have this conversation. We have it every time we talk to our constituents. They’re the ones who tell us the most about small business.

    But in those conversations, we don’t have C-SPAN cameras, we don’t have stenographers, and it doesn’t make it into the Congressional record. So we’re having this hearing today for our constituents. To have a conversation for the record that we have already had many times back home, so that we – as Members of the Small Business Committee -- can start the legislative work of getting government off the backs of the American people.

    1 out of every 2 employed Americans works at a small business. 7 out of every 10 new job opportunities are created by small businesses. When the federal government issues new rules, or raises taxes, or threatens to raise taxes, or increases health care costs, or prolongs a sense of uncertainty – this doesn’t just impact the name on a store front. It impacts real people. It impacts every American worker that puts a roof over their head and food on the table by working at that small business.

    We have heard some say that our economy has recovered. And it has somewhat. But when you look at the number of unemployed Americans and the number of those who may be “employed” but can’t find full time work, it is clear that we are not where we should be.

    As testimony today will reinforce, it’s not another sweeping government program that will make life better for Americans who depend on small businesses. The answer is hidden in the thousands of pages of regulations and tax policies, that are crushing the small business community. Another change that must be made – and this may be the most important change we can make – is to alter the mindset of the federal government so that it is always thinking about how its actions will impact our small businesses.

    The labor force participation rate is at its lowest point in our history.

    The percentage of long term unemployed is still much higher than before the recession.

    And maybe the most disturbing trend: every year of the Obama administration has seen more businesses close their doors than open them.  

    Economists describe this as the number of business deaths exceeding the number of business births. In plain language it means we have a problem.

    Small businesses are the foundation of our economy. As a Committee, we are here to make life better for small businesses and the working families that rely on them. Today, we begin that important work.

    I want to thank each of our witnesses for taking the time to be with us today.  I look forward to hearing your testimony.  I now yield to our ranking member, Ms. Velázquez, for her opening statement. 

    RELEASE: The State of Small Business and Entrepreneurship

    House Small Business Committee News - Wed, 03/04/2015 - 12:00am


    Building an Opportunity Economy: The State of Small Business and Entrepreneurship

    “More businesses are closing their doors than opening them”

    WASHINGTON – The Small Business Committee today examined the current state of small business and entrepreneurship and how this impacts efforts to a build an opportunity economy.

    Testifying at the hearing was Gallup Managing Director Jon Clifton, whose company recently published data revealing that each of the past six years has seen more businesses close their doors than open them – a disturbing trend that raises significant questions about the state of American free enterprise.

    In his opening statement, Chairman Steve Chabot addressed the challenges facing small businesses:

    “It’s not another sweeping government program that will make life better for Americans who depend on small businesses. The answer is hidden in the thousands of pages of regulations and tax policies, that are crushing the small business community.”

    Chabot added, “The most important change we can make is to alter the mindset of the federal government, so that it is always thinking about how its actions will impact our small businesses.”

    Also testifying before the Committee was small business owner Cynthia Kay, President of Cynthia Kay and Company, who suggested lawmakers take action on the “growing set of hurdles over which would-be entrepreneurs must jump” and that easing these burdens can “make entrepreneurship once again a sought-after life trajectory for many Americans who today are opting to work for someone other than themselves.”

    Other research from Gallup found that 1 in 4 Americans are considered “would-be entrepreneurs” who have abandoned at least one idea for a new business.

    To this point, Kay added: “It is no wonder that people who have never done it before and are looking at what they are up against walk away.”

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    PERMALINK:http://1.usa.gov/1wHUNR2

     

    Next Week at Small Business

    House Small Business Committee News - Fri, 02/27/2015 - 12:00am

    MEDIA ADVISORY:
    Next Week at Small Business

    WASHINGTON -The Small Business Committee will hold the following hearings next week:

    ​Full Committee Hearing
    Chairman Steve Chabot (R-OH)
    Wednesday, March 4, 2015 at 11:00 A.M.
    2360 Rayburn House Office Building

    Building an Opportunity Economy: State of Small Business and Entrepreneurship
    On Wednesday,March 4, 2015 at 11:00 A.M., the Committee on Small Businesswill hold a hearing titled, ​​​Building an Opportunity Economy: The State of Small Business and Entrepreneurship."The hearingwill beheld in Room 2360 of the Rayburn House Office Building. The hearing will be webstreamed liveHERE.

    The hearing will examine the health and vibrancy of the American economy, particularly as it pertains to the creation, sustainability, and future growth of small businesses.

    Witnesses

    • Mr. Jon Clifton, Partner, Managing Director, Government Division, Gallup, Washington, DC
    • Ms. Cynthia Kay, Owner and President, Cynthia Kay and Company, Grand Rapids, MI
      (Testifying on behalf of National SmallBusiness Association)
    • Mr. David Burton, Senior Fellow in Economy Policy, The Heritage Foundation, Washington, DC


    Subcommittee Hearing

    Subcommittee on Economic Growth, Tax, and Capital Access

    Chairman Tom Rice (R-SC)
    Thursday, March 5, 2015 at 10:00 A.M.
    2360 Rayburn House Office Building

    Improving Capital Access Programs within the SBA
    On Thursday, March 5, 2015, at 10:00 A.M., the Committee on Small BusinessSubcommittee onEconomic Growth, Tax and Capital Access willholda hearing titled, "Improving Capital Access Programs within the SBA." The hearingwill be heldin Room 2360 of the Rayburn House Office Building. The hearing will be webstreamed liveHERE.

    The purpose of the hearingis to examine capital access programs within the Small Business Administration (SBA).

    Witnesses

    · Ms. Barbara Vohryzek, President and CEO, National Association of Development Companies (NADCO), Washington, DC

    · Mr. Brett Palmer, President, Small Business Investor Alliance, Washington, DC

    · Mr. Richard Bradshaw, President, Specialized Lending, United Community Bank, Greenville, SC
    (Testifying on behalf of the National Association of Government Guaranteed Lenders(NAGGL))

    · Dr. Scott Shane, A. Malachi Mixon III Professor of Entrepreneurial Studies and Professor of Economics, Case Western Reserve University, Weatherhead School of Management, Cleveland, OH

    Members of the press interested in covering any of these hearings should reply to this e-mail.

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    Chabot Requests Answers from HHS Secretary on Latest Obamacare Glitch Impact on Small Business

    House Small Business Committee News - Thu, 02/26/2015 - 12:00am

    Chabot Requests Answers from HHS Secretary on Latest Obamacare Glitch Impact on Small Business

    WASHINGTON—Small Business Committee Chairman Steve Chabot (R-OH) yesterday sent a letter to Health and Human Services Secretary Sylvia Burwell requesting answers about how small businesses have been impacted by the agency’s misleading of more than 800,000 Americans with faulty tax information.

    This misinformation has created yet more uncertainty in an already difficult tax season for many Americans,” Chairman Chabot wrote in the letter which may be viewed in its entirety here.

    Chairman Chabot asked Secretary Burwell five specific questions related to the Small Business Health Options Program (SHOP) exchanges in this, the latest in the succession of Obamacare glitches. Chairman Chabot specifically asked:

    1. What is the number of small business owners who purchased insurance on the SHOP exchange and were affected?
    2. When did you learn of any errors in SHOP forms?
    3. What recourse will be available to individuals who have already filed their taxes with the incorrect information provided by your agency? Will they be forced to refile or offered some other less burdensome option?
    4. How long will it take to get the correct information out to affected individuals?
    5. What are your immediate plans to ensure something of this magnitude does not happen again?

    The Administration touted the Small Business Health Options Programs (SHOPs) as a competitive and convenient location for small businesses to compare prices and purchase affordable and effective health insurance coverage for their employees and families,” Chairman Chabot wrote. “However, I am concerned that this most recent error may have compounded the problems small business owners have faced when utilizing the SHOPs, such as cancelled plans, higher premiums, and less comprehensive coverage options.” 

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    CHABOT CONVENES ROUNDTABLE ON SMALL BUSINESS TRADE

    House Small Business Committee News - Thu, 02/26/2015 - 12:00am

    CHABOT CONVENES ROUNDTABLE ON SMALL BUSINESS TRADE 

    WASHINGTON – Small Business Committee Chairman Steve Chabot (R-OH) convened a roundtable today to discuss small businesses’ stake in trade. The participants included Members of the House Small Business Committee, Committee on Ways and Means, and small businesses from throughout the country who currently export their products overseas.

    “You’re actively involved in trade,” Chabot said. “We want to find out how you did it and what we can change so other small businesses can trade.”

    The discussion highlighted the importance of trade to future small businesses growth, the challenges faced by small exporters, and the need to reform ineffective federal export resources that are intended to facilitate trade, but often add confusion to an already complex process.

    One business owner said, “If a small company can compete in the U.S., it can compete anywhere in the world. We just need to demystify the export process.”

    Chairman Chabot concluded the conversation with specific questions about federal programs intended to support small businesses and potential trade agreements that could open new markets, emphasizing that small businesses require and can depend on the Small Business Committee to be their voice as the 114th Congress proceeds on the issue of international trade. 

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