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                                                Union Calendar No. 838
115th Congress    }                                {          Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                {         115-1079
_______________________________________________________________________

                                     

                                                
                        REPORT ON THE ACTIVITIES

                                 of the

                      COMMITTEE ON SMALL BUSINESS

                             115TH CONGRESS


[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]



 December 17, 2018.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed
                                  ______

                     U.S. GOVERNMENT PUBLISHING OFFICE 

33-792                       WASHINGTON : 2018






            
                         LETTER OF TRANSMITTAL

                              ----------                              

                          House of Representatives,
                               Committee on Small Business,
                                 Washington, DC, December 17, 2018.
Hon. Karen L. Haas,
Clerk, House of Representatives,
Washington, DC.
    Dear Ms. Haas: Pursuant to clause 1(d)(3) of rule XI of the 
Rules of the House of Representatives, I present herewith the 
report of the activities of the Committee for the 115th 
Congress, including the Committee's review of legislation 
within its jurisdiction and the oversight activities taken in 
accordance with the oversight plan adopted on February 1, 2017.
            Sincerely,
                                              Steve Chabot,
                                                          Chairman.
    Enclosure.
    
    
    
    
    
    
    
                            C O N T E N T S

                              ----------                              
                                                                   Page
Committee Jurisdiction...........................................     1
Rules of the Committee...........................................     2
Authorization and Oversight Plan.................................    13
Membership and Organization......................................    21
Legislative Activities...........................................    23
Oversight Summary................................................    43
Part A--Full Committee Hearings..................................    43
Part B--Subcommittee Hearings....................................    82
Part C--Waste, Fraud, Abuse, and Mismanagement...................   115
Part D--Oversight Plan and Implementation........................   125
Subpart A--Committee Authorization and Oversight Plan............   125
Subpart B--Implementation of Oversight Plan......................   132
Regulatory Review................................................   151











                                               Union Calendar No. 838
115th Congress    }                                {          Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                {         115-1079

======================================================================



 
  REPORT ON THE ACTIVITIES OF THE COMMITTEE ON SMALL BUSINESS FOR THE 
                             115TH CONGRESS

                                _______
                                

 December 17, 2018.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

           Mr. Chabot, from the Committee on Small Business, 
                        submitted the following

                              R E P O R T

    Clause 1(d)(3) of rule XI of the Rules of the House of 
Representatives for the 115th Congress requires that each 
standing committee, no earlier than December 15 or adjournment 
of the Congress sine die (whichever occurs first), submit to 
the House a report on the activities of that Committee, 
including separate sections summarizing the legislative and 
oversight activities of that Committee.

JURISDICTION AND SPECIAL OVERSIGHT FUNCTION

    Clause 1 (q) of rule X of the Rules of the House of 
Representatives of the 115th 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(1) of rule X of the Rules of the House of 
Representatives for the 113th 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 115TH CONGRESS

                         1. GENERAL PROVISIONS

    (A) Rules of the Committee. The Rules of the House of 
Representatives, in total (but especially with respect to the 
operations of committee., Rule X, cl. 1(q), cl. 2, cl. 3(1) and 
Rule XI), are the rules of the Committee on Small Business 
(``Committee'') to the extent applicable and are incorporated 
by reference.
    (B) Appointments by the Chair. Pursuant to the Rules of the 
House, the Chair shall designate a Member of the Committee 
Majority to serve as Vice Chair of the Committee. The Vice 
Chair shall preside at any meeting or hearing during the 
temporary absence of the Chair. The Chair also reserves the 
right to designate a Member of the Committee Majority to serve 
as the Chair at a hearing or meeting.

                   2. REFERRAL OF BILLS BY THE CHAIR

    The Chair will retain consideration of all legislation 
referred to the Committee by the Speaker. No action will be 
required of a Subcommittee before legislation is considered for 
report by the Committee. Subcommittee chairs, pursuant to the 
rules set out herein, may hold hearings on any bill referred to 
the Committee.

                            3. SUBCOMMITTEES

    (A) Generally. Each Subcommittee of the Committee is part 
of the Committee and is subject to the authority and direction 
of the Committee, and to the Rules of the House and the rules 
adopted herein, to the extent applicable. The Chairman and 
Ranking Member of the Committee are ex officio Members of all 
Subcommittees for the purpose of any meeting conducted by a 
Subcommittee.
    (B) The Committee shall be organized into the following 
five subcommittees:
          (1) Subcommittee on Agriculture, Energy, and Trade
          This Subcommittee (which will consist of six (6) 
        Republican Members and four (4) Democratic Members) 
        will address policies that enhance rural economic 
        growth, increasing America's energy independence and 
        ensuring that America's small businesses can compete 
        effectively in a global marketplace.
           Oversight of agricultural policies.
           Oversight of environmental issues and 
        regulations (including agencies such as the 
        Environmental Protection Agency and the Army Corps of 
        Engineers).
           Oversight of energy issues, including 
        expansion of domestic resources, whether they are 
        renewable or non-renewable.
           Oversight of international trade policy with 
        particular emphasis on agencies that provide direct 
        assistance to small businesses, such as: the Small 
        Business Administration's (SBA) Office of international 
        Trade, the Department of Commerce's United States 
        Export Assistance Centers, the Department of 
        Agriculture's Foreign Agricultural Service, and the 
        Export-Import Bank.
           Oversight of infringement of intellectual 
        property rights by foreign competition.
          (2) Subcommittee on Health and Technology
          This Subcommittee (which will consist of six (6) 
        Republican Members and four (4) Democratic Members) 
        will address how health care policies may inhibit or 
        promote economic growth and job creation by small 
        businesses. In addition, the Subcommittee will examine 
        small business job growth through the creation and 
        adoption of advanced technologies.
           Oversight of the implementation of the 
        Patient Protection and Affordable Care Act.
           Oversight of availability and affordability 
        of health care coverage for small businesses.
           Oversight of general technology issues, 
        including intellectual property policy in the United 
        States.
           Oversight of United States 
        telecommunications policies including, but not limited 
        to, the National Broadband Plan and allocation of 
        electromagnetic spectrum.
           Oversight of the Small Business Innovation 
        Research Program.
           Oversight of the Small Business Technology 
        Transfer Program.
          (3) Subcommittee on Economic Growth, Tax, and Capital 
        Access
          This Subcommittee (which will consist of six (6) 
        Republican Members and four (4) Democratic Members) 
        will evaluate the operation of the financial markets in 
        the United States and their ability to provide needed 
        capital to small businesses. In addition, the 
        Subcommittee will review federal programs, especially 
        those overseen by the SBA, aimed at assisting 
        entrepreneurs in obtaining needed capital. Since the 
        tax policy plays an integral role in access to capital, 
        this Committee also will examine the impact of federal 
        tax policies on small businesses.
           Oversight of capital access and financial 
        markets.
           Implementation of the Dodd-Frank Wall Street 
        Reform and Consumer Protection Act.
           SBA financial assistance programs, including 
        guaranteed loans, microloans, certified development 
        company loans, and small business investment companies.
           Oversight of the Department of Agriculture 
        business and industry guaranteed loan program.
           Oversight of general tax policy affecting 
        small businesses.
           The management of the SBA disaster loan 
        program.
          (4) Subcommittee on Investigations, Oversight, and 
        Regulations
          This Subcommittee (which will consist of six (6) 
        Republican Members and four (4) Democratic Members) 
        will probe the efficient operation of government 
        programs that affect small businesses, including the 
        SBA, and develop proposals to make them operate in a 
        more cost-effective manner. This Subcommittee also will 
        review the regulatory burdens imposed on small 
        businesses and how those burdens may be alleviated.
           Oversight of general issues affecting small 
        businesses and federal agencies.
           Oversight of the management of the SBA.
           Oversight of the SBA Inspector General.
           Implementation of the Regulatory Flexibility 
        Act.
           Oversight of the Office of Information and 
        Regulatory Affairs at the Office of Management and 
        Budget.
           Use of the Congressional Review Act.
           Transparency of the federal rulemaking 
        process as required by the Administrative Procedure and 
        Data Quality Acts.
           Implementation of the Paperwork Reduction 
        Act.
          (5) Subcommittee on Contracting and Workforce
          This Subcommittee (which will consist of six (6) 
        Republican Members and four (4) Democratic Members) 
        will assess the federal procurement system, including 
        those programs designed specifically to enhance 
        participation by small businesses in providing goods 
        and services to the federal government. The 
        Subcommittee will examine various programs designed to 
        provide technical assistance to small businesses, 
        whether specifically aimed at federal contractors or 
        small businesses in general. Finally, the Subcommittee 
        will review the broad scope of workforce issues that 
        affect the ability of small businesses to obtain and 
        maintain qualified employees.
           Oversight of government-wide procurement 
        practices and programs affecting small businesses.
           Oversight of federal procurement policies 
        that inhibit or expand participation by small 
        businesses in the federal contracting marketplace.
           All contracting programs established by the 
        Small Business Act, including HUBZone, 8(a), Women-, 
        and Service Disabled Veteran-Owned Small Business 
        Programs.
           Technical assistance provided to federal 
        contractors and perspective contractors through SBA 
        personnel, Offices of Small and Disadvantaged Business 
        Utilization, and Procurement Technical Assistance 
        Centers.
           The SBA Surety Bond guarantee program.
           Oversight of all federal policies that 
        affect the workforce including, but not limited to, the 
        roles of the Department of Labor and the National Labor 
        Relations Board.
           SBA entrepreneurial development and 
        technical assistance programs unrelated to 
        participation in the federal government contracting.
    (C) Powers and Duties of Subcommittees. Each Subcommittee 
is authorized to meet, hold hearings, receive evidence, and 
report to the Committee on any matters referred to it. Prior to 
the scheduling of any meeting or hearing of a Subcommittee, the 
Chair of the Subcommittee shall obtain the approval of the 
Chair of the Committee.
    (D) Hearing Time and Date. No healing or meeting of a 
Subcommittee shall take place at the same time as the meeting 
or hearing of the full Committee or another Subcommittee, 
provided however, that the Subcommittee Chairs may hold field 
hearings that conflict with those held by other Subcommittees 
of the Committee.

                           4. 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 Chair of the 
Committee. The Chair shall fix their remuneration and they 
shall be under the general supervision and direction of the 
Chair.
    (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 decide.
    (C) Subcommittee Staff. There shall be no separate staff 
assigned to Subcommittees. The Chair and Ranking Minority 
Member shall endeavor to ensure that sufficient Committee staff 
is made available in order that each Subcommittee may carry out 
the responsibilities set forth in Rule 3, supra.

                              5. MEETINGS

    (A) Regular Meeting Day. The regular meeting day of the 
Committee shall be the second Wednesday of every month when the 
House is in session. The Chair may dispense with the meeting of 
the Committee, if in the sole discretion of the Chair, there is 
no need for such meeting.
    (B) Additional Meetings. Additional meetings may be called 
as deemed necessary by the Chair or at the request of the 
majority Members of the Committee pursuant to Rule XI, cl. 2(c) 
of the rules of the House. At least 3 days' notice of such an 
additional meeting shall be given unless the Chair, with the 
concurrence of the Ranking Minority Member, determines that 
there is good cause to call the meeting on less notice or upon 
a vote by a majority of the Committee (a quorum being present). 
To the extent possible, the three days shall be counted from 
the 72 hours before the time of the meeting. Announcements. of 
the meeting shall be published promptly in the Daily Digest and 
made publicly available in electronic form.
    (C) Business to be Considered. The determination of the 
business to be considered at each meeting shall be made by the 
Chair subject to limitations set forth in House Rule XI, cl. 
2(c).
    (D) Meeting Materials. The Chair shall provide to each 
Member of the Committee, to the extent practicable, at least 48 
hours in advance of a meeting, a copy of the bill, resolution, 
report or other item to be considered at the meeting, but no 
later than 24 hours before the meeting. Such material also 
shall be made available to the public at least 24 hours in 
advance in electronic form.
    (E) Special and Emergency Meetings. The rules for notice 
and meetings as set forth in Rule 5 of these Rules shall not 
apply to special and emergency meetings. Clause 2(c)(2) of Rule 
XI and clause 2(g)(3)(A) of Rule XI of the Rules of the House, 
as applicable, shall apply to such meetings.

                 6. NOTICE AND ANNOUNCEMENT OF HEARINGS

    (A) Announcement of Hearings. Public announcement of the 
date, place and subject matter of any hearing to be conducted 
by the Committee shall be made no later than 7 calendar days 
before the commencement of the hearing. To the extent possible, 
the seven days shall be counted from 168 hours before the time 
of the Committee's hearing.
    (B) Exception. The Chair, with the concurrence of the 
Ranking Minority Member, or upon a vote by the majority of the 
Committee (a quorum being present), may authorize a hearing to 
commence on less than 7 days' notice.
    (C) Witness Lists. Unless the Chair determines it is 
impracticable to do so, the Committee shall make a tentative 
witness list available at the time it makes the public 
announcement of the hearing. If a tentative witness list is not 
made available at the time of the announcement of the hearing, 
such witness list shall be made available as soon as 
practicable after such announcement is made. A final witness 
list shall be issued by the Committee no later than 48 hours 
prior to the commencement of the hearing.
    (D) Hearing Material. The Chair shall provide to all 
Members of the Committee, as soon as practicable after the 
announcement of the hearing, a memorandum explaining the 
subject matter of the hearing and any official reports from 
departments and agencies on the subject matter of the hearing. 
Such material shall be made available to all Members of the 
Committee no later than 48 hours before the commencement of the 
hearing, unless the Chair, after consultation with the Ranking 
Minority Member, determines that certain reports from 
departments or agencies should not be made available prior to 
the commencement of the hearing. Material provided by the Chair 
to all Members, whether provided prior to or at the hearing, 
shall be placed on the Committee website no later than 48 hours 
after the commencement of the hearing, unless such material 
contains sensitive or classified information, in which case 
such material shall be handled pursuant to Rule 16 of the 
Committee's Rules.

              7. 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 House Rule XI, cl. 4. If the majority of Members of 
the Committee or Subcommittee present at the meeting determine 
by a recorded vote in open session that all or part of the 
remainder of the meeting on that day shall be closed to the 
public because the 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 they may authorize, shall be 
present in any meeting 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. If the majority of 
Members of the Committee or Subcommittee present at the hearing 
determine by a recorded vote in open session that all or part 
of the remainder of the hearing on that day shall be closed to 
the public because the 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 the Committee or 
Subcommittee may by the same procedure also vote to close one 
subsequent day of hearings. Notwithstanding the requirements of 
the preceding sentence, a majority of those present (if the 
requisite number of Members are present under Committee rules 
for the purpose of taking testimony) may vote: (i) to close the 
hearing for the sole purpose of discussing whether the 
testimony or evidence to be received would endanger the 
national security, would compromise sensitive law enforcement 
information, or violate Rule XI, cl. 2(k)(5) of the House or 
(ii) to close the hearing, as provided clause 2(k)(5) of Rule 
XI of the House.
    (C) Participation in Subcommittee Hearings. The Chair and 
Ranking Minority Member are ex officio Members of all 
Subcommittees for any hearing conducted by a Subcommittee. 
Members of the Committee who wish to participate in a hearing 
of the Subcommittee to which they are not Members shall make 
such request to the Chair and the Ranking Minority Member of 
the Subcommittee at the commencement of the hearing. The Chair, 
after consultation with the Ranking Minority Member of the 
Subcommittee, shall grant such request.
    (D) Non-Participatory Attendance by Other Members of the 
House. 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 Subcommittees, for 
purposes of a particular subject of investigation, to close its 
hearing to Members by the same procedures designated to close 
hearings to the public.
    (E) Procedure to Participate. Members of Congress who are 
not Members of the Committee but would like to participate in a 
hearing shall notify the Chair and the Ranking Minority Member 
and submit a formal request no later than 24 hours before the 
commencement of the meeting or hearing.
    (F) Audio and Video Coverage. To the maximum extent 
practicable, the Committee shall provide audio and video 
coverage of each hearing or meeting for the transaction of 
business in a manner that allows the public to easily listen 
and view the proceedings and shall maintain the recordings of 
such coverage in a manner easily accessible to the public.

                              8. WITNESSES

    (A) Number of Witnesses. For any hearing conducted by the 
Committee or Subcommittee there shall be no more than four non-
governmental witnesses of which the Ranking Minority Member of 
the Committee or Subcommittee (as appropriate) is entitled to 
select one witness for the hearing.
    (B) Witnesses Selected by the Minority. Witnesses selected 
by the Ranking Minority Member of the Committee or Subcommittee 
shall be invited to testify by the Chair of the Committee or 
Subcommittee (as appropriate). Rule 8(D) shall apply with equal 
force to witnesses selected by the Ranking Minority Member of 
the Committee or Subcommittee.
    (C) Small Business Week Exception. The limitations set 
forth in the preceding paragraph shall not apply if the 
Committee holds a hearing to honor the work of the small 
business community in conjunction with the annual celebration 
of Small Business Week. Witness limitations for such a hearing 
shall be determined by the Chair in consultation with the 
Ranking Minority Member.
    (D) Statement of Witnesses.
          (1) Each witness who is to appear before the 
        Committee or Subcommittee shall file an electronic copy 
        of the testimony with the Committee and the Ranking 
        Minority Member no later than 48 hours before the 
        commencement of the hearing. In addition, the witness 
        shall provide 25 copies of the testimony by the 
        commencement of the hearing. The Chair may waive the 
        requirement by the witness providing 25 copies in which 
        case the Committee or Subcommittee shall provide the 25 
        copies.
          (2) Each non-governmental witness shall provide to 
        the Committee and the Ranking Minority Member, no later 
        than 48 hours before the commencement of the hearing, a 
        curriculum vitae or other statement describing their 
        education, employment, professional affiliation or 
        other background information pertinent to their 
        testimony.
    (E) Witness Disclosure. As required by Rule XI, cl. 2(g) of 
the Rules of the House, each non-governmental witness before 
the commencement of the hearing shall file with the Chair a 
disclosure form detailing any contracts or grants that the 
witness has with the federal government, as well as the amount 
and country of origin of any payment or contract related to the 
subject of the hearing originating with a foreign government. 
In addition, each non-governmental witness shall file with the 
Committee Chair a disclosure form detailing any payments or 
contracts received from a foreign government if such payments 
or contracts are related in any manner to the subject matter of 
a hearing. Such information shall be posted on the Committee 
website within 24 hours after the witness appeared at the 
hearing.
    (F) Failure to Comply. The failure to provide the materials 
set forth by the deadlines set forth in these rules may be 
grounds for excluding both the oral and written testimony of 
the witness unless waived by the Chair of the Committee or 
Subcommittee.
    (G) Public Access to Witness Materials. The Committee will 
provide public access to printed materials, including the 
testimony of witnesses in electronic form on the Committee's 
website no later than 24 hours after the hearing is adjourned. 
Supplemental material provided after the hearing adjourns shall 
be placed on the Committee website no later than 24 hours after 
receipt of such material.
    (H) Questioning of Witnesses. Except when the Committee 
adopts a motion pursuant to subdivisions (B) and (C) of clause 
2(i)(2) of Rule XI of the Rules of the House, Committee Members 
may question witnesses only when they have been recognized by 
the Chair for that purpose. Members shall have the opportunity, 
as set forth in Rule XI, cl. 2 (j) of the Rules of the House, 
to question each witness on the panel for a period not to 
exceed five minutes. For any hearing, the Chair of the 
Committee or Subcommittee may offer a motion to extend the 
questioning of a witness or witnesses by the Member identified 
in the motion for more than five minutes as set forth in Rule 
XI, cl. 2(j)(B).
    (I) Order of Questioning. The Chair ofthe Committee or 
Subcommittee shall commence questioning followed by the Ranking 
Minority Member. Thereafter, questioning shall alternate 
between the majority and minority Members. Before the gavel has 
been struck, or in the case of Members arriving simultaneously, 
the order of questioning shall be based on seniority among 
Members of his or her own party. After the gavel has been 
struck, Members first to arrive shall have priority over 
Members of his or her own party.
    (J) Consideration of Ratio. In recognizing Members to 
question witnesses, the Chair may take into consideration the 
ratio of majority and minority Members present in such a manner 
as to not disadvantage the Members of either party.

                               9. QUORUM

    (A) Determining a Quorum. A quorum, for purposes of 
reporting a measure or recommendation, shall be a majority of 
the Committee Members.
    (B) Quorum for a Hearing. For purposes of taking testimony 
or receiving evidence, a quorum shall be one Member from the 
Majority and one Member from the Minority. The Chair of the 
Committee or Subcommittee shall exercise reasonable comity by 
waiting for the Ranking Minority Member even if a quorum is 
present before striking the gavel to commence the hearing. For 
hearings held by the Committee or a Subcommittee in a location 
other than the Committee's hearing room in Washington, DC, a 
quorum shall be deemed to be present if the Chair of the 
Committee or Subcommittee is present.

                            10. RECORD VOTES

    (A) When Provided. A record vote of the Committee shall be 
provided on any question before the Committee upon the request 
of any Member of the Committee. A record of the vote of each 
Member of the Committee on a matter before the Committee shall 
be available in electronic form within 48 hours of such record 
vote, and, with respect to any roll call vote on any motion to 
amend or report, shall be included in the report of the 
Committee showing the total number of votes cast for and 
against and the names of those Members voting for and against.
    (B) Public Access to Record Votes. The Chair of the 
Committee shall, not later than 24 hours after consideration of 
a bill, resolution, report or other item, cause the text of the 
reported item and any amendment adopted thereto to be made 
publicly available in electronic form.

                             11. SUBPOENAS

    (A) Authorization and Issuance. 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 subpoena shall 
he authorized by a majority of the full Committee. The 
requirement that the authorization of a subpoena requires a 
majority vote may be waived by the Ranking Minority Member of 
the Committee.
    (B) Issuance During Congressional Recess. The Chair may 
issue a subpoena, in consultation with the Ranking Minority 
Member, when the House is out for session for more than three 
legislative days.

                      12. AMENDMENTS DURING MARKUP

    (A) Availability of Amendments. Any amendment offered to 
any pending legislation before the Committee must be made 
available in written form 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 and may adjourn the markup to provide sufficient time 
for the provision of such written amendment. Such period or 
adjournment shall not prejudice the offering of such amendment.
    (B) Drafting and Filing of Amendments. For amendments to be 
accepted during markup, there is no requirement that the 
amendments be filed prior to commencement of the markup or 
prepared with the assistance of the Office of Legislative 
Counsel. Even though it is not necessary, Members seeking to 
amend legislation during markup should draft amendments with 
the assistance of the Office of Legislative Counsel and consult 
with the Chair or Ranking Minority Member's staff (as 
appropriate) in the preparation of such amendments.

                    13. POSTPONEMENT OF PROCEEDINGS

    (A) When Postponement is Permissible. The Chair, 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 Chair may resume postponed proceedings, but no 
later than 24 hours after such postponement, unless the House 
is not in session or there are conflicts with Member schedules 
that make it unlikely a quorum will be present to conduct 
business on the postponed proceeding. In such cases, the Chair 
will consult with Members to set a time as early as possible to 
resume proceedings but in no event later than the next meeting 
date as set forth in Rule 5 of these Rules.
    (B) Resumption of Proceedings. 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.

                         14. COMMITTEE RECORDS

    (A) The Committee shall keep a complete record of all 
actions, which shall include a record of the votes on any 
question on which a recorded vote is demanded. The result of 
any vote by the Committee, or if applicable by a Subcommittee, 
including a voice vote shall be posted on the Committee's 
website within 24 hours after the vote has been taken. Such 
record shall include a description of the amendment, motion, 
order, or other proposition, the name of the Member voting for 
and against such amendment, motion, order, or other 
proposition, and the names of Members present but not voting. 
For any amendment, motion, order, or other proposition decided 
by voice vote, the record shall include a description and 
whether the voice vote was in favor or against.
    (B) Transcripts. The Committee shall keep a complete record 
of all Committee and Subcommittee activity which, in the case 
of a meeting or hearing transcript, shall include a 
substantially verbatim account of the remarks actually made 
during the proceedings subject only to technical, grammatical, 
and typographical corrections authorized by the person making 
the remarks.
    (C) Availability of Records. 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 Chair of the Committee shall notify the Ranking 
Member of the Committee of any decision, pursuant to Rule VII, 
cl. 3(b)(3) or cl. 4 (b), 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.
    (D) Publishing and Posting of Records. The Committee Rules 
shall be made publicly available in electronic form and 
published in the Congressional Record not later than 30 days 
after the Chair of the Committee is elected in each odd-
numbered year.

                         15. COMMITTEE WEBSITE

    The Chair shall maintain an official Committee website for 
the purpose of furthe1ing the Committee's legislative and 
oversight responsibilities, including communicating 
inflammation about Committee's activities to Committee Members 
and other Members of the House. The Ranking Minority Member 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.

           16. ACCESS TO CLASSIFIED OR SENSITIVE INFORMATION

    (A) Access to classified or sensitive information supplied 
to the Committee or Subcommittees and attendance at closed 
sessions of the Committee or a Subcommittee shall be limited to 
Members and necessary Committee staff and stenographic 
reporters who have appropriate security clearance when the 
Chair determines that such access or attendance is essential to 
the functioning of the Committee or one of its Subcommittees.
    (B) Procedures Governing Availability. 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:
          (I) Only Members of the House of Representatives and 
        specifically designated Committee staff of the 
        Committee on Small Business may have access to such 
        information.
          (II) Members who desire to read materials that are in 
        possession of the Committee shall notify the Clerk of 
        the Committee in writing.
          (III) The Clerk of the Committee will maintain an 
        accurate access log, which identifies the circumstances 
        surrounding access to the information, without 
        revealing the material examined.
          (IV) 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.
          (V) Material provided for review under this rule 
        shall not be removed from a specified room within the 
        Committee offices.
          (VI) Individuals reviewing materials under this rule 
        shall make certain that the materials are returned to 
        the proper custodian.
          (VII) No reproductions or recordings may be made of 
        any portion of such materials.
          (VIII) 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 the manner 
        authorized by the rules of the Committee.
          (IX) When not being examined in the manner described 
        herein, such information will be kept in secure safes 
        or locked file cabinets within the Committee offices.
          (X) These procedures only address access to 
        information the Committee or Subcommittee deems to be 
        sensitive enough to require special treatment.
          (XI) 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 or an independent 
        agency as that term is defined in 44 U.S.C. Sec. 3502, 
        the classification of information and materials as 
        determined by the Executive Branch or independent 
        agency shall prevail unless affirmatively changed by 
        the Committee or Subcommittee involved, after 
        consultation with the Executive Branch or independent 
        agency.
          (XII) Other materials in the possession of the 
        Committee are to be handled in accordance with normal 
        practices and traditions of the Committee.

                          17. OTHER PROCEDURES

    The Chair of the 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.

                   18. AMENDMENTS TO COMMITTEE RULES

    The rules of the Committee may be modified, amended or 
repealed by a majority vote of the Members, at a meeting 
specifically called for such purpose, but only if written 
notice of the proposed change or changes has been provided to 
each Member of the Committee at least 72 hours prior to the 
time of the meeting of the Committee to consider such change or 
changes.

                         19. BUDGET AND TRAVEL

    (A) Allocation of Budget. From the amount provided to the 
Committee in the primary expense resolution adopted by the 
House of Representatives in the 115th Congress, the Chair, 
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) Authorization of Travel. The Chair may authorize travel 
in connection with activities or subject matters under the 
legislative or oversight jurisdiction of the Committee as set 
forth in Rule X of the Rules of the House. The Ranking Minority 
Member may authorize travel for any Minority Member or staff of 
the minority in connection with activities or subject matters 
under the Committee's jurisdiction as set forth in Rule X of 
the Rules of the House. Before such travel, there shall be 
submitted to the Chair of the Committee in writing the 
following at least seven (7) calendar days prior specifying: 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; and d) the names 
of Members and staff of the Committee participating in such 
travel.

AUTHORIZATION AND OVERSIGHT PLAN OF THE COMMITTEE ON SMALL BUSINESS FOR 
                   THE ONE HUNDRED FIFTEENTH CONGRESS

    Mr. Chabot, from the Committee on Small Business, submitted 
to the Committee on Oversight and Government Reform, the 
Committee on House Administration and the Committee on 
Appropriations the following.

                                 REPORT

    Rule X, cl. 2(d)(l) of the Rules of the House requires each 
standing Committee to adopt an authorization and oversight plan 
for the two-year period of the Congress and to submit the plan 
to the Committees on Government Reform and House Administration 
not later than February 15 of the first session of the 
Congress. Under Rule X, the Committee has oversight authority 
to investigate and examine any matter affecting small business. 
This Report reflects that broad oversight jurisdiction.
    Pursuant to Rule X, cl. 2(d)(l)(F), this Plan also includes 
proposals to cut or eliminate programs that are inefficient, 
duplicative, outdated, or more appropriately administered by 
State or local governments.
    House Rule X, cl. 2(d)(2) requires that committee oversight 
plans include a list of programs or agencies within each 
committee's jurisdiction with lapsed authorizations that 
received funding in the prior fiscal year, or a program or 
agency with a permanent authorization which has not been 
subject to review by the Committee in the prior three 
Congresses. The Committee has found no Small Business 
Administration (SBA) programs that fit these parameters. Rule 
X, cl. 2(d)(2) also requires a description of the programs or 
agencies to be authorized in the current Congress or the next 
Congress, and any oversight to support the authorization of 
those programs or agencies, and recommendations for moving such 
programs or agencies from mandatory funding to discretionary 
appropriations where appropriate. The Committee may consider 
reforms and improvements to various SBA programs as noted 
throughout this Authorization and Oversight Plan, including the 
need for SBA to create appropriate metrics to measure efficacy.

              OVERSIGHT OF FEDERAL CAPITAL ACCESS PROGRAMS

    The Committee will conduct hearings and investigations of 
SBA and other federal agencies that provide capital to 
America's entrepreneurs that may include any or all of the 
following, as well as matters brought to the attention of the 
Committee subsequent to the filing of this Report:
           Effectiveness of the capital access programs 
        to generate jobs in the fastest growing small 
        businesses.
           Whether lenders are meeting their goals to 
        lend to small businesses and create jobs.
           Risk to the taxpayers of the capital access 
        programs.
           Adequacy of SBA oversight of its lending 
        partners to ensure that federal taxpayers are properly 
        protected.
           Capabilities of the SBA information 
        technology to manage the loan portfolio.
           Whether SBA rules, regulations and guidance 
        result in transparent and reasoned decision making with 
        respect to capital access programs.
           Assessment of credit-scoring algorithms as a 
        replacement for individual credit assessment by SBA and 
        its lending partners.
           The exercise of discretion by SBA to create 
        pilot programs and the risk they pose to the taxpayer 
        and whether such authority should be curtailed or 
        eliminated.
           Whether SBA disaster loan program and its 
        oversight ensures that small businesses are able to 
        revive and rebuild communities without unduly placing 
        the federal taxpayer at risk.
           Efficacy and duplication of federal capital 
        access programs offered by the Department of 
        Agriculture to small businesses in rural areas.
           Utilization by small businesses of export 
        capital programs at the Export-Import Bank and the 
        Overseas Private Investment Corporation.
           Continued examination of the Small Business 
        Lending Fund and State Small Business Credit Initiative 
        established by Pub. L. No. 111-240, the Small Business 
        Jobs Act of 2010, in creating jobs and providing 
        capital to small businesses.
           Impact of the Dodd-Frank Wall Street Reform 
        and Consumer Protection Act, Pub. L. No. 111-203, on 
        small business access to capital.
           Implementation of crowdfunding and other 
        provisions of the Jumpstart Our Business Startups Act, 
        Pub. L. No. 112-106.
    In performing oversight, the Committee will focus on risky 
aspects of financial assistance programs including, but not 
limited to, commercial real estate refinancing, premier 
certified lenders, participating security small business 
investment companies, small business lending companies, express 
lenders, and loan programs utilizing simplified lending 
applications.

OVERSIGHT OF SBA AND OTHER FEDERAL ENTREPRENEURIAL DEVELOPMENT PROGRAMS

    The Committee will conduct hearings and investigations into 
the SBA programs that provide training and advice to small 
businesses that may include any or all of the following, as 
well as matters brought to the attention of the Committee 
subsequent to the filing of this Report:
           Examining effectiveness of SBA 
        entrepreneurial development programs, including 
        programs for veterans, in creating jobs at startups and 
        traditional firms.
           Determining whether certain programs should 
        be eliminated as a result of their ineffectiveness or 
        duplication of programs provided by other agencies or 
        by the private sector.
           Suggesting methods for enhancing 
        coordination among federal agencies in providing 
        assistance to entrepreneurs, including, but not limited 
        to, businesses located in rural areas and those seeking 
        to provide goods and services in the federal 
        procurement marketplace.
           Enhancing the efficacy and utilization of 
        the Manufacturing Extension Partnership at the 
        Department of Commerce, including developments in 
        renewable energy.
           Recommending improvements in assistance to 
        small businesses in rural areas, including those 
        involved in agriculture, forestry, and energy 
        production.

          OVERSIGHT OF FEDERAL GOVERNMENT CONTRACTING MATTERS

    The Committee will conduct hearings and investigations into 
the federal procurement system that may include any or all of 
the following, as well as matters brought to the attention of 
the Committee subsequent to the filing of this Report:
           Whether fraud or other problems exist in the 
        federal government contracting programs overseen by the 
        SBA including the 8(a), HUBZone, service-disabled 
        veteran, women-owned contracting, and Small Business 
        Innovation Research programs.
           Effectiveness of SBA contracting programs to 
        increase participation by small businesses in federal 
        procurement.
           Effectiveness of federal agency protections 
        against contract bundling and consolidation.
           The accuracy and utility of SBA size 
        standards and federal procurement databases.
           Operation and effectiveness of federal 
        agency assistance provided to small businesses 
        interested in federal procurement, including that 
        provided by the SBA, Offices of Small and Disadvantaged 
        Business Utilization and Procurement Technical 
        Assistance Centers.
           Development of federal acquisition policies 
        and whether small businesses have sufficiently 
        effective voice in development of such policies.
           Cost-effectiveness of outsourcing government 
        work to private enterprise rather than expanding the 
        government to provide the good or service internally 
        (i.e., government insourcing).
           Implementation and efficacy of changes made 
        in small business federal procurement programs arising 
        from the enactment of the National Defense 
        Authorization Acts for FYs 2012-2016.
           Examination of the Small Business Innovation 
        Research Program as modified by the National Defense 
        Authorization Act for FY 2012, Pub. L. No. 112-81, 
        including, but not limited to, increased efforts at 
        commercializing federally-funded technology.
    In performing oversight, the Committee will focus its 
efforts on uncovering abuse and misuse of the small business 
designation to obtain federal government contracts.

                      OVERSIGHT OF SBA MANAGEMENT

    The Committee will conduct the hearings and investigations 
into the management of the SBA that may include any or all of 
the following, as well as matters brought to the attention of 
the Committee subsequent to the filing of this Report:
           The appropriate mission of the SBA.
           Whether agency employees in the field are 
        empowered to assist small businesses.
           Duplication of offices and missions at SBA 
        headquarters.
           Effectiveness of personnel management to 
        ensure that employees are rewarded for assisting small 
        businesses.
           Capabilities of SBA employees to provide 
        proper assistance to small business owners.
           Agency personnel capabilities to properly 
        manage loan defaults to maximize recovery of 
        collateral.
           Whether SBA improperly utilizes statutory 
        authority to create untested initiatives and the 
        procedures by which the agency develops such programs.
    In carrying out this oversight, the Committee will focus 
particularly on streamlining and reorganizing of the agency's 
operations to provide maximum assistance to small business 
owners. Offices that primarily provide assistance or advice to 
headquarters staff that do not promote the interests of small 
businesses or protect the federal government as a guarantor of 
loans will be recommended for cuts or elimination. For some 
potential offices that the Committee will examine, refer to the 
section titled ``Reductions in Programs and Spending.''

         OVERSIGHT OF FEDERAL REGULATORY AND PAPERWORK BURDENS

    The Committee will conduct hearings and investigations into 
unnecessary, burdensome, and duplicative federal rules, 
reporting and recordkeeping requirements affecting small 
businesses that may include any or all of the following, as 
well as matters brought to the attention of the Committee 
subsequent to the filing of this Report:
           Consumer Financial Protection Bureau.
           Consumer Safety Products Commission.
           Department of Agriculture.
           Department of Commerce.
           Department of Energy, particularly the 
        Office of Energy Efficiency and Renewable Energy.
           Department of Health and Human Services, 
        particularly the Centers for Medicare and Medicaid 
        Services and Food and Drug Administration.
           Department of Interior, particularly the 
        Bureau of Land Management and Fish and Wildlife 
        Service.
           Department of Homeland Security, 
        particularly the Transportation Security 
        Administration.
           Department of Labor, particularly the 
        Occupational Safety and Health Administration and the 
        Wage and Hour Division.
           Department of Transportation, particularly 
        the Federal Aviation Administration and Federal Motor 
        Carrier Safety Administration.
           Department of the Treasury, particularly the 
        Internal Revenue Service.
           Environmental Protection Agency.
           Federal Communications Commission.
           Federal Financial Institutions Examination 
        Council and its constituent agencies.
           Office of Management and Budget, 
        particularly the Office of Federal Procurement Policy.
           Securities and Exchange Commission.
    The Committee will identify specific rules and regulations 
already issued or at the proposed rule stage to assess the 
impact on small businesses. In addition, the Committee will 
examine agency compliance with the Regulatory Flexibility Act 
and Paperwork Reduction Act. The Committee will pay close 
attention to the effect that regulations have on startups. 
Oversight of the regulatory process also will, to the extent 
relevant, examine the work of the Office of Information and 
Regulatory Affairs at the Office of Management and Budget. 
Special attention will be paid to the work performed by the 
Chief Counsel for Advocacy at the Small Business Administration 
to ensure that Office is fulfilling its mission to advocate 
vigorously on behalf of America's small business owners in 
regulatory matters at federal agencies. Finally, this oversight 
will entail an examination of compliance by federal agencies 
with amendments to Executive Order 12,866 and memoranda on 
regulatory flexibility and regulatory compliance issued by the 
President on January 18, 2011 and still in effect as of the 
approval of this Oversight Plan.

                    OVERSIGHT OF FEDERAL TAX POLICY

    The Committee will conduct hearings and investigations into 
the federal tax code, its impact on small business, and 
Internal Revenue Service's (IRS) collection of taxes that may 
include any or all of the following, as well as matters brought 
to the attention of the Committee subsequent to the filing of 
this Report:
           Identification of tax code provisions and 
        proposed rules that hinder the ability of small 
        businesses to create jobs and recommendations for 
        modifying those provisions to boost small business job 
        growth.
           Examination of the structure of the tax code 
        in order to simplify compliance for small businesses.
           Assessment of the recordkeeping and 
        reporting requirements associated with tax compliance 
        and suggestions for reducing such burdens on small 
        businesses.
           Evaluation of the estate tax provisions to 
        determine whether they inhibit the ability of 
        successive generations to maintain successful job 
        creating enterprises.
           Efficiencies at the IRS that improve the 
        interaction between the government and small business 
        owners.
           Inefficiencies at the IRS that force small 
        businesses to divert capital from job growth to tax 
        compliance.

                    OVERSIGHT OF HEALTH CARE POLICY

    The Committee will conduct hearings and investigations into 
federal health care policy (such as Medicare and Medicaid) and 
the continued implementation of the Patient Protection and 
Affordable Care Act that may include any or all of the 
following, as well as matters brought to the attention of the 
Committee subsequent to the filing of this Report:
           The cost of the Patient Protection and 
        Affordable Care Act to small businesses, including the 
        self-employed.
           The availability of health insurance in the 
        federal marketplaces established by the Patient 
        Protection and Affordable Care Act.
           The impact of the Patient Protection and 
        Affordable Care Act, Medicare and Medicaid on the 
        ability of physicians, pharmacists, and allied health 
        care providers to offer the best care possible to 
        patients.
           The impact of state tort and insurance laws 
        on the cost of medical care.
           Examination of increases in efficiencies 
        that will improve the provision of health care while 
        reducing costs to small businesses that offer their 
        workers' health insurance.

                       OVERSIGHT OF ENERGY POLICY

    The Committee will conduct hearings and investigations into 
energy policy to reduce the cost of energy and increase energy 
independence that may include any or all of the following, as 
well as matters brought to the attention of the Committee 
subsequent to the filing of this Report:
           Innovations developed by small businesses 
        that create greater energy independence.
           Federal regulatory policies that increase 
        dependence on foreign sources of energy.
           Policies needed to incentivize production of 
        energy in the United States.
           Examination of commercialization of research 
        in renewable energy.
           Federal regulations or policies that 
        increase energy costs for small businesses.
    The primary thrust of the Committee's efforts will focus on 
efforts to use the innovation of America's entrepreneurs to 
fuel the drive for greater energy independence, including the 
development of renewable energy products.

          OVERSIGHT OF TRADE AND INTELLECTUAL PROPERTY POLICY

    The Committee will conduct hearings and investigations into 
international trade and intellectual property policies of 
America and its trading partners that may include any or all of 
the following, as well as matters brought to the attention of 
the Committee subsequent to the filing of this Report:
           Impact of free trade agreements to increase 
        exports by American small businesses.
           Oversight of SBA's Office of International 
        Trade and the agency's efforts to promote small 
        business exports.
           Examination of the impact of illicit actions 
        by foreign entities on small businesses and whether the 
        federal government is doing enough to protect their 
        interests.
           Whether the federal government is doing 
        enough to protect the intellectual property rights of 
        small businesses by foreign competitors.
           The impact of federal intellectual property 
        policies, particularly patents and copyrights, to 
        protect the innovations of American entrepreneurs.
           Efforts to increase exports by small 
        businesses.
           Whether the United States Trade 
        Representative and Department of Commerce sufficiently 
        protect the interests of small businesses in the 
        negotiation of free trade agreements.
           Whether the United States Trade 
        Representative takes positions at the World Trade 
        Organization that sufficiently promote the interests of 
        American small businesses.
    The focus of oversight will emphasize the best mechanisms 
to promote and protect advanced technology innovations of small 
businesses.

                  REDUCTIONS IN PROGRAMS AND SPENDING

    In addition to the programs and policies already cited, the 
Committee will examine any and all offices and programs that 
fall within the Committee's legislative jurisdiction to find 
areas that could lead to reduction in the federal deficit. Some 
programs and offices may include:
           State Small Business Credit Initiative 
        operated by Department of Treasury.
           Express Loan Program overseen by SBA.
           Emerging Leaders Initiative started by SBA.
           Clusters Program initiated by the SBA.
           Innovation and Impact Fund Pilot Programs 
        operated by the SBA.
           SBA Office of Policy.
           SBA Regional Administrators.
           Office of Advocacy Regional Advocates.
           SBA Deputy District Directors.
           SBA Office of International Trade.
           SBA Office of Native American Affairs.
    In particular, the Committee will assess whether 
reorganization and reassignment of employees to more critical 
functions at the SBA, such as positions in the Office of 
Government Contracting and Business Development will provide a 
more effective agency at helping small businesses to generate 
growth.

                        PROGRAMMATIC DUPLICATION

    The Committee notes that Sec. 18 of the Small Business Act 
prohibits duplication of any effort by the Small Business 
Administration if a program is already offered by another 
federal agency unless the Small Business Administration 
expressly authorizes the duplication. The Committee will 
continue to monitor the Small Business Administration for 
programs that duplicate the efforts of other federal agencies.

                      MEMBERSHIP AND ORGANIZATION

                                 OF THE

                      COMMITTEE ON SMALL BUSINESS

                   ONE HUNDRED AND FIFTEENTH CONGRESS

                             FULL COMMITTEE

Minority                             Majority
Nydia Velazquez, (NY-07),            Steve Chabot (OH-01),
  Ranking Member                       Chairman
Dwight Evans (PA-02)                 Steve King (IA-04)
Stephanie Murphy (FL-07)             Blaine Luetkemeyer (M0-03)
Al Lawson, Jr. (FL-05)               Dave Brat (VA-07)
Yvette Clarke (NY-09)                Aumua Amata Coleman Radewagen (AS)
Judy Chu (CA-27)                     Steve Knight (CA-25)
Alma Adams (NC-12)                   Trent Kelly (MS-01)
Adriano Espaillat (NY-13)            Rod Blum (IA-01)
Brad Schneider (IL-10)               Jenniffer Gonzalez-Colon (PR)
VACANT                               Brian Fitzpatrick (PA-08)
                                     Roger Marshall (KS-01)
                                     Ralph Norman (SC-05)\1\
                                     John Curtis (UT-03)\2\
                                     Troy Balderson (OH-12)\3\

----------
\1\Rep. Ron Estes was elected on April 11, 2017 in a special election 
to replace former Rep. Mike Pompeo and was appointed to the House 
Committee on Small Business on May 5, 2017. Rep. Estes resigned from 
the Committee on Small Business on June 27, 2017 to accept an 
appointment to the House Committee on Homeland Security. Rep. Norman 
was elected on June 20, 2017 in a special election to replace former 
Rep. Mick Mulvaney and was appointed to the House Committee on Small 
Business on June 27, 2017.
\2\ Rep. Curtis was elected on November 7, 2017 in a special election 
to replace former Rep. Jason Chaffetz and was appointed to the House 
Committee on Small Business on November 29, 2017. Rep. Don Bacon 
resigned from the Committee on Small Business on November 29, 2017 to 
accept an appointment to the Committee on Homeland Security.
\3\Rep. Balderson was elected on August 7, 2018 in a special election 
to replace former Rep. Pat Tiberi and was appointed to the House 
Committee on Small Business on September 5, 2018. Rep. James Comer 
resigned from the House Committee on Small Business on September 5, 
2018.

             SUBCOMMITTEE ON AGRICULTURE, ENERGY, AND TRADE

Brad Schneider (IL-10),              Rod Blum (IA-01),
  Ranking Member                       Chairman
Al Lawson, Jr. (FL-05)               Steve King (IA-04)
VACANT                               Blaine Luetkemeyer (M0-03)
VACANT                               Aumua Amata Coleman Radewagen (AS)
                                     John Curtis (UT-03)
                                     VACANT

                 SUBCOMMITTEE ON HEALTH AND TECHNOLOGY

Al Lawson, Jr. (FL-05),              Aumua Amata Coleman Radewagen 
  Ranking Member                     (AS),
Adriano Espaillat (NY-13)              Chairman
VACANT                               Blaine Luetkemeyer (MO-03)
VACANT                               Dave Brat (VA-07)
                                     Jenniffer Gonzalez-Colon (PR)
                                     Brian Fitzpatrick (PA-08)
                                     Roger Marshall (KS-01)

                 SUBCOMMITTEE ON ECONOMIC GROWTH, TAX, 
                           AND CAPITAL ACCESS

Dwight Evans (PA-02),                Dave Brat (VA-07),
  Ranking Member                       Chairman
Judy Chu (CA-27)                     Steve Knight (CA-25)
Stephanie Murphy (FL-07)             Trent Kelly (MS-01)
Yvette Clarke (NY-09)                Jenniffer Gonzalez-Colon (PR)
                                     Brian Fitzpatrick (PA-08)
                                     VACANT

              SUBCOMMITTEE ON INVESTIGATIONS, OVERSIGHT, 
                            AND REGULATIONS

Alma Adams (NC-12),                  Trent Kelly (MS-01),
  Ranking Member                       Chairman
VACANT                               Rod Blum (IA-01)
VACANT                               Roger Marshall (KS-01)
VACANT                               Ralph Norman (SC-05)
                                     John Curtis (UT-03)
                                     VACANT

               SUBCOMMITTEE ON CONTRACTING AND WORKFORCE

Stephanie Mmphy (FL-07),             Steve Knight (CA-25),
  Ranking Member                       Chairman
Yvette Clarke (NY-09)                Steve King (IA-04)
Dwight Evans (PA-02)                 Ralph Norman (SC-05)
Al Lawson, Jr. (FL-05)               VACANT
                                     VACANT
                                     VACANT

                         LEGISLATIVE ACTIVITIES

    Clause 1(d) of Rule XI of the Rules of the House of 
Representatives for the 115th Congress requires that each 
standing committee, no later than January 2 of each odd-
numbered year, submit to the House a report on the activities 
of that committee, including a separate section summarizing the 
legislative activities of that committee.

         SMALL BUSINESS REGULATORY FLEXIBILITY IMPROVEMENTS ACT

                               (H.R. 33)

Summary
    H.R. 33 would amend Chapter 6 of Title 5 of the United 
States Code (commonly known as the Regulatory Flexibility Act) 
to ensure complete analysis of potential impacts of rules on 
small entities.
Legislative History
    H.R. 33 was introduced by Representative Steve Chabot on 
January 3, 2017. H.R. 33 was included as Title III to H.R. 5, 
the Regulatory Accountability Act of 2017. On January 6, 2017, 
the Committee on Small Business discharged H.R. 5 in a letter 
to the House Committee on the Judiciary, and on January 9, 
2017, notified the Speaker of the House, Paul Ryan, of the 
discharge. On January 11, 2017, the House passed H.R. 5 by a 
vote of 238-183 (Roll Call No. 45).

              HELPING ANGELS LEAD OUR STARTUPS (HALOS) ACT

                               (H.R. 79)

Summary
    H.R. 79 clarifies Securities law to ensure startup 
companies are able to participate in ``demo days'' without 
violating SEC general solicitation rules and regulations.
Legislative History
    H.R. 79 was introduced by Representative Steve Chabot on 
January 3, 2017. On January 10, 2017, H.R. 79 passed the House 
by a vote of 344-73 (Roll Call No. 31). H.R. 79 was later 
included in H.R. 10, the Financial CHOICE Act of 2017, H.R. 
3280 the Financial Services and General Government 
Appropriations Act of 2018, H.R. 3354, the Make America Secure 
and Prosperous Appropriations Act of 2018, H.R. 6147, the 
Interior, Environment, Financial Services and General 
Government Appropriations Act of 2019, and S. 488, the JOBS and 
Investor Confidence Act of 2018, all of which failed to 
advance.

          SUPPORTING AMERICA'S YOUNG ENTREPRENEURS ACT OF 2017

                               (H.R. 201)

Summary
    H.R. 201 would amend title IV (Student Assistance) of the 
Higher Education Act of 1965 to make eligible for deferment and 
cancellation under the Federal Direct Loan program a borrower 
who is an employee or founder of a small business start-up in a 
distressed area. It also amends the Internal Revenue Code to 
exclude from an individual's gross income the amount of such 
canceled student loan debt. The bill establishes a Federal 
Direct Refinanced Private Loan program to refinance private 
education loans. Finally, it establishes a young entrepreneurs 
business center within the Small Business Administration to 
certify small business start-ups, identify distressed areas, 
and approve loan cancelation for founders of small business 
start-ups.
Legislative History
    H.R. 201 was introduced by Representative Nydia Velazquez 
on January 3, 2017.

      COMMERCIAL MARKET REPRESENTATIVES CLARIFICATION ACT OF 2017

                              (H.R. 1597)

Summary
    H.R. 1597 would codify and modernize the Small Business 
Administration's (SBA) Commercial Market Representatives (CMR) 
program. The bill would ensure that small business concerns 
have the opportunity to compete for subcontracts on large 
federal prime contracts, and that the SBA employees tasked with 
enforcement of the subcontracting program have clear direction.
Legislative History
    H.R. 1597 was introduced by Representative Dave Brat on 
March 17, 2017. On May 25, 2017, the Subcommittee on 
Investigations, Oversight and Regulations and the Subcommittee 
on Contracting and Workforce held a joint hearing on federal 
contracting change orders. During the hearing, Members 
discussed the negative effects of change orders on small 
federal contractors. H.R. 1597 was included in H.R. 1773, the 
Clarity for America's Contractors Act of 2017. H.R. 1597 and 
H.R. 1773 were subsequently included in H.R. 2810, the National 
Defense Authorization Act for Fiscal Year 2018, which was 
reported, as amended, by the House Committee on Armed Services 
on July 6, 2017, passed the House, as amended, on July 14, 2017 
by a vote of 344-81 (Roll Call No. 378), and passed the Senate, 
as amended, on September 18, 2017 by a vote of 89-8 (Roll Call 
No. 199). H.R. 1597 and H.R. 1773 were later included in the 
Conference Report for H.R. 2810, which passed the House on 
November 14, 2017 by a vote of 356-70 (Roll Call No. 631), the 
Senate on November 16, 2017 by voice vote, was signed into law 
by the President on December 12, 2017, and became Public Law 
Number 115-91.

                UNIFYING SMALL BUSINESS TERMINOLOGY ACT

                              (H.R. 1640)

Summary
    H.R. 1640 would amend the Small Business Act to revise the 
terminology describing the range of the anticipated value of 
federal procurement contracts that must be reserved exclusively 
for small businesses.
Legislative History
    H.R. 1640 was introduced on March 20, 2017 by 
Representative Nydia Velazquez. H.R. 1640 was included in H.R. 
1773, the Clarity for America's Small Contractors Act of 2017. 
H.R. 1640 and H.R. 1773 were included in the National Defense 
Authorization Act for Fiscal Year 2018, which was reported, as 
amended, by the House Committee on Armed Services on July 6, 
2017, passed the House, as amended, on July 14, 2017 by a vote 
of 344-81 (Roll Call No. 378), and passed the Senate, as 
amended, on September 18, 2017 by a vote of 89-8 (Roll Call No. 
199). H.R. 1640 and H.R. 1773 were later included in the 
Conference Report for H.R. 2810, which passed the House on 
November 14, 2017 by a vote of 356-70 (Roll Call No. 631), the 
Senate on November 16, 2017 by voice vote, was signed into law 
by the President on December 12, 2017, and became Public Law 
Number 115-91.

            WOMEN'S BUSINESS CENTERS IMPROVEMENT ACT OF 2017

                              (H.R. 1680)

Summary
    H.R. 1680 amends the Small Business Act to set forth the 
responsibilities of the Small Business Administration's (SBA) 
Office of Women's Business Ownership. The bill also establishes 
the criteria for eligible entities, establishes an 
accreditation program for eligible entities receiving grants 
from the Office of Women's Business Ownership, and requires a 
site visit by the Office prior to an entity receiving a grant 
to ensure the entity has sufficient resources to provide the 
services under the grant.
Legislative History
    H.R. 1680 was introduced on March 22, 2017 by 
Representative Steve Knight. H.R. 1640 was included in H.R. 
1774, the Developing the Next Generation of Small Businesses 
Act, and later became part of H.R. 2810, the National Defense 
Authorization Act for Fiscal Year 2018. H.R. 2810 was reported, 
as amended, by the House Committee on Armed Services on July 6, 
2017, and passed the House on July 14, 2017 by a vote of 344-81 
(Roll Call No. 378). On September 18, 2017, the Senate passed 
H.R. 2810, as amended, by a vote of 89-8 (Roll Call No. 199). 
H.R. 1680 was not included in the final version of H.R. 2810. 
The House passed H.R. 1680, as amended, on May 8, 2018 under 
Suspension of the Rules by voice vote.

   IMPROVING CONTRACT PROCUREMENT FOR SMALL BUSINESSES THROUGH MORE 
                         ACCURATE REPORTING ACT

                              (H.R. 1693)

Summary
    H.R. 1693 amends the Small Business Act to require that SBA 
include in its annual reports to the House Committee on Small 
Business and the Senate Committee on Small Business and 
Entrepreneurship analyzing the number and dollar amount of 
prime contracts awarded by federal agencies each fiscal year to 
small business concerns, including those owned and controlled 
by service-disabled veterans, qualified HUBZone small business 
concerns, socially and economically disadvantaged individuals, 
and women, information regarding the small business concerns in 
these socioeconomic categories that would no longer be deemed a 
small business concern for the purposes of the initial 
contract, and those that were awarded using a procurement 
method that restricted competition to small business in these 
socioeconomic categories.
Legislative History
    H.R. 1693 was introduced on March 23, 2017 by 
Representative Yvette Clarke. H.R. 1693 was included in H.R. 
1773, the Clarity for America's Small Contractors Act. H.R. 
1693 and H.R. 1773 were included in H.R. 2810, the National 
Defense Authorization Act for Fiscal Year 2018. H.R. 2810 was 
reported, as amended, by the House Committee on Aimed Services 
on July 6, 2017, passed the House, as amended, on July 14, 2017 
by a vote of 344-81 (Roll Call No. 378) and the Senate, as 
amended, on September 18, 2017 by a vote of 89-8 (Roll Call No. 
199). H.R. 1693 and H.R. 1773 were included in the Conference 
Report for H.R. 2810, which passed the House on November 14, 
2017 by a vote of 356-70 (Roll No. 631), the Senate on November 
16, 2017 by voice vote, was signed into law by the President on 
December 12, 2017 and became Public Law Number 115-91.

                  SCORE FOR SMALL BUSINESS ACT OF 2017

                              (H.R. 1700)

Summary

    H.R. 1700 amends the Small Business Act to reauthorize the 
SCORE program for Fiscal Years 2017 and 2018. It also 
officially changes the name of the program from Service Corps 
of Retired Executives to SCORE.

Legislative History

    H.R. 1700 was introduced on March 23, 2017 by 
Representative Alma Adams. H.R. 1700 was included in H.R. 1774, 
Developing the Next Generation of Small Businesses Act, which 
later became part of H.R. 2810, the National Defense 
Authorization Act for Fiscal Year 2018. H.R. 2810 was reported, 
as amended, by the House Committee on Armed Services on July 6, 
2017, and passed the House on July 14, 2017 by a vote of 344-81 
(Roll Call No. 378). On September 18, 2017, the Senate passed 
H.R. 2810, as amended, by a vote of 89-8 (Roll Call No. 199). 
H.R. 1700 was not included in the final version of H.R. 2810. 
On July 10, 2018, H.R. 1700 passed the House under Suspension 
of the Rules by voice vote.

       SMALL BUSINESS DEVELOPMENT CENTERS IMPROVEMENT ACT OF 2017

                              (H.R. 1702)

Summary

    H.R. 1702 amends the Small Business Act to improve data 
collection methods for Small Business Development Centers 
(SBDC), allow SBDCs increased flexibility to effectively market 
their services, and implement confidentiality requirements to 
protect small business clients. Additionally, it requires the 
SBA to submit an annual report to Congress delineating all 
entrepreneurial development activity during the current fiscal 
year.

Legislative History

    H.R. 1702 was introduced on March 23, 2017 by 
Representative Dwight Evans. H.R. 1702 was included in H.R. 
1774, Developing the Next Generation of Small Businesses Act, 
and later became part of H.R. 2810, the National Defense 
Authorization Act for Fiscal Year 2018. H.R. 2810 was reported, 
as amended, by the House Committee on Armed Services on July 6, 
2017, and passed the House on July 14, 2017 by a vote of 344-81 
(Roll Call No. 378). On September 18, 2017, the Senate passed 
H.R. 2810, as amended, by a vote of 89-8 (Roll Call No. 199). 
H.R. 1702 was not included in the final version of H.R. 2810. 
On May 8, 2018, the House passed H.R. 1702, as amended, under 
Suspension of the Rules by voice vote.

          CLARITY FOR AMERICA'S SMALL CONTRACTORS ACT OF 2017

                              (H.R. 1773)

Summary

    H.R. 1773 amends the Small Business Act to expand and 
improve opportunities for America's small businesses to compete 
for federal contracts. The measure would: modernize the Small 
Business Act and the SBA's reporting requirements to ensure 
that the language used is clear across all federal procurement 
programs; strengthen small business advocates within the SBA 
and other agencies so they can promote competition and 
compliance; and improve opportunities for small businesses to 
compete for contracts.

Legislative History

    H.R. 1773 was introduced on March 29, 2017 by Chairman 
Steve Chabot. H.R. 1773 was included in H.R. 2810, the National 
Defense Authorization Act for Fiscal Year 2018. H.R. 2810 was 
reported, as amended, by the House Committee on Armed Services 
on July 6, 2017, passed the House, as amended, on July 14, 2017 
by a vote of 344-81 (Roll Call No. 378), and the Senate, as 
amended, on September 18, 2017, by a vote of 89-8 (Roll Call 
No. 199). H.R. 1773 was later included in the Conference Report 
for H.R. 2810, which passed the House on November 14, 2017 by a 
vote of 356-70 (Roll Call No. 631), the Senate on November 16, 
2017 by voice vote, was signed by the President on December 12, 
2017, and became Public Law Number 115-91.

     DEVELOPING THE NEXT GENERATION OF SMALL BUSINESSES ACT OF 2017

                              (H.R. 1774)

Summary

    H.R. 1774 amends the Small Business Act to reauthorize and 
improve the Small Business Administration's Small Business 
Development Centers (SBDC) program, the Women's Business 
Centers (WBC) program, and the SCORE program. The bill 
modernizes the SBDCs while increasing SBA's data collection 
compliance; enhances training and creates an accreditation 
process for WBCs; and requires the SCORE program to expand its 
use of online components and develop a strategic plan.

Legislative History

    H.R. 1774 was introduced on March 29, 2017 by 
Representative Nydia Velazquez. H.R. 1774 was included in H.R. 
2810, the National Defense Authorization Act for Fiscal Year 
2018. H.R. 2810 was reported, as amended, by the House 
Committee on Armed Services on July 6, 2017, and passed the 
House on July 14, 2017 by a vote of 344-81 (Roll Call No. 378). 
On September 18, 2017, the Senate passed H.R. 2810, as amended, 
by a vote of 89-8 (Roll Call No. 199). The House agreed to the 
Conference Report on November 14, 2017 by a vote of 356-20 
(Roll Call No. 631), the Senate on November 16, 2017 by voice 
vote. H.R. 1774 was not included in the final version of H.R. 
2810.

  TO AMEND THE SMALL BUSINESS ACT TO PROVIDE THE ADMINISTRATOR OF THE 
  SMALL BUSINESS ADMINISTRATION AUTHORITY TO INCREASE THE AMOUNT FOR 
             GENERAL BUSINESS LOANS, AND FOR OTHER PURPOSES

                              (H.R. 1915)

Summary

    H.R. 1915 amends the Small Business Act to provide that if 
the amount of Small Business Administration (SBA) commitments 
for authorized general business loans for a fiscal year exceeds 
the limit on the total amount of commitments the SBA may make 
for such loans under such Act, the SBA may make such 
commitments for such loans for such fiscal year in a total 
amount equal to up to 120% of that limit.

Legislative History

    H.R. 1915 was introduced on April 5, 2017 by Representative 
Nydia Velazquez. H.R. 1915 was included H.R. 4743, the Small 
Business 7(a) Lending Oversight Reform Act of 2018. On April 5, 
2017, the Committee on Small Business held a hearing to receive 
testimony from SBA Administrator Linda McMahon to discuss 
Administrative priorities. During the hearing, Members 
discussed with the Administrator the need to provide 
flexibility in the 7(a) authorization cap to ensure stability 
within the program. The Committee met in open session on March 
14, 2018 and ordered H.R. 4743 reported favorably, as amended, 
to the House by voice vote. On May 8, 2018, the House passed 
H.R. 4743, as amended, under Suspension of the Rules by voice 
vote. On June 5, 2018, the Senate passed the bill by unanimous 
consent. It was signed into law by the President on June 21, 
2018 and became Public Law Number 115-189.

                      MICROLOAN MODERNIZATION ACT

                              (H.R. 2056)

Summary

    H.R. 2056 would amend the Small Business Act to provide for 
expanded participation in the Microloan Program.

Legislative History

    H.R. 2056 was introduced on April 6, 2017 by Representative 
Stephanie Murphy. In the 114th Congress, the Subcommittee on 
Economic Growth, Tax and Capital Access held a hearing titled 
``Improving Capital Access Programs within the SBA'' on May 19, 
2015. At the hearing, the Subcommittee heard testimony from 
industry representatives about SBA capital access programs, 
including the Microloan program. On June 15, 2017, the 
Committee met in open session and ordered H.R. 2056 reported 
favorably to the House, as amended, by a 19-0 vote. On July 24, 
2017, H.R. 2056 passed the House under Suspension of the Rules 
by voice vote.
    H.R. 2056 was included in H.R. 5515, the National Defense 
Authorization Act for Fiscal Year 2019. H.R. 5515 passed the 
House on May 24, 2018 by a vote of 351-66 (Roll Call No. 230) 
and the Senate, as amended, on June 18, 2018 by a vote of 85-10 
(Roll Call Number 128). The conference report for H.R. 5515 
passed the House on July 26, 2018 by a vote of 359-54 (Roll 
Call No. 379), the Senate on August 1, 2018 by a vote of 87-10 
(Roll No. 181), was signed by the President on August 13, 2018 
and became Public Law Number 115-232.

               SMALL BUSINESS INVESTMENT OPPORTUNITY ACT

                              (H.R. 2333)

Summary

    H.R. 2333 would amend the Small Business Investment Act of 
1958 to increase the amount of leverage available to small 
business investment companies.

Legislative History

    H.R. 2333 was introduced on May 3, 2017 by Representative 
Steve Knight. In the 114th Congress, the Subcommittee on 
Economic Growth, Tax and Capital Access held a hearing titled 
``Improving Capital Access Programs within the SBA.'' The 
Subcommittee heard testimony from witnesses on capital access 
programs, including the Small Business Investment Company 
Program, and urged the Subcommittee to support legislation to 
increase the amount of private funds available to small firms. 
On June 15, 2017, the Committee met in open session and ordered 
H.R. 2333 reported favorably to the House, as amended, by a 21-
0 vote. On July 24, 2017, the House passed H.R. 2333 under 
Suspension of the Rules by voice vote. On June 5, 2018, the 
Senate passed the bill by unanimous consent. It was signed into 
law by the President on June 21, 2018 and became Public Law 
Number 115-187.

    SMALL BUSINESS KNOW-BEFORE-YOU-BID-CONSTRUCTION TRANSPARENCY ACT

                              (H.R. 2350)

Summary

    H.R. 2350 would amend the Small Business Act to foster 
greater transparency in, and establish standards related to the 
administration of modifications to small business construction 
contracts.

Legislative History

    H.R. 2350 was introduced by on May 4, 2017 by 
Representative Don Bacon.

                  INVESTING IN MAIN STREET ACT OF 2017

                              (H.R. 2364)

Summary

    H.R. 2364 would amend the Small Business Investment Act of 
1958 to increase the percentage that certain banks and savings 
associations may invest in small business investment companies.

Legislative History

    H.R. 2364 was introduced on May 4, 2017 by Representative 
Judy Chu. On July 25, 2013, the Subcommittee on Investigations, 
Oversight and Regulations held a hearing titled ``Examining the 
Small Business Investment Company Program.'' The Subcommittee 
reviewed whether the Small Business Investment Company (SBIC) 
Program is meeting the needs of small business owners and 
reducing risk to taxpayers. The Committee heard from witnesses 
who strongly supplied allowing experienced managers of SBIC 
funds to increase their leverage, making more private capital 
available to investors.
    On May 19, 2015, the Subcommittee on Economic Growth, Tax 
and Capital Access held a hearing titled ``Improving Capital 
Access Programs within the SBA.'' The Subcommittee heard 
testimony from witnesses on capital access programs, including 
the Small Business Investment Company Program, and urged the 
Subcommittee to support legislation to increase the amount of 
private funds available to small firms. On June 15, 2017, the 
Committee met in open session and ordered H.R. 2364 reported 
favorably to the House by a 21-0 vote. On July 24, 2017, the 
House passed H.R. 2364 under Suspension of the Rules by voice 
vote. Portions of H.R. 2364 were included in H.R. 5515, the 
National Defense Authorization Act for Fiscal Year 2019, which 
passed the House on May 24, 2018 by a vote of 351-66 (Roll Call 
No. 230), the Senate, as amended, on June 18, 2018 by a vote of 
85-10 (Roll No. 128). Those portions were later removed from 
the conference report on H.R. 5515. H.R. 2364 was also included 
in H.R. 6147, the Interior, Environment, Financial Services and 
General Government Appropriations Act of 2019 and S. 488, the 
JOBS and Investor Confidence Act of 2018, both of which failed 
to advance.

           PUERTO RICO SMALL BUSINESS ASSISTANCE ACT OF 2017

                              (H.R. 2488)

Summary

    H.R. 2489 would amend the Small Business Act regarding 
small businesses that have their principal office in Puerto 
Rico, including to temporarily: (1) increase the total amount 
of loans outstanding and committed to any microloan 
intermediary if at least 20% of the intermediary's loans are 
made to such businesses; (2) waive the Small Business 
Administration (SBA) Microloan Program's limit on an 
intermediary's spending on technical assistance for prospective 
borrowers if 25% of the intermediary's loans are made to these 
businesses; (3) reduce or eliminate SBA fees on certain loans 
to such businesses; and (4) give federal contract preference to 
such businesses, transfer specified technology or surplus 
property to them, and provide subcontracting incentives for 
their protege films. It would also require the SBA to 
establish: (1) a Veteran Business Outreach Center in Puerto 
Rico, and (2) a temporary Federal and State Technology (FAST) 
grant program to provide assistance to Puerto Rico businesses.

Legislative History

    H.R. 2488 was introduced by Representative Nydia Velazquez 
on May 17, 2017.

   TO AMEND THE SMALL BUSINESS INVESTMENT ACT OF 1958 AND THE SMALL 
  BUSINESS ACT TO INCLUDE SMALL BUSINESS INVESTMENT COMPANIES IN THE 
   SMALL BUSINESS INNOVATION RESEARCH AND SMALL BUSINESS TECHNOLOGY 
                           TRANSFER PROGRAMS

                              (H.R. 2489)

Summary

    H.R. 2489 would amend the Small Business Investment Act of 
1958 and the Small Business Act to include Small Business 
Investment Companies in the Small Business Innovation Research 
and Small Business Technology Transfer Programs.

Legislative History

    H.R. 2489 was introduced by Representative Nydia Velazquez 
on May 17, 2017.

               SMALL BUSINESS PAYMENT FOR PERFORMANCE ACT

                              (H.R. 2594)

Summary

    H.R. 2594 would amend the Small Business Act to ensure that 
small business federal contractors are paid in a timely manner 
for change orders.

Legislative History

    H.R. 2594 was introduced on May 23, 2017 by Representative 
Brian Fitzpatrick. On May 25, 2017, a joint hearing was held by 
the Small Business Subcommittee on Contracting and Workforce 
and the Subcommittee on Investigations, Oversight and 
Regulations on federal contracting change orders. On June 15, 
2017, the Committee met in open session and ordered H.R. 2594 
reported favorably to the House, as amended, by a 21-0 vote.

                SMALL BUSINESS INNOVATION PROTECTION ACT

                              (H.R. 2655)

Summary

    H.R. 2655 would amend the Small Business Act to expand 
intellectual property education and training for small 
businesses by establishing a partnership between the United 
States Small Business Administration and the United States 
Patent and Trademark Office.

Legislative History

    H.R. 2655 was introduced on May 25, 2018 by Representative 
Dwight Evans. On March 14, 2017, the Committee met in open 
session and ordered H.R. 2655 reported favorably by voice vote. 
On May 21, 2018, the Committee on the Judiciary discharged H.R. 
2655 in a letter to the House Committee on Small Business. On 
July 10, 2018, H.R. 2655 passed the House under Suspension of 
the Rules by voice vote. The Senate version of the bill, S. 
791, was passed by voice vote in the Senate on July 18, 2018. 
The Committee on Small Business and the House Committee on the 
Judiciary discharged S. 791 in an exchange of letters on 
September 20, 2018. On September 25, 2018, S. 791 passed the 
House under Suspension of the Rules by voice vote. On October 
9, 2018, S. 791 was signed by the President and became Public 
Law Number 115.

             SBIR COMMERCIALIZATION ASSISTANCE ACT OF 2017

                              (H.R. 2702)

Summary

    H.R. 2702 would amend the Small Business Act to require a 
federal agency required to have a Small Business Innovation 
Research (SBIR) program (covered agency) to implement a 
commercialization assistance pilot program (CAPP), under which 
an eligible entity may receive a subsequent Phase II SBIR award 
through FY2022, unless the Small Business Administration 
determines that the agency already has a program sufficiently 
similar to a CAPP.

Legislative History

    H.R. 2702 was introduced by Representative Al Lawson on May 
25, 2017. H.R. 2702 was included as an amendment to H.R. 2763, 
the Small Business Innovation Research and Small Business 
Transfer Improvements Act of 2017. The bill was included in the 
Conference Report for H.R. 5515, the John S. McCain National 
Defense Authorization Act for Fiscal Year 2019, which passed 
the House on July 26, 2018 by a vote of 359-54 (Roll No. 379), 
the Senate on August 1, 2018 by a vote of 87-10 (Roll No. 181), 
was signed by the President on August 13, 2018 and became 
Public Law Number 115-232.

     SMALL BUSINESS INNOVATION RESEARCH PROGRAM AND SMALL BUSINESS 
                  TECHNOLOGY TRANSFER IMPROVEMENTS ACT

                              (H.R. 2763)

Summary

    H.R. 2763 improves agency accountability, including several 
hard reporting deadlines for participating agencies and for the 
Small Business Administration (SBA) to provide future 
Congresses with better information and a greater understanding 
of the programs' strengths and weaknesses. It also statutorily 
requires the Secretary of Defense to set a goal to increase the 
number of Phase II contracts that lead to technology insertion 
into programs of record or fielded systems and to use 
incentives to encourage agency program managers and prime 
contractors to meet that goal. The bill also allows 
participating agencies to establish a new, separate 
Commercialization Assistance Pilot Program, if the agency is 
not currently operating such a similar program, within one year 
of passage of the bill. Finally, the legislation extends three 
popular pilot programs also established by Public Law 112-81 
through FY 2022, when the full program will need a full 
reauthorization. One pilot provides authority for participating 
agencies to utilize 3 percent of the SBIR program for costs 
relating to administrative, oversight, and contract processing 
activities. Another pilot allows participating agencies to 
offer a straight to Phase II option for small firms that have 
established they have completed the work traditionally done in 
Phase I of the program. The last pilot carves out a small 
portion of the STIR funding to establish Phase ``Proof of 
Concept'' grants to universities engaged in entrepreneurship 
building to create new small firms spun out of university 
research.

Legislative History

    H.R. 2763 was introduced by Representative Steve Knight on 
May 30, 2017. It was referred to the Committee on Small 
Business and the Committee on Science, Space and Technology. On 
October 11, 2017, the bill passed the House under Suspension of 
the Rules by voice vote. Provisions of the bill were included 
in the Conference Report for H.R. 2810, the National Defense 
Authorization Act for Fiscal Year 2018, which passed the House 
on November 14, 2017 by a vote of 366-70 (Roll Call No. 631), 
the Senate on November 16, 2017 by voice vote, was signed by 
the President on December 12, 2017 and became Public Law Number 
115-91. Additional provisions were included in the Conference 
Report for H.R. 5515, which passed the House on July 26, 2018 
by a vote of 359-54 (Roll No. 379), the Senate on August 1, 
2018 by a vote of 87-10 (Roll No. 181), was signed by the 
President on August 13, 2018 and became Public Law Number 115-
232.

          SMALL BUSINESS DEVELOPMENT CENTER CYBER TRAINING ACT

                              (H.R. 3170)

Summary

    H.R. 3170 would improve cybersecurity resources for small 
businesses. Specifically, H.R. 3170 would amend the Small 
Business Act to require cyber certification for small business 
development center counselors.

Legislative History

    H.R. 3170 was introduced by Chairman Steve Chabot on July 
10, 2017. It was referred to the Committee on Small Business. 
During the 115th Congress, the Committee held a number of 
hearings, detailed elsewhere in this report, on cybersecurity 
issues. The Committee met in open session on March 14, 2018 and 
ordered H.R. 3170 reported favorably to the House by voice 
vote. On May 8, 2018, the House passed H.R. 3170 under 
Suspension of the Rules by voice vote.

         HUBZONE UNIFICATION AND BUSINESS STABILITY (HUBS) ACT

                              (H.R. 3294)

Summary

    H.R. 3294 would improve and reform the Historically 
Underutilized Business Zone (HUBZone) Program, a procurement 
program that provides federal assistance to firms in 
economically distressed areas. H.R. 3294 includes new program 
performance metrics, an accelerated application process, and a 
five year cycle to determine the program's geographic 
boundaries, to increase certainty for participating companies.

Legislative History

    H.R. 3294 was introduced by Ranking Member Nydia Velazquez 
on July 19, 2017. It was referred to the Committee on Small 
Business. During the 114th and 115th Congresses, the Committee 
held several hearings on the HUBZone program. On September 13, 
2017, the Committee held a legislative hearing on H.R. 3294 in 
which the Committee heard from small contractors about the 
challenges of the HUBZone program. H.R. 3294 was included in 
H.R. 2810, the National Defense Authorization Act for Fiscal 
Year 2018. H.R. 2810 was reported, as amended, by the House 
Committee on Armed Services on July 6, 2017, and passed the 
House on July 14, 2017 by a vote of 344-81 (Roll Call No. 378). 
On September 18, 2017, the Senate passed H.R. 2810, as amended, 
by a vote of 89-8 (Roll Call No. 199). H.R. 3294 was included 
in the Conference Report for H.R. 2810, which passed the House 
on November 14, 2017 by a vote of 356-70 (Roll Call No. 631), 
the Senate on November 16, 2017 by voice vote, was signed into 
law by the President on November 16, 2017, and became Public 
Law No. 115-91.

         SMALL BUSINESS OWNERS' TAX SIMPLIFICATION ACT OF 2017

                              (H.R. 3717)

Summary

    H.R. 3717 would update the United States Code to simplify 
tax compliance for small businesses. In particular, the bill 
would help to reduce complexity and simplify filing for 
entrepreneurs.

Legislative History

    H.R. 3717 was introduced by Chairman Steve Chabot on 
September 8, 2017. It was referred to the House Committee on 
Ways and Means. The Committee has held several hearings and 
roundtables on reforming the tax code and the need to expand 
``cafeteria'' benefit plans. On September 27, 2017, the 
Committee held a legislative hearing on the challenges small 
business owners face in grappling with a voluminous and 
complicated tax code.

          SPURRING SMALL BUSINESSES IN COMMUNITIES ACT OF 2017

                              (H.R. 4111)

Summary

    H.R. 4111 would amend the Small Business Act of 1958 to 
improve the number of small business investment companies in 
under-licensed states.

Legislative History

    H.R. 4111 was introduced by Representative Cathy McMorris 
Rodgers on October 24, 2017. It was referred to the House 
Committee on Small Business. On May 8, 2018, the House passed 
H.R. 4111 under Suspension of the Rules by voice vote. On 
December 6, 2018, the Senate passed H.R. 4111.

    SMALL BUSINESS ADVANCED CYBERSECURITY ENHANACEMENTS ACT OF 2017

                              (H.R. 4668)

Summary

    H.R. 4668 would amend the Small Business Act to provide to 
establish Small Business Development Centers (SBDCs) as the 
primary interface for federal information sharing for small 
businesses; to ensure small businesses that share cyber 
indicators through SBDCs receive the same protections and 
exemptions provided in the Cybersecurity Information Sharing 
Act of 2015; to ensure that any policies or rulemaking adopted 
by any federal agency as a result of small business cyber 
information sharing do not unfairly burden small businesses; 
and, to expand liability protections for small businesses that 
engage with the federal government in good faith.

Legislative History

    H.R. 4668 was introduced by Chairman Steve Chabot on 
December 18, 2017. It was referred to the Committee on Small 
Business. The Committee has held a number of hearings on cyber 
security for small business and the need to help small firms 
protect their data, including those held on July 26, 2017 and 
January 30, 2018. The Committee met in open session on March 
14, 2018 and ordered H.R. 4668 reported favorably, as amended, 
to the House by voice vote.

     SMALL BUSINESS BROADBAND AND EMERGING INFORMATION TECHNOLOGY 
                        ENHANCEMENT ACT OF 2017

                              (H.R. 4677)

Summary

    H.R. 4677 would improve certain programs of the SBA to 
better assist small business customers in accessing broadband 
technology.

Legislative History

    H.R. 4677 was introduced by Representative Seth Moulton on 
December 18, 2017. It was referred to the House Committee on 
Small Business. H.R. 4677 was included in H.R. 5515, the John 
S. McCain National Defense Authorization Act for Fiscal Year 
2019, which passed the House on May 24, 2018 by a vote of 351-
66 (Roll Call No. 230), the Senate, as amended, on June 18, 
2018 by a vote of 85-10 (Roll No. 128). Several provisions were 
later removed from the Conference Report on H.R. 5515, which 
passed the House on July 26, 2018 by a vote of 359-54 (Roll No. 
379), the Senate on August 1, 2018 by a vote of 87-10 (Roll No. 
181), was signed by the President on August 13, 2018 and became 
Public Law Number 115-232.

        SMALL BUSINESS 7(A) LENDING OVERSIGHT REFORM ACT OF 2017

                              (H.R. 4743)

Summary

    H.R. 4743 would improve oversight of SBA's 7(a) Loan 
Program. It would do this by: 1) codifying the Office of Credit 
Risk Management and its duties; 2) requiring SBA to detail its 
oversight budget in a transparent manner; and 3) requiring SBA 
to perform a full risk analysis of the 7(a) program annually. 
The bill would also strengthen SBA's Credit Elsewhere Test by 
clarifying the factors that SBA must consider in determining 
whether the test has been met.

Legislative History

    H.R. 4743 was introduced by Chairman Steve Chabot on 
January 9, 2018. It was referred to the Committee on Small 
Business. During the 114th and 115th Congresses, the Committee 
held several beatings on the 7(a) Program, including hearings 
on March 9, 2017 and May 17, 2017. The Committee held a 
legislative hearing on H.R. 4743 on January 17, 2018. The 
Committee met in open session on March 14, 2018 and ordered 
H.R. 4743 reported favorably, as amended, to the House by voice 
vote. On May 8, 2018, the House passed H.R. 4743, as amended, 
under Suspension of the Rules by voice vote. On June 5, 2018, 
the Senate passed the bill by unanimous consent. It was signed 
into law by the President on June 21, 2018 and became Public 
Law Number 115-189.

         CHANGE ORDER TRANSPARENCY FOR FEDERAL CONTRACTORS ACT

                              (H.R. 4754)

Summary

    H.R. 4754 would amend the Small Business Act to provide 
prospective construction contractors with information about an 
agency's policies on the administration of contract change 
orders. This would allow small contractors to make informed 
business decisions regarding the pricing of contract bids or 
proposals.

Legislative History

    H.R. 4754 was introduced by Representative Don Bacon, a 
former Member of the Small Business Committee, on January 30, 
2018. The bill was referred to the Committee on Small Business. 
The Subcommittees on Contracting and Workforce and 
Investigations, Oversight, and Regulations held a joint hearing 
on contract change order issues on May 25, 2017. On May 8, 
2018, the House passed H.R. 4754, under Suspension of the 
Rules, by voice vote.
    H.R. 4754 was included in H.R. 5515, the National Defense 
Authorization Act for Fiscal Year 2019. H.R. 5515 passed the 
House on May 24, 2018 by a vote of 351-66 (Roll Call No. 230), 
and the Senate, as amended, on June 18, 2018 by a vote of 85-10 
(Roll Call Number 128). The conference report for H.R. 5515 
passed the House on July 26, 2018 (Roll Call No. 379), the 
Senate on August 1, 2018 by a vote of 871-10 (Roll No. 181), 
was signed by the President on August 13, 2018, and became 
Public Law Number 115-232).

       SERVICE-DISABLED VETERANS SMALL BUSINESS CONTINUATION ACT

                              (H.R. 5044)

Summary

    H.R. 5044 would amend the Small Business Act to clarify the 
treatment of certain surviving spouses of service-disabled 
veterans under the contracting goals and small business 
preferences of the Department of Veterans Affairs.

Legislative History

    H.R. 5044 was introduced by Chairman Steve Chabot on 
February 15, 2018. The House Committee on Veterans Affairs met 
in open session on May 18, 2018 and ordered H.R. 5044 reported 
favorably to the House by voice vote. On May 21, 2018, the 
House passed H.R. 5044 under Suspension of the Rules by voice 
vote.

                       CONTRACTING COMPLIANCE ACT

                              (H.R. 5144)

Summary

    H.R. 5144 would require the Comptroller General of the 
United States to report on compliance of contracting agencies 
with subcontracting plans and subcontracting goals under the 
Small Business Act.

Legislative History

    H.R. 5144 was introduced by Representative Rod Blum on 
March 1, 2018. The bill was referred to the Committee on Small 
Business.

         PUERTO RICO SMALL BUSINESS CONTRACTING ASSISTANCE ACT

                              (H.R. 5178)

Summary

    H.R. 5178 would amend the Small Business Act to provide 
double agency credit for contract awards to Puerto Rico small 
businesses as well as a number of additional incentives 
promoting the selection of Puerto Rico small businesses as 
proteges for purposes of increasing and promoting Puerto Rico 
small business participation in the federal marketplace.

Legislative History

    H.R. 5178 was introduced by Representative Nydia Velazquez 
on March 6, 2018 and was referred to the Committee on Small 
Business. The Committee met in open session on March 14, 2018 
and ordered H.R. 5178 reported favorably to the House by voice 
vote. H.R. 5178 was included in H.R. 5515, the National Defense 
Authorization Act for Fiscal Year 2019, which passed the House 
on May 24, 2018 (Roll Call No. 230) and the Senate, as amended, 
on June 18, 2018 by a vote of 85-10 (Roll No. 128). The 
Conference Report for H.R. 5515 passed the House on July 26, 
2018 by a vote of 359-54 (Roll Call No. 379), the Senate on 
August 1, 2018 by a vote of 87-10 (Roll No. 181), was signed by 
the President on August 13, 2018 and became Public Law Number 
115-232.

                   MAIN STREET EMPLOYEE OWNERSHIP ACT

                              (H.R. 5236)

Summary

    H.R. 5236 would amend the Small Business Act to expand 
lending options available to employee-owned small businesses 
through Small Business Administration loan programs.

Legislative History

    H.R. 5236 was introduced by Ranking Member Nydia Velazquez 
on March 8, 2018 and was referred to the Committee on Small 
Business. The Committee met in open session on March 14, 2018 
and ordered H.R. 5236 reported favorably, as amended, to the 
House by voice vote. On May 8, 2018, the House passed H.R. 
5236, as amended, under Suspension of the Rules by voice vote. 
H.R. 5236 was included in H.R. 5515, the National Defense 
Authorization Act for Fiscal Year 2019, which passed the House 
on May 24, 2018 (Roll Call No. 230) and the Senate, as amended, 
on June 18, 2018 by a vote of 85-10 (Roll No. 128). The 
Conference Report for H.R. 5515 passed the House on July 26, 
2018 by a vote of 359-54 (Roll Call No. 379), the Senate on 
August 1, 2018 by a vote of 87-10 (Roll No. 181), was signed by 
the President on August 13, 2018 and became Public Law Number 
115-232.

         ACCELERATED PAYMENTS OF SMALL BUSINESS CONTRACTORS ACT

                              (H.R. 5337)

Summary

    H.R. 5337 would amend Section 3903 of title 31 of the 
United States Code to establish accelerated payments applicable 
to contracts with certain small businesses.

Legislative History

    H.R. 5337 was introduced by Representative Steve Knight on 
March 20, 2018. It was referred to the Committee on Oversight 
and Government Reform. H.R. 5337 was included in H.R. 5515, the 
National Defense Authorization Act for Fiscal Year 2019, which 
passed the House on May 24, 2018 by a vote of 351-66 (Roll No. 
230) and the Senate, as amended, on June 18, 2018 (Roll No. 
128). It was included in the conference report on H.R. 5515, 
which passed the House on July 26, 2018 by a vote of 359-54 
(Roll Call No. 379), the Senate on August 1, 2018 (Roll No. 
181), was signed by the President on August 13, 2018 and became 
Public Law Number 115-232.

                SMALL BUSINESS ADVOCACY IMPROVEMENTS ACT

                              (H.R. 6316)

Summary

    H.R. 6316 would clarify the functions and duties of the 
Office of Advocacy of the Small Business Administration to 
explicitly permit the Office of Advocacy to examine the rule of 
small business in international economies and to represent 
small business views and interests before foreign governments 
and international entities. The bill also corrects two spelling 
errors in Section 202 of Public Law 94-305.

Legislative History

    H.R. 6316 was introduced by Representative James Comer on 
July 6, 2018. It was referred to the Committee on Small 
Business. The Committee met in open session on July 18, 2018 
and ordered H.R. 6316 reported favorably, as amended, to the 
House by voice vote. On September 25, 2018, the House passed 
H.R. 6316 under suspension of the rules by voice vote.

              SMALL BUSINESS RUNWAY EXTENSION ACT OF 2018

                              (H.R. 6330)

Summary

    H.R. 6330 would amend the Small Business Act to modify the 
method for prescribing size standards for small business 
concerns.

Legislative History

    H.R. 6330 was introduced by Representative Steve Knight on 
July 11, 2018. It was referred to the Committee on Small 
Business. The Committee met in open session on July 18, 2018 
and ordered H.R. 6330 reported favorably, as amended, to the 
House by voice vote. H.R. 6330 passed the House on September 
28, 2018 under suspension of the rules by voice vote. On 
December 6, 2018, the Senate passed H.R. 6330.

            THE 7(A) REAL ESTATE APPRAISAL HARMONIZATION ACT

                              (H.R. 6347)

Summary

    H.R. 6347 would adjust the real estate appraisal thresholds 
under the 7(a) program to bring them into line with the 
thresholds used by federal banking regulators.

Legislative History

    H.R. 6347 was introduced on July 12, 2018 by Representative 
Dwight Evans. It was referred to the Committee on Small 
Business. The Committee met in open session on July 18, 2018 
and ordered H.R. 6347 reported favorably, as amended, to the 
House by voice vote. On September 25, 2018, the House passed 
H.R. 6347 under suspension of the rules by voice vote.

       SMALL BUSINESS ACCESS TO CAPITAL AND EFFICIENCY (ACE) ACT

                              (H.R. 6348)

Summary

    H.R. 6348 would adjust the real estate appraisal thresholds 
under the Small Business Investment Act's 504 program to bring 
them into line with the thresholds used by federal regulators.

Legislative History

    H.R. 6348 was introduced by Representative John Curtis on 
July 12, 2018. It was referred to the Committee on Small 
Business. The Committee met in open session on July 18, 2018 
and ordered H.R. 6348 reported favorably, as amended, to the 
House by voice vote. On September 25, 2018, the House passed 
H.R. 6348 under suspension of the rules by voice vote.

          INCENTIVIZING FAIRNESS IN SUBCONTRACTING ACT OF 2018

                              (H.R. 6367)

Summary

    H.R. 6367 would amend the Small Business Act to specify 
what credit is given to prime contractors under their 
subcontracting plans for contracting with certain small 
subcontractors and to provide an alternative dispute process 
for prime contractor non-payment to small subcontractors.

Legislative History

    H.R. 6367 was introduced by Representative Al Lawson on 
July 13, 2018. It was referred to the Committee on Small 
Business. The Committee met in open session on July 18, 2018 
and ordered H.R. 6367 reported favorably, as amended, to the 
House by voice vote. H.R. 6367 passed the House on September 
25, 2018 under suspension of the rules by voice vote.

               ENCOURAGING SMALL BUSINESS INNOVATORS ACT

                              (H.R. 6368)

Summary

    H.R. 6368 would encourage R&D small business set asides, to 
encourage SBIR and STTR participants to serve as mentors under 
the Small Business Administration's mentor-protege program and 
to promote the use of interagency contracts.

Legislative History

    H.R. 6368 was introduced by Representative Adriano 
Espaillat on July 13, 2018. It was referred to the Committees 
on Small Business, Science, Space, and Technology, and 
Oversight and Government Reform. The Committee met in open 
session on July 18, 2018 and ordered H.R. 6368 reported 
favorably, as amended, to the House by voice vote. H.R. 6368 
was included in the conference report for H.R. 5515, the John 
S. McCain National Defense Authorization Act for FY 2019, which 
passed the House on July 26, 2018 by a vote of 359-54 (Roll 
Call Number 379), the Senate on August 1, 2018 by a vote of 87-
10 (Roll No. 181), was signed by the President on August 13, 
2018 and became Public Law Number 115-232.

  EXPANDING CONTRACTING OPPORTUNITIES FOR SMALL BUSINESSES ACT OF 2018

                              (H.R. 6369)

Summary

    H.R. 6369 would amend the Small Business Act to eliminate 
the inclusion of option years in the award price for sole 
source contracts and institute a new oversight mechanism 
ensuring sole source awards are made to eligible women-owned 
and service-disabled veteran-owned small businesses.

Legislative History

    H.R. 6369 was introduced by Representative Roger Marshall 
on July 13, 2018. It was referred to the Committee on Small 
Business. The Committee met in open session on July 18, 2018 
and ordered H.R. 6369 reported favorably, as amended, to the 
House. H.R. 6369 passed the House on September 25, 2018 under 
suspension of the rules by a vote of 392-5.

 CLARITY ON SMALL BUSINESS PARTICIPATION IN CATEGORY MANAGEMENT ACT OF 
                                  2018

                              (H.R. 6382)

Summary

    H.R. 6382 would require the Small Business Administration 
to report on information regarding the total amount of spending 
across the government on contracts designated as best-in-class, 
and the total spent on goods and services for certain small 
businesses in an existing annual report, as soon as such 
information is available in the Federal Procurement Database 
System.

Legislative History

    H.R. 6382 was introduced by Representative Alma Adams on 
July 16, 2018. It was referred to the Committee on Small 
Business. The Committee met in open session on July 18, 2018 
and ordered H.R. 6382 reported favorably, as amended, to the 
House by voice vote. On September 25, 2018, the House passed 
H.R. 6382 under suspension of the rules by voice vote.

  ACCESS TO SUFFICIENT CAPITAL FOR EVERYONE IN NATURAL DISASTER AREAS 
                          (ASCEND) ACT OF 2018

                              (H.R. 6826)

Summary

    H.R. 6826 would amend the Small Business Act to provide an 
application extension for victims of Hurricanes Harvey, Irma, 
and Maria. It also extends the collateral requirements for 
disaster loans under the RISE After Disaster Act of 2015 for 5 
years.

Legislative History

    H.R. 6826 was introduced by Representative Nydia Velazquez 
on September 13, 2018.

EXPRESSING SUPPORT FOR THE DESIGNATION OF APRIL 29, 2018 THROUGH MAY 5, 
                  2018 AS NATIONAL SMALL BUSINESS WEEK

                             (H. RES. 840)

Summary

    H. Res. 840 would designate the week of April 29, 2018 
through May 5, 2018 as ``National Small Business Week.''

Legislative History

    H. Res. 840 was introduced on April 24, 2018 by Chairman 
Steve Chabot with Ranking Member Nydia Velazquez and all 
Members of the Committee on Small Business. It was referred to 
the C01mnittee on Small Business.

      RECOGNIZING NOVEMBER 4, 2018 AS ``SMALL BUSINESS SATURDAY''

                             (H. RES. 1144)

Summary

    H. Res. 1144 would designate November 24, 2018 as ``Small 
Business Saturday'' and support efforts to increase awareness 
of the value of locally owned small businesses.

Legislative History

    H. Res. 1144 was introduced on November 13, 2018 by 
Chairman Steve Chabot with Ranking Member Nydia Velazquez. It 
was referred to the Committee on Small Business.

                           OVERSIGHT SUMMARY

    Clause 1(d) of rule XI of the Rules of the House of 
Representatives for the 115th Congress requires each standing 
committee, not later than January 2 of each odd numbered year, 
to submit to the House a report on the activities of that 
committee, including a separate section summarizing the 
oversight activities of that committee. The report shall also 
include a delineation of any hearings held pursuant to clauses 
2(n), (o), or (p) of rule XI related to waste, fraud and abuse 
in government programs.

                                 PART A

                        Full Committee Hearings

HEARING: ``REIMAGINING THE HEALTH CARE MARKETPLACE FOR AMERICA'S SMALL 
                              BUSINESSES''

    On February 7, 2017 the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Reimagining the Health Care Marketplace for America's 
Small Businesses.'' The hearing was called to examine the 
current health insurance marketplace for small firms, review 
recent difficulties, and explore options to improve access, 
affordability, and consistency in America's health insurance 
market.
    The Affordable Care Act made numerous and significant 
changes to the way health care is financed, organized, and 
delivered in the United States. The law included a multifaceted 
set of interconnected provisions that addressed how the private 
health insurance market functions.
    Witnesses on the panel were: Mr. Tom Secor, President, 
Durable Corporation, Norwalk, OH, testifying on behalf of the 
National Small Business Association; Mr. Keith Hall, President 
and CEO, National Association for the Self Employed, 
Washington, DC; Mr. Kevin Kuhlman, Director of Government 
Relations, National Federation of Independent Business, 
Washington, DC; and Ms. Dania Palanker, Assistant Research 
Professor, Center on Health Insurance Reforms, Health Policy 
Institute, Georgetown University, Washington, DC.
    At the hearing, Chairman Chabot stated that doing nothing 
is not an option because the current system is in a death 
spiral, and it is important to remember that the damage done by 
the health care law was not limited to the new problems it 
created for the health care marketplace. It also exacerbated 
and made long-standing problems worse in that marketplace. Mr. 
Secor testified that fewer and fewer small businesses, 
especially those with fewer than 50 employees, offer health 
insurance as an employee benefit. This is not because they do 
not want to, or cannot find an insurance carrier in their 
market; it is because they simply cannot afford to offer a 
plan. He also emphasized that since the law was enacted, his 
business has many fewer choices of health care law--approved 
plans. Mr. Hall testified that his members view their health 
insurance purchase as a business decision and unfortunately the 
self-employed and micro-business owners currently do not 
receive the same tax incentives as other businesses. Mr. 
Kuhlman testified that because of the law, there has been a 
significant 25 percent reduction in the offer rate for small 
businesses between 2010 and 2015. He added that for the first 
time ever, fewer than 30 percent of businesses with under 50 
employees offered health insurance to their employees in 2015. 
Ms. Palanker stated that small businesses were better off today 
than they were prior to enactment of the law because of greater 
choices in the types of benefits offered by the health care 
laws' coverage mandates.

      HEARING: ``START-UPS STALLING? THE TAX CODE AS A BARRIER TO 
                           ENTREPRENEURSHIP''

    On February 15, 2017, the Committee on Small Business S met 
in Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Start-ups Stalling? The Tax Code as a Barrier to 
Entrepreneurship.'' The hearing examined the extent to which 
the tax code operates as a barrier to entrepreneurship.
    The witnesses for the hearing were: Mr. Kyle Pomerleau, 
Director of Federal Projects, Tax Foundation, Washington, DC; 
Mr. David Burton, Senior Fellow, Economic Policy, The Heritage 
Foundation, Washington, DC; Mr. Tim Reynolds, President, 
Tribute Inc., Hudson, OH, testifying on behalf of the National 
Small Business Association; and Mr. Troy Lewis, Tax Executive 
Committee Immediate Past Chair, American Institute of CPAs, 
Washington, DC.
    Mr. Pomerleau focused on the tax treatment of business 
losses, capital losses, and business investment, as well as the 
relatively high tax rates on business income, as barriers to 
entrepreneurial ventures that tend to run losses for some time 
before turning a profit. Mr. Burton identified the four largest 
sources of complexity in the tax law as: (1) capital cost 
recovery; (2) inventory accounting; (3) employee benefit 
taxation; and (4) international taxation; and he made about a 
dozen recommendations for changes going forward. Mr. Reynolds 
echoed some of Mr. Pomerleau's and Mr. Burton's concerns, 
adding that his company, because it is an S corporation, cannot 
avail itself of the research and experimentation (R&E) tax 
credit because he is often personally subject to the 
alternative minimum tax (AMT). Mr. Lewis addressed more than a 
dozen issues that would help to reduce tax barriers to start-
ups; including defining and distinguishing compensation; 
creating a safe harbor for employees who travel out of state; 
and simplifying tax penalties and administration.

    HEARING: ``SMALL BUSINESS CYBERSECURITY: FEDERAL RESOURCES AND 
                             COORDINATION''

    On March 8, 2017, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Small Business Cybersecurity: Federal Resources and 
Coordination.'' The hearing was called to examine the steps the 
federal government is taking to ensure that small businesses 
have the tools they need to protect themselves from cyber 
threats. Although many federal agencies provide cybersecurity 
resources for small businesses, there is a lack of coordination 
between the various agencies. The agencies should ensure that 
small businesses can access these tools to protect and combat 
cyber attacks in an efficient and effective manner.
    Witnesses on the only panel were: The Honorable Maureen K. 
Ohlhausen, Acting Chairman, Federal Trade Commission, 
Washington, DC; Chuck Romine, Ph.D., Director, Information 
Technology Lab, Gaithersburg, MD; Mr. Charles ``Tee'' Rowe, 
President and CEO, America's Small Business Development 
Centers, Arlington, VA; and Mr. Jim Mooney, President and CEO, 
Chevron Federal Credit Union, Cybersecurity Committee Chair, 
National Association of Federally Insured Credit Unions, 
Arlington, VA.
    At the hearing, Chairman Chabot stated that the federal 
government needs to step up its game in protecting the cyber 
security of small businesses. He said that federal agencies 
tasked with providing small businesses with cybersecurity 
resources can be even better coordinated and should reduce 
duplicative resources and processes to ensure that small 
businesses are equipped to deal with growing cyber threats. Ms. 
Ohlhausen testified that data is an increasingly vital asset 
for small businesses, and as companies collect more personal 
information from consumers, the databases they create become 
more attractive targets for criminals. She stated that the 
Federal Trade Commission (FTC) is committed to protecting 
consumer privacy and promoting data security in the private 
sector using flexible tools. The FTC has undertaken substantial 
efforts to promote data security in the private sector through 
civil law enforcement, business outreach and consumer 
education, policy initiatives, and recommendations to Congress 
to enact legislation.
    Dr. Romine testified that when implementing new 
technologies, small businesses need to fully understand all of 
the potential security risks created by connecting to the 
Internet. The risks to systems are so complex and pervasive 
that small businesses cannot reasonably be expected to be 
experts in all areas of security, including properly 
implementing security controls for complex system 
configurations and assessing security features associated with 
new and emerging technology. He also stated that the National 
Institute of Standards and Technology has worked effectively 
with industry and federal agencies to help protect the 
confidentiality, integrity, and availability of information 
systems. Mr. Rowe said that Small Business Development Centers 
(SBDCs) have been working to spread awareness of cyber threats 
to their clients by offering training programs at most SBDCs 
and working to expand the coverage to the entire network. He 
noted that pursuant to section 1841 of the National Defense 
Authorization Act for 2017, America's SBDCs is working with the 
Department of Homeland Security (DHS) and the Small Business 
Administration (SBA) to develop a strategy to leverage the 
collective resources of DHS, SBA and the national network of 
SBDCs to provide the resources, training and assistance small 
businesses will need. He added that a lot of the uncertainty 
and confusion small businesses face now is a result of the 
previous administration releasing cybersecurity regulations at 
the very end of its term before it was adequately discussed. 
Mr. Mooney stated that securing consumers' personal information 
and financial accounts will require the entire payments 
ecosystem to take an active role in addressing emerging 
threats, and in turn require all industries to be proactive in 
protecting consumers' personally identifiable and financial 
information from the onset.

   HEARING: ``MAKING WASHINGTON WORK FOR AMERICA'S SMALL BUSINESSES''

    On March 22, 2017, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Making Washington Work for America's Small 
Businesses.'' The hearing was called to allow small business 
owners to outline their priorities and provide the Committee 
with ideas about federal policies that will help them best grow 
their businesses. A priority setting hearing, it helped to 
inform future committee hearings, advocacy efforts, and 
legislative priorities for the Committee on Small Business for 
the 115th Congress.
    Witnesses on the only panel were: Ms. Maxine Turner, 
Founder, Cuisine Unlimited, Salt Lake City, UT, on behalf of 
the United States Chamber of Commerce; Ms. Anne Chambers, Co-
Founder and CEO, Red212, Cincinnati, OH, on behalf of Women 
Impacting Public Policy; Mr. Rutland ``Skip'' Paal, Owner, 
Rutland Beard Floral Group, Baltimore, MD, on behalf of the 
Society of American Florists; and Mr. David Borris, Owner, 
Hel's Kitchen, Catering, Northbrook, IL, on behalf of the Main 
Street Alliance.
    At the hearing, Chairman Chabot stated that the issues 
discussed are important because too often, small businesses get 
the short end of the stick, which is counterproductive to the 
economic health of the nation. All of the witnesses touched on 
the similar themes of unnecessary regulation, tax compliance 
burden and tax complexity, the cost of health care, and access 
to capital as the paramount issues facing small firms. Ms. 
Turner testified that the Chamber has heard from its members 
about the torrent of red tape and overregulation that is 
strangling established businesses and discouraging 
entrepreneurship. Ms. Chambers said that capital is the 
lifeline of business and the ability to secure capital is often 
the determinant of an entrepreneur's opportunity to start or 
grow a business. She also said that for women in particular, 
accessing capital continues to be difficult. She noted that 
while women-owned businesses generally ask for less funding--on 
average, $35,000 less than male-owned counterparts--they 
receive just 16 percent of all small business loans made each 
year. Mr. Paal said the Affordable Care Act (ACA) and its 
implementing regulations have hamstrung his business. While he 
offered health insurance to his employees prior to enactment of 
the ACA, he has seen his premiums raise, on average, 30 percent 
per year since the law was passed. He also said he would like 
to see Congress significantly simplify the tax code and make it 
much more predictable from year to year. Mr. Borris noted that 
the ACA stabilized health costs for his company, that sensible 
regulation provides certainty to his business, and that 
navigating the bureaucratic and legal obstacles to obtaining 
requisite permits or licenses is often difficult and 
burdensome.

 HEARING: ``EVALUATING THE PAPERWORK REDUCTION ACT: ARE BURDENS BEING 
                               REDUCED?''

    On March 29, 2017, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Evaluating the Paperwork Reduction Act: Are Burdens 
Being Reduced?'' With some limited exceptions, the Paperwork 
Reduction Act (PRA) requires all executive departments and 
independent regulatory agencies to obtain approval from the 
Office of Management and Budget (OMB) in advance of collecting 
identical information from or imposing an identical reporting 
or recordkeeping requirement on 10 or more persons. The 
Committee met to examine the PRA's effectiveness in reducing 
the paperwork burden on small businesses and issues that may 
warrant further scrutiny or legislative action.
    The witnesses for the hearing were: Mr. Sam Batkins, 
Director of Regulatory Policy, American Action Forum, 
Washington, DC; Ms. Leah F. Pilconis, Environmental Law & 
Policy Advisor, Associated General Contractors of America, 
Arlington, VA; Mr. Frank Cania, Founder and President, driven 
HR, Pittsford, NY, testifying on behalf of the Society for 
Human Resource Management; and Ms. Sally Katzen, Professor of 
Practice and Distinguished Scholar in Residence, New York 
University School of Law, and Senior Advisor, Podesta Group, 
Washington, DC.
    Mr. Batkins began the hearing by describing the overall 
burden of federal paperwork. Currently, federal paperwork 
annually takes 11.6 billion hours to fill out and submit, which 
is up from 6.9 billion hours in 1997. He further noted that 
agency paperwork burden estimates often contain mistakes, 
agencies routinely violate the PRA, and reforms such as 
monetizing the costs of paperwork and moving more reporting 
requirements online could make the PRA more effective. Ms. 
Pilconis described the construction industry's experience 
complying with federal information collection requests and 
focused on those issued by the Environmental Protection Agency 
(EPA). She discussed EPA paperwork requirements that overlap or 
duplicate others, such as the National Pollutant Discharge 
Elimination System and Spill Prevention Control and 
Countermeasure Plan regulations and its Stormwater Pollution 
Prevent Plan requirements. Ms. Pilconis also noted that 
electronic information reporting presents new challenges, 
costs, and burdens and suggested that the PRA may need to be 
updated to account for the lifecycle costs of electronic 
reporting and recordkeeping. Mr. Cania, the founder and 
president of a small human resources consulting firm, discussed 
several federal forms that his clients have difficulties 
filling out correctly, including: the Affordable Care Act Form 
1095-C, a tax form, and the United States Citizenship and 
Immigration Services Form I-9. He suggested that federal 
agencies should work with organizations like the Society of 
Human Resource Management to beta test forms and data 
collection tools before they are imposed to improve the design 
of federal paperwork and the burden estimates. Ms. Katzen 
discussed the importance of distinguishing between different 
types of paperwork since different forms or reporting 
requirements have different effects and consequences for small 
businesses.

HEARING: ``TAKING CARE OF SMALL BUSINESS: WORKING TOGETHER FOR A BETTER 
                                 SBA''

    On April 5, 2017, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Taking Care of Small Business: Working Together for a 
Better SBA.'' The hearing allowed the Committee to hear from 
the Honorable Linda McMahon, who was sworn in on February 14, 
2017 as the 25th Administrator of the United States Small 
Business Administration (SBA), about her priorities for 
entrepreneurs and small businesses.
    The sole witness for the hearing was the Honorable Linda 
McMahon, Administrator, United States Small Business 
Administration, Washington, DC.
    Administrator McMahon discussed a wide variety of topics 
including her plans for leading the SBA and improving its 
programs by utilizing metrics to measure the outcomes, not 
output, of its programs. She stressed the importance of 
ensuring that all of the SBA's services are delivered 
efficiently and effectively to its customers and making certain 
that the agency and its resource partners are providing 
services that small businesses need to grow, innovate, and 
create jobs. Administrator McMahon also stated that the 
Government Accountability Office's recommendations for the SBA 
have been helpful in evaluating the agency's employees and 
practices.

    HEARING: ``SCAM SPOTTING: CAN THE IRS EFFECTIVELY PROTECT SMALL 
                        BUSINESS INFORMATION?''

    On April 6, 2017, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Scam Spotting: Can the IRS Effectively Protect Small 
Business Information? As tax filing season heats up, so does 
fraud season at the Internal Revenue Service (IRS). Identity 
theft and fraudulent tax returns have been a growing problem 
for individuals and small businesses alike. The Treasury 
Inspector General for Tax Administration (TIGTA) is charged 
with overseeing the IRS in the conduct of its job to ensure the 
integrity of the tax collection system, including protecting 
taxpayers from identity theft, putting systems into place to 
identify fraudulent returns, and ensuring quality customer 
service. The Committee met with the current Inspector General 
to discuss the findings of their recent audits of the IRS' 
performance in addressing these issues.
    The sole witness for the hearing was the Honorable J. 
Russell George, Inspector General, Treasury Inspector General 
for Tax Administration, Washington, DC.
    At the hearing, Mr. George discussed how TIGTA has provided 
ongoing oversight and testimony on the issue of tax fraud-
related identity theft because of the adverse effect on both 
the victims of this crime and the IRS. He also stated that 
identity theft continues to remain on the IRS' list of top tax 
scams. Mr. George testified that TIGTA has reported that the 
IRS does not always effectively provide assistance to taxpayers 
who report that they have been victims of identity theft, 
resulting in an increased burden for those victims. He then 
discussed many of the efforts that TIGTA has taken to combat 
identity theft, including publishing scam-related telephone 
numbers, public outreach, and criminal prosecutions.

       HEARING: ``STORM WATCH: MAKING SURE THE SBA IS PREPARED''

    On April 26, 2017, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Storm Watch: Making Sure the SBA is Prepared.'' The 
hearing examined the U.S. Small Business Administration's 
(SBA's) Disaster Loan Program, which offers loans to 
individuals and businesses of all sizes to help recover from 
declared disasters. The Committee reviewed the program to 
ensure that it is prepared for the next major disaster.
    The witnesses for the hearing were: Mr. James Rivera, 
Associate Administrator, Office of Disaster Assistance, United 
States Small Business Administration, Washington, DC; Mr. 
Hannibal ``Mike'' Ware, Acting Inspector General, Office of 
Inspector General, Small Business Administration, Washington, 
DC; and Mr. William Shear, Director, Financial Markets and 
Community Investment, Government Accountability Office, 
Washington, DC.
    The witness panel discussed the Disaster Loan Program and 
what steps still need to be taken to better ensure that it is 
ready for the next big disaster. SBA Associate Administrator 
Rivera stressed in his testimony that SBA is ready. He stated 
that SBA has made a number of key improvements that will help 
it to better respond to disaster survivors. He emphasized that 
SBA firmly believes that the reforms instituted will enable it 
to be better prepared to efficiently and effectively respond to 
the needs of disaster survivors. Both Mr. Ware and Mr. Shear 
agreed that SBA's Disaster Loan Program had made great strides 
since the days following Hurricane Katrina. But they had 
concerns whether the program was truly prepared for the next 
big disaster. Mr. Ware testified that the need to process loans 
quickly, and in some instances in large volumes, poses many 
complications and may create opportunities for dishonest 
applicants to commit fraud and SBA personnel to make errors in 
the lending process. Having effective internal controls, robust 
technology design and resources, and training programs are keys 
to mitigating risks to the taxpayer. Mr. Shear testified that 
he was concerned whether the reserve corps will be up and ready 
when that next major disaster strikes.
    Mr. Ware agreed, saying he is concerned that SBA's reserve 
corps is not necessarily trained sufficiently enough be able to 
hit the ground running and to be able to effectively process 
loan applications to cut down on errors and also to expedite 
the process. Mr. Shear further observed that SBA had not 
effectively presented information on disaster loans in a way 
that would help users efficiently find it, had not consistently 
described key features and requirements of the loan process in 
print and online resources, or clearly defined the financial 
terminology used in loan applications. According to Mr. Shear, 
absent better integration of, and streamlined access to, 
disaster loan-related information, loan applicants may not be 
aware of key information and requirements for completing the 
applications. As Mr. Ware noted, each disaster has unique 
circumstances and poses unforeseen challenges that SBA 
personnel must adapt to and overcome to be successful. 
Therefore, it is critical that the program is operated 
effectively and efficiently.

    HEARING: ``EMPOWERING SMALL BUSINESSES: THE ACCELERATOR MODEL''

    On May 3, 2017, the Committee on Small Business met in Room 
2360 of the Rayburn House Office Building for a heating titled 
``Empowering Small Businesses: The Accelerator Model.'' The 
hearing examined how business accelerators help entrepreneurs, 
startups, and small businesses grow and create jobs. The 
hearing gave Members of the Committee the opportunity to hear 
from organizations that are directly involved in providing 
private sector resources to small businesses.
    The witnesses for the hearing were: Ms. Starr Marcello, 
Executive Director, Polsky Center for Entrepreneurship and 
Innovation's Edward L. Kaplan New Venture Challenge, University 
of Chicago, Chicago, IL; Mr. Darrin Redus, Sr., Vice President, 
Minority Business Accelerator, Cincinnati USA Regional Chamber, 
Cincinnati, OH; Ms. Carolyn Rodz, Founder/Chief Executive 
Officer, Circular Board, Houston, TX; and Dr. Stephen Tang, 
President/Chief Executive Officer, University City Science 
Center, Philadelphia, PA.
    The witness panel discussed how business accelerators scale 
companies through a fixed-term, cohort-based program that 
focuses on a mentorship model and concludes with a demo day 
presentation. Ms. Marcello outlined the University of Chicago's 
top-ranked accelerator and its impact on the Chicago region, 
including the importance of the fixed-term nature of 
accelerators. Mr. Redus discussed how some accelerators are 
benefitting regions and cities by concentrating on economic 
development. He also explained how the Cincinnati USA Regional 
Chamber's Minority Business Accelerator is helping to scale 
African American and Hispanic owned businesses. Ms. Rodz 
discussed how her business accelerator utilizes a 100 percent 
virtual model to target female entrepreneurs by reducing 
geographic barriers. Dr. Tang detailed the programs that 
operate at the Science Center including the Phase 1 Ventures 
and the Digital Health Accelerator. Aside from the ways 
accelerators are assisting small businesses, the witness panel 
touched on the benefits of the SBA's Growth Accelerator Fund 
Competition.

        HEARING: ``SBA'S 7(A) LOAN PROGRAM: A DETAILED REVIEW''

    On May 17, 2017, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``SBA's 7(a) Loan Program: A Detailed Review.'' As a way 
to review the United States Small Business Administration's 
(SBA) 7(a) Loan Program's ability to help creditworthy small 
businesses obtain capital, this hearing offered Members of the 
Committee the opportunity to hear from SBA officials directly 
involved in administering the program.
    The witnesses for the hearing were: Ms. Linda Rusche, 
Director, Office of Credit Risk Management, Office of Capital 
Access, United States Small Business Administration, 
Washington, DC; and Mr. William Manger, Associate 
Administrator, Office of Capital Access, United States Small 
Business Administration, Washington, DC.
    The government witness panel discussed the role and 
resources of the Office of Credit Risk Management (OCRM) with 
regard to overseeing SBA's 7(a) Loan Program. While Mr. Manger 
provided a high level overview of the lending program, Ms. 
Rusche shared details of how OCRM oversees lenders. 
Specifically, Ms. Rusche discussed the Loan and Lender 
Monitoring System (L/LMS), the risk measurement system which is 
known as PARRiS, and the reviews and examinations process. Ms. 
Rusche described the credit elsewhere test, along with lender 
non-compliance with the test. When asked about the complexity 
of SBA's loan programs, Mr. Manger explained how he would like 
to streamline the process, along with an idea to potentially 
overhaul SBA's standard operating procedures (SOP). As a 
response to a question about access to capital, Mr. Manger 
suggested that SBA can always improve their methods in reaching 
out to potential borrowers.

   HEARING: ``ACCOMPLISHMENTS AND CHALLENGES AT THE SBA'S OFFICE OF 
                         INTERNATIONAL TRADE''

    On May 23, 2017, the Committee on Small Business met in 
2360 Rayburn House Office Building to examine the efforts of 
the United States Small Business Administration's (SBA) Office 
of International Trade (OIT) to increase exports, coordinate 
export promotion activities with other federal agencies, and 
assist United States small businesses' engagement in the global 
marketplace.
    Increasing small business exports continues to be a top 
priority for both United States lawmakers and the federal 
government. While nearly 300,000 small businesses are currently 
exporting to foreign markets, many small businesses face 
significant challenges in getting their goods and services 
abroad. To help address these challenges, Congress redirected 
the SBA to increase its role in export activities, including 
export counseling and financing. The Committee heard directly 
from the SBA about its ongoing efforts to assist small 
businesses seeking to engage in the international trading 
system. The sole witness on the panel was Mr. Peter Cazamias, 
Associate Administrator, Office of International Trade, United 
States Small Business Administration, Washington, DC.
    Chairman Chabot stated that increasing small business 
exports has long been a top priority for the Committee. Mr. 
Cazamias said that although there are over 28 million small 
businesses in the United States, fewer than 5 percent can claim 
to be exporters. He acknowledged that there is room for 
improvement, which he stated could be addressed in three ways: 
the need for information; the need for capital; and the need 
among small businesses for overseas promotional services and 
market access. Mr. Cazamias assured the Committee that he is 
committed to ensuring that our small business exporters find 
the support they need to expand into international markets.

 HEARING: ``A CAUTIONARY TALE: A REVIEW OF SBA'S FAILED FY 2014 AGENCY 
                             RESTRUCTURE''

    On June 14, 2017, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``A Cautionary Tale: A Review of SBA's Failed FY 2014 
Agency Restructure.'' The hearing examined how the Small 
Business Administration (SBA) managed its FY 14 Voluntary Early 
Retirement Authority (VERA) and Voluntary Separation Incentive 
Payment (VSIP) program. SBA failed to effectively manage and 
implement its FY 2014 VERA-VSIP program. As a result, SBA spent 
over $2.1 million for early retirements that were not properly 
restructured.
    The witnesses for the hearing were: Mr. Hannibal ``Mike'' 
Ware, Acting Inspector General, Office of Inspector General, 
Small Business Administration, Washington, DC; and Mr. Joseph 
Loddo, Chief Operating Officer, Small Business Administration, 
Washington, DC.
    Acting Inspector General Ware testified that the Office of 
Inspector General conducted an audit in response to inquiries 
from Congress and hotline complaints. He stated that these 
complaints said the program was not rolled out correctly, and 
there was not any planning. Mr. Ware testified that his 
office's audit determined that SBA did not accomplish its 
stated goals of the VERA/VSIP program. Mr. Loddo agreed that 
SBA poorly managed the FY 2014 VERA/VSIP program. Mr. Loddo, 
however, promised the Committee that such a poor VERA/VSIP 
rollout will never happen on his watch.
    Mr. Ware assigned three causes to SBA's failed VERA/VSIP: 
(1) the lack of any planning that would have aligned with the 
Office of Personnel Management's (OPM) requirements and SBA's 
stated goals; (2) lack of tracking to determine who left and 
what positions would need to restructured; and (3) the Chief 
Human Capital Officer's poor guidance that allowed the HR 
office to simply backfill positions. Mr. Ware further stated 
that it appeared that SBA rushed to implement something they 
were not exactly ready for. Further, the Office of Human 
Resources Solutions--responsible for planning the VERA/VSIP and 
the OPM justification--did not include most of the SBA 
leadership in the planning for the VERA/VSIP. Therefore, the 
VERA/VSIP plan did not factor in their insight, expertise and 
experience. Their absence from the table also caused 
miscommunication and misinformation. Mr. Loddo testified that 
there was no transparency, no communication, and it was 
implemented in 30 days. He said that is not the way you would 
do a VERA/VSIP. Mr. Loddo also confirmed that the VERA/VSIP 
rollout caused a tremendous morale problem particularly within 
the Office of Human Resources Solutions. Exacerbating the 
morale problem, the Chief Human Capital Officer sent a letter 
to SBA employees encouraging SBA to ignore OPM guidelines and 
the SBA plan for the VERA/VSIP.
    Mr. Loddo testified that the SBA is currently restructuring 
and reorganizing the entire agency. Mr. Loddo was preparing to 
present the recommendations of this restructure and 
reorganization to Administrator Linda McMahon in an effort to 
streamline the agency.

   HEARING: ``PARTNERS IN COMMERCE: THE TRADE PROMOTION COORDINATING 
                              COMMITTEE''

    On June 21, 2017, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Partners in Commerce: The Trade Promotion Coordinating 
Committee.'' The hearing examined the Trade Promotion 
Coordinating Committee (TPCC) and its efforts to partner with 
federal, state, and local trade promotion agencies to help 
America's small businesses increase exports and thrive in the 
global marketplace.
    Exporting is a critical component for the long-term growth 
and viability of small businesses and the United States economy 
overall. In 2016, total U.S. exports reached $2.2 trillion. 
According to the U.S. International Trade Commission (ITC), 
those exports helped support nearly 11.5 million jobs. 
Exporting provides small businesses with the opportunity to 
reach new markets, increase revenue, grow their business, and 
ultimately create needed jobs. The benefits of exporting are 
clear, but many small businesses do not have the knowledge, 
resources, or capital to navigate the trade process; therefore, 
they simply do not export.
    Witnesses on the panel were: Mr. Patrick Kirwan, Director, 
Trade Promotion Coordinating Committee (TPCC), International 
Trade Administration, United States Department of Commerce, 
Washington, DC; Mr. Peter J. Cazamias, Associate Administrator, 
Office of International Trade, United States Small Business 
Administration, Washington, DC; and Ms. Ann Pardalos, Manager, 
International Trade and Investment Office, Missouri Department 
of Economic Development, Jefferson City, Missouri.
    At the hearing, the TPCC representatives discussed their 
strategy to leverage existing federal, state, and local 
resources and explained the steps they are taking to strengthen 
their partnerships and better coordinate with TPCC member 
agencies. The goal is to more effectively provide small 
businesses with the necessary tools and support to increase 
exports and create new jobs in the United States. Mr. Cazamias 
provided an overview of the priorities for Office of 
International Trade (OIT) and its role as chair of the TPCC's 
Small Business Working Group. Mr. Kirwan explained that the 
Department of Commerce's International Trade Administration is 
the primary agency responsible for strengthening the 
competitiveness of U.S. industry in the global marketplace, 
promoting U.S. exports, monitoring compliance with U.S. trade 
agreements, and enforcing U.S. trade laws. He also spoke about 
ongoing efforts to enhance coordination among federal, state, 
and local trade promotion agencies. Finally, Ms. Pardalos 
explained how State International Development Organizations 
(SIDO) helps state international trade agencies serve American 
exporters by sharing innovative ideas and resources and 
developing policies that help more small businesses export at 
the local level. She noted that SIDO works closely with its 
federal trade partners, including the Trade Promotion 
Coordinating Committee, the International Trade Administration, 
and the U.S. Small Business Administration.
    Chairman Chabot said that greater collaboration between 
state and federal trade agencies would help to ensure that 
America's small businesses have opportunities to export. He 
also encouraged the federal agencies to continue working 
together with state and local partners, and that the TPCC make 
a greater effort to share client information with one another 
to improve coordination of the services provided by the TPCC.

  HEARING: ``HELP OR HINDRANCE? A REVIEW OF SBA'S OFFICE OF THE CHIEF 
                         INFORMATION OFFICER''

    On July 12, 2017, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Help or Hindrance? A Review of SBA's Office of the 
Chief Information Officer.'' The hearing examined whether the 
Small Business Administration's (SBA) Office of the Chief 
Information Officer (OCIO) is operating efficiently and 
effectively. Over the years, the OCIO has struggled to fulfill 
its most important functions: to conduct effective oversight 
over the agency's: (1) IT investments; and (2) IT security. 
Government watchdogs have issued numerous reports outlining the 
OCIO's many failures and flaws.
    The sole witness for the hearing was Ms. Maria Roat, Chief 
Information Officer, Small Business Administration, Washington, 
DC.
    In her testimony, Ms. Roat acknowledged that the Office of 
the Chief Information Officer was struggling upon her arrival. 
She testified that it was clear that transformation was 
overdue. She stated that when she arrived, she and her team 
embarked on a fast-paced journey to change how the SBA builds, 
buys, and manages information technology to support small 
businesses and entrepreneurs. According to Ms. Roat, her first 
12 months are critical to making lasting improvements. 
Evaluating her progress, Ms. Roat testified that by January she 
made a significant amount of progress in stabilizing the 
environment. At this point, she said her team is taking steps 
to modernize, such as moving all their systems to the cloud.
    When asked about the biggest challenge she faced when she 
became the Chief Information Officer, Ms. Roat testified that 
it was stabilizing the IT environment and filling the vacancies 
with the right people. She emphasized that her office must 
continue to attract, hire, and retain the right talent and to 
develop the entire SBA IT workforce. She agreed that the high 
rate of turnover at the CIO position has negatively affected 
the office and the entire organization. To strengthen IT 
leadership, Ms. Roat has installed a leadership team to avoid 
gaps. For example, she has hired a Deputy Chief Information 
Officer and a Chief Technology Officer--two positions that have 
often been vacant. She said she has also been building a team 
that is dedicated to the mission, and not just there to deploy 
desktops or laptops.
    Ms. Roat also noted that her office is working to continue 
to improve IT security. As she stated, building security in by 
design is important because you cannot have a hard outer shell 
and a ``soft squish'' inside. In case there is a breach, her 
office has updated SBA's incident response procedures. 
Additionally, Ms. Roat is making sure SBA understands its 
network environment. Understanding how the network operates 
normally will put SBA in a better position to detect a security 
breach.
    In sum, Ms. Roat testified that to overcome the inherent 
inertia of the status quo, we are making a radical and 
difficult, but deeply considered and well-planned turn, moving 
to an environment where the CIO is a partner to and enabler of 
the business of SBA. The Office of the Chief Information 
Officer must transition from being just an office that does 
computers to a service organization.

          HEARING: ``REVERSING THE ENTREPRENEURSHIP DECLINE''

    On July 19, 2017, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Reversing the Entrepreneurship Decline.'' The hearing 
provided the Committee an opportunity to understand the 
entrepreneurship trends, challenges, and opportunities that 
exist in the United States. This hearing also examined how 
entrepreneurship influences leading economic indicators and 
potential solutions to promote new and existing small 
businesses.
    Witnesses on the panel were: Gregory Crawford, Ph.D., 
President, Miami University, Oxford, Ohio; Ms. Karen Kerrigan, 
President & CEO, Small Business & Entrepreneurship Council, 
Vienna, VA; and Mr. Joe Schocken, CEO, Broadmark Capital, 
Seattle, WA.
    The panel discussed current barriers to entrepreneurship 
and solutions that would promote increased business formation. 
Dr. Crawford mentioned that Miami's curriculum fosters an 
entrepreneurial mindset across the entire university. 
Entrepreneurship opportunities include internships, corporate 
partnerships, and case competitions that can lead to job 
placements and even new business ideas. Ms. Kerrigan's 
testimony addressed the current state of entrepreneurship, 
including barriers and potential solutions to address the 
entrepreneurial deficit. She supported a variety of reforms in 
her testimony including lower and simpler taxes, health care 
reform, regulatory reform, improved access to capital, and 
improved broadband infrastructure for small business and 
entrepreneurs. Mr. Schocken emphasized the importance of the 
innovation economy on economic growth and job creation and 
labeled what he believes are the most significant obstacles for 
new business creation.

    HEARING: ``PROTECTING SMALL BUSINESSES FROM CYBER ATTACKS: THE 
                    CYBERSECURITY INSURANCE OPTION''

    On July 26, 2017, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Protecting Small Businesses from Cyber Attacks: the 
Cybersecurity Insurance Option.'' The hearing examined how 
cybersecurity insurance solutions can help small businesses 
recover from a cyber attack as well as the challenges small 
businesses face in selecting a cybersecurity insurance policy, 
and the hurdles insurers must overcome to offer viable and 
comprehensive cybersecurity insurance solutions.
    Small businesses rely on information technology more than 
ever, yet the very tools that make small businesses competitive 
have put them in the crosshairs of cyber attackers. 
Unfortunately, it has become increasingly evident that no 
matter how well-protected a small business' information 
technology system may be, it is practically impossible to be 
hack-proof. As a result, many corporate executives are giving 
consideration to cyber insurance policies as part of the 
solution. The global cyber insurance market is expected to 
reach $14 billion by 2022, with a compound annual growth rate 
of nearly 28 percent from 2016 to 2022.
    Witnesses on the panel were: Mr. Robert Luft, President, 
SureFire Innovations, Cincinnati, Ohio; Ms. Erica Davis, Senior 
Vice President, Head of Specialty Products Errors & Omissions, 
Zurich Insurance, North America, Washington, DC; Mr. Eric 
Cernak, Vice President, Cyber Risk Practice Leader, Munich Re 
U.S., Hartford, CT; and Mr. Daimon Geopfert, National Leader 
and Principal, Security and Privacy Consulting, Risk Advisory 
Services, Southfield, MI.
    At the hearing, the panel discussed how cybersecurity 
insurance can mitigate losses from cyber incidents, including 
data breaches, business interruption, and network damage that 
might otherwise destroy a small business. The witnesses also 
noted that insurance underwriters face difficulties in 
calculating cyber risk due to a lack of data and the factors 
that impact the scope and cost of a cyber liability policy, 
including the size and type of business, the number of 
customers, the type of data and information the business 
stores, and the business' online exposure. Finally, the panel 
cautioned that the cyber insurance marketplace is relatively 
new and faces significant challenges to becoming a singular and 
comprehensive solution to cyber attacks against small 
businesses.
    Mr. Luft provided a small business owner's experience with 
acquiring a cybersecurity insurance policy. He stated that it 
is critically important that a small business owner, when 
selecting an agent for their cybersecurity policies, stay 
within the sphere of knowledgeable cybersecurity agents, as 
they will be able to better assist with identifying the 
appropriate policy for the level of coverage required per the 
business. Ms. Davis explained that businesses face difficult 
decisions about cybersecurity and how best to manage their 
risks: deciding whether they should retain the residual risk or 
transfer it through the purchase of a cyber insurance product. 
She also noted that the role of insurance is continuously 
increasing as customers are now seeking industry feedback and 
risk insights. Mr. Cernak explained that a reinsurer, a company 
that provides insurance for insurers, for primary insurers 
provides reinsurance to share in the risk of loss, helps 
primary insurers underwrite cyber risk and develop products, 
and provides other services to primary insurers that are 
writing cyber insurance specifically for small businesses. 
Finally, Mr. Goepfert said that the current state of security 
governance within small organizations limits the benefits of 
cybersecurity insurance as risk mitigation.

    HEARING: ``EXPEDITING ECONOMIC GROWTH: HOW STREAMLINING FEDERAL 
           PERMITTING CAN CUT RED TAPE FOR SMALL BUSINESSES''

    On September 6, 2017, the Committee on Small Business met 
in Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Expediting Economic Growth: How Streamlining Federal 
Permitting Can Cut Red Tape for Small Businesses.'' The hearing 
examined how federal permitting requirements burden small 
businesses.
    The witnesses for the hearing were: Mr. Philip Howard, 
Chair, Common Good, New York, NY; Mr. Louis Griesemer, 
President, Springfield Underground, Inc., Springfield, MO; Mr. 
Mark Hayden, General Manager, Missoula Electric Cooperative, 
Missoula, MT; and Ms. Margot Dorfman, CEO, U.S. Women's Chamber 
of Commerce, Washington, DC.
    The witnesses provided testimony detailing how small 
businesses across industries must overcome a number of hurdles, 
including wading through regulatory overlap, enduring lengthy 
delays, and bearing increased costs, as they try to obtain all 
of the appropriate federal permits before launching projects. 
For example, Mr. Howard testified that the regulatory overlap 
causes confusion and extra costs for small businesses. He 
explained that obtaining a permit to start a business, or to 
build anything, requires going to multiple agencies, often at 
federal, state, and local levels. These agencies rarely 
coordinate their requirements. Often their demands are 
duplicative, and sometimes conflict with one another. They do 
not honor the practical implications of the regulations--the 
costs, time constraints, and diversion of energy. The witnesses 
testified about how the federal permitting process forces small 
businesses to endure lengthy delays waiting for permitting 
decisions. Mr. Hayden, the General Manager for an electric 
cooperative in Montana, said that he fully recognized the fires 
burning in Montana today were all lightning sparked, but also 
realize the increased risk that long delays in federal approval 
permit applications, inadequate fuels reduction programs, and 
other factors bring to his co-op and infrastructure.
    Mr. Griesemer, a small business owner in Springfield, 
Missouri, explained that the current federal permitting process 
places the burden of proof on small businesses to show that 
they do not fall within a certain agency's or law's 
jurisdiction. He testified that a ``regulated until proven 
otherwise'' approach is costly and difficult for any small 
business, particularly a small company without the resources 
for dedicated compliance staff that larger corporations employ. 
He said this is not an efficient use of resources for either 
the company or the agencies, and is one that punishes 
businesses that are trying to comply and care about the 
environment.
    Mr. Howard testified that the current regulatory structure 
is flawed, and that ultimately no one seems to be in charge. He 
said there is no one with the responsibility to ask, ``What's 
the right thing to do here?'' He also noted that no one in 
government has the job of balancing the demands of different 
agencies. Instead, he described American regulation as a dense 
jungle. For small business owners, the status quo is not an 
option. As Mr. Hayden said, we need streamlined, expedited 
procedures that allow for timely implementation of projects to 
protect the long-term health of our forests, our small 
businesses, and the overall economies of the communities 
served.

  HEARING: ``SERVING SMALL BUSINESSES: EXAMINING THE EFFECTIVENESS OF 
                           HUBZONE REFORMS''

    On September 13, 2017, the Committee on Small Business met 
in Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Serving Small Businesses: Examining the Effectiveness 
of HUBZone Reforms.'' The hearing examined legislation updating 
the Small Business Administration's (SBA) Historically 
Underutilized Business Zones (HUBZone) Program, which seeks to 
provide federal contracting opportunities to small businesses 
in economically distressed areas of the country. H.R. 3294 is a 
bipartisan, comprehensive HUBZone reform bill designed to 
address concerns brought by small businesses as well as the 
Government Accountability Office (GAO).
    The HUBZone Program, authorized in 1997, was intended to 
stimulate economic development by increasing employment and 
capital investment through the use of federal contracting 
preferences to small businesses operating in economically 
distressed areas. The Government Accountability Office 
underwent a series of reports examining the Program and 
identified several weaknesses. The Committee on Small Business 
met with HUBZone small business owners, industry groups, and 
the Small Business Administration to identify challenges facing 
HUBZone small business owners and potential legislative 
remedies. H.R. 3294 is the first legislative step towards 
resolving some of the challenges and weaknesses identified by 
small businesses and the GAO.
    Witnesses on the panel were: Ms. Shirley Bailey, Co-Owner 
and Executive Vice President and Chief Operating Officer, GCC 
Technologies, LLC, Oakland, MD, testifying as Board Chair of 
the HUBZone Contractor's National Council; Mr. Robert A. 
Schuerger, II, Principal & Attorney at Law, Law Offices of 
Robert A. Schuerger Co., LPA, Columbus, OH, Mr. Dennis DuFour, 
President, The Data Entry Company, Oakland, MD, and Mr. Carlos 
Melendez, Chief Operating Office & Co-Founder, Wovenware, San 
Juan, PR.
    At the hearing, Ms. Bailey discussed the importance of the 
provision in H.R. 3294 that modified the HUBZone designated 
area formulation to a 5-year time model, stating that this 
change will benefit all HUBZone small businesses regardless of 
if located in an urban or rural area. Mr. Schuerger emphasized 
that the provision expanding rural small businesses would be 
particularly helpful for small businesses located in such 
communities, such as his own. Mr. DuFour testified that the 
provision in H.R. 3294 freezing the HUBZone designations until 
the year 2020 will be particularly beneficial to save jobs and 
businesses that are facing loss of the HUBZone status in the 
next few years. Mr. Melendez highlighted the provision in H.R. 
3294 that mandates the SBA collect performance metrics that 
effectively measure the impact of the Program on underserved 
communities, noting that these metrics will help Congress and 
the Small Business Administration take action in the future to 
make further improvements to the Program.

  HEARING: ``SMALL BUSINESS TAX REFORM: MODERNIZING THE CODE FOR THE 
                        NATION'S JOB CREATORS''

    On October 4, 2017, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Small Business Tax Reform: Modernizing the Code for 
the Nation's Job Creators.'' The purpose of the hearing was to 
examine how the United States tax code affects small businesses 
and how changes proposed in H.R. 3717, the Small Business 
Owners' Tax Simplification Act of 2017, could impact the 
nation's job creators. H.R. 3717 is a bipartisan small business 
tax bill introduced by Chairman Steve Chabot (R-OH) and Ranking 
Member Nydia Velazquez (D-NY) as a result of numerous hearings 
and research.
    The witnesses for the hearing were: Ms. Kristie Arslan, 
Entrepreneur-In-Residence, Small Business & Entrepreneurship 
Council, Vienna, VA; Ms. Taylor Wyatt, President, MotionMobs, 
Birmingham, AL; Mr. Miguel Centeno, Partner, Shared Economy 
CPA, Redondo Beach, CA; and Ms. Caroline Bruckner, Managing 
Director, Kogod Tax Policy Center, American University, 
Washington, DC.
    Each witness discussed how the tax code was not built for 
small businesses. Rather than promoting job creation and growth 
for small businesses, the panelists said the tax code is overly 
complicated and causes uncertainty. Moreover, the panelists 
collectively described how the tax code has not kept pace with 
America's technology-focused small businesses, entrepreneurs, 
and startups. In a comprehensive manner, Ms. Arslan discussed 
how tax cuts could benefit both small businesses and 
corporations. As an entrepreneur who was about to launch a new 
sharing economy startup, Ms. Wyatt described the importance of 
worker classification decisions within the tax code. Mr. 
Centeno focused his comments on the growth and momentum of 
sharing economy companies. Ms. Bruckner spoke extensively on 
the topic of quarterly-estimated payment deadlines and 1099 
filing thresholds. Each panelist stated that H.R. 3717 would 
provide equity to small businesses, entrepreneurs, and startups 
as they deal with the tax code.

HEARING: ``EVALUATING THE PAPERWORK REDUCTION ACT PART II: ARE BURDENS 
                            BEING REDUCED?''

    On October 11, 2017, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Evaluating the Paperwork Reduction Act Part II: Are 
Burdens Being Reduced?'' The Committee held a hearing on March 
29, 2017 on the Paperwork Reduction Act's (PRA) effectiveness 
and small business issues with the PRA. This hearing continued 
to examine the PRA and how agencies are reducing paperwork 
burdens on small businesses.
    The witnesses for the hearing were: Dr. Steven Fine, Acting 
Assistant Administrator and Acting Chief Information Officer, 
U.S. Environmental Protection Agency, Washington, DC; Mr. 
Stephen Guertin, Deputy Director for Policy, U.S. Fish and 
Wildlife Service, Washington, DC; Mr. Gundeep Ahluwalia, Chief 
Information Officer, U.S. Department of Labor, Washington, DC; 
and Mr. Todd Simpson, Chief Information Officer, U.S. Food and 
Drug Administration, Silver Spring, MD.
    The witnesses provided testimony detailing how their 
agencies comply with the PRA and their efforts to reduce the 
burden of paperwork requirements on small businesses. For 
example, Dr. Fine discussed the ways the Environmental 
Protection Agency (EPA) is reducing reporting and recordkeeping 
burdens. For example, the agency obtains information from other 
sources instead of the public. Additionally, EPA is increasing 
using information technologies to reduce burdens by 
streamlining the information collection process. Mr. Guertin 
testified that the Fish and Wildlife Service (FWS) is 
considering ways to collect information from its constituents 
in the least burdensome way. He stated that even with the PRA, 
information collection can be a burden on the public, so they 
strive to limit the information and paperwork requirements they 
place on the public. One way they accomplish this is by making 
a number of resources available electronically.
    Mr. Ahluwalia testified that the Department of Labor (DOL) 
has managed to control its overall paperwork burden on the 
public. He stated that DOL's paperwork burden has remained 
virtually flat over the last 12 years. Mr. Simpson provided 
examples of how the Food and Drug Administration (FDA) assists 
small businesses with paperwork requirements. He said FDA 
employs seminars, workshops, educational conferences, 
information materials, and contact via email and a toll-free 
telephone number. FDA also offers access to regional and small 
business advisors and administrative and scientific support.
    When asked why small businesses have not seen a relief in 
paperwork burdens, the witnesses acknowledged that more can be 
done. Mr. Guertin said the Fish and Wildlife Service stands by 
the work that it is doing, and plans to harness emerging 
technologies to reach more effective partnerships within the 
federal government put much of the information needs onto 
automated systems to minimize the burden.

  HEARING: ``SMALL BUSINESS CAPITAL ACCESS: SUPPORTING COMMUNITY AND 
                         ECONOMIC DEVELOPMENT''

    On October 20, 2017, the Committee on Small Business met in 
Studio Cat the Enterprise Building in Philadelphia, PA for a 
field hearing titled ``Small Business Capital Access: 
Supporting Community and Economic Development.'' Access to 
capital is key for entrepreneurs seeking to start new ventures 
and expand existing ones. The hearing examined the role of 
affordable capital for small businesses and their local 
communities. The hearing also explored capital access programs 
working to promote affordable lending products for small 
businesses, especially those in distressed areas.
    The witnesses for the hearing were: Ms. Dafina Williams, 
Vice President of Public Policy, Opportunity Finance Network, 
Philadelphia, PA; Ms. Leslie Benoliel, President, Entrepreneur 
Works, Philadelphia, PA; Mr. Lin Thomas, Chief Executive 
Officer, EMSCO Scientific Enterprises, Philadelphia, PA; and 
Mr. Steve Dorcelien, Owner, Bright Yellow Creamery, 
Philadelphia, PA.
    Acting Chairman Fitzpatrick began the hearing by stating 
that access to capital is one of the most important 
responsibilities of small business owners, but that it can also 
be one of the most difficult challenges. Ms. Williams testified 
about the role that community development financial 
institutions, or CDFIs, play in helping small business access 
affordable financing. Ms. Benoliel testified about three main 
challenges that stymie small business owners' access to 
capital: low starting wealth, limited access to capital, and a 
``trust gap.'' Mr. Thomas testified that small businesses must 
have access to increased, innovative, and relaxed mainline bank 
underwriting in order to grow and develop. Mr. Dorcelien shared 
his experiences as a rising entrepreneur and how community 
institutions helped him to launch a successful small business.

  HEARING: ``HIRING MORE HEROES: A REVIEW OF SBA'S OFFICE OF VETERANS 
                         BUSINESS DEVELOPMENT''

    On November 8, 2017, the Committee on Small Business met in 
2360 of the Rayburn House Office Building for a hearing titled 
``Hiring More Heroes: A Review of SBA's Office of Veterans 
Business Development.'' The Committee examined the United 
States Small Business Administration's (SBA) Office of Veterans 
Business Development's (OVBD) efforts to transition our 
nation's veterans from the battlefield to the small business 
realm. As the majority of veteran-owned businesses are small 
businesses, it is crucial that veterans have the tools and 
resources they need to get off the ground once they return 
home.
    Our nation's veterans make up a significant percentage of 
the American workforce. However, the employment rate for 
veterans historically has lagged behind the rate of their 
nonveteran peers. Additionally, the Department of Labor's 
Bureau of Labor Statistics also estimates that veterans have a 
lower labor force participation rate than nonveterans aged 18 
and older, at 50.6 percent and 65.7 percent, respectively. This 
means that, overall, more nonveterans above the age of 18 are 
available for work or are seeking employment more actively than 
veterans. In order to reverse the trend of the declining labor 
force participation rate among the veteran population, the 
hearing examined whether the existing resources available to 
veterans, specifically at the federal level, are working to 
achieve their intended goals.
    The witness on the panel was Ms. Barbara Carson, Associate 
Administrator, Office of Veterans Business Development, United 
States Small Business Administration, Washington, DC.
    Chairman Chabot began the hearing by stating that many 
veterans choose to start a small business after serving our 
country because they often learn skills such as leadership and 
discipline during their time in the military. He also stated 
that although the SBA does help veterans transition into the 
workforce, there is always more that can be done for our 
nation's heroes. Ms. Carson testified that the SBA promotes and 
supports veteran small business ownership by administering 
programs, formulating policy, and administering grants to 
assist veterans, active duty, National Guard and Reserve 
service members, and military spouses. She also outlined many 
programs offered by the OVBD, such as Veterans Business 
Outreach Centers (VBOCs), government contracting assistance, 
and loan programs, such as the Military Reservist Economic 
Injury Disaster Loan program. Ms. Carson also acknowledged some 
of the challenges facing the Office, such as improving outreach 
and the upcoming deadline to rece1iify VBOCs. Ms. Carson 
testified that she was willing to work alongside Congress to 
ensure that America's military men and women have the tools and 
resources they need to start and grow a business.

 HEARING: ``FEDERAL GOVERNMENT AND SMALL BUSINESSES: PROMOTING GREATER 
            INFORMATION SHARING FOR STRONGER CYBERSECURITY''

    On November 15,2017, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Federal Government and Small Businesses: Promoting 
Greater Information Sharing for Stronger Cybersecurity.'' Small 
businesses are prime targets for cyber attackers and the threat 
continues to grow. Unfortunately, small business owners face an 
uphill battle in protecting themselves from bad actors because 
they often lack the resources required to employ the best 
defenses. As the federal government and private sector continue 
to take steps to strengthen small business cybersecurity, the 
lack of information sharing between federal and private 
partners poses a major hurdle to effectively combatting cyber 
attacks. The hearing examined how federal agencies can 
encourage greater information sharing with small businesses and 
provide timely assistance and resources when a cyber attack 
occurs. Additionally, the hearing examined the policies that 
discourage small businesses from engaging with federal agencies 
for cybersecurity assistance.
    The witnesses for the hearing were: Mr. Rob Arnold, Founder 
and Chief Executive Officer, Threat Sketch, LLC, Winston-Salem, 
NC; Ms. Ola Sage, Chief Executive Officer, e-Management, Silver 
Spring, MD; Mr. Morgan Reed, President, The App Association, 
Washington, DC; and Mr. Thomas Gann, Chief Public Policy 
Officer, McAfee, LLC, Reston, VA.
    The private sector witness panel discussed the importance 
of information sharing between small businesses and the federal 
government while also acknowledging that information sharing 
policies could be improved. Mr. Arnold addressed some of the 
needs and challenges surrounding cyber information sharing, 
including fragmentation, overuse of classification, and 
improving the collection and dissemination of information. Ms. 
Sage testified that small businesses' reluctance to share 
cybersecurity information could be reduced through incentives 
like expanding Cybersecurity Information Sharing Act (CISA) 
protections for small businesses and providing tax incentives. 
Mr. Reed said the federal government could better protect small 
businesses in three ways: improving information sharing 
activities; making cybersecurity frameworks and best practices 
more workable for small businesses; and ensuring a legal and 
policy environment that enhances small businesses' abilities to 
manage cyber risks. Mr. Gann discussed a few of the federal 
information sharing programs currently available to small 
businesses through agencies such as the Department of Homeland 
Security (DHS). He also made recommendations to improve 
cybersecurity for small businesses, such as moving to the Cloud 
and encouraging cyber insurance for small businesses.

   HEARING: ``HIGHWAY TO HEADACHE: FEDERAL REGULATIONS ON THE SMALL 
                          TRUCKING INDUSTRY''

    On November 29, 2017, the Committee on Small Business met 
in Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Highway to Headache: Federal Regulations on the Small 
Trucking Industry.'' The hearing examined how federal 
regulations affect the small bucking industry.
    The witnesses for the hearing were: Mr. Monte Wiederhold, 
President, B.L. Reever Transport, Inc., Maumee, OH, testifying 
on behalf of the Owner-Operator Independent Drivers 
Association; Mr. Marty DiGiacomo, Owner, True Blue 
Transportation, Harrisburg, NC; testifying on behalf of the 
National Association of Small Trucking Companies; Mr. Stephen 
Pelkey, Chief Executive Officer, Atlas Pyro Vision 
Entertainment Group, Inc., Jaffery, NH, testifying on behalf of 
the American Pyrotechnics Association; and Mr. Robert Garbini, 
President, National Ready Mixed Concrete Association, Silver 
Spring, MD.
    The witnesses provided testimony detailing how small 
businesses, including small trucking companies, the 
pyrotechnics industry, and the ready-mixed concrete industry, 
are affected by federal regulations. All four witnesses 
addressed some of the major regulations that impact their 
business or industry, including the Federal Motor Carrier 
Safety Administration's Electronic Logging Device (ELD) 
mandate, hours of service regulations, and other issues. Mr. 
DiGiacomo testified that ELDs do not help to address safety and 
should be optional, rather than mandated.
    The witnesses also addressed other issues, such as adequate 
and safe parking and rest areas for truck drivers. For example, 
Mr. DiGiacomo, testified that ELDs can prevent drivers from 
stopping at a location that does not have adequate facilities 
for basic physical needs or the location where they do stop may 
not have any parking spots. Mr. Wiederhold added that lack of 
adequate parking is one of the most serious issues in trucking.
    Mr. Pelkey, a small business owner in the fireworks 
industry, emphasized the importance of agencies recognizing how 
regulations impact small businesses, especially ones that rely 
on the trucking industry for part of their business. He stated 
that if small businesses are to survive, regulatory agencies 
need to do a better job in recognizing the differences between 
small and big businesses. What works for large, long haul 
drivers may be different from what works for small independent 
drivers.
    All four witnesses also emphasized that a one-size-fits-all 
approach to federal regulations does not work for small 
businesses. For example, Mr. Wiederhold testified that the one-
size-fits-all approach has left the federal government 
complicit in driving the safest truckers on the road out of the 
industry through overregulation. Similarly, Mr. Garbini stated 
that regulations should not be one-size-fits-all, because it is 
rarely the case. In fact, the small trucking industry and the 
industries it supports are examples of the adverse effects of 
regulation on small businesses.

           HEARING: ``STRENGTHENING SBA'S 7(A) LOAN PROGRAM''

    On January 17, 2018, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Strengthening SEA's 7(a) Loan Program.'' The purpose 
of the hearing was to examine the United States Small Business 
Administration's (SBA) 7(a) Loan Program and how changes 
proposed in H.R. 4743, the ``Small Business 7(a) Lending 
Oversight Reform Act of 2018,'' could strengthen oversight and 
bolster the integrity of the program for small businesses and 
American taxpayers. H.R. 4743 was introduced as a bipartisan 
and bicameral SBA lending reform bill by Chairman Steve Chabot 
(R-OH) and Ranking Member Nydia Velazquez (D-NY) as a result of 
numerous hearings.
    The witnesses for the hearing were: Ms. Cindy Blankenship, 
Vice Chairman, Bank of the West, Grapevine, TX, testifying on 
behalf of the Independent Community Bankers of America; Ms. 
Patricia Husic, President and Chief Executive Officer, Centric 
Financial Corporation, Harrisburg, PA, testifying on behalf of 
the American Bankers Association; Ms. Sonya McDonald, Executive 
Vice President and Chief Lending Officer, Randolph-Brooks 
Federal Credit Union, Universal City, TX, testifying on behalf 
of the National Association of Federally-Insured Credit Unions 
(NAFCU); and Mr. Tony Wilkinson, President and Chief Executive 
Officer, National Association of Government Guaranteed Lenders, 
Washington, DC.
    The private sector witness panel that represented financial 
institutions that utilize SBA's capital access programs 
testified in support of the changes proposed in H.R. 4743. 
While all four witnesses discussed the importance of codifying 
SBA's Office of Credit Risk Management and SBA's Lender 
Oversight Committee, Ms. Blankenship also discussed the 
importance of stable funding for small businesses that require 
SBA's services. When asked about the provision in the bill that 
requires SBA to conduct a portfolio risk analysis, Ms. Husic 
commented that the provision is a good risk management 
practice. In addition to providing examples of how her credit 
union services 7(a) loans, Ms. McDonald shared with the 
Committee an overview of the Memorandum of Understanding that 
SBA renewed with NAFCU this past fall, to increase credit 
union's utilization of SBA loan products. When asked about the 
credit elsewhere test, Mr. Wilkinson explained how the current 
credit elsewhere definition is outdated and confusing due to 
the usage of geographic limiting language. With regard to the 
changes to the credit elsewhere test in H.R. 4743, Mr. 
Wilkinson explained that those provisions will provide much 
needed clarity for lenders.

HEARING: ``SMALL BUSINESS INFORMATION SHARING: COMBATING FOREIGN CYBER 
                               THREATS''

    On January 30, 2018, the Committee on Small Business met in 
Room 2361 of the Rayburn House Office Building for a hearing 
titled ``Small Business Information Sharing: Combating Foreign 
Cyber Threats.'' The hearing examined H.R. 4668, the Small 
Business Advanced Cybersecurity Enhancements Act of 2017, and 
discussed how federal agencies are facilitating greater 
information sharing with small businesses that are vulnerable 
to foreign-backed cyber attacks.
    As small businesses increasingly rely on foreign technology 
products and services, they become even more susceptible to 
cyber attacks. Many small business owners are underequipped to 
protect themselves from basic cyber attacks and face 
significant hurdles in guarding against sophisticated foreign 
state-backed cyber actors. As the Committee has learned in past 
hearings, some foreign-backed firms have taken steps to expose 
small businesses' information technology systems as a means of 
infiltrating America's critical infrastructure. and weakening 
our national security. A key component in combating these 
cybersecurity vulnerabilities is strengthening the federal 
government's engagement with the private sector.
    Witnesses on the panel were: Mr. Howard Marshall, Deputy 
Assistant Director, Cyber Division, Federal Bureau of 
Investigations, Washington, DC; and Mr. Richard Driggers, 
Deputy Assistant Secretary, Office of Cybersecurity and 
Communications, United States Department of Homeland Security, 
Washington, DC.
    Chairman Chabot began the hearing by mentioning Hikvision, 
a Chinese security camera company that manufactured security 
cameras with a major vulnerability allowing them to be hacked 
and remotely controlled. Many of these cameras are owned by 
small businesses. The panel then discussed the importance of 
increasing cybersecurity awareness for small businesses as they 
can easily fall victim to foreign cyber attacks. Mr. Marshall 
testified that both the number and sophistication of cyber 
threats is on the rise. He listed a number of prevalent cyber 
threats that are specific to small businesses, including 
business email compromise, ransomware, and the Internet of 
Things. He also discussed the FBI's private sector engagement, 
including public outreach, distributing reports and information 
regarding specific threats, and a number of public-private 
partnerships. He testified that the FBI Cyber Division 
regularly coordinates initiatives for engagement with private 
sector partners with the goal of ultimately closing 
intelligence gaps.
    Mr. Driggers echoed many of Mr. Marshall's comments, saying 
that cyber threats remain one of the most significant risks for 
small businesses. He discussed DHS' resources for assisting 
small businesses, including the National Cybersecurity and 
Communications Integration Center, or NCCIC. He also testified 
that DHS has been working alongside SBA to develop a strategy 
to effectively respond to small businesses' cybersecurity 
needs, as directed by the National Defense Authorization Act 
for Fiscal Year 2017. Both witnesses also endorsed H.R. 4668, 
testifying that it would provide small businesses with greater 
access to cybersecurity information and ultimately encourage 
further information sharing between the public and private 
sectors.

 HEARING: ``JOB CREATION, COMPETITION, AND SMALL BUSINESS' ROLE IN THE 
                        UNITED STATES ECONOMY''

    On February 14, 2018, the Committee on Small Business met 
for a hearing titled, ``Job Creation, Competition, and Small 
Business' Role in the United States Economy.'' The hearing 
provided Committee Members with the opportunity to discuss new 
research conducted by Goldman Sachs regarding the effect of 
access to capital on small firms' growth and expansion. The 
hearing also explored economic trends that show small firms' 
access to capital, particularly in large urban and remote rural 
areas, has been slower to recover. Additionally, the hearing 
featured small business owners who have graduated from Goldman 
Sachs 10,000 Small Businesses program, offering insight as to 
what private sector resources can be available to small firms 
seeking assistance to grow.
    Witnesses on the only panel were: Mr. Steven H. Strongin, 
Head, Global Investment Research Division, Goldman Sachs, New 
York, NY; Mr. J.R. Foster, President and CEO, Robert Louis 
Group, Cincinnati, OH; and, Ms. Jessica Johnson-Cope, 
President, Johnson Security Bureau, Inc., Bronx, NY.
    Chairman Chabot stated small firms continue to experience a 
rigid lending environment. He added that while large companies 
can turn to debt and equity markets to raise capital, small 
businesses all over the country regularly turn to conventional 
bank lending to finance their projects. Additionally, it was 
pointed out that recent research from Goldman Sachs has shown 
that while some areas of the nation have experienced a more 
open credit market, the same cannot be said for largely urban 
and predominantly rural areas. Mr. Strongin testified that even 
as the American economy is more than 100 months into the 
current recovery--now the third longest on record--the ``small 
business economy'' has continued to face some serious 
challenges. He added that this hearing coincided with a summit 
hosted by the Goldman Sachs entitled: ``10,000 Small 
Businesses: The Big Power of Small Business.'' The aim of this 
initiative is to renew the focus on the vital relationship 
between entrepreneurship and economic growth, including the 
link between small business formation and innovation, as well 
as economic and social mobility for American workers. Mr. 
Foster said he found himself lost in the sea of managing 
employees, customers, contractors, payroll, marketing, and the 
like and needed something more than his corporate career had 
taught him and the Goldman Sachs 10,000 Small Businesses 
program has helped him increase his revenue by 100% each year. 
Ms. Johnson-Cope testified that she faced many challenges as 
she grew her businesses and that the current business 
environment, especially with limited access to working capital, 
makes it increasingly difficult for small businesses to 
survive.

       HEARING: ``WORKFORCE DEVELOPMENT: CLOSING THE SKILLS GAP''

    On February 26, 2018, the Committee on Small Business met 
in Boilermakers Local Lodge No. 13 in Newportville, PA, for a 
field hearing titled ``Workforce Development: Closing the 
Skills Gap.'' The Committee examined ways in which federal 
programs help or hinder workforce development initiatives aimed 
at supporting small businesses. The hearing explored methods in 
which programs can help to close the skills gap while also 
connecting a new generation of workers with rewarding jobs in 
industries that lack qualified applicants.
    The witnesses for the hearing were: Mr. Patrick Eiding, 
President, Philadelphia Council AFL-CIO, Philadelphia, PA; Ms. 
Susan Herring, Interim Executive Director, Center for Workforce 
Development, Bucks County Community College, Newtown, PA; and 
Mr. Alex Halper, Director of Government Affairs, Pennsylvania 
Chamber of Business and Industry, Harrisburg, PA.
    Acting Chairman Fitzpatrick opened the hearing by 
explaining the skills gap and how this lack of qualified 
applicants is negatively impacting small businesses throughout 
Pennsylvania and across the United States. Mr. Eiding's 
testimony detailed the challenges the manufacturing industry is 
experiencing as a result of the skills gap. He explained that 
reforms to the education system and emphasized that career and 
technical education (CTE) are key to addressing those 
challenges. Ms. Herring discussed the CTE opportunities 
available at Bucks County Community College and the importance 
of encouraging participation in apprenticeships to provide 
candidates with necessary skills. Mr. Halper discussed the 
responsibility that businesses must play in providing workforce 
development training to ensure a robust labor force. Acting 
Chairman Fitzpatrick, with the concurrence of the witnesses, 
highlighted the role that addiction has played in limiting 
workforce participation, particularly in the manufacturing 
industry and in numerous apprenticeship programs.

 HEARING: ``HOW RED TAPE AFFECTS COMMUNITY BANKS AND CREDIT UNIONS: A 
                              GAO REPORT''

    On Tuesday, February 27, 2018 at 2:00p.m., the Committee on 
Small Business met in Room 2360 of the Rayburn House Office 
Building for a hearing titled ``How Red Tape Affects Community 
Banks and Credit Unions: A GAO Report.'' The purpose of the 
hearing was to examine a report by the United States Government 
Accountability Office (GAO) assessing how regulations impact 
community banks and credit unions (GA0-18-213). The hearing 
provided Members of the Committee with the opportunity to 
explore the regulations that are impacting the institutions 
that are instrumental in delivering capital to the nation's 
small businesses.
    The witness for the hearing was: Mr. Michael Clements, 
Director, Financial Markets and Community Investment, United 
States Government Accountability Office, Washington, DC.
    In the fall of 2015, House Small Business Committee 
Chairman Steve Chabot requested a GAO study on the impact 
financial regulations have on community banks and credit 
unions. With the study recently completed, Mr. Clements 
testified in front of the Committee that GAO identified the 
Home Mortgage Disclosure Act, the implementing regulations of 
the combined Truth-in-Lending Act and the Real Estate 
Settlement Procedures Act, and the Bank Secrecy Act as the most 
burdensome regulations affecting small financial institutions. 
Additionally, Mr. Clements discussed with the Committee that 
GAO made a number of recommendations to financial regulators on 
steps they should take to reduce red tape and compliance 
burdens. With small businesses traditionally utilizing 
conventional bank borrowing to finance their development, 
financial regulations that are deemed burdensome, can severely 
impact access to capital.

    HEARING: ``REGULATORY REFORM AND ROLLBACK: THE EFFECTS ON SMALL 
                              BUSINESSES''

    On March 7, 2018, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Regulatory Reform and Rollback: The Effects on Small 
Businesses.'' The hearing examined the effects of Congress and 
the President's regulatory reform and rollback efforts on small 
businesses.
    The witnesses for the hearing were: Mr. Karen Hamed, 
Executive Director of the Small Business Legal Center, National 
Federation of Independent Business, Washington, DC; Mr. Patrick 
Hedren, Vice President of Labor, Legal & Regulatory Policy, 
National Association of Manufacturers, Washington, DC; Mr. 
Randy Noel, Chairman, National Association of Home Builders, 
Washington, DC; and Ms. Lisa Heinzerlig, Justice William J. 
Brennen, Jr., Professor of Law, Georgetown Law, Washington, DC.
    The witnesses provided testimony detailing how federal 
regulations continue to be a problem for America's small 
business owners, as they bear a disproportionate amount of the 
regulatory burden. For example, Ms. Harned testified that 
almost half of small businesses view regulation as a very 
serious or somewhat serious problem. She further testified that 
the key drivers for this regulatory burden are compliance 
costs, difficulty understanding regulatory requirements, and 
extra paperwork. Similarly, Mr. Hedren testified that small and 
medium-sized manufacturers experience regulatory burdens 
differently than larger ones because they lack the economies of 
scale that larger businesses use to spread the costs of 
compliance, such as monitoring new or changing requirements, 
implementing new or different processes, completing paperwork, 
and working with regulatory agencies to resolve disputes.
    Despite the problems that small businesses currently face 
when complying with regulations, the witnesses also stated that 
things are getting better. Mr. Hedren testified that 94.6 
percent of manufacturers were positive about their own 
company's outlook, which is an all-time high. Similarly, Mr. 
Noel testified that the home building industry and small 
businesses have been significant beneficiaries of efforts to 
reduce costly regulations, and builders have entered 2018 with 
a great deal of optimism. Ms. Harned said America's small 
business owners view the President's commitment to rolling back 
unnecessary, burdensome, and duplicative regulations as one of 
his Administration's greatest accomplishments in his first year 
in office. The Trump Administration has reduced the number of 
pages in the Federal Register by 36 percent, and has exceeded 
its goal of eliminating two regulations for every new one 
proposed by eliminating 22 regulations for every new one in 
fiscal year 2017.
    However, despite all the work that Congress and the 
President have done to reduce the regulatory burden on small 
businesses, the witnesses emphasized that more needs to be 
done. Mr. Noel provided examples of specific regulations that 
still need to be addressed, such as the Occupational Safety and 
Health Administration's multiemployer policy, the Environmental 
Protection Agency's lead renovation, repair, and painting 
program, the Department of Labor's apprenticeship program, and 
Endangered Species Act regulations. Ms. Harned, Mr. Hedren, and 
Mr. Noel all emphasized the importance of reforming the 
regulatory process, which must be addressed by Congress. The 
witnesses supported numerous regulatory reforms that would help 
give small businesses a stronger voice in the rulemaking 
process and require agencies to more closely assess how their 
proposed regulations would impact small businesses. 
Additionally, Ms. Heinzerling stressed the importance of 
considering how large scale deregulatory initiatives can pit 
one small business against another and how focused regulatory 
streamlining can better serve small entities.

     HEARING: ``DISPARITIES IN ACCESS TO CAPITAL: WHAT THE FEDERAL 
   GOVERNMENT IS DOING TO INCREASE SUPPORT FOR MINORITY-OWNED FIRMS''

    On March 12, 2018, the Committee on Small Business met at 
the Jacksonville Chamber of Commerce, 3 Independent Dr., 
Jacksonville, FL for a field hearing titled ``Disparities in 
Access to Capital: What the Federal Government Is Doing to 
Increase Support For Minority Owned Firms.'' This hearing 
focused on the challenges small businesses face with Small 
Business Administration (SBA) lending programs, traditional 
bank loans, private investment capital, and other alternative 
financing.
    Witnesses on the panel were: Mr. Jimmy Van Horn, Lead 
Lender Relations Specialist, United States Small Business 
Administration, Jacksonville, FL; Ms. Hillary Almond, Owner, 
Almond Engineering, Jacksonville, FL; Ms. Roslyn Phillips, Vice 
President, The Hester Group, Jacksonville, FL; and Mr. Dane 
Grey, President, Elite Parking Services of America, 
Jacksonville, FL.
    The panel discussed trends in small business access to 
capital as well as their own struggles with obtaining 
financing. Mr. Van Horn outlined how the SBA guarantees small 
business loans and provided statistics on the growth of certain 
SBA programs. For example, the SBA Microloan program, which 
provides loans of up to $50,000, has seen a year-over-year 
increase of 5 percent. Ms. Almond discussed how she became an 
entrepreneur and mentioned some of the difficulties associated 
with obtaining capital. Ms. Phillips mentioned several of the 
reasons why small businesses struggle to obtain capital, 
including the lack of a relationship with financial 
institutions, unawareness of available resources, and 
insufficient financial documentation to convey past 
performance. Mr. Grey discussed how he grew his business from a 
part time hobby in college to a 400-employee business with 
operations across the country.

     HEARING: ``THE STATE OF TRADE FOR AMERICA'S SMALL BUSINESSES''

    On April 11, 2018, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``The State of Trade for America's Small Businesses.'' 
The hearing examined the State Trade and Export Promotion 
(STEP) Grant Program and the federal government's overall 
efforts to increase small business exports. Additionally, the 
Committee explored recent trade policy developments and their 
impact on America's small business exporters.
    Increasing small business exports continues to be a top 
priority for both United States lawmakers and the federal 
government. International trade policy affects nearly every 
type of small business. Whether a business directly exports an 
agricultural commodity, imports a component part, or sells 
foreign merchandise, global trade influences its operations and 
competitiveness. The trade agreements that the federal 
government negotiates play a critical role in determining 
whether a small business is able to compete in the global 
market, because small firms have limited resources and 
personnel to comply with foreign requirements it acts as a 
trade barriers.
    Witnesses on the panel were: Mr. Chuck Wetherington, 
President, BTE Technologies, Inc., Hanover, MD, testifying on 
behalf of the National Association of Manufacturers; Mr. Ken 
Couch, Director, Product Management, ComSonics, Inc., 
Harrisonburg, VA, testifying on behalf of the State 
International Development Organizations; and Mr. Raymond 
Keating, Chief Economist, Small Business and Entrepreneurship 
Council, Vienna, VA.
    At the healing, the Committee heard from small businesses 
and technology service experts on how proposed changes to the 
tariff schedule and stronger enforcement strategies could 
impact American manufacturers and service-oriented small 
businesses. While nearly 300,000 small businesses are currently 
exporting to foreign markets, many small businesses face 
significant challenges in getting their goods and services 
abroad. Mr. Wetherington mentioned that some of the challenges 
small businesses face are similar to those of large businesses, 
such as tariffs, lack of transparency, discriminatory policies, 
and weak intellectual property (IP) protections. Mr. Couch 
talked about many of the trade barriers specific to small 
businesses. He stated that the main challenge small businesses 
face is an investment risk--smaller companies are more 
skeptical to invest their resources without any known return. 
Mr. Keating discussed the importance of free trade for small 
businesses and the American economy, stating that free trade 
reduces costs through enhanced competition, lowers costs for 
consumers, opens new markets and opportunities for businesses, 
and feeds economic growth.

 HEARING: ``AN EXAMINATION OF THE SMALL BUSINESS ADMINISTRATION'S 7(A) 
                       LOANS TO POULTRY FARMERS''

    On April 18, 2018, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``An Examination of the Small Business Administration's 
7(a) Loans to Poultry Farmers.'' The hearing examined the Small 
Business Administration (SBA) Office of Inspector General's 
(OIG) recent evaluation of the SBA's 7(a) Program loans to 
poultry farmers.
    The witnesses for the hearing were: Mr. Hannibal ``Mike'' 
Ware, Acting Inspector General, SBA, Washington, DC; and Mr. 
William M. Manger, Associate Administrator, Office of Capital 
Access, SBA, Washington, DC.
    OIG examined the universe of 7(a) agricultural loans from 
FY2012 to FY2016 as well as a more thorough review of a sample 
of poultry loans. OIG found that the 7(a) loans made to growers 
did not meet regulatory and SBA requirements for eligibility: 
large poultry companies (integrators) exercised such control 
over the growers through contracts, operating procedures, and 
other mandates that growers ceased to be independent businesses 
and became affiliates of the integrators. Under current SBA 
size standard regulations and requirements, large companies are 
not eligible for SBA loans. Given the evidence of affiliation, 
OIG found that from FY2012 to FY2016, SBA guaranteed 
approximately $1.8 billion of 7(a) loans that may be 
ineligible.
    SBA agreed with OIG's recommendations to review the sample 
of loans cited in the report as well as to review arrangements 
between integrators and growers in regard to current 
affiliation rules and regulations and to establish and 
implement additional controls or actions if needed.
    To increase access to capital, the SBA offers small firms 
guarantees through private lenders that participate in the 7(a) 
Loan Program, whereby loan proceeds can be used for general 
business purposes. The program does not provide direct loans to 
participating small businesses; rather, SBA guarantees the 
repayment of loans made by lenders. To ensure the integrity of 
the 7(a) Loan Program for small businesses that truly require 
SBA's capital access resources, House Small Business Committee 
Chairman Steve Chabot (R-OH) and Ranking Member Nydia Velazquez 
(D-NY) introduced H.R. 4743, the ``Small Business 7(a) Lending 
Oversight Reform Act of 2018.'' Senators James Risch (R-ID) and 
Jeanne Shaheen (D-NH) likewise introduced the companion 
legislation, S. 2283, at the same time. With the aim of 
increasing SBA's oversight functions, H.R. 4743 proposes a 
number of reforms to increase lender oversight while providing 
certainty to small businesses as they face an uncertain lending 
environment. H.R. 4743 passed the House Committee on Small 
Business S. 2283 passed the Senate Committee on Small Business 
and Entrepreneurship in March of 2018.

HEARING: ``AMERICAN INFRASTRUCTURE AND THE SMALL BUSINESS PERSPECTIVE''

    On April 25, 2018, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``American Infrastructure and the Small Business 
Perspective.'' The Committee examined the small business 
perspective of the development and use of our nation's 
infrastructure. In particular, the hearing considered how 
surface transportation and access to broadband promote economic 
growth among small businesses. The hearing also explored some 
of the challenges that small businesses face without a robust 
infrastructure system.
    A reliable American infrastructure system is key to the 
growth of the United States economy and the success of our 
nation's small businesses. Small firms both build our nation's 
infrastructure and rely upon it to create jobs, promote 
competition, and get their goods to the market. The American 
infrastructure system is a widely-encompassing umbrella, 
including roads, bridges, railways, waterways, sea ports, 
airports, broadband deployment, and more. Providing a reliable 
and secure infrastructure is one arena where federal, state, 
and local governments can play a major role in supplying the 
tools for success for America's small businesses.
    Witnesses on the panel were: Ms. Marsia Geldeti-Murphey, 
Chief Operating Officer, W. James Taylor, Inc., Belleville, IL, 
testifying on behalf of the American Society of Civil 
Engineers; Mr. Bill Schmitz, Vice President, Sales and Quality 
Control, Gernatt Asphalt Company, Collins, NY, testifying on 
behalf of the National Stone, Sand, and Gravel Association; Mr. 
Kevin Beyer, General Manager, Farmers Mutual Telephone Company 
and Federated Telephone Cooperative, Chokio, MN, testifying on 
behalf of NTCA--The Rural Broadband Association; and Mr. Bob 
Dagostino, President and CEO, Dagostino Electronic Services, 
Inc., testifying on behalf of the National Electrical 
Contractors Association.
    Chairman Chabot opened the hearing by noting that American 
small business owners often feel the effects of our nation's 
broken infrastructure system the most. He also stated that 
surface transportation and access to broadband are areas where 
there is room for significant improvement. Ms. Geldert-
Murphey's testimony focused on the infrastructure investment 
gap, and noted that failure to meaningfully invest in 
infrastructure can affect businesses large and small, 
households, and even economic Gross Domestic Product. Mr. 
Schmitz discussed many of the federal regulations that can act 
as barriers for small businesses, such as federal permitting 
and the Clean Water Act. He also stated that a long-term plan 
for the Highway Trust Fund is crucial for small businesses in 
rural areas. Mr. Beyer addressed the importance of broadband 
deployment for rural America and the ways it can help small 
businesses and households to access health care and education 
and keep small businesses competitive. Finally, Mr. Dagostino 
shared the perspective of an electrical contractor, and said 
his industry struggles with on-time payments and finding 
skilled workers.

   HEARING: ``READY, WILLING, AND ABLE TO WORK: HOW SMALL BUSINESSES 
            EMPOWER PEOPLE WITH DEVELOPMENTAL DISABILITIES''

    On May 9, 2018, the Committee on Small Business met in Room 
2360 of the Rayburn House Office Building for a hearing titled 
``Ready, Willing, and Able to Work: How Small Businesses 
Empower People with Developmental Disabilities.'' The hearing 
examined the role small businesses have played in employing 
individuals with differing abilities and the lessons that have 
been learned.
    The witnesses for the hearing were: Ms. Angela Timashenka 
Geiger, President and CEO, Autism Speaks, Washington, DC; Mr. 
Dave Friedman, Founder and CEO, AutonomyWorks, Downers Grove, 
IL; Mr. John Cronin, Co-Founder and Chief Happiness Officer, 
John's Crazy Socks, Melville, NY, (accompanied by Mr. Mark X. 
Cronin, Co-Founder and President, John's Crazy Socks); and Ms. 
Lori Ireland, President, Extraordinary Ventures, and Vice Chair 
Autism Society of America, Chapel Hill, NC.
    One segment of American society that is often overlooked 
when discussing economic opportunities through new job growth 
is the special needs community. A common strategy to reduce 
barriers to employment is to provide workplace accommodations, 
which may include: flexible schedule; mentoring and on the job 
training; personal care attendants; special equipment or 
modified work space; modified work duties; or transportation 
assistance. Accommodations for individuals with developmental 
disabilities are generally low cost. Given the innovation, 
flexibility, and diversity of small businesses, they can offer 
inclusive environments for employees with developmental 
disabilities.
    Since the Committee's May 2016 hearing on this topic, three 
recent trends in small business opportunities for individuals 
with developmental disabilities have emerged. (1) The growing 
number of small businesses created by parents (or groups of 
parents) or other advocates with the mission of hiring 
individuals with autism or other developmental disabilities. 
While these businesses are mission driven, they are for-profit 
businesses, not charities. (2) The increase of entrepreneurs 
with developmental disabilities owning and operating micro-
businesses or being self-employed. These include artisans or 
inventors selling their products or individuals providing a 
service. (3) Businesses, both large and small, have announced 
initiatives to diversify their workforces by hiring individuals 
with developmental disabilities.
    Small businesses play a crucial role in our nation's 
economy, but just as important is the role small businesses 
play in the community. Members of the Committee heard from 
employers and organizations who have been pioneers in providing 
job opportunities to individuals whose contributions can be 
overlooked.

  HEARING: ``INTELLECTUAL PROPERTY 101: HOW SMALL BUSINESS OWNERS CAN 
    UTILIZE INTELLECTUAL PROPERTY PROTECTIONS IN THEIR BUSINESSES''

    On May 16, 2018, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Intellectual Property 101: How Small Business Owners 
Can Utilize Intellectual Property Protections in Their 
Businesses.'' The hearing examined how small business owners 
have used intellectual property protections to help their 
businesses and the issued they have faced when navigating the 
intellectual property processes.
    The witnesses for the hearing were: Ms. Michal Rosenn, 
General Counsel, Expa, New York, NY; Mr. David Graham, CEO, 
Code Ninjas LLC, Pearland, TX, testifying on behalf of the 
International Franchise Association; Mr. Rick Carnes, 
President, Songwriters Guild of America, Inc.; and Ms. Joan 
Fallon, DC, Founder and CEO, Curemark, Rye, NY.
    The witnesses provided testimony detailing the importance 
of intellectual property protections for small businesses 
owners and the challenges they face. For example, Ms. Rosenn 
discussed the experiences that startups have with patents and 
the intellectual property system. She testified that filing for 
patents is a long and expensive process, but a patent is a 
valuable asset for a business. However, Ms. Rosenn explained 
that even with various patent reforms, abuse of the patent 
system still exists. She testified that for many startups and 
other small businesses, the only interaction they ever have 
with the patent system is through predatory patent litigation. 
She described the experience that one startup company had when 
it was sued in a patent infringement case.
    Mr. Graham testified that intellectual property, especially 
trademarks, can play a key role in ensuring brand protection 
and providing consistent quality for businesses who franchise. 
He explained that without intellectual property protections, 
his company would not have been as successful as it was and he 
would not have been able to franchise his business across the 
country. Mr. Graham stated that franchises should be understood 
as a system of licensing intellectual property where each 
individual franchise is a small business that hires and fires 
their own workers, but the brand controls the look and feel of 
the system so that the customer's experience is consistent.
    Copyright protections are another type of intellectual 
property that play an important role for creative industries, 
including songwriters. Mr. Carnes explained how most 
songwriters are self-employed small businessmen and women who 
are completely reliant on copyright protections to survive. He 
explained that in the current digital environment, songwriters 
are especially vulnerable to piracy and unauthorized 
distribution of their work. Copyright protections allow them to 
fight back, but he suggested that some reforms can be made to 
help small business owners more effectively enforce their 
copyrights.
    Finally, Dr. Fallon discussed how patents have been vital 
to her business in the science field and have helped her 
discover important drugs for various neurological disorders. 
She testified that intellectual property forms the basis of her 
company. She explained how patents can grow value at all stages 
in a company's lifecycle, and are especially critical for 
startups to help provide assurance to investors. Patents also 
can provide a competitive advantage for small businesses, allow 
for licensing and joint ventures, and are often critical in 
obtaining funding. She also discussed the gap between the 
number of female patent holders and male patent holders.

              HEARING: ``MILLENNIALS AND THE GIG ECONOMY''

    On Wednesday, June 6, 2018 at 11:00 A.M., the Committee on 
Small Business met in Room 2360 of the Rayburn House Office 
Building for a hearing titled ``Millennials and the Gig 
Economy.'' The purpose of the hearing was to explore the 
relationship between small businesses and the gig economy. 
Specifically, this heating examined the increasing number of 
millennials pursuing careers within the gig economy, while 
considering how this economic trend is impacting small 
businesses.
    The witnesses for the hearing were: Ms. Betsy Dougert, 
Director of Communications, SCORE Association, Herndon, VA; Mr. 
Ryan Morris, Owner, Ruff House Dog Training, Stafford, VA; Ms. 
Anne Kirby, Founder, The Sweet Core, Lancaster, PA; and Mr. 
Steven Olikara, Founder and President, Millennial Action 
Project, Washington, DC.
    Chairman Chabot explained the gig economy as a marketplace 
of workers whose businesses are a collection of individual 
projects or ``gigs.'' Ms. Dougert discussed the relationship 
between small businesses and the gig economy. Statistics have 
shown that small businesses are hiring independent contractors 
or gig workers at a higher rate than traditional employees. As 
a gig worker himself, Mr. Morris highlighted the increased 
freedom and flexibility that the gig economy offers. This 
increased flexibility is widely seen as a key factor in the 
growth of the gig economy. As the gig economy continues to 
grow, the concept of coworking has grown as well. Ms. Kirby 
spoke about the importance of coworking in providing gig 
workers with community support and networking opportunities, 
both of which contribute to an entrepreneur's ability to scale 
their business in the long term. Mr. Olikara commented on the 
lack of employer sponsored retirement or healthcare programs 
and the potential policy solutions to these issues moving 
forward.

 HEARING: ``THE IMPACT OF CATEGORY MANAGEMENT ON THE SMALL BUSINESSES 
                           INDUSTRIAL BASE''

    On June 13, 2018 the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``The Impact of Category Management on the Small 
Business Industrial Base.'' The hearing continued the 
Committee's longstanding oversight examining the use of 
contract bundling and consolidation in the federal procurement 
system.
    The federal government spends over $300 billion dollars on 
goods and services each year. In order to seek efficiencies and 
manage this spending, the Office of Management and Budget (OMB) 
expanded upon previous attempts at contract consolidation, 
resulting in the current category management strategy. The 
purpose of category management, as originally developed, was to 
track and analyze market research data to better capture what 
the federal government was buying and how it was spending in 
order to increase efficiencies and achieve cost savings. Used 
in this manner, category management can be a valuable tool to 
the federal government. However, category management has been 
taken a step further; the OMB mandated a targeted increase in 
spending through ``best-in-class'' contract vehicles and a 
decrease in individual contracts. This has the potential 
consequence of funneling contract dollars and awards towards 
specific, few contract vehicles which have only a handful of 
vendors, both large and small, operating on each vehicle. This 
federal spending approach may have deleterious impacts on small 
businesses who do not operate on these ``best-in-class'' 
vehicles, particularly for emerging small businesses, by 
reducing the number of available opportunities for small 
businesses and by making it increasingly difficult to compete 
for government contracts. As OMB continues to implement 
category management government-wide, the impacts to the small 
business industrial base should be considered.
    Witnesses on the panel were: Ms. Shirley Bailey, CEO and 
Managing Member of MSC Management Services, LLC in Oakland, MD, 
testifying on behalf of the HUBZone Contractors National 
Council; Mr. Alan Chvotkin, Executive Vice President and 
Counsel of the Professional Services Council in Arlington, VA; 
Ms. Beth Laurie Strum, Vice President of Business Development 
of Volanno, formerly known as IT WORKS, Washington DC, 
testifying on behalf of the U.S. Women's Chamber of Commerce; 
and Ms. ML Mackey, CEO of Beacon Interactive Systems, Waltham, 
MA, testifying on behalf of the National Defense Industrial 
Association.
    Ms. Bailey explained that category management will not only 
have harmful impacts on small businesses but also may also harm 
agencies abilities to meet their small business goals. Mr. 
Chvotkin questioned whether category management will help 
agencies meet their mission objectives. He explained that 
labeling a contract as ``best-in-class'' after the contract has 
already been awarded harms small businesses that did not 
compete for a spot on that contract. Ms. Strum noted that this 
framework restricts competition to a handful of vendors which 
harms the industrial base and also advocated for more on-
ramping opportunities for existing ``best-in-class'' contract 
vehicles. Ms. Mackey stated that this policy dilutes the 
innovative and agile advantages that small businesses bring to 
federal procurement.

HEARING: ``EXPLORING THE STATE OF WESTERN KENTUCKY'S SMALL BUSINESSES''

    On June 18, 2018, the Committee on Small Business met in 
the Paducah Bank Room, Paducah Area Chamber of Commerce, 
Paducah, Kentucky, for a field hearing titled ``Exploring the 
State of Western Kentucky's Small Businesses.'' Small business 
leaders shared their experiences and provided the Committee 
with recommendations about federal policies that will help them 
grow their businesses and create jobs.
    The witnesses for the hearing were: Mr. Bruce Kimbell, 
President, First Community Bank of the Heartland, Clinton, KY; 
Mr. Leon Owens, President, Swift & Staley, Inc., Paducah, KY; 
Mr. Edward Musselman, Owner, Musselman Properties, Paducah, KY; 
and Mr. Jonas Neihoff, Owner, Socially Present, Paducah, KY.
    While large companies regularly raise capital through debt 
and equity markets, small businesses often finance their 
endeavors with personal assets or commercial bank borrowing. 
Unfortunately, the lending environment around the country for 
small businesses continues to be stagnant. According to 
research, the total value of loans by small domestic banks has 
remained flat since the recession and depressed as compared to 
levels before the recession. With capital options limited, 
small businesses often turn to the SBA to finance their 
projects. The SBA, which was created in 1953 by the Small 
Business Act, administers several programs designed to assist 
small businesses, including capital access programs that aim to 
bridge the debt and equity gaps that exist in the marketplace. 
Mr. Kimbell testified about the role of community banks in 
providing small businesses access to credit and about how H.R. 
4743, the Small Business 7(a) Lending Oversight Reform Act, 
would improve SBA's 7(a) loan program. Mr. Owens explained the 
impact of H.R. 5236, the Main Street Employee Ownership Act, on 
small business and employees and provided recommendations about 
how successful small businesses could continue to participate 
in small business programs after they have slightly exceeded 
their size standards.
    Across every industry, small business owners continue to be 
burdened by federal regulations. The cost in time and money to 
research, understand, and comply with regulations continues to 
be a problem for small businesses, and federal agencies have 
not always taken the proper steps to ensure they are adequately 
assessing how they are impacting small businesses when issuing 
new regulations. Complying with federal regulations continues 
to be one of the biggest challenges for America's small 
businesses. Both Congress and President Trump have taken steps 
to reduce the regulatory burden on small businesses by rolling 
back and revising existing regulations. The President has also 
taken steps to reform the regulatory process and require 
federal agencies to review their existing regulations and 
identify candidates for removal or revision. Mr. Musselman 
discussed the historic tax credit, a provision of H.R. 1, the 
Tax Cuts and Jobs Act, and provided recommendations to reform 
Obamacare's employer mandate. Mr. Neihoff testified about the 
importance of finding a local mentor who can guide 
entrepreneurs and new small businesses through the process of 
starting a business.

     HEARING: ``THE PERSPECTIVE OF RURAL SMALL BUSINESSES IN NORTH 
                             MISSISSIPPI''

    On June 18, 2018, the Committee on Small Business met for a 
field hearing titled, ``The Perspective of Rural Small 
Businesses in North Mississippi.'' The hearing took place at in 
Southaven, MS at the ServPro Training Center, 1160 Stateline 
Road East. The hearing highlighted how rural small businesses 
in Mississippi are faring in today's economy and the outlook 
going forward.
    Witnesses on the only panel were: Mr. Pat Woods, Owner, 
Woods Farm Supply, Inc., Byhalia, MS; Mr. Geoffrey Carter, 
Founder, President and CEO, Hyperion Technology Group, Inc., 
Tupelo, MS; Mr. Michael Hatcher, President Michael Hatcher & 
Associates, Inc., Olive Branch, MS; and Mr. Jason Bailey, 
President and CEO, Summit Management Services, LLC, Oxford, MS.
    Chairman Chabot discussed the regulatory and tax reform 
efforts of Congress and President Trump and how that has been 
beneficial for small businesses in the economy. Congressman 
Kelly echoed Chairman Chabot's statements on the benefits of 
regulatory and tax reform efforts of the federal government, 
but pointed out that more progress needs to me made in the 
areas of access to capital, rural broadband deployment, and the 
difficulty small firms are experiencing finding qualified 
employees to fill open positions. Mr. Woods testified that he 
has seen a significant growth in the small business sector of 
North Mississippi's economy due in large part to the regulatory 
and tax reform efforts the federal government has taken in the 
past 18 months. Mr. Carter testified that since the 2016 
election, his workforce had grown by 30 percent, the company's 
revenue had doubled, and was currently seeking a new facility 
as they had outgrown their current one. Mr. Hatcher also 
pointed to tax reform as a catalyst for growth in rural 
businesses in his area. Mr. Bailey stated that his outlook for 
his small business is optimistic, but the federal government 
ought to continue to find regulations that are unnecessarily 
burdensome.

         HEARING: ``COMMUNITIES THAT THINK SMALL AND WIN BIG''

    On Wednesday, June 20, 2018, the Committee on Small 
Business met in Room 2360 of the Rayburn House Office Building 
for a hearing titled ``Communities That Think Small and Win 
Big.'' The purpose of the hearing was to highlight localities 
that have developed thriving small business ecosystems. The 
hearing examined key elements of a business-friendly 
environment as well as the socioeconomic returns on small 
business investment. Witnesses reviewed economic development 
policy strategies, best practices, and local success stories.
    Localities use a variety of policy tools to address 
business concerns, including operating costs, operating 
conditions, and quality of life. The panel touched on familiar 
themes, including regulations, taxes, access to capital, and 
access to resources. The witnesses explained how they tailor 
economic development strategies to meet the specific needs of 
their community and businesses they wanted to attract.
    Witnesses on the panel were: Mr. Greg Prestemon, President 
and CEO, EDC Business and Community Partners, St. Charles, MO; 
Mr. Derek Miller, President and CEO, Salt Lake Chamber and 
Downtown Alliance, Salt Lake City, UT; Ms. Vanessa Wagner, 
Small Business and Entrepreneurship Manager, Loudoun County 
Department of Economic Development, Ashburn, VA; and Mr. Gregg 
Bishop, Commissioner, New York City Department of Small 
Business Services, New York, NY.

        HEARING: ``ZTE: A THREAT TO AMERICA'S SMALL BUSINESSES''

    On June 27, 2018, the Committee on Small Business met in 
Room 2360 Rayburn House Office Building for a hearing-titled 
``ZTE: A Threat to America's Small Businesses.'' The hearing 
examined the imminent threat posed to America's small 
businesses by the Chinese telecommunications firm Zhongxing 
Telecommunications Equipment Corporation (ZTE) and provided 
Committee Members the opportunity to hear from national 
security experts and representatives of cybersecurity firms on 
steps the Administration can take to protect small businesses 
and American citizens from the dangers presented by ZTE. The 
hearing also investigated ongoing efforts by both the public 
and private sectors to reduce the challenges small businesses 
face in dealing with illicit Chinese-backed enterprises.
    As small businesses increasingly rely on foreign technology 
products and services, they become even more susceptible to 
cyber attacks. As the Committee has learned in past hearings, 
some foreign-backed firms have taken steps to expose small 
businesses' information technology systems as a means of 
infiltrating America's critical infrastructure and weakening 
national security. Foreign governments--through subversive 
tactics--can employ state-backed firms to orchestrate cyber 
attacks, cyber espionage, and other national strategic 
objectives, making it difficult to identify the responsible 
entity. Vulnerabilities in the information technology supply 
chain are especially at risk because foreign telecommunications 
firms are capable of exploiting these weaknesses to carry out 
criminal activities.
    Witnesses on the panel were: Mr. David Linger, President 
and CEO, TechSolve, Inc., Cincinnati, OH; Mr. Andy Keiser, 
Visiting Fellow, National Security Institute, Antonin Scalia 
Law School, George Mason University, Arlington, VA; and Mr. 
Matthew G. Olsen, President, IronNet Cybersecurity, Kensington, 
MD.
    Chairman Chabot noted the years long investigation into 
ZTE's nefarious activities and efforts to subvert United States 
export control laws and the subsequent judgements brought 
against ZTE. The panel discussed the importance of holding ZTE 
accountable for its misdeeds. Mr. Linger testified that typical 
IT cyber-attacks and both foreign and domestic espionage will 
continue to target manufacturers and devastate these companies, 
their customers, and supply chain primes. He also stated that 
there is fierce competition for intellectual property and 
industrial control systems that are largely left unguarded, and 
that their systems are increasingly connected through the use 
of IOT devices, robotics, and human-machine interfaces to 
improve automation and decrease costs. Mr. Keiser said that 
part of China's vision includes dominance in fields that have 
dual economic and military benefit. He stated that in 2015, 
Chinese leaders unveiled the ``Made in China 2025'' strategic 
plan which focuses on the country becoming the world's leader 
in high-tech fields, squarely within the learned and stolen 
expertise of ZTE and Huawei. Mr. Olsen observed that ZTE has 
proven to be a particularly bad actor, flouting U.S. export 
control laws and deceiving regulators. He also said that the 
U.S. government found ZTE to be in violation of U.S. sanctions 
against Iran and North Korea, by using various U.S. components 
in systems it sold to those two countries and, when the 
Commerce Department released its findings against ZTE in 2016, 
it disclosed evidence of the company's guilt. He noted that one 
document, signed by several senior ZTE executives, reportedly 
cautioned that American export laws were a risk because the 
company was selling to all five major embargoed countries--
Iran, Sudan, North Korea, Syria and Cuba.

   HEARING: ``INNOVATION NATION: HOW SMALL BUSINESSES IN THE DIGITAL 
            TECHNOLOGY INDUSTRY USE INTELLECTUAL PROPERTY''

    On July 11, 2018, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Innovation Nation: How Small Businesses in the Digital 
Technology Industry Use Intellectual Property.'' The hearing 
examined how small business owners in the digital technology 
industry utilize intellectual property (IP).
    The witnesses for the hearing were: Mr. Frank Cullen, Vice 
President of U.S. Policy, The Global Innovation Policy Center, 
U.S. Chamber of Commerce, Washington, DC; Mr. Morgan Reed, 
President, ACT I | The App Association, Washington, DC; Mr. 
Christopher Mohr, Vice President for Intellectual Property and 
General Counsel, Software & Information Industry Association, 
Washington, DC; and Mr. Chris Israel, Executive Director, 
Alliance for U.S. Startups & Inventors for Jobs, Washington, 
DC.
    The witnesses provided testimony detailing the role of IP 
for small business owners in the digital technology industry. 
Mr. Cullen provided an overview of the importance of IP in the 
United States and how IP rights drive competitiveness and 
economic growth. He also testified about the Global Innovation 
Policy Center's International IP Index that is published every 
year, which showed that the United States is the top-scorer for 
its overall IP system. Mr. Cullen also stressed the importance 
of educating small business owners to help them understand how 
IP can help them succeed and which form of IP is most relevant 
to their type of business.
    Mr. Reed testified about the importance of IP for small 
mobile software companies. He stated that IP is usually at the 
forefront of his members' minds and emphasized the importance 
of an IP system that is accessible and useful to small, 
innovative, software-driven companies.
    Mr. Mohr explained how a sound and uniform IP system exists 
in the United States and has been working for software 
companies. He discussed how IP-intensive industries continue to 
grow and provide jobs, and research and development investments 
have been growing faster than any other industry. He also 
stated how each IP protection helps small software companies 
grow from small ones to large ones.
    Mr. Israel focused on the importance of IP protections to 
receive funding from investors. His testimony discussed how the 
United States patent system has been eroded by court decisions 
and changes in the law. Mr. Israel provided the results of a 
study detailing the trends in venture capital investment in 
recent years. He testified that even though venture capital 
investment has increased over the past 15 years, the portion 
committed to small businesses in important technology sectors 
such as medical devices and wireless communications has 
declined. Mr. Israel provided specific recommendations and 
actions that the United States Patent and Trademark Office can 
take to reform some of the issues that his members face in the 
patent system.

            HEARING: ``THE TAX LAW'S IMPACT ON MAIN STREET''

    On July 25, 2018, the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``The Tax Law's Impact on Main Street.'' The purpose of 
the hearing was to examine how the recently enacted tax reform 
package affected small businesses. The hearing allowed Members 
of the Committee the opportunity to hear directly from small 
business owners regarding the impact the law has had on their 
operations and their company's outlook.
    The witness for the hearing were: Mr. Wettlin Treppendahl, 
Owner, Treppendahl's Super Foods, Woodville, MS, on behalf of 
the National Grocers Association; Mr. Tibi Czentye, Chief 
Executive Officer, All Pro Solutions, Rock Hill, SC; Mr. Gary 
Ellerhorst, President/CEO, Crown Plastics Co., Harrison, OH; 
and Ms. K. Davis Senseman, Founder, Davis Law Office, 
Minneapolis, MN, on behalf of the Main Street Alliance.
    On December 22, 2017, President Donald Trump signed the Tax 
Cuts and Jobs Act into law. With economic data responding 
positively to the tax reform package, one measure will come 
from small business owners on the ground. In Committee 
testimony and responses to Member questions, all three small 
business witnesses said the Tax Cuts and Jobs Act was 
beneficial to their businesses and a step in the right 
direction. Mr. Treppendahl said the tax reform package allowed 
his supermarket to invest in new freezer doors and provide 
raises to employees. Mr. Czentye, the chief executive of a 
digital archiving business, said that because of the Tax Cuts 
and Jobs Act, optimism in his South Carolina community is 
soaring and that the fourth quarter forecasts for his business 
have increased exponentially. Mr. Ellerhorst said that combined 
with the booming economy and deregulation, the tax reform 
package will have a significant impact moving forward. Ms. 
Senseman commented on the need for timely regulations, 
particularly in the area of the pass-through tax deduction. She 
noted that small firms wishing to take advantage of the 
provision were in limbo because they had been given no rules of 
the road, further creating uncertainty and complexity for the 
current tax year.

    HEARING: ``SURVEYING STORMS: A DEEPER DIVE INTO SBA'S DISASTER 
                               RESPONSE''

    On Wednesday, September 5, 2018, the Committee on Small 
Business met in Room 2360 of the Rayburn House Office Building 
for a hearing titled ``Surveying Storms: A Deeper Dive into 
SBA's Disaster Response.'' The purpose of the hearing was to 
examine the United States Small Business Administration's (SBA) 
disaster response to the 2017 storm season. The hearing 
provided Members of the Committee the opportunity to hear 
directly from the SBA regarding the agency's actions during the 
2017 storm season and SBA's disaster response moving forward.
    The witness for the hearing was: Mr. James Rivera, 
Associate Administrator, Office of Disaster Assistance, SBA, 
Washington, DC.
    Mr. Rivera testified before the Committee regarding the 
response SBA provided to disaster victims during the 2017 storm 
season, which included Hurricane Harvey, Hurricane Irma, and 
Hurricane Maria, all of which made landfall within weeks of 
each other. In the past, SBA has struggled while responding to 
major disasters, namely Hurricane Katrina in 2005 and Hurricane 
Sandy in 2012. While discussing the unique challenge of 
responding simultaneously to three major disasters, Mr. Rivera 
detailed how SBA's Disaster Loan Program assisted 2017 disaster 
victims, including how the program is administered. 
Specifically, Mr. Rivera testified that SBA moved with alacrity 
and approved $1 billion dollars in loans for the 2017 
hurricanes in half the amount of time compared to previous 
disasters. Although the recovery for 2017 storm victims 
continues, to date, SBA has approved over $7.2 billion of loans 
to those impacted by Hurricanes Harvey, Irma, and Maria. 
Acknowledging that SBA needs to continue to make improvements 
with its disaster response, Mr. Rivera outlined for the 
Committee areas the agency is addressing including ongoing 
customer service to victims and barriers to the application 
process. Finally, Mr. Rivera noted the importance of making the 
collateralization requirements for disaster loans permanent at 
$25,000 instead of $14,000 if the provision is allowed to 
expire.

     HEARING: ``NOW HIRING: HOW THE OPIOID EPIDEMIC AFFECTS SMALL 
                              BUSINESSES''

    On September 13, 2018, the Committee on Small Business met 
in Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Now Hiring: How the Opioid Epidemic Affects Small 
Businesses.'' Specifically, the hearing examined the decline in 
the labor forceparticipation rate due to the epidemic and the 
challenges that small businesses experience in finding 
qualified workers as a result.
    Witnesses on the panel were: Mr. Ben Gitis, Director of 
Labor Market Policy, American Action Forum, Washington, DC; Ms. 
Katie Van Dyke, Director, Ohio Small Business Development 
Center, Cleveland State University, Cleveland, OH, testifying 
on behalf of America's SBDC; and Ms. Lisa Allen, President & 
CEO, Ziegenfelder Company, Wheeling, WV.
    Chairman Chabot opened the hearing by noting that although 
small business optimism has reached a record 45-year high, 
finding and retaining qualified workers has become a recent 
challenge for many small businesses. He also stated that many 
working age men and women are out of the labor force due to 
opioids, and that the opioid crisis has taken a toll on many 
small businesses and communities. Mr. Gitis discussed how the 
growing use of prescription painkillers and other opioids has 
led to a declining labor force participation in the United 
States economy. He also stated that, although the declining 
labor force affects all businesses and communities, the effects 
are most heavily felt by small businesses with under 50 
employees. Ms. Van Dyke provided details about resources that 
are on the ground working to educate employers and employees 
about the opioid crisis, such as the Ohio SBDC's workshop 
called ``The Opioid Crisis in the Workplace: The Proactive Role 
Employers Can Take.'' She also discussed the direct results of 
the opioid crisis on Ohio, noting that in 2016, overdose deaths 
due to opioids increased by 39 percent and that Ohio saw the 
third largest increase in overdose deaths among the states. Ms. 
Allen testified about her business, the Ziegenfelder Company, 
and how they have worked to combat the opioid crisis in their 
community by hiring recovering addicts. She discussed how 
working with the local community is important for fostering a 
safe environment for her employees to recover and prosper.

                                 PART B

                         Subcommittee Hearings


            HEARING: ``STATE OF THE SMALL BUSINESS ECONOMY''

    On February 16, 2017, the Subcommittee on Economic Growth, 
Tax, and Capital Access of the Committee on Small Business met 
in Room 2360 of the Rayburn House Office Building for a hearing 
titled ``State of the Small Business Economy.'' The hearing 
examined current economic indicators that measure the health of 
the economy, with a specific focus on the effect of policy 
uncertainty on economic growth and entrepreneurship growth. The 
hearing also examined general concerns that small business 
owners are confronting in 2017.
    According to the Bureau of Economic Analysis, economic 
activity in 2016, as measured by gross domestic product (GDP), 
grew by just 1.6 percent. With small businesses comprising 42 
percent of the private sector payroll and 99.9 percent of all 
businesses, small businesses have the potential to be 
significant drivers of economic growth. However, barriers such 
as increasing health care costs, regulatory burdens, and an 
increasingly complex tax code have made it harder to start, 
maintain, and grow a business.
    Witnesses on the panel were: Stan Veuger, Ph.D., Resident 
Scholar, American Enterprise Institute, Washington, DC; Mr. 
Victor Hwang, Vice President, Entrepreneurship, Ewing Marion 
Kauffman Foundation, Kansas City, MO; Ms. Holly Wade, Director, 
Research and Policy Analysis, NFIB Research Foundation, 
Washington, DC; and Ms. Bob Bland, CEO and Founder, Manufacture 
NY, Brooklyn, NY.
    The panel discussed how to promote growth in the small 
business economy and the primary concerns of small businesses. 
Dr. Veuger provided an overview of the small business economy 
and discussed how policy uncertainty can dampen economic 
growth. Mr. Hwang outlined the state of entrepreneurship in the 
United States, and described the Kauffman Foundation's new Zero 
Barriers to Startup Challenge to address the entrepreneurship 
deficit. Ms. Wade used survey data of NFIB member businesses to 
show that health insurance costs, regulatory compliance costs, 
and tax complexity are three primary concerns of many small 
businesses. Finally, Ms. Bland described New York City's 
fashion industry and discussed the industry's challenges.

HEARING: ``LEARNING FROM HISTORY: IDEAS TO STRENGTHEN AND MODERNIZE THE 
                           HUBZONE PROGRAM''

    On March 2, 2017, the Subcommittee on Contracting and 
Workforce met in Room 2360 of the Rayburn House Office Building 
for a hearing titled ``Learning from History: Ideas to 
Strengthen and Modernize the HUBZone Program.'' The hearing was 
the first in a series of hearings assessing the HUBZone 
program, starting with a study of overarching themes identified 
in reports issued by the Government Accountability Office (GAO) 
and the Small Business Administration (SBA) Office of Inspector 
General (OIG) over the past twenty years.
    The HUBZone Program, authorized in 1997, was intended to 
stimulate economic development by increasing employment and 
capital investment through the use of federal contracting 
preferences to small businesses operating in economically 
distressed areas. GAO and OIG issued nine reports total 
examining the HUBZone program. Six major themes arose from 
these reports: (1) SBA continues facing technology and 
communications issues; (2) diffusion of benefits and 
underutilization of HUBZone-designated areas may undermine the 
purpose of the HUBZone program; (3) performance metrics are 
still lacking; (4) the HUBZone program has been vulnerable to 
fraud in the past; (5) SBA's certification and decertification 
processes improved while the recertification process needs 
strengthening; and (6) SBA relies on the threat of prosecution, 
site visits, and status protests to mitigate fraud.
    Witnesses on the panel were: Mr. William Shear, Director, 
Financial Markets and Community Investment, GAO, Washington DC; 
Mr. Hannibal ``Mike'' Ware, Acting Inspector General, SBA, 
Washington DC; Ms. Shirley Bailey, Co-Owner and Executive Vice 
President and Chief Operating Officer, GCC Technologies, LLC, 
Oakland, MD, testifying as Board Chair of the HUBZone 
Contractor's National Council; and Mansooreh Mollaghasemi, 
Ph.D., President and CEO, Atria Technologies, LLC, Orlando, FL.
    At the hearing, Mr. Shear discussed the evolution of the 
HUBZone Program, specifically areas of weakness identified in 
prior reports and data on the economic characteristics of 
HUBZone-designated areas. Mr. Ware testified that inaccurate 
procurement data was a top management challenge in the HUBZone 
program. He noted that federal agencies reporting their small 
business goals to SBA were receiving HUBZone small business 
goaling credit for ineligible firms, putting to question the 
amount of HUBZone dollars reported. Ms. Bailey testified that 
the HUBZone Program serves an important socioeconomic 
utilization goal and that the Program had a substantial impact 
on HUBZone communities. She also identified a number of 
proposed legislative solutions. Dr. Mollaghasemi shared her 
personal experience as a HUBZone small business owner and 
stressed the importance of increased transparency and 
expediency within the HUBZone application process.

          HEARING: ``AN OVERVIEW OF SBA'S 7(A) LOAN PROGRAM''

    On March 9, 2017, the Subcommittee on Investigations, 
Oversight, and Regulations of the Committee on Small Business 
met in Room 2360 of the Rayburn House Office Building for a 
hearing titled ``An Overview of SBA's 7(a) Loan Program.'' The 
hearing examined the United States Small Business 
Administration's (SBA) 7(a) Loan Program to ensure the 
effectiveness of the program in helping creditworthy small 
businesses obtain capital. The hearing gave Members of the 
Subcommittee the opportunity to hear directly from financial 
institutions participating in the program.
    The witnesses for the hearing were: Ms. Sonya McDonald, 
Executive Vice President/Chief Lending Officer, Randolph Brooks 
Federal Credit Union, Universal City, TX, testifying on behalf 
of the National Association of Federally-Insured Credit Unions; 
Ms. Cindy Blankenship, Vice Chairman, Bank of the West, 
Grapevine, TX, testifying on behalf of the Independent 
Community Bankers of America; Mr. Tony Wilkinson, President and 
Chief Executive Officer, National Association of Government 
Guaranteed Lenders, Washington, DC; and Mr. Edward C. Ashby 
III, President and Chief Executive Officer, Surrey Bank & 
Trust, Mount Airy, NC, testifying on behalf of the American 
Bankers Association.
    The witnesses discussed the requirements of the 7(a) Loan 
Program, along with its recent growth in terms of loan 
approvals, loan amounts and the congressionally-authorized 
lending limit. When asked about improvements that the SBA could 
make with regard to the program, Ms. McDonald highlighted an 
idea of utilizing best practices, which included publishing a 
list of unwritten rules and the importance of raising the 
credit unions' Member Business Lending Cap. Ms. Blankenship 
discussed the uptick in demand in business optimism since the 
2016 elections, along with parameters required for the ``credit 
elsewhere test.'' She also highlighted the importance of having 
a stable funding environment with regard to the 
congressionally-authorized lending limit and suggested an 
improvement can be made to the limit by switching to a two-year 
authorization level. When asked about the tools that are 
available at the Office of Credit Risk Management (OCRM) within 
SBA, Mr. Wilkinson said it is important that OCRM receive the 
appropriate funding and the appropriate staff to fulfill lender 
oversight. He mentioned that he believes the ``credit elsewhere 
test'' is clear, but legislation could potentially make it 
clearer. Mr. Wilkinson also described how there are likely 
lenders that have used the 7(a) Loan Program when conventional 
lending was available, but he described how that is where the 
role of lender oversight at SBA enters the conversation. Mr. 
Ashby discussed how his state of North Carolina has seen an 
uptick in poultry lending and that the SBA One platform has not 
fully been implemented.

 HEARING: ``CAFETERIA PLANS: A MENU OF NON-OPTIONS FOR SMALL BUSINESS 
                                OWNERS''

    On March 16, 2017, the Subcommittee on Economic Growth, 
Tax, and Capital Access of the Committee on Small Business met 
in Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Cafeteria Plans: A Menu of Non-Options for Small 
Business Owners.'' The Subcommittee met to examine why small 
business owners are not treated like larger employers in 
offering cafeteria plan benefits. The Subcommittee also 
considered the effects of this policy on small business 
employees and whether the policy should be changed.
    The witnesses for the hearing were: Ms. Jennifer Brown, 
Manager of Research, National Institute on Retirement Security, 
Washington, DC; Ms. Paula Calimafde, Chair, Small Business 
Council of America, Bethesda, MD; Ms. Elise Feldman, President, 
Feldman Benefit Services, Springfield, NJ; and Mr. Matt Tassey, 
Treasurer, National Association of Insurance and Financial 
Advisors, Portland, ME.
    Ms. Brown laid a foundation from an academic perspective, 
detailing the enactment, legislative history, and development 
of Section 125 cafeteria plans. Ms. Calimafde noted that 
cafeteria plans are not widely offered by small businesses, 
suggesting that removing the restriction on pass-through owners 
from participating in such plans would result in an increase in 
their use. She also made several other recommendations to 
improve Section 125. Ms. Feldman mentioned that her pass-
through clients routinely ask when they will be able to 
participate in their cafeteria plans. However, she also 
observed that many pass-through owners, even if allowed to 
participate, would not be able to do so based solely on the 
fact that their small size makes compliance with the non-
discrimination rules virtually impossible. Mr. Tassey focused 
his testimony on two recommendations to improve cafeteria 
plans: (1) make pass-through owners eligible to participate; 
and (2) add qualified long-term care insurance to the benefits 
available under cafeteria plans.

        HEARING: ``THE FUTURE OF AMERICA'S SMALL FAMILY FARMS''

    On March 23, 2017, the Subcommittee on Agriculture, Energy, 
and Trade of the Committee on Small Business met in Room 2360 
of the Rayburn House Office Building for a hearing titled ``The 
Future of America's Small Family Farms.'' The hearing provided 
the Subcommittee an opportunity to review the economic 
contributions of small family farms to the health of the United 
States economy. The hearing also assessed historical and 
current trends in the industry, as well as the issues small 
family farms are confronting.
    Witnesses on the panel were: John D. Lawrence, Ph.D., 
Associate Dean and Director for Extension and Outreach, College 
of Agriculture and Life Sciences, Iowa State University, Ames, 
IA; Mr. Tim White, Owner, TA White Farm LLC, Lexington, KY, 
testifying on behalf of the National Cattlemen's Beef 
Association; Ms. Sarah Rickelman, Manager, Degener-Juhl Farms, 
Hudson, IA, testifying on behalf of the Iowa Farm Bureau; and 
Mr. Chuck Conner, President and CEO, National Council of Farmer 
Cooperatives, Washington, DC.
    Small family farms remain an important component of the 
agriculture industry and make up an overwhelming number of the 
farms in the United States. They also grow a significant 
percentage of crops that are vital to the nation's food supply. 
However, with net farm income falling over the past few years, 
it has become harder than ever to make a profit as a small 
family farm. Furthermore, issues such as tax burdens, 
regulatory burdens, and difficulty exporting increase costs and 
decrease income potential.
    The panel discussed how to improve the state of small 
family farms and identified primary concerns of the industry. 
Dr. Lawrence provided an overview of the farm economy and 
mentioned the ongoing challenges for small family farms. He 
said that expanding access to markets, capital, technology, and 
information would benefit small family farms the most. Mr. 
White testified about his experience in operating a small 
cattle farm in Kentucky. He also mentioned issues affecting 
both cattle ranchers and small family farms, such as low 
commodity prices, burdensome regulations, and the estate tax. 
Ms. Rickelman also discussed the difficulty of running a small 
farm amid low commodity prices, and said a strong Farm Bill is 
needed to protect against periods of low prices. She reiterated 
the importance of trade for small family farms, and supports 
allowing farmers to be able to deduct interest expenses. 
Finally, Mr. Conner discussed important issues for farmer 
cooperatives, which include tax reform, access to international 
markets, and improved infrastructure for rural areas.

  HEARING: ``SBA'S ENTREPRENEURIAL DEVELOPMENT PROGRAMS: RESOURCES TO 
                       ASSIST SMALL BUSINESSES''

    On March 30, 2017, the Subcommittee on Contracting and 
Workforce of the Committee on Small Business met in Room 2360 
of the Rayburn House Office Building for a hearing titled 
``SBA's Entrepreneurial Development Programs: Resources to 
Assist Small Businesses.'' The hearing examined the United 
States Small Business Administration's (SBA) Entrepreneurial 
Development (ED) Programs and gave Members of the Subcommittee 
the opportunity to review the major technical assistance 
programs and to hear directly from SBA's resource partners.
    The witnesses for the hearing were: Mr. W. Kenneth Yancey, 
Jr., Chief Executive Officer, SCORE, Herndon, VA; Ms. Antonella 
Pianalto, President and Chief Executive Officer, Association of 
Women's Business Centers, Washington, DC; Mr. Charles Rowe, 
President and Chief Executive Officer, America's Small Business 
Development Centers, Burke, VA; and Mr. Joseph C. Sharpe, Jr., 
Director, The Veterans Employment & Education Division, The 
American Legion, Washington, DC.
    The witness panel provided the Subcommittee with an 
overview of the resources available to small businesses through 
SBA's ED Programs. Mr. Yancey discussed the data driven focus 
of SCORE and recent improvements SCORE has made with regard to 
client and volunteer diversity. When asked how to improve 
access to capital for women-owned businesses, Ms. Pianalto 
highlighted the importance of education and financial literacy. 
She also discussed the process of establishing a new Women's 
Business Center (WBC), which entails an initial location 
decision from SBA and then a grant proposal process. Mr. Rowe 
focused his remarks on the importance of coordination among all 
of the ED programs and he said extra attention is needed within 
rural and less populated areas. Mr. Rowe also highlighted the 
role of Small Business Development Centers (SBDCs) in disaster 
recovery. When asked about the geographic limitations of 
Veterans Business Outreach Centers (VBOCs), Mr. Sharpe 
discussed the need for enhanced public-private partnerships.

        HEARING: ``SMALL BUSINESS: THE KEY TO ECONOMIC GROWTH''

    On April 27, 2017, the Subcommittee on Economic Growth, 
Tax, and Capital Access of the Committee on Small Business met 
in Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Small Business: The Key to Economic Growth.'' The 
hearing provided the Subcommittee with an opportunity to 
further understand the causes of economic growth, the benefits 
associated with economic growth, and current limits on economic 
growth in the United States. This hearing also examined how 
small businesses are a vital catalyst for economic growth.
    Witnesses on the panel were: Robert Barro, Ph.D., Paul M. 
Warburg Professor of Economics, Harvard University, Cambridge, 
MA; Mr. Andrew Sherman, Partner, Seyfarth Shaw LLP, Washington, 
DC; Mr. Stephen Moore, Distinguished Fellow, Project for 
Economic Growth, Institute for Economic Freedom and 
Opportunity, The Heritage Foundation, Washington, DC; and Chad 
Stone, Ph.D., Chief Economist, Center on Budget and Policy 
Priorities, Washington, DC.
    The panel discussed the determinants of economic growth, 
and how small businesses play an integral part in creating 
economic growth. Dr. Barro provided a historical and 
international analysis of economic growth. He stated that the 
most vital determinants for economic growth are the regulatory 
environment, ease of doing business, and human capital. Mr. 
Sherman discussed the importance of entrepreneurs and small 
businesses to economic growth. In order to improve the success 
of entrepreneurs and small businesses, Mr. Sherman stressed the 
importance of human capital, R&D partnerships with small 
businesses and the government, reliable and fair intellectual 
property laws, and access to capital. Mr. Moore explained how 
improving GDP growth would reduce the federal deficit, reduce 
poverty, and improve schools. However, in order to spur growth, 
Mr. Moore argued that Congress needs to enact policies like tax 
reform that would encourage small businesses to flourish. Dr. 
Stone discussed the constraints on economic growth over the 
next decade.

 HEARING: ``IMPROVING THE SMALL BUSINESS INNOVATION RESEARCH AND SMALL 
                BUSINESS TECHNOLOGY TRANSFER PROGRAMS''

    On May 4, 2017, the Small Business Committee Subcommittee 
on Contracting and Workforce and the Committee on Science, 
Space, and Technology Subcommittee on Research and Technology 
met in Room 2318 of the Rayburn House Office Building for a 
joint hearing titled ``Improving the Small Business Innovation 
Research and Small Business Technology Transfer Programs.'' The 
hearing was called because the Committee on Small Business and 
the Committee on Science, Space, and Technology were interested 
in collaborating on legislation making minor adjustments and 
improvements to the Small Business Innovation Research (SBIR) 
and the Small Business Technology Transfer (STTR) Programs in 
2017. Witnesses from both the public and private sectors 
discussed potential adjustments and improvements to the 
programs.
    Witnesses on the first panel were: Mr. Joe Shepard, 
Associate Administrator, Office of Investment and Innovation, 
United States Small Business Administration, and Mr. John 
Neumann, Director, Natural Resources and Environment, United 
States Government Accountability Office. Witnesses on the 
second panel were: Mr. John Clanton, Chief Executive Officer, 
Lynntech Inc., College Station, TX; John Langford, Ph.D., 
Chairman and CEO, Aurora Flight Sciences Corporation, Manassas, 
VA; Mr. Ron Shroder, CEO and President, Frontier Technologies 
Inc., Beavercreek, OH, testifying on behalf of the Small 
Business Technology Council; Ms. Angela Alban, President and 
CEO, SIMETRI, Inc., Winter Park, FL; and Clinton Rubin, Ph.D., 
SUNY Distinguished Professor and Chair, Department of 
Biomedical Engineering, Director, Center for Biotechnology, 
Stony Brook University, Stony Brook, NY.
    Mr. Shepard began the testimony by detailing the numerous 
success stories of businesses that had their start in the SBIR 
program, such as Qualcomm, MedImmune, and iRobot and 
recommended that legislation ought to include extensions to 
several pilot programs currently maintained by the 
participating agencies such as the Administrative Funding, 
Direct to Phase II, and the Civilian Agencies Commercialization 
Pilot Program. Mr. Neumann stated that there has been 
relatively low instances of waste, fraud, and abuse within the 
SBIR and STTR programs.
    Mr. Clanton expressed support for continuation of the 
Administrative Funding and Direct to Phase II pilot programs. 
Dr. Langford stated that while his company has since graduated 
out of the SBIR program, his business would not be as 
successful as it is today with the early stage funding the SBIR 
program provides for truly innovative ideas. Mr. Shroder 
stressed the importance for our country to be world leaders in 
a strong Research and Development culture and how much the SBIR 
and STTR Programs have been such an important piece of that. 
Ms. Alban testified that the SBIR and STTR programs are ideally 
suited for creating opportunities for small businesses 
throughout our country to stimulate technological innovation 
and economic growth. Dr. Rubin testified that the National 
Institutes of Health Phase 0 pilot program has been beneficial 
to creating new small business out of the university setting 
and urged its continuation.

    HEARING: ``ALL WORK AND NO PAY: CHANGE ORDERS DELAYED FOR SMALL 
                       CONSTRUCTION CONTRACTORS''

    On May 25, 2017, the Subcommittee on Contracting and 
Workforce and Subcommittee on Investigations, Oversight and 
Regulations of the Committee on Small Business met in Room 2360 
of the Rayburn House Office Building for a joint hearing titled 
``All Work and No Pay: Change Orders Delayed for Small 
Construction Contractors.'' The hearing examined the effect of 
agency delays in the approval and payment of contract 
modifications, known as ``change orders,'' on federal 
construction contracts.
    Changes to a contract, commonly known as ``change orders,'' 
are ubiquitous on construction projects. Change orders may be 
issued unilaterally: by the government without the contractor's 
consent. Small construction contractors are increasingly 
frustrated by the slow approval and lack of payment by federal 
agencies for change order work completed. While the change 
order approval and/or payment is pending, small contractors 
must continue to perform the changed work and finance these 
efforts entirely out-of-pocket. Small contractors often lack 
the resources and working capital to sustain their businesses 
during this waiting period. Many small businesses are 
subcontractors on federal construction projects, thus are last 
to receive payment. Furthermore, federal agencies may be 
engaging in unethical negotiating strategies, forcing 
contractors to accept lower payment amounts. Federal agencies 
may be waiting until the end of a construction project to 
process and pay for change order work. They may also be 
leveraging the claims process unfairly by requiring small 
contractors initiate a claim in order to receive payment on the 
changed work completed. Unlike the government, small 
contractors do not have the time or resources to litigate 
claims for the potential benefit of being paid pennies on the 
dollar; this often results in small contractors settling with 
the agency for amounts less than owed. Because of these issues, 
small contractors may decide to leave the federal marketplace, 
which reduces competition and increases prices for the agency 
and taxpayer.
    Witnesses on the panel were: Mr. Edward DeLisle, Co-Chair, 
Federal Contracting Group, Cohen Seglias Pallas Greenhall & 
Furman PC, Philadelphia, PA; Mr. Andy Brown, Vice President, 
GlenMar Construction, Clackamas, OR, testifying as Co-Chair of 
the Small Business Committee for the Associated General 
Contractors of America; Mr. Greg Long, President and Owner, 
Long Electric Company, Napa, CA, testifying as a member of the 
National Electrical Contractors Association Northern California 
Chapter's Board of Directors; and Ms. E. Colette Nelson, Chief 
Advocacy Officer, American Subcontractors Association Inc., 
Alexandria, VA, testifying on behalf of the Construction 
Industry Procurement Coalition.
    At the hearing, Mr. DeLisle provided an overview of change 
orders, the process for submitting a change order, and major 
issues facing small businesses bringing claims against federal 
agencies. Mr. Brown stressed that for many small contractors, 
change orders are considered a ``necessary evil'' and have 
immense negative impacts on a small business's cash flow and 
project schedule. Mr. Long highlighted the cost-dispute issue, 
which is the most commonly cited reason for change order 
delays, and how that impacts payment bonds. Ms. Nelson 
testified that the federal government's rules are inadequate 
pertaining to minimum requirements on when the government must 
review and approve contractors requests for equitable 
adjustments (REAs), and in some cases agency policy is to 
routinely defer consideration of REA's to the end of a 
construction project.

          HEARING: ``A REVIEW OF SBA'S 504/CDC LOAN PROGRAM''

    On June 29, 2017, the Subcommittee on Economic Growth, Tax, 
and Capital Access of the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``A Review of SBA's 504/CDC Loan Program.'' The hearing 
provided Members of the Subcommittee with the opportunity to 
hear directly from program participants about the loan program, 
the role of Certified Development Companies (CDCs), and the 
economic development requirements that are outlined in the 
program.
    The witnesses for the hearing were: Ms. Natasha Merz, Vice 
President, Langley Federal Credit Union, Newport News, VA, 
testifying on behalf of the National Association of Federally-
Insured Credit Unions (NAFCU); Mr. Wayne Williams, Senior Vice 
President, Business Finance Group, Fairfax, VA; Ms. Barbara A. 
Vohryzek, President/Chief Executive Officer, National 
Association of Development Companies (NADCO), Washington, DC; 
and Mr. Sherwood Robbins, Managing Director, Seedcopa, Exton, 
PA.
    The witnesses discussed the details of the 504/CDC Loan 
Program and the ways in which small business owners use the 
program. Ms. Merz discussed the loan program from the lenders 
perspective and described the importance of a lender partnering 
with the right CDC. As a CDC practitioner, Mr. Williams 
discussed the program from the CDC's lens. Mr. Williams also 
described the recent refinancing policy change with the 
Subcommittee. As head of NADCO, Ms. Vohryzek provided a high-
level overview of the program. She was also given the 
opportunity to describe the fluctuating growth rate that the 
program is currently experiencing. When asked about 
improvements that can be made to the program, Mr. Robbins 
suggested increasing the awareness and marketing of the 
program.

    HEARING: ``THE PUERTO RICO OVERSIGHT, MANAGEMENT, AND ECONOMIC 
          STABILITY ACT: STATE OF SMALL BUSINESS CONTRACTING''

    On July 13, 2017, the Subcommittee on Contracting and 
Workforce and the Subcommittee on Economic Growth, Tax, and 
Capital Access of the Committee on Small Business met in Room 
2360 of the Rayburn House Office Building for a joint hearing 
titled ``The Puerto Rico Oversight, Management, and Economic 
Stability Act: State of Small Business Contracting.'' The 
Puerto Rico Oversight, Management, and Economic Stability Act 
(PROMESA) includes a provision requiring the Government 
Accountability Office (GAO) to study the application and 
utilization of the Small Business Administration's federal 
contracting preference programs in Puerto Rico. This hearing 
examined the GAO's findings, including the use of the Small 
Business Administration's (SBA) contracting programs in Puerto 
Rico and challenges Puerto Rican small businesses face in 
obtaining federal contracting opportunities.
    The witnesses for the hearing were: Mr. William Shear, 
Director of the Financial Markets and Community Investment Team 
at GAO in Washington D.C.; and Mr. Robb Wong, Associate 
Administrator of the Office of Government Contracting and 
Business Development at the SBA in Washington, D.C.
    Mr. Shear discussed the GAO report findings and highlighted 
the fact that most of the contracts won by small businesses in 
Puerto Rico were won through full and open competition, rather 
than through SBA's federal contracting programs. Mr. Wong 
stated that the SBA has many resources available to educate 
Puerto Rican small businesses on these federal contracting 
programs and will work with Congress to further discuss 
solutions to assist small businesses in Puerto Rico and 
nationwide.

    HEARING: ``21ST CENTURY MEDICINE: HOW TELEHEALTH CAN HELP RURAL 
                             COMMUNITIES''

    On July 20, 2017, the Subcommittee on Agriculture, Energy, 
and Trade and the Subcommittee on Health and Technology of the 
Committee on Small Business met in Room 2360 of the Rayburn 
House Office Building for a joint hearing titled ``21st Century 
Medicine: How Telehealth Can Help Rural Communities.'' The 
hearing examined the current utilization of telehealth services 
and how expansion of telehealth services could benefit small 
businesses and rural communities.
    The witnesses for the hearing were: Ms. A. Nicole Clowers, 
Managing Director, Health Care Team, United States Government 
Accountability Office, Washington, DC; Ms. Barb Johnston, Chief 
Executive Officer and Co-Founder, HealthLinkNow, Sacramento, 
CA; Mr. Michael Adcock, Administrator, Center for Telehealth, 
University of Mississippi Medical Center, Jackson, MS; and 
David Schmitz, Ph.D., President, National Rural Health 
Association, Washington, DC.
    Telehealth is the use of online, video, and telephone 
communication to deliver health care services that either 
replace or supplement existing health care services. While 
telehealth can benefit many stakeholders, this hearing focused 
on how expanding telehealth can benefit small businesses and 
rural communities. Telehealth can benefit small physician 
practices and other local small businesses. Telehealth allows 
patients to access medical care without traveling long 
distances. Not only does this allow rural physicians to 
increase patient traffic, but other small businesses benefit 
from patients staying nearby and keeping dollars in the 
community. Telehealth may attract physicians to relocate to 
rural areas. The ability to expand their reach to patients 
outside of their community may lead physicians to consider 
opening or relocating their practices in rural areas. 
Telehealth may also offer an individual physician more 
flexibility with operating his or her small business. Corporate 
telehealth programs help small businesses lower costs and 
maintain productivity. Some employers are offering telehealth 
services within the workplace as a convenient option for 
employees seeking medical care. Keeping employees well can 
reduce health care spending and increase or maintain 
productivity.
    The federal government uses telehealth in the Medicare, 
Medicaid, the Department of Defense (DOD), and Veterans Affairs 
(VA) health care programs. The services available vary and a 
low percentage of these beneficiaries currently use telehealth. 
Stakeholders cite Medicare's inadequate payment and coverage 
restrictions as barriers to low utilization of telehealth. 
Medicaid, where covered services are determined by the state, 
and DOD restrictions are less severe, but utilization is still 
low. VA beneficiaries, including many in rural areas, use 
telehealth services the most. A majority of states have parity 
laws that require commercial health insurance companies to 
cover telehealth services the same as in-person services. Many 
stakeholders believe that commercial insurers are increasing 
their coverage of telehealth services due to patient demand and 
cost reductions.
    CMS has granted waivers to several models and 
demonstrations that have the potential to expand the use of 
telehealth. Additionally, bipartisan legislation has been 
introduced that, if enacted, would expand the use of telehealth 
for Medicare beneficiaries by expanding the covered services 
and the locations they can be offered and how providers are 
reimbursed.

         HEARING: ``EXAMINING THE SMALL BUSINESS LABOR MARKET''

    On September 7, 2017, the Subcommittee on Economic Growth, 
Tax, and Capital Access of the Committee on Small Business met 
in Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Examining the Small Business Labor Market.'' The 
hearing provided Committee Members with an opportunity to 
understand recent trends in the labor market and how they 
affect small businesses. This healing also examined how current 
challenges locating and retaining employees with the proper 
skills affect the ability of small businesses to operate and 
expand in order to grow the American economy.
    Witnesses on the panel were: Dr. Michael Farren, Research 
Fellow, Mercatus Center, George Mason University, Arlington, 
VA; Mr. Bruce Seilhammer, Electrical Construction Group 
Manager, SECCO, Inc., Camp Hill, PA, testifying on behalf of 
the Independent Electrical Contractors, Inc. (IEC); Mr. Carlos 
Castro, President, Todos, Inc., Woodbridge, VA, testifying on 
behalf of the National Grocers Association; and Mr. Gardner 
Carrick, Vice President of Strategic Initiatives, The 
Manufacturing Institute, Washington, DC.
    The panel discussed the current skills gap in the labor 
market and identified potential solutions to reduce the amount 
of job vacancies in the United States. Dr. Farren analyzed the 
size of the skills gap for the labor market and suggested 
solutions such as tax incentives for employee training to 
improve the skill set of American workers. Mr. Seilhammer noted 
that although the median salary for an electrician was $52,720, 
finding candidates to become electricians is harder than ever. 
Mr. Castro mentioned several regulations that impede small 
businesses' ability to find, hire, and retain employees, 
including the health care insurance mandate and the United 
States Department of Labor's joint employer standard. Mr. 
Carrick outlined the challenges small manufacturers have in 
finding employees. Based on demographic trends as well as 
growth in the industry, he estimated that there will be roughly 
2 million vacancies just in manufacturing by 2025.

  HEARING: ``TECH TALKS: HOW SBA ENTREPRENEURIAL DEVELOPMENT PROGRAMS 
                     HAVE EVOLVED WITH TECHNOLOGY''

    On September 14, 2017, the Subcommittee on Health and 
Technology met in Room 2360 of the Rayburn House Office 
Building for a hearing titled, ``Tech Talks: How SBA 
Entrepreneurial Development Programs Have Evolved with 
Technology.'' This hearing provided Committee Members with the 
opportunity to learn about the ways the Small Business 
Administration's entrepreneurial development training programs 
are adopting new technology.
    Witnesses on the panel were: Ms. Marsha Bailey, Founder and 
CEO, Women's Economic Ventures, Santa Barbara, CA, testifying 
on behalf of the Association of Women's Business Centers; Mr. 
Scott Daughetiy, State Director, North Carolina Small Business 
Technology Development Centers, Raleigh, NC, testifying on 
behalf of America's SBDC; Ms. Bridget Weston Pollack, Vice 
President for Marketing and Communications, SCORE Association, 
Herndon, VA; and Mr. Brenton Peacock, Associate Director, 
Veterans Business Outreach Center, Gulf Coast State College, 
Panama City, FL.
    Chairman Radewagen emphasized the importance of small 
businesses adopting technology to remain competitive in the 
modern marketplace. Ms. Bailey briefly spoke to the overall 
success of Women's Business Centers (WBC) before highlighting 
the basic technological programs that are offered at most 
centers across the country. She recognized the benefits that 
distance learning can offer to women entrepreneurs without a 
geographically accessible WBC.
    Mr. Daugherty said he believes Small Business Development 
Centers (SBDC) can grow their existing technological training 
programs by offering increased counseling on the pressing 
issues of cybersecurity and emerging high cost online lending 
sites. Additionally, he discussed the successful information 
sharing strategies employed by SBDCs and the benefits of 
America's SBDC peer accreditation process. Ms. Weston Pollack 
discussed the SCORE Associations' extensive use of technology, 
both administratively and programmatically. This combination of 
technology in both aspects of the SCORE Association has allowed 
for the expansive distance learning resources available through 
the national association's website and the communications based 
technological resources available to SCORE's 10,000+ volunteer 
mentors. Mr. Peacock highlighted the personalized approach 
Veterans Business Outreach Centers provide to their veteran 
clients, taking the skills learned in combat and translating 
those to successful business strategies.

   HEARING: ``HIGH-TECH AGRICULTURE: SMALL FIRMS ON THE FRONTIER OF 
                             AGRIBUSINESS''

    On October 5, 2017, the Subcommittee on Agriculture, 
Energy, and Trade met in Room 2360 of the Rayburn House Office 
Building for a hearing titled, ``High-Tech Agriculture: Small 
Firms on the Frontier of Agribusiness.'' The hearing examined 
the rapid development of the agricultural technology (agtech) 
industry, and prioritized the role of small businesses and 
small family farms.
    Private sector participation in agtech is booming, largely 
because public investment in agriculture R&D has declined while 
private sector access to technological innovation and 
commercialization has increased. The most important player in 
the agtech industry, the farmer, is the most likely to be 
ignored as these new technologies are developed. As a result, 
their technology adoption has remained low.
    Witnesses on the panel were: Lisa Benson, Ph.D., Director, 
Rural Development, American Farm Bureau Federation (Farm 
Bureau), Washington, DC; Mr. Kevin Heikes, Co-Founder and Chief 
Operating Officer, IN10T, Lenexa, KS; Mark Kester, Ph.D., Chief 
Scientific Officer, AgroSpheres, LLC, Charlottesville, VA; and 
Mr. Joe Guthrie, Senior Instructor, Agricultural Technology 
Program, College of Agriculture and Life Sciences, Virginia 
Polytechnic Institute and State University, Blacksburg, VA.
    The witnesses highlighted familiar small business themes 
operating within the agtech industry, including: access to 
capital, intellectual property, regulatory burden, the rural-
urban divide, data security, trade barriers, labor shortages, 
and tax complexity. Dr. Benson said agtech firms dominate the 
Farm Bureau's rural entrepreneurial development programs. The 
Farm Bureau, in response to the need for capital, held an 
Agriculture Investment Summit for entrepreneurs and potential 
investors. Mr. Heikes addressed the need for collaboration 
among agtech stakeholders. His company links farms and 
agribusinesses interested in precision technologies. According 
to Dr. Kester, linkages with local farmers, as well as access 
to startup resources, are keys to AgroSpheres' success. Mr. 
Guthrie provided an overview of precision agriculture, which 
includes technologies for capturing, aggregating, and analyzing 
data to optimize farm management.

         HEARING: ``FOSTERING WOMEN'S ENTREPRENEURIAL SUCCESS''

    On October 12, 2017, the Subcommittee on Health and 
Technology met in Room 2360 of the Rayburn House Office 
Building for a hearing titled ``Fostering Women's 
Entrepreneurial Success.'' The hearing examined the current 
state of women's entrepreneurship in the United States, while 
highlighting both the challenges women entrepreneurs experience 
and the existing resources available to support women-owned 
small businesses.
    Witnesses on our panel were: Ms. Janice Green, President 
and CEO, Jancare Private Health Services, Inc., Fishkill, NY; 
Ms. Antonella Pianalto, President and CEO, Association of 
Women's Business Centers, Washington, DC; Ms. Hester Clark, 
President, Hester Group, Jacksonville, FL; and Ms. Jeannette 
King, President and CEO, Strategic Resolution Experts, Inc., 
Martinsburg, WV.
    Opening the hearing, Chairman Radewagen highlighted the 
immense growth women-owned businesses have experienced over the 
last decade, while acknowledging women entrepreneurs' continued 
challenge of accessing adequate funding. Ms. Green shared her 
path to entrepreneurship, emphasizing the importance of the 
resources available through her local Women's Business Center, 
the Women Enterprise Development Center, Inc. Additionally, Ms. 
Green noted the value of increased access to mentorship and 
access to capital for developing women-owned small businesses. 
Ms. Pianalto discussed the importance of Women's Business 
Centers in providing their communities with the resources women 
entrepreneurs' need, while noting the continued effort required 
to increase access to capital. Ms. Clark described her business 
experience, starting as an entrepreneur of necessity through 
growing her business with the help of a number of SBA programs, 
including WBCs, SBDCs, and SCORE. Sharing a personal 
entrepreneurship experience, Ms. King emphasized both the 
positive experiences and the challenges she faced while growing 
her business with the help of the SBA. Ms. King focused on the 
exceptional support she received from her local SBA office, 
while acknowledging the difficulties that come with SBA's small 
business certification paperwork.

   HEARING: ``OVERSIGHT IMPROVEMENTS NEEDED: SBA OIG'S REVIEW OF THE 
                          MICROLOAN PROGRAM''

    On October 12, 2017, the Subcommittees on Investigations, 
Oversight, and Regulations and Economic Growth, Tax, and 
Capital Access met in Room 2360 of the Rayburn House Office 
Building for the purpose of examining the Small Business 
Administration (SBA) Office of Inspector General's (OIG) audit 
report on the SBA Microloan Program. On September 28, 2017, the 
SBA OIG released an audit of the microloan program. The OIG 
sought to determine: (1) whether SBA effectively implemented 
actions--specifically OIG's recommendations from the 2009 audit 
report--to improve program oversight; and (2) the extent that 
SBA oversight was sufficient to measure program integrity. The 
OIG determined SBA fell short on both counts.
    The witnesses for the hearing were: Mr. Hannibal ``Mike'' 
Ware, Acting Inspector General, Office of Inspector General, 
Small Business Administration, Washington, DC; and Mr. William 
Manger, Associate Administrator, Office of Capital Access, 
Small Business Administration, Washington, DC.
    Mr. Ware testified that SBA did not effectively implement 
all of the OIG's prior recommendations and that SBA did not 
conduct adequate program oversight to measure program 
performance and ensure program integrity. The OIG examined 52 
microloan files--a statistical sample--and found several 
discrepancies, errors, and/or insufficient data pursuant to 
SBA's requirements. Mr. Ware stated that the internal control 
weaknesses were due to SBA not having an overall site visit 
plan, an adequate information system, available funding for 
system improvements, or clear standard operating procedures. He 
also said SBA management is focused on output based performance 
measures instead of outcome measures.
    To help it focus on output-based performance measures, Mr. 
Ware stated that SBA needs to improve its IT system so it can 
make program wide-type decisions. In fact, he said the OIG was 
surprised that technical capabilities were not in place to 
measure performance. After the OIG's 2009 audit, SBA had a 
contract to make the necessary improvements and provided 
screenshots to the OIG. Mr. Manger testified that SBA is 
funding an evaluation to identify the best system to capture 
all of the information that it needs.
    Mr. Ware also testified that the intermediaries did not 
have sufficient documentation to support that it originated and 
closed 85 percent of the loans in accordance with SBA's 
requirements. As a result, SBA's ability to validate microloan 
data, conduct analyses across multiple programs and systems, 
and capture outcome-based measures was impaired.
    Mr. Ware offered four recommendations to SBA to improve 
SBA's oversight of the Microloan program. Mr. Manger agreed 
with the OIG's recommendations. He said that he recognized that 
he needs to drive those changes home, and views the OIG's 
report as a road map of how to strengthen the program.

  HEARING: ``GAO AUDIT REVEALS HALF-MEASURES TAKEN BY SMALL BUSINESS 
                              ADVOCATES''

    On October 25, 2017, the Subcommittee on Contracting and 
Workforce of the Committee on Small Business met in Room 2360 
of the Rayburn House Office Building for a hearing titled ``GAO 
Audit Reveals Half-Measures Taken by Small Business 
Advocates.'' This hearing examined the results of a 
comprehensive audit conducted by the Government Accountability 
Office (GAO) on the Offices of Small and Disadvantaged Business 
Utilization's (OSDBU) compliance with select Small Business Act 
section 15(k) requirements. GAO assessed 24 federal agencies, 
civilian and military, and found varying levels of 
noncompliance. These section 15(k) requirements are critical to 
ensuring OSDBUs can effectively advocate for small businesses 
in the federal contracting arena. The Committee examined 
requirements that indicated higher levels of noncompliance and 
looked at the differences between larger and smaller 
contracting agencies abilities to meet their statutory 
responsibilities. The Committee also explored GAO's findings 
regarding its review of the results of the Small Business 
Procurement Advisory Council's (SBPAC) annual review of OSDBU 
compliance.
    The witnesses for the hearing were: Mr. William Shear, 
Director of Financial Markets and Community Investment, 
Government Accountability Office, Washington, DC; Mr. Robb 
Wong, Associate Administrator, Office of Government Contracting 
and Business Development, Small Business Administration, 
Washington, DC; and Mr. Kevin Boshears, Director, Office of 
Small and Disadvantaged Business Utilization, Department of 
Homeland Security, Washington, DC.
    Mr. Shear discussed the GAO report findings and highlighted 
the fact that OSDBU noncompliance with any of the section 15(k) 
requirements is noteworthy and further oversight action is 
needed to ensure agencies strive to comply. Mr. Wong stated 
that while the SBA leads the SBPAC, it views its role as a 
collaborator, helping the OSDBUs share best practices and 
encouraging compliance with the section 15(k) requirements. Mr. 
Boshears shared examples of the importance of the OSDBU at DHS 
and his role in relation to other senior-level procurement 
officials and agency leaders, to ensure that small businesses 
are given the maximum opportunities to contract with the 
Department of Homeland Security.

    HEARING: ``FINANCING THROUGH FINTECH: ONLINE LENDING'S ROLE IN 
               IMPROVING SMALL BUSINESS CAPITAL ACCESS''

    On October 26, 2017, the Subcommittee on Economic Growth, 
Tax, and Capital Access of the Committee on Small Business met 
in Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Financing Through Fintech: Online Lending's Role in 
Improving Small Business Capital Access.'' The hearing provided 
Subcommittee Members with an opportunity to examine recent 
trends in how small businesses obtain capital, the different 
business models in the industry, and how online lending fits 
into the overall lending landscape.
    Witnesses on the panel were: Mr. William Phelan, President 
and Co-Founder, PayNet, Inc., Skokie, IL; Ms. Katherine Fisher, 
Partner, Hudson Cook, Hanover, MD; and Mr. Trevor Dryer, CEO, 
Mirador, Portland, OR.
    The panel discussed the scale and scope of the online 
lending industry and how the industry helps improve small 
business access to capital. Mr. Phelan mentioned that the 
industry is partly a result of the credit gap that exists 
because of burdensome regulations on traditional financial 
institutions. He expects the industry to grow by 47 percent by 
2020, in large part because online lenders have excelled at 
lowering the cost of credit applications to small businesses. 
Ms. Fisher outlined the landscape of financing options 
available to small businesses, mentioning the difference 
between traditional lending, fintech lending, and factoring. 
She also discussed how regulations currently in place are 
sufficient to protect small businesses. Mr. Dryer explained how 
technology can reduce search costs for both borrowers and 
lenders in order to bridge small business credit.

 HEARING: ``OPERATING OR RULEMAKING? A REVIEW OF SBA'S OPAQUE STANDARD 
                     OPERATING PROCEDURE PROCESS''

    On November 2, 2017, the Committee on Small Business 
Subcommittee on Investigations, Oversight, and Regulations met 
in Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Operating or Rulemaking? A Review of SBA's Opaque 
Standard Operating Procedure Process.'' The hearing examined 
the Small Business Administration's (SBA) standard operating 
procedures (SOP) process.
    The witness for the hearing was: Mr. Joseph Loddo, Chief 
Operating Officer, Small Business Administration, Washington, 
DC.
    In his testimony, Mr. Loddo stated that SOPs are used to 
issue agency policy, the procedures for carrying out agency 
policy, and the assignment of responsibility for duties. He 
also stated that SOPs are official written communications that 
initiate or govern action, conduct procedure or policy, or 
relay information to multiple parties, both inside or outside 
SBA. As essential guiding documents at SBA, SOPs serve as the 
policies and procedures for both customer facing and internal 
operations, and they all are approved and signed by the 
Administrator.
    Mr. Loddo also discussed a FY2015 Government Accountability 
Office (GAO) report that recommended SBA set time frames for 
periodically updating and reviewing SOPs. GAO also found that a 
number of SOPs were outdated and needed to be revised. Mr. 
Loddo testified that SBA program offices have undertaken a 
complete review of all SOPs and ensured that all would be 
updated in a timely fashion.

      HEARING: ``INVESTING IN SMALL BUSINESSES: THE SBIC PROGRAM''

    On November 7, 2017, the Subcommittee on Agriculture, 
Energy, and Trade of the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a heating 
titled ``Investing in Small Businesses: The SBIC Program.'' The 
hearing examined the United States Small Business 
Administration's (SBA) Small Business Investment Company (SBIC) 
Program and provided Members of the Subcommittee an opportunity 
to hear directly from program participants on how it impacts 
small businesses in communities around the nation. Created in 
the 1958 Small Business Investment Act, the SBIC Program 
utilizes a private equity financing model to increase the 
availability of long-term capital. SBICs are for-profit 
enterprises that manage investment funds, but are licensed and 
regulated by the SBA. Unique to the program, SBICs invest in 
small businesses by leveraging private dollars with federal 
dollars through a multistage process. SBICs do not directly 
borrow federal money; rather, they raise private capital and 
then apply for an SBIC license, which allows them to leverage 
federal government funds.
    The witnesses for the hearing were: Mr. Brett Palmer, 
President, Small Business Investor Alliance (SBIA), Washington, 
DC; Mr. Thies Kolln, Partner, AAVIN Private Equity, Cedar 
Rapids, IA; Mr. Michael Painter, Managing Partner, Plexus 
Capital, Raleigh NC; and Mr. Mark Walsh, Managing Director, 
Ruxton Ventures, Chevy Chase, MD.
    The private sector witness panel discussed the details of 
the SBIC Program and how SBA oversees and licenses individual 
SBICs. As head of the SBIA, the leading SBIC trade association, 
Mr. Palmer provided a high-level overview of the program. As a 
member of an SBIC in Cedar Rapids, Iowa, Mr. Kolln spoke 
extensively about the rural/urban divide that is apparent in 
private equity and the SBIC Program. Mr. Painter spoke about 
the role SBA plays in the program and its intended regulatory 
authority. As a former Associate Administrator in charge of 
SBA's SBIC Program during the Obama administration, Mr. Walsh 
shared how SBA's licensing process could be enhanced. He also 
discussed the paperwork burden associated with the program.

  HEARING: ``BRIDGING THE ENTREPRENEURIAL GAP: ADDRESSING BARRIERS TO 
                 SMALL BUSINESS FORMATION AND GROWTH''

    On December 11, 2017, the Subcommittee on Agriculture, 
Energy, and Trade of the Committee on Small Business met in 
Room 209 of the Village of Deerfield Hall, 850 Waukegan Road, 
Deerfield, IL for a field hearing titled ``Bridging the 
Entrepreneurial Gap: Addressing Barriers to Small Business 
Formation and Growth.'' This hearing examined federal 
regulations that inhibit entrepreneurs and provided 
subcommittee Members with an opportunity to learn about the 
current barriers to entrepreneurship. It also addressed 
potential solutions to these challenges and methods utilized by 
entrepreneurs to achieve prosperity, such as capitalizing on 
emerging industries and fostering innovation.
    Witnesses on the panel were: Mr. Steven Whittington, 
Founder and Chief Executive Officer, LifeWorking Enterprise, 
LLC, Lake Forest, IL; Ms. Meg Barnhart, Founder and Co-Creator, 
The Zen of Slow Cooking, Lake Forest, IL; Mr. David Borris, 
Owner, Hel's Kitchen Catering, Northbrook, IL; and Ms. Cheryl 
Besenjak, Partner, Grow Well Farms, LLC, Hoffman Estates, IL.
    The panel discussed starting their businesses and some of 
the obstacles to expansion. Mr. Whittington testified about 
starting LifeWorking Coworking, a shared community workplace 
venue. To improve business conditions for small businesses and 
entrepreneurs, Mr. Whittington supports minimizing regulatory 
burdens, enhancing public-private partnerships, and improving 
avenues for small businesses to obtain capital. Ms. Barnhart 
discussed taking her passion for crockpot cooking and making a 
business selling crockpot spice blends. However, she explained 
that compliance with FDA labeling regulations can be expensive 
and burdensome when bringing new products to the market. Mr. 
Borris shared his story as a homemade food store owner for over 
30 years, and testified that increasing consumer demand is his 
greatest hurdle. Ms. Besenjak said that while she has been able 
to receive grants from local large businesses for her indoor 
farming business, she believes resources from the Small 
Business Administration and the United States Department of 
Agriculture are too intimidating for a small business owner to 
navigate.

HEARING: ``ENGAGING ENERGY: SMALL BUSINESS RESOURCES AT THE DEPARTMENT 
                              OF ENERGY''

    On January 18, 2018, the Subcommittee on Agriculture, 
Energy, and Trade met in Room 2360 of the Rayburn House Office 
Building for a hearing titled ``Engaging Energy: Small Business 
Resources at the Department of Energy.'' The subcommittee 
examined the resources available to small businesses in the 
energy sector through the Department of Energy (DOE). The 
hearing analyzed the degree to which these programs are 
effective at minimizing confusion regarding participation in 
the federal contracting process and department-specific small 
business programs.
    The witness was Mr. Charles R. Smith, Director, Office of 
Small and Disadvantaged Business Utilization, United States 
Department of Energy, Washington, DC.
    Subcommittee Chairman Rod Blum highlighted the importance 
of small businesses competing in the DOE's federal contracting 
process and the energy industry overall. Director Smith also 
discussed a number of Department programs designed to assist 
small businesses in the energy industry with development and 
commercialization issues, including the Office of Energy 
Efficiency and Renewable Energy's Small Business Vouchers 
program and the Office of Nuclear Energy's Gateway for 
Accelerated Innovation in Nuclear program. Additionally, 
Director Smith explained DOE's federal contracting process, 
DOE's Office of Small and Disadvantaged Business Utilization's 
(OSDBU) resources that are available to existing or potential 
federal contractors, and the Department's current prime small 
business contracting goals. Chairman Blum said he is concerned 
that the DOE is currently well under their small business 
subcategory contracting goals and questioned Director Smith 
about the OSDBU's plan to address this deficiency. He requested 
that the Director provide that plan to the Committee within 60 
days.

 HEARING: ``RESTORING RURAL AMERICA: HOW AGRITECH IS REVITALIZING THE 
                              HEARTLAND''

    On February 15, 2018, the Subcommittee on Agriculture, 
Energy, and Trade of the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled, ``Restoring Rural America: How Agritech is Revitalizing 
the Heartland.'' The hearing continued the Committee's 
examination of the rapidly developing agricultural technology 
(agritech) industry In October 2017, the Subcommittee hearing 
titled, ``High-Tech Agriculture: Small Firms on the Frontier of 
Agribusiness,'' highlighted the role of small businesses and 
the perspective of small family farmers. At this hearing, 
Subcommittee Members heard from institutions driving agritech 
entrepreneurship and innovation activity, which has spurred 
rural revitalization.
    On April 25, 2017 President Trump issued Executive Order 
13790, Promoting Agriculture and Rural Prosperity in America, 
which established the Interagency Task Force on Agriculture and 
Rural Prosperity. There are a variety of agritech industry 
development initiatives that can serve as models for the Task 
Force. Cities, states, and regions are developing business-
friendly environments tailored to attract and retain the 
agritech industry as a catalyst for community revitalization. 
Agritech initiatives have emerged in traditional agricultural 
areas such as Des Moines, Cedar Rapids, St. Louis, Durham, 
Fargo, Memphis, and Salinas. The heartland has the ingredients 
for technological innovation and prosperous communities, and it 
is now focused on offering resources to support entrepreneurial 
development in the region.
    Witnesses on the panel were: Mr. Kevin Kimle, Director, 
Agricultural Entrepreneurship Initiative, Iowa State 
University, Ames, IA; Mr. Sam J. Fiorello, Chief Operating 
Officer, Donald Danforth Plant Science Center, St. Louis, MO; 
Mr. Pete Nelson, President, AgLaunch, and Vice President, Ag 
Innovation, Memphis Bioworks Foundation, Memphis, TN; and 
Michael Fernandez, Ph.D., Senior Fellow, Food Institute, George 
Washington University, Washington, DC.
    The panel discussed how diverse stakeholders in the 
agritech industry are working together to attract startup 
activity to the heartland. Mr. Kimle explained how his program, 
the Agricultural Entrepreneurship Initiative, capitalize on the 
research and development capacity of the ISU's Research Park to 
train and retain graduates, enhance partnerships with industry 
leaders, and attract talent to the area. Similarly, Mr. 
Fiorello highlighted the Danforth Center's role in reversing 
brain drain, attracting investment, and improving local 
farmers' adoption of new technologies. Mr. Nelson described how 
his team at Memphis Bioworks has implemented agritech 
development efforts on a much larger scale in the five state 
Delta Region. Mr. Fernandez, the minority witness, echoed the 
rest of the panel about the industry driving rural 
revitalization, and expressed the need for speedy regulatory 
reforms to match rapid innovation.
    Chairman Blum's questions focused on funding opportunities 
for agritech startups in the Midwest, and the panel explained 
that regional or industry specific venture firms would have a 
greater impact than traditional technology venture firms that 
are not familiar with the agriculture world. Rep. Schneider and 
Rep. Radewagen asked about broadband and telecommunications 
access, and the panel agreed that broadband access is the 
keystone of rural revitalization. Rep. Curtis mentioned the 
need for rural broadband within federal infrastructure 
permitting reform. Rep. King and Rep. Comer stated the 
importance of agricultural strength in their districts and 
discussed the variety of impacts the agritech industry has made 
in their communities.

 HEARING: ``OCCUPATIONAL HAZARDS: HOW EXCESSIVE LICENSING HURTS SMALL 
                               BUSINESS''

    On February 27, 2018 the Subcommittee on Economic Growth, 
Tax, and Capital Access of the Committee on Small Business met 
in Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Occupational Hazards: How Excessive Licensing Hurts 
Small Business.'' This hearing examined how easing occupational 
licensing barriers could reduce workforce gaps and regulatory 
costs for small businesses.
    Witnesses on the panel were: Mr. C. Jarrett Dieterle, 
Senior Fellow, R Street Institute, Washington, DC; Mr. Keith 
Hall, President and Chief Executive Officer, National 
Association for the Self-Employed, Annapolis Junction, MD; Mr. 
Frank Zona, Owner, Zona Salons, Norwell, MA, testifying on 
behalf of the Professional Beauty Association; and Morris 
Kleiner, Ph.D., Professor, Humphrey School of Public Affairs, 
University of Minnesota, Minneapolis, MN.
    The panel outlined how occupational licensing affects small 
businesses in a variety of industries and gave examples of ways 
the federal government can help to alleviate this burden. Mr. 
Dieterle explained how H.R. 6312, Alternatives to Licensing 
that Lower Obstacles to Work Act of 2016, would provide a model 
for states to follow that would decrease licensing burdens. He 
also stated that H.R. 3446, Restoring Board Immunity Act of 
2017, would provide incentives to state boards to review 
licensing requirements. Mr. Hall discussed how excessive 
licensing affects self-employed businesses. Specifically, he 
stated that in a snapshot poll of his association's membership, 
68 percent of business owners report that licensing hinders 
their ability to operate their small business. Mr. Zona 
explained how licensing affects his small salon, and how there 
is a difficult balance that needs to be struck between finding 
workers during periods of low unemployment, and ensuring that 
workers have the proper training and experience. Dr. Kleiner 
shared many of the negative effects of occupational licensing, 
such as higher prices and job vacancies. He also provided 
evidence of how licensing barriers lead to decreased interstate 
mobility.

  HEARING: ``DISCONNECTED: RURAL BROADBAND AND THE BUSINESS CASE FOR 
                            SMALL CARRIERS''

    On March 6, 2018, the Subcommittees on Health and 
Technology, and Agriculture, Energy, and Trade of the Committee 
on Small Business met in Room 2360 of the Rayburn House Office 
Building for a hearing titled ``Disconnected: Rural Broadband 
and the Business Case for Small Carriers.'' This hearing 
examined the disparities between large, nationwide carriers and 
small, rural carriers that contribute to the urban and rural 
digital divide. Rural communities depend on small carriers to 
provide internet and telecommunications service, where 
nationwide providers may choose not to deploy broadband, or 
provide inadequate service. Deploying broadband in these high-
cost areas requires a significant investment in capital, time, 
and resources. The cost of investment, coupled with challenges 
unique to small, rural carriers in offsetting costs, creates 
barriers to competition and sustainability for small and rural 
carriers in the mobile wireless marketplace. This hearing 
identified challenges inherent in the current regulatory and 
operational scheme that limit the ability of small carriers to 
deploy broadband in rural America.
    The witnesses for the hearing were: Ms. Erin Fitzgerald, 
Regulatory Counsel, Rural Wireless Association Inc., 
Washington, DC.; Mr. Tim Donovan, Senior Vice President of 
Legislative Affairs, Competitive Carriers Association, 
Washington, DC.; Mr. Paul Carliner, Co-Founder, Bloosurf, LLC., 
Salisbury, MD.; and Mr. Denick Owens, Vice President of 
Government Affairs, Western Telecommunications Alliance, 
Washington, DC.
    Ms. Fitzgerald highlighted the difficulty small carriers 
face obtaining licenses for spectrum when the geographical area 
of the license is too large and therefore unattainable or 
unmaintainable for small caniers. Mr. Donovan spoke about the 
need to ensure the Universal Service Fund is fully supported 
and said it is crucial that funding is stable since these 
resources play a critical role helping small carriers offset 
the high cost of broadband deployment in rural areas. Mr. 
Carliner discussed how some of the financial eligibility 
requirements the Federal Communications Commission (FCC) 
imposes can be overly restrictive for small providers. Mr. 
Owens expressed concerns that repmting requirements imposed by 
the FCC can be disproportionately burdensome for small caniers 
who must expend valuable time and limited capital in order to 
remain compliant.

 HEARING: ``WORKFORCE DEVELOPMENT: ADVANCING APPRENTICESHIPS FOR SMALL 
                               BUSINESS''

    On Tuesday, March 20, 2018 at 2:00 p.m., the Committee on 
Small Business Subcommittee on Contracting and Workforce met in 
Room 2360 of the Raybum House Office Building to examine small 
business participation in apprenticeship programs. This hearing 
continued the Committee's exploration of strategies to mitigate 
small business workforce challenges caused by the skills gap. 
This hearing examined apprenticeship initiatives, specifically 
the Department of Labor (DOL) Registered Apprenticeship (RA) 
Program, which combines on-the-job learning and related 
technical instruction.
    The growing cost of higher education, coupled with lost 
revenue caused by the skills gap, has increased demand for 
apprenticeships from both workforce and industry. Industries 
with the most active apprenticeships are: construction, 
military, public administration, manufactuting, and 
transportation. In 2017, the Department of Labor reported 
533,607 active Registered Apprentices and 22,488 active RA 
programs.
    On February 15, 2017, President Trump issued Executive 
Order (EO) 13801, ``Expanding Apprenticeships in America.'' The 
EO called for federal agencies to promote apprenticeships, 
review existing workforce development programs, and better 
integrate industry needs. Specific directives included: 
establishment of the Task Force on Apprenticeship Expansion; 
cross-agency promotion and expanded opportunities for target 
populations and occupations; and official recognition for 
industry-recognized programs verified by third parties.
    Witnesses on the panel were: Ms. Tammy Simmons, Vice 
President, Human Resources and Marketing, Machine Specialties, 
Inc., Whitsett, NC; Mr. Jeffrey Forrest, Vice President, 
Economic and Workforce Development, College of the Canyons, 
Santa Clarita, CA; Ms. Jeannine Kunz, Vice President, Tooling 
U-SME, Cleveland, OH; and Mr. Jeff Mazur, Executive Director, 
LaunchCode, St. Louis, MO.
    The panel testified about small business participation in 
the RA system and highlighted their role in administering 
programs and collaborating with resource partners. Ms. Simmons 
described her journey from apprenticeship skeptic to enthusiast 
due to the positive impact apprentices have made on her 
family's small manufacturing finn. As a regional workforce 
development leader, Mr. Forrest explained the obstacles small 
businesses face in recruiting and training employees and the 
solutions available within the RA system. Ms. Kunz echoed many 
of the observations presented by Mr. Forrest, and provided 
greater detail on how small firms have utilized RA within the 
manufacturing industry. Mr. Mazur explained how the software 
industry has transformed the traditional skilled trades RA 
model to meet the needs of technology startups.
    Chairman Knight, Ranking Member Murphy, and SBC Chairman 
Chabot probed the social biases that discourage students from 
pursuing opportunities in the skilled trades. Witnesses 
recommended outreach in schools, especially elementary and 
middle schools, to show students a variety of industries, 
skills, and employment pathways. From that foundation, the 
witnesses supported outreach initiatives, such as industry days 
and business visits, for older students that are looking for a 
profession that is high tech, well-respected, and high paying. 
Each witness stressed the importance of strong patinerships not 
only to implement effective RA programs but also encourage 
greater small business participation.

 HEARING: ``COMMUNITY SUPPORT: ENTREPRENEURIAL DEVELOPMENT AND BEYOND''

    On Thursday, April 12, 2018 at 11:00 A.M., the Committee on 
Small Business Subcommittee on Investigations, Oversight, and 
Regulations met in Room 2360 of the Rayburn House Office 
Building for the purpose of examining the role small businesses 
play in creating thriving communities. The hearing also 
highlighted the ways in which community support is impmiant to 
the success of small businesses. The discussion focused on 
existing resources available to support the relationship 
between small businesses and communities, and explored areas 
for resource expansion.
    The witnesses for the hearing were: Mr. Ara Bagdasarian, 
CEO, Omnilert LLC, Leesburg, VA, testifying on behalf of 
America's SBDC; Mr. Derrick Braziel, Founding Partner and 
Managing Director, MORTAR Cincinnati, Cincinnati, OH, 
testifying on behalf of SCORE; Ms. Stephanie Carter, President, 
SCB Management Consulting, Upper Marlboro, MD, testifying on 
behalf of the Association of Women's Business Centers; and Ms. 
Tamara Bryant, Director, Veterans Business Outreach Center at 
Fayetteville State University, Fayetteville, NC.
    Chairman Kelly began the hearing by highlighting the 
importance of the relationship between communities and small 
businesses. This relationship is complex and reciprocal, 
requiring effort and support from both parties to achieve 
collective success. Mr. Bagdasarian discussed his experience in 
working to create an entrepreneurial ecosystem within his local 
community, emphasizing the important role the local Small 
Business Development Center played in providing entrepreneurs 
with the support they need to succeed. Mr. Braziel noted the 
community growth that has resulted from MORTAR's partnership 
with SCORE. This partnership is credited for not only providing 
Cincinnati's entrepreneurs with skilled mentors, but also 
bringing together people of differing generations and 
backgrounds. Similarly, Ms. Carter commented that the 
connections she gained through participation in her local 
Women's Business Center has provided her with both a supportive 
community as well as a pool of potential business partners. Ms. 
Bryant spoke to the importance of community when working with 
returning veterans and their families as a way of translating 
expert military skills to the skills needed when starting or 
growing a small business. Due to the limited number of Veterans 
Business Outreach Centers, they rely not only on their internal 
community to assist veterans, but also the larger Small 
Business Administration's Entrepreneurial Development 
community.

HEARING: ``SMALL BUSINESS RETIREMENT PLANS AND THE IRS' EMPLOYEE PLANS 
                             FEE CHANGE.''

    On Tuesday, April 17, 2018 at 10:00 a.m., the Subcommittee 
on Economic Growth, Tax, and Capital Access of the Committee on 
Small Business met in Room 2360 of the Rayburn House Office 
Building for a hearing titled ``Small Business Retirement Plans 
and the IRS' Employee Plans Fee Change.'' The purpose of the 
hearing was to examine the importance of retirement plans for 
small businesses and the recent employee plans fee change by 
the Internal Revenue Service (IRS). The hearing provided 
Members of the Committee the opportunity to hear directly from 
the IRS regarding retirement plans and this fee change.
    The witness for the hearing was: Ms. Sunita Lough, Project 
Director, Tax Reform Implementation Office, Internal Revenue 
Service, Washington, DC.
    Ms. Lough, who is currently leading the implementation of 
the tax reform law at the IRS, officially directs the Tax 
Exempt and Government Entities division at the IRS. This office 
oversees employee plans and their tax implications. Due to the 
complexity of the IRS reporting requirements for retirement 
plans, the IRS offers a set of compliance tools to reduce 
burdens on businesses. Plan holders have the option of 
utilizing the Self-Correction Program (SCP), the Voluntary 
Correction Program (VCP), or the Audit Closing Agreement 
Program. To utilize many of these tools, the IRS charges a user 
fee to the plan holder. In January of 2018, the IRS amended its 
user fee schedule that corresponds to its VCP tool. The user 
fee schedule went from containing six user fees based on the 
number of participants in a retirement plan to three user fees 
based on a plans' asset size. With the lowest fee increasing 
from $500 to $1,500, the Committee was concerned small 
businesses would be burdened the most by this change. In 
prepared testimony, Ms. Lough reported the fee change was made 
based on the ``average time spent and complexity of each 
case''. Responding to questions by Subcommittee Chairman Dave 
Brat, Ms. Lough committed to streamlining the VCP process. 
Additionally, Ms. Lough committed to increasing the utilization 
of the SCP tool. The Committee intends to continue to track all 
issues pertaining to small businesses offering retirement 
plans.

 HEARING: ``NO MAN'S LAND: MIDDLE-MARKET CHALLENGES FOR SMALL BUSINESS 
                              GRADUATES''

    On April 26, 2018 the Subcommittee on Contracting and 
Workforce of the Committee on Small Business met in Room 2360 
of the Rayburn House Office Building for a hearing titled ``No 
Man's Land: Middle-Market Challenges for Small Business 
Graduates.'' The hearing examined the challenges to growth and 
success for businesses as they grow out of their small size 
status.
    As the gap between small and large contractors continues to 
widen, the ability of a newly-graduated small business to 
successfully navigate the middle market becomes an increasingly 
challenging prospect. Businesses that exceed their small size 
status are often faced with limited options, most commonly, to 
either sell their company or acquire others, focus primarily on 
subcontracting opportunities which inhibits growth, or to 
deliberately limit their opportunities in order to remain 
small. None of these options meet the goals that the Small 
Business Administration's small business programs set out to 
achieve, which is to promote the growth and success of small 
businesses in order to increase competition and create a 
healthy industrial base. Challenges facing these newly-
graduated firms or mid-size firms include the lack of empirical 
data tracking the success of graduated small businesses, the 
increasingly stiff competition mid-size companies face as they 
compete against firms many times their size, additional 
burdensome requirements that trigger once they transition from 
small to other-than-small, and the changing procurement 
landscape resulting in larger contracts and more complex 
requirements. Because of these issues, many newly graduated 
firms may decide to leave the federal marketplace which reduces 
competition and increases prices for the agency and taxpayer.
    Witnesses on the panel were: Mr. Stephen Ramaley, 
Associate, Miles & Stockbridge in McLean, VA, testifying on 
behalf of the Montgomery County Chamber of Commerce; Ms. Lisa 
Firestone, President & Chief Executive Officer of Managed Care 
Advisors in Bethesda, MD, testifying on behalf of Women 
Impacting Public Policy; Mr. Mehul Sanghani, Chief Executive 
Officer, Octo Consulting Group, Reston, VA; and Ms. Eminence 
Griffin, Counsel and Director of Federal Procurement and 
Information Technology Alliance for Public Sector, Information 
Technology Industry Council, Washington DC.
    At the hearing, Mr. Ramaley presented several legislative 
options changing the formula in which the Small Business 
Administration (SBA) calculates size, which would extend the 
runway for small businesses reaching the upper limits of their 
size threshold. Ms. Firestone provided her own experiences as a 
small business owner on the cusp of losing her small size 
status. Mr. Sanghani also provided his experiences as a mid-
size business owner and provided legislative solutions that 
impact how contracting officers make contract awards. Ms. 
Griffin voiced concerns over the SBA's use of the North 
American Industry Classification System (NAICS) code as the 
primary classification source for the SBA's size standards.

        HEARING: ``TRAVEL AND TOURISM: A SMALL BUSINESS ANGLE''

    On May 8, 2018 the Subcommittee on Economic Growth, Tax, 
and Capital Access of the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Travel and Tourism: A Small Business Angle.'' This 
hearing examined the economic impact of the travel and tourism 
industries, how small businesses contribute to these 
industries, and how travel and tourism can continue to 
positively affect the United States economy.
    Witnesses on the panel were: Ms. Rita McClenny, President 
and CEO, Virginia Tourism Corporation, Richmond, VA; Mr. Steve 
Shur, President, Travel Tech, Arlington, VA; Mr. Cam 
Brensinger, Founder and CEO, NEMO Equipment, Inc., Dover, NH, 
testifying on behalf of the Outdoor Industry Association; and 
Ms. Jagruti Panwala, President and CEO, Wealth Protection 
Strategies, Bensalem, PA, testifying on behalf of the Asian 
American Hotel Owners Association.
    The panel discussed the economic effects of the travel and 
tourism industries and issues currently confronting them. Ms. 
McClenny testified about the economic impact of travel and 
tourism small businesses in the state of Virginia and the 
United States. She stated that there are an estimated 14,000 
leisure and hospitality businesses in the state of Virginia 
with less than 20 employees. Mr. Shur described how small and 
independent lodging businesses can utilize technology to find 
new customers. In addition to bookings through online travel 
sites, Mr. Shur cited a study by Cornell University that said 
with a listing on an online travel site, small hotels and bed 
and breakfasts can see a 9 percent increase in direct booking. 
Mr. Brensinger discussed his decision to start his own outdoor 
equipment company and how outdoor recreation has significantly 
shaped the American economy. Ms. Panwala said the decline in 
international visitors has been detrimental to the hotel 
industry and that tax reform has positively affected it.

 HEARING: ``HOTLINE TRUTHS II: AUDIT REVEAL INCONSISTENCIES IN DEFENSE 
                            SUBCONTRACTING''

    On May 17, 2018 the Subcommittee on Contracting and 
Workforce of the Committee on Small Business met in Room 2360 
of the Rayburn House Office Building for a hearing titled 
``Hotline Truths II: Audit Reveals Inconsistencies in Defense 
Subcontracting.'' The hearing examined an audit published by 
the Department of Defense Inspector General (DODIG) that probed 
the Department of the Army's administration of their Small 
Business Act requirements.
    To identify waste, fraud, and abuse in federal contracting, 
the DODIG reviewed contracting activities for compliance with 
the Small Business Act. Specifically, this latest report issued 
in March 2018 examined two Army Contracting Command (ACC) 
units, ACC-Redstone and ACC-Warren. For approximately half of 
the contracts sampled, the DODIG found significant failures in 
these units holding prime contractors accountable for meeting 
their subcontracting goals and for conducting basic-level 
administration activities regarding prime contractor's 
subcontracting plans. This resulted in a denial of 
approximately $915 million in subcontracting dollars to small 
businesses. Six contracts, valued at $330.7 million, were 
awarded without a subcontracting plan or a determination that a 
subcontracting plan was not needed. Eleven contracts, valued at 
$480 million, were not monitored post-award for prime 
contractors' compliance with their negotiated subcontracting 
plans. Five contracts, valued at $81.6 million, did not receive 
any follow-up investigation with prime contractors that failed 
to meet their subcontracting goals. One contract, valued at 
$22.1 million, had an accepted individual subcontracting report 
that misrepresented the amount of subcontract awards made by 
the prime contractor. Additionally, the ACC units missed 
opportunities to recoup liquidated damages of up to $82.3 
million. The DODIG found that the main reasons for these 
findings stemmed from a lack of training and standard operating 
procedures from the Army on the administration of 
subcontracting plans. Existing training focused heavily on the 
pre-award process, with little guidance relating to post-award 
responsibilities. The DODIG also found contracting officers did 
not view subcontracting as a high priority, and high turnover 
rates coupled with a lack of transition planning also 
contributed to these findings.
    Witnesses on the panel were: Mr. Michael Roark, Assistant 
Inspector General of the Department of Defense, Alexandria, VA; 
Mr. Tommy Marks, Director of the Army Office of Small Business 
Programs of the Department of Defense, Washington, DC; and Ms. 
Tiffany Scroggs, President of the Association of Procurement 
Technical Assistance Centers, Washington, DC.
    At the hearing, Mr. Roark presented his offices' findings 
audit and also described the recommendations made by the DODIG 
to the Army. Mr. Marks acknowledged his office's role in the 
issues found by the DODIG and said his office will make 
subcontracting a priority and close the DODIG's recommendations 
as swiftly as possible. Ms. Scroggs presented the small 
business perspective, stating that these findings are not 
unique to the Army or the Department of Defense, but can be 
seen across the federal government in both military and 
civilian agencies.

  HEARING: ``VETS FIRST? AN EXAMINATION OF VA'S RESOURCES FOR VETERAN-
                        OWNED SMALL BUSINESSES''

    On June 7, 2018, the Committee on Small Business 
Subcommittee on Investigations, Oversight, and Regulations met 
in Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Vets First? An Examination of VA's Resources for 
Veteran-Owned Small Businesses.'' This hearing examined the 
resources for veteran-owned (VOSBs) and service-disabled 
veteran-owned small businesses (SDVOSBs) at the Department of 
Veterans Affairs (VA). Specifically, the hearing considered the 
Veterans First Contracting Program (Vets First) and recently 
proposed changes for procuring medical supplies.
    The VA has many tools at its disposal to ensure that VOSBs 
and SDVOSBs are able to succeed in the American economy. One of 
these tools is Vets First, which was created by Congress in the 
Veterans Benefits, Health Care, and Information Technology Act 
of 2006. The Vets First program was designed to maximize the 
participation of VOSBs and SDVOSBs in the federal marketplace 
by providing the VA with contracting flexibilities for veteran 
small businesses to assist them in doing business with the VA. 
However, while Vets First was designed to assist the veteran 
small business community, the VA has not consistently carried 
out the intentions of Congress in practice. Rather than using 
the law to increase VOSB and SDVOSB participation, the VA has 
attempted to restrict its own sole source authority by adopting 
rules and policies that increase barriers to its use.
    The witnesses on the panel were: Mr. Scott Denniston, 
Executive Director, National Veterans Small Business Coalition, 
Centreville, VA; Mr. Bob Taylor, Chief Executive Officer, 
Alliant Healthcare Products, Grand Rapids, MI; Ms. Cheryl 
Nilsson, Chief Executive Officer, First Nation Group, LLC, 
Niceville, FL; and Mr. Davy Leghorn, Assistant Director, The 
American Legion, Washington, DC.
    Chairman Kelly discussed some of the challenges that 
veteran entrepreneurs face due to their backgrounds of service. 
He also explained how Vets First seeks to help VOSBs and 
SDVOSBs succeed in the federal marketplace, while also noting 
that the VA does not use the program to its full potential. Mr. 
Denniston testimony discussed in more detail how VA has failed 
to follow Congressional intent in implementing Vets First, 
especially in its recent restructuring of the VA's Medical-
Surgical Prime Vendor-Next Generation Program (MSPV). He also 
discussed how this negatively affects many VOSBs and SDVOSBs, 
potentially driving them away from the federal market or 
undermining their business entirely. Mr. Taylor shared the 
perspective of a SDVOSB, discussing the value that his company 
brings to its business with the VA. He also debated some of the 
common misconceptions that federal agencies often hold against 
SDVOSBs. Ms. Nilsson, another SDVOSB owner, spoke about the 
positive outcomes her business provides for veteran patients 
that larger businesses caru1ot match. Mr. Leghorn proposed 
alterative routes that the VA could take instead of continuing 
on with its planned restructuring of MSPV.

 HEARING: ``SHRINKING THE SKILLS GAP: SOLUTIONS TO THE SMALL BUSINESS 
                          WORKFORCE SHORTAGE''

    On June 14, 2018, the Subcommittee on Economic Growth, Tax, 
and Capital Access of the Committee on Small Business met in 
Room 2360 of the Rayburn House Office Building for a hearing 
titled ``Shrinking the Skills Gap: Solutions to the Small 
Business Workforce Shortage.'' This hearing examined the 
current small business employment landscape, and provided an 
opportunity for small business owners and experts to discuss 
innovative solutions for the small business employee shortage.
    Witnesses on the panel were: Mr. Todd Hitt, CEO, Kiddar 
Capital, Falls Church, VA; Mr. Kelly McCreight, President and 
CEO, Hamilton-Ryker IT Solutions, Nashville, TN, testifying on 
behalf of the American Staffing Association; Ms. Angela Dine 
Schmeisser, President and CEO, St. Marys Foundry, Inc., St. 
Marys, OH; and Mr. Bryant Greene, Administrator, Always Best 
Care Senior Services, Philadelphia, PA.
    The panel discussed the economic impacts of the small 
business workforce shortage. Mr. Hitt considered how the 
decline in interstate mobility in the United States inhibits 
matching available workers with hiring small businesses. Mr. 
McCreight examined the challenges of finding and retaining 
talent amid a 3.8 percent unemployment rate, and provided new 
ways to incorporate technology to train workers. Specifically, 
his company uses a virtual reality headset to train and test 
prospective forklift drivers before they apply their skills to 
the job. Ms. Dine Schmeisser outlined the importance of the 
United States manufacturing industry, and discussed some of the 
difficulties confronting small businesses in the industry. Mr. 
Greene talked about how the growth in the senior healthcare 
industry along with the low unemployment rate has particularly 
affected small businesses such as his.

  HEARING: ``ACCELERATING AGRICULTURE: HOW FEDERAL REGULATIONS IMPACT 
                       AMERICA'S SMALL FARMERS''

    On June 21, 2018, the Committee on Small Business 
Subcommittee on Agriculture, Energy, and Trade met in Room 2360 
of the Rayburn House Office Building for a hearing titled 
``Accelerating Agriculture: How Federal Regulations Impact 
America's Small Farmers.'' The hearing examined how federal 
regulations affect small farmers.
    The witnesses for the hearing were: Mr. Craig Martins, 
Operations Manager, three Rivers FS, Dyersville, IA, testifying 
on behalf of the National Council of Farmer Cooperatives and 
GROWMARK, Inc.; Mr. John Weber, Owner, Valley Lane Farms, Inc., 
Dysart, IA, testifying on behalf of the National Pork Producers 
Council; Mr. Glenn Brunkow, Co-Owner, Brush Creek Cattle 
Company, Wamego, KS, testifying on behalf of the American Farm 
Bureau Federation; and Ms. Laurie Ristino, Associate Professor 
of Law, Director, Center for Agriculture and Food Systems, 
Vermont Law School, South Royalton, VT.
    Mr. Martins emphasized the importance of farmers being able 
to operate without the oppressive weight of undue regulation. 
He stated that it would be beneficial for stakeholders if 
federal agencies included states when promulgating rules and 
making regulatory decisions. Mr. Martins testified that 
inconsistency and lack of clarity in regulations can result in 
confusion in industries and does not create a safer 
environment. He discussed various regulations, including a 
crane and derricks in construction rule from the Occupational 
Safety and Health Administration, chemical facility anti-
terrorism standards rule from the Department of Homeland 
Security, and other regulatory reforms.
    Mr. Weber testified that farmers cite compliance costs and 
regulatory burdens as the primary obstacle to productivity, and 
Congressional oversight over the regulatory process is 
essential to reducing unnecessary red tape on farmers. Mr. 
Weber discussed regulations that impact pork producers, 
including a regulation from the Department of Agriculture's 
Grain, Inspection, Packers and Stockyards Administration, the 
Waters of the United States rule, organic livestock rule, and 
hours of service from the Department of Transportation. His 
testimony also discussed regulations that have been positive 
for pork producers, including a swine slaughter inspection 
system rule, alternative proteins, and agricultural visas.
    Mr. Brunkow testified that excessive compliance costs 
prohibit farmers from being able to reinvest in their farms or 
save for the future. He also stated that a fair, transparent, 
and updated regulatory process will greatly benefit the 
agricultural industry, as well as taxpayers, small businesses, 
and the environn1ent. Mr. Brunkow explained how a smoke 
management plan implemented in Kansas was an example of 
regulated industries working with their local regulators to 
safely burn their fields.
    Ms. Ristio testified that regulation of the agriculture 
sector is essential to safeguard public safety and health, but 
at the same time, in some cases regulations may be better 
tailored to small farmers and food producers by taking into 
account their different production methods and associated risks 
in a way that ensures health and safety while allowing for 
local innovation.

 HEARING: ``ACHIEVING GOVERNMENT-WIDE VERIFICATION OF SERVICE-DISABLED 
                    VETERAN-OWNED SMALL BUSINESSES''

    On July 17, 2018, the Committee on Small Business 
Subcommittee on Investigations, Oversight, and Regulations and 
the Committee on Veterans Affairs' Subcommittee on Oversight 
and Investigations met in Room 2360 of the Rayburn House Office 
Building for a joint hearing titled ``Achieving Government-Wide 
Verification of Service-Disabled Veteran-Owned Small 
Businesses.'' This hearing examined the progress of the 
Department of Veterans Affairs (VA) and the Small Business 
Administration (SBA) in harmonizing definitions related to 
service-disabled veteran-owned small businesses (SDVOSBs). The 
hearing also examined SBA's readiness to assume the remaining 
verification functions from the VA's Center for Verification 
and Evaluation and the benefits of extending verification of 
SDVOSBs government-wide.
    Both the SBA and the VA operate procurement programs for 
SDVOSBs. As a result of the two separate programs, there are 
effectively two classes of SDVOSB--those verified by VA 
pursuing VA contracts, and those which self-certify and pursue 
contracts in all other agencies. Due to criticisms among the 
veteran business community, the Small Business Committee and 
Committee on Veterans' Affairs have held multiple joint 
hearings on the differences between these procurement programs 
and their duplicative, overlapping natures.
    The witnesses on the panel were: Mr. Thomas Leney, 
Executive Director, Small and Veteran Business Programs, United 
States Department ofVeterans Affairs, Washington, DC; Mr. Robb 
Wong, Associate Administrator, Office of Government Contracting 
and Business Development, United States Small Business 
Administration, Washington, DC; Mr. William Gould, Senior 
Advisor, Office of the Administrator, United States Small 
Business Administration, Washington, DC; and Mr. Davy Leghorn, 
Assistant Director, The American Legion, Washington, DC.
    Mr. Leney discussed the verification program at the VA and 
expressed a willingness to work with SBA to take on a 
government-wide verification function for SDVOSBs. Mr. Wong 
stated that SBA is willing to take on that new responsibility, 
but expressed concerns about having adequate funding and 
support. He also provided useful background information about 
SBA's website. Mr. Gould echoed Mr. Wong's concerns, and 
provided more details regarding what SBA would need in order to 
effectively verify SDVOSBs government-wide. Mr. Leghorn said a 
government-wide verification system is important to service-
disabled veteran business owners and encouraged SBA and the VA 
to work together to create a successful program.

                HEARING: ``INVESTING IN RURAL AMERICA''

    On July 24, 2018, the Subcommittee on Economic Growth, Tax, 
and Capital Access and Subcommittee on Agriculture, Energy, and 
Trade of the Committee on Small Business met in Room 2360 of 
the Rayburn House Office Building for a joint hearing titled 
``Investing in Rural America.'' This hearing examined venture 
capital's role in helping small businesses access capital and 
highlighted success stories of organizations that provide 
resources to small businesses in rural America.
    Witnesses on the panel were: Mr. Matthew M. McKenna, 
Executive in Residence, Rural Opportunity Initiative, McDonough 
School of Business, Georgetown University, Washington, DC; Ms. 
Falon Donohue, Chief Executive Officer, VentureOhio, Columbus, 
OH; Ms. Amy H. Gales, Executive Vice President, Regional 
Agribusiness Banking Group, CoBank, Greenwood Village, CO; and 
Mr. Ross Baird, President, Village Capital, Innovator-in-
Residence, Ewing Marion Kauffman Foundation, Alexandria, VA.
    Mr. McKenna outlined how the Rural Opportunity Initiative 
helps facilitate matching rural businesses with growth 
potential to investors. Ms. Donohue discussed how to increase 
capital access to states like Ohio, and recommended policy 
changes to increase venture capital to small businesses. For 
example, she suggested that the Dodd-Frank Act should be 
reassessed to provide a narrower definition to allow banks to 
participate in venture capital. Ms. Gales testified about the 
financial products and initiatives CoBank offers to small 
businesses in rural America. CoBank's services include flexible 
loan products for cooperative farms, rural equity investments, 
supporting youth farmers and entrepreneurs, and many others. 
Mr. Baird noted that there is a credit gap for small businesses 
that are too risky for a loan and yet too ``normal'' for 
venture capital investment. He went on to discuss how his 
company, Village Capital, is working toward providing financing 
for small businesses in this category.

    HEARING: ``SURVEYING STORMS: A DEEPER DIVE INTO SBA'S DISASTER 
                               RESPONSE''

    On Wednesday, September 5, 2018 at 11:00 a.m., the 
Committee on Small Business met in Room 2360 of the Rayburn 
House Office Building for a hearing titled ``Surveying Storms: 
A Deeper Dive into SBA's Disaster Response.'' The purpose of 
the hearing was to examine the United States Small Business 
Administration's (SBA) disaster response to the 2017 storm 
season. The hearing provided Members of the Committee the 
opportunity to hear directly from the SBA regarding the 
agency's actions during the 2017 storm season and SBA's 
disaster response moving forward.
    The witness for the hearing was: Mr. James Rivera, 
Associate Administrator, Office of Disaster Assistance, SBA, 
Washington, DC.
    Mr. Rivera testified before the Committee regarding the 
response SBA provided to disaster victims during the 2017 storm 
season, which included Hurricane Harvey, Hurricane Irma, and 
Hurricane Maria, all of which made landfall within weeks of 
each other. In the past, SBA has struggled while responding to 
major disasters, namely Hurricane Katrina in 2005 and Hurricane 
Sandy in 2012. While discussing the unique challenge of 
responding simultaneously to three major disasters, Mr. Rivera 
detailed how SBA's Disaster Loan Program assisted 2017 disaster 
victims, including how the program is administered. 
Specifically, Mr. Rivera testified that SBA moved with alacrity 
and approved $1 billion dollars in loans for the 2017 
hurricanes in half the amount of time compared to previous 
disasters. Although the recovery for 2017 storm victims 
continues, to date, SBA has approved over $7.2 billion of loans 
to those impacted by Hurricanes Harvey, Irma, and Maria. 
Acknowledging that SBA needs to continue to make improvements 
with its disaster response, Mr. Rivera outlined for the 
Committee areas the agency is addressing including, ongoing 
customer service to victims and barriers to the application 
process.

HEARING: ``TROUBLED SKIES: THE AVIATION WORKFORCE SHORTAGE'S IMPACT ON 
                           SMALL BUSINESSES''

    On Wednesday, September 26, 2018 the Subcommittee on 
Contracting and Workforce of the Committee on Small Business 
met in Room 2360 of the Rayburn House Office Building for a 
hearing titled ``Troubled Skies: The Aviation Workforce 
Shortage's Impact on Small Businesses.'' The hearing examines 
the pilot and mechanic shortage in the aviation industry in the 
context of small businesses.
    The aviation industry is facing two workforce issues 
simultaneously: a pilot shortage and a mechanic shortage. This 
scarcity arrives as demand for air travel and fleet size 
increase. The U.S. aviation sector supports nearly 11 million 
jobs contributing $1.6 trillion in economic activity. Small 
businesses play a major role; over 90% of firms providing air 
transportation, support, and manufacturing are considered small 
by SBA's standards. Several organizations predict major pilot 
shortages; for instance, Boeing projects needing 790,000 pilots 
by 2037 and the RAND organization estimates needing 1000 Air 
Force pilots by 2022 and a 10% Navy pilot shortfall by 2020. 
The pilot shortage can be attributed in large part to a 
significant number of baby boomer pilots retiring from the 
workforce; increasing costs of flight training and education 
with limited return on investment (i.e., lack of upward 
mobility); and legislative changes that promote safety but 
delay the pipeline of qualified pilots entering the marketplace 
(i.e., by increasing flight time requirements from 250 hours to 
1500 hours). There are similar predictions in mechanic 
shortages; Boeing projects North American airlines will require 
189,000 new technicians over the next decade. Causes 
contributing to the mechanic shortage mirror those causing the 
pilot shortage. Additionally, the disparity between older 
planes and technological advances in modern aircraft require a 
mechanic workforce with a diverse set of skills. Unfortunately 
the technology disparity is exacerbated by the Federal Aviation 
Administration's (FAA) outdated regulations governing the 
curriculum for aviation maintenance technician schools. The 
FAA's regulations were last updated in 1962. This shortage is 
poised to significantly impact the U.S. economy; for instance, 
the Aeronautical Repair Station Association projected a 
potential $1.95 billion dollar economic loss to the aviation 
industry if technician positions remain unfulfilled. Cancelled 
or delayed flights due to a lack of pilots or service and 
repair delays will disrupt air travel for consumers, delay the 
transport of goods, prevent the ability to provide disaster 
relief, and inhibit many other essential services fulfilled by 
the aviation sector. Given that over 90% of businesses involved 
in air transportation, support, and manufacturing are small 
businesses, the disappearance of small businesses in the supply 
chain will undoubtedly be felt across the aviation sector.
    Witnesses on the panel were: Mr. Brett Levanto, Vice 
President of Communications of the Aeronautical Repair Station 
Association in Alexandria, VA; Mr. Martin Lenss, Airport 
Director of the Eastern Iowa Airport in Cedar Rapids, IA; Ms. 
Sarah Oberman Batiush, Chief Marketing Officer & Director of 
Business Development of CI Jets in Camarillo, CA; and Mr. 
Kenneth Witcher, Ph.D., Dean of the College of Aeronautics at 
Embry-Riddle Aeronautical University in Daytona Beach, FL, 
testifying on behalf of the Aerospace Industries Association.
    At the hearing, Mr. Levanto described the overarching 
issues surrounding the pilot and mechanic shortage, 
highlighting the potential economic impact to small business 
generally and the U.S. economy generally. Mr. Lenns described 
the impact of the pilot and mechanic shortage on small, 
regional airports and surrounding communities relying on the 
local air transportation infrastructure. Ms. Bartush described 
the difficulty small flight schools have in recruiting and 
retaining trained pilots as flight instructors, further 
exacerbating the pilot shortage. Mr. Witcher discussed the 
aviation technician shortage and the impact the shortage has on 
small maintenance and repair shops and their increasing lack of 
ability to recruit a skilled workforce.

            HEARING: ``THE LOCAL IMPACT OF ECONOMIC GROWTH''

    On September 27, 2018, the Subcommittee on Economic Growth, 
Tax, and Capital Access of the Committee on Small Business met 
in Room 2360 of the Rayburn House Office Building for a joint 
hearing titled ``The Local Impact of Economic Growth.'' This 
hearing examined how the recent economic expansion is affecting 
minority-owned small businesses.
    Witnesses on the panel were: Mr. Larry Lopez, President, 
Green JobWorks LLC, Baltimore, MD; Mr. Mansour Azimipour, 
President, A&K Development Corporation, Locust Grove, VA; Ms. 
Brenda Jones Barwick, President and CEO, Jones Public 
Relations, Oklahoma City, OK; and Ms. Valarie J. Cofield, 
President and CEO, Eastern Minority Supplier Development 
Council, Philadelphia, PA.
    Mr. Lopez discussed the benefits of recent policy changes 
on both his small business and the general contracting 
industry. For example, entry level unskilled workers are now 
eligible for raises sooner than ever before, and demolition and 
final cleaning divisions are winning more work for his 
business. Mr. Azimipour discussed the importance of small 
businesses to his community, and how the federal government 
could further assist more rural small businesses. For example, 
he advocated for increased access to broadband in rural areas, 
as well as reduced underwriting requirements for banks that 
lend to small businesses. Ms. Barwick mentioned how the 
recently enacted Tax Cuts and Jobs Act allowed her to give out 
bonuses, hire more workers, and increase salaries up to 10 
percent for all employees. Ms. Cofield talked about the size 
and scope of minority-owned small businesses, specifically that 
the number of minority-owned small businesses is growing at 
twice the national average.

                                 PART C

                 Waste, Fraud, Abuse and Mismanagement

    Of the hearings delineated above, the following were 
devoted specifically to an examination of programs within the 
Committee's jurisdiction with a focus on potential 
mismanagement, waste, fraud and abuse.

                 HEARINGS ON SBA MANAGEMENT AND BUDGET

    The Committee continued its oversight of the management of 
SBA through hearings and meetings with agency officials and 
stakeholder groups. In the Committee's Budget Views and 
Estimates for Fiscal Year 2018, which were reported by the 
Committee on March 1, 2017, Members of the Committee expressed 
concern about the SBA's numerous management deficiencies, which 
date back many years. Members noted their concern that 
historically, SBA has not been effective in implementing new 
technology, which is a critical component of decision making. 
The SBA has also created entrepreneurial development programs 
on its own initiative, which appear to duplicate programs in 
the Small Business Act. The Committee's Views and Estimates 
stressed that SBA must improve its oversight of lending program 
participants, which was cited by the SBA's Office of the 
Inspector General as one of the most serious issues facing the 
agency.
    Also in 2017, numerous SBA officials, industry 
representatives and small business owners were questioned about 
the operation of SBA programs. Hearings were held on SBA's 
federal contracting programs on March 2, 2017, May 25, 2017, 
July 13, 2017, September 13, 2017, Ap1il 26, 2018, June 13, 
2018, and July 17, 2018. A full Committee bipartisan roundtable 
on advanced small businesses and contracting issues was held on 
November 14, 2017. Hearings were held on SBA's capital access 
programs on March 9, 2017, May 17, 2017, June 28, 2017, 
November 7, 2017, January 17, 2018 and April 18, 2018. Hearings 
on SBA's entrepreneurial development program were held on March 
30, 2017, July 19, 2017, September 14, 2017 and November 8, 
2017. A Committee hearing on SBA's disaster loan program was 
held on April 26, 2017. Hearings were held on SBA's Office of 
International Trade on May 23, 2017 and June 21, 2017.
    The Committee held a hearing on April 5, 2017 on overall 
SBA programs and priorities at which SBA Administrator Linda 
McMahon testified. Committee Members expressed their hope that 
longstanding SBA deficiencies will be remedied. Chairman Chabot 
said the SBA loan programs, which provide crucial access to 
capital, need vigilant oversight and better metrics to measure 
success. Administrator McMahon agreed, and added those metrics 
must measure outcomes, not output. She noted that in October 
2016, SBA hired a new Chief Information Officer to improve 
SBA's problem-plagued information technology system, which has 
been criticized by GAO and SBA's Inspector General. The 
Administrator also said she wants to improve SBA's disaster 
relief program so the agency is ready for the next major 
disaster. Members expressed concern about the number of 
Standard Operating Procedures (SOPs) that are in place at SBA, 
and asked the Administrator to carefully review them and 
determine whether all are still needed or can be streamlined. 
The Administrator said SBA's Chief Financial Officer and Chief 
Operating Officer are currently reviewing SOPs with an eye 
toward streamlining them. On November 2, 2017, the Subcommittee 
on Investigations, Oversight, and Regulations held a hearing to 
examine the SBA's SOP procedures and hear testimony from Joseph 
Loddo, SBA's Chief Operating Officer, to better understand 
SBA's responsibilities with SOPs.
    During the 114th Congress, the Committee held six weeks of 
oversight hearings on the overall management of SBA programs. 
The hearings covered the Government Accountability Office's 
(GAO) comprehensive report on the overall mismanagement of the 
SBA, which was released on October 28, 2015. The report found 
serious, ongoing deficiencies spanning the entire agency, from 
information technology and security to staff management to 
fraud in lending and contracting programs. The Committee 
continued its rigorous and bipartisan oversight of the SBA and 
its programs during the 115th Congress.
    At a hearing on the effectiveness and readiness of SBA's 
disaster loan program on April 26, 2017, the Committee heard 
testimony from William Shear, Director, Financial Markets and 
Community Investment, GAO, on dissemination of information on 
the SBA's Disaster Loan Program. Mr. Shear testified that SBA 
has not effectively presented information on disaster loans in 
a way that helps users easily find it, has not consistently 
described key features and requirements of the loan process in 
print and online, or clearly defined the financial terminology 
used in its loan applications.
    On June 14, 2017, the Committee held a hearing on SBA's 
Fiscal 2014 Voluntary Early Retirement Authority (VERA) and 
Voluntary Separation Incentive Payment (VSIP) programs, which 
failed to restructure the agency. Committee Members heard from 
SBA Acting Inspector General Hanibal ``Mike'' Ware and SBA 
Chief Operating Officer Joseph Loddo regarding the Inspector 
General's report that SBA's restructure attempt not only did 
not measure or determine agency skill gaps or workplace 
competency, it failed to decrease the average age of the 
agency's workforce; failed to develop specific goals for cost 
savings; and wasted over $2 million. Following that hearing, on 
June 26, 2017, Chairman Chabot sent a letter to Linda McMahon, 
Administrator, Small Business Administration, requesting a copy 
of the agency's final reform plan, which was due to the Office 
of Management and Budget by June 30, 2017, and full details on 
the steps it is taking to follow up on the hearing.
    At a hearing on July 12, 2017, the Committee continued its 
oversight of SBA's information technology systems. Over the 
years, SBA has had serious challenges in implementing 
information technology systems. The SBA's Chief Information 
Officer since October, 2016, Maria Roat, testified that SBA 
moved aggressively to assess SBA's IT system and establish 
modernization targets, such as moving e-mail to the cloud, 
updating software, evaluating IT purchase requisitions, and 
ensuring that SBA complies with the Federal Information 
Technology Acquisition Reform Act.
    A hearing by the Subcommittee on Investigations, Oversight, 
and Regulations on November 2, 2017 examined agency Standard 
Operating Procedures (SOP). Committee Members heard testimony 
from Joseph Loddo, Chief Operating Officer, Small Business 
Administration, regarding how and when SOPs are developed and 
whether SOPs are a form of rulemaking that should go through 
notice and comment as set forth in the Administrative Procedure 
Act. The SOP process is not transparent and does not require 
agencies to consider public or Congressional comments on a 
proposed rule. In addition, rulemaking through SOPs can lead to 
arbitrary and biased decision making.

                    HEARINGS ON FEDERAL PROCUREMENT

    During the 115th Congress, the Committee continued to 
examine federal procurement rules as they affect small 
businesses. The hearings covered topics such as problems with 
the HUBZone program, federal contracting change orders and 
agency compliance with federal statutes and rules. For example, 
on March 2, 2017, the Subcommittee on Contracting and Workforce 
held a hearing on ideas to strengthen and improve the problem-
plagued HUBZone program. A bipartisan roundtable was held on 
June 27, 2017 to examine the barriers that veteran-owned small 
businesses encounter in contracting with the federal 
government. On May 4, 2017, the Subcommittee on Contracting and 
Workforce held a hearing on improvements to the Small Business 
Innovation Research (SBIR) and Small Business Technology 
Transfer (STIR) Programs.
    The Committee used information gleaned from the hearings to 
inform legislation on federal contracting. For example, during 
the April 5, 2017 hearing at which SBA Administrator Linda 
McMahon testified, Members expressed the hope that the 
Administrator would help to ensure that the agency complies 
with federal statutes and rules governing the purchase of goods 
and services from small businesses.
    On March 2, 2017, the Committee held an oversight hearing 
on SBA's HUBZone program. The program has been plagued by fraud 
and abuse for a number of years. As the program approached its 
20 year anniversary, Committee Members learned more about its 
challenges with certification and reporting. In a series of 
separate investigations, the Government Accountability Office 
and the SBA Office of Inspector General found problems that 
left the program vulnerable to fraud and abuse. For example, 
the OIG identified significant weaknesses in procurement data 
that undermine the reliability of reported goal reporting to 
Congress. GAO has reported that HUBZone firms had made 
fraudulent or inaccurate representations to get into or remain 
in the HUBZone program. Other witnesses testified that in order 
to reach its full potential, the program must be modernized. On 
September 13, 2017, the Committee held a hearing on the HUBZone 
program to explore possible legislative solutions to strengthen 
the program. Witnesses testified that improvements to the 
program provided by H.R. 3294, the HUBZone Unification and 
Business Stability Act, bipartisan legislation sponsored by 
Ranking Member Nydia Velazquez and cosponsored by Chairman 
Steve Chabot, that would bring needed stability and certainty 
to the program. In addition, H.R. 3294 would require SBA to 
establish performance metrics by which to measure the program's 
effectiveness. H.R. 3294 was included in the conference report 
on H.R. 2810, the National Defense Authorization Act for Fiscal 
Year 2019, which became Public Law No. 115-91.
    The Subcommittee on Contracting and Workforce probed the 
operation of the Small Business Innovation and Research (SBIR) 
and Small Business Technology Transfer (STTR) programs. On May 
4, 2017, the Subcommittee held a joint hearing with the House 
Science, Space and Technology's Subcommittee on Research and 
Innovation. At the hearing, Committee Members explored whether 
participating agencies were complying with statutory efforts to 
eliminate waste, fraud, and abuse in the program.
    On June 15, 2017, the Committee reported, as amended, H.R. 
2763, the Small Business Innovation Research and Small Business 
Technology Transfer Improvements Act, bipartisan legislation to 
update and improve the popular SBIR and STIR programs. H.R. 
2763 was introduced by Representative Steve Knight and 
Representative Stephanie Murphy. Specifically, H.R. 2763 would 
reinforce the requirement that the SBA provide a comprehensive 
annual report of the programs to Congress. In addition, the 
bill would hold the Department of Defense accountable for 
stimulating small business technological innovation. The 
Committee's vote was 19-0.
    On May 25, 2017, the Subcommittees on Contracting and 
Workforce and Investigations, Oversight, and Regulations held a 
joint hearing on the effect of federal contracting change 
orders on small business contractors and solutions to ease the 
financial burden. Subcommittee Members are concerned that these 
changes cause serious delays to the project schedules, and 
agencies may be engaging in unfair or abusive negotiations with 
construction contractors. Members heard from witnesses that 
small businesses do not have the time or resources to litigate 
their claims, and often must settle for lesser amounts rather 
than face thousands of dollars in legal fees, with some forced 
out of business as a result. H.R. 2594, the Small Business 
Payment for Performance Act, bipartisan legislation introduced 
by Rep. Brian Fitzpatrick and Rep. Stephanie Murphy, would 
guard against abuse of the federal contracting process by 
federal agencies. Specifically, the bill would require federal 
agencies to make interim partial payments to contractors, 
allowing them to pay their bills without being delayed until 
the end of the project. H.R. 2594 was reported favorably, as 
amended, by the Committee to the House on June 15, 2017. The 
Committee's vote was 21-0. Additionally, H.R. 4754 was 
introduced by Representative Don Bacon, a former Member of the 
Small Business Committee, on January 30, 2018. The bill injects 
transparency into the agency change order process by providing 
small construction contractors with agency change order 
information prior to submitting a bid on a solicitation for a 
small business construction project. On May 8, 2018, the House 
passed H.R. 4754, under Suspension of the Rules, by voice vote. 
H.R. 4754 was included in H.R. 5515, the National Defense 
Authorization Act for Fiscal Year 2019. H.R. 5515 passed the 
House on May 24, 2018 by a vote of 351-66 (Roll Call No. 230), 
and the Senate, as amended, on June 18, 2018 by a vote of 85-10 
(Roll Call Number 128). The conference report for H.R. 5515 
passed the House on July 26, 2018 (Roll Call No. 379), the 
Senate on August 1, 2018 by a vote of 871-10 (Roll No. 181), 
was signed by the President on August 13, 2018, and became 
Public Law Number 115-232).
    On July 13, 2017, the Subcommittees on Contracting and 
Workforce and Economic Growth, Tax, and Capital Access held a 
joint oversight hearing titled, ``The Puerto Rico Oversight, 
Management, and Economic Stability Act: State of Small Business 
Contracting.'' The purpose of the hearing was to review the 
findings of a report released by the Government Accountability 
Act on the Puerto Rico Oversight, Management, and Economic 
Stability Act (PROMESA) on government contracting for small 
businesses in Puerto Rico. The hearing's witnesses, Mr. William 
Shear, Director, Financial Markets and Community Investment, 
Government Accountability Office, and Mr. Robb N. Wong, 
Associate Administrator, Office of Government Contracting and 
Community Development, United States Small Business 
Administration, discussed trends in the SBA's contracting 
programs that were presented in GAO's report. Mr. Shear said 
stakeholders identified challenges that small businesses in 
Puerto Rico face, including a lack of knowledge about 
contracting, difficulty meeting procurement requirements, and 
difficulty accessing bonding, financing and capital. Mr. Wong 
said SBA would continue to improve the implementation of its 
contracting programs through improved application and 
certification processes. H.R. 5178, introduced by Ranking 
Member Nydia Velazquez on March 6, 2018, sought to incentivize 
agencies to contract with Puerto Rico small businesses and also 
to incentivize potential mentors to choose Puerto Rico small 
businesses as proteges. The Committee met in open session on 
March 14, 2018 and ordered H.R. 5178 reported favorably to the 
House by voice vote. H.R. 5178 was included in H.R. 5515, the 
National Defense Authorization Act for Fiscal Year 2109, which 
passed the House on May 24, 2018 (Roll Call No. 230) and the 
Senate, as amended, on June 18, 2018 by a vote of 85-10 (Roll 
No. 128). The Conference Report for H.R. 5515 passed the House 
on July 26, 2018 by a vote of 359-54 (Roll Call No. 379), the 
Senate on August 1, 2018 by a vote of 87-10 (Roll No. 181), was 
signed by the President on August 13, 2018 and became Public 
Law Number 115-232.
    The Subcommittee on Contracting and Workforce held a 
hearing on October 25, 2017 on the Government Accountability 
Office's (GAO) report audit of the SBA's Office of Small and 
Disadvantaged Business Utilization (OSDBU). GAO's audit 
revealed that many federal agencies did not comply with the 
statutory functions of the OSBDU. Continued noncompliance with 
the requirements can inhibit the OSBDU's effectiveness in its 
statutory purpose: advocating on behalf of small businesses 
that contract with the federal government. On November 30th, 
2017, the Committee sent a series of letters to each agency 
OSDBU identified by the GAO audit to be noncompliant with their 
statutory functions. A total of 14 letters were sent, 
requesting each agency respond before December 31, 2017. The 
Committee will continue to work with GAO and SBA to ensure that 
federal agencies are fully complying with statutory 
requirements.
    On January 17, 2018, the Subcommittee on Agriculture, 
Energy, and Trade convened a hearing on small business 
resources within the Department of Energy. Subcommittee Members 
heard testimony from Charles Smith, Director of the 
Department's Office of Small and Disadvantaged Business 
Utilization. Director Smith discussed DOE's federal contracting 
process, the Office of Small and Disadvantaged Business 
Utilization's (OSDBU) resources available to existing or 
potential federal contractors, and the Department's current 
prime small business contracting goals. Subcommittee Chairman 
Rod Blum, concerned that DOE is currently well under its small 
business subcategory contracting goals, questioned Director 
Smith about the OSDBU's plan to address this deficiency. He 
requested that the Director provide that plan to the Committee 
within 60 days.
    On Thursday, April 26, 2018, the Subcommittee on 
Contracting and Workforce convened a hearing examining the 
challenges to growth and success for businesses as they grow 
out of their small size status. As the divide between small and 
large contractors continues to widen, successfully navigating 
the middle market becomes an increasingly challenging prospect 
for advanced small and mid-size firms. Businesses that outgrow 
their small size often fail once they reach the open federal 
market, become acquired into the supply chain of a larger 
competitor, or are forced to impede their own growth in order 
to remain small. None of these outcomes promote the health of 
the industrial base and undermine the Small Business 
Administration's small business program goals. H.R. 6330, 
bipartisan legislation introduced by Representative Steve 
Knight and Representative Yvette Clarke, sought to allow small 
businesses additional time to build their competitiveness and 
infrastructure against large prime contractors by modifying the 
formula employed by the Small Business Administration to 
calculate the size of a firm. The Committee met in open session 
on July 18, 2018 and ordered H.R. 6330 reported favorably, as 
amended, to the House by voice vote.
    As part of its ongoing effort to identify waste, fraud, and 
abuse, the Subcommittee on Contracting and Workforce held a 
hearing on May 17, 2018 to review the United States Department 
of Defense (DOD) Inspector General's (IG) Report on small 
business subcontracting. The audit found that the Army's 
contracting activities did not always comply with the Small 
Business Act. Specifically, Army officials did not ensure that 
prime contractors provided small businesses with adequate 
subcontracting opportunities in almost half of the 
subcontracting opportunities that the IG reviewed. As a result, 
small businesses may have been denied subcontracting 
opportunities that prime contractors were required to provide. 
The Subcommittee and the Committee will continue to review 
contracting activities to ensure that the IG's management 
recommendations for the Deputy Assistant Secretary of the Army 
for Procurement are implemented.
    On June 13, 2018 the Committee on Small Business held a 
hearing examining the impact of category management on the 
small business industrial base. Category management is a 
federal spending management initiative currently being 
implemented by the Office of Management and Budget, which 
expands upon previous attempts at contract consolidation. The 
purpose of category management, as originally developed, was to 
track and analyze market research data to better capture what 
the federal government was buying and how it was spending in 
order to increase efficiencies and achieve cost savings. Used 
in this manner, category management can be a valuable tool to 
the federal governn1ent. However, category management has been 
taken a step further by mandating a targeted increase in 
spending through ``best-in-class'' contract vehicles and a 
decrease in individual contracts. This has the potential 
consequence of funneling contract dollars and awards towards 
specific, few contract vehicles which have only a handful of 
vendors, both large and small, operating on each vehicle. This 
federal spending approach may have deleterious impacts on small 
businesses who do not operate on these ``best-in-class'' 
vehicles, particularly for emerging small businesses, by 
reducing the number of available opportunities for small 
businesses and by; making it increasingly difficult to compete 
for government contracts. H.R. 6382, bipartisan legislation 
introduced by Representative Alma Adams and Chairman Steve 
Chabot requested the Small Business Administration report on 
the total dollars awarded through ``best-in-class'' vehicles, 
specifically identifying the total dollars awarded through 
these designated vehicles to small business concerns, socially 
and economically disadvantaged small business concerns, women-
owned small businesses, HUBZone small businesses, and service-
disabled veteran-owned small businesses.
    On July 17, 2018, the Subcommittee on Investigations, 
Oversight, and Regulations held a joint hearing with the House 
Veterans' Affairs Committee's Subcommittee on Oversight and 
Investigations to examine the progress of the Department of 
Veterans Affairs (VA) and the Small Business Administration 
(SBA) in harmonizing definitions related to service-disabled 
veteran-owned small businesses (SDVOSBs). The hearing also 
examined SBA's readiness to assume the remaining verification 
functions from the VA's Center for Verification and Evaluation 
and the benefits of extending verification of SDVOSBs 
government-wide. Tom Leney, Executive Director of the Office of 
Small and Disadvantaged Business Utilization with the United 
States Department of Veterans' Affairs, Robb Wong, Associate 
Administrator of the Office of Government Contracting and 
Business Development with the United States Small Business 
Administration, and Davy Leghorn, Assistant Director of the 
National Veterans Employment and Education Division of The 
American Legion, testified on removing barriers to small 
business participation in federal contracting.

             HEARINGS ON SBA FINANCIAL ASSISTANCE PROGRAMS

    Because small business owners repeatedly tell the Committee 
that access to capital is a problem, the Committee continued 
its focus on SBA's capital access programs. The Subcommittee on 
Economic Growth, Tax and Capital Access held the first in a 
series of hearings on March 9, 2017 on SBA's 7(a) loan program 
and the state of small business lending. On April 5, 2017, the 
Committee held a hearing on overall SBA programs at which SBA 
Administrator Linda McMahon testified. The Administrator 
addressed the 7(a) loan program authorization cap, the default 
rate for the various loan programs, and metrics for program 
evaluation.
    At a March 9, 2017 hearing on the SBA's 7(a) Loan Program, 
Committee Members addressed SBA's history of lax lender 
oversight. Tony Wilkinson, President and Chief Executive Office 
of the National Association of Government Guaranteed Lenders in 
Washington, DC, testified that it is important that the SBA's 
Office of Credit Risk Management receive the appropriate amount 
of funding and the appropriate number of staff to properly 
perform vital lender oversight. The Committee held a hearing on 
January 17, 2018 on ways to strengthen SBA's 7(a) Loan Program. 
At the hearing, Members heard testimony from stakeholder groups 
on H.R. 4743, the Small Business 7(a) Lending Oversight Reform 
Act, legislation that would bolster SBA's lender oversight and 
improve the program's integrity for small businesses and 
taxpayers.
    On April 26, 2017, the full Committee held an oversight 
hearing on the operation of the SBA's disaster loan program. 
Witnesses discussed the steps needed to better ensure the 
program is ready to respond to the next disaster, and said SBA 
has made a number of key improvements to help it respond more 
efficiently and effectively. However, strong internal controls, 
updated technology and training are needed. In addition, 
William Shear, Director, Financial Markets and Community 
Investment, Government Accountability Office, testified that he 
is concerned whether SBA's reserve corps is sufficiently 
trained. Hannibal ``Mike'' Ware, Inspector General, Small 
Business Administration, said SBA may not be able to 
effectively process disaster loan applications quickly and 
without errors, increasing opportunities for dishonest 
applicants to commit fraud.
    On May 3, 2017, the full Committee held a hearing on how 
business accelerators help entrepreneurs, startups, and small 
businesses grow and create jobs. The hearing gave Members of 
the Committee the opportunity to hear from organizations that 
are directly involved in providing private sector resources to 
small businesses. On May 17, 2017, the full Committee held a 
hearing to review the SBA's 7(a) Loan Program and its ability 
to help creditworthy small businesses obtain capital. This 
hearing offered Members of the Committee the opportunity to 
hear about whether the 7(a) program adequately meets the needs 
of entrepreneurs and whether current lender oversight is 
sufficient to guard against abuse and fraud.
    On June 29, 2017, the Subcommittee on Economic Growth, Tax 
and Capital Access held an oversight hearing on the SBA's 
Certified Development Company/504 Loan Program. Members heard 
from key witnesses representing the National Association of 
Federally-Insured Credit Unions, the National Association of 
Development Companies and the Business Finance Group. The panel 
discussed their experiences with the program. Subcommittee 
Chairman Dave Brat said that as small businesses face an 
uncertain lending environment, SBA's CDC/504 program helps to 
bridge a critical funding gap. Witnesses pointed out that the 
program helps financial institutions to attract and to serve 
small business borrowers who need financing for plant and major 
equipment expansion, and its effect is felt across the economy. 
They also noted that the program requires no subsidy from 
taxpayers to operate.
    The Consolidated Appropriations Act of 2017, Public Law No. 
115-31, directed the Government Accountability Office (GAO) to 
conduct a study and report to the Senate and House 
Appropriations Committee and Senate Committee on Small Business 
and Entrepreneurship and House Committee on Small Business 
regarding the ``credit elsewhere'' requirements for the SBA's 
7(a) loan program. The law also requires GAO to include an 
analysis of the criteria currently used to identify whether 
businesses are unable to obtain credit elsewhere. GAO is now 
working on this directive.
    The Government Accountability Office issued a report, 
requested by Chairman Chabot, on the effect of financial 
regulations on access to capital on February 27, 2018. The 
report was released in concert with a full Committee hearing on 
that date. At the hearing, Michael Clements, Acting Director of 
Financial Markets and Community Investment for the Government 
Accountability Office, testified about a number of financial 
regulations that are burdensome for community banks and credit 
unions, and discussed the tools that are available to 
regulators to reduce burdens on small financial regulations.
    Continuing its oversight over SBA's 7(a) loan program, on 
April 18, 2018, the Committee held a hearing on a report 
initiated and issued by the Small Business Administration on 
the SBA's 7(a) program loans to the poultry industry. The 
report found that the 7(a) loans to poultry growers it analyzed 
did not meet regulatory and SBA requirements for eligibility. 
The large chicken companies, called integrators, exercised such 
control over the growers through contracts, operating 
procedures and other mandates that growers ceased to be 
independent businesses and ultimately became affiliates of the 
integrators. The Committee will continue its oversight of this 
loan program and the corrective action that SBA plans to take.
    On July 24, 2018, the Subcommittee on Economic Growth, Tax, 
and Capital Access and the Subcommittee on Agriculture, Energy 
and Trade held a joint hearing to examine the role of venture 
capital in helping small businesses to access capital and 
identify organizations that provide resources to small 
businesses in rural America.
    Committee Members held a hearing on September 5, 2018 to 
review SBA disaster response. The Committee heard testimony 
from James Rivera, Associate Administrator, Office of Disaster 
Assistance, on the agency's actions during 2017 and the outlook 
for disaster response moving forward.

          HEARINGS ON SBA ENTREPRENEURIAL DEVELOPMENT PROGRAMS

    SBA entrepreneurial development programs were addressed in 
a hearing on the Committee's budget views and estimates for 
Fiscal Year 2018 on February 1, 2017. They were also discussed 
in a full Committee hearing on SBA programs and management on 
April 5, 2017 at which SBA Administrator Linda McMahon 
testified. In that hearing, Chairman Chabot said that the 
training and technical assistance programs that reach small 
businesses through local Small Business Development Centers 
(SBDCs) need to keep pace with our rapidly changing times and 
ensure that they are not duplicative or being abused.
    On March 30, 2017, the Subcommittee on Contracting and 
Workforce held a comprehensive hearing on SBA's entrepreneurial 
development programs. Witnesses from SCORE; Small Business 
Development Centers Association; the Association of Women's 
Business Centers; and the National Veterans Employment and 
Education Division of the American Legion testified. At the 
hearing, Members probed topics such as how SBA resource 
partners can work together to coordinate entrepreneurial 
assistance, reduce duplication and eliminate waste; ways those 
partners can fill critical gaps in assistance; and how to 
improve training for small businesses to grow and create jobs.
    In addition, on September 14, 2017, the Subcommittee on 
Health and Technology held a hearing on how SBA's 
entrepreneurial development programs are evolving with 
technology. Witnesses with the SCORE Association; America's 
SBDC; and Women's Business Centers; and a Veteran's Business 
Outreach Center testified that although entrepreneurs prefer 
in-person experiences to webinars or website videos, they 
agreed that it is important to offer clients opportunities to 
train and learn online. In addition, they noted that small 
businesses must adopt technology to remain competitive in the 
marketplace.

                                 PART D

                          OVERSIGHT ACTIVITIES

                 OVERSIGHT PLAN FOR THE 115TH CONGRESS

    Clause 2(d) of Rule X of the Rules of the House of 
Representatives for the 115th Congress requires each standing 
committee, in the first session of Congress, to adopt an 
oversight plan for the two-year period of the Congress and 
submit the plan to the Committee on Oversight and Reform, 
Committee on House Administration and Committee on 
Appropriations.
    Subpart A contains the Oversight Plan of the Committee on 
Small Business for the One Hundred and Fifteenth Congress, 
which the Committee considered and adopted on February 1, 2017. 
Subpart B contains a summary of actions taken to implement that 
plan.

                               SUBPART A

Authorization and Oversight Plan of the Committee on Small Business for 
                   the One Hundred Fifteenth Congress

    Mr. Chabot, from the Committee on Small Business, submitted 
to the Committee on Oversight and Government Reform, the 
Committee on House Administration and the Committee on 
Appropriations the following.

                                 REPORT

    Rule X, cl. 2(d)(1) of the Rules of the House requires each 
standing Committee to adopt an authorization and oversight plan 
for the two-year period of the Congress and to submit the plan 
to the Committees on Government Reform and House Administration 
not later than February 15 of the first session of the 
Congress. Under Rule X, the Committee has oversight authority 
to investigate and examine any matter affecting small business. 
This Report reflects that broad oversight jurisdiction.
    Pursuant to Rule X, cl. 2(d)(1)(F), this Plan also includes 
proposals to cut or eliminate programs that are inefficient, 
duplicative, outdated, or more appropriately administered by 
State or local governments.
    House Rule X, cl. 2(d)(2) requires that committee oversight 
plans include a list of programs or agencies within each 
committee's jurisdiction with lapsed authorizations that 
received funding in the prior fiscal year, or a program or 
agency with a permanent authorization which has not been 
subject to review by the Committee in the prior three 
Congresses. The Committee has found no Small Business 
Administration (SBA) programs that fit these parameters. Rule 
X, cl. 2(d)(2) also requires a description of the programs or 
agencies to be authorized in the current Congress or the next 
Congress, and any oversight to support the authorization of 
those programs or agencies, and recommendations for moving such 
programs or agencies from mandatory funding to discretionary 
appropriations where appropriate. The Committee may consider 
reforms and improvements to various SBA programs as noted 
throughout this Authorization and Oversight Plan, including the 
need for SBA to create appropriate metrics to measure efficacy.
Oversight of Federal Capital Access Programs
    The Committee will conduct hearings and investigations of 
SBA and other federal agencies that provide capital to 
America's entrepreneurs that may include any or all of the 
following, as well as matters brought to the attention of the 
Committee subsequent to the filing of this Report:
           Effectiveness of the capital access programs 
        to generate jobs in the fastest growing small 
        businesses.
           Whether lenders are meeting their goals to 
        lend to small businesses and create jobs.
           Risk to the taxpayers of the capital access 
        programs.
           Adequacy of SBA oversight of its lending 
        partners to ensure that federal taxpayers are properly 
        protected.
           Capabilities of the SBA information 
        technology to manage the loan portfolio.
           Whether SBA rules, regulations and guidance 
        result in transparent and reasoned decision making with 
        respect to capital access programs.
           Assessment of credit-scoring algorithms as a 
        replacement for individual credit assessment by SBA and 
        its lending partners.
           The exercise of discretion by SBA to create 
        pilot programs and the risk they pose to the taxpayer 
        and whether such authority should be curtailed or 
        eliminated.
           Whether SBA disaster loan program and its 
        oversight ensures that small businesses are able to 
        revive and rebuild communities without unduly placing 
        the federal taxpayer at risk.
           Efficacy and duplication of federal capital 
        access programs offered by the Department of 
        Agriculture to small businesses in rural areas.
           Utilization by small businesses of export 
        capital programs at the Export-Import Bank and the 
        Overseas Private Investment Corporation.
           Continued examination of the Small Business 
        Lending Fund and State Small Business Credit Initiative 
        established by Pub. L. No. 111-240, the Small Business 
        Jobs Act of 2010, in creating jobs and providing 
        capital to small businesses.
           Impact of the Dodd-Frank Wall Street Reform 
        and Consumer Protection Act, Pub. L. No. 111-203, on 
        small business access to capital.
           Implementation of crowdfunding and other 
        provisions of the Jumpstart Our Business Startups Act, 
        Pub. L. No. 112-106.
    In performing oversight, the Committee will focus on risky 
aspects of financial assistance programs including, but not 
limited to, commercial real estate refinancing, premier 
certified lenders, participating security small business 
investment companies, small business lending companies, express 
lenders, and loan programs utilizing simplified lending 
applications.

Oversight of SBA and Other Federal Entrepreneurial Development Programs

    The Committee will conduct hearings and investigations into 
the SBA programs that provide training and advice to small 
businesses that may include any or all of the following, as 
well as matters brought to the attention of the Committee 
subsequent to the filing of this Report:
           Examining effectiveness of SBA 
        entrepreneurial development programs, including 
        programs for veterans, in creating jobs at startups and 
        traditional firms.
           Determining whether certain programs should 
        be eliminated as a result of their ineffectiveness or 
        duplication of programs provided by other agencies or 
        by the private sector.
           Suggesting methods for enhancing 
        coordination among federal agencies in providing 
        assistance to entrepreneurs, including, but not limited 
        to, businesses located in rural areas and those seeking 
        to provide goods and services in the federal 
        procurement marketplace.
           Enhancing the efficacy and utilization of 
        the Manufacturing Extension Partnership at the 
        Department of Commerce, including developments in 
        renewable energy.
           Recommending improvements in assistance to 
        small businesses in rural areas, including those 
        involved in agriculture, forestry, and energy 
        production.

Oversight of Federal Government Contracting Matters

    The Committee will conduct hearings and investigations into 
the federal procurement system that may include any or all of 
the following, as well as matters brought to the attention of 
the Committee subsequent to the filing of this Report:
           Whether fraud or other problems exist in the 
        federal government contracting programs overseen by the 
        SBA including the 8(a), HUBZone, service-disabled 
        veteran, women owned contracting, and Small Business 
        Innovation Research programs.
           Effectiveness of SBA contracting programs to 
        increase participation by small businesses in federal 
        procurement.
           Effectiveness of federal agency protections 
        against contract bundling and consolidation.
           The accuracy and utility of SBA size 
        standards and federal procurement databases.
           Operation and effectiveness of federal 
        agency assistance provided to small businesses 
        interested in federal procurement, including that 
        provided by the SBA, Offices of Small and Disadvantaged 
        Business Utilization and Procurement Technical 
        Assistance Centers.
           Development of federal acquisition policies 
        and whether small businesses have sufficiently 
        effective voice in development of such policies.
           Cost-effectiveness of outsourcing government 
        work to private enterprise rather than expanding the 
        government to provide the good or service internally 
        (i.e., government insourcing).
           Implementation and efficacy of changes made 
        in small business federal procurement programs arising 
        from the enactment of the National Defense 
        Authorization Acts for FYs 2012-2016.
           Examination of the Small Business Innovation 
        Research Program as modified by the National Defense 
        Authorization Act for FY 2012, Pub. L. No. 112-81, 
        including, but not limited to, increased efforts at 
        commercializing federally-funded technology.
    In performing oversight, the Committee will focus its 
efforts on uncovering abuse and misuse of the small business 
designation to obtain federal government contracts.

Oversight of SBA Management

    The Committee will conduct the hearings and investigations 
into the management of the SBA that may include any or all of 
the following, as well as matters brought to the attention of 
the Committee subsequent to the filing of this Report:
           The appropriate mission of the SBA.
           Whether agency employees in the field are 
        empowered to assist small businesses.
           Duplication of offices and missions at SBA 
        headquarters.
           Effectiveness of personnel management to 
        ensure that employees are rewarded for assisting small 
        businesses.
           Capabilities of SBA employees to provide 
        proper assistance to small business owners.
           Agency personnel capabilities to properly 
        manage loan defaults to maximize recovery of 
        collateral.
           Whether SBA improperly utilizes statutory 
        authority to create untested initiatives and the 
        procedures by which the agency develops such programs.
    In carrying out this oversight, the Committee will focus 
particularly on streamlining and reorganizing of the agency's 
operations to provide maximum assistance to small business 
owners. Offices that primarily provide assistance or advice to 
headquarters staff that do not promote the interests of small 
businesses or protect the federal government as a guarantor of 
loans will be recommended for cuts or elimination. For some 
potential offices that the Committee will examine, refer to the 
section titled ``Reductions in Programs and Spending.''

Oversight of Federal Regulatory and Paperwork Burdens

    The Committee will conduct hearings and investigations into 
unnecessary, burdensome, and duplicative federal rules, 
reporting and recordkeeping requirements affecting small 
businesses that may include any or all of the following, as 
well as matters brought to the attention of the Committee 
subsequent to the filing of this Report:
           Consumer Financial Protection Bureau.
           Consumer Safety Products Commission.--
           Department of Agriculture.
           Department of Commerce.
           Department of Energy, particularly the 
        Office of Energy Efficiency and Renewable Energy.
           Department of Health and Human Services, 
        particularly the Centers for Medicare and Medicaid 
        Services and Food and Drug Administration.
           Department of Interior, particularly the 
        Bureau of Land Management and Fish and Wildlife 
        Service.
           Department of Homeland Security, 
        particularly the Transportation Security 
        Administration.
           Department of Labor, particularly the 
        Occupational Safety and Health Administration and the 
        Wage and Hour Division.
           Department of Transportation, particularly 
        the Federal Aviation Administration and Federal Motor 
        Carrier Safety Administration.
           Department of the Treasury, particularly the 
        Internal Revenue Service.
           Environmental Protection Agency.
           Federal Communications Commission.
           Federal Financial Institutions Examination 
        Council and its constituent agencies.
           Office of Management and Budget, 
        particularly the Office of Federal Procurement Policy.
           Securities and Exchange Commission.
    The Committee will identify specific rules and regulations 
already issued or at the proposed rule stage to assess the 
impact on small businesses. In addition, the Committee will 
examine agency compliance with the Regulatory Flexibility Act 
and Paperwork Reduction Act. The Committee will pay close 
attention to the effect that regulations have on startups. 
Oversight of the regulatory process also will, to the extent 
relevant, examine the work of the Office of Information and 
Regulatory Affairs at the Office of Management and Budget. 
Special attention will be paid to the work performed by the 
Chief Counsel for Advocacy at the Small Business Administration 
to ensure that Office is fulfilling its mission to advocate 
vigorously on behalf of America's small business owners in 
regulatory matters at federal agencies. Finally, this oversight 
will entail an examination of compliance by federal agencies 
with amendments to Executive Order 12,866 and memoranda on 
regulatory flexibility and regulatory compliance issued by the 
President on January 18, 2011 and still in effect as of the 
approval of this Oversight Plan.

Oversight of Federal Tax Policy

    The Committee will conduct hearings and investigations into 
the federal tax code, its impact on small business, and 
Internal Revenue Service's (IRS) collection of taxes that may 
include any or all of the following, as well as matters brought 
to the attention of the Committee subsequent to the filing of 
this Report:
           Identification of tax code provisions and 
        proposed rules that hinder the ability of small 
        businesses to create jobs and recommendations for 
        modifying those provisions to boost small business job 
        growth.
           Examination of the structure of the tax code 
        in order to simplify compliance for small businesses.
           Assessment of the recordkeeping and 
        reporting requirements associated with tax compliance 
        and suggestions for reducing such burdens on small 
        businesses.
           Evaluation of the estate tax provisions to 
        determine whether they inhibit the ability of 
        successive generations to maintain successful job 
        creating enterprises.
           Efficiencies at the IRS that improve the 
        interaction between the government and small business 
        owners.
           Inefficiencies at the IRS that force small 
        businesses to divert capital from job growth to tax 
        compliance.

Oversight of Health Care Policy

    The Committee will conduct hearings and investigations into 
federal health care policy (such as Medicare and Medicaid) and 
the continued implementation of the Patient Protection and 
Affordable Care Act that may include any or all of the 
following, as well as matters brought to the attention of the 
Committee subsequent to the filing of this Report:
           The cost of the Patient Protection and 
        Affordable Care Act to small businesses, including the 
        self-employed.
           The availability of health insurance in the 
        federal marketplaces established by the Patient 
        Protection and Affordable Care Act.
           The impact of the Patient Protection and 
        Affordable Care Act, Medicare and Medicaid on the 
        ability of physicians, pharmacists, and allied health 
        care providers to offer the best care possible to 
        patients.
           The impact of state tort and insurance laws 
        on the cost of medical care.
           Examination of increases in efficiencies 
        that will improve the provision of health care while 
        reducing costs to small businesses that offer their 
        workers health insurance.

Oversight of Energy Policy

    The Committee will conduct hearings and investigations into 
energy policy to reduce the cost of energy and increase energy 
independence that may include any or all of the following, as 
well as matters brought to the attention of the Committee 
subsequent to the filing of this Report:
           Innovations developed by small businesses 
        that create greater energy independence.
           Federal regulatory policies that increase 
        dependence on foreign sources of energy.
           Policies needed to incentivize production of 
        energy in the United States.
           Examination of commercialization of research 
        in renewable energy.
           Federal regulations or policies that 
        increase energy costs for small businesses.
    The primary thrust of the Committee's efforts will focus on 
efforts to use the innovation of America's entrepreneurs to 
fuel the drive for greater energy independence, including the 
development of renewable energy products.

Oversight of Trade and Intellectual Property Policy

    The Committee will conduct hearings and investigations into 
international trade and intellectual property policies of 
America and its trading partners that may include any or all of 
the following, as well as matters brought to the attention of 
the Committee subsequent to the filing of this Report:
           Impact of free trade agreements to increase 
        exports by American small businesses.
           Oversight of SBA's Office of International 
        Trade and the agency's efforts to promote small 
        business exports.
           Examination of the impact of illicit actions 
        by foreign entities on small businesses and whether the 
        federal government is doing enough to protect their 
        interests.
           Whether the federal government is doing 
        enough to protect the intellectual property rights of 
        small businesses by foreign competitors.
           The impact of federal intellectual property 
        policies, particularly patents and copyrights, to 
        protect the innovations of American entrepreneurs.
           Efforts to increase exports by small 
        businesses.
           Whether the United States Trade 
        Representative and Department of Commerce sufficiently 
        protect the interests of small businesses in the 
        negotiation of free trade agreements.
           Whether the United States Trade 
        Representative takes positions at the World Trade 
        Organization that sufficiently promote the interests of 
        American small businesses.
    The focus of oversight will emphasize the best mechanisms 
to promote and protect advanced technology innovations of small 
businesses.

Reductions in Programs and Spending

    In addition to the programs and policies already cited, the 
Committee will examine any and all offices and programs that 
fall within the Committee's legislative jurisdiction to find 
areas that could lead to reduction in the federal deficit. Some 
programs and offices may include:
           State Small Business Credit Initiative 
        operated by Department of Treasury.
           Express Loan Program overseen by SBA.
           Emergingg Leaders Initiative started by SBA.
           Clusters Program initiated by the SBA.
           Innovation and Impact Fund Pilot Programs 
        operated by the SBA.
           SBA Office of Policy.
           SBA Regional Administrators.
           Office of Advocacy Regional Advocates.
           SBA Deputy District Directors.
           SBA Office of International Trade.
           SBA Office of Native American Affairs.
    In particular, the Committee will assess whether 
reorganization and reassignment of employees to more critical 
functions at the SBA, such as positions in the Office of 
Government Contracting and Business Development will provide a 
more effective agency at helping small businesses to generate 
growth.

Programmatic Duplication

    The Committee notes that Sec. 18 of the Small Business Act 
prohibits duplication of any effort by the Small Business 
Administration if a program is already offered by another 
federal agency unless the Small Business Administration 
expressly authorizes the duplication. The Committee will 
continue to monitor the Small Business Administration for 
programs that duplicate the efforts of other federal agencies.

                               SUBPART B


Implementation of the Oversight Plan of the Committee on Small Business 
               for the One Hundred and Fifteenth Congress

    The Committee began 2017 with oversight hearings on a 
number of Small Business Administration (SBA) programs. The 
Committee focused on small business access to capital; 
opportunities for federal government contracting; assistance 
with trade and exporting; entrepreneurial development; and 
investment and innovation programs. In addition, the Committee 
held a wide ranging hearing on SBA programs and management on 
April 5, 2017 at which SBA Administrator Linda McMahon 
testified.
    On November 7, 2017, the Subcommittee on Agriculture, 
Energy and Trade held a hearing to further study the SBA's 
Small Business Investment Company (SBIC) Program. Members of 
the Subcommittee heard from a representative of the Small 
Business Investor Alliance, two SBIC program participants, and 
a former SBA official who headed the Office of Investment and 
Innovation. To follow up on that hearing, on December 17, 2017, 
Subcommittee Chairman Blum sent a letter to Joseph Shepard, 
Associate Administrator, Office of Investment and Innovation, 
SBA, requesting information on the SBIC licensing process.
    On October 30, 2017, SBA released its FY 2018-2022 
Strategic Plan.\4\ The plan was described by SBA as the 
principal document within the agency's performance management 
framework, designed to be followed through to all levels of the 
organization.\5\ According to the plan, the agency's four 
priority goals are to: 1) increase the number of loans by 5% to 
small businesses in socially and economically disadvantaged 
urban and rural areas; 2) maximize the percent of federal 
contracts set aside for small businesses by exceeding the 23% 
goal; 3) increase by 10% the number of unique 8(a) small 
business contracts awarded; 4) increase the average number of 
disaster loan applications processed from three to six 
applications per loan specialist. The Committee will closely 
follow SBA's progress on these goals.
---------------------------------------------------------------------------
    \4\United States Small Business Administration, FY 2018-2022 
Strategic Plan, October 30, 2017.
    \5\Id. at 6.
---------------------------------------------------------------------------

Sec. A. Oversight of SBA Management

    The Committee continues to oversee the management of the 
Small Business Administration through hearings and meetings 
with agency officials and industry representatives. The 
hearings held by the Committee and its subcommittees are 
detailed in Parts A, B, and C, supra, and will not be repeated 
here.
    In the Committee's views and estimates on the Budget for 
Fiscal Year 2018, the Committee expressed concern about the 
ongoing management challenges within the agency, and urged SBA 
to implement the open management recommendations made in the 
GAO's 2015-2016 report requested by the Committee. GAO found 
extensive deficiencies in SBA's management, including problems 
with operating procedures, staff management, information 
technology and cyber security. The Committee will continue its 
close monitoring of SBA's operation and management.
    During the May 5, 2017 hearing, at which SBA Administrator 
Linda McMahon testified, Chairman Chabot noted that Members had 
a lot of unanswered questions from the 114th Congress about how 
the agency will address longstanding deficiencies in 
management, information technology and program oversight. 
Administrator McMahon pledged that SBA would work with the 
Committee to make the agency more effective and efficient in 
assisting small businesses by improving capital access, 
counseling, and government contracting programs. She also said 
the SBA will ensure that it provides the services that small 
businesses actually need to grow and create jobs.
    Over the years, the SBA has struggled with the 
implementation of information technology. In fact, a 
comprehensive GAO report released in September 2015 noted that 
senior SBA leaders had not prioritized long-term organizational 
transformation in information technology, and that this deficit 
posed a risk to the agency. On July 12, 2017, the Committee 
held an oversight hearing on the Small Business 
Administration's Office of the Chief Information Officer 
(OCIO). At the hearing, the Committee examined whether the OCIO 
is operating efficiently and effectively. In particular, 
Committee Members expressed concern that the high turnover rate 
in the CIO position (eight CIOs since 2005) has undermined the 
SBA's ability to make lasting improvements. The Committee also 
discussed the need for continued oversight of SBA's technology 
investments and improved information security controls, which 
recent SBA Inspector General reports have highlighted.
    For example, on November 28, 2017, the SBA's Office of 
Inspector General released its report on the implementation of 
the Federal Information Technology Acquisition Reform Act 
(FITARA).\6\ The IG concluded that although SBA has made 
progress in implementing the objectives of FITARA, it needs to 
consistently establish baseline performance baselines for its 
IT investments and update system development guidance to 
reflect current project implementation methodologies.\7\ In 
addition, SBA should fully deploy a strategy for implementing 
enterprise architecture and implement an IT workforce planning 
process.\8\ The IG's report recommended six steps that SBA 
should take to improve implementation of FITARA. They are: (1) 
ensure that SBA's IT oversight body tracks baselines; (2) 
regularly measure and report IT project performance against 
baselines; (3) update system development policies and 
procedures; (4) incorporate IT architecture review into the 
acquisition process; (5) implement IT architecture guides; and 
(6) develop IT workforce competencies.\9\ SBA management agreed 
with the findings and recommendations and complied with 
recommendations 1 and 2. Although the IG considers its 
recommendations closed, SBA must routinely ensure that the 
steps recommended are accomplished.
---------------------------------------------------------------------------
    \6\Office of Inspector General, U.S. Small Business Administration, 
Review of SBA's Implementation of the Federal Information Technology 
Reform Act (FITARA), Report Number 18-06, Nov. 28, 2017. SBA identified 
FITARA as ``integral to meeting its strategic goal of implementing and 
maintaining modern, secure, and reliable information technology systems 
and services.'' Id. at Executive Summary.
    \7\Id.
    \8\Id.
    \9\Id.
---------------------------------------------------------------------------
    On June 14, 2017, the Committee held a hearing on the SBA's 
failed FY 2014 Voluntary Early Retirement Authority (VERA) and 
Voluntary Separation Incentive Payment (VSIP) program, which 
resulted in the SBA misspending $2.1 million. Although these 
failures occurred under a previous Administration, the 
Committee wants to ensure that the past is not repeated. To 
follow up, on June 26, 2017, Chairman Chabot sent a letter to 
SBA Administrator Linda McMahon requesting a copy of the SBA's 
final Agency Reform Plan and a briefing on the plan.
    For some time, the Committee has been concerned that SBA 
imposes binding rules on its regulated entities through 
Standard Operating Procedures (SOP). SOPs are not promulgated 
according to the Administrative Procedure Act, which sets forth 
basic steps an agency must take when proposing and finalizing 
agency regulations. The SOP process is not transparent, and SBA 
does not seek input from Congress, stakeholders or regulated 
entities during the process. Because rulemaking through SOPs 
can lead to arbitrary and biased decisionmaking, on November 2, 
2017, the Committee held a hearing on this topic and heard 
testimony from Joseph Loddo, Chief Operating Officer of the 
Small Business Administration. Mr. Loddo pledged to brief 
Committee Members regarding SBA's SOP process and to increase 
the transparency of the agency's SOPs.

Sec. B. Oversight of Federal Capital Access Programs

    Although the economy is improving, small businesses are 
still struggling to obtain needed capital to expand and create 
jobs. In its Budget Views and Estimates for Fiscal Year 2018, 
the Committee outlined its concerns with, and proposals for, 
improving the SBA programs devoted to small business financing, 
including the 7(a) Loan Program; the Certified Development 
Company Loan Program; the Microloan Program; the Small Business 
Investment Company Program; and the Disaster Loan Program.
    The Committee and its subcommittees held numerous hearings 
on capital access programs, described in Parts B and C supra, 
on capital access issues. Those descriptions will not be 
repeated here.
    The Committee has worked with the House and Senate 
Committees on Appropriations to ensure that the SBA has 
sufficient funds available to meet the demand for 7(a) loans. 
House Small Business Committee Members will continue to closely 
monitor the operation of the 7(a) loan program to ensure that 
it is working effectively and has adequate resources to assist 
small businesses.
    After the disclosures in 2016 that Wells Fargo, a leading 
7(a) loan program and 504 loan program participant, had engaged 
in ``improper sales practices,'' the Committee sent letters to 
Wells Fargo and the SBA requesting information on whether small 
businesses were affected. The Committee requested briefings 
from Wells Fargo and is continuing to investigate the extent to 
which small businesses may have been affected.
    The Committee has continued its close examination of the 
Disaster Loan Program to ensure that SBA is prepared for the 
next major disaster. Committee Members will continue to monitor 
the program and SBA's dissemination of disaster loan 
information to ensure it has the capability to process disaster 
aid in a timely and efficient manner. Following Hurricane 
Harvey in August 2017, Chairman Chabot sent a letter to SBA 
Administrator Linda McMahon emphasizing that the SBA must 
continue improving its loan process times while guarding 
against program fraud and abuse. Chairman Chabot reiterated 
that he stands with SBA to ensure that it has the tools needed 
to aid small businesses and homeowners in Texas and Louisiana 
affected by the disaster.
    Building on the Committee's interest in the effect of 
financial regulations on small businesses, Chairman Chabot 
requested a GAO study of the impact of financial regulations on 
community banks and credit unions. Many small banks and credit 
unions serve small businesses, and the Committee is interested 
in the effect of these regulations on their ability to serve 
entrepreneurs. In addition, Chairman Chabot asked GAO to study 
the burden of regulations on community banks and credit unions. 
GAO's report was issued in February 2018.
    On July 10, 2017, Chairman Chabot sent a letter to Richard 
Cordray, Director of the Consumer Financial Protection Bureau 
(CFPB), expressing concern about two ongoing CFPB rulemaking 
matters which may significantly affect small businesses: (1) 
CFPB's request for information on the implementation of Section 
1071 of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act, Pub. L. No. 111-203; and (2) the manner in 
which CFPB conducted the Small Business Regulatory Enforcement 
Fairness Act (SBREFA) panels on CFPB's rule on Payday, Vehicle 
Title and Certain High Cost Installment Loans. Chairman Chabot 
also requested that CFPB provide a briefing to Committee staff 
on these matters.
    In an effort to explore ideas that would unlock vital 
capital for small businesses, Chairman Chabot and Ranking 
Member Velazquez held a bipartisan roundtable on September 28, 
2017. The purpose of the roundtable was to learn more about 
Goldman Sachs' 10,000 Small Businesses Initiative, which helps 
entrepreneurs create jobs and economic opportunity by providing 
greater access to education, capital and business support 
services.
    The Committee continued its oversight of the Small Business 
Administration's Microloan Program. On October 12, 2017, the 
Small Business Subcommittees on Oversight, Investigations, and 
Regulations and Economic Growth, Tax, and Capital Access held a 
joint hearing to probe whether the SBA has made progress on the 
recommendations that the SBA Office of the Inspector General 
(OIG) issued for the SBA Office of Capital Access (OCA) in its 
2009 audit of the Program. On September 28, 2017, the SBA OIG 
released a new audit of SBA's Microloan Program. At the 
hearing, the Committee heard testimony from the SBA OIG that 
although SBA agreed with the six recommendations in the OIG's 
2009 audit, SBA has not adequately implemented all of them. 
According to the 2017 IG audit, SBA used site visits to verify 
the data reported by program intermediaries. However, SBA did 
not have a site visit plan or summary data from its visits. 
Committee Members queried the witnesses to ensure that going 
forward, SBA will have a site visit plan, conduct site visits 
and compile data summarizing the visits. After the IG's most 
recent audit in 2017, SBA again said it agreed with all of the 
IG's recommendations, and SBA pledged to implement them. The 
Committee will continue its rigorous oversight of this program 
and of SBA's OCA.
    January 9, 2018, Chairman Chabot introduced H.R. 4743, the 
Small Business 7(a) Lending Oversight Reform Act, which was 
cosponsored by Ranking Member Velazquez. H.R. 4743 is 
bipartisan, bicameral legislation that would improve the 
oversight of SBA's 7(a) Loan Program by: (1) codifying the 
Office of Credit Risk Management and its duties; (2) requiring 
SBA to detail its oversight budget in a transparent manner; and 
(3) requiring SBA to perform a full risk analysis of the 7(a) 
program annually. The bill would also strengthen SBA's Credit 
Elsewhere Test by clarifying the factors that SBA must consider 
in determining whether the test has been met. On January 14, 
2018, the Committee held a hearing on H.R. 4743 to obtain 
testimony from key stakeholders on the proposed changes to the 
7(a) Program. Representatives of stakeholder groups testified 
that the changes in H.R. 4743 would clarify and bolster the 
test, bolster the 7(a) program and ensure its integrity and 
protect taxpayer dollars.
    At the request of Chairman Chabot, the Government 
Accountability Office (GAO) studied how regulations affect the 
community banks and credit unions that deliver needed capital 
to small businesses. GAO's report, which was released in 
connection with a hearing by the full Committee on February 28, 
2018, found that regulations for reporting mortgage statistics, 
reviewing transactions for potentially illicit activity, and 
disclosing mortgage terms were most burdensome.\10\ 
Institutions said these regulations were time consuming and 
costly to comply with because they are complex and require 
individual reports or mandated actions within specific time 
frames. GAO said that Congress intended that regulators 
consider the cumulative effect of all federal financial 
regulations when reviewing and assessing regulations. The 
Consumer Financial Protection Bureau (CPFB) has formed an 
internal group to review regulations it administers, but the 
agency has not announced the scope of regulations included, the 
timing and frequency of reviews, and the extent it will 
coordinate with other regulators.\11\ The Committee plans to 
continue its oversight of these important issues.
---------------------------------------------------------------------------
    \10\GAO, Community Banks and Credit Unions: Regulators Could Take 
Additional Steps to Address Compliance Burdens 1 (GA0-18-213) (2018).
    \11\Id.
---------------------------------------------------------------------------
    In March 2018, the Office of the Small Business 
Administration's (SBA) Inspector General (OIG) released a 
report revealing that SBA has made an increasing number of 7(a) 
program loans to large poultry operators. On April 18, 2018, 
Chairman Chabot called the SBA's Inspector General before the 
Committee to testify on the report. The IG explained in his 
testimony that the restrictive contracts under which the 
poultry growers operate mean that they are considered 
affiliates of the large poultry operators, rather than 
independent small businesses. Committee Members heard how SBA 
intends to implement the OIG's recommendations to ensure that 
future 7(a) loans meet the statutory, regulatory, and SBA 
requirements for eligibility.

Sec. C. Oversight of SBA and Other Entrepreneurial Development Programs

    Almost one quarter of the SBA's budget is devoted to 
providing outreach and technical assistance to small 
businesses, which is accomplished through SBA entrepreneurial 
development programs. In the Committee's budget views and 
estimates for Fiscal Year 2018, the Committee assessed the 
effectiveness of these programs, and recommended that SBA 
eliminate the programs that are duplicative or mirror those 
that are provided by other federal agencies or the private 
sector. In 2017 and 2018, the Committee and its subcommittees 
continued this oversight, conducting numerous hearings on SBA's 
entrepreneurial development programs.
    On April 5, 2017, SBA Administrator Linda McMahon testified 
before the full Committee on her vision and plan for the 
agency. Chairman Chabot noted that the Committee takes its 
oversight role seriously and works in a bipartisan manner on 
oversight. Ranking Member Velazquez spoke about the importance 
of SBA management being efficient and effective. Administrator 
McMahon said that she has been meeting with SBA officials and 
learning more about each component of the agency. She said she 
is not satisfied that SBA has the proper metrics in place and 
may be measuring output rather than outcomes.
    The Committee believes that SBA's entrepreneurial 
development programs should be available to more entrepreneurs 
and that technology can help to propel their growth. On 
September 14, 2017, the Subcommittee on Health and Technology 
held a hearing to examine how the counseling and training 
programs have evolved. Because of the market's increasing 
reliance on technology, the Committee wants to ensure that the 
programs not only incorporate technology training in their 
programs, but also employ technology to increase services to 
more clients. Today, small businesses must adopt technology to 
stay competitive in the global marketplace.
    On October 12, 2017, the Subcommittee on Health and 
Technology held a hearing on promoting women's entrepreneurial 
success. More women entrepreneurs are starting businesses, and 
some data shows that women are starting businesses twice as 
fast as men. Gaps still exist in access to capital, however. 
More women have difficulty accessing financing that is adequate 
to start and grow their companies. The Subcommittees 
highlighted the resources that are available to assist women 
entrepreneurs, including Women's Business Centers, Small 
Business Development Centers, SCORE and the Women's Enterprise 
Development Center. Witnesses urged SBA to improve the 
marketing of services that are available to women.

Sec. D. Oversight of Federal Government Contracting Matters

    One of SBA's primary missions is to ensure that small 
businesses receive a ``fair proportion of the total purchases 
and contracts for property and services for the Government in 
each category . . .'' 15 U.S.C. Sec. 644(a). Congress has 
established a number of programs designed to increase federal 
government contracting opportunities for small firms. In 
addition, taxpayers benefit from a competitive market, because 
greater competition generally results in lower prices for goods 
and services. The Committee held a number of hearings on issues 
related to federal government contracting. Those hearings are 
described in Parts B and C, supra, and will not be repeated 
here.
    On March 7, 2017, Chairman Chabot sent a letter to GAO 
Comptroller General Gene Dodaro requesting a GAO review of the 
effect of change orders in federal procurement contracts. 
Because the increasing frequency of federal agencies changing 
contracts after they are executed, small businesses have been 
forced to absorb the extra costs, sometimes driving them out of 
business. Chairman Chabot, Chairman Mac Thornberry, Chairman of 
the House Committee on Armed Services, and Representative Steve 
Knight asked GAO to investigate the timeframe for Department of 
Defense Weapon Systems Awards. GAO will examine whether the 
timeframe has increased in recent years, and the factors 
affecting the length of time needed to award contracts.
    The Committee is also interested in the extent to which 
federal agencies with procurement powers have complied with 
requirements relating to the duties and qualifications of 
directors of the Offices of Small and Disadvantaged Business 
Utilization. Chairman Chabot and Ranking Member Velazquez 
requested that GAO determine compliance with these requirements 
and the extent that staffing levels had on that compliance. The 
study was published in August of 2017 and the Committee held a 
hearing on October 25, 2017 examining the results of the 
report. Additionally, the Committee sent a total of 14 letters 
to agencies the GAO found to be noncompliant, requesting 
additional information from these agencies explaining their 
noncompliance.
    Committee Members continue to closely follow the process 
that federal agencies use to assign North American Industrial 
Classification System (NAICS) codes to federal procurement 
contracts. In 2017, Chairman Chabot and Ranking Member 
Velazquez asked GAO to report on agency policies for assigning 
NAICS codes and whether those policies comply with laws, 
regulations and internal control standards. In addition, GAO 
will report on SBA's policies for hearing appeals of 
contracting officer designation of NAICs codes. The study 
published on December 5, 2017, did not indicate wrongdoing with 
the assignment of NAICS codes and found that the SBA's Office 
of Hearings and Appeals dismissed or denied the majority of 
appeals.
    Chairman Chabot and Chairman Lamar Smith, Chairman of the 
House Committee on Science, Space, and Technology, requested in 
2017 that GAO review and issue a report on the Small Business 
Innovation Research (SBIR) Program. That work is currently 
underway. On August 22, 2017, Chairman Chabot, House Energy and 
Commerce Committee Chairman Greg Walden, and Energy and 
Commerce Subcommittee on Oversight and Investigations Chairman 
Tim Murphy sent a letter to The Honorable Scott Pruitt, 
Administrator of the Environmental Protection Agency, and 
requested information on EPA's reporting of SBIR program data 
to the SBA.
    Committee Members expressed concern about federal 
government-initiated, unilateral contract modifications, or 
contracting change orders, and their negative effect on small 
construction contractors. On March 3, 2017, Chairman Chabot, 
Ranking Member Velazquez, Rep. Steve Knight and Rep. Stephanie 
Murphy wrote a letter to the Comptroller General of the United 
States, Gene Dodaro, to request a GAO study on the use of 
change orders in federal construction contracts and their 
effect on small businesses. In particular, GAO was asked to 
address the statutory and regulatory framework that applies to 
change orders; time frames that apply to the issuance and 
settlement of change orders; agency guidelines for issuing and 
paying for change orders; and evidence of change order 
``bundling.'' In addition, on August 2, 2017, Chairman Chabot 
sent a letter to Comptroller General Dodaro asking to become a 
co-requestor for the GAO study on the effects of the United 
States Supreme Court's decision in Kingdomware Technologies v. 
United States. That study was requested by House Veterans' 
Affairs Committee Subcommittee on Oversight and Investigations 
Chairman David Roe, M.D.
    Following up on the GAO's work in 2013 and 2017 on federal 
contracting with the Department of Veterans Affairs,\12\ on May 
25, 2017, the Small Business Subcommittees on Contracting and 
Workforce and Investigations, Oversight, and Regulations held a 
hearing to broadly examine this issue. The Subcommittees heard 
testimony from witnesses who explained the delays and increased 
financial burden caused by change orders, and discussed 
potential legislative changes that could offset some of the 
associated financial risk.
---------------------------------------------------------------------------
    \12\GAO, VA Construction: Additional Actions Needed to Decrease 
Delays and Lower Costs of Major Medical-Facility Projects (GAO-13-302) 
(2013); GAO, VA Construction: Actions to Address Cost Increases and 
Schedule Delays at Denver and Other VA Major Medical-Facility Projects 
(GAO-15-564T) (2015).
---------------------------------------------------------------------------
    Members of the Committee continue to be concerned about the 
health of the industrial base, the low number of small business 
suppliers to the federal government, and other issues related 
to small businesses who wish to compete for federal procurement 
contracts. Chairman Chabot and Ranking Member Velazquez 
testified in support of the Committee's small business 
procurement legislation before the House Committee on Armed 
Services on April 27, 2017, and expressed appreciation to House 
Armed Services Committee Chairman Mac Thornberry for the Armed 
Services Committee's longstanding collaboration with the Small 
Business Committee. Chairman Chabot requested that the 
Committee's bipartisan small business provisions be included in 
H.R. 2810, the National Defense Authorization Act (NDAA) for 
Fiscal Year 2018. Chairman Chabot also stressed the importance 
of the Committee's small business government contracting 
reforms and economic development provisions to keeping 
procurement costs competitive.
    The Armed Services Committee included the Committee's small 
business provisions in H.R. 2810. The bill passed the Committee 
on Armed Services on June 29, 2017, the House as amended on 
July 14, 2017 by a vote of 344-81 (Roll Call No. 378) and the 
Senate as amended on September 18, 2017 by a vote of 89-8 (Roll 
No. 199). The House passed the FY 2018 NDAA conference report 
on November 14, 2017 by a vote of 356-70 (Roll Call No. 631). 
The Senate passed the conference report on November 16, 2017 by 
voice vote. The conference report was signed by the President 
on December 12, 2017 and became Public Law No. 115-91.
    In 2018, Chairman Chabot and Ranking Member Velazquez again 
expressed appreciation to House Armed Services Committee 
Chairman Mac Thornberry for his committee's longstanding 
collaboration with the Small Business Committee, and asked the 
Armed Services Committee to include 13 bipartisan Committee 
small business bills in H.R. 5515, the National Defense 
Authorization Act (NDAA) for Fiscal Year 2019. On April 11, 
2018, Chairman Chabot and Ranking Member Velazquez testified 
before the House Armed Services Committee in support of the 
Small Business Committee's provisions. Chairman Chabot asked 
Armed Services Committee to include the bills on the SBIR/STTR 
programs, small business federal contracting, cybersecurity, 
and access to capital, as they are critical to ensuring a 
robust industrial base.
    On June 28, 2017, Committee Members held a bipartisan 
roundtable with service-disabled veteran-owned small business 
owners, government contracting experts and stakeholder groups 
to examine how to better assist veteran-owned small businesses 
obtain federal contracts. The participants exchanged ideas on 
how veteran-owned small businesses can succeed following the 
United States Supreme Court decision in Kingdomware 
Technologies, Inc. v. United States, which requires the U.S. 
Department of Veterans Affairs to put veterans first in all 
procurement actions, upholding the ``rule of two.''
    The Committee continued its oversight of SBA programs in 
Puerto Rico. The Puerto Rico Oversight, Management, and 
Economic Stability Act (PROMESA) required the Government 
Accountability Office to study the application and utilization 
of the Small Business Administration's federal contracting 
preference programs in Puerto Rico. GAO's report was released 
on June 29, 2017 (GAO-17-550). On July 13, 2017, the 
Subcommittees on Contracting and Workforce and Economic Growth, 
Tax, and Capital Access held a joint hearing to discuss the 
report's findings, which found that for 2006 through 2016, a 
higher percentage of federal contracting obligations were 
awarded to small businesses within Puerto Rico compared to the 
percentage of small businesses nationwide. Stakeholders 
indicated that some contracting challenges may be exacerbated 
by Puerto Rico's geography and economic conditions.
    Over the years, government watchdogs, including GAO and 
SBA's Inspector General, have found numerous problems with 
SBA's HUBZone Program. The Committee is committed to addressing 
them. The Subcommittee on Contracting and Workforce held a 
hearing on March 2, 2017 on ways to strengthen and modernize 
the program. On August 19, 2017, Ranking Member Velazquez and 
Chairman Chabot introduced H.R. 3294, the HUBZone Unification 
and Stability Act, comprehensive and bipartisan legislation 
mandating that SBA institute HUBZone program performance 
metrics; verify certification; and increase program oversight. 
At a September 13, 2017 hearing, the full Committee and a panel 
of expert witnesses considered these and other changes to the 
HUBZone program. H.R. 3294 was included in H.R. 2810, the FY 
2018 National Defense Authorization Act, which passed the House 
as amended on July 14, 2017, by a vote of 344-81 (Roll Call No. 
378) and the Senate as amended on September 18, 2017 by a vote 
of 89-8 (Roll No. 199). On November 14, 2017, the House passed 
the FY 2018 NDAA conference report by a vote of 356-70 (Roll 
No. 631) and the Senate on November 16, 2017 by voice vote.
    The Committee heard from advanced and mid-tier small 
businesses that have grown out of their size standards and are 
no longer considered small, but are not large enough to compete 
with larger businesses. Some studies have shown that these 
companies may have limited opportunities. On November 14, 2017, 
the Committee held a bipartisan roundtable for Members to learn 
more about the unique challenges that these businesses face.
    On January 18, 2018, the Subcommittee on Agriculture, 
Energy, and Trade held a hearing titled ``Engaging Energy: 
Small Business Resources at the Department of Energy.'' 
Subcommittee Members queried Charles Smith, Director of the 
Department of Energy's (DOE) Office of Small and Disadvantaged 
Business Utilization (OSDBU) on meeting small business 
contracting goals and the programs that DOE offers to small 
businesses. Mr. Smith said he will focus on DOE's 
underperformance in subcategory contracting goals, and 
improving small business participation in its programs.
    Committee Members requested a briefing from the Office of 
Management and Budget on its views about H.R. 5337, the 
Accelerated Payments for Small Businesses Act of 2018. Chairman 
Chabot, Ranking Member Velazquez, Subcommittee Chairman Steve 
Knight and Subcommittee Ranking Member Stephanie Murphy wrote 
to OMB Director Mick Mulvaney in December 2017 expressing 
concerns about OMB Memorandums M-11-32 and M-12-16, which 
directed federal agencies to accelerate payments to small prime 
contracts and other-than-small businesses with a goal of 
payment within 15 days.
    The Small Business Subcommittee on Investigations, 
Oversight, and Regulations and the Veterans' Affairs 
Subcommittee on Oversight and Investigations held a joint 
hearing on July 17, 2018 to examine the progress of the 
Department of Veterans Affairs (VA) and the Small Business 
Administration (SBA) in harmonizing definitions related to 
service-disabled veteran-owned small businesses (SDVOSBs). The 
hearing also examined SBA's readiness to assume the remaining 
verification functions from the VA's Center for Verification 
and Evaluation and the benefits of extending verification of 
SDVOSBs government-wide.
    Continuing the Committee's oversight activities regarding 
protection of subcontracting opportunities for small 
businesses, Committee members on August 16, 2018, joined by the 
Chairman and Ranking Member of the Senate Committee on Small 
Business and Entrepreneurship, requested the GAO study what 
agency oversight activities and protocols are undertaken to 
ensure prime contractor compliance with subcontracting plan 
requirements in section 8(d) of the Small Business Act and 
examine how effectively agencies are utilizing statutory 
penalties that may be levied against noncompliant prime 
contractors.
    Additionally, members of the Committee joined by members of 
the House Armed Services Committee sent a letter to the Office 
of Federal Procurement Policy on September 13, 2018, requesting 
information regarding a severe delay in enacting critical small 
business provisions of Public Law 112-239, specifically, 
section 1651--revisions to the limitations on subcontracting.

Sec. E. Oversight of Federal Regulatory and Paperwork Burdens

    Under Cl.1(q) of the Rules of House of Representatives, the 
Committee has jurisdiction over the protection of small 
businesses and regulatory flexibility. The Committee's past 
work on the Regulatory Flexibility Act, Pub. L. No. 96-354, and 
its subsequent legislation to amend the Act, H.R. 33, the Small 
Business Regulatory Flexibility Improvements Act of 2017, which 
was included in H.R. 5, the Regulatory Accountability Act, 
which passed the House on January 11, 2017, underscore the 
importance that the Committee places on strengthening 
requirements that federal agencies tailor their regulations to 
reduce economic burdens on small businesses.
    The Committee continues to take an active role in 
overseeing how federal government agencies develop their 
regulations to ensure that these rules do not impose undue 
burdens on small firms. The Committee remains concerned about 
the effect on small businesses of proposed and final rules 
issued by federal agencies. The Committee's interactive web 
tool, Reg Watch, regularly lists the details of proposed 
federal rules that may affect small businesses so small 
business owners can review and comment on them.
    The Committee and its subcommittees held several hearings 
on the burdens of federal regulations and paperwork 
requirements on small businesses. These hearings are detailed 
in Parts A and B, supra, and will not be repeated here. In 
addition, Chairman Chabot was an original cosponsor of H.J. 
Res. 37, the Congressional Review Act resolution that nullified 
the rule finalized by the Department of Defense, the General 
Services Administration, and the National Aeronautics and Space 
Administration on August 25, 2016. That rule revised the 
Federal Acquisition Regulation to implement Executive Order 
13673 concerning contractor compliance with labor laws (also 
known as the ``Blacklisting Rule''). H.J. Res. 37 passed the 
House on February 2, 2017, the Senate on March 6, 2017, and was 
signed into law on March 27, 2017 (Pub. L. No. 115-11).
    The confusing and costly federal permitting process was the 
subject of a full Committee hearing on September 6, 2017. 
Committee Members heard testimony from small business owners 
about the challenges of navigating through a complex system of 
federal laws and regulations, which requires a significant time 
and expense. Members also examined how the process of federal 
permitting requirements could be streamlined.
    On November 27, 2017, the Committee held a hearing on 
federal regulations that burden the small trucking industry. 
This hearing followed a hearing the Committee held during the 
112th Congress titled, ``Do Not Enter: How Proposed Hours of 
Service Are a Dead End for Small Businesses.'' At the hearing, 
Committee Members heard from small trucking company 
representatives about how the proposed regulations will 
adversely affect them, restricting drivers, increasing time off 
the road, and resulting in lost earnings and lost efficiencies.
    During the Second Session of the 115th Congress, the 
Committee continued its hearings on burdensome federal 
regulations. For example, on February 27, 2018, the 
Subcommittee on Economic Growth, Tax, and Capital Access 
convened a hearing to explore occupational licensing 
requirements that impede small businesses from opening or 
expanding.
    On March 7, 2018, the Committee held a hearing on the 
effects of Congress and the President's regulatory reform and 
rollback efforts on small businesses. At the hearing, Committee 
Members heard from small business representatives detailing how 
federal regulations continue to be a problem for small 
businesses and highlighted regulatory reform actions that 
Congress can take to continue to reduce the burden.
    On June 21, 2018, the Subcommittee on Agriculture, Energy, 
and Trade convened a hearing to explore how federal regulations 
affect small farmers and ways to provide regulatory relief to 
the industry. Committee Members heard from small farmers 
specific regulations that are problematic for their industry 
and proposed steps Congress could take to address these 
regulatory burdens.
    During the 115th Congress, the Committee held several 
hearings on the burden of paperwork on small business owners. 
With some limited exceptions, the Paperwork Reduction Act 
requires all executive departments and independent regulatory 
agencies to obtain approval from the Office of Management and 
Budget in advance of collecting information from or imposing a 
reporting or recordkeeping requirement on 10 or more persons. 
On March 27, 2017, the Committee examined the Paperwork 
Reduction Act's effectiveness in reducing the paperwork burden 
on small businesses and issues that may warrant further 
scrutiny or legislative action. Building on its first hearing, 
on October 11, 2017, the Committee held the second in a series 
of oversight hearings on the Paperwork Reduction Act. At the 
hearing, the Committee heard testimony from federal agency 
chief information officers on whether the current law has 
reduced the paperwork burden on small firms. The witnesses said 
that although the paperwork burden continues to increase, 
agencies are striving to find ways to reduce burdens on small 
businesses. They proposed several reforms, including stronger 
enforcement for monetizing costs and setting reduction targets, 
and greater use of online reporting.
    The Committee has explored the financial regulatory burdens 
on small community banks and credit unions. The Government 
Accountability Office (GAO) released a report at the 
Committee's hearing on February 28, 2018 that examined the 
challenge of compliance with financial regulations for the 
nation's small community banks and credit unions. In 
particular, GAO found that regulations for reporting mortgage 
characte1istics were the most burdensome because these 
regulations were complex, require individual reports, added 
significant time to loan closings, and resulted in the charging 
of fees. In addition, some compliance burdens arose from 
misunderstanding disclosure regulations, which led to 
institutions taking action that were not required.
    As part of its ongoing oversight efforts, Chairman Chabot 
and Ranking Member Velazquez wrote letters to federal agencies 
that have failed to fully comply with the Small Business 
Regulatory Enforcement Fairness Act of 1996\13\ (SBRFEA), which 
requires agencies to report to Congress annually on small 
entity compliance guides that are required for every final rule 
that has a significant impact on a substantial number of small 
entities under the Regulatory Flexibility Act. Very few federal 
agencies have complied with this requirement, and the Committee 
plans to ensure agencies comply with this section of the law.
---------------------------------------------------------------------------
    \13\Small Business Regulatory Enforcement Fairness Act of 1996, 
Pub. L. No. 104-121, Sec. 212(a)(1), 110 Stat. 847 (codified at 5 
U.S.C. Sec. 631 note).
---------------------------------------------------------------------------

Sec. F. Oversight of Federal Tax Policy

    The Committee and its subcommittees held several hearings 
on federal tax policy. These hearings are described in Part A, 
supra, and will not be repeated here. In addition, numerous 
meetings were held with industry representatives to gauge the 
impact of tax policies on small businesses.
    On February 15, 2017, the Committee heard testimony from 
small business owners who stated that provisions in the current 
tax code which penalize saving and risk-taking present the 
biggest barrier to American entrepreneurship. Data provided by 
the National Small Business Association reported that the 
majority of small businesses, 68 percent, spend more than 
$1,000 per year on federal tax compliance.
    Following a March 30, 2017 report by the Department of the 
Treasury's Tax Inspector General for Tax Administration (TIGTA) 
on the Internal Revenue Service's seizures of small business 
assets related to presumed structuring under the Bank Secrecy 
Act, the Subcommittee on Investigations, Oversight, and 
Regulations held a bipartisan roundtable for Committee Members. 
The roundtable featured the TIGTA Inspector General and his 
staff, as well as small businesses that have been investigated 
and targeted by the IRS and had their legally-obtained income 
seized and forfeited.
    On July 24, 2017, Chairman Chabot sent a letter to Rep. 
Peter Roskam, Chairman of the Ways and Means Subcommittee on 
Tax Policy, outlining the tax reform priorities of small 
business owners. The Chairman's letter followed a hearing by 
the Ways and Means subcommittee exploring the ways that tax 
reform can help small businesses to grow and create jobs. In 
the letter, Chairman Chabot asked that the Ways and Means 
Committee consider how tax reform will benefit small businesses 
when the Committee is deliberating tax reform.
    The Committee has been interested in ideas to help simplify 
the tax code, which burdens small businesses with its size and 
complexity. On October 4, 2017, the Committee held a hearing to 
explore possible solutions for small businesses in H.R. 3717, 
the Small Business Owners' Tax Simplification Act. H.R. 3717 is 
bipartisan legislation that was introduced by Chairman Chabot 
and cosponsored by Ranking Member Velazquez. It would address 
many of the tax problems that small business owners face, 
including allowing small business owners as well as employees 
to participate in pre-tax cafeteria benefit plans; establishing 
uniform standards and procedures for electronic signatures; 
realigning tax filing thresholds; and clarifying that voluntary 
worker training does not affect employer worker classification. 
On January 30, 2018, Chairman Chabot testified at the Ways and 
Means' Oversight Subcommittee Member Day hearing on Legislation 
to Improve Tax Administration on the simplification proposals 
contained in H.R. 3717.
    In addition, the Committee has raised awareness of the 
importance of retirement plans for small businesses, and the 
Internal Revenue Service's recent employee retirement plan fee 
changes. On April 17, 2018, the Subcommittee on Economic 
Growth, Tax, and Capital Access held a hearing to hear directly 
from the IRS about these fee changes and provide feedback from 
small businesses on their impact.
    On July 25, 2018, the Committee heard testimony from 
witnesses whose businesses have benefited from the Tax Cuts and 
Jobs Act. Members heard testimony directly from small business 
owners about the impact the law has had on their operations and 
their outlook going forward. Witnesses emphasized the 20 
percent deduction, Section 170 expensing, bonus depreciation 
and the estate tax amended threshold as provisions that have 
helped their businesses.

Sec. G. Oversight of Health Policy

    The Committee continued its interest in rural health 
issues. On July 20, 2017, the Subcommittees on Health and 
Technology and Agriculture, Energy, and Trade held a joint 
hearing on telemedicine in rural areas and efforts to increase 
health care options for rural patients, providers and insurers. 
Committee Members will continue to monitor developments on 
these issues.
    On December 14, 2017, Chairman Chabot sent a letter to IRS 
Acting Commissioner David Kautter requesting information about 
the IRS' application of Affordable Care Act employer mandate 
penalty payments to small businesses.

Sec. H. Oversight of International Trade Policy and Intellectual 
        Property

    The Committee and its subcommittees held a number of 
hearings on international trade policy during the 115th 
Congress. The topics and descriptions of these hearings are 
detailed in Parts A and B, supra, and will not be repeated 
here.
    On March 2, 2017, Chairman Chabot sent a letter to Patrick 
Kirwan, Director of the U.S. Department of Commerce's Trade 
Promotion Coordinating Committee, requesting an overdue 
Federal-State Export Strategy report required by the Trade 
Facilitation and Enforcement Act.\14\ Chairman Chabot also sent 
a letter to Acting SBA Inspector General Hannibal ``Mike'' 
Ware, requesting an overdue STEP Grant Program report required 
by the Trade Facilitation and Enforcement Act.\15\
---------------------------------------------------------------------------
    \14\Pub. L. No. 114-125, 130 Stat. 177 (2016).
    \15\Id.
---------------------------------------------------------------------------
    As part of its continuing oversight over SBA trade 
programs, on May 23, 2017, the Committee held a hearing to 
examine the efforts of the SBA's Office of International Trade. 
The witness at the hearing was Peter Cazamias, Associate 
Administrator, Office of International Trade, SBA. Mr. Cazamias 
testified that although there are over 28 million small 
businesses in the United States, fewer than 5 percent are 
exporters. He acknowledged that there is room for improvement, 
which he stated could be addressed in three ways: the need for 
information, the need for capital, and the need among small 
businesses for overseas promotional services and market access. 
Mr. Cazamias assured the Committee that he would be committed 
to ensuring that our small business exporters find all the 
support they need to expand into international markets.
    Many small businesses face significant challenges in 
exporting to foreign markets. On April 11, 2018, the Committee 
held a hearing on the current state of trade for small 
businesses. The Committee heard testimony from small businesses 
and experts on the State Trade and Export Grant Program (STEP) 
and the federal government's overall efforts to increase small 
business exports. The Committee also explored recent trade 
policy developments and their impact on small businesses.
    The Committee held several hearings on intellectual 
property policy. On May 16, 2018, the Committee held a hearing 
titled ``Intellectual Property 101: How Small Businesses Can 
Utilize Intellectual Property Protections'' to give Committee 
Members a basic understanding of the protections a small 
business owner might require. A second hearing was held on July 
11, 2018 titled ``Innovation Nation: How Small Businesses in 
the Digital Technology Industry Use Intellectual Property,'' 
where Members heard testimony from small businesses in the 
digital technology industry that use intellectual property. 
Small business owners and experts provided testimony about the 
challenges small firms face in protecting their ideas.

Sec. I. Oversight of Workforce Development Policy

    One of the problems most frequently mentioned by small 
businesses is a lack of available workers. During the 115th 
Congress, the Committee held a number of hearings on this 
topic, including the Subcommittee on Growth, Tax, and Capital 
Access hearing titled ``Examining the Small Business Labor 
Market'' on September 7, 2017; the Subcommittee on Agriculture, 
Energy, and Trade hearing ``Bridging the Entrepreneurial Gap'' 
on December 11, 2017; the full Committee hearing ``Job 
Creation, Competition, and Small Businesses in the United 
States Economy'' on February 14, 2018; and the full Committee 
field hearing ``Workforce Development: Closing the Skills Gap'' 
on February 26, 2018. Members learned more about the education 
and training programs that are helping to increase workforce 
development and address the skills gap.
    The Committee has also heard the concerns of small business 
owners that there is a lack of qualified workers for vacant 
positions, and that occupational licensing can impede small 
business growth and job creation. On March 29, 2018, Chairman 
Chabot wrote to Major Clark, III, Acting Chief Counsel for 
Advocacy with the Small Business Administration, and asked the 
Office of Advocacy to conduct a study of occupational licensing 
and its economic effects for small firms.
    A persistent complaint among small business owners is the 
lack of qualified workers. On May 8, 2018, the Committee held a 
hearing titled ``Ready, Willing and Able to Work: How Small 
Businesses Empower People with Developmental Disabilities.'' 
Small business owners and advocates for the developmentally 
disabled testified about the role that small businesses play as 
employers, and how small business owners can learn more about 
opportunities to employ those with developmental disabilities.
    The Committee's hearing on June 6, 2018 explored the ``gig 
economy'' and the entrepreneurs who are part of it. Members 
heard testimony from millennials who explained the role of co-
working, the reality of being a small business owner in the gig 
economy, and the impact of the gig economy on small firms. 
Workers in the gig economy are another resource for small 
businesses that are growing and expanding in today's improving 
economy.
    On June 14, 2018, the Subcommittee on Economic Growth, Tax, 
and Capital Access held a hearing on solutions to the ``skills 
gap,'' which has resulted in the inability of many small firms 
to expand due to lack of qualified employees. Experts provided 
testimony that innovative training programs, partnering with 
community colleges, and programs that match job seekers with 
available positions have all yielded positive results.
    Many Members have expressed concern about the nation's 
opioid epidemic and its effect on the small business workforce. 
On September 11, 2018, the Committee held a hearing to explore 
the epidemic and its related issues. Experts provided testimony 
on the extent of the crisis and possible solutions for small 
business owners.
    On September 26, 2018, the Subcommittee on Contracting and 
Workforce held a hearing examining the pilot and mechanic 
shortage in the aviation industry in the context of small 
businesses. Experts provided testimony that the impact of this 
shortage will not only impact small businesses operating within 
the aviation sector, such as small flight schools, mechanic and 
repair shops, and regional airlines, but will also negatively 
affect the U.S. and global economy broadly. Testimony was 
provided indicating that reversing this decline is key to 
ensuring the air transportation industry can continue to 
succeed and meet the growing demands of the modern world.

Sec. J. Reductions in Programs and Spending

    On March 1, 2017 and February 14, 2018, the Committee 
reported its annual Budget Views and Estimates letters. In 
those letters, the Committee expressed its ongoing concerns 
that the current federal regulatory framework makes it 
difficult for small businesses to comply with regulations. 
Rather than promoting economic progress, the federal government 
imposes a regulatory regime that makes it difficult for small 
firms to compete globally. It can be said that today the 
biggest problem facing entrepreneurs is overly burdensome 
regulations.
    Small businesses are an integral part of local communities, 
and their owners, like their neighbors, want clean air and 
water, and safe workplaces, products, and foods. Small 
businesses want to comply with regulations, but they cannot do 
so if the regulations are crafted in a way that makes it 
impossible for entrepreneurs to comply. Recognition that small 
businesses were disproportionately burdened by one-size-fits-
all regulations and underrepresented in the federal rulemaking 
process spurred Congress to enact the Regulatory Flexibility 
Act (RFA)\16\ in 1980. The RFA requires agencies to assess the 
economic impacts on small businesses when they are designing 
new rules and to evaluate alterative approaches that reduce 
significant compliance burdens. The law also requires agencies 
to review existing rules that affect small businesses to 
determine whether they should be continued, changed, or 
rescinded. The RFA has been amended twice, in 1996 and 2010, to 
increase agency compliance with the law.
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    \16\5 U.S.C. Sec. Sec. 601-612.
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    Even with the amendments Congress has enacted, agency 
compliance has remained inconsistent. Too often, agencies are 
exploiting gaps in the law's current requirements or ignoring 
their obligations under the law. The Committee has closely 
examined agency compliance with the RFA over many Congresses 
and concluded that further strengthening of the law is needed 
to ensure that federal agencies comply with its requirements 
and truly consider the effects of regulations on small 
businesses. The Chairman introduced H.R. 33, the Small Business 
Regulatory Flexibility Improvements Act, to remedy the 
weaknesses in the existing law and strengthen its provisions. 
That legislation was included as Title III in H.R. 5, the 
Regulatory Accountability Act, which the House passed on 
January 11, 2017 by a vote of 238-183. The Committee expects 
that no additional funds will be required to implement the 
requirements of the Small Business Regulatory Flexibility 
Improvements Act because agencies already engage in the kind of 
outreach and analysis that is required by the legislation.
    The legislation simply clarifies the RFA's existing 
requirements and codifies certain agency practices, such as 
conduct outreaching to affected small businesses before 
proposing a rule and memorializing the input those parties 
provide in a report that is published with the proposed rule. 
It also requires federal agencies to examine the reasonably 
foreseeable indirect effects of significant rules, conduct more 
detailed analyses of the possible economic consequences of 
significant rules, and evaluate the cumulative economic impact 
of rules on small businesses. However, the Committee believes 
there is significant overlap between the regulatory analysis 
and outreach already done by agencies under executive orders 
such as Executive Order (E.O.) 12,866, E.O. 13,563, and E.O. 
13,610, and statutes such as the National Environmental Policy 
Act which requires agencies estimate the indirect effects of 
some regulations.
    The Committee's 2017 and 2018 Views and Estimates letter 
expressed continuing concern about SBA-created initiatives that 
often duplicate SBA's longstanding small business outreach 
efforts. Under 7(a)(25) of the Small Business Act, SBA was 
granted authority to create pilot programs to ensure 
flexibility and meet unexpected needs in a diverse economy. 
However, SBA has abused the authority by creating programs that 
continue longer than one would expect a pilot program to last.
    Often these SBA-created initiatives are not adequately 
assessed by SBA prior to or after their implementation. In the 
Committee's view, funding for these programs could be 
eliminated without hindering outreach to small businesses, and 
the funds saved could be reallocated to technology 
improvements, hiring appropriate SBA employees to ensure small 
businesses gain their fair share of government contracts or 
implementing the priorities that Congress has mandated for the 
SBA.

                           REGULATORY REVIEW

  Legislative and Oversight Activity Related to Regulations, Orders, 
 Administrative Actions and Procedures by Federal Agencies Within the 
          Jurisdiction of the Committee on Small Business\17\
---------------------------------------------------------------------------

    \17\Under House Rule X, the Committee on Small Business has 
jurisdiction over the protection of small business, including 
``financial aid, regulatory flexibility, and paperwork reduction'' as 
well as jurisdiction over the participation of small businesses in 
government contracts. In addition, under Rule X, cl. 3(1), the 
Committee has continuing oversight of ``the problems of all types of 
small businesses.''
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    The Committee continues to closely monitor federal agency 
regulations that affect small businesses and their 
implementation. A comprehensive review of the Committee's 
regulatory oversight is detailed below. The Committee continues 
to maintain and regularly update Reg Watch, an online 
regulatory tool that explains federal regulations that may 
significantly impact small entities, and provides a means by 
which small businesses can comment on proposed regulations 
directly to the appropriate federal agency.
115th Congress, First Session
    1/3/17. Chairman Chabot introduced H.R. 33, the Small 
Business Regulatory Flexibility Improvements Act, legislation 
to force federal regulators to promulgate less burdensome 
regulations that consider their direct and indirect effects on 
small businesses. The House passed H. R. 33 on January 11, 2017 
as part of Title III of H.R. 5, the Regulatory Accountability 
Act by a vote of 238-183.
    1/3/17. Chairman Chabot introduced H.R. 79, Helping Angels 
Lead Our Startups (HALOs) Act, legislation to clarify the 
definition of ``general solicitation'' under federal securities 
law and allow angel investor groups to host events to allow 
entrepreneurs to demonstrate their work and connect with 
potential backers. H.R. 79 passed the House on January 10, 2017 
by a vote of 344-73, and was included in H.R. 10, the Financial 
CHOICE Act, which passed the House on June 8, 2017 by a vote of 
233-186. H.R. 79 was later included in S. 488, the JOBS and 
Investor Confidence Act, which passed the Senate on September 
11, 2017 by unanimous consent, the House on July 17, 2018 under 
suspension of the rules by a vote of 406-4 (Roll Call No. 333).
    3/2/17. Chairman Chabot sent a letter to Patrick Kirwan, 
Director of the U.S. Department of Commerce Trade Promotion 
Coordinating Committee, requesting a report on the Trade 
Promotion Coordinating Committee's Federal-State Export 
Strategy required by the Trade Facilitation and Enforcement 
Act.\18\
---------------------------------------------------------------------------
    \18\Pub. L. No. 114-125, 130 Stat. 177 (2016).
---------------------------------------------------------------------------
    3/2/17. Chairman Chabot sent a letter to SBA Acting 
Inspector General Hannibal ``Mike'' Ware, requesting a report 
on the State Trade and Export Promotion (STEP) Grant Program 
required by the Trade Facilitation and Enforcement Act of 
2015.\19\ This report should review the STEP grant recipients 
and measure the performance, management, and overall 
effectiveness of the program.
---------------------------------------------------------------------------
    \19\Id.
---------------------------------------------------------------------------
    3/3/17. Chairman Chabot, Ranking Member Velazquez, Rep. 
Steve Knight and Rep. Stephanie Murphy sent a letter to GAO 
Comptroller General Gene Dodaro requesting that GAO review the 
use of change orders in federal government procurement 
construction contracts.
    3/27/17. Chairman Chabot and Ranking Member Velazquez sent 
a letter to SBA Administrator Linda McMahon requesting 
information regarding SBA's administrative decision to lift the 
cap on HUBZone program participation.
    3/29/17. The Committee held a hearing to examine federal 
agency compliance with the Paperwork Reduction Act.\20\
---------------------------------------------------------------------------
    \20\44 U.S.C. Sec. Sec. 3501-21.
---------------------------------------------------------------------------
    3/29/17. Chairman Chabot and Ranking Member Velazquez 
introduced H.R. 1773, the Clarity for America's Small 
Contractors Act, which would require additional agency 
reporting on small business goals, uniformity in procurement 
technology and clarification of the role of small business 
advocates.
    4/16/17. Chairman Chabot sent a letter to Gene Dodaro. 
Comptroller General, Government Accountability Office, 
requesting that GAO review and report on the State Trade and 
Export Promotion (STEP) Grant Program.
    5/23/17. The Committee held a hearing to obtain an update 
from Peter Cazamias, Associate Administrator for the SBA Office 
of International Trade, on SBA's efforts to administer the 
State Trade and Export (STEP) grant program and to better 
coordinate federal and state resources for small exporters.
    5/23/17. Rep. Brian Fitzpatrick introduced H.R. 2594, the 
Small Business Payment for Performance Act, legislation to help 
ensure that small business federal contractors are paid in a 
timely manner for construction contract change orders.
    6/22/17. Chairman Chabot introduced H.R. 3002, which would 
require cyber security training for Small Business Development 
Center counselors.
    7/10/17. Chairman Chabot sent a letter to The Honorable 
Richard Cordray, Director of the United States Consumer 
Financial Protection Bureau (CFPB), requesting a staff briefing 
on two ongoing CFPB rulemaking matters that may significantly 
affect small businesses.
    7/24/17. Chairman Chabot sent a letter to The Honorable 
Peter Roskam, Chairman, Ways and Means Subcommittee on Tax 
Policy, expressing appreciation for the Ways and Means 
Committee's recent hearing entitled ``How Tax Reform Will Help 
America's Small Businesses.'' Chairman Chabot also urged the 
Ways and Means Committee to keep small businesses at the 
forefront of tax reform deliberations.
    8/22/17. Chairman Chabot, Chairman Greg Walden, House 
Energy and Commerce Committee, and Chairman Tim Murphy, Energy 
and Commerce Subcommittee on Oversight and Investigations, sent 
a letter to The Honorable Scott Pruitt, Administrator of the 
United States Environmental Protection Agency (EPA), requesting 
information on the EPA's reporting of data on Small Business 
Innovation Research (SBIR) program to SBA.
    8/31/17. After Hurricane Harvey, Chairman Chabot sent a 
letter to SBA Administrator Linda McMahon pledging to work with 
SBA to reduce its disaster loan processing times and ensure it 
has the tools needed to aid small businesses and homeowners in 
Texas and Louisiana affected by Hurricane Harvey and Hurricane 
Irma.
    9/6/17. The full Committee held a hearing on how 
streamlining the federal permitting process could cut red tape 
for small businesses and expedite economic growth.
    9/8/17. Chairman Chabot introduced H.R. 3717, the 
bipartisan Small Business Owners' Tax Simplification Act, to 
simplify income tax compliance for small businesses.
    9/11/17. Chairman Chabot sent a letter to Maureen 
Ohlhausen, Acting Chairman, Federal Trade Commission, 
expressing concern regarding the Equifax data breach and 
requesting documents on small businesses affected.
    9/12/17. Chairman Chabot sent a letter to Richard F. Smith, 
Chairman and CEO, Equifax, requesting information on small 
businesses affected by the Equifax data breach.
    9/12/17. Chairman Chabot sent a letter to Rep. Bradley 
Byrne, Chairman, House Education and Workforce Subcommittee on 
Workforce Protections, and Rep. Tim Walberg, Chairman, House 
Education and Workforce Subcommittee on Health, Employment, 
Labor and Pensions, regarding the effect of the National Labor 
Relations Board's joint employer standard on small firms.
    9/8/17. Chairman Chabot sent a letter to The Honorable 
Christopher Wray, Director, Federal Bureau of Investigation, 
requesting a briefing on the threats that small business owners 
face from state actors in cyber attacks.
    10/2/17. Following a Committee hearing on May 30, 2017 on 
the SBA Office of the Inspector General (OIG) audit of SBA's 
Fiscal Year 2014 Voluntary Early Retirement Authority (VERA) 
and Voluntary Separation Incentive Payment (VSIP) programs, 
Chairman Chabot co-signed a letter by Vice Chairman Blaine 
Luetkemeyer to Kathleen McGettigan, Acting Director, United 
States Office of Personnel Management (OPM), requesting OPM's 
oversight plan for the VERA and VSIP programs.
    10/26/17. Chairman Chabot and Ranking Member Velazquez sent 
a letter to Rep. Kevin Brady, Chairman, Committee on Ways and 
Means, and Rep. Richard Neal, Ranking Member, Committee on Ways 
and Means, requesting that the Committee consider H.R. 3717, 
Chairman Chabot and Ranking Member Velazquez's legislation to 
update the tax code for small businesses, startups and 
entrepreneurs.
    11/30/17. A recent report by the Government Accountability 
Office (GAO) found that many federal agencies have not complied 
with the requirements of Sections 15(k)(8) and 15(k)(11) of the 
Small Business Act, including that the head of each agency's 
Office of Small and Disadvantaged Business Utilization (OSBDU) 
be a member of the federal government's Senior Executive 
Service. Chairman Chabot sent letters to fourteen agency heads 
requesting information on their plans to comply with these 
provisions: the Department of Commerce, Department of Labor, 
Department of Education, Department of Housing and Urban 
Development, Department of State, Department of the Treasury, 
Department of Energy, Department of the Interior, Office of 
Personnel Management, National Aeronautics and Space 
Administration, Social Security Administration, and 
Environmental Protection Agency.
    11/21/17. Chairman Chabot and Greg Walden, Chairman, House 
Energy and Commerce Committee, sent a letter to Scott Pruitt, 
Administrator, United States Environmental Protection Agency 
(EPA), expressing concern that EPA had not met its full level 
of Research and Development funding for the Small Business 
Innovation and Research (SBIR) Program as required by the Small 
Business Act, and requesting information on how EPA plans to 
comply with the Act.
    12/6/17. Chairman Chabot and Ranking Member Velazquez sent 
a letter to GAO requesting a report on procurement challenges 
of small and mid-tier businesses that are growing out of small 
business set asides but not yet able to compete in the open 
procurement market.
    12/11/17. Chairman Chabot and Members of the Ohio 
Congressional delegation sent a letter to James Risch, 
Chairman, Senate Committee on Small Business and 
Entrepreneurship, and Jeanne Shaheen, Ranking Member, Senate 
Committee on Small Business and Entrepreneurship, supporting 
the confirmation of David C. Tryon, nominee for the position of 
Small Business Administration Chief Counsel for Advocacy.
    12/14/17. Subcommittee on Agriculture, Energy, and Trade 
Chairman Rod Blum sent a letter to Joseph Shepard, Associate 
Administrator, Office of Investment and Innovation, SBA, 
requesting information on the SBIC Program's licensing process.
    12/14/17. Chairman Chabot sent a letter to Internal Revenue 
Service (IRS) Acting Commissioner David Kautter requesting 
information about the IRS' application of Affordable Care Act 
employer mandate penalty payments to small businesses.
    12/15/17. Chairman Chabot, Ranking Member Velazquez, 
Chairman Knight and Ranking Member Murphy sent a letter to Mick 
Mulvaney, Director, Office of Management and Budget, requesting 
the extension of accelerated contract payments to small 
contractors and subcontractors.
    1/8/18. Chairman Chabot introduced H.R. 4743, the Small 
Business 7(a) Lending Oversight Reform Act, which would 
strengthen oversight and bolster the integrity of the SBA's 
7(a) Loan Program for small businesses and taxpayers.
    2/28/2018. Chairman Chabot and Ranking Member Velazquez 
sent a letter to William Manger, Associate Administrator, 
Office of Capital Access, Small Business Administration, 
regarding the delay in processing SBA 504 Loan Program 
Concentrated Animal Feeding Operation loans due to the National 
Environmental Policy Act (NEPA).
    2/28/18. The Government Accountability Office (GAO) 
released a report, requested by Chairman Chabot, at the 
Committee's hearing on February 28, 2018. The report examined 
the challenge of compliance with financial regulations for the 
nation's small community banks and credit unions. GAO found 
that regulations for reporting mortgage characteristics were 
the most burdensome because these regulations were complex, 
require individual reports, added significant time to loan 
closings, and resulted in the charging of fees. In addition, 
some compliance burdens arose from misunderstanding disclosure 
regulations, which led to institutions taking action that were 
not required.
    3/5/18. Chairman Chabot sent a letter to Marvin Kramer, 
Chairman, National Labor Relations Board, expressing concern 
about the Board's action to vacate its decision in the Hy-Brand 
Industrial Contractors, Ltd. and Brandt Construction Co. joint 
employer standard case.
    3/16/18. Chairman Chabot sent a letter to Major L. Clark 
III, Acting Chief Counsel, Office of Advocacy, Small Business 
Administration, requesting a study of occupational licensing as 
a barrier to starting and growing small businesses.
    4/11/18. Chairman Chabot and Subcommittee on Economic 
Growth, Tax, and Capital Access Chairman Dave Brat sent a 
letter to Maureen K. Ohlhausen, Acting Chairman, Federal Trade 
Commission, recapping the Committee's hearings on occupational 
licensing as a barrier to small business growth and job 
creation.
    4/11/18. Chairman Chabot and Subcommittee on Economic 
Growth, Tax and Capital Access Subcommittee Chairman Dave Brat 
sent a letter to R. Alexander Acosta, United States Secretary 
of Labor, recapping the Committee's hearings on occupational 
licensing as a barrier to small business growth and job 
creation.
    4/11/18. Chairman Chabot and Subcommittee on Economic 
Growth, Tax, and Capital Access Subcommittee Chairman Dave Brat 
sent a letter to Major Clark, III, Acting Chief Counsel for 
Advocacy, Small Business Administration, requesting a study on 
occupational licensing as a barrier to small business growth 
and job growth.
    4/12/18. Chairman Chabot, Ranking Member Velazquez, 
Contracting and Workforce Subcommittee Chairman Knight and 
Contracting and Workforce Subcommittee Ranking Member Stephanie 
Murphy sent a letter to The Honorable Mick Mulvaney, Director, 
Office of Management and Budget, requesting a briefing on OMB's 
Memorandums M-11-32 and M-12-16 regarding accelerated payments 
for small federal contractors and the need for H.R. 5337, the 
Accelerated Payments for Small Businesses Act of 2018.
    5/1/18. Chairman Chabot and Ranking Member Velazquez sent 
letters to 54 federal agencies requesting compliance with the 
Small Business Regulatory Enforcement Fairness Act of 1996 
(Pub. L. No. 104-12) as amended by the Fair Minimum Wage Act of 
2007 (Pub. L. No. 110-28), which requires agencies to report to 
Congress on its compliance with the statute, including the 
publication of small entity compliance guides, which explain 
the actions a small entity must take to comply with agency 
rules.
    6/5/18. Representative Brat and Representative Evans sent a 
letter to Sunita B. Lough, Project Director, Tax Reform 
Implementation Office, Internal Revenue Service, requesting 
information on the IRS' Employee Plans Compliance Resolution 
System, the Self Correction Program and the Voluntary 
Compliance Program, following the Subcommittee on 
Investigations, Oversight and Regulations' April 17, 2018 
hearing on small business retirement plans and Revenue 
Procedure 2018-14.
    6/15/18. Chairman Chabot and Ranking Member Velazquez sent 
a letter to Gene Dodaro, Comptroller General, Government 
Accountability Office, requesting that GAO report on the state 
of the Small Business Administration's disaster program and its 
performance during Hurricanes Harvey, Irma and Maria.
    7/23/18. Chairman Chabot, Ranking Member Velazquez, Bob 
Goodlatte, Chairman, House Judiciary Committee, and Jerrold 
Nadler, Ranking Member, House Judiciary Committee, sent a 
letter to Linda McMahon, Administrator, United Small Business 
Administration, requesting her input on H.R. 6389, legislation 
to restate the Small Business Act and the Small Business 
Investment Act of 1958, and enact a new positive law title of 
the United States Code.
    7/27/18. Chairman Chabot and Ranking Member Velazquez sent 
a letter to Russell Golden, Chairman, Financial Accounting 
Standards Board (FASB), requesting a staff briefing on FASB's 
Accounting Standards Codification 606, Revenue from Contracts 
with Customers.
    8/2/18. Chairman Chabot, Ranking Member Velazquez, Chairman 
Risch, and Ranking Member Cardin sent a letter to SBA 
Administrator McMahon requesting the status of the report 
required by the Fiscal Year 2018 National Defense Authorization 
Act on the utilization of small businesses in multiple award 
federal contracts.
    8/16/18. Chairman Chabot, Ranking Member Velazquez, 
Chairman Risch and Ranking Member Cardin sent a letter to Gene 
Dodaro, Comptroller General, Government Accountability Office, 
requesting a study of the actions federal agencies are taking 
to determine prime contractors' compliance with subcontracting 
plans.
    8/10/18. Chairman Chabot sent letters to Gene Dodaro, 
Comptroller General, Government Accountability Office, asking 
to become a co-requestor on two GAO studies: (1) a study of the 
SEA's implementation of the reforms to the Women Owned Small 
Business Program in the National Defense Authorization Act of 
2015; and (2) a study of the role of Procurement Center 
Representatives in the implementation of the Small Business 
Administration's federal contracting program.
    8/14/18. Chairman Chabot, Representative Rod Blum, and 
Representative Trent Kelly sent a letter to R. Alexander 
Acosta, Secretary of Labor, and Ms. Loren Sweatt, Deputy 
Assistant Secretary of Labor, requesting that the Department 
review the scope of its Cranes and Derricks in Construction 
regulation.
    8/23/18. Chairman Chabot, Representative Blum, and 
Representative Brat sent a letter to The Honorable Sonny 
Perdue, Secretary, United States Department of Agriculture, 
asking the Secretary and his Agriculture and Rural Prosperity 
Task Force to work with the Committee to increase rural small 
businesses' access to capital.
    9/6/18. Chairman Chabot and Ranking Member Velazquez sent 
letters to The Honorable Alex Azar II, Secretary, Department of 
Health and Human Services; The Honorable Rick Perry, Secretary, 
Department of Energy; and The Honorable Ryan Zinke, Secretary, 
Department of Interior, requesting agency compliance with the 
Small Business Regulatory Enforcement Fairness Act, Pub. L. No. 
104-121.
    9/13/18. Chairman Chabot, Ranking Member Velazquez and 
Representative Mo Brooks sent a letter to Lesley Field, Acting 
Administrator, Office of Federal Procurement Policy, Office of 
Management and Budget, expressing concern that the changes to 
the limits on federal contracting for full or partial small 
business set-aside contracts made by the United States Small 
Business Administration and Section 1651 of Public Law 112-239, 
the National Defense Authorization Act for Fiscal Year 2013, 
have not been made.
    9/25/18. Chairman Chabot, Chairman Risch, Ranking Member 
Velazquez and Ranking Member Cardin sent a letter to SBA 
Administrator Linda McMahon requesting that SBA work closely 
with the Interagency Working Group on Cooperative Development 
to advocate for employee ownership of small businesses.
    9/14/18. Chairman Chabot and Ranking Member Velazquez sent 
a letter to Gene Dodaro, Comptroller General of the United 
States, Government Accountability Office, requesting to join 
Senator Claire McCaskill, Ranking Member, Senate Committee on 
Homeland Security and Government Affairs, and Senator Tom 
Carper's, Ranking Member, Senate Permanent Committee on 
Investigations, request that GAO investigate and report on the 
Administration's category management initiative.
    9/27/18. Chairman Chabot, Chairman Risch, and Ranking 
Member Velazquez sent a letter to SBA Administrator Linda 
McMahon encouraging SBA to delay the implementation of the new 
State Trade Export Program (STEP) policy due to inadequate 
notice and the need for clearly delineated guidelines on the 
implementation of the policy so small businesses have more time 
to review the changes.
    10/12/18. Chairman Chabot and Ranking Member Velazquez sent 
a letter to The Honorable Joseph Simons, Chairman of the 
Federal Trade Commission (FTC), expressing alarm that small 
business concerns in the hearings around Competition and 
Consumer Protection in America's 21st Century were not being 
heard. The Chairman and Ranking Member urged the FTC to invite 
more small firms as witnesses to future hearings.

                                  [all]