U.S. GOVERNMENT PUBLISHING OFFICE

36–317 WASHINGTON : 2019

MEMBER DAY HEARING: COMMITTEE ON SMALL 

BUSINESS 

HEARING 

BEFORE THE

COMMITTEE ON SMALL BUSINESS 

UNITED STATES 

HOUSE OF REPRESENTATIVES 

ONE HUNDRED SIXTEENTH CONGRESS 

FIRST SESSION 

HEARING HELD 

MAY 15, 2019 

Small Business Committee Document Number 116–020 

Available via the GPO Website: www.govinfo.gov 

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Congress.#13
(II) 

HOUSE COMMITTEE ON SMALL BUSINESS 

NYDIA VELA ́ ZQUEZ, New York, Chairwoman 

ABBY FINKENAUER, Iowa 

JARED GOLDEN, Maine 

ANDY KIM, New Jersey 

JASON CROW, Colorado 

SHARICE DAVIDS, Kansas 

JUDY CHU, California 

MARC VEASEY, Texas 

DWIGHT EVANS, Pennsylvania 

BRAD SCHNEIDER, Illinois 

ADRIANO ESPAILLAT, New York 

ANTONIO DELGADO, New York 

CHRISSY HOULAHAN, Pennsylvania 

ANGIE CRAIG, Minnesota 

STEVE CHABOT, Ohio, Ranking Member 

AUMUA AMATA COLEMAN RADEWAGEN, American Samoa, Vice Ranking Member 

TRENT KELLY, Mississippi 

TROY BALDERSON, Ohio 

KEVIN HERN, Oklahoma 

JIM HAGEDORN, Minnesota 

PETE STAUBER, Minnesota 

TIM BURCHETT, Tennessee 

ROSS SPANO, Florida 

JOHN JOYCE, Pennsylvania 

ADAM MINEHARDT, Majority Staff Director 

MELISSA JUNG, Majority Deputy Staff Director and Chief Counsel 

KEVIN FITZPATRICK, Staff Director 

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C O N T E N T S 

OPENING STATEMENTS 

Page 

Hon. Nydia Vela ́zquez ............................................................................................. 1 

Hon. Steve Chabot ................................................................................................... 2 

WITNESSES 

Hon. Ed Case, Member of Congress, U.S. House of Representatives, Washington, DC ............................................................................................................. 3 

Hon. Tony Ca ́ rdenas, Member of Congress, U.S. House of Representatives, 

Washington, DC ................................................................................................... 5 

APPENDIX 

Prepared Statements: 

Hon. Ed Case, Member of Congress, U.S. House of Representatives, 

Washington, DC ............................................................................................ 8 

Hon. Tony Ca ́ rdenas, Member of Congress, U.S. House of Representatives, Washington, DC .................................................................................. 10 

Questions for the Record: 

None. 

Answers for the Record: 

None. 

Additional Material for the Record: 

Hon. Gil Cisneros, Member of Congress, U.S. House of Representatives, 

Washington, DC ............................................................................................ 12 

Hon. Andy Levin, Member of Congress, U.S. House of Representatives, 

Washington, DC ............................................................................................ 14 

Hon. Gregorio Kilili Camacho Sablan, U.S. House of Representatives, 

Washington, DC ............................................................................................ 18 

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MEMBER DAY HEARING: COMMITTEE ON 

SMALL BUSINESS 

WEDNESDAY, MAY 15, 2019 

HOUSE OF REPRESENTATIVES, 

COMMITTEE ON SMALL BUSINESS, 

Washington, DC. 

The committee met, pursuant to call, at 11:40 a.m., in Room 

2360, Rayburn House Office Building. Hon. Nydia Vela ́zquez 

[chairwoman of the Committee] presiding. 

Present: Representatives Vela ́zquez, Kim, Veasey, Delgado, 

Chabot, Kelly, Hagedorn, and Burchett. 

Chairwoman VELA ́ ZQUEZ. Good morning. The committee will 

come to order. 

I thank everyone for joining us this morning, and I want to, especially, thank my colleagues for joining us today for the House Committee on Small Business Members Day hearing. Today is a chance 

for the committee to hear directly from our fellow members of Congress about their priorities for supporting programs and policies 

that promote small business creation and growth. 

Our nation’s nearly 30 million small businesses support 56 million jobs and can be found in every sector of the economy and in 

every congressional district in the country. On this committee, we 

probably represent parts of America from our northeastern coastal 

cities to our rural heartland and communities out west. And I know 

that when we travel back to our districts, we are eager to hear 

from our local businesses to understand what policies are working 

for them and what can we improve. 

For the members testifying here today, I know that you are also 

gathering feedback from Main Street businesses in your districts, 

and I look forward to hearing more throughout this hearing. 

On this committee, we oversee a wide range of policies and programs dedicated to supporting American entrepreneurs and small 

companies. We strive to support the budding entrepreneur by making it easier to access affordable loans and advocate for fair and 

true tax relief for small business. It is also the mission of this committee to open the lucrative federal marketplace to entrepreneurs, 

reduce onerous paperwork, and give small companies the tools they 

need to take care of their employees and build their companies. 

And we do so while working with our Republican colleagues. 

Our committee has a long history of working in a bipartisan 

manner because at the end of the day we all agree that small businesses truly are the backbone of our economy. They are what unify 

us in our work and hold together our local communities. 

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Today, we have the chance to engage in an open dialogue on how 

we can collaborate to support small firms. Thank you again to all 

members for being with us today. I look forward to our discussion 

and to working on your ideas to foster an environment that promotes small business entrepreneurship and job creation in communities across this country. 

I now would like to yield to the Ranking Member, Mr. Chabot, 

for his opening statement. 

Mr. CHABOT. Thank you, Madam Chair. And as we begin, I 

would just point out that both the current Chair, Ms. Vela ́zquez 

and I have served on this Committee for over 2 decades now, and 

we have both served as Chair and we have both served as Ranking 

Member, but one thing that we do do is work together in a bipartisan manner and that is one of the reasons this is one of the most 

productive Committees I believe in the House, and we are going to 

continue to do that. So I thank her for that. 

It has been quite some time since we have had a Small Business 

Committee Day where we have hosted Member Day like this, allowing other Members of Congress to come in and tell us what is 

working, maybe what is not working in some cases in their communities. It kind of broadens our perspective on what is happening 

around the country. It gives us a broader, I think, world view of 

things and what issues they are facing. We kind of have, those of 

us on the Committee, we sort of have small business on the brain. 

We think about this all the time and not to the exclusion of everything else because most of us are on other Committees. I happen 

to be on Judiciary, where we just discussed executive privilege and 

a whole range of things. Last week, we were finding the Attorney 

General in contempt, and so we all are on other Committees that 

do interesting things. And I am also on Foreign Affairs and there 

is always something happening around the world, but none of that 

is as important, as far as I am concerned, as the backbone of the 

American economy. And that is America’s small business, about 30 

million of those. 

So we are here to listen today and to learn, and so I want to 

thank Representative Case who had the opportunity to serve some 

years ago, and he had a sabbatical there for a while and now he 

is back and better than ever. And refreshed. And I kind of had that 

experience as well, except I lost when I left here. You went out voluntarily and ran somewhere else and then came back. So it is better to do it the way you did it than the way I did it. So, but we 

welcome you back, and I will yield back, Madam Chair. 

Chairwoman VELA ́ ZQUEZ. Thank you, Mr. Chabot. And the 

gentleman yields back. 

And if committee members have an opening statement, we will 

ask that they be submitted for the record. 

I also ask unanimous consent that Representative Sablan’s statement in support of his bill, H.R. 2603, be submitted for the record. 

Without objection, so ordered. 

I will begin by introducing Mr. Case, Congressman Case, proudly 

represents Hawaii’s 1st Congressional District. Mr. Case was born 

and raised in Hilo. His great grandparents on his father’s side immigrated to Hawaii in 1896 from Kansas, and his family has lived 

in many of the state’s islands over the generations since. Before 

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joining Congress, Mr. Case spent 2 decades at the Honolulu law 

firm of Carlsmith Ball, where he rose to managing partner. Congressman Case serves on the Appropriations Committee, and I am 

also proud to serve with him on the Natural Resources Committee. 

Welcome, sir. You are recognized for 5 minutes. 

THE HONORABLE ED CASE, A REPRESENTATIVE IN CONGRESS 

FROM THE STATE OF HAWAII 

Mr. CASE. Thank you for that very kind introduction from both 

of you. It is great to be back in Congress, and it is great to be back 

with this Committee where I spent my own time. I served on this 

Committee, and it is good to share some thoughts with you again. 

I want to share those thoughts on issues of importance to our 

small business community, both nationally and in my home state 

of Hawaii. As you may remember from my prior service on the 

Committee, my focus is not only on keeping small business strong 

throughout our country but on protecting and expanding on Small 

Business Administration programs that support some of Nation’s 

underrepresented populations and on insuring a level playing field 

between small business and large government contractors operating especially in Hawaii, issues that are not uncommon throughout the country. 

I want to begin by stressing that small business truly is the key 

to the success of our economy in Hawaii. According to the SBA, 99 

percent of businesses in Hawaii are small business, and a clear majority of employees in Hawaii are employed by small business. 

These small businesses are the engine of the economy in my home 

state and thus, as national small business goes, so also does Hawaii business. 

Given the rich, ethnic diversity in Hawaii, minority-based programs are particularly important in my home state. Almost 93 percent of small businesses in Hawaii are minority-owned. They depend on and have received great benefit from programs such as the 

8(a) Business Development Program and the HUBZone program, 

which help provide a level playing field for small businesses owned 

by socially and economically disadvantaged peoples in historically 

underutilized business zones. 

Additionally, the Microloan Technical Assistance Program has 

been a great help in the development of native Hawaiian businesses, and the Women-owned Small Business Federal Contracting 

Program provides Federal opportunities to industries where 

women-owned small businesses are underrepresented. The continuation of these programs is needed to empower some of our Nation’s 

underrepresented populations that are the true drivers of Hawaii’s 

small businesses. 

Furthermore, there are many great trade opportunities for Hawaii’s small business given its place in the Indo-Pacific region. Hawaii exported $647 million in goods to 100 countries in 2018 with 

small businesses generating 64 percent of those total exports. The 

state’s large market in 2018 was South Korea at $222 million, followed by Singapore, Japan, China, and Taiwan. With the world’s 

fastest growing global markets in the Indo-Pacific, keeping trade 

open within this region is crucial to Hawaii’s economy and our Nation’s standing in the region. 

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The State Trade and Export Promotion Grant Initiative and 

international trade loans have been vital components in developing 

Hawaii’s small business for trade with these foreign markets, and 

I urge you to continue this Committee’s longstanding support for 

these programs. 

Additionally, the Federal Government, primarily through the Department of Defense, is the largest source of Federal dollars in Hawaii, and it is important to make sure that small local businesses 

have a fair chance to compete for defense dollars. This is why I introduced legislation in my prior service in Congress which would 

help to guarantee small business’s place in Federal contracting 

through such means as combatting contracting bundling. 

I would appreciate working with your Committee to continue this 

fight to help ensure that huge corporations do not just vacuum up 

and win all of the defense contracts, even though small business 

throughout our country, and Hawaii’s small business particularly, 

are equally, if not better qualified to do the work. 

Finally, I want to briefly highlight the importance of the SBA’s 

Contracting Assistance Programs in Hawaii. With 1 in 10 residents 

of Hawaii being a veteran, the Service-disabled, Veteran-owned 

Small Business Program has assisted numerous veterans in the 

state transition from military service to successful business owners. 

It is critical for this Congress to continue our Government’s commitment to our veterans. 

In closing, thank you to all of you for your leadership in helping 

our Nation’s small businesses, which I believe is a truly nonpartisan, bipartisan effort, and has been on this Committee, and 

specially for your consideration of the needs of Hawaii’s small businesses. Mahalo. 

Mr. KIM. Well, thank you so much, Congressman, for coming on 

in here, and I am just taking the place of the Chairwoman temporarily here, but I appreciate you taking the time. And I just want 

to echo what the Ranking Member said, just how important it is 

for us to be able to hear about the different challenges and opportunities that small businesses are facing in every single corner of 

our country. So I appreciate you taking the time to come on out. 

I want to be mindful of your time as well. I know we are all very 

busy as well, so I just wanted to open it up and see if there were 

any particular questions for the Congressman while he is here; otherwise, we will take a brief recess until our other witness arrives. 

But I just wanted to open it up. 

Ranking member, anybody else, if you have any questions for the 

Congressman? 

Mr. CHABOT. We informed our folks we would not ask any questions. We usually do not do that with the members. 

Mr. KIM. Sure. 

Mr. CHABOT. And I was just thinking, I do not know when Mr. 

Ca ́ rdenas is going to get here but I would have no objection to entering his statement into the record in full and that way we could 

accommodate him and everybody else here, too. 

Mr. KIM. Okay. Well, thank you so much. 

We are just going to take a very brief recess, see if our next witness arrives, and then we will proceed. 

[Recess] 

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Mr. KIM. I would like to call the Committee back to order as we 

have the Congressman here who was first elected to the United 

States House of Representatives in 2013 for the 113th Congress 

and has represented California’s 29th District ever since. Has been 

a leading voice representing the San Fernando Valley with a passion and commitment, and serves on the Energy and Commerce 

Committee. He is also a member of the Congressional Hispanic 

Caucus. 

Welcome to our Committee. 

Why do we not just jump right in as we just want to make sure 

we are mindful of everyone’s time? So Congressman, over to you. 

You are recognized for 5 minutes. 

THE HONORABLE TONY CA ́ RDENAS, A REPRESENTATIVE IN 

CONGRESS FROM THE STATE OF CALIFORNIA 

Mr. CA ́ RDENAS. Thank you, Mr. Chairman. I appreciate this opportunity. 

When I came to Congress, I was not familiar with the fact that 

when members in that legislative body, it is not the custom and 

practice up here for members to actually present to the Committee, 

so I really appreciate this opportunity that this Small Business 

Committee is allowing and affording us to share because it is really 

important that we constantly have an opportunity to remind the 

people that we represent that we represent our districts, we represent our states, but we represent all of America. And one of the 

things that I would like to point out about small businesses is that 

I think Americans do not realize how prolific and how important 

small businesses are to everyday lives across this great Nation. 

Whether you are in the smallest town in America or you are in the 

biggest city, I think the numbers bear out that a large percentage 

of the folks who feed their family are actually working in a small 

business. And being a representative in the northeast San Fernando Valley where the vast majority of the individuals who live 

in my district are Hispanic, it is important for me to also point out 

that one of the fastest growing groups of small businesses in American for the last few years and going forward appear to be the Hispanic small businesses, both women and men-owned businesses. 

Myself, over 22 years ago, I fed my family, completely on commission of owning my own business, and it was something that I 

was very, very proud of. And I take that with me in every office 

that I have actually represented over the last 22 years. My ability 

to realize that I was responsible for the front end of a paystub. 

That I was responsible for making sure that when people walk 

through those doors of my business, I had to try very hard that I 

made good decisions for everybody, not just for my family but for 

the dozens of families that depended on my business staying open 

every time they got up and went to work and made sure that door 

was unlocked and available for them to feed their family. And that 

is what is going on across America. 

A few things that I would like to point out that are important 

not only to me and my community but I think important to all 

Americans, especially small businesses, is that the Federal Government has a tremendous role to play when it comes to access to capital. I remember owning my business that when I had access to 

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capital and I had a great idea and I was able to expand my business, it was having access to capital that allowed me to move forward at the rate and speed that I knew I could and should in order 

to grow my business responsibility. And I remember those times 

when I had to wait for the capital or keep going from one bank to 

another to another to another to get that small business loan to expand my business. What happened, ladies and gentlemen, is that 

that did not afford me to hire more people because every time I expanded my business, along with that meant that more families got 

to feed themselves because I hired one of their family members to 

work for me. And it is really important that we realize that the 

Federal Government in the greatest Nation on earth has a tremendous responsibility to responsibly allow small businesses access to 

capital. And that might mean a small business loan of maybe 

$5,000 or $10,000 or what have you, that I can guarantee you will 

eventually mean that that same business that got a small business 

loan for less than $25,000, some day is going to end up looking to 

get a loan to maybe buy the building that they have been occupying for many years. Or to maybe even expand and buy the building next door so they could actually double their ability to produce. 

And those are the kinds of things that I think that are important 

not only to us as legislators but it is important to every single community that needs to make sure that businesses are not thwarted, 

businesses do not slow down, that that progress that people work 

very hard to make continues at a pace that is organic and natural 

to that business and to that community. 

So in a nutshell, to me, when I think of small businesses, I think 

of jobs. When I think of small businesses, I think of that business 

owner who knows the name not only of their workers but actually 

knows the name of the children of those workers. Actually knows 

and comes in and says, hey, how is your mom, how was her surgery last week, et cetera. Those are the kinds of relationships that 

small businesses create that maybe some larger businesses are 

lucky and fortunate to have that kind of relationship with the people that they depend on every single day. But I think that is at the 

core of what makes small businesses wonderful, great, and such an 

organic, important part of every corner of America. 

So what I am here to remind all of us is we are fortunate to be 

in the United States Congress. We are fortunate to have the responsibility of making policy. But let us not ever forget that every 

single day there are men and women in small businesses that are 

working 50, 60, 70, 100 hours a week to make sure that they keep 

those doors open, and that means that the families that work there 

and the community they serve are actually benefitting from that. 

So thank you very much for this opportunity. 

Mr. KIM. Thank you very much, Congressman, for your passionate words there. I can really hear in your voice just the commitment that you have to your constituents and the small businesses there, and it really hits on that connection of just community, you know, the community that many small business owners, 

employees, and others are forming. And that is why they have become the backbone and continue to be the backbone of our society 

and our communities as well. 

I just want to pause here before we conclude. 

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Would any other member of the Committee like to be recognized 

at this moment? 

If there are no other comments, I would like to conclude this 

hearing by once again thanking my colleagues for being here today. 

I can hear the passion and the enthusiasm in your voice when you 

talk about the ways to strengthen our Nation’s small businesses. 

Many of the issues that you have raised and others have raised 

about affordable capital and providing these opportunities, they are 

the work that we here in this Committee in the 116th Congress are 

dedicated to be able to do, working together across the aisle to give 

voice to small businesses and make sure they are not being left behind in any policy initiatives or in infrastructure or tax policies. 

I encourage you to work with our staff here, our colleagues, on 

the legislation that we are talking about and we are trying to figure out how to address to move forward to address the issues that 

you are doing and we are going to do everything we can to work 

in a nonpartisan way to be able to achieve those. 

I ask unanimous consent that members have 5 legislative days 

to submit statements and supporting materials for the record. 

Without objection, so ordered. 

If there is no further business to come before the Committee, we 

are adjourned. Thank you. 

[Whereupon, at 12:03 p.m., the committee was adjourned.] 

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A P P E N D I X 

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·'Member Day Hearing: Committee on Small Business" 

Testimony of Congressman Ed Case 

May 15, 20!9 

Chairwoman Velazquez, Ranking Member Chabot and members of the Small Business 

Committee, 

Thank you for allowing me to share my thoughts with the Committee on issues important to our 

small business committee both nationally and in my home state ofHawai'i. As you may 

remember from my prior service on this Committee, my focus is not only on keeping small 

business strong throughout our country, but on protecting and expanding Small Business 

Administration (SBA) programs that support some of our nation's under-represented populations 

and on ensuring a level playing field between small businesses and large government contractors 

operating in Hawai'i. 

I want to begin by stressing that small businesses are key to the success of Hawaii's economy. 

According to the SBA, 99% of businesses in Hawai·i are small businesses, and a majority of 

employees in Hawai' i are employed by small businesses. These small businesses are the engine 

of the economy in my home state, and thus as national small business goes so also does Hawaii 

business. 

Given the rich ethnic diversity in Hawai' i, minority-based programs are particularly important to 

Hawai' i. Almost 93% of small businesses in Hawai' i are minority-owned. They depend on and 

have received great benefit from programs such as the 8(a) Business Development program and 

the HUBZone program, which help provide a level playing field for small businesses owned by 

socially and economically disadvantaged people and historically underutilizcd business zones. 

Additionally, the Microloan Technical Assistance Program has been a great help in the 

development of Native Hawaiian businesses, and the Women-Owned Small Business Federal 

Contracting program provides federal opportunities to industries where women-owned small 

businesses are underrepresented. The continuation of these programs is needed to empower some 

of our nation's under-represented populations that are the true drivers of Hawaii's small 

businesses. 

Furthermore, there are many great trade opportunities for Hawai'i businesses given its place in 

the Indo-Pacific. Hawai'i exported $647 million in goods to 100 countries in 2018, with small 

businesses generating 64% of those total exports, The state's largest market in 2018 was South 

Korea ($222 million), followed by Singapore ($1 06 million), Japan ($72 million), China ($36 

million) and Taiwan ($21 million). With the world's fastest growing global markets in the IndoPacific, keeping trade open within this region crucial to Hawaii's economy and our nation's 

standing in the region. The State Trade and Export Promotion Grant Initiative and International 

Trade Loans have been vital components in developing Hawai'i small businesses for trade with 

these foreign markets. I urge you to continue to support these programs. 

Additionally, the Department of Defense is the largest source of federal dollars in Hawai'i. It's 

important to make sure that small, local businesses have a fair chance to compete for Defense 

dollars. This why I introduced the Small Business Federal Contractor Safeguard Act during my 
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prior service in Congress, which combated contracting bundling. l would appreciate working 

with your committee to continue the fight to help ensure huge corporations cannot not simply 

swoop in and win Defense contracts, even though Hawaii's small businesses are equally if not 

better qualified do the work. 

Finally, I want to briefly highlight the importance of the SBA 's Contracting Assistance Programs 

in Hawai'i. With I in I 0 residents ofHawai'i being a veteran, the Service-Disabled VeteranOwned Small Businesses program has assisted numerous veterans in the state transition from 

military service to successful business owners. It is critical for this Congress to continue our 

government's commitment to our veterans. 

In closing, thank you for your leadership in helping our nation's small businesses and for your 

consideration of the needs of Hawaii's small businesses. 
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Testimony 

Rep. Tony Cardenas 

As a previous small business owner and Engineer, I understand the important role small businesses have 

in every community. During my 22 years as an elected official, and my time here in Congress, I have 

dedicated my career to ensuring that small businesses are equipped with skilled workers and are 

provided with incentives to help them grow, while also addressing the unnecessary regulations that slow 

down small businesses and their opportunity to prosper. Last week, and with the support of over 50 of 

my colleagues, lied House Resolution 360 to honor the vital role of small business and the passion of 

entrepreneurs in the United States. 

Improving success among women and minority-owned small businesses in the United States is a major 

priority. According to a study by the U.S. Hispanic Chamber of Commerce, about 4.4 million Latinaowned small businesses in the U.S. contribute more than $700 billion to the economy annually, $700 

Billion. The report highlights Latina-owned companies which have grown 31.6 percent since 2012, more 

than double the growth rate of all businesses across America. 

The U.S. Small Business Administration released its report in August 2018 noting that in 2012, there 

were 9.9 million women-owned firms, and 2.5 million firms owned equally by men and women. This 

means that 12.3 million firms, or 45 percent of all classified firms, were at least 50 percent womenowned. 

Additionally, California small businesses employ half or 7 million of the state's private workforce in 2018 

and created over 280,000 net new jobs in 2015. The biggest gain was in firms employing fewer than 20 

employees. 

The achievements of Latino and women-owned small businesses are impressive when you consider it is 

often difficult for them to gain access to capital. Yet they are making progress. 

My district in California, the San Fernando Valley, is home to an array of small businesses, including 

aerospace, Hollywood Studio Soundstages and back lots, and engineering to name a few. I've had the 

opportunity to visit and tour dozens of manufacturing companies in the San Fernando Valley and 

throughout the Los Angeles region. Through the Small Business and Manufacturing Roundtables I've 

held in my district, and the guidance from my Manufacturing Advisory Board, I've had the opportunity to 

hear first-hand from the business owners in and around my district. I was proud to be a part of the 

group that led Southern California representatives in helping create access to a pool of $1.3 billion in 

federal development assistance for the region through the federal Investing in Manufacturing 

Communities Partnership. 

This session, I encourage the Committee's consideration to bridge the skill gap between the available 

workforce and employers by investing in funding programs that will encourage the development of 

computer science career education programs that meet the market needs of employers and better 

integrate secondary and post-secondary education. Furthermore, I ask the Committee to consider 

legislation that promotes reforms in workforce education and skills training for American Manufacturing 

jobs, as well as, promotes innovation and entrepreneurship of Latino and Women-owned businesses 

which continue to be a positive and powerful driving force in our country's economy. Lastly, I urge the 
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Committee to invest in targeted initiatives that develop and expand networks that can help women and 

minority business owners access needed resources such as financial capital, skill development training 

and mentorship programs which have a critical role in improving the economic performance of women 

and minority entrepreneurs. 

Thank you. 
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Gl L CISNEROS 

Representing CALIFORNIA'S 39th District 

MEMBER DAY TESTIMONY BEFORE THE 

HOUSE COMMITTEE ON SMALL BUSINESS 

May 15,2019 

Chairwoman Velazquez, Ranking Member Chabot, and members of the House Committee on 

Small Business, thank you for allowing me this opportunity to provide testimony on the issues 

affecting small businesses in my district. Small businesses arc incredibly important to my 

district and the State of California, as nearly half of all employees in the state work for a small 

business. I hope the information I share today will help inform your work as you examine 

policies to support small businesses nationwide. 

The Small Business Administration (SBA) runs several programs that have been incredibly 

helpful for small businesses in the 39'h district. I urge you to build on the successes of these 

programs and closely examine policies that will make them more accessible to small business 

owners. 

For instance, my district is lucky to have a Small Business Development Center (SBDC) at 

California State University, Fullerton (CSUF), which provides !l·ee and low-cost assistance to 

small business owners and aspiring entrepreneurs. The CSUF SBDC has been highly effective at 

helping individuals in my district expand and start new businesses, driving economic gro\~1h and 

job creation in our region. I urge you to support policies that enhance and build upon SBDC's 

documented success nationwide. 

Additionally, the SBA 7(a) loan guaranty program has benefitted over 1500 small businesses in 

California's 39th Congressional District alone since 2010. One such recipient, Bravo Roofing, a 

family owned business for over 25 years in my district, recently benefitted from an SBA loan for 

a municipal contract while paying a living wage to those who worked on it. However, they 

found the application process for this loan to be complicated and time-consuming, costing hours 

in labor. I urge you to examine policies to provide more hands-on support to family-owned 

businesses to ensure accessing assistance is not overly burdensome. Whether it's workshops or a 

direct representative assisting with the application process, providing more information to small 

businesses like Bravo's will open up more opportunities to access capital and grow our local 

economy. 

I urge you to examine and advance policies to support capital access to women and minority 

small business owners. Women business owners still face greater obstacles in obtaining 

financing for their businesses than similarly situated men do, with one study showing that 

women business owners get nearly 50 percent less in funding than their male counterparts. 
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Similarly, minority business owners are more likely to report unmet credit needs, with the 

Minority Business Development Agency finding that minority-owned firms had denial rates 

three times higher than non-minority businesses. In addition, a report by the SBA Office of 

Advocacy found that roughly 30 percent of minority entrepreneurs felt discouraged from 

applying for a loan, compared to 16 percent of non-minority entrepreneurs. Building on existing 

programs and examining new policies to add incentives for providing capital to women and 

minority owned small businesses will help close these gaps. 

For example, Women Business Centers have been a critical resource partner of the SBA to help 

women entrepreneurs start and grow their businesses. However, the maximum grant amount 

available from SBA to these centers has remained at $150,000 a year for 31 years in a row. 

Raising the cap on individual center grants could help advance women small businesses 

nationwide. Moreover, language barriers can exacerbate already complex processes and 

regulatory frameworks that many cannot understand without outside support. Supporting 

organizations that provide direct counseling in culturally competent and diverse languages can 

ensure that no individual is denied the opportunity to contribute to our economy. 

I encourage you to examine and advance policies to accelerate payments to small businesses that 

do work for the federal government. I have heard from many small businesses in my district 

who struggle with the complexities of the federal government bidding process and receiving 

payment for their work in a timely manner. Not only does this harm small businesses struggling 

to make payments to employees or subcontractors, constant delays can discourage quality small 

businesses from competing for federal work. Mitigating cash flow concerns will encourage 

small business participation in the federal marketplace, in turn driving competition and 

decreasing prices for the federal government. 

I urge you to closely examine the impact of tariffs on small businesses, and I strongly support 

Rep. Velazquez's expressed commitment to provide oversight on the President's escalating trade 

war. Small businesses play an important role internationally as they make up a steady 97 percent 

of all U.S. exporters, according to a 2015 report by the SBA. Several small businesses in my 

district, from the defense industry to the medical device industry, have reached out to me to share 

stories of how the President's trade policies and escalating tariffs arc increasing prices for 

themselves and their consumers. This particularly includes the vast number of Asian American 

owned businesses in my district. The ongoing uncertainty and threats of new tariffs creates an 

atmosphere of unpredictability and uncertainty that can inhibit growth and ingenuity. 

Finally, I would be remiss if! did not take this opportunity to thank Chairwoman Velazquez for 

her steadfast support and dedication to ensuring Puerto Rico fully recovers from the devastation 

of Hurricane Maria. I applaud the Chairwoman for successfully securing an amendment in the 

Fiscal Year 2019 National Defense Authorization Act to create economic opportunity in Puerto 

Rico. This provision inccntivizes federal agencies to award work to Puerto Rican businesses by 

allowing agencies to receive additional credit toward meeting contracting goals for awarding a 

prime contract to a Puerto Rican business. I stand ready to support the Chairwoman in any 

additional initiatives necessary to support ongoing recovery efforts in Puerto Rico. 

Thank you again for your time and consideration. I hope you will keep these stories in mind as 

you craft policies to assist small businesses nationwide in the 116'h Congress. 
14 

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CongrtlHS of tiJt ~lttiteb $$ltates 

j'!)uusc of l\eprcscntatibc!i 

[(il«51Jtl1g:ton, t!llli: 20515-2209 

Congressman Andy Levin 

Testimony for the Record: Members' Day Hearing of the House Committee 

on Small Business 

May 15,2019 

Chairwoman Vehlzqucz and Ranking Member Chabot: thank you for the opportunity to provide 

testimony on behalf of Michigan's Ninth Congrc;sional District as you craft legislation to 

strengthen our nation's small businesses. 

I would like to call attention to the critical role small businesses will play in moving our country 

towards a clean energy fuwre. Specifically, J will highlight three issues where there are naturdl 

synergies between the expansion of small businesses and the development of clean energy 

technologies and environmentally-friendly policies: workforce development, zero-net energy 

buildings, and electric vehicle (EV) charging infrastructure. 

Workforce Development 

As the United States creates and uses cleaner forms of energy, we must develop a workforce that 

cun meet new and evolving job demands within the clean energy industry. 

In 2018, the energy efficiency sector produced more than 76,000 new jobs~ more than any other 

energy sector.' The types of jobs created varied tremendously. For example, almost 21,000 jobs 

were construction trades, while 35,000 were professional services2 Most of this growth has 

occurred within the small business community: most of the 1.9 million energy efficiency workers 

1 National Association of State Energy Officials; Energy Futures Initiative. (2019). Tlze 2019 U.S. Energy & 

Employment Report. ll!(P5.~Hw ... \.~'.W..l.!"-~-'h·'r£JjQ!'5. nrg}20l 9.·.n:r.un 

'Ibid. 
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in the U.S. work for small businesses with five employees or Ieos, and about 70 percent work for 

companies with !Oemployces or less.' 

With this tremendous growth comes the need to develop a skilled workforce that can help small 

businesses thrive. Employers in the energy efficiency sector have reported difficulty finding 

qualified workers to fill open positions: in 2015, about three-quarters of employers said hiring was 

either "very" or "somewhat" difficult.4 According to employers, these difficulties were primarily 

due to applicants' insufficient experience, training, or technical skills5 

By investing in workforce development, Congress can help move our country even closer to the 

clean energy future and ensure that the small businesses that power the clean energy industry have 

the skilled workforce they need to succeed. These investments would be a win-win for small 

businesses, the economy, and our environment alike. 

Zero-net energv buildings 

In its 2015 Quadrennial Technology Review, the U.S. Depa11rnent of Energy found that the 

buildings sector accounts for about 76 percent of electricity use and 40 percent of all U.S. primary 

energy use and associated greenhouse gas emissions.6 The report also found that the 

implementation of the best available energy efficiency technologies in the nation's current building 

stock would reduce commercial energy consumption by 46 percent.7 

Inefficiency in our buildings has key implications for small businesses. which spend an estimated 

$60 billion per year on energy costs" Energy Star finds that strategic efficiency investments by 

small businesses can cut utility costs by 10 to 30 percent without sacrificing service or quality. 9 

Simply put: more energy-efficient buildings will mean more savings for our nation's small 

businesses. 

As a former clean energy entrepreneur, I have seen first-hand the potential to address our climate 

crisis through solutions that produce more efficient commercial buildings while also spurring cost 

3 Environmental Entrepreneurs (E2), E4TheFuture (2016). Energy Efficiency Jobs in America: A Comprehensive 

Analysis of Energy Efficiency Employmelll Across All 50 States hlJl~'>)/!-t4!h£IlttYr.£~.P!.:£!1:~~J!llit.nt!.U·:f:-t;r,g~ · 

~!Ik.~n:L~:illt:i::lt::Jt~! 

'Ibid. 

'Ibid. 

6 U.S, Department of Energy. (2015). An assessment of energy technologies and research opportunities. Qundrennial 

Technology Review. https://www.energy.gov/sltesfprod/files/2017/03/f34/qtr~2015~chapter5.pdf 

7 Ibid. 

11 Energy Star, U.S. Environmental Protection Agency (EPA). Small Businesses: A1r 0l'en1iew of Errergy Use and 

Energy Efficiency Opportunities. 

!uut~:/Jjy_\lf.lfi_t..·.n~rg}swr\goy/si!es/dcft~ult!J1lc;,_lhuildln_g:s{!o~1!">[S)~?r~,:;(1_0;~!~~~L2QE!l.~~cL;.Q(m_%20S_nmJJ:, ~J!lh!.'!-i_l)~~5-

s.nill' 

'Ibid. 
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savings and job growth. l believe we must move much faster with respect to the efficiency of both 

current and new building infrastructure, which is why I support requiring that all new buildings, 

including small businesses, be zero-net energy-i.e., new buildings should produce as much 

energy as they consume. To achieve this rapidly~ we must increase our investments in grant 

programs that establish or expand financing for small business energy efficiency projects. Such 

investments will help us reduce our carbon footprint, create jobs, and yield savings for America's 

small businesses. 

EV charging infrastructure 

Placing more EV charging stations at commercial locations across the United States is not just a 

smart investment in the health of our environment: it is an investment in small businesses. 

As our nation's transportation sector has become increasingly responsible for overall greenhouse 

gas emissions, plug-in EVs-which have 54 percent lower lifetime carbon pollution than 

conventional vehicles-can help us reduce emissions and move us closer to climate 

sustainability. 10·" Demand for EV chargers is only expected to grow in the coming decade: EV 

charging needs will rise from 6 billion kWh in 2020 to 53 billion kWh in 2030, and the number of 

chargers needed is estimated to rise from 2 million in 2020 to 13 million in 2030. 12 

I believe we need to lead the world in protecting our environment, and that must include improving 

EV consumer experiences w that we may end our dependence on conventional vehicles. "Range 

anxiety," charge times, and charging costs currently preclude the paradigm shift necessary for a 

sustainable automotive future. To encourage our country's needed shift to EVs, I plan to introduce 

a bill establishing a network of EV charging stations at small businesses and other locations along 

the National Highway System. 

A network of EV chargers like the one I have proposed would be a boon for America's small 

businesses. According the EV charging infrastructure company ChargcPoint, the installation of 

EV charging stations increases customer "dwell-time" at businesses significantly. 11 By investing 

in EV charging infrastmcture, we can afford small bu~inesscs the competitive edge they need to 

uttract customers. 

10 U.S. Environmental Prmection Agency (EPA). (2016). Inventory afVS Greenlw~tse Gas Emissions and Sinks. 

!:!l!.D5:!i\'(~'L\Y.&.DE.J;gyfl;il~~l!fQdu~'tii\n/fi.l.g_~tfQJ.3_:QJM'?~'..lli'iJDJ.1L£~!lilll~J.;;__i!;J!,~r1,e~f 

11 NRDC. (2015). Electric Vehicles Can Dramaricafly Reduce Carbon Pollution from Transportation and Improve 

AirQuality.~:!lwww.nrdc.~r,t;!i~J.Qlit:H?!!J.\<i:l.!..-:lb\Ll.~ill:..cls..'\.'1ri;:;:v~hi£l£~..:£m!:~I!i!!!l.~Jl£Elli.:I£.dtH..e:£ill"..llil!!:. 

pollmiiHl 

11 lbid. 

n ChargePoint. (2015}. Leading Retailer Partners with Charge Point to Auract and Retain Loyal Customers. 

htt,ps;//ww\v.ch<.~r_gcpoint.comi!llcs!ca~~.'!.nt4i~§lC:~:r):'l'!.il.Jl.tJf 
17 

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As the Committee considers legislation to strengthen our nation's small businesses, I respectfully 

request that you bear in mind their critical role in moving our country towards a clean energy future 

that fosters sustainability for our communities and our environment. By investing in workforce 

development, energy-efficient buildings, and EV charging infrastructure, we simultaneously invest 

in the success of our nation's small businesses. These investments will ensure the small business 

community has the workforce, resources, and technologies to stay competitive as our country 

evolves to lead the world in tackling our climate crisis. With the help of small businesses, America 

can be at the forefront in developing and adapting the technology and infrastructure needed to meet 

the challenges of the 21" century. 

Again, I thank you for your consideration. I look forward to working with you. 
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STATEMENT OF 

REPRESENTATIVE GREGORIO KILILI CAMACHO SABLAN 

BEFORE THE 

HOUSE COMMITTEE ON SMALL BUSINESS 

MAY 15,2019 

Chairwoman Velazquez, Ranking Member Chabot, and members of the committee, thank you 

for the opportunity to provide testimony in support of my bill, H.R. 2603, the Northern Mariana 

Islands Small Business Act, which would ensure small businesses in my district have access to 

the Small Business Administration's (SBA) Small Business Development Center (SBDC) Lead 

Center grant program, the Federal and State Technology (FAST) partnership grant program and 

the Micro loan program. The Mariana~ are the only U.S. jurisdiction not included in these 

programs, which help small businesses access the knowledge and capital necessary succeed and 

compete for federal contracting opportunities. 

Last fall, our islands were struck by two catastrophic natural disasters. Typhoon Mangkhut and 

Super Typhoon Yutu, the second most powerful storm ever in United States history, caused 

widespread destruction of homes, businesses, schools and infrastructure. Under presidential 

disaster declarations, the SBA set up temporary disaster recovery centers on Saipan, Tinian, and 

Rota to assist small businesses apply for loans and other funds to cover damages resulting from 

the storms. 

We are grateful for the SBA's assistance during these disasters. However, all SBA disaster 

outreach centers in the Marianas are now closed and our economy is projected to take years to 

fully recover. The SBA estimates there are over !, 700 small businesses in the Marianas which 

employ over 18,000 people. These businesses and employees do not have access to the full range 

ofSBA programs to help them fully recover. My bill would correct that by ensuring access on 

the same basis as their counterparts across the nation, many of whom are also recovering from 

natural disasters. 

Under my bill, the Marianas can apply to establish a Lead SBDC, which would make available 

around $600,000 in renewable funding to expand the reach and capacity of the existing SBDC 

service center on Saipan. With additional funding, small businesses on Saipan, Tinian and Rota 

will have better access to free or low-cost services such as incubator works paces for 

entrepreneurs, assistance with loan applications, business planning, operations, personnel 

administration, marketing, export assistance, sales and other areas required for small business 

growth and success. 

The bill would benefit aspiring entrepreneurs and small businesses owners in the Marianas who 

are not able to access conventional loans at commercial banks. This legislation would provide 

them access to the SBA's Microloan program which provides loans up to $50,000 typically not 

offered by banks for working capital or the acquisition of materials, supplies, or equipment. In 

addition, the SBA microloan program, which is designed to assist women, low-income, veteran, 

and minority entrepreneurs, provides marketing, management, and technical assistance to 

borrowers. 
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