U.S. GOVERNMENT PUBLISHING OFFICE

31–559 WASHINGTON : 2019

THE LOCAL IMPACT OF ECONOMIC GROWTH 

HEARING 

BEFORE THE

SUBCOMMITTEE ON ECONOMIC GROWTH, 

TAX, AND CAPITAL ACCESS 

OF THE

COMMITTEE ON SMALL BUSINESS 

UNITED STATES 

HOUSE OF REPRESENTATIVES 

ONE HUNDRED FIFTEENTH CONGRESS 

SECOND SESSION 

HEARING HELD 

SEPTEMBER 27, 2018 

Small Business Committee Document Number 115–091 

Available via the GPO Website: www.govinfo.gov 

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Congress.#13
(II) 

HOUSE COMMITTEE ON SMALL BUSINESS 

STEVE CHABOT, Ohio, Chairman 

STEVE KING, Iowa 

BLAINE LUETKEMEYER, Missouri 

DAVE BRAT, Virginia 

AUMUA AMATA COLEMAN RADEWAGEN, American Samoa 

STEVE KNIGHT, California 

TRENT KELLY, Mississippi 

ROD BLUM, Iowa 

JAMES COMER, Kentucky 

JENNIFFER GONZA ́ LEZ-COLO ́ N, Puerto Rico 

BRIAN FITZPATRICK, Pennsylvania 

ROGER MARSHALL, Kansas 

RALPH NORMAN, South Carolina 

JOHN CURTIS, Utah 

NYDIA VELA ́ ZQUEZ, New York, Ranking Member 

DWIGHT EVANS, Pennsylvania 

STEPHANIE MURPHY, Florida 

AL LAWSON, JR., Florida 

YVETTE CLARKE, New York 

JUDY CHU, California 

ALMA ADAMS, North Carolina 

ADRIANO ESPAILLAT, New York 

BRAD SCHNEIDER, Illinois 

VACANT 

KEVIN FITZPATRICK, Majority Staff Director 

JAN OLIVER, Majority Deputy Staff Director and Chief Counsel 

ADAM MINEHARDT, Staff Director 

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C O N T E N T S 

OPENING STATEMENTS 

Page 

Hon. Dave Brat ........................................................................................................ 1 

Hon. Dwight Evans ................................................................................................. 2 

WITNESSES 

Mr. Larry Lopez, President, Green JobWorks LLC, Baltimore, MD, testifying 

on behalf of Associated Builders and Contractors ............................................. 3 

Mr. Mansour Azimipour, President, A&K Development Corporation, Locust 

Grove, VA .............................................................................................................. 5 

Ms. Brenda Jones Barwick, President and CEO, Jones Public Relations, Oklahoma City, OK, testifying on behalf of Women Impacting Public Policy ........ 7 

Ms. Valarie J. Cofield, President and CEO, Eastern Minority Supplier Development Council, Philadelphia, PA ...................................................................... 9 

APPENDIX 

Prepared Statements: 

Mr. Larry Lopez, President, Green JobWorks LLC, Baltimore, MD, testifying on behalf of Associated Builders and Contractors ............................ 17 

Mr. Mansour Azimipour, President, A&K Development Corporation, Locust Grove, VA .............................................................................................. 24 

Ms. Brenda Jones Barwick, President and CEO, Jones Public Relations, 

Oklahoma City, OK, testifying on behalf of Women Impacting Public 

Policy .............................................................................................................. 29 

Ms. Valarie J. Cofield, President and CEO, Eastern Minority Supplier 

Development Council, Philadelphia, PA ..................................................... 35 

Questions for the Record: 

None. 

Answers for the Record: 

None. 

Additional Material for the Record: 

IAHC - International Association for Health Coaches .................................. 43 

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THE LOCAL IMPACT OF ECONOMIC GROWTH 

THURSDAY, SEPTEMBER 27, 2018 

HOUSE OF REPRESENTATIVES, 

COMMITTEE ON SMALL BUSINESS, 

SUBCOMMITTEE ON ECONOMIC GROWTH, 

TAX AND CAPITAL ACCESS, 

Washington, DC. 

The Subcommittees met, pursuant to call, at 10:00 a.m., in Room 

2360, Rayburn House Office Building. Hon. Dave Brat [chairman 

of the Subcommittee] presiding. 

Present: Representatives Brat, Knight, Kelly, Gonza ́lez-Colo ́n, 

Fitzpatrick, Balderson, Evans, and Clarke. 

Chairman BRAT. Good morning. I would like to call this hearing 

to order. 

As I am sure you all know, I used to teach economics for a number of years, and on that note, I would like to welcome one of our 

college students out here. Kira came and she has got relatives on 

the panel. Thanks for being with us today. 

And I think this Subcommittee has done an excellent job this 

Congress of having both sides of the aisle coming together to examine and promote policies that promote economic growth and small 

business. 

At the beginning of this Congress, this Subcommittee held a 

hearing examining the state of small business economy. The economy had just come off a 1.6 percent growth rate in 2016. There are 

a lot of economists beginning to ask the question, have we reached 

a new normal? Can we rise above the 2 percent GDP growth that 

seems to characterize Europe? 

However, 2018 has marked a stark difference to those years of 

slow growth. In the second quarter of 2018, economic growth hit 

4.2 percent according to the Council of Economic Advisors. GDP is 

on track to hit its highest mark since 2005 and the Atlantic Fed 

has us growing at I think 4.6 percent next quarter. So this Committee obviously wants to keep that rolling. 

This growth has also allowed companies to make long-term investments. According to UBS, capital spending, the primary variable that drives economic growth rose 21 percent in the first quarter and 24 percent in the second quarter this year, which are both 

the highest increase seen since 2011. Increased capital spending 

means that businesses are using more resources to make needed 

renovations, research the next great idea, and maximize economic 

growth. In economics, we also know that capital investment in the 

hands of workers increases productivity, and in macroeconomics, 

productivity is equated with wage growth. And in August we had 

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3 percent wage growth. So the capital investment is making people’s lives better across the board. 

This recent expansion has not just benefitted a select few, but 

rather helped Americans in small businesses across a variety of 

economic and demographic backgrounds. Unemployment rates 

across every demographic are at or near historic lows, decade lows. 

Wage growth since the beginning of 2017 for nonwhite Americans 

has outpaced the national average. Furthermore, minority-owned 

small businesses are growing faster than the national average, and 

their impact will continue to grow even greater in the years to 

come. 

This morning, we have an excellent panel. I met with all of 

them—we discussed sports for a while—to discuss how the recent 

surge in economic growth and the policies and acts of this Congress 

have impacted minority-owned small businesses. By hearing their 

stories, we hope to further understand how Congress can continue 

to promote pro-growth policies to help small businesses of all industries and backgrounds. 

And I would now like to yield to the Ranking Member, my friend, 

for his opening statement. 

Mr. Evans? 

Mr. EVANS. Thank you, Mr. Chairman. And good morning. 

Minority entrepreneurs play a significant role in the U.S. economy. They own almost 8 million firms generating nearly $1.4 trillion in revenue and employ over 7 million workers. I am glad we 

are here taking time today to talk about minority small business 

owners and how the entrepreneur successes are critical to the prosperity of the United States. 

Despite these impressive numbers, minority-owned businesses 

still face many barriers starting and growing their businesses. The 

policies of the Trump Administration have not helped minority entrepreneurs. Since the tax reform bill passed last December, it has 

become clear that the majority of the benefits from the tax reform 

bill go to larger corporations and the very wealthy. Some small 

firms are seeing, at best, marginal benefits. Many others have yet 

to see meaningful advantages. 

Additionally, the tax plan jeopardized health coverage for 13 million Americans. The future deficit pressures could impair Social Security, Medicaid, and Medicare. Ultimately, ACA and vital Social 

Security net programs impose indirect costs on responsible entrepreneurs who want to do the right thing by the employees. 

Additionally, the Congress has played a critical role in ensuring 

regulations are not too burdensome while at the same time protecting the American public. It is, therefore, irresponsible for the 

legislative or the executive branch to haphazardly get rid of regulations without thoroughly looking at the impact and the long-term 

consequences. Although on its face, Executive Order 1371, which 

says that for every new regulation issued at least two prior regulations should be identified for elimination, may seem like a good 

idea, it has very real impact on the lives of small business owners. 

We must collaborate to thoroughly produce streamlined regulations 

for small firms, while keeping in mind our ultimate goal to protect 

consumers and public safety. 

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If the Trump Administration truly wants to support minority 

businesses, they would not have eliminated the Minority Business 

Development Agency (MBDA) in the President’s Fiscal 2017 Budget 

Proposal. Even after objections from the business community, the 

Trump administration’s proposed budget only resulted in $6 million 

for the MBDA. This number is significantly less than the $34 million appropriated in fiscal year 2017. How can they say we are 

serving the needs of minority businesses when the administration 

continues to attack the sole agency focused on the needs of minority-owned businesses? Trying to get rid of the agency is just irresponsible. 

And I would like to add that we sent a letter to the appropriators 

in the House and the Senate, along with my Pennsylvania colleague, Senator Casey, stressing the importance of the MBDA in 

Philadelphia, which is run by a woman by the name of Della Clark. 

Minority business owners offer an invaluable contribution to our 

economy and they need help. 

Today’s hearing offers two opportunities to discuss how Congress 

can better help our nation’s minority entrepreneurs prosper. I look 

forward to hearing from our witnesses on how we can ensure 

American minority entrepreneurs have the resources they need to 

grow and prosper. 

I want to thank the Chairman especially, and I yield back the 

balance of my time. 

Chairman BRAT. Great. Thank you very much, Mr. Evans. 

If Committee members have an opening statement prepared, I 

ask they be submitted for the record. 

I would like to take a moment to explain the timing lights for 

you. I doubt they will come into play. 

You will each have 5 minutes to deliver your testimony. The light 

will start out as green. When you have 1 minute remaining, the 

light will turn to yellow. Finally, at the end of your 5 minutes, it 

will turn red. I ask that you try to adhere somewhat within the parameters of that. If you go over a little, do not worry about it. 

And with that, I would like to start introducing our first witness 

with us today, Mr. Larry Lopez, President of Green JobWorks in 

Baltimore, Maryland. This morning, Mr. Lopez is testifying on behalf of the Associated Builders and Contractors, where he chairs 

their Diversity Committee. 

Thank you very much for being with us today, Mr. Lopez, and 

you may begin your testimony. Thank you. 

STATEMENTS OF LARRY LOPEZ, PRESIDENT, GREEN 

JOBWORKS LLC; MANSOUR AZIMIPOUR, PRESIDENT, A&K 

DEVELOPMENT CORPORATION; BRENDA JONES BARWICK, 

PRESIDENT AND CEO, JONES PUBLIC RELATIONS; VALARIE 

J. COFIELD, PRESIDENT AND CEO, EASTERN MINORITY SUPPLIER DEVELOPMENT COUNCIL 

STATEMENT OF LARRY LOPEZ 

Mr. LOPEZ. Good morning, everyone. Chairman Brat, Ranking 

Member Evans, and members—well, we only have the two of you 

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cess. Thank you for allowing me to be with you today to discuss 

this positive impact that the Congress and administration’s policies 

have had on my small business, and businesses of all kinds. 

As you stated, my name is Larry Lopez, and I am the President 

of Green JobWorks. 

Today, I am testifying on behalf of ABC, Associated Builders and 

Contractors. They are a national construction industry trade association, who were established in 1950, and they represent more 

than 21,000 members throughout the country. We were founded on 

the merit shop philosophy, and ABC and its 70 chapters help members develop people, win work and deliver that work safely, ethically and profitably for the betterment of the communities which 

the members live and work in. 

So my company, Green JobWorks is a construction staffing company. We were founded in 2011 in Baltimore, and we provide labor 

to the industry. We really believe that we take the burden away 

from hiring people, which can be very challenging. We find the 

right people for the right job for our clients to help them deliver 

work the right way. 

We also have expanded and grown and developed several other 

divisions in our company in construction. So we do demolition, we 

move asbestos, and we do post-construction cleaning. So we kind of 

dip on both sides here. 

My company today, I wanted to tell you how it has benefitted 

from tax cuts and the regulatory changes that have happened. The 

Tax Cuts, and the Jobs Act, specifically, really helped my business. 

With the increase in the construction industry, all its growth, companies having higher profit margins, being more comfortable just 

really doing business and growing, it has really built up, I feel, a 

lot of confidence in the industry. And that specifically has helped 

my company grow and be able to reinvest that growth with benefits 

to my employees. So I have been able to implement annual raises 

from a staffing perspective, which is pretty unheard of. Pay increases for folks after working for me 30 days. We promote people 

internally. Positions like crew leaders on projects. We have obviously implemented more technology on our projects. We use iPads 

on job sites now. We use iPads to do applications and onboarding. 

So all the changes have really helped my company tremendously. 

And as far as the divisions that I mentioned earlier, the growth 

in my demolition, asbestos, and post-construction cleaning has been 

really kind of off the charts. At one point it was probably about 10 

percent of my revenue and it is at around 30, 35, and it continues 

to grow. 

All this happens, in my opinion, due to the changes that have 

taken effect in the last year or so. Because of all this growth, obviously, I have had to hire more staff. We are continuing to even look 

to hire more. So given the challenges in the workforce, we believe 

that, you know, training is critical, on-the-job training even more 

so. So we are looking to create a full-time training position from 

a staffing model to allow our clients to have our employees trained 

on the job. 

The last point that I think is important as far as workforce is 

diversity. I would be remiss if I did not talk about—you mentioned 

that I was the Chair of the ABC Diversity Committee. I take that 

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role very seriously. It is really important, I think, to make it clear 

that as a country, we are not going to make it if we do not understand the importance of the fact that we have to diversify our 

workforce. We have to diversify—we could go all day on it, but as 

the industry itself, I think it is critical that we understand we have 

to look at different places to find folks right now because of the 

workforce shortage. While it is great that unemployment is low, it 

is very difficult, I feel, to be able to fill all these positions if we do 

not start training people. And I know we talk about it a lot, but 

there is not enough. 

So what I will ask Congress is that continuing to pass legislation 

like H.R. 2353, which is the Strengthening Career and Technical 

Education for the 21st Century Act, that allows dollars to go to private organizations to do training, because that is really important 

if we are going to continue to backfill the workforce that is aging 

out right now. 

There are a lot more things I really wanted to say, but I will 

close by saying this: The contributions that Congress and the administration have made in the past year on tax reform and regulatory relief have unlocked the potential for my small business to 

create growth and opportunities for everyone. 

So I want to thank Chairman Brat, Member Evans, again, for inviting me today to participate in this hearing. I look forward to answering any of your questions about how my small business has 

benefitted from economic growth in my community and become 

more successful in this really competitive market. Thank you. 

Chairman BRAT. Thank you. It is not every day we have a good 

news Committee panel. So great to hear the good news that is happening out there. 

Our next witness is a business leader in my own community and 

a good friend over the years, Mansour Azimipour. And he is President of the Construction and Development Company, A&K Development Corporation in my district in Virginia. Mr. Azimipour also 

established the Economic Development Partners Group of Orange 

County, which actively works with new and existing businesses in 

the county to maximize investment and job creation. He is a good 

friend of the community. He knows how to make friends across the 

aisle, across every demographic and friendship group you can have. 

He is an ideal person to have testimony today. 

Thank you for being here with us, and you may now testify. 

STATEMENT OF MANSOUR AZIMIPOUR 

Mr. AZIMIPOUR. Thank you, Mr. Chairman. Thank you, Mr. 

Evans. I am honored to be here today. I am talking on behalf of 

myself. I am not debt master with anybody. 

I am here and proud to be a part of Virginia small business, the 

state that is one of the top states to do business in and the best 

place for me to live in. 

My story starts from about 50 years ago, 50-plus years ago when 

I was just 9 years old when I started my corporate-like business 

hiring kids twice as much my age, teenagers, to sell my fireworks 

in neighborhoods and get their commission. And they were acting 

actually, because their livelihood depends on that money, they were 

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acting like my bodyguard to make sure that I am safe to give them 

the product to sell. And I am proud of that time. 

And since then I am proud also to say that all these years I 

never received a paycheck from anybody. I am the one who actually 

provided paychecks to other people. 

I consider myself a live statute of American dreams and born to 

be an entrepreneur. I am proud to say in my entire life I have really done that. 

I served on a Board of Directors of a community bank for 7 years 

from late 1990s to early 2000, and that experience was one of the 

best experiences I had because it has helped me to see the problems going through the financial situation and a slowdown in 2005. 

And that helped me to save my business and my life during the 

financial crisis. 

I am also a board member of a Board of Trustees of a private 

school of PK-12 in Virginia. And with a few local friends we made 

an economic partnership in Orange County that has been outstanding with the results we have. The economic development 

brings every month the leaders of the company at the same table. 

We have a Board of Supervisors, Planning Commission, elected officials, the Chamber of Commerce, a local community college, business leaders, a school board, and all the people who can make a 

decision, they come in and they make actually an informed decision 

and that helps the county to make an amazing result out of it. 

About a year ago, I asked you, Mr. Chairman, give me something 

that I would be happy for to get out and give it to my kids that 

they would be happy, and this is what you said: ‘‘The free market 

platform we have for small businesses and its owners in our system 

is what will help us to move forward at any time.’’ And that was 

the best ever I got from my representative. And still I remember 

it because that was it. 

Small business owners take risk unlike other businesses. They 

take 100-plus persons of risk on all they have to make the business 

work. The risk is not an abstract concept for a small business. A 

small business is there to make it work. And always, when you get 

a loan, they want your personal guaranty. Even they do not give 

you enough money but they do that. 

My time is getting a little bit short. Okay. 

Many external factors impacted a level of risk the small business 

owner must take. Regulation, especially adding a new requirement 

that could not have been anticipated, greatly impact a small business. Regulation affects the ability to borrow, to start or expand a 

business. Regulation diverts times and resources away from the 

main business. Regulation can slow implementation of a new 

project or the movement of the new product to the market. I encourage all legislators to truly evaluate the risk that examines for 

new regulation imposed to the business climate, especially the regulation that crosses the line and adds risk to a level that discourages business startup or expansion. 

Small business is a critical part of our economy. In Orange County, Virginia, where I have my business, we have about 900 employers. Over 90 percent of them employ less than 20 people. But that 

represents nearly 30 percent of the entire workforce. At the local 

level, the financial ability of a community and sensitivity to impact 

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of rules and regulation are helping the environment that encourage 

investment by a small business owner. In the last 24 months, we 

have 84 new startup companies in Orange County. 

Availability of capital to a small business. To start this part of 

my testimony, I should say I believe most of the banks are almost 

closed when it comes to providing much needed capital to small 

businesses. Because that happened in our economy after 2007, 

banks are so afraid of making loans to a small business after they 

made millions of bad loans between 2000 and 2006, which that was 

one of the reasons we had the financial crisis. The present banking 

behavior reminds me of two things that I heard from my parents. 

A person was standing on the flat roof of a high-rise. Someone told 

him, be careful, do not fall. He walked back and fell from the other 

side. And the banking underwriters are like someone who was bitten by a rattlesnake. And for their entire life they want to be afraid 

of black and white rope. And that does not really work. 

During the recession, most of the small business owners’ credit 

got hit, and the banks that were giving loans to those businesses, 

up to more than 80 percent loan-to-value, now I have seen many 

cases that they are not even approving 30 to 40 percent even if the 

owner does the personal guaranty with all of their assets. This is 

unfortunate that most of the available capital to small businesses 

are in the hands of the secondary market with 12 to 18 percent 

APR with very difficult terms which barely any small business 

owner can afford the consequences of that financing. 

My hope is to see the banks, which are one of the most tools of 

our economy growth, find a way to be able to help small business 

owners with the much-needed capital for their new and expansion 

ideas. About the taxes, I am not an expert. I just can tell you as 

a business owner, right now the tax dollars and the change is helping small businesses and the biggest help we got started from 

President Bush, and President Obama extended that when they 

said companies were making money and paying taxes between 

2001 and after and they were losing money after 2006. They could 

go back and consider that. I believe that regulation saved tens of 

thousands of businesses by doing that. Thank you very much. 

Chairman BRAT. Thank you very much, Mansour. That was 

great. 

The next witness will be Ms. Brenda Jones Barwick, President 

and CEO of Jones PR in Oklahoma City, Oklahoma. This morning, 

she will be testifying on behalf of Women Impacting Public Policy. 

Jones PR helps clients in several industries with public affairs, corporate communications, and consumer marketing needs. 

Thank you very much for being here all the way from Oklahoma, 

and you may begin your testimony. Thank you. 

STATEMENT OF BRENDA JONES BARWICK 

Ms. BARWICK. Chairman Brat, Ranking Member Evans, and 

members of the Subcommittee. Thank you for the opportunity to 

testify today. 

My name is Brenda Jones Barwick, and I am President and CEO 

of Jones Public Relations, located in Oklahoma City, Oklahoma, 

and I am testifying today on behalf of the Women Impacting Public 

Policy, of which I am a board member. 

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WIPP is a national, nonpartisan policy organization that advocates on behalf of women business owners. And when I started my 

business in 2001, not many people would have really given me 

much of a chance because I came primarily from a political background that included a position in the White House West Wing, 

and with U.S. Ambassador to Switzerland, among several other positions at several international agencies. This year, I am proud to 

say that my company, Jones Public Relations, is ranked the 109th 

largest PR agency in America. 

But I would like to set the stage by giving you a snapshot of 

Oklahoma’s economy. 99.4 percent of all businesses are considered 

small, the majority of which are nonemployers or businesses without employees, and women-owned firms have an average of nine 

employees, which is lower than the male-owned counterpart companies. Small businesses created over 13,000 net jobs in 2015, with 

firms employing fewer than 20 employees experiencing the largest 

gains. As for the state and local economy, so far in 2018, Oklahoma 

City has hit a 10-year employment high, and this begs the observation that small business policy is not one dimensional. Policies affect companies differently depending on their size and their business purpose and their business segment. 

Tax policy, for example, affects every business in America, and 

yet, until this year’s tax reform bill, the Congress only recognized 

C corps, and now for the first time, the tax bill treats income from 

businesses organized as pass-through entities as business income. 

So my company is organized as an S corp, and this change has allowed me to pay bonuses to my employees, hire more personnel, 

and increase salaries up to 10 percent for all employees. 

Another difference that requires new rules but has tremendous 

consequences for small companies is how retirement is treated. 

More than one-third of small business owners do not have a retirement plan, and many small companies find offering 401(k)s to be 

cumbersome and expensive. My company does offer a 401(k) plan 

to its employees with an up to 4 percent match. However, rule 

changes are needed to specifically help small businesses remain 

competitive in their retirement plan benefits. President Trump’s recent executive order and consequent legislation is beneficial, not 

only for the owner, but also for the employees of small businesses, 

and we applaud this effort. 

Additionally, health insurance continues to be one of the biggest 

financial challenges for small businesses, as it is expensive and 

often without many choices. Since its inception, WIPP has advocated for small business pools across state lines and we were encouraged to see that the Department of Labor supports the notion 

of association health plans, but we do not think these plans will 

work as long as the pool is limited by state boundaries. One 

brought spot on this issue has been recent House action to change 

the definition of full-time employees from 30 hours to 40 hours a 

week with respect to the required health insurance coverage. And 

WIPP has been pushing for this change since the ACA was enacted. 

WIPP has also long advocated for an end to the ‘‘one size fits all’’ 

approach to banking regulation. We applaud the new law enacted 

this year, which gives small and midsize banks regulatory relief. 

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Access to capital continues to be problematic for women-owned 

businesses who only receive 16 percent of all conventional small 

business loans. 

Regulations and compliance costs impact Jones PR in a couple of 

ways. We serve many clients in the energy and financial sectors, 

and as regulations are rolled back, it allows these companies to 

have more funds to invest in marketing. And second, Jones PR will 

be forced to hire an independent professional employment organization company in order to reduce our risks of being in compliance 

with federal regulations. 

While we have seen many positive changes initiated by this Committee, there is still more work to be done. The Federal Government has continued to miss its 5 percent goal of contracting with 

women-owned businesses, and the consequences of this missed goal 

means fewer dollars flowing to women-owned businesses and to 

their local economies. In addition, the government actively discourages small business growth for federal contractors, limiting these 

companies from reaching their full potential. 

So we applaud the passage of H.R. 6330. That is the 5-year look 

back legislation passed by this Committee to help address this 

problem. 

In summary, the economy is healthy and unemployment is at a 

record low. In today’s regulatory landscape with recent legislative 

changes and a strong economy offers an environment for small 

businesses to thrive. And we especially want to thank this Committee for paying attention and playing such an important role in 

the success of small businesses in this country. Thank you. 

Chairman BRAT. Thank you very much for that testimony. 

And now I would like to yield to our Ranking Member, Mr. 

Evans, for the introduction of the final witness. 

Mr. EVANS. Thank you, Mr. Chairman. 

It is my pleasure to introduce Valarie J. Cofield, Chief Executive 

at the Eastern Minority Supply Development Council. I can tell you 

she is very active in my district and in the City of Philadelphia. 

Valarie’s background includes expertise in the area of supply diversity, MBA, MBE, WBE, and WE business development. She has 

previously worked at INTECH Construction and the City of Philadelphia Minority Business Enterprise Council. Ms. Cofield is a 

board member of the Philadelphia Habitat for Humanity, member 

of the Philadelphia Board of Labor Standards, and an active member of the Girl Scouts, serving Girl Scout leaders of monthly level 

troop. She holds a bachelor’s degree from Franklin and Marshall 

College in Lancaster, Pennsylvania, and we welcome you, Ms. 

Cofield. 

STATEMENT OF VALARIE J. COFIELD 

Ms. COFIELD. Thank you, Congressman Evans. 

Good morning, Chairman Brat, and Congressman Evans, and 

members of the Subcommittee. Thank you for the opportunity to 

provide testimony about the growth and development of minority 

businesses, particularly as it relates to three key areas: the economic impact and importance of development and growth of minority-owned businesses, the impact of H.R. 1, Public Law No. 115- 

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697, the Tax Cut and Jobs Act, and the continued funding of the 

Minority Business Development Agency. 

As previously stated, my name is Valarie J. Cofield, and I am the 

President and CEO of the Eastern Minority Supplier Development 

Council, EMSDC as I will refer to it going forward. 

EMSDC is headquartered in Philadelphia, Pennsylvania, with a 

satellite office in Pittsburgh, Pennsylvania. EMSDC is one of 23 regional affiliates of the National Minority Supplier Development 

Council operating in Pennsylvania, Southern New Jersey, and 

Delaware. As the President of EMSDC, my mission is to ensure 

that all diverse businesses have access to and opportunity in the 

private sector and public supply chains. 

In March of 1969, recognizing the impact and importance of minority businesses, President Nixon signed Executive Order 11458, 

requiring government agencies and their contractors to contract 

with minority-owned companies and to report the results against 

pre-established goals to the Office of Minority Business Enterprise, 

which became the Minority Business Development Agency in 1971. 

In 1972, as a result of several federal grants focused on private sector engagement of minority businesses, the National Minority Supplier Development Council was formed. Formation of NMSDC in 

1972 represented a private-public partnership to provide increased 

procurement and business opportunities for minority businesses of 

all sizes. By 1974, the newly formed NMSDC contracted with the 

U.S. Department of Commerce’s Office of Minority Business Enterprise to encourage major corporations to increase their purchases 

of goods and services from minority businesses. Today, NMSDC, a 

privately funded organization, represents over 1,400 Fortune 100 

and Fortune 500 businesses and over 12,000 certified businesses. 

EMSCD’s foundation as an NMSDC affiliate directly aligns us 

with the most powerful minority supply organization in corporate 

America. EMSDC boasts corporate membership of over 120 Fortune 100 and Fortune 500 companies either headquarter in or 

doing business in Pennsylvania, Southern New Jersey, and Delaware, all with organizational commitment to supplier diversity. 

Our corporate members’ revenues are estimated to exceed $1.1 trillion annually. 

Corporations throughout America understand the value and importance of diversity and inclusion in business. On average, supplier diversity programs add $3.6 million to the bottom line for 

every million dollars in procurement operation costs. 

In 2017, EMSDC’s MBEs, our 495 MBEs had average annual 

revenues of $7.8 million and collective revenues of $3.9 million. 

That is in Pennsylvania, Southern New Jersey, and Delaware. In 

2017, of our 495 certified businesses, we employed 17,612 individuals, or an average of 35.6 employees per business, far outpacing 

the rate of employment for the average small business of 20 employees. 

Minority-owned businesses are growing at a much faster rate 

than that of the U.S. businesses overall. At the time of the 2007 

survey of businesses, minority-owned businesses accounted for 21.3 

percent of the Nation’s businesses, employed 5.8 million persons, 

and generated $1 trillion in receipts. 

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Given the rate of growth of diverse businesses, it is important to 

examine and understand the implications of H.R. 1, the Tax Cut 

and Jobs Act. The initial read of the benefits offers optimism as we 

have heard from the other witnesses in reduction of the effective 

tax rate for all businesses. The concern is the past-through deduction that is not equally applied to all businesses. The structure of 

H.R. 1 creates concerns because most small businesses, specifically 

diverse businesses, are not C corps and are passthroughs, and 

therefore, the effective tax rate of 21 percent will not apply to these 

businesses. Since small businesses are typically passthroughs, the 

impact is too soon to fully measure. There are several immediate 

observations, however, that can be made and must be reviewed. 

This disparate application of the 20 percent pass-through bonus adversely impacts professional services businesses, which represent 

40 percent of all small diverse businesses and therefore, may provide little to no tax saving to these business owners. Savings that 

will result in investment in new talent, technology, business development tools, and resources will not be necessarily realized for 

these businesses, and ultimately will negatively impact long-term 

growth and viability. 

The various business tax deductions and credits that have been 

eliminated will have a direct impact on small businesses as well, 

who use these deductions and credits to offset tax liability and provide additional benefits to employees. Further, the provisions of 

H.R. 1 are too short-term to have sustainable impact on small businesses as the potential for savings and investment will be mitigated by limited access to capital and rising healthcare costs. 

Pass-through businesses will bear the burden of H.R. 1 and receive the least benefit or relief. These businesses are disproportionately minority owned. The sustainable, immeasurable benefits to 

small businesses may ultimately be indirect and the result of increased demand from current and potential customers that may increase spending and seek their services due to their realized savings as larger C corporations. EMSDC and the NMSDC network, 

along with agencies like MBDA will continue to monitor and report 

on the impact of H.R. 1 to minority-owned businesses. 

Speaking of MBDA, MBDA has been the premier Federal Agency 

dedicated to supporting the expansion of minority and nativeowned businesses for over 45 years. Unlike the Small Business Administration and other Federal Agencies, their focus on broader demographic and emerging businesses, the MBDA’s directive is focused on unique challenges and needs of minority-owned businesses. It is the only Federal Agency dedicated to growth and global competitiveness of our nation’s minority business enterprises, 

which according to the U.S. Census Bureau contributed $1.4 trillion in total economic output and employed nearly 4 million Americans. 

MBA continues to be important because minority owned businesses are growing significantly faster than nonminority owned 

businesses. Their employment grew by 33 percent, their receipts by 

57 percent, versus the shrinkage by nonminority firms of 5 percent. 

And yet despite these gains, MBEs overall receipts versus nonminority firms, that is 196K versus 650K on average, do not reflect 

a balance between the rate of growth and market share. While 

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there has been an increase in the number of minority-owned businesses from 21 percent to 29 percent, this growth has lagged behind the pace of growth of the nation’s minority population. 

Currently, the administration’s fiscal year 2019 budget blueprint 

recommends the reduction of the agency through the elimination of 

the network of MBDA centers nationwide. The elimination of these 

40 business centers would reduce needed hands-on assistance and 

facilitate an access to capital and contract opportunities. It is important that MBDA remain fully funded and that the network of 

MBDA centers nationwide have adequate resources to support minority businesses doing work to assist these businesses in overcoming the barriers to growth and economic parity that they disproportionately encounter. 

You may ask why I am lobbying on behalf of MBDA. As you 

know, MBDA and NMSDC started at approximately the same time 

and we have worked in partnership as organizations bringing services to the minority business community. And while I do not personally operate an MBDA center, I work in collaboration with the 

Philadelphia-based MBDA center, as do my other council partners 

throughout the Nation. 

In conclusion, the sustainability of small businesses, particularly 

small diverse businesses, is bolstered by private-public partnerships, programs, and initiatives. The NMSDC and its network of 

affiliate councils, including the EMSDC, is well equipped to support 

the continued development and growth of minority businesses. 

However, continued support is needed in the form of the MBDA 

from the Federal Government to ensure the small diverse businesses are well-positioned for continuous growth and long-term economic impact. Through business development and access, supplier 

diversity fuels the broadest economic growth opportunities for diverse businesses by creating equity and equality in a marketplace 

and allowing diverse businesses to succeed while overcoming extraordinary barriers. Thank you very much. 

Chairman BRAT. Thank you very much for your testimony. 

At this time we will open it up for questions, and I think we will 

give ourselves about 5 minutes each. 

So I would just like to go down through the whole panel in a 

minute or so. If you had to rank the most important work we can 

do up here. Everybody mentioned capital access is pretty important, and everybody mentioned skilled workforce, the human capital side, and so if you had to focus on one or two things, what 

would they be? And I taught economics at the college level for 20 

years, and so I was shocked that the incoming freshman class had 

not received significant economic and business training. Right? The 

kids did not know what a price was or a cost, accounting, profits, 

what an entrepreneur is. Half the kids coming out of high school 

will not go to college, and so the good news is education is still at 

the local level, primarily. Local and state. We do mandates up here 

and fund about 10 percent of it. So the good news is education is 

still in your hands at the local and state level. And so if you have 

got any comments on what we can all work on there to get the 

skills development going. But I am just curious, access to capital 

or education, human capital. 

And your comments, Mr. Lopez, we will start with you. 

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Mr. LOPEZ. I am going to stick to the human capital side of 

things and I will say that I really think that just training dollars, 

somehow having on a national level, because this issue of the 

shortage of people out here, it is around the country. Being part of 

ABC on a national level, I travel around the country and I get the 

same conversation. You are a staffing company? Do you have people? Do you have an office here? I mean, it is a serious issue. So 

if you could somehow put some legislation in place that allows 

those organizations easier access to capital to train people so that 

these companies can actually hire them with some skills rather 

than have to figure out a way to do it on the job, that would be 

really, really helpful, I think. 

Chairman BRAT. Great. Thank you. 

Mansour? 

Mr. AZIMIPOUR. I believe we need to start to teach our kids at 

a young age, to show them how to look outside of the box. Unfortunately, all of our student kids, they have been framed with certain 

kinds of curriculum and there is nothing really you can expect out 

of it. When they come to college, they even do not know how to understand a credit card. Still, they are using parents’ credit card. 

For someone like me that I bought my first house on my 18th 

birthday because that was the day I could sign it, I believe we need 

to help our kids to understand it. First, the school needs to make 

a platform for them to understand. They need to change some reallife curriculum to the system. They need to bring the expert on a 

regular basis to talk to them, show them how they can look out of 

what they just go after. They need to learn money management. 

That is the most important part of any education we can give our 

kids. They need to have communication skills, especially face to 

face. They need to go after their interests, their wishes. They need 

to try those ones. 

And one very good program that I have seen it, and it is in Culpepper County, some citizens, they made a group called E Squared. 

They are making the kids to come in and present their ideas, like 

Shark Tank, and show how valuable is that one. And this is about 

five or six years. I am familiar with that. So far, several of the high 

school kids, actually, they did go out and their ideas got to the 

point that investors have invested in their ideas. And if we can 

really put the foundation for those kind of stuff at the schools, I 

believe we are going to be a winner. 

Mr. BRAT. Thank you very much. 

I think we will circle back. I am going to let our Ranking Member go for 5 minutes on his round of questions and then we will 

get to other members as they may show up. 

Mr. EVANS. Thank you, Mr. Chairman. 

Valarie, I would like to start with you, then go down the list from 

what I heard you say, and I thought you gave excellent testimony. 

Obviously, the Chairman and the mission of this discussion is 

impact and review. We talked about tax policy, regulatory reform, 

obviously workforce, and you talked about MBDA. And I really 

want to get that message across from what I have heard you say 

in terms of its potential impact. Obviously, it was started under 

Richard Nixon, and here we are in the 21st century. So help me 

understand again the value that you think that entity is versus all 

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the other things we talked about. I do not think it is an either-or 

on tax policy, regulatory, or workforce, but I heard you really emphasize that in terms of minority business development. 

Ms. COFIELD. So one of the reasons why those three issues 

bucket together very well is that MBDA is focused specifically on 

minority businesses. I want to go back to the point, it is the only 

Federal Agency that is focused on minority businesses. The Small 

Business Administration has programs that focus on veterans, on 

women, on the disabled, but they do not have a program that focuses on minority-owned businesses. So it is critically important to 

understand that. And while you have the 8(a) program, the 8(a) 

program is for socially and economically disadvantaged individuals 

and minorities are presumed to be but it is not specifically only for 

minorities. MBDA is specifically designed to focus on the needs and 

challenges that minority-owned businesses have. And within that 

bucket, you are talking about access. You are talking about capital. 

You are talking about understanding the implications of tax reform 

for expansion and long-term sustainability. MBDA has 40 centers. 

That means that it is reaching every part of our Nation in providing services to minority-owned businesses. The growth that you 

see in our minority business community does not happen in a vacuum. It happens with the supportive services that come out of agencies like MBDA, like the National Minority Supplier Development 

Council, because each of those organizations, and we do this in 

partnership. I will let you know that nine of my counterparts run 

MBDA centers in partnership with the National Minority Supplier 

Development Council affiliates. 

Mr. EVANS. And your point, I heard you say your point is as a 

result of the administration’s recommendation from a budget investment standpoint, you obviously see an impact? 

Ms. COFIELD. Absolutely. You are talking about 40 centers. 

Forty centers that are providing day-to-day services to minorityowned businesses. Whether they are helping them gain access to 

the Federal procurement process, whether they are helping them 

with access to capital, whether they are helping them with business development and business planning, those services now go 

away from a Federal standpoint and they go away as a resource 

in the various marketplaces. 

Mr. EVANS. Let me go to the next witness because you raised 

the issue about the Federal Government not getting to that 5 percent. And you have heard just what Valarie said. You know, how 

do you juxtapose what I just heard, you know, in terms of working 

towards that objective of getting women? 

Ms. BARWICK. I believe the 5 percent goal is still not a priority 

within the departments. And, in fact, I met with a major federal 

agency 3 weeks ago and I had mentioned about the sole source for 

women-owned businesses that was passed, I believe, in December 

2015, and the contracting officer was unaware of that, which 

stunned me. So when a lot of the contracting officers are not even 

aware of the sole source opportunity for women-owned businesses, 

that impedes reaching the 5 percent goal. And I believe it just has 

not been made a priority among the departments. And I would like 

to find a way to make it absolutely mandatory that the departments reach at least 5 percent. And that is a really small goal 

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when you look at the complete landscape. WIPP is not asking for 

a lot, a mere 5 percent, and there should not be any reason why 

they cannot meet that 5 percent goal. 

Mr. EVANS. Real quick, Val, what is your response to that, what 

you just heard? I mean, it sounds like even though we talk about 

tax policy, regulatory policy, workforce, you know, in two particular 

cases for minorities and women, it seems like it is going in the 

wrong direction. 

Ms. COFIELD. Well, absolutely. I mean, I agree. Five percent is 

not an aggressive goal, particularly when you look at the population distribution of our company. Five percent should be lowhanging fruit, as it should be for minority-owned businesses. The 

fact that we are still having to enforce goals in order to get access 

for minority and women-owned businesses in the Federal Government supply chain is alarming. And I think at this point, the importance of the programs out of the SBA for women and the importance of making sure that the Federal Government is doing their 

part. You see private industry stepping forward and taking more 

responsibility. We are your customers ultimately as your constituents. We are your customers and it needs to be a priority that diverse businesses have a seat at this table and are sharing in the 

opportunities that are presented through the Federal Government. 

Mr. EVANS. Thank you, Mr. Chair. I yield back the balance of 

my time. 

Chairman BRAT. If anyone wants to follow up on Dwight’s question, feel free. We have a few minutes left. 

Ms. BARWICK. Mr. Chairman, may I follow up on your initial 

question regarding education? 

Chairman BRAT. Sure. You bet. Please. 

Ms. BARWICK. Thank you. 

There are thousands of entrepreneurs, future entrepreneurs sitting in high school and college right now, but they do not even 

know they are entrepreneurs. And they are not receiving any type 

of financial education. They do not even know what liabilities, assets, income. I mean, they have no concept of that. And I would say 

especially for young girls, I want to make a statement, but it seems 

like young boys, maybe because they have the influence of their fathers, seem to have an understanding of business, but young girls 

do not. And so when a young girl out of high school or college 

wants to start her own business, she is already handicapped because she does not have that knowledge. So I would love to see 

some kind of effort of getting small business, which will continue 

to fuel our economy, into high schools and colleges. 

And then I would also add on another point. In Oklahoma, our 

top two industries are energy and aerospace. And college is a great 

place to learn about energy and aerospace, but our career techs are 

booming. And young people can have amazing, a very livable life 

in the energy and aerospace industry by going through career 

techs. And especially for women as that being a more viable option. 

They do not always have to go to college, but we are desperately 

needing more people to come from the career tech area in aerospace and energy. 

Ms. COFIELD. Mr. Chairman, may I respond as well? 

Chairman BRAT. Please. 

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Ms. COFIELD. It is interesting because in my position, education 

is critically important. And as you know, I have my daughter here, 

so she is getting her education. But what I want to say more importantly though is as we educate our young people, we need to 

educate them around entrepreneurship. We are talking about creating new talent in terms of a new employee base. But wealth is 

built through ownership. And entrepreneurship is that pathway to 

wealth. And when you talk about the lack of exposure of women, 

you also can speak to the diminished exposure that minorities have 

to entrepreneurship as being a viable opportunity for them to build 

wealth and to have that as a career path. And so that education 

of our young people is critically important, but also the education 

of adults. I mean, what do you do when you are unemployed? You 

know, entrepreneurship becomes a way of survival. You build a 

business, but how do you create a business that moves from being 

a lifestyle business to a legacy business? And that is what we need 

to be focusing on from my standpoint when you look at entrepreneurs is not only building lifestyle businesses that are not necessarily employers but building legacy businesses that are building 

wealth in communities and employing people. 

Chairman BRAT. Well said. And thank you very much to the entire panel. 

Dwight, do you have any other? You are good. 

I just want to thank you all for being with us. I think we are 

starting to zoom in on the end. There seems to be a consensus 

across the board on the capital and education side. 

I am on the Education Committee, K-12, just so you know, the 

Feds have been mandating high stakes testing for years now, and 

there is a consensus, kids surely do not like it, I have got a few 

myself. And the teachers do not like it, and the principals do not 

like it, and the incentives. And so we lightened that up somewhat. 

Now the mandate has been lightened from all the subjects to just 

math and English. So that fees up the states and localities. They 

may not know that. It is a little bit more play. And so when you 

go back to your local school boards, they have the latitude. Getting 

changes through bureaucracies is hard but there is a little play 

there. And then the higher ed, we did some good work on career 

and technical this year, and so there is some good news there as 

well. 

But most importantly, just follow up with us. Zoom in. We are 

all on the same page on these kind of things. So get exactly what 

you want and write up, help our staffs, work with our staffs to 

write up very specifically in terms of goals and what we can do, 

and we will all work together because I think we have shared goals 

in the room today. 

And so I just want to close by thanking all of the witnesses. Excellent job to everybody. 

I ask unanimous consent that members have 5 legislative days 

to submit statements and supporting materials for the record. 

Without objection, so ordered. 

This hearing is now adjourned, and thank you all again. 

[Whereupon, at 10:57 a.m., the Subcommittee was adjourned.] 

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A P P E N D I X 

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Associated Builders and Contractors, Inc. 

Statement for the Record for 

Associated Builders and 

Contractors 

The Local Impact of Economic Growth 

Testimony of 

Larry Lopez 

_Before the 

U.S. House Small Business Committee Subcommittee on Economic 

Growth, Tax and Capital Access 

Sept. 27, 2018 
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Chairman Brat, Ranking Member Evans and members of the U.S. House Small 

Business Committee Subcommittee on Economic Growth, Tax, and Capital Access, thank 

you for allowing me to be with you today to discuss the positive impacts that this 

Congress' and administration's policies have had on my small business, and businesses of 

all kinds. My name is Larry Lopez, and I am the president and chief executive officer of 

Green Job Works. 

I am testifying today on behalf of Associated Builders and Contractors (ABC), a 

national construction industry trade association established in 1950 that represents more 

than 21,000 members. Founded on the merit shop philosophy, ABC and its 70 chapters 

help members develop people, win work and deliver that work safely, ethically and 

profitably for the betterment of the communities in which its members live and work. 

ABC and the construction industry are fueled by small businesses. According to 

the most recent census data, businesses employing fewer than 100 employees account for 

99 percent of all construction firms. And in an industry of 7.8 million construction 

professionals, 89 percent of ABC member companies earn annual revenues of $20 

million or less. 

One of those small businesses is my company, Green Job Works, a construction 

staffing company headquartered in Baltimore Maryland. Founded in 2011, Green 

Job Works provides both skilled and general labor to clients in Maryland, Washington, 

D.C., and Virginia. If you're a contractor in need of construction labor, you call Green 

Job Works. We take away the burden of having to hire people on a per project basis and 

help our clients find the right worker for the right job. In addition to offering labor to the 

construction industry, Green Job Works also has construction demolition and final 

cleaning divisions. 

Today, I would like to share how my small business has benefited from the 

economic growth in my community to become more successful in a competitive market. 

As the members of this subcommittee know, America is facing an enormous 

workforce shortage, which is drastically impacting our sector. Of the six million open 

jobs currently in the United States, an estimated 500,000 of those are in the construction 

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industry. And while an improved economy is good, it also tends to tighten the workforce. 

While it has been challenging recently to find qualified labor to hire and provide to 

clients, Green Job Works is being proactive and setting ourselves apart as an industry 

leader by developing a process to attract workers in a competitive market. This process 

and my company's recent growth are in large part attributable to the impact of policies 

such as HR. 1, the Tax Cuts and Jobs Act. 

The Impact of Economic Growth 

At Green Job Works, and in the construction industry across the United States, 

confidence is high. In fact, according to ABC's most recent Construction Confidence 

Index (CCI), more than three in four construction firms expect that sales will continue to 

rise over the next six months, three in five expect higher profit margins, and more than 

seven in 10 expect to bolster staffing levels. All three key components measured by the 

CCI signal an ongoing expansion in construction activity. 1 This increased confidence has 

allowed Green Job Works to not only reinvest in our business, but to implement new 

benefits for our employees. These investments would have not been possible without the 

Tax Cuts and Jobs Act, which has provided positive momentum for our business and the 

industry as a whole. 

We have implemented annual raises, which are not typical for a staffing company 

because of the industry's transient nature. While our unskilled workers start at $13.00 an 

hour, they are eligible for a raise to $15.00 an hour after 60 days of good performance. 

Recently, we have shortened this period to 30 days. Green Job Works promotes from 

within, also not typical of a staffing company, and hires crew leaders from our existing 

staff. All 18 of our crew leaders have been promoted from the employee ranks. We have 

been able to implement more advanced technology, like iPads to better communicate 

between jobsites, utilize analytics and increase efficiency. These investments, which 

were made possible by recent economic growth in the industry, have set us apart from 

our competition in the industry and created new opportunities for our employees. 

On top of implementing raises and new technology, my small business is growing 

1 https://www.abc.org/News-Media/News-Releases/entryid/15803/contractors-remain-upbeat-in-q2-according-to-abcs-latest-constmction-confidence-index 

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alongside the improved economy. In June 2018, we opened a Washington D.C. office to 

expand on increased opportunities in the region. We were able to budget for the opening 

of this office because of the added revenue and savings we received through the Tax Cuts 

and Jobs Act. 

With an increased number of construction projects, my demolition and final 

cleaning divisions are winning more work. Traditionally accounting for only 10 to 20 

percent of our business, these divisions have increasingly become a larger percentage of 

our revenue. As a result, l was able to promote an in-house worker to manage all aspects 

of the final cleaning division who will further expand the division. 

Green Job Works' next expansion will be to hire a full time on-site trainer to 

develop new hires with limited skills or experience. Employers who hire our workers 

want them to be fully trained and ready to work, so we are excited to create a new 

position to develop the skills of our workforce through on-the-job training. This 

development will allow our business to take the training burden off our clients while 

creating more opportunities for our employees. 

Despite recent economic gains, finding workers and addressing the skills gap 

remain very serious problems for Green Job Works and the construction industry as a 

whole. ABC members invest $1.1 billion on workforce development to educate more 

than 475,000 industry employees annually, and ABC chapters have set up more than 800 

apprenticeship, craft and safety programs across the United States. Yet more than 80 

percent of ABC members report they have trouble finding skilled labor, which impacts 

construction firms of all sizes. 

One of the best things Congress can do to help shrink the skills gap is to empower 

organizations to recruit and develop a workforce with the education that is necessary to 

succeed in the construction industry. Soft skills are important, but it's the hard skills that 

are key to filling the construction jobs that are currently vacant. To keep the economic 

momentum moving, Congress and the administration should continue to pass and sign 

into law legislation like H.R.2353, the Strengthening Career and Technical Education for 

the 21st Century Act, and encourage all forms of workforce development, including 

Department of Labor-registered and industry-recognized education programs. 

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Diversity and Inclusion 

I have learned that attracting and cultivating a qualified and dedicated workforce 

has allowed my business to provide more value to our clients. At ABC and at Green 

Job Works, we are taking proactive steps to give all Americans terrific opportunities in 

the construction industry. We strive to embrace diversity as an empowering competitive 

advantage through education, awareness and business practices. 

As chairman of ABC's Diversity and Inclusion Committee, which was formed to 

better reach underrepresented communities within the construction sector, I help set 

diversity-focused goals for the association. In this role, I design the content for the 

Diversity & Inclusion Summit, an annual meeting for industry leaders and key 

stakeholders held in June in Washington, D.C. I also facilitate ABC's Diversity Resource 

Groups, which play an essential role in articulating, promoting and supporting the needs 

and goals of African Americans, Asians, Hispanics, LGBT, Native Americans, people 

with disabilities, veterans and women in construction. The committee also recognizes 

ABC members that display exemplary diversity leadership in their company, workforce, 

supply chain and community with best-in-class recruitment policies, retention practices 

and training and mentoring programs through the National Diversity Excellence Awards. 

I strive to incorporate these principles at Green Job Works. We partner with ABC 

Baltimore Metro Chapter's Project JumpS tart, a 14-week construction training program 

that uses industry-recognized curricula to teach carpentry, electrical and plumbing skills 

to high school graduates and GED holders, including many individuals who were 

formerly incarcerated. Project JumpStart works with more than !50 area employers, 

including many ABC members, to hire graduates and set them on a career path beyond 

an entry-level position. Since 2006, Project JumpStart has graduated more than 800 

Baltimore residents and has an 80 percent job placement rate. 2 

We also partner with Baltimore City's Job Opportunity Task Force, Center for 

Urban Families and other workforce organizations in the Maryland, D.C., and Virginia 

area. The emphasis that this Congress and administration have placed on reentry 

programs is bringing potential workers from the shadows into the light, which allows 

2 http://projectjumpstarttraining.org/ 

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businesses like ours to develop more people and fill jobs. Diversity and inclusion needs 

to be a primary focus in combating the workforce challenge. Legislation like the 

bipartisan FIRST STEP Act (HR.5682), which recognizes the need for flexible workforce 

development by providing additional funding for industry-sponsored organizations like 

Project Jumpstart to develop the workforce that will help solve this shortage. These 

programs work, and I would encourage Congress to continue to support them. 

When we are recruiting for our industry, it's important to seek out a diverse 

workforce and not to exclude anyone, including ex-offenders. We give people second 

chances, and we bring them up through training. My passion to build my company 

through diversity also has led me to commit additional resources to recruit more women 

into our industry and put them in leadership positions. While there may still be a stigma 

that construction is a man's job, nothing could be farther from the truth at Green 

Job Works. Eleven out of 18 of the crew leaders that we have promoted from within, are 

female. 

Green Job Works has only been certified as a minority business enterprise (MBE) 

firm for the Baltimore City MBE and the Metropolitan Washington Airport Authority. 

Although I am Hispanic and African American, I am only now in the process submitting 

applications to the remaining local and state agencies to achieve certification. People ask 

me what took so long, and I say that I just wanted to be known for the quality of work 

that I do. I didn't want to become successful because I simply met a requirement on 

someone else's contract. I changed my tune because I realized that if my business had the 

designation, then we could help our business partners accomplish more and win more 

work-not because of the designation, but because of the quality of service we are 

providing already. 

As the chief executive of a small construction business in a rapidly changing 

industry, I see that it's critical to remain engaged on a local and national level in order to 

succeed. As a member and volunteer leader of ABC, I had the opportunity to meet with 

President Trump and Linda McMahon, administrator of the Small Business 

Administration, at a 2017 White House event celebrating small businesses as "The 

Engine of the American Dream." The event highlighted the administration's commitment 

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to instituting policies that allow small businesses to flourish in America and spotlighted 

the important contributions they make to the American economy. The contributions that 

this Congress and the administration have made since that event one year ago on tax 

reform and regulatory relief has unlocked the potential of my small businesses to spur 

growth and create opportunities for my employees. 

Regulatory Relief 

This Congress' and administration's actions to roll back regulations like the Joint 

Employer rule provides certainty for small businesses like Green Job Works, while 

clarifying protections for our workers and making a positive difference in the 

construction industry. Many members of this subcommittee supported H.R. 3441, the 

Save Local Business Act, which passed the House last fall. The bill would have reversed 

the National Labor Relations Board's (NLRB) Browning-Ferris Industries decision that 

greatly expanded joint employer liability under the National Labor Relations Act during 

the Obama administration. Earlier this month, the NLRB issued a proposed rule that 

established an updated standard for determining joint-employer status under the National 

Labor Relations Act. Under the new proposed rule, "an employer may be found to be a 

joint-employer of another employer's employees only if it possesses and exercises 

substantial, direct and immediate control over the essential terms and conditions of 

employment and has done so in a manner that is not limited and routine."3 ABC and 

Green Jobworks are supportive of this proposed rule. 

For the construction industry and Green Job Works, harmful regulations can result 

in fewer construction projects and can hinder businesses' ability to hire and expand. 

Green Job Works is proud to be a growing small business that has built on the opportunity 

in front of us and reinvested in our business and community. 

Chairman Brat, Ranking Member Evans and members of the Subcommittee: thank 

you once again for inviting me to participate in today' s hearing. I look forward to 

answering any of your questions about how my small business has benefited from the 

economic growth in my community to become more successful in a competitive market. 

3 https:iiwww.federalregister.govidocumentsi20 18i09i14i20 18-!9930ithe-standard-for-determining-joint-employerstatus 

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Local Economic Expansion for Small Business 

House Small Business Committee 

Subcommittee on Economic Growth, Tax and Capital Access 

Thursday, September 27, 2018 

Mansour Azimipour, Founder and President 

A&K Development Corp 

Congressman Dave Brat, Chair, Subcommittee on Economic Growth, Tax, 

and Capital Access 

Congressman Dwight Evans, Ranking Member, Small Business 

Subcommittee on Economic Growth, Tax, and Capital Access. 

I am here and proud to be part of the Virginia's small business. The state 

which has been one of the top states to do business in, and is a wonderful 

place to live and work. 

My story starts from about 50+ years ago when I was 9 years old and 

established my first corporate like business to sell fire works in a small 

community and hiring teens of almost twice my age to be my salespersons 

selling my commodity in the other neighborhoods and earning commission. 

Even though I finished my education in Finance and Management, I never 

stop working on new businesses and explore the best way to create more 

jobs for people in my community. 

I consider myself a Live Statue of American Dreams, and born to be an 

Entrepreneur. I am proud to say in my entire life, I have not received any 

pay checks but have helped people to make a good living. 

I have been active in Construction, Development, and Real Estate for last 

30+ years. I Established A&K Development in 1988. 

I served as a member of Board of Directors of a Virginia community bank 

for 7 years from late 1990 to early 2000. That experience helped me to see 

the problems in the economy and the banking in 2005 before all of the worst 

recession of our history got to a full force like a hurricane 5 and damaged 

most of what millions of small businesses had worked for in their life time. 

By making the early decision, I could be able to go through those years. 
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I am a member of the Board of Trustees of a PK-12 private school in 

Virginia. 

With a few local friends about 8 years ago we established the Economic 

Development Partners Group of Orange County. 

The Economic Development Partners Group is a collaborative discussion 

group comprised of the Thought- Leaders interested in the local economic 

development success especially the Germanna Wilderness Area. Our group 

includes local and state elected and appointed officials, local government 

professional staff, small business owners, public educators, community 

college leaders, real estate business owners real estate developers, retired 

professionals and congressional district staff leaders. 

This group meets every month to be updated and discuss public and privet 

sector initiatives involving Economic Development, K-12 public education, 

Workforce development, Transportation, Rural broadband Development, 

health care and overall quality of life for Germanna Wilderness Area of 

Orange County. Through these discussions local leaders are informed and 

become advocates in supporting these initiatives in a number of critical 

forums. 

Small Business Environment 

About a year ago in a public meeting I asked Congressman Brat to give 

me a good reason to be happy about our future and our economy. His 

answer was: 

"The free Market platform we have for small businesses and its owners 

in our system is what will help us to move forward at any time." 

I still remember what he said because this is the best encouragement I could 

get from my Representative. As small business owners, we are in a much 

more comfortable situation now than we were few years ago. 

Small business owner takes RISKS unlike almost any other component of 

our economy. Small businesses frequently, and uniquely, place a significant 

percentage of total personal assets at risk of loss for the benefit of the 
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business. For a small business owner, risk is not just an abstract concept. 

Many external factors impact the level of risk the small business owner must 

take. Regulations, especially adding new requirements that could not have 

been anticipated, greatly impact a small business. Regulations affect the 

ability to borrow to start or expand a business. Regulations divert time and 

resources away from the main business. Regulations can slow 

implementation of a new project or the movement of a new product to the 

market. I encourage all legislators to thoroughly evaluate the risks that 

existing, or new, regulations imposed on the business climate especially 

regulations that cross a line and add risk to a level that discourages business 

startups or expansions. 

Small businesses are a critical part of our economy. In Orange County, 

Virginia where I am a business owner, we have about 900 employers. Over 

90% of them employ less than 20 people. But that represents nearly 30% of 

the entire workforce. At the local level, the financial stability of community 

and sensitivity to the impact of rules and regulations are helping create an 

environment that encourages investments by small business owners. In the 

last 24 months, we have 85 new starts up companies. 

One or the reasons that it has been difficult for my rural community and 

others to attract business is the lack of affordable and reliable broadband 

internet service. This kind of service is becoming more essential to 

conducting business today in a national or global economy and lack of that 

service limits growth. The lack of high speed internet even impacts local 

schooling in that students are often unable to access information resources to 

do their homework unless they go to the local libraries or other places if 

they can find it close enough to their house that offers such service. In any 

rural area, providing the last mile of connectivity is expensive and from a 

commercial internet service provider's perspective, not economically viable 

or profitable. Although high speed internet service has been available in 

urban areas for many years, it is still not migrating to the rural communities. 

When commercial service providers are unwilling to provide the initial 

capital investment to reach remote areas, some other financing mechanism 

has to be found. My local government is willing to support such 

investments to the extent their resources allow. However, federal financial 

support to those localities would enable them to partner with commercial 

internet providers to provide high speed internet service to more of our 
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residents and businesses. It would also foster a more attractive environment 

for small or large businesses to locate in rural areas and revitalize areas that 

have experienced hard times in the past. We as a nation need to enable all of 

our citizens so that they can contribute to a strong America economy. 

A vail ability of Capital to Small Business Owners 

To start this part of my testimony, I should say I believe most of the banks 

are almost closed when it comes to providing much needed capital to small 

businesses. 

Because of what happened in our economy after 2007, banks are so afraid of 

making loans to small businesses after they made millions of bad loans 

between 2000 to 2006 which that was one of the reasons we had a recession. 

The present banking behavior is reminding me of a saying I heard from my 

parents: 

"A person was standing on the flat roof of a high rise, someone told him be 

careful not to fall off the roof, he started to walk backward to avoid falling, 

but backed up more than being safe and fell from the other side.' 

The banking underwriting system today is like a person who was bitten by a 

rattlesnake and is afraid of even a black and white rope for the rest of its life. 

This does not work for a bank when its livelihood depends on making loans 

to qualified businesses. 

During the recession, most of the small business owners credit got hit and 

the banks that were giving loans to these businesses up to more than 80% 

loan to value, now I have seen many cases that they are not even approving 

30-40% loan to value, just because of the bad experience they have and 

some because of the new regulations they have to deal with. 

This is unfortunate that most of the available capital to small businesses are 

in hands of secondary market with 12 to 18% APR with very difficult terms 

which barely any small business owner can afford the consequences of 

those financing. 

My hope is to see the banks, which are one of the most essential of our 

economic growth, find a way to be able to help small business owners with 

the much needed capital for their new and expansion ideas. 

New Tax Laws 
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I am not very good of understanding the new tax laws and effect but as this 

was the first major tax law change in several decades., for businesses, these 

cuts are beneficial and we all hope that reduced taxes will help economic 

growth. This year it will become clearer whether corporations and small 

business owners plan on reinvesting this money back into their businesses, 

creating growth and more jobs and the effect of that. 

Based on the reports I read, it seems this tax cut is helping the larger 

corporations more than small business. 

Mansour Azimipour 

A&K Development Corp. 
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Women Impacting Public Policy 

Written Testimony of 

Brenda Jones Barwick 

President and CEO 

Jones Public Relations, Inc. 

Oklahoma City, OK 

On behalf of 

Women Impacting Public Policy (WIPP) 

Before the 

Committee on Small Business Subcommittee on Economic Growth, Tax and 

Capital Access 

"The Local Impact of Economic Growth" 

September 27, 2018 

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Chair Brat and Ranking Member Evans, I am Brenda Jones Barwick, President and CEO of 

Jones Public Relations, Inc., located in Oklahoma City, Oklahoma. I am also testifying today on 

behalf of Women Impacting Public Policy (WIPP), of which I am a board member. WIPP is a 

national nonpartisan policy organization advocating on behalf of women entrepreneurs. WIPP 

members have testified many times before this Committee because of its importance to women 

entrepreneurs, who are the fastest growing segment of entrepreneurs in the nation. 

When I started this business in 2001, not many people would have given it much of 

a chance. I primarily came from a political background that included a position in the White 

House West Wing and with the U.S. Ambassador to Switzerland, among several different 

roles at international agencies. My first experience in the private sector was upon my 

return to Oklahoma in the early 1990s. When I was debating the idea of starting my own 

firm, like any first-time entrepreneur, I wondered if I had the skills and resources to 

successfully start a company from scratch. I asked Ambassador Phil Winn, who had started 

many businesses in Denver, "How do I know if I have what it takes to be a successful 

entrepreneur? When is a good time to start a company?" His answer was, "You don't know 

until you do it." It was a great impetus for me to start my business. Ambassador Winn also 

taught me there are no absolutes and nothing is certain- you just have to go for it. 

From its beginning in 2001, Jones PR is now ranked the 1091

h largest PR agency in the U.S. 

by PRWEEK magazine's 2018 rankings and has been listed on the Inc. 5000 Fastest Growing 

Private Companies in America in 2015, 2016, 2017 and 2018. In 2015, we were asked to become 

partners in PRO! Worldwide, which now provides us with international agency partners in over 

100 cities across 50 countries. This year, we became the first Oklahoma PR agency to ever win 

the most prestigious creative award in the world -a Gold Lion Award at the Cannes, France, 

International Festival of Creativity that received intense competition among 32,000 entries from 

90 countries for 26 categories. 

I would like to set the stage for my testimony by giving you a snapshot of Oklahoma's 

economy and businesses. Last week, The Oklahoma Employment Security Commission reported 

the August unemployment rate dropped to a low of 3. 7%, compared to 4.2% last August. 

According to the Greater Oklahoma City Chamber, the metro area is experiencing its lowest 

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unemployment rate of 3.3% in a decade, which had reached 4.7% in 2016. The downturn in the 

energy sector created a flat job growth from 2015-2017, but so far in 2018, Oklahoma City has 

hit a 10-year employment high. Average weekly wages rose 1% in the first quarter of 

2018 compared to the first quarter of 2017. Oklahoma City tops the list of cities with the fastest 

construction industry growth rate at 17% in 2018. In Oklahoma, 99.4% of all businesses are 

considered small. Small businesses created 13,139 net jobs in 2015, with firms employing 

fewer than 20 employees experiencing the largest gains. Women-owned firms have an 

average of 9 employees, which is lower than their male-owned counterparts. By far, the 

largest group of small businesses in Oklahoma are nonemployers, or businesses without 

employees. This begs the observation that small business policy is not one dimensional -

policies affect companies differently depending on their size and business purpose or segment. 

Today's hearing is focused on the local impact of public policies made in Washington. It 

is my experience that it makes all the difference in the world. Tax policy, for example, affects 

every business in America. And yet, until this year's tax reform bill, the Congress only recognized 

"C" Corps. For the first time, the tax bill treats income from businesses organized as pass-through 

entities (LLCs, S Corps, Partnerships) as business income by allowing pass-throughs to separate 

some of their business income from their personal income. Now, there are exceptions and some 

passthroughs may not be able to claim this deduction, but the premise is a good one. Recognizing 

small businesses as entities that need different rules and regulations than large companies is key 

to our success. My company is organized as an S Corp and I have recognized a substantial 

benefit in the new lower tax rate. This change has allowed me to pay bonuses, hire more 

personnel and increase salaries up to 10% for all employees. 

Another difference that requires new rules, but has tremendous consequences for small 

companies, is how retirement is treated. More than 1/3 of small business owners do not have a 

retirement plan. 1 Additionally, the 2018 Retirement Savings survey by GoFundingRates found 

that 42% of Americans have less than $10,000 saved for their retirement. Many small 

companies find the offering of 401(k)s to be cumbersome and expensive, with very limited 

1 Ryan Deroussau, "More Than A Third of Entrepreneurs Are Making a Big Financial Mistake, Fortune, (2017) 

ava i I able at http://fortune. com/2017/09/11/retirement ·entrepreneur -plan/. 

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alternatives for companies like mine to help our employees save for the future. 

President Trump's recent Executive Order on this issue and consequent legislation is beneficial 

not only for the owner, but also for the employees of small businesses. We applaud this effort. 

Jones PR offers a 401 (k) plan to its employees with up to a 4% match. However, to be 

competitive and attract the best talent while large companies are offering higher 

match percentages for retirement plans, rule changes are needed to specifically help small 

businesses remain competitive in the retirement plan benefits. 

Additionally, health insurance continues to be one of the biggest financial challenges for 

small businesses, as it is expensive and often without many choices. Since its inception, WIPP 

has advocated for small businesses pooling across state lines. This mechanism is a way to increase 

access and offer better prices for employers, which is why we supported the notion of exchanges 

contained in the Affordable Care Act {ACA) and Association Health Plans {AHPs). We were 

encouraged to see that the Department of Labor supports the notion of AHPs, but we do not 

think these plans will work as long as the pool is limited by state boundaries. One bright spot on 

this issue has been recent House action to change the definition of full-time employee from 30 

hours a week to 40 hours a week, with respect to required health insurance coverage. WIPP has 

been pushing for this change since the ACA was enacted. 

WIPP has also long advocated for an end to a one size fits all approach to banking 

regulations. Many compliance regulations and the heightened regulatory environment created 

under Dodd-Frank have hampered small banks from lending to small businesses. Small regional 

and community banks have the highest approval rate for small business loans, making them an 

important source of capital. We applaud the new law enacted this year which narrows the scope 

of Dodd-Frank regulations to give small and mid-size banks regulatory relief. Access to capital 

continues to be problematic for women-owned businesses, who lag far behind their male 

counterparts with respect to available financing- women receive only 16% of all conventional 

small business loans.2 

2 Jared Hecht, "State of Small Business Lending: Spotlight on Women Entrepreneurs," Fundera Ledger, (2016) 

available at https:/ /www.fundera.com/blog/the-state-of-online-small-business-lending-q2-2016. 

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On the subject of regulation, small businesses bear a disproportionate burden. A 

survey published by the National Small Business Association found that in 2017, 44% of 

businesses spend at least 40 hours a year dealing with federal regulations and 29% spend at 

least that much on state and local rules. The average established small business spends $12,000 

a year in regulatory compliance, while startups spend an average of $83,000 on regulatory 

compliance in their first year. In 2017, the SBA Office of Advocacy helped address these 

burdens by changing 16 regulations and saving small business $913.4 million in regulatory 

costs. We encourage any further efforts to reduce burden on small businesses. 

An example of a regulation that has an impact locally is the recent proposed rule by the 

National Labor Relations Board. The proposed rule rolls back a change made three years ago, 

which altered the definition of what constitutes a "joint employer." The proposed rule returns 

the definition of "joint employer" to read that an employer must possess and actually exercise 

substantial direct and immediate control over the essential terms and conditions of employment 

such as hiring, firing, discipline, supervision and direction. This change affects staffing 

agencies, contractors and franchises-many of whom are small businesses or provide 

services to small businesses. 

Federal regulations and compliance costs impact Jones PR in a couple of ways. We serve 

many clients in the energy and financial sectors that have seen the most burdensome regulatory 

requirements in recent years. As those regulations are being turned back, it allows energy 

companies, community banks and those who service energy and banking industries, such as a 

Iandman services company or a financial software company, to have more funds to invest in 

marketing to grow their companies. Second, and a more direct impact, is the constant fluctuation 

of federal regulations and compliance requirements that impact all areas of business operations, 

including human resources, insurance and retirement plans. It is not feasible for one person to 

be knowledgeable in the many regulatory areas affecting Jones PR's business. The hiring of many 

more employees would be necessary, creating unsustainable employee expenses. Therefore, 

Jones PR will be forced to hire an independent professional employment organization company 

in order to reduce our risks of being in compliance with federal regulations. 

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While we have seen many positive changes initiated by this Committee, there is still more 

work to be done. The federal government has continued to miss its 5% goal of contracting with 

women-owned businesses. The consequences of this missed goal mean fewer dollars flowing to 

women businesses and their local economies. In addition, the government actively discourages 

small business growth for federal contractors, limiting these companies from reaching their full 

potential. We applaud House passage of H.R. 6330, the "Small Business Runway Extension Act 

of 2018," the important 5-year lookback legislation passed by this Committee to help address 

this problem. 

In summary, the economy is healthy, the stock market is strong, and unemployment is at 

a record low. According to the US Census Bureau, median household income rose to $61,400 in 

2017, up 1.8% from the previous year. The number of Americans working full-time, year-round 

increased by 2.4 million.3 In my view, today's regulatory landscape, recent legislative changes 

and a strong economy offer an environment for small businesses to thrive. We especially want 

to thank the Committee for paying attention and playing such an important role in the success of 

small businesses in this country. 

3 U.S. Census Bureau, Income, Poverty, and Health Insurance 2017, (2018) available at 

https:/ /www.census.gov/content/dam/Census/newsroom/press-kits/2018/iphi/presentation-income-povertyplot-points.pdf. 

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Written Testimony of Valarie J. Cofield 

President/ CEO 

Eastern Minority Supplier Development Council 

Before the House Committee on Small Business 

Subcommittee on Economic Growth, Tax, and Capital Access 

Chairman Brat, Ranking Member Evans and Members of the Subcommittee, thank you for the 

opportunity to provide testimony today about the growth and development of minority-owned 

businesses, particularly as it relates to three key areas: 1) the economic impact and importance of the 

development and growth of minority-owned businesses; 2) the impact of H.R. 1- Public Law No: 115-

97, the Tax Cuts and Jobs Act; and 3) the continued funding of the Minority Business Development 

Agency (MBDA). 

My name is Valarie J. Cofield and I am the President and CEO of the Eastern Minority Supplier 

Development Council (EMSDC). EMSDC is headquartered in Philadelphia, PA with a satellite office in 

Pittsburgh, PA. EMSDC is one of 23 regional affiliates of the National Minority Supplier Development 

Council (NMSDC), operating in Pennsylvania, southern New Jersey and Delaware. As the president of the 

Eastern Minority Supplier Development Council, my mission is to ensure that all diverse businesses have 

access to and opportunity in the private-sector and public supply chains. 

Recognizing the impact and importance of minority business enterprises, in March 1969, President 

Nixon signed Executive Order 11458 requiring government agencies and their contractors to contract 

with minority-owned companies and to report the results against pre-established goals to the Office of 

Minority Business Enterprise which became the Minority Business Development Agency (MBDA) in 

1971. In 1972, as the result of several federal grants focused on private-sector engagement of minority 

businesses, the National Minority Supplier Development Council was formed. Formation of the NMSDC 

in 1972 represented a private-public partnership to provide increased procurement and business 

opportunities for minority businesses of all sizes. "By 1974 the newly formed NMSDC contracted with 

the U.S. Department of Commerce's Office of Minority Business Enterprise to encourage major 

corporations to "increase their purchase of goods and services from minority businesses. Almost half a 

century later, NMSDC has expanded to become a not-for-profit, member-funded advocacy organization 

that has been the leader in thought and action for minority supplier development throughout the U.S., 

in the private and public sectors." 1 

The National Minority Supplier Development Council is the global leader in advancing business 

opportunities for its certified Asian, Black, Hispanic and Native American business enterprises. Its 

network of 23 regional affiliate councils includes over 1,400 corporate members, including most of 

America's largest publicly-owned, privately-owned and foreign-owned companies, as well as 

universities, hospitals and other buying institutions. The regional councils certify and match more than 

12,000 minority-owned businesses with member corporations, institutions and organizations that are 

interested in to purchasing their products, services and solutions from certified minority-owned from 

certified minority-owned businesses. Globally, the NMSDC Network includes five (5) Global Link partners 

(Australia, Canada, China, South Africa and the United Kingdom}. 

1 The Business Case for Minority Business Enterprises: Fueling Economic Growth, White Paper, National Minority 

Supplier Development Council (2017) 

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I. Economic Impact of Minority-Owned Businesses by the 

Numbers 

"In 2010, the minority population (Hispanic-, African-, Asian- and Native-Americans) totaled 107 million. 

According to the US. Department of Commerce, the minority population had an estimated buying power 

of $2.5 trillion, larger than the buying power of all but 5 countries in the world including the UK, Russia, 

and France. Also, according to the U.S. Department of Commerce, between 2002-2007, minority owned 

firms outpaced the growth of non-minority firms in gross receipts (55%), employment (27%), and 

number of firms (46%)." 

A report from the Milken Institute and the Minority Business Development Agency (MBDA) [indicated] 

that ... the number of minority business owners in the U.S. (currently estimated at 3.3 million) is growing 

at a rate of 17% annually, MBE sales are growing 34% a year, twice as fast as the national average. The 

Department of Commerce also notes that between 2000 and 2045, the minority population will 

contribute as much as 70% of the total increase in purchasing power." 

Minority-owned businesses are growing at a much faster rate than that of U.S. businesses overall. At the 

time of the U.S. Census Bureau 2007 Survey of Business Owners, minority-owned businesses accounted 

for 21.3 percent of the nation's businesses, employed 5.8 million persons, and generated $1.0 trillion in 

receipts. Source Pennsylvania Smafl Business Development Center 

"NMSDC certified MBEs total economic impact exceeds $4008 in output resulting in 2.2M jobs (direct or 

indirect) This translates into $1.1B in business activity daily. These same MBEs generate approximately 

$498 in tax revenue for local, state and federal governments."' 

EMS DC: A Closer Look •source Eastern Minority Supplier Development Council (EMSDC), U.S. Department of Commerce and U.S. Census Bureau 

Our foundation as an NMSDC affiliate directly aligns us with the most powerful minority supplier 

organization in Corporate America. EMSDC boasts corporate membership of over 120 Fortune 100 and 

Fortune 500 companies either headquartered or doing business in Pennsylvania, southern New Jersey 

and Delaware, all with organizational commitment to supplier diversity. Through its NMSDC network 

affiliation, EMSDC has access to national and international resources to deliver programming that gives 

unparalleled coverage of both private and public-sector procurement opportunities, nationally and 

globally. 

' NMSDC 2014 Economic Impact Report 

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The Core of Our Mission 

Corporate Partners 

"Our corporate members have annual revenues estimated to exceed $1.1 trillion. A commonality 

between our members and corporations throughout America is the understanding of the value and 

importance of diversity and inclusion in business. The proof is in the numbers. On average, supplier 

diversity programs add $3.6 million to the bottom line for every $1 million in procurement operation 

costs. The high return on investment is undeniable. In 2014, MBE spending grew 20% from the previous 

year. The leading category driving growth came from Technology and Telecom, which grew 46% that 

year, from $20.5 million to $30 million. Another category of significant growth was Facilities, which 

more than tripled from $980 thousand to $3.1 million during the same period." 3 

EMS DC Certified Businesses by the Numbers* 

EM SOC's MBEs in 2017 had an average annual revenue of $7.8M and collective revenue of $3.9B. In 

2017, EM SOC's 495 certified businesses employed 17,612 individuals, or an average of 35.6 employees 

per business, far outpacing the rate of employment for the average small business of 20 employees per 

business. 

3 EMSDC 2016 Annual Report. Forbes, D&B Stanton, R. 12015, January 10). The Hackett Group takes fresh look at 

supplier diversity• MBN USA. Retrieved December 1, 2015, from www.mbnusa.biz/hackett-group-takes-fresh-looksupplier-diversity/The 2014 Nielsen Supplier Diversity Annual Report 

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Demographic Overview Minority Businesses- EMSDC's Footprint in Delaware, 

Southern New Jersey and Pennsylvania* 

Delaware 

EMSDC is known as the ultimate connector, that reputation shines when a successful corporation 

contracts with an M BE that meets its needs and meshes with its organizational culture. Through 

collaborations, EMSDC has built partnerships with economic development program operators in the 

region, driving the agenda towards synergistic operation and programming that yields maximum benefit 

to its clients. EMS DC, through its private and public partnerships, supports the long-term sustainable 

growth of minority-owned businesses and their participation in the global supply chain. As compared 

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across Delaware, New Jersey and Pennsylvania of all minority-owned businesses, EMSDC's certified 

businesses yielded 35 times more in revenue than non-certified minority-owned businesses. 

II. H.R. 1- PUBLIC LAW NO: 115-97, 

THE TAX CUTS AND JOBS ACT 

Will small diverse businesses benefit from H.R. 1 -Public Law No: 115·97? 

The implications of H.R. 1- Public Law No: 115-97, The Tax Cuts and Jobs Act, on small diverse 

businesses are uncertain. The initial read of the benefits offer optimism that with the reduction in the 

effective tax rate for all businesses, whether through the direct reduction of the corporate tax rate to a 

flat tax of 21% or the pass-through deduction of 20%, H.R. 1 affords the opportunity for businesses to 

realize additional capital to invest in human talent, resources, equipment and inventories. The structure 

of H.R. 1, creates concerns because most small businesses (diverse businesses) are not C-corps and 

therefore the effective tax rate of 21% will not apply to these businesses. Small businesses (diverse 

businesses) are typically pass-through businesses, sole proprietorships, limited liability companies, 

partnerships, and S corporations. They pay no taxes as an entity and instead, profits from the business 

are passed through the entity, with the owner(s) paying tax on them at the individual tax rates. Under 

H.R. 1, the top individual rate is 37%, higher than the new 21% flat rate for C corporations. 

Eligibility for the 20% Pass-Through4 Deduction 

Under H.R. 1, persons earning income through pass-through entities (new IRC Sec. 199A), may 

be eligible to deduct up to 20% oft heir net business income on their individual tax returns, in 

addition to all other business deductions. If applicable, owners of pass-through businesses are 

effectively only taxed on 80% of business income, lowering the top individual tax rate for these 

business owners from 37% to 29.6%. This is a temporary reduction expiring January 1, 2026 and 

has limitations, including: 

This deduction is phased out if income exceeds the $315,000/$157,500 limits. It 

disappears entirely for married individuals filing jointly whose income exceeds $415,000 

and for singles whose income exceeds $207,500. 

Professional services businesses, or any business where the principal asset is the 

reputation or skill of one or more of its owners, are not automatically eligible for this 

additional 20% pass-through deduction. These business owners are only eligible if 

taxable income, from all sources, after deductions is less than $315,000, married 

individuals filing jointly, or $157,500 if single. Otherwise the deduction is phased-out. 

Disappearing entirely for married individuals filing jointly whose income exceeds 

$415,000 and for singles whose income exceeds $207,500. These businesses are also 

not eligible for the W-2 employee and W-2 employee plus qualified business property 

deductions. 

4 H.R.l- Public Law No: 115-97 

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Bonus Depreciation 

The increase in bonus depreciation of new and used long-term assets from SO% to 100% in a 

single year through 2023, with incremental reductions down to 20% through 2027. Listed 

property (except computers) must be used over 50% of the time for businesses to qualify for 

bonus depreciation 

Other Key Provisions 

Limits on Deducting Business Interest- small businesses with gross receipts less than $25 million 

are not subject to business interest deduction limits. 

Limits on Deducting Net Operating Losses- elimination of NOL carrybacks and deductions are 

only allowed up to 80% of taxable income, although they may be carried forward and deducted 

indefinitely into the future. 

H.R. 1, also eliminates various business tax deductions and credits, including the: 

deduction for business entertainment expenses, except for meals 

starting in 2026, the deduction for meals provided to employees for the convenience of 

the employer 

deduction for payment of employee parking, mass transit, or commuting expenses 

domestic production activities deduction, and 

deduction for local lobbying expenses. 

Impact on Small (Diverse) Businesses 

While it is too soon to measure the impact of H.R.l on small businesses, there are several immediate 

observations that can be made and must be reviewed: 

• The disparate application of the 20% pass-through bonus, adversely impacts professional service 

businesses which represent approximately 40% of all small diverse businesses and therefore will 

provide little to no tax savings to these business owners. Savings that would result in investment 

in new talent, technology, business development tools/resources will not be realized for these 

businesses, negatively impacting growth and long-term viability. 

The various business tax deductions and credits that have been eliminated will have direct 

impact on small business, who use these deductions and credits to offset tax liability, 

particularly pass-through businesses. 

Further the provisions of H.R. 1 are too short-term to have sustainable impact on small 

businesses, as the potential for savings and investment will be mitigated by access to capital and 

rising health care costs. 

Pass-through businesses will bear the burden of H.R. 1 and receive the least benefits or relief 

from H.R.l. These businesses are disproportionately, minority-owned. 

Unfortunately, the sustainable and measurable benefits to small businesses may only be indirect and 

the result of increased spending and demand from current and potential customers that may increase 

spending and seek their services, due to realized savings from H.R. 1. 

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Ill. FUNDING FOR THE U.S. DEPARTMENT OF COMMERCE, 

MINORITY BUSINESS DEVELOPMENT AGENCY (MBDA) 

Established in 1969 by Executive Order 11458 and formed in 1971, the Minority Business Development 

Agency (MBDA) is a part of the Department of Commerce and is the premier federal agency dedicated 

to supporting the expansion of minority- and Native-owned business enterprises. Unlike the Small 

Business Administration and other federal agencies that focus on broader demographic and emerging 

businesses, the MBDA's directive is to focus on the unique challenges and needs of minority-owned 

businesses. It is the only federal agency "dedicated to the growth and global competitiveness of our 

Nation's minority business enterprises (MBEs), which, according to the U.S. Census Bureau's 2007 Survey 

of Business Owners, contributed $1 trillion in total economic output and employed nearly 6 million 

Americans." 

The Minority Business Development Agency (MBDA) reported that at the end af the five-year period 

(2007-12) it studied, there were 8 million minority-owned businesses in the U.S., a 38% increase in 

that five-year period. It also noted: 

Between 2007 and 2012, the number of MBEs grew three times faster than the population 

growth in minorities. 

Results of the U.S. Census Bureau's 2012 Survey of Business Owners revealed that MBEs 

grow significantly faster than non-minority-owned businesses. 

Employment ot MBEs increased 33% ond gross receipts rose by 57%, while non-minorityowned businesses shrank by 5%. 

MBDA olso noted that minority-owned businesses continue to log in annual receipts behind nonminority-owned businesses: 

Averaging $196,000 in gross receipts in 2012, compared to $650,000 in gross receipts for 

non-minority-owned businesses in thot same period. 

By 2012, the number of MBEs had increased in the preceding five years from 21% to 29%, 

important progress, but lagged significantly behind the growth in U.S. minority population. 

The Administration's FY2019 budget blueprint recommends the reduction of the agency through the 

elimination of the network of MBDA centers nationwide. "The network of approximately 40 MBDA 

Business Centers is the "flagship" program of the Minority Business Development Agency. The Centers 

serve as the face of the Agency's imperative as the direct technical assistance providers to minority 

businesses on the ground in communities across the Nation. Without the MBDA Business Center 

network, MBDA would simply be unable to provide hands-on assistance to facilitate access to capital or 

contracts by minority businesses." 

Understanding the persistent economic challenges that minority-owned businesses face, along with the 

income and wealth gap between minority and non-minority communities, it is important that the MBDA 

remains fully-funded and that the network of MBDA centers nationwide have adequate resources to 

support minority-owned businesses doing the work to assist these businesses in overcoming the barriers 

to growth and economic parity that they disproportionately encounter. 

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"In the beginning, it was the support of the federal government that gave life and momentum to the 

cause of minority supplier development. Now more than ever, that support is needed for the next stage 

in this vital work. At this moment in American history, that work, NMSDC and the philosophies and 

intentions of a Republican President and Congress can be very much on the same page. To that end, 

NMSDC urgently requests that the new administration and Congress reconsider a recent budget 

proposal to eliminate the Minority Business Development Agency (MBDA) of the U.S. Department of 

Commerce." 

Conclusion 

"Success does not lessen the challenge: the MBE still faces a far steeper climb to achieve equality with 

his or her non-minority competitors. The barriers to equality in business are subtle and overt, 

institutional and incidental, and NMSDC and its network of affiliate councils, including EMSDC, is 

uniquely equipped to change this environment- not by asking but by delivering, as MBEs do again and 

again. They offer more than a return on investment. 

Minority supplier development fuels the broadest possible economic growth. Corporations forge 

profitable relationships with intensely motivated and innovative suppliers. The success ofthose 

suppliers then impacts their own communities: they invest, employ and contribute to the tax base and 

our region. On a more profound level, they give us all a vested interest in the American economy." 5 

The sustainability of small businesses, particularly small diverse businesses is bolstered by private-public 

partnerships, programs and initiatives. The NMSDC and its network of affiliate councils, including the 

EMSDC, is well-equipped to support the continued development and growth of minority-owned 

businesses, however continued support is needed, in the form of the MBDA, from the Federal 

government to ensure that small diverse businesses are well-positioned for continuous growth and longterm economic impact. 

5 The Business Case for Minority Business Enterprises: Fueling Economic Growth, White Paper, National Minority 

Supplier Development Council (2017) 

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INTERNATIONAL ASSOCIATION 

FOR HEALTH COACHES 

September 27, 2018 

Committee on Small Business 

2361 Rayburn House Office Building 

Washington, DC 20515 

Re: Small Business Committee 

About Us 

Darrell Rogers 

International Association for Health 

Coaches 

202-255-0527 

darrell@integrativenutrition.com 

of Economic Growth 

There are over 40,000 practicing Health Coaches in 129 countries that have been taught the 

fundamentals of achieving wellness and being a supportive mentor who motivates individuals to 

cultivate and achieve their own positive health goals. 

What does a Health Coach do? 

A Health Coach is a guide and mentor who empowers their clients to take responsibility for his or her 

own health and supports their efforts to implement and sustain healthy lifestyle and behavior changes. 

These positive changes contribute to the achievement of an individual's personal wellness goals, 

decrease health care expenditures, and increase energy and productivity. Common areas of focus 

include weight management, improving nutrition habits, better sleep, increased energy, and stress 

management to name just a few. The vast majority of Health Coach practices are female owned and 

operated small businesses. 

Health Coach Occupation Facts 

American College of Sports Medicine's Worldwide Survey of Fitness Trends found health and 

wellness coaching has been in the Top 20 trends in the survey since 2010. In their most recent 

survey, health and well ness coaching jumped from No. 17 to No. 13 for 2017 trends. 

The National Consortium for Credentialing Health and Wellness Coaches (NCCHWC) estimates 

that roughly 15,000 to 35,000 people self-identify as Health or Wellness Coaches in the U.S. today. 

The American Medical Association (AMA) supports health coaching and encourages their 

member physicians to incorporate Health and Well ness Coaches into their practices. The AMA offers 

a CME approved learning tool to their member physicians on best practices of hiring and working 

collaboratively with Health and Wellness Coaches to improve patient lifestyle choices and prompt 
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