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89–441 PDF 2014

S. HRG. 113–385 

NOMINATION OF MARIA CONTRERAS-SWEET 

TO BE ADMINISTRATOR, U.S. SMALL BUSINESS 

ADMINISTRATION 

HEARING 

BEFORE THE

COMMITTEE ON SMALL BUSINESS 

AND ENTREPRENEURSHIP 

UNITED STATES SENATE 

ONE HUNDRED THIRTEENTH CONGRESS 

SECOND SESSION 

FEBRUARY 12, 2014 

Printed for the Committee on Small Business and Entrepreneurship 

( 

Available via the World Wide Web: http://www.fdsys.gov 
(II) 

COMMITTEE ON SMALL BUSINESS AND ENTREPRENEURSHIP 

ONE HUNDRED THIRTEENTH CONGRESS 

MARY L. LANDRIEU, Louisiana, Chair 

JAMES E. RISCH, Idaho, Ranking Member 

CARL LEVIN, Michigan 

MARIA CANTWELL, Washington 

MARK L. PRYOR, Arkansas 

BENJAMIN L. CARDIN, Maryland 

JEANNE SHAHEEN, New Hampshire 

KAY R. HAGAN, North Carolina 

HEIDI HEITKAMP, North Dakota 

EDWARD J. MARKEY, Massachusetts 

CORY A. BOOKER, New Jersey 

DAVID VITTER, Louisiana 

MARCO RUBIO, Florida 

RAND PAUL, Kentucky 

TIM SCOTT, South Carolina 

DEB FISCHER, Nebraska 

MICHAEL B. ENZI, Wyoming 

RON JOHNSON, Wisconsin 

JANE CAMPBELL, Democratic Staff Director 

SKIFFINGTON HOLDERNESS, Republican Staff Director 
(III) 

C O N T E N T S 

OPENING STATEMENTS

Page 

Landrieu, Hon. Mary L., Chair, and a U.S. Senator from Louisiana .................. 1 

Feinstein, Hon. Dianne, a U.S. Senator from California ...................................... 1 

Risch, Hon. James E., Ranking Member, a U.S. Senator from Idaho ................. 3 

WITNESSES

Contreras-Sweet, Maria, Nominee to be Administrator of The Small Business 

Administration, Washington, DC ........................................................................ 3 

ALPHABETICAL LISTING AND APPENDIX MATERIAL SUBMITTED

Boxer, Hon. Barbara 

Prepared statement .......................................................................................... 30 

Cantwell, Hon. Maria 

Questions for the record ................................................................................... 32 

Contreras-Sweet, Maria 

Opening statement ........................................................................................... 3 

Prepared statement .......................................................................................... 6 

Endorsements and Letters of Support of the Nominee ........................................ 52 

Feinstein, Hon. Dianne 

Opening statement ........................................................................................... 1 

Landrieu, Hon. Mary L. 

Opening statement ........................................................................................... 1, 23 

Palomarez, Javier 

Prepared statement .......................................................................................... 83 

Risch, Hon. James E. 

Opening statement ........................................................................................... 3 

Questions for the record ................................................................................... 38 

Shaheen, Hon. Jeanne 

Prepared statement .......................................................................................... 28 

Questions for the record ................................................................................... 47 

Small Business Majority 

Prepared statement .......................................................................................... 85 

(1) 

NOMINATION OF MARIA CONTRERAS-SWEET 

TO BE ADMINISTRATOR, U.S. SMALL 

BUSINESS ADMINISTRATION 

WEDNESDAY, FEBRUARY 12, 2014 

UNITED STATES SENATE, COMMITTEE ON SMALL BUSINESS

AND ENTREPRENEURSHIP, Washington, DC. 

The Committee met, pursuant to notice, at 10:38 a.m., in Room 

428A, Russell Senate Office Building, Hon. Mary Landrieu, Chairman of the Committee, presiding. 

Present: Senators Landrieu, Levin, Cantwell, Cardin, Booker, 

Risch, and Fischer. 

HON. MARY L. LANDRIEU, CHAIR, AND A U.S. SENATOR FROM 

LOUISIANA 

Chair LANDRIEU. Good morning everyone, and welcome to our 

confirmation hearing on Mrs. Maria Contreras-Sweet. We are so 

happy to have Senator Dianne Feinstein joining us this morning— 

welcome, Senator—for the introduction of our nominee. 

Because of the difficulty of scheduling with our ranking member, 

Senator Feinstein, and other members, we are going to go in a little different order. I am going to save my remarks until the end 

to accommodate the schedules of other members that are here. But 

let me just say it is an honor to have served as the Chair of this 

Committee, and I am leaving it in excellent hands to Senator 

Maria Cantwell, who will be joining us, I believe, shortly. 

It has been a pleasure to work with my partner, Senator Risch, 

for several years passing major pieces of legislation and conducting 

really important roundtables on issues that have, I think, strengthened the entrepreneurial spirit of the United States. 

Let me turn it over now to the Honorable Dianne Feinstein to 

introduce our nominee, and then I am going to ask the ranking 

member for his remarks, if you do not mind, and then we will hear 

from our nominee and try to proceed that way to accommodate everyone’s schedule. 

Senator Feinstein. 

STATEMENT OF HON. DIANNE FEINSTEIN, A U.S. SENATOR 

FROM THE STATE OF CALIFORNIA 

Senator FEINSTEIN. Thank you very much, Madam Chairman, 

Senator Risch—I see you on Tuesday and Thursday afternoon in 
2 

Intelligence. It is nice to see you here this morning—and members 

on both sides. 

It is my great pleasure to introduce to this Committee, Maria 

Contreras-Sweet, President Obama’s nominee to head the Small 

Business Administration, and she comes with my strongest and 

highest positive recommendation. 

Let me begin by telling you a little bit about Maria’s inspiring 

personal story. She was born in Guadalajara, Mexico. She immigrated to my home state of California when she was only five years 

old. Her mother worked at a chicken packaging plant to support 

and provide for Maria and her five siblings. 

She went on to study at Cal State Los Angeles. She worked hard. 

She built a distinguished career, including serving as the secretary 

of the Business, Transportation and Housing Agency, a big agency 

in California. In addition to Maria’s outstanding track record of 

public service, she possesses a keen intellect and considerable private sector experience, both of which will serve her well. 

But most important to me, you know, the longer we are here, it 

is easier to look at people as problem makers and problem solvers. 

This woman is a problem solver. 

So let me talk briefly about the private sector. This nomination 

comes at an important time for the small business community of 

our economy, and Maria knows firsthand what it takes to run and 

grow a small business. She is the founder of ProAmerica Bank, the 

first Latino-owned business bank in more than 30 years. Before 

that, she was the president and co-founder of a private equity fund 

that specialized in helping small businesses access capital. 

As you know, increasingly, those at the very top of the income 

scale have easy access to capital, but many Americans who earn 

more moderate incomes have trouble getting approval for a loan. 

This is the kind of support that is essential to grow a small business, something that Maria knows very well. In fact, she has dedicated a considerable portion of her career to help small businesses 

access capital, to grow, and to employ more people. She has earned 

respect from community and business leaders alike. 

The Los Angeles Chamber of Commerce CEO Gary Toebben, who 

worked closely with Maria over the years, has this to say: ‘‘In her 

business as chair of ProAmerica Bank, she was in contact with numerous small businesses every day, businesses that have financial 

needs and need other kinds of advice. That gives her a really 

hands-on understanding of the small business community and the 

challenges and opportunities that they face.’’ 

So as you can see, Maria is uniquely positioned to make a very 

positive impact at the Small Business Administration, and that 

agency, I think, is one of the best things our government does. I 

deeply believe she can play a critical role in helping this country’s 

entrepreneurs and small businesses thrive and succeed. 

Finally, and on a personal note, I have known her for many 

years and I have observed her as a person who has dedicated her 

life to helping people and improving the economy of Los Angeles 

and California, and I have seen her in action. She is eager to help. 

She is constructive. She is a problem solver. 

So across California, from the public to the private sector, in economically thriving and underserved communities, Maria Contreras- 
3 

Sweet is universally respected and admired. She has my strongest 

recommendation to this Committee. And I thank you Madam 

Chair. 

Chair LANDRIEU. Thank you, Senator Feinstein, for that beautiful introduction. Let me turn it now to my ranking member, and 

then we will hear from our nominee. 

OPENING STATEMENT OF HON. JAMES E. RISCH, RANKING 

MEMBER, A U.S. SENATOR FROM IDAHO 

Senator RISCH. Well, thank you very much, and Senator Feinstein, thanks so much for coming. It is always good to see you on 

Tuesdays and Thursdays and other times too. 

And I want to thank you, Ms. Contreras-Sweet. You telephoned 

me the day that you were nominated, and I appreciated that, and 

then took the time to come see me, and I thank you for that. You 

have an absolutely stunning background and qualifications for this 

job, and I am glad to see that the president has appointed someone 

of your caliber to do this. We have had a short period of time to 

talk about what your vision is, and I am impressed to this point. 

On a personal note, we have a mutual friend, Jovita Carranza, 

who you know, and I value her judgment greatly. I have known her 

for some time, and she gives you the highest recommend, so that 

is a real plus for you. 

So with that, Madam Chairman, thank you very much for the opportunity, and we look forward to hearing from the nominee. 

Chair LANDRIEU. Thank you very much. And Senator Feinstein, 

if you have to slip out, you may. 

Senator FEINSTEIN. I do. 

Chair LANDRIEU. Okay. Go right ahead. Thank you. And Ms. 

Sweet, if you would stand, and we are going to take the oath. 

Do you solemnly swear to tell the truth, the whole truth and 

nothing but the truth, so help you God? 

Ms. CONTRERAS-SWEET. I do. 

Chair LANDRIEU. Are you willing to appear and testify before any 

duly constituted committee of Congress when requested to do so? 

Ms. CONTRERAS-SWEET. I do. I am. 

Chair LANDRIEU. Are you willing to provide such information as 

is requested by such committee? 

Ms. CONTRERAS-SWEET. I am. 

Chair LANDRIEU. Please be seated. Thank you very much, and 

please proceed with your opening statement. 

STATEMENT OF MARIA CONTRERAS-SWEET, NOMINEE TO BE 

ADMINISTRATOR OF THE SMALL BUSINESS ADMINISTRATION 

Ms. CONTRERAS-SWEET. Thank you. Thank you, Chair Landrieu, 

Ranking Member Risch, Senator Cantwell, members of the Committee. I am deeply honored to appear before you today as President Obama’s nominee for the position of Administrator of the U.S. 

Small Business Administration. Let me thank you and your staff 

for putting together this hearing so quickly and the kindness you 

and your teams have shown me in this confirmation process. 

I want to extend my sincere appreciation to Senator Feinstein for 

her warm introduction. I am grateful for the support of both my 

home state senators. I also want to express my sincere appreciation 
4 

to my husband, Ray; my children, Antonio, Francesca and Rafael; 

and my extended family that is represented here today. They are 

the bedrock and motivation for everything I do. 

President Obama has made small business a priority since the 

day he stepped into office. He elevated the role of SBA Administrator to cabinet level. He understands small businesses. The work 

of Administrator Karen Mills, Deputy Administrator Marie Johns, 

as well as the stewardship of Acting Administrator Jeanne Hulit, 

has all resulted in a stronger, more effective agency. 

SBA’s record levels of lending helped pull us out of one of the nation’s worst economic periods, and the agency has streamlined and 

simplified many processes, reduced paperwork, and become more 

customer oriented than ever before. If confirmed, I will strive to 

build on that record. 

I have, as was stated, over 25 years of management and executive experience in both the public and the private sectors. I will 

bring to this post—I will bring these experiences to the post if confirmed. My background and experience as an entrepreneur and as 

a government official and as a corporate executive give me a 

unique perspective into lessons learned that I can put to good use 

helping small business owners create new products and expand 

their businesses. 

Let me just say, I am a small business owner whose small business helps small businesses every day. ProAmerica is a Latinoowned business bank in California. It started like so many other 

small businesses do, from the ground up. With support from the 

community, my friends and my family, we remain a strong, vital 

bank in our community. We ensure that entrepreneurs can access 

financing and all their needs to contribute to the economy, create 

jobs and provide for their families. 

Earlier, when I started my first business, I experienced the same 

challenges entrepreneurs face today. I wore many hats and I 

poured my heart and soul into that business. Later, as California’s 

cabinet secretary over Business, Transportation and Housing, I 

made sure small businesses were integrated and involved in the 

state’s procurement process, and we made progress on those goals 

every year. 

I enjoy bringing people together, building bridges, finding ways 

to solve problems, and creating opportunities. I am honored that so 

many small business advocates, community organizations and 

friends from my past are here today, and I look forward to working 

with them and others on the public/private partnerships to help 

America’s entrepreneurs if I am so confirmed. 

When I moved to California from Mexico as a child, I saw my 

mother work long, hard hours to support my brothers and sisters. 

I experienced firsthand the challenges that working families face 

every day, the challenges that recent immigrants are facing today. 

My record of fighting for women and families stems from these experiences, and if confirmed, I will continue to do that work. 

We have a saying at the bank, ‘‘construyendo patrimonoes.’’ 

Translated in English, it means building family legacies. That is 

what small businesses are. They are family legacies. It is about 

family pride, supporting their community. It is what the American 

dream is all about after all. 
5 

I am a very proud American, and proud of all that America 

means to her citizens and to the world. If confirmed, I will work 

closely with you, with your colleagues in the House and the Senate, 

and President Obama for sure, to make sure that the Small Business Administration is an even more significant force in expanding 

the opportunities for all Americans, ensuring the economic strength 

of our country and the global economy. 

Once again, thank you again for this hearing. Thank you for your 

leadership, Chair Landrieu, and if confirmed, I look forward to 

working with you, with Senator Cantwell, Ranking Member Risch, 

and I am happy to take your questions. Thank you very much. 

[The prepared statement of Ms. Contreras-Sweet follows:] 
6 
7 
8 

Chair LANDRIEU. Thank you very much. As I stated, because of 

the time, I am going to submit my statement at the end. Are there 

any other members of the Committee that would like to make a 

brief one-minute opening statement, and if not, we will go right 

into questions. 

Okay. Let me begin. There are so many, but we have just a short 

time. Let me begin with a priority that we were not able to finish 

up in this last Congress that I feel very strongly about. The U.S. 

Congress enacted a Small Business Investment Act in 1958—which 

I am sure you are familiar with—because Congress identified a gap 

in the ability of small businesses throughout our country to access 

long-term credit. The economic situation has changed for the better 

quite a bit since 1958, but I think, and as you can tell from your 

position currently, there are challenges to small businesses getting 

access to capital and to credit to expand their businesses and to 

build out that family opportunity and entrepreneurship. 

I introduced with several of my colleagues the EXCEL Act, which 

was filed in both this Congress and last. It has broad bipartisan 

support. It basically would raise the family of fund limits for small 

business investment companies, SBICs, from 225 to 350. 

One of the leaders of one of our SBICs from Triangle Capital in 

North Carolina, one of our most successful—you might have heard 

of them—said, ‘‘If our legislation had passed,’’—which it did not, 

but despite broad bipartisanship support, it was held up by literally a handful of members—‘‘If the proposed legislation is passed, 

we believe over the next 12 to 24 months we would be able to directly help another 30 to 40 companies create up to 2,000 jobs.’’ 

That is just from one SBIC that has been successful. This is the leveraging partnership where private sector puts up $2. The Federal Government puts up $1. We lend out to companies that can 

grow. 

Could you comment on your experience with SBICs, and would 

you be willing to lead the fight to get this authorized as soon as 

we can? 

Ms. CONTRERAS-SWEET. Thank you for that very important question, Senator. As I have experienced in our bank in Los Angeles, 

what we find is that clients come in and they have so much that 

they can secure for collateral to underwrite a loan, to buy debt. 

Then on top of that, they put up whatever cash they have, whatever their savings, to make up a little more. 

And oftentimes, there is that gap, that mezzanine portion that 

the small businesses need, and that is why I think the SBIC has 

been the most effective in trying to provide that funding to make 

that gap, to make sure that they can actually realize their dream 

and build that business. 

So I am familiar with the product. I support the product, and to 

the extent possible, I would like to learn more about the specifics 

of your proposal. But I am aware of the gap and understand the 

role that, along with private equity, can play in layering with debt. 

So it makes a lot of sense to me. And thank you for your leadership 

in that regard, and I would look forward, if confirmed, to working 

with you on that product. 

Chair LANDRIEU. Thank you. My second question is our Committee was very active, both Republicans and Democrats, in trying 
9 

to expand by encouraging many of our community banks. There are 

about 7,000 in the country. When I took over as chair five years 

ago, only 1,300 were participating in the small business programs. 

Now I am proud to say that there are 2,400 SBA lenders—you 

being one of them—around the country. 

So what could you share with us about what some of your ideas 

might be to even expand that number to more community banks 

that could be partners with the SBA? What do you think we could 

do better, the Federal Government, to either minimize unnecessary 

regulations or paperwork that would encourage banks to really become partners with us, because they are the ones that know the 

customers. They are the ones that are in the communities. How do 

you see community banks particularly being a partner with you in 

your new role? 

Ms. CONTRERAS-SWEET. Thank you, Senator, again, for your overall leadership in this regard. Specifically, let me just share with 

you what I have been experiencing. What I see is that large and 

small financial centers have been addressing the area of small 

business loans to families and to entrepreneurs across America. 

But indeed, it is the small local community banks that really benefit from this product the most. 

And for some of us—and again, I am just sharing my personal 

experience—unless you have a specialized officer in the bank that 

really understands the covenants, the warrants, the underwriting, 

the standards that SBA promulgates, it is somewhat daunting and 

a little overwhelming, and you want to make sure that when you 

are pursuing an SBA loan and there is a guarantee element, you 

want to make sure that you are not sacrificing that, whether it is 

a 50 percent, 75 or 90 percent guarantee, depending on the product. 

And so what I have really been pleased with is that already 

SBA’s made some progress on that, the introduction of SBA One, 

for example, the way that they are clearing up the paperwork, 

streamlining, delegating authority to so many banks. For example, 

ours is a preferred lender bank, so we get the benefit of delegated 

authority. And so I already see great improvement, but to the extent that we can get the word out, there is also push and pull marketing, as I like to call it. 

There is where we can also get the public to be more informed. 

When I approach some prospective client or a client about an SBA 

product, they are not fully aware, and so we take a lot of time to 

consult them, to walk them through and explain to them this alternative. 

So to the extent I think that the SBA can even market the products more, get out—and if you will, I use this vernacular—we can 

brand the SBA a little more so that people are comfortable with it, 

understand that this is not your grandfather’s SBA, I think it will 

go a long way in encouraging local communities, local community 

banks, to do more of that work. 

And if I may just add one more thing. I think throughout our 68 

field offices, the SBA now has great reach into every community 

through their regional offices, as well as through the SBDCs, 

through the women business centers, through all the myriad of programs. So to the extent that we can continue to work with those 
10 

strategic partners throughout the country and get the word out 

about the benefits, about the upgrades, about the simplified 

streamlining that is taking place today, I think that too will go a 

long way. 

Thank you again, for the good question, Senator. 

Chair LANDRIEU. Thank you. 

Senator Risch. 

Senator RISCH. Thank you, Madam Chairman. 

Ms. Contreras-Sweet, you recall when you and I met, I told you 

about one of my favorite agencies over there in the agency, and 

that is the Office of Advocacy. And I’m assuming since that conversation you have had time to think about it and perhaps even 

have a look at what they actually do over there. 

To me, that’s one of the real important things that the agency 

does. When I meet with people, whether they are from big business, medium business, but particularly small businesses, they are 

just really miserable over the crush of regulation that the Federal 

Government is putting on them. And the Office of Advocacy is designed to go in there and get them figuratively by the collar and 

say, ‘‘Look, you cannot do this.’’ The law of unintended consequences is going to come around and bite these people and put 

them out of business. 

The Office of Advocacy really needs its independence to do that, 

not being getting a call from the White House saying, ‘‘Hey, back 

off on your advocacy for small businesses.’’ They really need to 

make life less comfortable for the bureaucracy than what it is when 

they are in their rulemaking and regulating mode. 

So have you had some time to think about that? And I would like 

to get your thoughts on the Office of Advocacy. 

Ms. CONTRERAS-SWEET. Thank you, Senator, for speaking to a 

couple of important points, and I take pleasure in having an opportunity to address you on this. 

First, let me just speak to the office and the structure. I mentioned to you also in that conversation that I had the good fortune 

of being able to create California’s Department of Managed 

Healthcare. And I went to great lengths to assure that there was 

an independent voice for the patient community, the Office of Patient Advocate. And I made sure that it reported directly to me, as 

did the director of the department. 

And so I liked the role, that it was important to me to have that 

sense of independence. What I appreciated here is that here too the 

Office of Advocacy is also an independent voice and should—we 

need to maintain the integrity of that office to make sure that it 

stands alone and of its own prowess to be able to provide an ardent 

voice for the small business community. 

The small business community represents half of America’s 

workforce, and it represents two-thirds—two out of every three jobs 

being created come from the small business community. We need 

to make sure that we’re creating a level playing field for this community. So that is number one. 

Number two, to the extent of the actual regulation to which you 

spoke, it is a primary goal to assure the small business community 

has a level playing field. We want a level playing field. It is already 

difficult to start a business. You make huge sacrifices and yet, this 
11 

is a community where we harness great innovation, where we create jobs, as I just outlined. 

And so to the extent that we can reduce regulation, streamline 

opportunities for them, I think it should be a priority. From personal experience, I have endured regulation, if you can imagine, 

having been California’s Secretary of Transportation. Just in that 

department alone I had 14 departments. But just in Caltrans, I 

was responsible for about 22,000 employees and a $10 billion budget. 

So trying to work with each dedicated fund, if I was trying to fill 

a pothole but I only had extra capital—in the Carl Moyer Program, 

for example, you could not move things over. So the discretion, the 

flexibility that the regulation prohibited me to exploit was difficult. 

And now, if anybody is going to start a business, the most complicated businesses to begin, to start from the ground up, would be 

a bank. It is highly regulated. 

So having talked to the point about how we want a level playing 

field, we want to make sure that we can have a streamlined program in place, but the other side of it is also in balance to make 

sure that the proper consumer protections are in place. 

Thank you, Mr. Senator. 

Senator RISCH. Well, thank you very much, and I know you and 

I talked about, and I know you share my concern, that these regulations that are put in effect many times can be easily absorbed by 

a large corporation that has an army of lawyers and compliance officers. But for the guy that is fixing lawn mowers with a couple of 

employees, it can put them out of business. So I appreciate your 

understanding in that regard and look forward to working with you 

on that. 

Madam Chairman, I have got to excuse myself because I have 

another meeting, but since this will be our last foray together, 

thanks so much for working with you and the many courtesies you 

have shown, and I look forward to working with the new chairman 

of this Committee. 

The bad news is we will only be a few seats apart over on the 

Energy Committee, so look forward to working with you. 

Chair LANDRIEU. We will continue our strong partnership there. 

Senator RISCH. Thank you. 

Chair LANDRIEU. Thank you, Senator. 

Senator RISCH. Appreciate it. Thank you much. 

Chair LANDRIEU. Thank you. 

[Applause.] 

Senator Cardin and then Senator Fischer, Booker and Cantwell. 

Senator CARDIN. Well, first, Madam Chair, I want to just join in 

recognizing your extraordinary leadership as the chair of this Committee. I have had the honor of serving on this Committee since I 

was elected to the United States Senate, and working with Senator 

Snowe and Senator Risch, your leadership has been extraordinary, 

and we have gotten a lot of things done. You should be very proud 

of that. 

The first and foremost was to get funding for the SBA. It was 

not easy. President Obama was a strong supporter, but we had to 

get those funds in the Congress, and through your leadership, we 

were able to get the Budget Committee to make the necessary ad-
12 

justments. So the resources are there. We made it a lot easier on 

the SBA loans, making major changes. 

The reauthorization, the SBIR program, that didn’t come easy. 

And there is not unanimity among the research community about 

the SBIR program, and you did a great job in bringing together a 

workable way that we could get that done. I particularly appreciate 

your help in getting a permanent increase on the surety bonds that 

help small construction companies and the work to be done on government procurement. We made major progress. 

I also acknowledge the work we have done in a fairer SBA, dealing with minority businesses and women-owned businesses, all 

under the watchful eye of this Committee. So you have a great 

record, and I thank you for the leadership, and it has been an 

honor to serve under your chairmanship. 

I know that Senator Cantwell will provide great leadership to 

this Committee. I look forward to working with her, because this 

Committee is very important. I asked to serve on this Committee. 

Small business is the engine of job growth in America and innovation, so therefore, we need a champion. 

So let me, if I might, raise a couple questions as to our nominee’s 

commitment on certain areas. Let me talk government procurement for one moment. Agencies that are hard pressed for dollars— 

and that is what is happening today—will sometimes try to take 

the easy way on procurement, bundle small contracts together so 

that the only entity that can really qualify for the prime contracts 

are large business. We want to see more prime contracts with 

small companies. 

Can you share with us your vision as to how you will be an advocate within the Obama Administration so that the government procurement goals are truly met not just by subs but by primes and 

how you will provide leadership to provide that opportunity for 

small businesses. 

Ms. CONTRERAS-SWEET. Thank you, Senator. Thank you very 

much for addressing an important part of what is going to be a key 

element of what we do. Clearly, we all know that the SBA is responsible for access to capital, but right behind there is the contracting component, and of course, the counseling and the disaster 

relief. So I understand that it is an underpinning of the Administration, of the Small Business Administration. 

But if I may just also speak to what you just referenced earlier, 

and that is the importance of the SBIR, the STTR, all those programs. What I see from the public, being a banker and small business person, I really admire the work of this Committee. Let me 

just say the leader, Chair Landrieu, and how thoughtful these programs are, how thoughtfully they fit together, you know, to be able 

to have research dollars, to be able to partner up with the university through the STTR program, and then to be able to roll it out 

and through counseling to be able to get the capital and to take it 

to market, to patent it and to take it to market. I intend to use 

the cabinet-level status to make sure that I am working collegially 

with the Secretary of Commerce to make sure that we are using 

that Patent Office efficiently and effectively. 
13 

Senator CARDIN. And I agree with that. I just would focus on the 

fact that there are some departments that are great on small business. There are others that are not. 

Ms. CONTRERAS-SWEET. Right. 

Senator CARDIN. And I just hoped you would be very visible with 

those agencies that are not meeting the goal and certainly not complying with the spirit, that we want prime contracts for small businesses just not subcontracts. 

I want to raise one other issue. I have limited time. We have 

talked about capital a lot. And I must tell you, I have been disappointed by the results on loans being made to small businesses. 

I think we provided a great deal more tools here in Congress. 

There was fundamental disagreement, I think, between some of us 

on the Committee and the Administration as to whether there 

should be direct loans or just guaranteed loans. The Administration 

prevailed on the prime tool being guarantees. 

There are too many banks that are still very difficult, particularly if you are a minority small business or a non-conventional. 

Some of the faith-related enterprises, small business, it is very difficult to get loans. 

What game plan did you have to make sure that we achieve this 

objective of capital being available? 

Ms. CONTRERAS-SWEET. Thank you. Again, if you will indulge me 

and allow me to answer your first question, because I am not sure 

that I satisfied you. And so let me just say that I have extensive 

experience in contracting, and I want to share with you that to the 

extent that I was working to reach goals that I established for our 

agency, what I found is that first the public was not generally 

aware of the opportunities with government. They knew that they 

could go down the street and try to get a local restaurant to buy 

some things from them, but they were not aware about how to approach government. 

And so first it was just to counsel them, to help them understand 

what the procedure was. Once I got them to be aware of it, then 

they would say, ‘‘You take too long to pay. I cannot carry the 

EBITDA. I cannot carry the cash flow.’’ 

So we put a prompt program in place, a prompt payment program. I was delighted to see that the president here put in 

QuickPay. That mirrors some of the things that we were doing 

there. At the next level, it just generally was, you just aptly pointed out, and that is that in bundling, you know, you go the countercyclical way. So I did what would probably be counterintuitive, and 

that is to debundle, to make sure that to the extent possible we can 

kind of break these down to make sure that smaller and smaller 

and smaller businesses could capture some of those opportunities. 

And to that extent, also we were able to create more local opportunities, and I think those are important facets. 

So I just wanted to underscore the importance of what you said 

and share with you that if confirmed, I would be delighted to engage in this project. It is very important to me, and I have personal 

experience, some strategies that we can deploy to make that even 

more effective. So thank you for that. 

To the extent that you just mentioned, again, about access to 

capital, it is the underpinning of everything. So indeed, we have to 
14 

make sure that we market well, that we use our counseling centers 

well, and that I, as you aptly pointed out, that I work collegially 

with my colleagues. The ones with whom I have met already have 

been very receptive, and that 23 percent goal is something on my 

mind. And if you give me an opportunity and I have your support 

and I am confirmed, I would be delighted to work. 

I am counting the days, Mr. Senator, 365 days in a year. And so 

I am counting the days, and I can assure you that even though I 

am coming in a little late with weekends and evenings, we can 

make up some time and to actually capture some of those goals. 

Thank you. 

Senator CARDIN. I like your enthusiasm. 

Ms. CONTRERAS-SWEET. Thank you, Senator. 

Chair LANDRIEU. Wonderful. Senator Fischer. 

Senator FISCHER. Thank you, Madam Chair. And I too would like 

to thank you for your leadership and your service on this Committee. I also asked to be on this Committee, so it has been such 

a pleasure to serve with you. Thank you. I wish you well in your 

new chairmanship on Energy. 

Ms. Contreras-Sweet, earlier this year, the SBA implemented a 

policy that would increase costs for some 7(a) loans. The rule will 

require that lenders for special-purpose properties, such as hotels 

or convenience stores, obtain two appraisals. One is for the real estate portion and the other is for the operations. 

The cost of obtaining those two appraisals, I know you understand that that is going to be passed on to the consumer. I think 

it is also going to slow down the sale of the business. It is going 

to slow down the obtaining of the loan that these businesses are 

trying to get. 

As you know, a number of real estate agents have been trained 

where they can do both appraisals, but that is not allowed under 

this rule. Would you be willing to reconsider the rule if you are 

confirmed as the administrator? 

Ms. CONTRERAS-SWEET. Thank you, Senator, for that important 

question, again. It is tough out in the community, I can share with 

you, and so I am delighted that you raised that issue, because we 

usually ask for that appraisal cost upfront, and so they have to put 

that out and then you process them, and then hopefully succeed 

through the process. 

I can share with you that it is something of which I am quite 

familiar, and I commit to you to engage in that from that experience point of view, to learn more about, again, the rubrics, the bowels of the organization, what is possible, and so I would not want 

to commit prematurely. But if confirmed, I would be delighted to 

take a delve, to dive in and work with you on that program. I have 

an interest in wanting to pursue it some more. 

Thank you for the question. 

Senator FISCHER. Thank you. I appreciate your commitment on 

that. I can tell you in rural areas of any state there is a limited 

number of professionals who are able to do those appraisals, and 

small businesses struggle in rural areas. So any time you have to 

find two appraisers, that adds additional costs to a business that 

is trying to expand, that is trying to grow, that is trying to serve 
15 

the customers they have. So I do look forward to working with you 

on that. 

Also, what is your expectation as to when you believe the Administration might be nominating someone for the deputy position that 

has been vacant, I believe, since June? And hopefully the Administration is going to move forward on that. Have you heard anything 

about that? 

Ms. CONTRERAS-SWEET. Thank you for asking me a very important question, as you can imagine. I can tell you that I think the 

Administration was really focused on filling the top job so that if 

confirmed that person would be able to engage in the process and 

be a part of the selection committee. 

So I am looking forward to your support. And again, I would be 

delighted to engage in that process to make sure that to the extent 

that there is a, if you want to call it, a complimentary role, I think 

it is important in making sure that we are working collegially, collaboratively to assure that America’s small businesses have a loud 

voice and an active engagement in the community of job creation. 

Thank you. 

Senator FISCHER. I would assume that would just be one of the 

number of items on your agenda as you move forward if you are 

confirmed as the administrator. Can you tell me what you see as 

some of your priorities? If you are confirmed, how do you want to 

hit the ground? 

Ms. CONTRERAS-SWEET. Yes. As an administrator, whether you 

are in public or private sector, I think you have to first explore the 

fundamentals. You have to assure that the controls are in place. 

You have to, what I call, you know, deploy an ERM, an Enterprise 

Risk Management, system. You have to make sure that all the controls are in place. 

So I do not like to launch off into anything until I make sure that 

the fundamentals of business, of government, are all in place. So 

I would first do that. I would just make sure that I am briefed 

about where the vulnerabilities are. How do we tighten those 

things down? 

And then after that, again, just to understand the full complement of programs and to understand if there are any gaps there. 

From my vantage point, from my prism at this point, I do not see 

that there is that. 

And then third, I still think that it is very important to get the 

word out about the products, again, making sure that we understand the limitations of our role. The SBA is not here to supplant 

the private sector role. The private sector, the credit markets, must 

be first, but where they freeze, or where there is a gap, that is 

where I think SBA has an appropriate role. 

So we must make sure that we understand the proper role of 

government, the proper role of the SBA. But where we belong and 

where we must be, we must be there effectively, efficiently. Particularly in an instance of disaster, for example, you want to make 

sure that the right layers are in place at the right time to be responsive to whatever that family may be enduring. 

I had a personal example, a personal instance where my motherin-law was victim to the Northridge earthquake, and I saw what 

SBA’s role was. I saw what FEMA did, and the way in which it 
16 

was unveiled. And I think it is important for us to be efficient and 

to be effective, particularly in those times. 

I will just make one more comment about that. I was on duty 

during 9/11 and as Secretary of Transportation, some folks do not 

know, I also had responsibility for the California Highway Patrol, 

and the Highway Patrol protects our state buildings, our courts, 

some of our state prisons, and so it was important to make sure 

that those safety mechanisms were in place, and I am very familiar 

with that. 

I can tell you that we did not know what was taking place, as 

the world did not know exactly what was taking place. But we 

knew that those planes were bound for California, and I had to 

make sure that the integrity was in place: of our bridges, of our 

highways, and our entire transportation network. Readiness 

around disaster would be fundamental, to answer your question. 

That would be one of the areas that I would want to make sure 

that we have buttoned down everything that needs to be down, because that is when the people need us most. 

Thank you for that question. 

Senator FISCHER. And thank you for your response. I appreciate 

it. 

Chair LANDRIEU. Senator Booker. 

Senator BOOKER. I just want to add my chorus of congratulations 

and gratitude to you. You have been an extraordinary leader for 

me on a very personal level, coming new to the Senate. You helped 

me with my orientation. This Committee I was thrilled to be on, 

but even more thrilled by the leadership and guidance you have 

given me. So thanks for being a north star in my early days, and 

I just hope the people of Louisiana, every single one of them, knows 

how lucky they are to have such an extraordinary leader, a leader 

amongst leaders here in the United States Senate. So thank you. 

Chair LANDRIEU. Now, if my children could hear this, we would 

be making progress. Thank you. Thank you, Senator Booker. 

Senator BOOKER. But I would be remiss. I have had the pleasure 

of knowing Senator Cantwell long before I was a Senator, and it 

is extraordinary now to have her leadership here. She is somebody 

that comes with private sector experience, with experience in the 

technology sector, which is really important to me in an area where 

small business growth is critical, and I am just really looking forward to having you now as the chairperson of this Committee, and 

congratulate you as well. 

You are extraordinary, and I am so thrilled to have the opportunity to work with you. And this country is lucky that someone 

with your experience, background, expertise and skill would want 

to volunteer to serve in government yet again. You are making a 

personal sacrifice doing so. You are making a family sacrifice doing 

so. And, you know, I was taught as a young person that you should 

never judge someone by their personal accomplishments but by 

their willingness to do for others. And under that measure, you are 

truly a great American, and I am grateful to have this moment to 

talk with you. 

You and I both know I have been in the grassroots trenches like 

you have, trying to figure out how, especially in underserved populations and especially in urban areas, how do you get businesses 
17 

going. And my team and I understood that the three biggest things, 

when we pulled together folks, is technical expertise—because 

many people have vision—but everything from learning how to 

make payroll, and all the things that help you to really make businesses run, function; access to capital, which is something that has 

to be a major part of your mission, and I know it is, and I have 

heard that already expressed; understanding that government is 

one of the biggest opportunities for small businesses. We found 

that many of them did not know how to—everything from bonding 

requirements to even getting in the game to be considered. 

So I am grateful for all those things, and I am actually really 

confident that you are the right leader to tackle those three areas. 

I look forward, as we have talked a little bit before this meeting, 

about the creative ways now to get capital into the communities. 

I am looking forward to discussing with you some of our ideas 

about using online platforms—which we think is going to really 

help New Jersey—is a new movement, a democratizing force in 

terms of access to capital for the country. 

A few quick things that I just want to hit you with in the remaining moments that I have, and I will just say them both at 

once and allow you to speak to them. There is a lot of dissatisfaction in New Jersey about the SBA’s speed at which they dealt in 

post-Sandy recovery. And I am hoping that you pay particular attention to this, because these 100-year storms seem to be coming, 

at least to my area of the country, with great regularity, becoming 

almost a yearly or every other year engagement. 

And getting small businesses up and running again is so important and is so critical. And I hope you understand that part of your 

duty—I pray not, but should be—is going to be responding to crisis 

and businesses in crisis, and the SBA has not lived up to the expectations people have for it. 

And then the second thing, there is so much attention on cyber 

security for the big businesses, Target and the like, but I have increasing concerns, especially as many small businesses do deal 

with personal information, do deal with valuable exchanges that 

add up to large amounts of money, is what we are doing from a 

small business perspective to prepare our businesses in America to 

do the things they should be doing to protect themselves from cyber 

attack? 

Thank you. 

Ms. CONTRERAS-SWEET. May I first say that you are an American 

hero in every sense, and so as we say, I would like to just sort of 

shout it back at you. 

Senator BOOKER. I do not have kids, but can we record that for 

the record? Yes. Just so I can pull that out. 

Ms. CONTRERAS-SWEET. So your reputation precedes you, so 

thank you for the generosity of those compliments. 

Let me just make a couple of comments in response. First and 

foremost, when we had the Los Angeles riots, a highly underserved 

community, I was delighted that here I was sitting at, if I may 

plug, 7–Up at the time. I was delighted that I was called by the 

Mayor and Peter Ueberroth, the chairman of Rebuild Los Angeles, 

to come and serve at that board to make sure that we could re-
18 

spond to those riots and that we could restore those communities 

immediately. 

And I learned something in that process, Mr. Senator, and that 

is that oftentimes we think we have the answer, and people said, 

‘‘You have to put in this and’’—and when I went in and I actually 

went into the community, walked those streets, talked to those 

families, and what they said is, ‘‘Yes, we need jobs and we need a 

bank and we need’’—‘‘for sure, but please do not forget a laundromat. I can’t even interview until I get my clothes washed.’’ 

The fundamentals of understanding, to connect with the folks, 

ask them what they need. It is important that we engage in the 

community. So first, I must say it is important to understand what 

the needs are before we begin to respond. 

Secondly, with respect to your cyberspace question, I had the 

good or—I am not sure if I want to say good fortune, but I was in 

the position of cabinet secretary over our business regulation, and 

as part of that, I had to help the state ready for Y2K. Now, I know 

in retrospect, you know, we have perfect vision, right? Hindsight is 

20/20. But in advance of that, we had no idea what was in store 

for the world, let alone our own state. 

And so I was responsible for one-third of the California data systems, the tiered data center. And so I learned a little bit about how 

to manage technology, as well as in the way we executed our driver’s licenses. You have to stay ahead of, you know, those who will 

counterfeit your products. And so we were continually upgrading 

and changing our driver’s licenses. 

So in different ways, whether it was through the banking—you 

may know that I oversaw the Department of Financial Institutions 

for the state, and so I regulated in-state banking. And there too, 

we had to make sure that there was redundancy, that there was 

a proper separation of duties to make sure that somebody was 

watching what the other person was doing. So I have a little insight into this community, and I would be prepared to, if confirmed, to bring some of those ideas that I was able to glean from 

those experiences to this process to make sure that we are being 

responsive in making sure that we are protecting Americans, particularly the small business community that desperately needs a 

level playing field. 

But just one more thing about that, and that is that we have to 

make sure that we avoid fraud, waste, and abuse as well. We have 

to make sure that we respect our public employees. Our public employees are largely hard-working people across America; that is 

what I see. But you have to also convey a message of zero tolerance 

if anybody is going to try to game the system, try to do something 

that is inappropriate. So I would bring my past experience to those 

areas that you just outlined. 

Thank you for the question, Senator. 

Chair LANDRIEU. Thank you. We have two more senators, Senator Cantwell and Senator Levin, and then I am going to finish up 

with a few questions. And I think we will close out in about 10 to 

15 minutes, because votes will be called at 11:30. 

Senator Cantwell. 

Senator CANTWELL. Well, thank you, Madam Chair, and I too 

want to thank you for your tremendous leadership here at the 
19 

Small Business Committee. Not only do I consider you a personal 

friend, but a giant advocate for small business. And when our country had one of our biggest economic downturns, there was a lot of 

discussion about how to help the big banks. In fact, in my opinion, 

we kind of gave them access to the keys to the Treasury, something 

I did not quite appreciate how that was done. 

But you were steadfast in the Small Business Jobs Act of 2010 

in advocating for small businesses and trying to come up with ways 

to help protect them as they were getting hammered by new regulations and this economic downturn, when performing lines of credit were pulled right out from under people. 

So I just could not have been more proud of your leadership in 

this Committee. People did not realize what an advocate Mary 

Landrieu was when she took over this Committee, and I actually 

feel like she put the small business activities in that battle of 2010. 

You know, we had to work with Senator Voinovich and Senator 

Lemieux to finally get a bill that tried to protect small business, 

but it was the cry in our country at that time that small businesses 

were just getting hammered on this downturn and really, in some 

ways almost being a scapegoat for what had happened. I do not 

think a lot of these small banks, or even the businesses that they 

were serving, were involved in derivative activity, but yet they 

were the ones who took it right in the chin. 

So I am just very proud of your leadership on that and very 

proud of your leadership on this Committee. And I know you are 

not going far. In fact, we both serve on the Energy Committee and 

this Committee will certainly be looking for ways to work together. 

So thank you for that. 

Ms. Contreras-Sweet, thank you so much for your willingness to 

serve. You have shown today you have a command of these policy 

issues that we are going to be looking forward to your activities 

and I personally like that you are a good marketer. Anybody that 

knows push and pull technology marketing is okay by me, because 

to me a lot of the Small Business Administration is both push and 

pull. I mean, part of it is getting people to understand what programs we have and what they can take advantage of, and obviously, getting them to work with us on those that need to be improved. 

One of the things about the Small Business Jobs Act of 2010 was 

the 504 refinancing program, and that refinancing expired in September of 2012, so I wanted to have your thoughts on whether you 

support reauthorizing that section of the bill. 

Ms. CONTRERAS-SWEET. Thank you for speaking to 504. It is an 

important product, and to the extent that you were able to offer up 

the refi program, let me just tell you from my personal experience 

it was very well received. At the onset, at the very beginning, I 

must say that we were trying to work our way through and tried 

to understand it a little bit. 

But once we got it down is about when it sunset, and so we were 

a little disappointed about that. As I understand it now, the president is supportive. I, from the community, understand the importance of the product and if I am confirmed, I would be delighted 

to work with you and explore ways in which we can continue to fill 

that important gap. 
20 

Senator CANTWELL. So you would support reauthorization of 

that? 

Ms. CONTRERAS-SWEET. If given the opportunity, I support the 

product. I think it is an important tool for Americans today. 

Senator CANTWELL. Thank you. Another program, and again, I 

appreciate your perspective on small businesses and small business 

exports. 

My colleague from New Jersey mentioned technology and the 

State Trade and Export Promotion program, the STEP program. 

Are you familiar with that program within—— 

Ms. CONTRERAS-SWEET. I am. The partnership with the states? 

Senator CANTWELL. Yes. And I am a huge believer in where we 

are right now in the context of an information age and a lot of 

products and services, but you have to add capital. And the U.S. 

has a lot of these, and so the STEP program in my state has been 

beneficial from many technology aspects. It helped a program in 

my state grow to nearly a hundred new people on some swipe technology that right at the critical moment they got access to the 

Asian market, and, just recently, some aviation companies have 

used the program. Silicon Forest Electronics, a company in Southwest Washington, got access to some aviation sales because of the 

STEP program. A small company, Slingshot Sports in Stevenson, 

Washington, a very small company, got access to help grow their 

business. 

So for me, I want to get your thoughts on the STEP program and 

whether you support continuing that or growing that effort. Because we have huge opportunities with the Asian market and the 

Pacific Northwest, and we certainly want to see us use these promotions to help meet the agenda that the administration has on 

doubling the number of exports out of the United States, and certainly, small businesses can play a very big role in that. 

Ms. CONTRERAS-SWEET. If you will indulge me, Senator. First, I 

just wanted to thank the State of Washington. When California 

was going through its energy crisis, the State of Washington really 

came forward and helped us through, and I will never forget that. 

So thank you to all of the good people of the State of Washington 

for all that they did for Californians in that very difficult period. 

Next, let me just speak to STEP. What I like about STEP is that 

it has three important components, in my view, again, just from 

personal experience. I really appreciate that somebody can come in 

and get some counseling through a university, the partnerships 

with the universities, that it is state-sponsored so that there is a 

relationship and a partnership with the state government. 

In many instances, this is where many small businesses are a little more comfortable. So I appreciate that. I appreciate that it provides for introductions, in many instances internationally. And so 

there are so many good components around STEP, and in a 

globalized economy, we have to find ways to make sure that small 

businesses too can compete in that. 

There is currently, in my view, with technology and all the other 

tools that are available to us, the lowest barrier to entry for a small 

business opportunity, and so to the extent that we can have programs like STEP, helping them, partner with them, and providing 
21 

them the right tools, I think that we can strengthen our ability to 

compete globally. 

Again, this is where the innovations are taking place, and so why 

not let the small businesses also have a piece of that pie, a bite of 

that apple, to make sure that they are also partaking of the international globalized opportunities that are presenting themselves in 

an increasing way every year. So I believe in the program. I think 

it is an important program, and the tools in it support small business expansion in the international economies. 

Senator CANTWELL. Great. Thank you. Thank you, Madam Chair. 

Chair LANDRIEU. Thank you, Senator Cantwell. Senator Levin. 

Senator LEVIN. Thank you so much, Chairman Landrieu. And 

welcome to you, Ms. Contreras-Sweet. Congratulations to you. Your 

wonderful experience and talent is going to be put to great use 

with the SBA program and it is matched only by the enthusiasm 

which you show for the job at hand. We are delighted with your 

appointment and look forward to your confirmation. 

I want to thank our chairman. Mary Landrieu has been an absolutely superb chairman of the Small Business Committee. There 

are not too many people who are able to get legislation passed 

these days. I will not go into any more detail on that as to why. 

But she is one, because she knows how to work across the aisle. 

Her energy is legendary. She will bring that energy to the Energy 

Committee now. It will be called the Energy Energy Committee 

after Mary Landrieu is there. 

And we are also delighted with our new chair. We have known 

Senator Cantwell a long time, and her background is going to be 

useful from before she was a senator. The respect in which she is 

held by all members of the Senate will be a major gift to this Committee. So you will be working with a wonderful new chairman as 

we say goodbye but not farewell to our current chairman. 

You have a couple more hours here, I believe. Have you been formally—— 

Senator CANTWELL. Not until Thursday. 

Senator LEVIN. Not until Thursday, if we are here. 

There are a number of small business programs I have been involved with. I have been on this Committee actually since I got to 

the Senate and one of the programs I have been involved with— 

and this is a recent addition to the panoply of programs in the 

Small Business Administration—is the Intermediary Lending Pilot 

Program. It is currently a pilot program where we have non-profits 

that are, on a competitive basis, given awards to re-loan to small 

businesses, filling in a gap between the smallest program, the 

Microloan Program, and the 7(a) program. And so this intermediary program fills that gap. 

It is a pilot program which has been in place only for three years 

now and it is up for reauthorization. And I am wondering if you 

are familiar with the program. The SBA itself has said it has had 

great success with it. That is our experience in Michigan. But I am 

wondering if you are familiar with this program and whether or 

not you would support its permanent reauthorization. 

Ms. CONTRERAS-SWEET. Thank you, Senator. And in preparing 

for this, I heard from my good friend George Mitchell, Senator 

George Mitchell, who said to say hello. 
22 

Senator LEVIN. Well, thank you. 

Ms. CONTRERAS-SWEET. And so I do extend his regards here. 

Senator LEVIN. Thank you. 

Ms. CONTRERAS-SWEET. But thank you for asking a really important question and oftentimes an overlooked part of our economy, 

and that is that so many of us think about loans and banks, but 

in the microlending program—and I was delighted to see that that 

was an offering in the SBA, that they do have a microlending program. And so thank you for your leadership and your ardent support for that sector. 

Clearly, it is always difficult to start your first loan, and until you build credit, it is difficult to get a 200,000, a 3, 4, $500,000 

loan. So to the extent that we can issue some of those microloans, 

$50,000 loans to get people started, it spurs innovation. So I am 

familiar with the program. I think it is an important tool in the 

tool chest and I am very much in support of microlending programs. 

And through our intermediaries now as a banker, to the CDFIs, 

through programs like CAMEO in San Francisco—a program I am 

familiar with—different disseminators of microloan programs have 

been really good stewards of making sure that particularly underserved communities—and as I said, folks that are reentering the 

workforce—that they are providing for that first line of credit that 

will build eventually to the next and the next. 

Senator LEVIN. Okay. Well, the next step then is this intermediary program. It is the next step up from the microloan program. It is a pilot program, and I hope when you get to the SBA, 

not if but when you get to the SBA, that you will check this out, 

because we need to reauthorize the next step-up program from the 

microloans, which are these more intermediate-sized loans. And it 

is an important program, so if you can get back to us as to what 

you find when you get there about this pilot program and whether 

you are going to be able to strongly support it. 

Finally, we have been very much involved in the SBIR program. 

As chairman of the Armed Services Committee, the Defense Department is the largest contributor to the SBIR program. As a matter of fact, under the leadership of our current chairman for another day, we were able to get the SBIR program reauthorized in 

the Defense Authorization Bill. 

Chair LANDRIEU. Thank you. 

Senator LEVIN. We cannot use the Defense Authorization bills for 

everything, but we were in this case able to actually use this bill 

when we were having trouble getting bills passed because of the 

creativity of Chairman Landrieu coming to me, basically saying, 

‘‘Can we get this done in the DoD authorization bill?’’ The argument was, ‘‘Yes, the Pentagon is the biggest contributor of funds 

to the SBIR program.’’ That gave us the quote, ‘‘hook’’—not probably politically correct word—but the hook to include this in that 

bill. 

So it is an extremely successful program. We hope that it will 

have your full support. 

Ms. CONTRERAS-SWEET. First, may I thank you on behalf of 

America’s small businesses, if I may be so presumptive, because it 

allows the small business community to again have a more level 
23 

playing field. The large corporations have extensive research dollars and R&D centers, and so to the extent that we can provide innovation and research resources for the small business community, 

I think it is an important tool again, once again. So thank you for 

your leadership. 

As I understand, it is a very well received program out in the 

community, and I think it should be supported. And I would be delighted to, if confirmed, if from your lips to God’s ears, my prayers 

are answered and I am confirmed, I would be delighted to engage 

more deeply in that program and work with you closely on it. But 

thank you for your leadership. It is an important tool. 

Senator LEVIN. Thank you. And again, congratulations and 

thanks to our current chair and our future chair. 

Chair LANDRIEU. Thank you so much. If the members would just 

give me a five-minute personal privilege to close out this meeting 

and give my remarks. 

OPENING STATEMENT OF CHAIR LANDRIEU 

Chair LANDRIEU. First, to begin, you will have my strong and unequivocal support for your nomination. 

Secondly, I have been on this Committee now almost 10 years. 

I think you may be the most extraordinary nominee that we have 

ever had. Your command of the details of the programs, your own 

personal experience that you bring, is going to be just a tremendous asset. I could not be happier to hand over the leadership to 

two extraordinary entrepreneurs in your own rights maybe for the 

first time in the history of this Committee, two women who have 

built businesses, run businesses, marketed businesses, and understand the challenges. So I think this Committee is going to be well 

served. 

First, Senator Levin, you have been such a mentor to me in my 

time here. To have the chair of the Armed Services Committee 

hardly miss a Small Business meeting is just a testimony to his 

heartfelt belief that he may be running and authorizing some of 

the largest businesses in the world, which he does, but has never 

lost his passion for the people of Michigan, the people of Detroit, 

all the places in Michigan, where he knows that small business is 

the heart and soul of his state. 

Senator Booker, your experience as mayor and coming as a new 

member of this Committee, you are just going to be extraordinary 

on it. I want to particularly thank Senator Cantwell. People do not 

realize this, but she was my rock behind the scenes in so many 

places where I could not figure out where to go and what to do, and 

her technical knowledge is so spectacular. And she helped me to 

put this Jobs Act together when we really couldn’t find a lot of support to do it. And the two of us just kind of made up our mind. 

And I want to thank Senator Merkley, Senator Boxer, Senator 

Levin, Senator Schumer, Senator Durbin, Begich and Cardin, who 

were the original co-sponsors of it, and the two Republican members that stepped up against great pressure, Senator Voinovich and 

Senator LeMieux, that helped us to pass that. 

In closing, in three minutes, I just want to leave you and the 

Committee with three or four big issues. First, your command of 

the need for small business in a disaster, I really want to just cry, 
24 

but I am not going to let myself. Because I know what happened 

in Katrina and the Gulf Coast. You know what happened in the 

earthquake. You know how desperate small businesses are. And 

they have nowhere to go, nowhere, because no one wants to lend 

them any money. It does not matter how long they have been in 

business. It does not matter how profitable they have been. People 

just want to shut them out and say, ‘‘Come back when the situation 

is better.’’ 

The problem is the situation cannot get better, Senators, unless 

the small businesses are helping to make it better, like the gas stations, the laundromats, the restaurants that cook food for the first 

responders so they actually have a place to eat. This woman understands this, and we have done some good work on that, but God 

bless you for taking it to the next level. 

Secondly, I want to talk about—30-seconds—rural businesses. 

President Obama made a great effort to try to bring high-speed 

internet to rural communities. Technology has changed. People in 

rural areas need help. They are smart, they are hardworking, and 

they do have community banks in rural areas that know them. But 

they have to have high-speed internet. Please continue to focus on 

that. 

On the entrepreneurship underemployment, the president spoke 

about this in his State of the Union. We have millions of Americans—you know them well. You can see their faces—that have either flunked out, stepped out or been kicked out of the mainstream. They are not going to be able to finish high school or college. They are of an age but if given a chance, they might be able 

to start their own business, employ themselves, their family, their 

community. I do not think we are doing enough to reach them. 

The president has called us to come up with special initiatives. 

I really hope the Small Business Administration will be first to the 

line to say, ‘‘This is what we can do.’’ 

And finally, the STEP program. Maria Cantwell is correct. Carl 

Levin was particularly focused on helping us. 1 percent of small 

businesses in this country export, 1 percent. In the old days, their 

markets were their neighborhood. These days, their markets are 

the world, but they cannot reach the world because they are so little. They are profitable. They are powerful, but they are small. 

They need our help to either help them cooperatively get together 

or give them some help to get their products to the world, and I 

think we can do a better job. 

I personally saved the—how much money in the STEP program—$8 million, which was going to be zeroed out. We need a lot 

more than $8 million. That is all we have to help these 28 million 

small businesses reach the world. There are billions of dollars out 

there to help every big business. You know, they have embassies 

that will show up for conferences to help one big business and all 

we have is $8 million in our budget, and that would have been zeroed out had I not tracked it and kept it in the budget. 

So finally, I just want to say the 504 reauthorization, the STEP 

program. And Senator Cantwell will bring an outreach to Native 

Americans, who are also left out, forgotten. She is a fabulous advocate. And again, there is some tremendous entrepreneurship opportunities. 
25 

So it has been a joy, pleasure for me to serve as chair. I am really looking forward to giving this gavel to you on Thursday. I cannot 

give it until then. If we are not snowed out, we will make that 

change on Thursday. God bless you all. Thank you, and thank the 

staff. Would all of my staff please stand, and the Republican staff 

too. 

[Applause.] 

Chair LANDRIEU. Thank you all. Jane Campbell, Don Cravins, 

thank you all for an extraordinary job well done. I will submit all 

their names to the record, and the meeting is adjourned. 

[Whereupon, at 11:47 a.m., the Committee was adjourned.] 

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