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S. HRG. 111–1119 

CONFIRMATION OF MARIE ANNETTE COLLINS 

JOHNS TO BE THE DEPUTY ADMINISTRATOR 

OF THE SMALL BUSINESS ADMINISTRATION 

HEARING 

BEFORE THE

COMMITTEE ON SMALL BUSINESS AND 

ENTREPRENEURSHIP 

UNITED STATES SENATE 

ONE HUNDRED ELEVENTH CONGRESS 

SECOND SESSION 

MAY 19, 2010 

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 ELEVENTH CONGRESS 

MARY L. LANDRIEU, Louisiana, Chair 

OLYMPIA J. SNOWE, Maine, Ranking Member 

JOHN F. KERRY, Massachusetts 

CARL LEVIN, Michigan 

TOM HARKIN, Iowa 

JOSEPH I. LIEBERMAN, Connecticut 

MARIA CANTWELL, Washington 

EVAN BAYH, Indiana 

MARK L. PRYOR, Arkansas 

BENJAMIN L. CARDIN, Maryland 

JEANNE SHAHEEN, New Hampshire 

KAY HAGAN, North Carolina 

CHRISTOPHER S. BOND, Missouri 

DAVID VITTER, Louisiana 

JOHN THUNE, South Dakota 

MICHAEL B. ENZI, Wyoming 

JOHNNY ISAKSON, Georgia 

ROGER WICKER, Mississippi 

JAMES E. RISCH, Idaho 

DONALD R. CRAVINS, JR., Democratic Staff Director 

WALLACE K. HSUEH, 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 

Snowe, Hon. Olympia J., Ranking Member, and a U.S. Senator from Maine .... 2 

Shaheen, Hon. Jeanne, a U.S. Senator from New Hampshire ............................ 4 

Carson, Hon. Andre ́, a U.S. Representative from the State of Indiana .............. 4 

WITNESS

Collins Johns, Marie Annette, Nominee for Deputy Administrator of the 

Small Business Administration .......................................................................... 5 

ALPHABETICAL LISTING AND APPENDIX MATERIAL SUBMITTED

Association of Small Business Development Centers 

Letter ................................................................................................................. 31 

Carson, Hon. Andre ́

Testimony .......................................................................................................... 4 

Collins Johns, Marie Annette 

Testimony .......................................................................................................... 5 

Prepared statement .......................................................................................... 9 

Responses to Posthearing Questions from Senator Olympia J. Snowe ........ 20 

Landrieu, Hon. Mary L. 

Testimony .......................................................................................................... 1 

Shaheen, Hon. Jeanne 

Testimony .......................................................................................................... 4 

Snowe, Hon. Olympia J. 

Testimony .......................................................................................................... 2 

Strauss, Paul 

Prepared statement .......................................................................................... 27 

(1) 

CONFIRMATION OF MARIE ANNETTE COLLINS 

JOHNS TO BE THE DEPUTY ADMINISTRATOR OF THE SMALL BUSINESS ADMINISTRATION 

WEDNESDAY, MAY 19, 2010 

UNITED STATES SENATE, 

COMMITTEE ON SMALL BUSINESS

AND ENTREPRENEURSHIP, 

Washington, DC. 

The Committee met, pursuant to notice, at 10:13 a.m., in Room 

428A, Russell Senate Office Building, Hon. Mary L. Landrieu 

(chair of the committee) presiding. 

Present: Senators Landrieu, Cardin, Shaheen, and Snowe. 

OPENING STATEMENT OF HON. MARY L. LANDRIEU, CHAIR, 

AND A U.S. SENATOR FROM LOUISIANA 

Chair LANDRIEU. Good morning. Let me call the Small Business 

Committee to order for the purpose of a confirmation hearing for 

Marie Johns, Deputy Administrator of the Small Business Administration. 

Let me apologize for being a few minutes late. Unfortunately, I 

had an Energy hearing earlier this morning and had committed to 

the Governor of Puerto Rico to stay for his testimony which just 

ended a few minutes ago, and to the Commissioner on an important issue regarding the status. 

I would like to begin this morning by welcoming our very, very 

special guest. I am going to give a very brief opening statement, 

then turn this over to my Ranking Member, ask Senator Shaheen, 

and thank both of them for their patience if they have anything 

briefly to submit to the record. 

Then, Mrs. Johns, we are interested in hearing from you, and we 

are very honored to have a member of the House with us, Representative Carson, who will do a more official introduction. Let me 

say that I am happy we can move this outstanding nominee along. 

I understand that you have family and friends here, and at the 

time that you are able to speak, please feel free to introduce them 

to us. 

Our Committee received a statement of support from Senator 

Paul Strauss, the shadow Senator from the District of Columbia, 

who I understand is a friend, and I want to submit that for the 

record. 

2 

I have also had a wonderful and delightful opportunity, Mrs. 

Johns, to meet with you to discuss your nomination as well as your 

enthusiasm and extensive background for this position. 

The Deputy Administrator is a critical position at the SBA, and 

I am very encouraged that it will soon be filled. Usually, the Deputy is the Chief Operating Officer of the Agency, but I understand 

that Administrator Mills would like you to really be a second pair 

of hands, eyes and thought as we make more robust the Small 

Business Administration, and build stronger partnerships with 

banks and lenders and others, as we confront the challenge of this 

recovery. 

It is clear from your background that you are extremely well positioned. You have developed extraordinary leadership skills 

through your career, and having retired recently from Verizon you 

have contributed in many ways to the community, serving in nonprofit organizations including the Washington D.C. Technology 

Council, and the Greater Washington Board of Trade. You have 

also been involved in one of my favorites, and I think I can speak 

for my Ranking Member and co-Senator, the Girl Scouts of America. 

We are very pleased to have you before our Committee. I am 

going to let this Committee know as soon as this hearing is concluded I am going to do everything I can to expedite your process 

through the floor of the Senate. 

Let me now turn this over to Administrator—I was promoting 

the Senator—Senator Snowe. 

[Laughter.] 

Senator SNOWE. See how quickly that all happened. 

Chair LANDRIEU. You did not realize it, did you? The fastest 

nomination in the history of the Senate. 

OPENING STATEMENT OF HON. OLYMPIA J. SNOWE, RANKING 

MEMBER, AND A U.S. SENATOR FROM MAINE 

Senator SNOWE. We do things quickly here. 

Thank you, Chair Landrieu and thank you all for being here 

today to consider Mrs. Marie Collins Johns, the President’s nominee, to be Deputy Administrator of the Small Business Administration. 

I want to welcome you to the Committee, Mrs. Johns, and welcome your wonderful family, who I know that you will be introducing shortly. 

I would also like to acknowledge the presence of Congressman 

Andre ́ Carson. Thank you for being here today and taking time out 

of your own busy schedule. I understand you represent Mrs. Johns’ 

home-town of Indianapolis, and we appreciate your speaking and 

testifying on her behalf. 

Mrs. Johns, it certainly appears as though you have filled this 

room with staunch support, and that is something we all can appreciate as United States Senators. 

[Laughter.] 

With your nomination last December, I was delighted to see another accomplished woman chosen to lead the SBA alongside Administrator Karen Mills. You may not be aware, but Chair 

Landrieu and I happen to constitute the first two women to lead 

3 

a U.S. Senate Committee in the history of the United States Senate. So we are making up for lost time today. 

[Laughter and applause.] 

I know that in assuming the role of Deputy Administrator you 

and Administrator Mills will be a dynamic team at the SBA in support of our nation’s entrepreneurs. 

The role of the Deputy Administrator at SBA is unique. Ultimately, it is to serve as the Acting Administrator in the event of 

an absence or vacancy in the Office of the Administrator. But as 

we have seen in the past, as the SBA’s second in command, you 

can also make your own individual contributions in the policy areas 

that interest you. 

And should you be confirmed, Mrs. Johns, and I have no doubt 

that you will, I challenge you, with your vast array of skills and 

expertise, to find new ways every day to empower small business 

because they are the true job generators and innovators of the 

American economy. Your professional experience and your commitment to excellence truly epitomize the American dream. Your story 

proves that hard work and commitment are the keys to professional achievement, and that is certainly true for our nation’s small 

business owners as well. 

This is a pivotal time for SBA. There is an urgent imperative for 

job creation in this country, because we are in the midst of what 

can only be described as a jobless economic recovery. Thus, it is the 

role and responsibility of the SBA to foster an entrepreneurial environment, to help unleash the untapped job creation capacity of our 

nation’s more than 30 million small businesses who create twothirds of all the net new jobs in America. 

As Deputy Administrator, it is my hope that you will bolster the 

efforts of Administrator Mills, who is doing an outstanding job as 

she seeks to increase the SBA’s maximum loan limits, and Chair 

Landrieu and I as we work to provide a small business tax relief 

package, expand the loan limits of SBA 7(a) and 504 loans from $2 

million to $5 million, and allow for the refinancing of conventional 

small business loans through the SBA 504 program. These are core 

programs that we think are crucial to helping and encouraging job 

creation in this country on behalf of small businesses. 

Administrator Mills is also working to double the number of exporting opportunities for small business by expanding export technical assistance and enhancing trade promotion. 

Meanwhile, the Agency is moving towards enhancing their technology by preparing for implementation of the National Broadband 

Plan which, given your background, I am sure you can lend your 

expertise to. 

Mrs. Johns, I believe that you will do an outstanding job, given 

your breadth and depth of experience and background, while lending your support and expertise to the many issues that will unfold. 

Today, the SBA is playing a pivotal role in the most recent disasters that have regrettably unfolded throughout this country, and 

most obviously the Gulf Coast disaster, and we trust that you will 

provide tremendous input and be instrumental in making sure 

these SBA programs work efficiently and effectively on behalf of 

those affected. Thank you. 

Chair LANDRIEU. Thank you. 

4 

Senator Shaheen. 

OPENING STATEMENT OF HON. JEANNE SHAHEEN, A U.S. 

SENATOR FROM NEW HAMPSHIRE 

Senator SHAHEEN. Thank you, Chair Landrieu. 

I do not really have a statement this morning, but I would echo 

your remarks and that of Senator Snowe in the importance of small 

business to the economic recovery in this country and the critical 

role that the Small Business Administration is playing in that. We 

still have so many small businesses in New Hampshire who are 

having difficulty getting affordable loans. SBA is clearly going to be 

critical in helping those small businesses move forward, and we 

want to see strong leadership at the head of the SBA. 

I am delighted with your nomination, Mrs. Johns, and look forward to a swift confirmation. 

Chair LANDRIEU. Thank you. 

We have just been joined by Senator Cardin. Would you like to 

say something briefly or wait until the nominee presents her credentials? 

Senator CARDIN. I will wait. 

Chair LANDRIEU. Okay. Thank you, Senator. 

Congressman, why don’t you make the official introduction, and 

then we will take it from there. 

STATEMENT OF HON. ANDRE ́ CARSON, A U.S. 

REPRESENTATIVE FROM INDIANA 

Mr. CARSON. Thank you, Madam Chairwoman. Thank you for the 

opportunity to be here today, to Ranking Member Snowe, Madam 

Shaheen and Mr. Cardin. 

Thank you for giving me the opportunity to voice my strong support for the confirmation of Marie Johns. Mrs. Johns is an Indianapolis native that comes from a family of business owners, including her grandfather who owned a landscaping business in my district. I have enjoyed knowing Mrs. Johns and have been impressed 

by her dedication to public service and concern for working Americans. 

Throughout her career, as an executive and a business owner, 

Mrs. Johns has been an unyielding advocate for the principles of 

competition, fairness and diversity. She has been a tireless proponent of business growth across the racial, ethnic and socioeconomic spectrum, and a tireless promoter of the idea that diversity and inclusion are the keys to our long-term stability and prosperity. 

Few people can boast a resume as impressive as hers: President 

of Verizon Washington, Chair of the D.C. Chamber of Commerce, 

Founder of L&L Consulting and a Howard University Trustee, and 

the list goes on and on. It is without question that Mrs. Johns will 

bring the breadth of leadership experience to the SBA and a proven 

record of helping entrepreneurs across our great nation. 

As we continue the difficult process of rebuilding our economy, 

the Federal Government will have many difficult decisions to 

make. But one thing is abundantly clear, that the SBA having her 

presence gives American small businesses a chance to have a greater impact on economic growth and job creation than almost any 

5 

other effort. Few people understand this better than Mrs. Johns 

who has been involved with everything from small business 

startups to large corporations, and she knows just what they need 

to grow and prosper. 

As we all learn more and you learn more about her credentials 

over the course of this hearing, I believe wholeheartedly, Madam 

Chair, that you will find her to be qualified, competent and ready 

to begin leading the SBA on her very first day of service, towards 

the goal of growing American small businesses. 

I want to thank the Committee for giving me the opportunity to 

offer my support for the confirmation of Madam Johns because 

even though her work has brought her to Washington, D.C., I will 

always be proud to count Madam Johns as an Indianapolis native 

and a great Hoosier and a constituent and a friend. 

[Laughter.] 

Thank you again, Madam Chair. 

Chair LANDRIEU. Thank you very much. 

At this time, if I could ask our nominee to stand, we require our 

nominees to testify under oath. 

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

nothing but the truth, so help you, God? 

Mrs. JOHNS. I do. 

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

look forward to your testimony this morning. 

TESTIMONY OF MARIE ANNETTE COLLINS JOHNS, NOMINEE 

FOR DEPUTY ADMINISTRATOR OF THE SMALL BUSINESS ADMINISTRATION 

Mrs. JOHNS. Thank you, Chair Landrieu, Ranking Member 

Snowe, Senator Shaheen, Senator Cardin. 

And thank you, Congressman Carson. It is so meaningful to me 

that you are here today, and I feel the presence of my dear friend 

and your grandmother, Julia Carson, former member of Congress. 

It is hard for me to describe the honor that I feel by being nominated for this position by President Obama and the honor to be appearing before you this morning. The SBA’s mission to help small 

businesses grow and create jobs has never been more important. I 

believe that my experience will help the SBA advance that mission 

in the months and years to come. 

Like many Americans, small business is part of my family’s history. As the Congressman mentioned, my grandfather owned a 

landscaping business in Indianapolis, Indiana for many years. And 

nearly 50 years ago, when my uncle returned to Indianapolis, with 

his newly minted degree in Pharmacy from Howard University, my 

grandfather built a community pharmacy, so that he could practice 

there and serve the African American community. Since then, the 

spirit of entrepreneurship has been at the core of my professional 

and personal life. 

I would like to briefly touch on my qualifications for the position 

of Deputy Administrator, and then I would like to offer a few 

thoughts on the important work of the SBA. 

During my career, I have been active in my local community, the 

Chamber of Commerce which happens to be the D.C. Chamber of 

Commerce. The majority of the chamber’s members are, in fact, 

6 

small businesses. I have served as Chair of the Chamber, but my 

very first leadership role in the Chamber was as Chair of the Small 

Business Committee. In that role, I helped Main Street businesses 

get technical assistance and mentoring from larger firms in the 

area. I have always had the belief that small businesses benefit 

greatly from relationships with large businesses and large businesses have a responsibility to perform those services and to support small businesses in those ways. 

I also helped create a visitors center to encourage tourists to venture off the Mall and the national monuments, and to explore 

Washington, D.C.’s many vibrant neighborhoods and the small 

businesses located there. 

I have also helped small firms that are poised for growth. Specifically, I founded and chaired the Washington, D.C. Technology 

Council which has brought together entrepreneurs, thought leaders 

and cutting edge researchers, and together they form coalitions and 

partnerships that help the District diversify its local economy and 

create good jobs. 

My career consists of over 20 years in telecommunications. I 

started as a first level manager and retired as President of Verizon 

Washington, which was a mid-sized unit of our corporation, of 

about 2,000 employees. Many of our customers, in fact most of our 

customers, in the business arena were small businesses. So we 

were intent on developing products and services to meet their 

needs. 

In addition, I learned about the tools and regulatory conditions 

to help both my company and their businesses grow in tandem. I 

also was focused on having strong relationships with our vendors 

and subcontractors, some of whom were, in fact, SBA borrowers. 

And finally, I also ensured that we were involved in special projects 

such as training young people for jobs in the telecommunications 

industry. 

On a personal level, I have a 30-year record of civic leadership. 

For 10 years, I served as a trustee for Howard University, which 

is home to one of the SBA Small Business Development Centers. 

I also served on the Board of the Howard University Hospital, and 

I have been Chair since its founding of the Howard University Middle School of Mathematics and Science. I have also served on the 

Board of the Girl Scouts of the U.S.A., and, as we all know, at 

cookie time there are no cuter or more effective entrepreneurs anywhere. 

[Laughter.] 

Recently, I have become familiar with the SBA’s big mission during this critical time. In regards to capital, I believe the President’s 

jobs proposal, such as extending recovery loan provisions and increasing loan limits—as, Chair Landrieu, you mentioned in your 

opening comments—are extremely important. I also support the 

Agency’s recent self-stated goal to increase its network of active 

lenders. 

In regards to contracting, the Agency took a strong step forward 

with a new proposed Women’s Contracting Rule, and this is an important complement to the SBA’s contracting efforts with disadvantaged businesses, veterans and others. 

7 

In regards to counseling and training, if confirmed, I would like 

to play an active role in reaching out to various groups that have 

been hard hit by the recession, including women and minorityowned businesses. Putting loans, contracts and other job creation 

tools in the hands of these fast growing segments of the economy 

must be a priority. 

And, of course, my heart and prayers continue to be with those 

in our nation who are suffering from the effects of various disasters, and the Agency must continue to ensure that its disaster assistance program is working efficiently and effectively. 

Truly, the SBA has a critical mission. I have seen Congress and 

this Committee working closely with Administrator Mills to reinvigorate the SBA and make a strong impact. I believe we can do 

even more by reaching out and creating robust two-way communication with even more entrepreneurs, small business owners and 

partners. 

The SBA has a strong suite of services. We can build on what 

works, eliminate what does not and give taxpayers a strong return 

on their investment, and that is my pledge to you if confirmed. I 

know that small businesses will have more opportunities to create 

jobs and lead us into the full recovery that they have done time 

and time again throughout American history. 

I know my time is drawing to a close, but I would like to just 

say a word if I may about some very special family members who 

are here. When I came into the room, before I took my seat, I have 

to say I had to control myself because I really see my life represented behind me. 

[Laughter.] 

I have my church family here, my Verizon family. It is very moving for me. So please forgive me. I thought I was not going to do 

this. 

[Laughter.] 

If time allowed, I would like to introduce every one of them to 

you because they are all special to me. But I know it does not, so 

please permit me a moment to acknowledge just a few of them. 

I am very grateful that my mother, Frieda Casey-Collins, is here 

and was able to make the trip from Indianapolis, Indiana, to be 

with us today. 

I thank our son, Richard, and daughter-in-law, Lynn, for being 

here. 

And I am also delighted to acknowledge three little people who 

have enriched my life and who make me strive to be a better person every day—my grandson, Richard Franklin. Richard, raise your 

hand. 

[Laughter.] 

My granddaughter, Lauren Marie. Are you going to raise your 

hand? 

[Laughter.] 

Okay, she is the feisty one. 

And my goddaughter, Olivia Jordan Albury, who I have not—oh, 

there she is. Raise your hand, Olivia. 

[Laughter.] 

Then finally, I would like to thank my husband, Wendell, for his 

presence today and his 39 years of love and support. 

8 

I thank you all, and I am now pleased to answer any questions 

you may have. 

[The prepared statement of Mrs. Johns follows:] 

9 


Insert offset folio 1 here 66428.001
10 


Insert offset folio 2 here 66428.002
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Insert offset folio 3 here 66428.003
12 

Chair LANDRIEU. Thank you, Mrs. Johns. Thank you so much for 

that excellent presentation. It is an honor to be surrounded by so 

many friends and supporters. And our room is usually not this 

crowded. 

[Laughter.] 

So it is a great testament to your character and to the enthusiasm surrounding your nomination. I could not think of a person 

really more suited to be a partner with Karen Mills to lead this 

very important Agency and Department for our government at this 

time, and to breathe some enthusiasm and vigor and new life and 

new approaches, to strengthening small business and supporting 

the entrepreneurship in this country. 

Let me ask just a few questions and then we are going to try to 

move through this pretty quickly. 

One of the important priorities of this Committee is to make sure 

that the Small Business Administration is there when disaster 

strikes. As you know, we have had a very unfortunate set of disasters going back just as far as 9/11, moving forward through horrific 

hurricanes along the Gulf Coast, now this very difficult situation 

with an uncontrolled spill of oil in the Gulf. Tennessee experienced, 

according to the Senators and Members of the delegation, one of 

the most horrific disasters in the history of that State, with a large 

section of the City of Nashville, I understand, and Memphis suffering. 

What are some of your thoughts and ideas about the importance 

of aiding small business either during and immediately after those 

kinds of situations? And what have you maybe shared with Administrator Mills about some other opportunities for improvement or 

making sure that the programs we have are really working for the 

small business owners that are out there and depending on us to 

act quickly at a time of stress as these things are? 

Mrs. JOHNS. Chair Landrieu, that is a critical question, and I 

thank you. As I mentioned in my statement, my prayers continue 

to be with fellow Americans who are affected directly by these disasters, and the SBA does indeed have a very critical role to play 

in alleviating their suffering in a time of most need. 

Quite frankly, the Agency’s performance during Katrina was 

short of laudable. And the Administrator has, I think, done a phenomenal job. Administrator Mills, in recognizing that there were 

some systems that were broken and some processes that needed to 

be fixed, immediately put the resources on doing just that. Therefore, the response time that the Disaster Assistance Program is 

showing currently in terms of meeting small businesses’ needs has 

been reduced by an order of magnitude. So there have already been 

significant improvements made. 

And so what I intend to do is to work with Administrator Mills 

to make sure I am supporting the efforts that she already has underway, given my management background, to make sure that we 

have people who are trained, and systems that work, so that we 

can serve the needs of small businesses. 

In addition, what I would like to do—I think we have some opportunity—is to work more closely with other areas of government, 

to work with the Department of Defense, with Homeland Security, 

EPA, across the board. There are many pockets of expertise in 

13 

terms of disaster response, and what I want to do is to learn where 

those are and to connect the SBA’s resources to those other pockets 

of expertise. I believe that that will help us become even more effective in responding when our small businesses need us to do so. 

Chair LANDRIEU. Well, thank you very much, and that is encouraging to hear because we do have quite a few challenges in many 

areas. 

A second priority of this Committee is broadband access, highspeed access to entrepreneurs in this country that may be off of the 

riverfront, off of the four-lane highway or the interstate, struggling 

to stay afloat, to open up markets. We understand in this Committee that this could be a powerful tool for growth and wealth creation. 

It is not the general oversight jurisdiction of the Small Business 

Committee in terms of licensing, but we have taken, and will continue to take, a very aggressive position in advocating for small 

businesses in America to be on that new highway of opportunity, 

which is high-speed, affordable internet service. We have had any 

number of examples of companies, from Maine to Louisiana to 

other parts of California, other parts of our nation, that have testified right where you are sitting today that their business has been 

transformed by opportunities to access. 

Given your background, you seem to be a perfect fit in terms of 

understanding this. Could you comment on how you see the future 

of small business and the opportunities that exist for high-speed 

internet access, particularly in underserved urban areas and rural 

areas of this country? 

Mrs. JOHNS. Yes, Chair Landrieu, I would be happy to. I am very 

excited about the opportunity to have a role in those areas, in that. 

It sounds quaint now, but years ago when the internet was still 

new, and I was talking to businesses around this region about the 

power of broadband services and why small businesses ought to 

care, the thing that I thought was so fascinating about the power 

of the internet, the power of broadband services was that it really 

does level the playing field in a significant way—that on the internet, nobody knows how big you are. Depending on the power and 

the stickiness and the attractiveness of your web site, you can compete on any level. 

As we look at how we bring small businesses the support that 

they need in order to grow and create jobs, that has to include a 

strong broadband strategy. I am pleased to see that Administrator 

Mills is already working closely with the Chair of the FCC to make 

sure that the needs of small businesses are being factored into the 

broadband policy issues that the FCC is grappling with right now. 

I was recently able to attend a meeting, as a private citizen, of 

course, that the SBA convened to talk to companies who many of 

which are technology-based companies, to talk about how can the 

SBA support some of the new industries that are the engines for 

high job creation. The FCC Chair came and presented to the audience and talked about the broadband policy and the work that the 

FCC is doing now. 

The bottom line is that the SBA has a significant role in making 

sure that the Agency represents the voice of small business within 

the FCC, to ensure that they are keeping their eye on the ball for 

14 

those companies, because the major issues are accessibility and affordability. So the broadband policy that the FCC ends up passing, 

or passing on and what becomes law, has to make sure that those 

two elements are present because that is what small businesses are 

going to need. In order for us to continue to support them, that is 

what they are going to have to have. 

It also connects to the global strategy. The SBA’s and the President’s intent to increase the number of businesses, small businesses who are playing in the international space, they are going 

to need to have the technology to do that. 

Chair LANDRIEU. Thank you for raising that. I am going to turn 

this over to Senator Snowe, but I am glad you raised the issue of 

export. Less than 1 percent of exports are done now by small businesses. There is a tremendous opportunity to expand that capacity, 

and so we have several bills pending that will enhance those opportunities for small businesses. Of course, the internet gives us the 

opportunity to actually accomplish what our vision is in that regard. 

Senator Snowe. 

Senator SNOWE. Thank you. 

Mrs. Johns, I would like to expand upon something that we discussed when we met yesterday. I would be interested in you describing how you view your role as Deputy Administrator as well 

as your conversations with the Administrator in terms of what 

your priorities will be in carrying out your responsibilities because 

they can be varied, and obviously it is up to the Administrator. 

How do you view your role and what responsibilities you will assume? 

Mrs. JOHNS. Thank you, Ranking Member Snowe. I have had, as 

I mentioned in our conversation, a number of conversations with 

Administrator Mills about the role, and quite frankly it is still 

evolving. However, I will be the Deputy, the number two, and in 

that capacity I will have a role to play across the Agency. 

We have talked about some specific areas of concern where she 

would like for me to focus initially, and I am looking forward to 

doing that. One in particular is in our entrepreneurial development 

area. The SBA has a vast array of training programs, technical assistance opportunities. The Agency has done a good job with meeting the need for training that small businesses have, but there is 

more that can be done. So what I am looking forward to doing is 

to working with the individuals at the Agency who manage that 

part of the program and figuring out how we expand the access 

that small businesses have to the resources of the SBA. 

In my mind, it is related to concerns that businesses have about 

capital. Certainly, we are experiencing a significant credit/capital 

crunch in the country right now, but there are small businesses 

who are seeking capital who need technical assistance to strengthen their performance and strengthen their position, to make them 

in better, put them in a better situation in order to successfully get 

the resources that their business need. 

So those in my mind, those resources, those program areas of the 

Agency work hand in hand. So that is an area where I want to 

focus first. 

15 

Senator SNOWE. Do you expect to be traveling a great deal 

around the country, to meet with small businesses and banks and 

other entities that are important to small business? 

Mrs. JOHNS. Absolutely. I know the job of the Deputy in times 

past has been more of an internally focused, operational position, 

but, as Administrator Mills and I have discussed, that is not the 

way the job will be structured in this Administration. I will have 

certain internal areas of responsibility and areas where I will want 

to focus internally, to make sure that we are managing our work 

well. But I also want to join her, and she has asked for my help 

to join her externally, to make sure that we are expanding our 

bandwidth, if you will, in terms of who we are able to cover and 

who we are able to talk about the SBA mission. 

I also am looking forward to bringing the constituencies and the 

relationships that I have built over my many years in business to 

that process because there are others we can touch, and we are 

looking forward to doing just that. 

Senator SNOWE. I think having an extension of the SBA performing outreach across the country would be critical because I 

know, from my own conversations and experiences in speaking 

with the small business community in my state and across the 

country, that they still need to have a connection to what is available to them with respect to SBA resources in these very challenging times. I had a number of small business forums in my 

state, for example, and there were many questions that were raised 

about what is available and, specifically, access to capital. 

I know that you have addressed that in your testimony. How 

would you suggest we ensure that small businesses are connected 

to accessing available capital? 

First, we have had a problem with lending institutions. That is 

why we are trying to increase the amount of money available, to 

provide for small business loans. So I think from that standpoint 

we have to make sure that happens. On the other hand, we also 

want to ensure that we are doing it in the right way. So how best 

do you think the SBA should ensure that capital is available? 

Today’s credit crunch constitutes the worst since 1942 according 

to a recent FDIC survey in terms of bank lending to small businesses by lending institutions. So you are right, Mrs. Johns, about 

increasing the number of lenders available to provide SBA loans, 

and secondly making sure they have sufficient capital. Their requirements have been tightened with the regulators, and so we 

have to create a balance by ensuring they have the available capital. 

Mrs. JOHNS. One area where I want to focus, Senator Snowe, is 

on the smaller banks, mid-size and smaller banks. The Agency has 

done a very good job, and Administrator Mills has traveled the 

length and breadth of the country, talking to the large bankers and 

has been very successful in getting many of them back to SBA 

lending. So I applaud her for that. 

I think we have an opportunity, though, to spread the word, to 

meet, to touch, to recruit the smaller banking community because 

many times those smaller community banks are more in touch, 

quite frankly, with the businesses, the smaller businesses in their 

area. They know the market very well, and I believe that we 

16 

should have some very good opportunities for talking to those 

banks and explaining to them how they can be a very good partner 

with the SBA. 

I had the opportunity to serve on a bank board, a de novo bank 

in Maryland, HarVest Bank of Maryland, and HarVest Bank’s 

theme is bringing banking back home to Maryland. The focus for 

HarVest Bank is to be very locally focused, to understand the business community, right in Rockville and Bethesda, Maryland. 

Those are the bankers that I strongly believe that the Agency 

can go to, we can talk about the suite of products on the loan side 

that the SBA offers, and make a strong case that would be inviting 

for them to want to join the network of lenders. So that is where 

I think there is some significant opportunity that I would like to 

tap into. 

Senator SNOWE. Thank you. 

Chair LANDRIEU. Thank you. 

I have one housekeeping question that I am required to ask by 

the rules of the Committee and then just one maybe brief comment. 

The children have been extremely patient, and the audience has 

been very quiet. 

There will be times, if you are confirmed by the Senate, that you 

will be required, Mrs. Johns, to testify before this and maybe other 

committees of the Congress. Are you willing to appear and testify 

before any duly constituted committee of the Congress when requested to do so? 

Mrs. JOHNS. Yes. 

Chair LANDRIEU. Are you willing to provide such information as 

required by such committee? 

Mrs. JOHNS. Yes. 

Chair LANDRIEU. Thank you very much. 

My final comment is another initiative that I have not completely 

formulated yet, but I know that my Ranking Member and members 

of this Committee will share my concern over some very riveting 

testimony before this Committee just in the last month. I want to 

share it with you, and we will be sending a more formal letter to 

the Administration. 

We received testimony from one of the economists in our nation 

who studied current population reports and trends, and this information is lifted from the United States Census, but I think it is 

worth repeating, particularly to the group assembled here. 

The median net worth—although let me begin by saying this 

country has made extraordinary progress in terms of equal opportunity across the board over the last 50 years in particular. We are 

proud of what we have done as a country to lift people up and to 

expand opportunities, both democratic and economic. These statistics give me great pause and concern, and I want to share them 

with you, and this is taken from the last Census. 

The median net worth of non-Hispanic white households in the 

United States today, or a few years ago, was $87,000. African 

American households are $5,446. Asian Pacific is $59,292, and Hispanic families are $7,950. 

I, for one, who does a lot of this work and have my whole life, 

I was absolutely startled by the discrepancy of this. This includes 

17 

home equity. If you take out home equity, for the African American 

community, the net worth of the median is less than $1,000. 

So I am going to be sharing this data everywhere I go and to try 

to use it to prompt and prod us to do more. I think that work can 

start at the SBA. Obviously, there is great responsibility across the 

board, at every level of government. 

I think you know, Mrs. Johns, you have been appointed for a reason, and perhaps you can provide some focus, some very specific 

focus with this Administration on alleviating this discrepancy. 

I think there are strategies that most certainly can be employed, 

and our Committee is going to be looking and very open for suggestions because in this day and age, with the opportunities that are 

out there, and with all of the accomplishments that have been 

achieved, these numbers are very, very gripping. So we have a job 

to do. 

Is there anything else? 

Senator SNOWE. No 

Chair LANDRIEU. Okay. This meeting is adjourned. 

I am sorry. The meeting is adjourned. You can applaud. 

[Applause.] 

We will keep the record open for letters and endorsements. The 

record will remain open until May 21st. 

The Committee will hold a markup on this nomination at the 

very first vote next week. We need a majority of members to be 

there. We are looking forward to getting this nominee through to 

the Senate by next week. Thank you. 

[Whereupon, at 10:53 a.m., the Committee was adjourned.] 

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