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Today, the House Committee on Small Business approved the Small Business Administration’s (SBA) 2019 budget views and estimates. During the markup, Committee Democrats submitted a letter to the House Committee on the Budget expressing further views on the SBA’s budget. Below are the Congresswoman’s remarks from the markup.

“Today, we are marking up a broad document in which the Majority focuses on improving program functions and oversight at the Small Business Administration.  This is consistent with the Committee’s previous work and the bipartisan manner in which we have conducted past oversight.  I commend the Chairman for continuing to operate in this inclusive, bipartisan fashion.

“In that vein, we agree with much of the Majority’s views.  For example, recommending SBA take steps to better manage its capital access, procurement, and entrepreneurial development programs is prudent governance.  Doing so advances SBA’s mission to assist small businesses and better protect taxpayers.

“Likewise, we share concerns that SBA has repeatedly failed to properly evaluate its pilot programs.  And, the absence of performance benchmarks makes it nearly impossible to understand what these initiatives are accomplishing.  By creating new initiatives, the SBA is straining its limited resources. Instead, it should be relying on time-tested programs -- for a fraction of the cost.

“Similarly, SBA should strengthen oversight of its lending programs and monitor its loan volume for purposes of managing its 7(a) lending cap. When it comes to the lending cap, it is critical the Agency be afforded flexibility to address unanticipated demand for loans. The Chairman and I have authored legislation to achieve this goal and I look forward to working together to move it toward enactment.

“Let me also emphasize that in addition to avoiding interruptions in the SBA’s lending activity, 7(a) and other program loans should be targeted to businesses who need them most. 

“To this point, we must ensure that SBA improves outreach to borrowers and lenders in underserved markets.

“Some of SBA’s most important programs kick-in following disasters. SBA’s disaster loans remain the primary form of federal assistance for both homeowners and small businesses and it is rightly stated by the majority that continued monitoring of disaster funding is required.

“Despite much agreement, when it comes to the Regulatory Flexibility Act our views do diverge from the Majority’s.  Certainly, the Act is an important tool for small firms in reducing regulatory burdens.  What we disagree with is the blanket rejection of regulations that safeguard health, safety, and the environment.

“Democrats stress that we must proceed with thoughtful deliberation to tailor regulations for small businesses. That said, I look forward to finding common ground with the Chairman in the area of regulatory policy – as we have done with so many other policy issues.

“Disagreement on agency priorities is not unusual and that is why Committee Democrats will be submitting additional views and estimates to the Budget Committee. Still, I would like to emphasize, this year, there is common ground on most areas of oversight and agency operations.

“SBA remains the government’s best resource for small business, be it capital access, training, or contracting opportunities.  The success of the economy depends on small businesses leading the way and the SBA is central to this.

“I thank the Chairman again for holding this markup and look forward to continuing to work in a bipartisan way to further foster entrepreneurship.”

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