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On Wednesday, House Democrats took steps towards protecting small businesses from one of the most pressing and consequential threats they face—cyberattacks. After intelligence agencies confirmed that Russia used cyberwarfare to influence Donald Trump’s presidential victory, cybersecurity is at the forefront of national attention. Seen as an easy target by hackers, small firms are increasingly facing the threat of a cyberattack. During a House Small Business Committee hearing, Committee Democrats stressed the need for the federal government to collaborate with and aid small firms when it comes to cybersecurity.  

“The sheer destruction that we have seen in this past year alone from cyberwarfare is incredibly distressing,” said Ranking Member Rep. Nydia M. Velázquez (D-NY). “From hackers orchestrating the Equifax breach to Russia’s attack on our democratic institutions, one stark reality is clear—our government must take every necessary step to strengthen cybersecurity across the board.”  

Increasingly, businesses have turned to the internet as a platform to conduct transactions and store consumer information. While 97 percent of small firms use email and 74 percent have a company website, just 14 percent of small businesses say they have a plan to keep their company secure from cyber threats. Making matters worse, small firms are often viewed as an easy target by hackers with 40 percent of all cyber hacks hitting businesses with under 500 employees. One survey found that the average small business has a 60 percent chance of closing permanently after a cyber-attack.

Over the past two decades, the federal government has created a policy framework that seeks to prevent cyberattacks by incentivizing a public and private partnership when it comes to data sharing. One such federal initiative includes Information Sharing and Analysis Organizations (ISAOs) run under the Department of Homeland Security. Testifying in front of the Committee, Thomas Gann, Chief Public Policy Officer at McAfee, LLC. discussed the possibility of developing an ISAO to help educate and protect small firms from hacks.

“Small businesses do not have the resources to address the problem of gathering and analyzing cyber threat intelligence on an ongoing basis, but a highly targeted ISAO with initial support from the federal government could help,” said Gann. “A small business-focused ISAO could use the economies of scale to be able to supply appropriate information to those businesses that lack the resources but still need current cyber threat intelligence.”

Taking into careful consideration the reality that many small firms lack the resources to invest in cybersecurity, Democrats are pushing for increased support from federal agencies. While the Small Business Administration (SBA) offers online tools to help small firms install proper safeguards, Democrats pressed for increased resources to help SBA expand cybersecurity training. 

“A cyberattack has the potential to compromise sensitive consumer data and sink the livelihood of a small firm,” said Velázquez. “On this Committee, we have a responsibility to look out for America’s small businesses, and with this we must do more to ensure small firms receive the training, information and technology they need to stay protected.”