Washington, DC — Today, the House Committee on Small Business held a full committee hearing entitled “A Voice for Small Business: How the SBA Office of Advocacy Is Cutting Red Tape,” examining the role of the Small Business Administration’s (SBA) Office of Advocacy and whether it is effectively serving as an independent voice for America’s small businesses.
During the hearing, Ranking Member Nydia M. Velázquez (D-NY) raised concerns about the need for a truly independent Office of Advocacy that is willing to stand up for small firms that are being hurt by Trump administration policies.
“Small businesses need a strong advocate right now. Over the past year, small firms have lost government contracts, experienced supply chain chaos, and endured a constant state of confusion amid President Trump’s tariffs, rising prices, and avalanche of policy changes,” said Ranking Member Velázquez. “That is why it is important to have an independent office that will serve as a strong and credible voice for small businesses within the Administration, not one that will echo whatever the Administration wants to hear.”
Established in 1974, the Office of Advocacy is the independent office within SBA that “advances the views and concerns of small businesses before Congress, the White House, federal agencies, federal courts, and state and local policymakers, as appropriate.” Advocacy is led by the Chief Counsel for Advocacy, who is appointed by the President and confirmed by the U.S. Senate.
Throughout the hearing, Democratic Members raised concerns that the Office of Advocacy has not been a credible voice for small businesses, failing to convey to the Trump Administration the real harm entrepreneurs say tariffs are causing their businesses. Members emphasized that tariffs disproportionately harm small businesses, which operate on thinner margins and lack the resources of large corporations to absorb sudden cost increases.
Members also raised broader concerns about the Office of Advocacy’s independence, particularly as it has been tasked with leading deregulatory initiatives directed by the SBA Administrator. Several Democrats stressed that deregulation is not the answer. The reckless approach will rollback important safeguards to protect our health, safety, and the environment.
“We’ve heard testimony time and time again that smart, well-crafted, regulations provide clear rules of the road for small businesses, offering certainty and ensuring that they can compete on a level playing field,” said Ranking Member Velázquez. “Smart, well-crafted regulations promote innovation, especially in the energy and manufacturing sectors.”
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