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Reform the SBA

BACKGROUND:
The SBA was created by the Small Business Act of 1953 and is the sole federal agency charged with helping and assisting the nation’s smallest businesses. In addition to representing small businesses at the federal level, the SBA also administers numerous programs to assist small businesses with capital, counseling, and contracting resources.

GOALS:
-Improve the SBA to better serve small businesses in a prompt, effective, efficient, and responsible manner
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Increase accountability and ensure all SBA programs meet performance and outreach metrics and targets
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Ensure all small businesses are served and represented by the SBA


SOLUTION:
IMPROVE the SBA Act, Title I — Small Business Administration Oversight
This section modifies the SBA’s mission statement to better serve small businesses and requires the SBA to establish performance metrics for all programs. Additionally, this section also requires the SBA Administrator to testify annually before Congress and report on outstanding SBA Inspector General and Government Accountability Office recommendations.

IMPROVE the SBA Act, Title VI — Prohibition of Ineligible Use of Funds
This section prohibits certain businesses from utilizing the SBA’s resources, including Planned Parenthood, those that are primarily engaged in lobbying, and those that have a principal place of business in China or are indirectly or directly owned by a business in China. Additionally, this section also prohibits businesses from using SBA proceeds to make payments on commercial debt or federal debt.

IMPROVE the SBA Act, Title VII — Ensure All Small Businesses Are Served
This section requires the SBA capital and counseling programs to be administered on a first-come, first-serve basis and prohibits the SBA from using preferences and priorities for distributing assistance.

IMPROVE the SBA Act, Title X — Small Business Administration as a Representative of Small Businesses
This section requires the SBA to examine the impacts of increased taxes, government spending, inflation, supply chain, regulatory costs, federal minimum wage, and COVID-19 lockdowns on small businesses.

ADDITIONAL LEGISLATION AND ENGAGEMENT:
Stop Funding Rioters Act | February 9, 2022
H.R. 6653 prohibits persons convicted of a felony or misdemeanor of striking a law enforcement officer while participating in a riot that resulted in damage to a small business from receiving assistance from the SBA. Introduced by Rep. Beth Van Duyne (R-TX) | Original House Cosponsors: Reps. Blaine Luetkemeyer (R-MO); Scott Perry (R-PA); Louie Gohmert (R-TX)

Small Business Advanced Cybersecurity Enhancements Act | July 19, 2021
H.R. 4513 requires the SBA to establish a central small business cybersecurity-assistance unit within the SBA and a regional cybersecurity-assistance unit within each small business development center. Introduced by Rep. Byron Donalds (R-FL) | Original House Cosponsors: Reps. Nydia Velazquez (D-NY); Steve Chabot (R-OH); Chrissy Houlahan (D-PA)

Ensuring Economic Recovery Act | March 9, 2021
H.R. 1718 requires the SBA to report on the recovery of small businesses from the COVID-19 pandemic and the effects of increasing the federal minimum hourly wage to $15 on small businesses. Introduced by Rep. Bath Van Duyne (R-TX) | Original House Cosponsors: Reps. Blaine Luetkemeyer (R-MO); Scott Fitzgerald (R-WI); Maria Salazar (R-FL); Andrew Garbarino (R-NY); Pete Stauber (R-MN)

Letter to the Biden Administration Raising Concerns About the Administration’s Directives to Federal Agencies to Engage in Voting Access and Registration Activities | March 29, 2022
House Committee on Small Business Ranking Member Blaine Luetkemeyer (R-MO) and Republican Leaders on the House Committees on Administration, Agriculture, Education and Labor, Energy and Commerce, Oversight and Reform, and the Appropriations Subcommittees on Agriculture, Financial Services, and General Government Services sent a letter to Susan Rice, the Director of the Domestic Policy Council and Shalanda Young, the Director of the Office of Management and Budget expressing constitutional and statutory authority concerns with President Biden’s executive order directing federal agencies to engage in voting access and registration activities. Signees: Reps. Blaine Luetkemeyer (R-MO); Rodney Davis (R-IL); Bryan Steil (R-WI); Glenn Thompson (R-PA); James Comer (R-KY); Cathy McMorris Rodgers (R-WA); Virginia Foxx (R-NC); Andy Harris (R-MD); Steve Womack (R-AR)  

Letter to Comptroller General Dodaro Voicing Support for Veteran-Owned Small Businesses | March 23, 2022
House Committee on Small Business Ranking Member Blaine Luetkemeyer (R-MO) and House Committee on Veterans Affairs Ranking Member Mike Bost (R-IL) sent a letter to Comptroller General Dodaro voicing their support for veteran-owned small businesses and access to capital. Signees: Reps. Blaine Luetkemeyer (R-MO); Mike Bost (R-IL)

Letter to SBA Administrator Guzman Requesting Better Communication and Responsiveness | October 18, 2021
House Committee on Small Business Ranking Member Blaine Luetkemeyer (R-MO) and House Committee on Financial Services Ranking Member Patrick McHenry (R-NC) sent a letter to SBA Administrator Guzman voicing their significant concerns about the lack of communication and responsiveness from the SBA on behalf of their constituents and Members of Congress. Signees: Reps. Blaine Luetkemeyer (R-MO); Patrick McHenry (R-NC)

Letter to SBA Administrator Guzman Requesting Information and Documents on Any Plans to Change the SBA’s Programs to Reflect President Biden’s Executive Order 13985, “Advancing Racial Equity and Support for Undeserved Communities Through the Federal Government” | June 22, 2021
Previous House Committee on Small Business Ranking Member on the Subcommittee on Underserved, Agricultural, and Rural Business Development Jim Hagedorn (R-MN) sent a letter to SBA Administrator Guzman requesting information and documents on how the SBA plans to change its programs to fit into the Biden administration’s order to advance racial equity through the federal government.