WASHINGTON, D.C. – Today, the House Committee on Small Business held a full hybrid hearing on the Small Business Administration’s FY 2023 Budget.

Ranking Member Blaine Luetkemeyer’s opening statement as prepared for delivery:

Thank you, Madam Chair, and thank you for calling today’s hearing. 

Administrator Guzman, thank you for joining us in person this morning to discuss the Biden administration’s fiscal year 2023 budget request.   

The SBA has played an outsized role in assisting the American economy to recover from the COVID-19 pandemic.  As the nation moves away from the emergency period of the pandemic and into recovery, it’s critical that we evaluate the SBA’s role moving forward.  To do so, requires a full and complete evaluation of the agency’s performance, including in the critical pandemic relief programs.

Unfortunately, a full evaluation of one of the largest pandemic relief programs, the Paycheck Protection Program, continues to be hindered by Secretary Yellen’s failure to appear before this Committee. In the CARES Act, the Department of the Treasury was charged with onboarding new lenders into the program.  Yesterday, on the one-year anniversary of Secretary Yellen missing her first deadline to testify before this Committee, and thus America’s small businesses, I sent two letters requesting follow-up investigations into this matter.

The first letter I sent was to Attorney General Garland asking for a Department of Justice investigation into whether Secretary Yellen remains in violation of the law by failing to appear before this Committee.  The second letter I sent was to the Department of the Treasury’s Acting Inspector General Richard Delmar requesting an investigation into the Department and Secretary Yellen. 

I ask unanimous consent to enter my letter to Attorney General Garland and my letter to Acting Inspector General Delmar into the record. Thank you.

It's been just over a year since you assumed the role of Administrator and you’ve faced no small task.  From unprecedented state and local shutdown orders that forced small businesses to either operate at a reduced capacity or close their doors entirely to rising inflation, labor shortages, and supply chain disruptions the SBA has its work cut out for it. But if ever a time for the Agency to rise to the occasion, this is it.

Despite the country moving toward recovery, American small businesses continue to feel the repercussions thanks in no small part to the actions and failures of this administration.  Headwinds are blowing stronger by the day and if that sounds familiar its because economic indicators were bad the last time you were here in November, and since then they have only continued in the wrong direction.

Prices are now rising at their highest rate in 40-years. Job openings continue to rise – even in just the few months since you last testified – and create staffing headaches for small business owners. And if it isn’t a labor shortage, it’s a supply chain issue as more and more small businesses are finding it nearly impossible to obtain goods and products. Add to that the concern among small business owners when they hear of the tax increases this Administration is routinely proposing and its no wonder so many small business owners have begun to question: who is supposed to be standing up for small businesses?

I can answer that question, Madam Administrator.  It is you who should be advocating for small businesses in this Administration.  If a policy or regulation creates red tape or a cost for small businesses, it is you who should be pointing this out to the President. 

Unfortunately, the American Action Forum has studied the regulatory costs associated with the Biden Administration’s first year in office.  The total comes to a staggering $201 billion dollars.  This is unacceptable.

When the Biden Administration continues to propose tax increases, you should be pointing out that no matter how they spin that the increases wouldn’t impact small businesses, the fact is, increasing taxes will hurt them.

Now more than ever, we need a Small Business Administration that is responsive to the nation’s 32 million small businesses, entrepreneurs, and startups. 

Yet, we continue to see the same thing.  This hearing is scheduled and magically our letters and inquires start to receive responses.  The speed at which our concerns are being addressed is improving, but more work needs to be done. 

With $1.2 trillion dollars flowing through the agency’s doors, the American public needs accountability and transparency. 

Plain and simple, the SBA needs to be improved and I have a plan to do it. 

Now more than ever, small businesses need an SBA that is responsible and fulfills its statutory mission day in and day out.  The core responsibilities that are outlined in law need to drive the Agency’s decision-making.  Anything else is irresponsible. Unfortunately, that is what we see with your budget -- more spending without outcomes for Main Street USA.

Moreover, fraud is fraud, Madam Administrator.  As the Republican leader of this Committee, I don’t care when it happened, it needs to be addressed. The integrity of the SBA’s programs need to be restored fully and comprehensively.   I stand ready to work with anyone and everyone to ensure the SBA has the oversight metrics in place to deter and catch bad actors. 

With that Madam Chair, I am looking forward to today’s conversation and I yield back. 

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