House Committee on Small Business, Republicans

Straight Talk: SBA Sidetracked

Weekly Update from Sam
Dear Friends,  

The SBA is responsible for managing a set of core programs designed to help small businesses succeed, but the agency has a recent history of ignoring the law and being sidetracked by its own pet projects. In a hearing this week with new SBA Administrator Maria Contreras-Sweet, the Committee clearly emphasized that resources should be focused on the programs and reforms that Congress has mandated. Many unauthorized SBA initiatives duplicate services available from other federal agencies and the private sector, and thus are wasteful. While the agency is spending millions of dollars yearly on these untested projects, the number of small businesses trained in many of the SBA’s proven entrepreneurial development programs has been in decline. 

This diversion of resources also comes at the expense of implementing contracting reforms (a Committee legislative priority) signed into law two years ago that will help small businesses compete in the federal procurement arena. Over 40 of the tasks assigned to the SBA to implement the law remain incomplete. The Committee will continue to exercise oversight of the SBA’s priorities so that resources are available for the most essential small business growth programs.

Sincerely,                                                                                                                           

(signed)
Sam Graves
Chairman

Latest Committee Action

On Wednesday, the Committee examined the priorities and plans of the Small Business Administration with testimony from Administrator Contreras-Sweet, who has led the SBA since April. The Committee examined how spending on other efforts could reduce the ability of the SBA to meet its statutory obligations to the programs that have been shown to benefit small businesses and their role in the economy. Read the Washington Business Journal report here.

On Thursday, the Subcommittee on Contracting and Workforce, under the chairmanship of Rep. Richard Hanna (R-NY), examined the declining rate of small business creation over the past 30 years and the state of entrepreneurship during this latest economic recovery. For the first time in over 30 years, more businesses are dying off than being created, Hanna noted. The rate of new business creation has dropped by nearly 50 percent since 1978.

News from Washington

On Tuesday, the House passed the Waters of the United States Regulatory Overreach Protection Act (HR 5078), a common-sense bill that would prohibit the Environmental Protection Agency (EPA) and the Army Corps of Engineers from finalizing their proposed rule that would redefine “waters of the United States” under the Clean Water Act, and be costly for many small businesses. Chairman Graves and other Committee members have strongly opposed this overreach by the agencies. In total, the cost of complying with government regulations is now more than $2 trillion yearly, according to a study released Wednesday by the National Association of Manufacturers. Read Chairman Graves’ statement here, and a report in The Hill here.

Also on Tuesday, the House passed the bipartisan Anti-Spoofing Act (H.R. 3670) which protects consumers against fraudulent actors and deceptive text messages by updating the Truth in Caller ID Act of 2009, to prohibit entities from transmitting misleading or inaccurate caller ID information.

On Thursday, the House passed the Employee Health Care Protection Act (HR 3522), which would give Americans in the group insurance market the opportunity to keep their policies in 2014 through 2019, and give small businesses and employees the option to choose plans even if they don’t comply with the Affordable Care Act’s rules. The Committee has conducted extensive oversight of the Small Business Health Options Program (SHOP) this Congress. Chairman Graves has twice formally requested the Obama Administration, in January and again in June, to release SHOP enrollment numbers and other basic facts. To date, the information has not been produced.

Also on Thursday, the House passed the E-Label Act (H.R. 5161) which reduces regulatory burdens faced by electronics manufacturers. It removes the requirement that electronic devices contain a physical label to detail information required by the FCC and gives manufacturers the option of providing labeling information on the screen of the device.

Notable Op-Ed
Small businesses are skeptical of the EPA’s ‘trust us’ message
​By Sam Graves
September 12, 2014
Committee Calendar
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