▶ 0:22:39we get started. I want to recognize Representative Muer from the great state of Pennsylvania to lead us in the pledge of allegiance.
▶ 0:24:25The committee will now come to order and a quorum is present. And without objection, the chair is authorized to declare a recess of the committee at any time. As required by the House rules, a copy of the legislative measures have been made available to members and the public at least 24 hours in advance. Without objection, the committee will vote electronically in accordance with the committee rules and regulations developed by the House Committees on Rules and Administration. I now recognize myself for opening remarks. Uh today, we will mark up seven important bills that support small business across the country.
▶ 0:24:55These bills reflect the commitment to equipping entrepreneurs with the tools they need to innovate, grow, and compete in our ever evolving economy. Uh from the expanding access to artificial intelligence resources, uh strengthening oversight, removing outdated barriers to to capital, and tackling burdensome regulations, each of these bills will support Main Street America in a meaningful way.
▶ 0:25:17As chairman, I'm proud of the network uh or proud of the work being done in this committee to support the administration's efforts and ensure that small businesses remain at the forefront of the American economy. These bills represent the committee's bipartisan commitment to fostering an environment where small businesses can grow, innovate, and invest in their communities. Several of the bills we are considering today focus on the transformative role of artificial intelligence and ensure that small businesses have access to resources and training to help them utilize AI.
▶ 0:25:48Our bills today will also bring greater accountability and oversight of the SBA 504 loan program and improve access to SBA lending by all types of industries. We will also consider a bill that would finally bring SBA uh micro lending to the Commonwealth of the Northern Mariana Islands. I appreciate the ranking member and the committee staff who have supported the committee's effort over the years on this issue.
▶ 0:26:11Another bill will uh require the SBA to implement requirements for the fiscal year 2019 NDAA to provide uh information and outreach about uh employee ownership for small businesses. And finally, we will consider a bill that empowers small businesses to report burdensome regulations by codifying the SBA office of advocacy's red tape hotline. I'm proud of the continued bipartisan efforts that have resulted in today's markup.
▶ 0:26:38These efforts have led to the passage of 18 small business bills out of the House this year, which now awaits Senate consideration. I look forward to working with my colleagues so we can continue to pass meaningful legislation that empowers small businesses and strengthens our uh communities. Now, with that, I look forward to today's markup. And I yield to the distinguished me member and my friend, the ranking member from New York, Miss Velasquez, for her opening remarks. Thank you, Mr. Chairman, for convening this markup today.
▶ 0:27:06As we consider legislation to shape the future of small businesses across the country, it is important to address both the opportunities and challenges facing small businesses today. I plan to lend my support to the six bipartisan bills under consideration, and I will lay out my concerns with the last bill. and I appreciate the chairman's efforts to mark up a fair ratio of Republican and Democratic bills.
▶ 0:27:37I'm encouraged to see us working together on common sense bipartisan bills that provide more opportunity for small businesses because expanding opportunities shouldn't be a bi a partisan issue. With that said, we need the SBA to be a more accountable partner. ignoring congressional oversight letters and requests for meetings undermines trust.
▶ 0:28:03It needs to change and my hope is that you will join me in ensuring the agency is more responsive to this committee and I am hopeful we can work together on issues that really matter. Lowering costs for small businesses. These critical employers who account for a large portion of jobs in this country are not hiring because they are grappling with inflation and escalating costs.
▶ 0:28:31According to the Center for American Progress Analysis, more than 5 million self-employed small business owners have health insurance coverage through the ACA. We cannot allow these tax credits to expire, causing premiums to double for millions of Americans. And our ranchers and farmers are reeling from decisions on tariffs and beef purchases that have been unilaterally made by this administration.
▶ 0:29:01I urge you to schedule a hearing so we can hear directly from small businesses about these important issues. Thank you again, Mr. Williams and I look forward to a productive markup. I yield back.
▶ 0:29:14Lady yields back. And does any other member seek recognition for the purpose of making an opening statement?
▶ 0:29:21Okay. Seeing none, we will now move to consideration of the first bill. The committee now moves to consideration of HR5763, the Main Street Parody Act, introduced by Chairman myself and Representative Simone. The clerk will report the bill. bill to amend the small business
▶ 0:29:43objection. HR5763 is considered as read and open for amendment. I now recognize myself for a statement on the bill. Most small businesses owners uh applying for 504 loans must contribute 10% as a form of down payment. However, if their loan involves a limited purpose property such as bowling alley, dairy farm, or doctor's office, they must contribute an extra 5%. A total of 15% down.
▶ 0:30:10And everyday businesses on Main Street like these are unfairly burdened with this reg extra equity requirement that is based on outdated, inaccurate assumptions that these kinds of businesses pose a greater risk to the uh program. So most of the loans in these affected industries like bowling al bowling alleys, hospitals and wineries perform better on average than the entire 504 portfolio.
▶ 0:30:31So this uh bill will removes unnecessary burdens for entrepreneurs who are seeking loans for these uh special purpose buildings and will put them on equal footing with their peers. This change will support the countless small businesses at the at the center of our communities and drive and and drive the economy. And is time to bring parody back to Main Street. So, I urge my colleagues to vote yes on and I yield back.
▶ 0:30:56And I now recognize the bill's co-sponsor, Representative Simone from the great state of California for her remarks.
▶ 0:31:03It's Simon, but I really like But I like Simone. It sounds a lot more.
▶ 0:31:08She's my friend. I was just checking her out. Thank you.
▶ 0:31:12Simone gives it a little French flare. My family is from Louisiana, sir. U Thank you so much. It's been an honor to work with you on this bill together, you and I, championing this bill and others. It's been a real honor and I want to thank uh our ranking member of Alask for really lifting up the freshman members of this committee to ensure that we're part of this legislative process full scale.
▶ 0:31:33Uh the Main Street Parody Act is a simple way uh to support a broad range of small businesses in this country, not just the ones with standard commercial property. So, right now, businesses in my district and in districts across the country operate in what's called a special purpose property. Uh, and they are being penalized simply for having unique construction or building needs. You referenced bowling alleys, and you're absolutely right.
▶ 0:31:58These include places, not just bowling alleys, but car washes and marinas and funeral homes and recreation centers. These are the kind of small businesses in our community that serve local families, that create real jobs and keep our communities running. The Main Street Parody Act lowers the equity requirement for these borrowers to the same 10% required for everyone else.
▶ 0:32:25This is definitely a common sense bill that supports small business owners throughout the country. This bill is a simple fix. It is nonpartisan and it really does what our constituents have asked us to do. Making small business work on Main Street, in rural, and in urban communities throughout this country.
▶ 0:32:46It's about promoting fair, inclusive economic growth and recognizing that opportunity should not depend on something as small as the type of building your business happens to own or run in. I urge all of my colleagues today to support the Main Street Parody Act and ensure fair capital access across all small business industries in our great nation. Thank you, sir. And I yield back.
▶ 0:33:14Congressman Simon, for that. Are there any other members who wish to be recognized for a statement on the bill? No. Uh, I now recognize the ranking member to speak on the bill.
▶ 0:33:28Thank you, Mr. Chairman, I support This bill makes important adjustment to improve SBA504 CDC program. I applaud Chairman Williams and Representative Simon for their leadership on this issue.
▶ 0:33:46The 504 CDC program has long supported small businesses in accessing capital for the development of major fixed assets, ensuring that these businesses have the resources they need to be successful and support thousands of jobs across the country. As part of the 504 CDC program, loans are guaranteed for so-called special use properties like bowling alleys, car washes, and marinas.
▶ 0:34:16Since the special use designation was created in 1996, businesses developing these properties have been required to pay a special use penalty when accessing 504 CDC loans.
▶ 0:34:29The additional equity requirement was put in place by Congress because of the belief that this special used properties will be challenging to repurpose, shrinking the market pool of potential buyers and making them more difficult to sell, thereby posing a higher risk to the SBA loan portfolio if one of these businesses ever face financial hardship and needed to be sold.
▶ 0:34:57However, in almost 30 years since the designation was created and the penalty was put in place, many of these property had been successfully repurposed for alternative uses. More importantly, the chart off rate since the t since that time is substantially similar to standard 504 CDC loans, demonstrating that this loan pose no greater risk than standard loans.
▶ 0:35:26Therefore, it is time to remove the special use penalty and lower the equity barrier this property face when accessing capital through the 504 CDC program. This bill reduces the minimum equity requirement for special use property to at least 10% in line with the requirement for standard loans under the 504 CDC program.
▶ 0:35:50It also maintains the discretionary authority to require higher equity requirements of the battleware if the CDC so chooses. I want to thank my Republican colleagues for their collaboration on HR5788, which we are also discussing that increases the SBA reporting requirements to Congress for 504 CDC loans, including for special use property so that we can continue to
▶ 0:36:20monitor the changes we're making in this bill in the future. This bill is supported by the National Association of Development Companies. I urge my colleagues to support the bill and I yield back.
▶ 0:36:34Gentle lady yields back. And does anyone wish to offer an amendment?
▶ 0:36:40Okay, seeing none, the question now occurs on favorably reporting HR5763. All those in favor say I. All those opposed say no. The opinion of the chair, the eyes have it. HR5763 is agreed to.
▶ 0:36:54Mr. Chairman, I'd like to request a recorded vote. Um there's a recorded vote has been requested. A roll call vote is ordered. Persuant committee rule 13 and House rule 11. Further proceedings on this bill are postponed. The committee now moves consideration of uh the 504 program risk oversight act introduced by representative Tran and Patronis. The clerk will report the A bill
▶ 0:37:25objection. HR5788 is considered as read and open for amendment. I now recognize the bill's sponsor, Representative Tran from the great state of California for a statement on the bill.
▶ 0:37:36Thank you, Mr. Chairman, for the opportunity to discuss an essential piece of legislation today. The 504 Program Risk Oversight Act. The 504 program risk oversight act would require the SBA to conduct an annual risk assessment of the 504 CDC program and provide Congress with a report containing the results by December 1st each year. The 504 loan program is SBA's premier economic development program providing lowcost fixed rate capital to help small businesses expand.
▶ 0:38:05Since it since its inception in 1986, the program has provided approximately 400 billion in total project finances financing and created over 3.3 million jobs in California. That translates to 95 billion in total capital and the creation of over 715,000 goodaying jobs. The SBA's 504 program is central to long-term business growth and competitiveness for many small business owners.
▶ 0:38:34However, as small business grow and take on larger and more complex project projects, I have heard from my constituents that the limitation in SBA's 504 financing imposes unnecessary constraints on the organic and profitable growth of their business. Many times I've heard that a limitation they faced was when their financing needs were more than what the SBA could lend due to the loan limits.
▶ 0:38:56That's why I support increasing the maximum loan size for 504 to allow the program to have a bigger impact and adjust the loan limits which have not been changed since How however it is also important to ensure program performance remains a top priority and the 504 program stays healthy for its long-term availability to small businesses. Currently, SBA is not required to conduct an annual portfolio risk analysis of the 504 program and provide Congress with a detailed report containing the results.
▶ 0:39:26This bipartisan bill will address the problem and help more Americans launch and grow small businesses by improving oversight and risk assessment of the 504 program. Transparent data is the cornerstone of a productive partnership between the SBA, Congress, and the industry. and the work we do to modern modernize the 504 loan limit for all borrowers while keeping the program healthy.
▶ 0:39:49I am proud to lead this bill and I want to thank my colleague, Representative Jimmy Petronis, for his partnership in co-leading this important piece of legislation with me. I urge my colleagues to support this important bipartisan bill. Thank you and I yield
▶ 0:40:03Gentleman yields back. I now recognize Representative Petronis from the great state of Florida for a statement on the
▶ 0:40:09Thank you, Mr. Chairman. I appreciate my colleague, Congressman Tran's work on this good bill. I'm uh pleased also to be a original co-sponsor on this legislation. Transparency and responsible government is key to an effective government. This bill is an example of just that. As a former CFO of the state of Florida, I was responsible for overseeing the state's invest investments, especially in the retirement space. We must ensure that the taxpayers's dollars are being used effectively and not set on fire.
▶ 0:40:36This bill will make sure that there's always risk analysis being done on 504 program activities. Thank you, Mr. Chairman. I yield back. Gentleman yields back. Gentleman yields back. Are there any of the members who wish to be recognized for a statement on the bill? Seeing none, I'd like to recognize the ranking member uh to speak on the bill.
▶ 0:41:00Thank you, Mr. Chairman. Let me start off by thanking representatives Tran and Patronis for working together on a bipartisan basis to introduce this important bill. Information and transparency are central to ensuring the proper operation and functioning of the SBA lending programs including the 504 CDC program. And this bill will help our committee carry out our oversight responsibility.
▶ 0:41:31For months, I have investigated and warned about the rising default levels in the SBA other main lending program, the flagship 7A program. Federal law requires the SBA Office of Credit Risk Management to conduct an annual portfolio risk analysis of the 7A program and provide Congress with a detailed report of the results.
▶ 0:41:58It is this report that has helped our committee examine the 7A programs rising defaults and tailor our actions accordingly. The report provides detailed information on the program's overall risk, risk sect set forth by industry concentration, risk created by individual lenders, enforcement actions that have been taken and other important data points.
▶ 0:42:26Unfortunately, a similar statutory requirement does not exist for the 504 CDC program. HR5788 will fix that by compelling the SBA to conduct an annual risk analysis of the 504 CDC program and provide Congress with the results tailored to meet the 504 CDC program's unique features.
▶ 0:42:52This bill will require the SBA to provide many of the same data points on the 504 CDC program as it's currently providing us on the 78 program. Let me be clear, loan defaults do not currently seem to be a concern in the 504 CDC program. Publicly available information demonstrate responsible operation of the program.
▶ 0:43:21But this bill give us information we need to monitor the program now and in the future so it zero subsidy requirement is maintained. Finally, HR5788 will require that the 504 CDC risk report also be posted on the SBA SBA website and made available to the public.
▶ 0:43:47HR5788 is supported by the National Association of Development Companies. Thank you, Mr. Chairman. I yield back.
▶ 0:43:56Gentle lady gentle lady yields back. And thank you. and I now recognize myself to speak in support of this legislation. The SBA's 504 loan program plays a crucial role in financing fixed assets for small businesses through community-based partners. While these loans help local small businesses grow, there is a clear lack of reporting on the health and risk within the 504 portfolio.
▶ 0:44:16So, as Americans and policy makers need a clear, timely information on the program to ensure that taxpayer dollars are protected, we need to know that the program is sustainable and effective for small businesses nationwide. The 504 program risk oversight act ensures that Congress can carry out its constitutional duty of oversight by requiring annual data-driven reports in the SBA on the health of the 504 loan program by enhancing transparency and insight.
▶ 0:44:40This legislation will help Congress identify and mitigate risk early strengthening the long-term viability of the 504 loan program and ensuring continued support for American entrepreneurs. So, I urge my colleagues to vote yes on HR5788 and I yield back. Does anyone wish to offer an amendment? Okay, seeing none, the question now on favorably reporting HR5788 to the House. All those in favor say I.
▶ 0:45:08All those opposed say no. In the opinion of the chair, the eyes have it. HR5788 is agreed to.
▶ 0:45:16Mr. Chairman.
▶ 0:45:17Yes. Right.
▶ 0:45:18Like to request a recorded vote.
▶ 0:45:20Okay. We've got a recorded vote has been requested. A roll call vote is ordered and persuant committee rule 13 and household rule 11. Further proceedings on this bill are postponed. Okay. The committee now moves a consideration of HR 3496, Northern Mariana Islands Small Business Access Act, introduced by Delegate King Hines and co-sponsor rep. Representative Conaway and the clerk report the bill.
▶ 0:45:46HR 3496, a bill to amend the small. Without objection, HR 3496 is considered as read and open for amendment. The bill sponsor, Delegate King Hines, has an amendment in the nature of a substitute at the desk. The amendment has been distributed in advance. The clerk will report the amendment.
▶ 0:46:01Amendment in the nature of a substitute to HR4.
▶ 0:46:04Objection. The amendment is considered as read and the substitute will be considered as a base text for the purpose of further amendment. I now recognize the bill sponsor, Delegate King Hines from the great northern Mariana Islands for a statement on the bill and the amendment.
▶ 0:46:19Thank you, Chairman Williams and Ranking Member of Alask for agreeing to include my bill HR 3496, the Northern Mariana Islands Small Business Access Act in today's markup. HR 3496 would include my district, the Northern Mariana Islands in the Small Business Administration's Microloan Program. The microloan program issues loans of $50,000 or less at low interest rates to help small businesses that may be unable to access capital elsewhere grow their businesses and create job or create jobs.
▶ 0:46:48Since the program became operational in 1992, it has issued over 69,000 loans to soling over 900 million and supported over 250,000 American jobs. Despite the program's impressive impact for Americans across the country, the Northern Marana Islands is the only state or territory not explicitly included under the law. This bill would simply add the CNMI to be eligible for the program alongside every other territory.
▶ 0:47:13I thank my co-lead on the bill, Representative Conaway, for steadfast support and Congressman Cisneros for co-sponsoring this legislation as well. Again, my bill simply adds my district to the microloan program that is already available to all other Americans. I urge my colleagues to support this bipartisan common sense no cost bill. Thank you. I yield back.
▶ 0:47:32Gentle lady yields back. I now recognize Representative Conaway from the great state of New Jersey for a statement on the bill and the amendment.
▶ 0:47:40Uh thank you, Mr. Chairman. I would like to echo echo support for HR 3496, the Northern Mar uh Mariana Island Small Business Access Act, along with my colleague, Congressman King Hines, Congresswoman King Hines. As has been said, the Commonwealth of Northern Mariana Island, you know, I don't say that very often. Northern Mariana Islands uh is one of the six territories in the US and despite a status as a territory, the Northern Mariana Islands have been excluded from certain small business programs.
▶ 0:48:10It is important, this is important legislation that would ensure that there are no that there are expanded access to SBA's microloan program to small businesses on the Northern Marana Islands. As you know, access to capital is vital for success and stability of small businesses. The SBA's microloan program is designed to assist women.
▶ 0:48:28Um a lowincome um persons, veterans, minority entrepreneurs, and small business owners, and said loans can be used for a myriad of purposes, including working capital, inventory, supplies, furniture, fixtures, machinery, and equipment. Ensuring that the uh Northern Marana Islands has better access to this important SBA program. It's very important and I urge all of my colleagues to support this important piece of legislation. Thank you, Mr. Chairman. I yield back.
▶ 0:48:55Gentleman yields back. Are there any other members who wish to be recognized for a statement?
▶ 0:48:59Seeing none, I would like to recognize the ranking member to speak on the bill and the amendment.
▶ 0:49:04Thank you, Mr. Chairman. I want to express my support for HR 3496 as amended. I commend Delegate Keen Hines and Dr. Conaway for reintroducing the bill we have worked on for several years now. The Northern Marana Island Small Business Access Act is a straightforward but important bill that expand access to the SBA microloan program to small businesses in the Commonwealth of the Northern Marana Islands.
▶ 0:49:33The program has been hu hugely successful. With that said, small businesses in the northern Mariana Islands face unique challenges as geographic isolation leads to higher costs for goods and services and their economies heavily reliant on tourism which can e and flow with the economy and natural disaster.
▶ 0:49:56Having access to affordable credit gives small businesses the ability to weather the storms and economic uncertainty and fully prepare for the next opportunity. I work to ensure the Commonwealth of the Northern Mariana Island had access to the microloan program as part of a more comprehensive bill to improve the microloan program. Despite passing the House, that bill was not considered in the Senate.
▶ 0:50:23While I would prefer to handle this issue in a more complete review of the program to make much needed improvements, I am willing to set aside those concerns today to ensure that small business owners in CMI have access to the SBA microloan program and I urge my colleagues to support this bipartisan measure. I yield back.
▶ 0:50:47Gentle lady yields back. Uh thank you. I now recognize myself to speak in support of this legislation. The SBA microloan program offers entrepreneurs access to small dollar loans through intermediaries. By statute, the SBA portions microloan program funding to each state and territory except for the Commonwealth of Northern Mariana Islands. Uh this exclusion makes it more challenging for small businesses in the Northern Marana Islands to access capital.
▶ 0:51:13And the Northern Marana Islands Small Business Access Act attends the amends the small business act to include the Northern Mariana Islands in the program's geographic coverage. Expanding microloan eligibility will spark entrepreneurship that strengthens that local economy for all states and territories and further assisting constituents of our colleague Delegate King Hines to access opportunities to grow. I urge my colleagues to vote yes on HR 3496 and I yield back.
▶ 0:51:43Does anyone wish to offer an amendment? Seeing none, the question now occurs on the adoption of the substitute amendment offered HR 3496 by Delegate King Hines. All those in favor say I.
▶ 0:51:56All those opposed say no. In the opinion of the chair, the eyes have it. The amendment in the nature of a substitute HR30 or 3496 is adopted. Okay. Okay. The question is now on favorably uh uh reporting HR 3496 as amended to the house. All those in favor say I. I.
▶ 0:52:16All those opposed say no. In the pain of the chair, the eyes have it and HR 3496 as amended is agreed to.
▶ 0:52:23Mr. Chairman,
▶ 0:52:24for what purposes the uh gentle lady seek recognition?
▶ 0:52:27I'd like to request a recorded vote.
▶ 0:52:30Okay. A recorded vote has been requested. A roll call vote is ordered and persuant to committee 13, rule 13, and house rule 11. Further proceedings on this bill are postponed. The committee now moves to consideration of HR5764 AI for Main Street Act introduced by Representative Alfred and Scolton. The clerk will report the bill. a bill to amend the small business.
▶ 0:52:56Objection. HR5764 is considered as read and open for amendment. The bill sponsor, Representative Alford, has an amendment in the nature of a substitute at the desk. The amendment has been distributed in advance. The clerk will report the amendment.
▶ 0:53:08Amendment in the nature of a substitute to HR.
▶ 0:53:11Without objection, the amendment is considered as read and the substitute will be considered as base text for the purpose of further amendment. I now recognize the bill's sponsor, Representative Alfred from the great state of Missouri for a statement on the bill and the amendment.
▶ 0:53:25Well, thank you, Mr. Chair, and thank you, Ranking Member of Velasquez, for holding this hearing today. It's so good to see everyone on both sides of the aisle. Um, this committee exists in Congress to champion Main Street to ensure that the small businesses that employ about half of all Americans can continue to thrive. As we all know, the AI revolution is not coming. It is already here.
▶ 0:53:51And if any company from Main Street to Wall Street is not they will be left behind. This is why I was proud to introduce the AI for Main Street Act along with Congresswoman Skolton. This bill directs small business development centers to help small businesses evaluate and adopt artificial intelligence by providing guidance, training, and outreach.
▶ 0:54:17It builds on existing efforts like America's SBDC AIU program. I urge all of my colleagues to support this important legislation to ensure that Main Street gets the counseling they need to survive and thrive during the AI era which is not going away anytime soon. And with that, I yield back.
▶ 0:54:40Gentleman yields back. I now recognize Representative Schultton from the great state of Michigan for a statement on the bill and the amendment.
▶ 0:54:46Thank you so much, uh, Mr. Chairman. I've been so proud to partner, uh, with Rep. Alfred to lead the AI for Main Street Act. Uh he said it so well and this committee has recognized the absolute revolutionary power that AI can have for so many of our small business owners. Yet uh far too many don't know how to access its power in a responsible way.
▶ 0:55:12This bill will help small businesses get quality guidance on how to adopt artificial intelligence into their operations. At a time when AI tools are becoming more accessible, but also more complex, small business owners need trusted local resources to help them navigate this new terrain.
▶ 0:55:32We have seen firsthand in our district how cutting edge AI help from uh small business development centers can be a just an absolute gamecher and that is where the AI for Main Street Act comes in. Our bill will direct small business development centers to provide guidance, training and outreach to small business owners so they can evaluate the use of AI for their businesses and implement it according to their unique needs.
▶ 0:56:00SBDC's are already a lifeline for small businesses, places where they turn to for help, practical expertise, and realworld solutions. By equipping these centers with AI focused training, we are meeting small business owners where they are and giving them tools that they can put to work immediately. In our increasingly connected world, AI presents major changes to our economy and our our way of life.
▶ 0:56:24From streamlining bookkeeping to managing inventory to improving customer outreach, AI can help small businesses save time, cut costs, stay competitive, but only if they have the knowledge how to use it effectively. That makes it all the more important that small businesses have the right resources. The AI for Main Street Act gives small businesses, again, the key word is trust. That trusted place to turn as they decide how to use AI to serve their goals.
▶ 0:56:53I urge my colleagues to support this bill and I yield the remainder of my time.
▶ 0:56:58Gentle lady yields back. Are there any other members who wish to be recognized as a statement on the bill?
▶ 0:57:04Seeing none, uh I would like to recognize the ranking member to speak on the bill and the amendment.
▶ 0:57:10Thank you, Mr. Chairman. I am really pleased to support the AI for mainstream act which would allow the small business development centers to assist small business owners on how to evaluate artificial intelligence. I commend Mr. Alfur and Miss Golton for working together on this bipartisan legislation.
▶ 0:57:32Among other things, AI has the potential to boost productivity, enhance customer service, and save costs. But small businesses must learn to use and manage AI tools effectively. If they don't, it can backfire and cause serious problems.
▶ 0:57:52We all heard the story of the Chevy leadership dealership in Watsonville, California that deployed an automated customer service chatbot that was manipulated into offering a Tahu for a dollar and stating the deal is legally binding. As AI advances, so do the inherent risk.
▶ 0:58:15That is why it is important for SBA and its entrepreneurial ecosystem to help small businesses make the most of this And it also makes sense to further empower the national network of SBDC's to guide and train small businesses for the future. I urge my colleagues to vote yes. I yield back my time.
▶ 0:58:41Gentle lady yields back. And thank you. And I now recognize myself to speak in support of this legislation. Evolving artificial intelligence tools are transforming the business world and reshaping how entrepreneurs and small business operate and compete. While larger corporations are already harnessing new technologies, many small businesses are struggling to help uh keep up due to limited resources, lack of training, and concerns about cyber security.
▶ 0:59:05But the AI for Main Street Act addresses this gap by directing the SBA small business development centers to provide training, coaching, and ongoing support for integrating AI responsibility into small business. SBDC's are a crucial public private partnership that operate in every state to assist all small businesses whether they're just starting or out or fully established.
▶ 0:59:27Ensuring that these resource partners can provide uh AI education will give small businesses the proper tools and safeguards to compete in today's economy. As AI becomes an integral driver of productivity and competitiveness across the economy, small businesses must not be left behind. Technology won't wait for small business to catch up and Congress must help bridge that gap to help close the innovation divide. I urge my colleagues to vote yes on HR5764 and I yield back. Does anyone wish to offer an amendment?
▶ 0:59:58Okay, seeing none, the question now occurs in the adoption of the substitute amendment offered to HR5764 by Mr. Alford. All those in favor say I.
▶ 1:00:07All those opposed say no.
▶ 1:00:09The penny the chair of the eyes have it. The amendment in the nature of a substitute to HR5764 is adopted. Uh the uh question is now in favorably reporting HR5764 as amended to the house. All those in favor say I.
▶ 1:00:24I. All those post say no. In the opinion of the chair, the eyes have it and HR5764 as amended is agreed to.
▶ 1:00:31Mr. Chair,
▶ 1:00:32uh, for what purpose does the gentleman seek recognition?
▶ 1:00:35I request a recorded vote, please.
▶ 1:00:37Recorded vote has been requested. A roll call vote is ordered and persuant to committee rule 13 and rule House rule 11. Further proceedings on the bill are The comm the committee now moves to consideration of HR5784, the artificial intelligence wisdom for innovative small enterprises or AI wise act introduced by representatives and downing and the clerk report the bill. a bill to amend the small business.
▶ 1:01:06Without objection, HR5784 is considered as read and open for amendment. I now recognize the bill's sponsor, Representative Scolton from the great state of Michigan for a statement on the
▶ 1:01:16Thank you so much uh Mr. Chairman. you're uh sensing a theme today and I'm so glad that this committee takes uh the inclusion and implementation of AI uh in the small business arena uh seriously. It is absolutely critical. Um as we know artificial intelligence is rapidly shaping industries across the globe, but small businesses who are the backbone of our economy often struggle to keep up with fast-paced technological change.
▶ 1:01:46my uh oops, sorry, hold on. I think I got the wrong. This is the AI for Main Street. Sorry. I was like, that sounds really familiar.
▶ 1:01:56AI wise. We're We're uh
▶ 1:01:58We vote on that.
▶ 1:01:59Yeah, WE CAN VOTE ON THAT ONE NOW, TOO. WE'RE ON AI for Main Street. We're on
▶ 1:02:04We're on AI. Yes. Okay. Sorry. Apologies. This is what when you get all these great AI bills. Um, the AI wise act requires uh the SBA to create AI literacy resources tailored specifically to small businesses through the SBA's e-learning platform. Entrepreneurs and small business owners will be empowered with clear, actionable information on how to leverage AI in their operations.
▶ 1:02:29Whether that's through automating tasks, improving customer service, or making smarter decisions using data. According to the US Census Bureau, nearly one in four businesses do not know whether they will use AI in production within the next six months. They just don't know if it's going to be a part of their business or not. That's untenable in a rapidly evolving technological landscape where small businesses cannot afford to be left behind.
▶ 1:02:57This bill will level the technological playing field for small businesses, providing them the tools they need to thrive in an everchanging global economy. AI isn't just for the tech giants. It's for everyone, especially small businesses.
▶ 1:03:13Whether we're talking about a local bakery, a landscaping, a landscaping company, or a digital startup, AI has the potential to increase productivity, reduce cuce costs, and open up new growth The AI Wise Act gives our small businesses the knowledge they need to embrace AI and remain the top job creators in our country.
▶ 1:03:36I want to express my gratitude to Congressman Downing for joining me in leading this bill and I ask unanimous consent to insert into the record letters of support for the AI wise act from in it and open AI. I urge all of my colleagues to support the AI wise act. The future of our economy depends on helping small businesses harness the power of emerging technologies like AI and this bill will help make that a reality. I yield the remainder of my time.
▶ 1:04:04Without objection, without objection, we'll accept uh your papers. Uh I now recognize Representative Downey from the great state of Montana for a statement on the bill.
▶ 1:04:14Thank you, Mr. Chairman, and uh thank you to my colleague, Representative Scolton for this uh for the work on this bill. You know, over the course of the last several years, we have seen in seen incredible advancements in the development of AI technology. AI capabilities like machine learning, language processing. These will play a critical role in our economy moving forward. You businesses across our country are rapidly incorporating AI to streamline key operations like workforce recruitment, marketing, strategy development.
▶ 1:04:44However, like any emergency emerging technology, businesses with substantial and stable access to capital tend to be better positioned for technology adoption in dealing with its ramifications. Small businesses, on the other hand, including businesses in rural communities like in my home district of central and eastern Montana, often lack the resources and information needed to facilitate technology adoption.
▶ 1:05:09Now, according to a 2025 report from the US Chamber of Commerce, 59% of Montana small businesses have adopted AI into their operations. While this figure is significant, it pales in comparison to the near universal adoption of AI that we've seen with Fortune 500 companies. This is why I'm proud to co-lead HR5784, the AISE act, with my colleague, Representative Sculton.
▶ 1:05:32The AISE act directs SBA to establish educational resources on AI for small businesses through its online learning program. In doing so, this legislation legislation seeks to provide small businesses with the technical and practical knowledge needed in order to best navigate AI adoption. to assemble this information.
▶ 1:05:54This legislation directs the SBA to work in coordination with the National Institute for Standards and Technology, NIS, NIST, as well as an advisory working group of public and private sector partners. The scope of this new AI educational material will include resources for small businesses on how AI models work, best practices for coordinating with thirdparty providers of AI tools, and how businesses can identify tasks that AI can reliably and effectively perform.
▶ 1:06:23I'd like to again thank my colleague, Representative Schultton, for co-leading this legislation with me. The AI wise act will ensure SBA provides small businesses with the information that they will need to most effectively utilize AI to bolster their business. I urge all my colleagues to support this legislation. And Mr. Chair, I yield
▶ 1:06:43Gentleman yields back. Are there any other members who wish to be recognized for a statement on the bill?
▶ 1:06:49Seeing none, I'd like to recognize the ranking member to speak on the bill.
▶ 1:06:53Thank you, Mr. Chairman. I'm pleased to support legislation to create artificial intelligence literacy resources at the SBA and the resource partners. I thank Miss Colton and Mr. Downing and the numerous AI and small business stakeholders for working with me to develop this bill over the last two years.
▶ 1:07:16AI has captured the ma imagination, excitement, and anxiety of Main Street America and Congress since the launch of Chat GPT just two years ago. While AI has the potential to make small businesses more efficient and competitive, it is also has risk associated with its use.
▶ 1:07:39The AI wise act will empower America's small businesses with the skill needed to evaluate and adopt AI in this challenging landscape. It requires the SBA to create an online AI literacy resource for small businesses and allow the resource partners to build upon it with specialized and localized resources to better serve their communities.
▶ 1:08:06As AI our way of life, it is critical to ensure small businesses are not left behind by the larger firms better equipped to adopt the technology. With that, I urge my colleagues to vote yes, and I yield back.
▶ 1:08:23Gentle lady yields back. Uh, thank you. And I now recognize myself to speak in support of this legislation. As we talked about today, nearly half of small businesses are are using the AI in some form and more are exploring ways they could make their businesses more efficient. As AI adoption accelerates, it's critical that small businesses have the tools and knowledge to stay competitive and thrive in the free market.
▶ 1:08:45The AI Wise Act directs the SBA to establish uh educational resources and online learning tools to help small businesses understand the benefits and risk of uh integrating AI into their operations. This bill brings together the SBA, the National Institute of Standards and Technology, and AI leaders to leverage existing AI resources, and develop educational tools that don't just focus on the potential risks.
▶ 1:09:10It includes information about how AI could enhance operations, customer service, productivity across Main Street's businesses. The AI wise act puts the SBA at the forefront of streamlining information directly for the many small businesses that don't know where to access materials they need to fully scale their businesses while leveraging AI. I urge my colleagues to vote yes on and I yield back. Now, does anyone wish to offer an amendment?
▶ 1:09:40Uh seeing none, the uh question is now on favorably reporting HR 5784 to the House. All those in favor say I.
▶ 1:09:47I. All those post say no. The opinion of the chair, the eyes have it. HR5784 is agreed to.
▶ 1:09:58Mr. Chair,
▶ 1:09:59gentleman's recognized.
▶ 1:10:01I requested vote.
▶ 1:10:04Gentlemen request recorded vote has been requested. A roll call vote is ordered persuant to committee rule 13 and house rule 11. Further proceedings on the bill are postponed. The committee now moves consideration of HR5778, the improving SBA engagement on employee ownership act introduced by represent Macyver and Breznahand and ranking member Velasquez. The clerk will report the bill. a bill to direct the administrator.
▶ 1:10:32objection, HR5778 is considered as read and open for amendment. I now recognize the bill sponsor, Representative Mccyver from the great state of New Jersey for a statement on the bill. Thank you uh so much chairman and thank you to our ranking member for holding this mark up today. I would like to speak in strong support of my bill the improving SBA engagement on employee ownership act.
▶ 1:10:58A bipartisan bill that I am proud to lead with my colleague, Congressman Bren Bren Brena
▶ 1:11:05Brea Han. There we go. Sorry for butchering that. um of Pennsylvania and ranking member of Alasquez of New York. Employee ownership is one of the most powerful tools we have to help working people build real wealth and strengthen local economies.
▶ 1:11:23When employees become owners, whether through employee stock ownership plans or cooperatives, they share in the profits, have a voice in decision-making, and gain direct stake in the success of the business. These are concrete pathways for help for everyday people to obtain financial security and stable jobs and to increase community investment. We've seen it through data and through real world stories. Programs like this help our communities and economy.
▶ 1:11:52Employee ownership has made a difference for people like Alilio in my district at the Urban Agriculture Cooperative in Newark, New Jersey. The Urban Agriculture Cooperative operates a food hub distributing healthy New Jersey products through farmers markets and wholesale. Most recently, they provided highquality local grown produce to families in need during the SNAP crisis.
▶ 1:12:16As a cooperative, like those like those my bill would further support, they help employees build retirement savings and keep businesses rooted in the neighborhoods they serve. Employee owners like Amelio give so much to their workplace and with this model they get something positive in return. Yet far yet for far too long the Small Business Administration has not met its obligation to support these models.
▶ 1:12:44Despite the proven benefits of ESOPs and cooperatives, SBA lending programs, especially the flagship 7A program, have reached only a tiny fraction of employeeowned businesses. In fact, over the last several years, the SBA approved just five 7A loans for SOPs or EESOPs and fewer than 100 for cooperatives, serving only a silver of the thousands of employees, a sliver, excuse me, serving only a sliver
▶ 1:13:14of the thousands of employeeowned businesses operating nationwide. That is not because the models don't work. It is because the federal government has not kept up with the growing demand of broad-based ownership. My bill changes that. The improving SBA engagement on employee ownership act ensures that the SBA finally does its job to support employeeowned businesses.
▶ 1:13:37It requires the agency to show up consistently at and at the highest levels in federal discussions and about employee ownership and cooperative development. It expands SBA outreach, especially through the SBIC program, so lenders, investors, and entrepreneurs understand how to use SBA tools to finance transitions to employee ownership.
▶ 1:14:01And it d and it directs the SBA to finally start up the start up the small business employee ownership and cooperatives prom promotion program. I must need another cup of coffee. Which Congress required six years ago, but has yet to be implemented. These are practical, common sense steps that will help real people. The bluecollar worker at a manufacturing plant trying to buy the business before it closes.
▶ 1:14:27The single mother working at a home care agency who wants to keep serving families in her community. Or the young entrepreneur building a cooperative that offers good jobs and share prosperity for their neighbors. This bill helps them access capital, receiving technical assistance, and navigate the federal programs that exist to support them. Employee ownership is critical to worker dignity and shared success.
▶ 1:14:51It is about making sure workers are treated as partners, not just laborers, and building an economy that rewards hard work and not just wealth. I urge my colleagues to support this bipartisan effort by improving SBA's engagement with employeeowned businesses and cooperatives. We are protecting good jobs, ensuring working people have a fair shot at wealth. This is how we build a more inclusive economy for all. With that, chairman, I yield back.
▶ 1:15:17Gentle lady yields back. I now recognize Representative Breahan from the great state of Pennsylvania for a statement on the bill.
▶ 1:15:24Thank you, Mr. Chairman. So great to be back and thank you to my colleague Rep. Macyver for leading this important piece of legislation. ESOPS are a proven asset to help workers become successful partners in their businesses. When employees share in ownership, they share an achievement, creating a workplace that promotes personal investment and a group cooperation to grow a business successfully. That's why I'm proud to co-lead the improving SBA engagement on employee ownership act.
▶ 1:15:52This legislation will strengthen the Small Business Administration's ability to work with cooperative and employeeowned businesses to enrich local economies and provide business owners with critical assistance to preserve jobs and promote broad-based ownership. I'm looking forward to seeing this bill passed through committee so we can continue to support the small businesses and strengthen their impact on our community's economic stability. And with that, I yield back.
▶ 1:16:15Gentleman yields back. Are there any other members who wish to be recognized for a statement on the bill? Seeing none, I would like to recognize the ranking member to speak on the bill.
▶ 1:16:25Thank you, Mr. Chairman. I support and I want to thank Representatives Mccyber and Breahan for their leadership on this issue. Employeeowned businesses are a valuable model that empowers workers and create strong American businesses. Employeeowned businesses like ESOPS and other common control enterprises like co-ops play a significant role in the US economy.
▶ 1:16:55As of 2022, there were more than 5,600500 ESOPs holding more than 1.8 8 trillion in assets and approximately 65,000 co-ops generating more than 324 billion dollar in revenue.
▶ 1:17:18These businesses need the backing of the products and technical training that the SBA provides in order to reach their full potential. These businesses have have had only limited access to the SBA products including the flagship 7A loan program. Technical support for employeeowned businesses has also been limited.
▶ 1:17:43The SBA has acknowledged this shortcomings and during the Biden administration began to engage with ESOPs and co-ops more directly. But more needs to be done. This bill will build on the progress made by providing a framework for increasing engagement between the SBA and other executive branch agencies currently developing policies and regulations related to ESOPS and POBOPs.
▶ 1:18:12I want to thank Representative Mckyber and Breahan for working on this bipartisan legislation and I encourage my colleagues to support the bill. I yield back. Gentle lady yields back and thank you. And I now recognize myself to speak in support of this legislation. For some entrepreneurs, employee ownership and cooperative business models can offer opportunities to empower their employees, ensure the success of the company.
▶ 1:18:37Uh the improving SBA engagement on employee ownership act requires the SBA to finally implement requirements passed in the fiscal year 2019 NDAA to offer information and technical assistance on employee ownership. It also gives the SBA a seat at the table where other agencies are discussing these types of business models. I urge my colleagues to vote yes on HR5778 and I yield back. Uh does anyone wish to offer an amendment?
▶ 1:19:06Seeing none, the uh question is now on favorably reporting HR5778 to the house. All those in favor say I.
▶ 1:19:12All those opposed say no. In the opinion of the chair, the eyes have it. HR5778 is agreed to.
▶ 1:19:18Mr. Chairman, I ask for a recorded vote.
▶ 1:19:20Okay. Gentleman asked for recorded votes been requested. A roll call vote is ordered. A persuant committee rule 13 and House rule 11. Further proceedings on the bill are postponed. The committee now moves consideration of HR4305 destroying unnecessary misaligned and prohibitive red tape act of 2025 or the dump red tape act introduced by the representative weed. The clerk report the bill. HR4305, a bill to direct the chief.
▶ 1:19:50Without objection, HR4305 is considered as read and open for amendment. The bill sponsor, Representative Weed, has an amendment in the nature of a substitute at the desk. The amendment has been distributed in advance. The clerk will report the amendment.
▶ 1:20:02Amendment in the nature of a substitute to HR.
▶ 1:20:04Without objection, the amendment is considered as read and the substitute will be considered and base text for the purpose of further amendment. I now recognize the bill sponsor, Representative Weed from the great state of Wisconsin for a statement on the bill and the amendment.
▶ 1:20:18Thank you, Mr. Chairman. After suffering through four years of regulatory onslaught by the Biden administration, totaling nearly 1.8 trillion in new costs and requiring an additional 360 million hours to comply with these new regulations, small businesses are desperate for regulatory relief. In response, earlier this year, the Small Business Administration created the Red Tape Hotline under its Office of Advocacy.
▶ 1:20:45This hotline gives small businesses a seat at the table to highlight the prohibitive red tape regulations from across federal agencies that hurt their ability to grow and compete. My bill HR4305, the destroying unnecessary, misaligned, and prohibitive red tape act, codifies the SBA's red tape hotline.
▶ 1:21:07It also requires annual reports to Congress from the Office of Advocacy detailing the most burdensome regulations for small business owners and what the steps the SBA has taken to advocate on their behalf. This bill is a common sense way to gather input directly from the people most harmed by overregulation. I urge all of my colleagues to support this important piece of legislation and stand with America's small businesses. And with that, I yield back.
▶ 1:21:37Gentleman yields back. Are there any other members who wish to be recognized for a statement on the bill?
▶ 1:21:43Mr. Chairman,
▶ 1:21:45Representative Muer, Pennsylvania
▶ 1:21:48Mayor be recognized. Thank you. Uh, thank you, Mr. Chairman. Uh, HR4305, the dump red tape act. I commend my colleague, Mr. Weed, for introducing. I do think, however, should have been named the dump blue tape act. Anyway, uh, we would requires the SBA office of advocacy to codify the red tape hotline and submit an annual report to Congress and administrator Leler.
▶ 1:22:12This will provide small businesses with an outlet to report arbitrary and unnecessary regulations as stated directly to Congress and the public. Small businesses are the backbone of the US economy, generating 44% of economic activity and employing over 60% of the workforce. Yet, under the Biden administration, small business were forced to navigate a complex regulatory landscape, resulting in $1.7 trillion dollars in new regulatory costs and over 300 million hours of paperwork.
▶ 1:22:39These burdens ultimately fell on small businesses uh limiting their ability to innovate, grow, and compete. So, the red tape hotline demonstrates that the Trump administration and Republicans want to hear directly from small businesses about the regulatory challenge they are facing. Unlike the Biden administration, we will continue delivering for small businesses by increasing transparency, promoting progrowth policies, and streamlining communications. I owe I urge my colleagues to support the bill, and I yield back.
▶ 1:23:05Gentlemen yields back. Are there any other members who wish to be recognized for a statement on the bill? Seeing none, I'd like to recognize the ranking member to speak on the bill and the amendment.
▶ 1:23:20Thank you, Mr. Chairman. I want to express my opposition to HR 435. While this bill is less objectionable than other anti-regulatory bills we have considered this Congress, it is simply not necessary to begin with. A deregulatory hotline already exists on regulatories on regulations.gov.
▶ 1:23:48Establishing another create another establishing another creates duplication and drains SBA resources. More concerning the proposal hasn't been vetted properly. In their first 100 day report, advocacy indicated there were 96 small business submissions.
▶ 1:24:11Yet, despite repeated requests for more detailed information, advocacy has failed to provide any specific information about this request. We have no way of knowing if the submissions are related to rules. They could have easily been about tariffs or unpaid invoices to contractors. That is why I cannot support it.
▶ 1:24:36We have no information and the bill is more slogan than substant ignoring other federal actions that are harming small businesses. We have heard testimony that small businesses are not talking about regulations. It ranks near the bottom of their list of concerns. Inflation, tariffs, and finding good employees are some of the top challenges facing small businesses.
▶ 1:25:04Take a walk down Main Street and you will hear the same concern from small business owners up and down the block. The uncertainty and rising costs tied to the Trump tariffs are crushing their small businesses, plain and simple. And to the best of my knowledge, advocacy has not weighed in with the administration, which raises concerns over their lack of independence from the administration.
▶ 1:25:34I recall the many times the administrator from the Biden administration came here to testify and um you know she was castigated asking her if she talked to um Joe Biden the president about the impact of uh taxes on them.
▶ 1:25:55Well, now my question is is the administrator is discussing with Donald Trump the impact that tariffs is having on small businesses or healthc care uh subsidy uh expirations. How will that impact small businesses?
▶ 1:26:15Instead of looking for ways to address inflation, tariffs, and labor shortages, this bill is narrowly drafted to focus on rolling back rules that protect our health, environment, and safety. Turning to the specifics, the bill lacks adequate reporting mechanisms to identify who is making the submissions, leaving it vulnerable to abuse.
▶ 1:26:40Advocacy has come under fire for doing the beating of big businesses in the past and there are no reporting requirement in this bill to distinguish between a small business, trade association or law firm and the bill focuses only on the cost of regulations not the benefits which is only one half of the equation.
▶ 1:27:03We need to look at both sides of the ledger and by doing so we will see that the benefits of the rule greatly outweigh the costs. For this reason I plan to oppose the bill. With that said, we can get the specific information from advocacy as to what small businesses are actually submitting on the hotline and a better understanding of the mechan mechanics of the hotline to ensure independence between SBA and advocacy.
▶ 1:27:32I may be then willing to work with you on this bill. I yield back.
▶ 1:27:39Gentle lady yields back. Are there any other members who wish to be recognized for a statement on the bill?
▶ 1:27:43Mr. Chair
▶ 1:27:46Thank you very much. I uh I support this bill. I think the intentions are pure and uh whenever we've had witnesses in the uh in this committee, we've asked h how many uh of you want more bureaucrat uh issues, more regulations, more rules, more redundancy, more impact on small businesses. Every one of them said, "The federal government, stay off our backs. Get out of our pockets.
▶ 1:28:16Let us live the American dream and work in our communities." Mr. Weed understands that in his town of Wisconsin. I understand that. Northern Minnesota. This bill is a very good bill. It's a good start to make sure that they have the opportunity to succeed. And the the gentle lady, the the ranker talks about uh uh you know asking small businesses beforehand.
▶ 1:28:44Well, I say the unaffordable care act, you never ask small businesses. They're damaged because of that. Mr. Weed, this is a very good piece of legislation and I support it. I commend you for bringing it up. This is what the small business is for. To make sure that the men and women across this nation who risk everything to succeed. This is one of those pieces of legislation that I'm in favor of and I yield back.
▶ 1:29:15Gentleman yields back. I now recognize myself to speak in support of this legislation. HR4305, the dump red tape act codifies the red tape hotline launched by the SBA officer advocacy on March 10th, 2025.
▶ 1:29:28The hotline gives small businesses a direct line to SBA advocacy to report burdensome regulations that are holding them back and further enhances our ability to combat job crushing red tape of a crime the office of advocacy to bring this feedback straight to Congress and by empowering small business to speak up to federal agencies accountable. This bill will strengthen our commitment to progrowth pro- innovation economy. It is necessary to get the government out of the way so that our small business owners can do what they do best.
▶ 1:29:56I urge my colleagues to vote yes on HR4305 and I yield back. Now, does anyone wish to uh offer an
▶ 1:30:05Mr. Chairman,
▶ 1:30:06so moved. Recognized.
▶ 1:30:08I have an amendment at the desk.
▶ 1:30:10Okay, there's an amendment at the desk. We'll briefly pause while staff distributes the amendment.
▶ 1:31:07Okay, the clerk will report the
▶ 1:31:10Amendment to the amendment in the nature of a substitute to HR43.
▶ 1:31:14Without objection, the amendment is considered as read. And I now recognize the Representative Cisneros for 5 minutes on the amendment.
▶ 1:31:21Thank you, Mr. Chairman, and I want to thank you and the ranking member on the great bipartisan work you've done today on so many of these uh amendments. Um, my amendment would build on the ability of small businesses and entities to not only report on potentially erroneous and burdenome regulations, but to report rules that help safeguard small business interests and competition.
▶ 1:31:44My amendment also expands the hotline to better listen to small business concerns on other government actions that impact them, such as tariffs, healthcare, and immigration What I hear the most from small businesses is that they need relief from tariffs and the uncertainty around them. If we truly want to support small businesses, we need to provide them with an avenue to express their grievances and truly hear what they need and to act on it.
▶ 1:32:11Some members of this committee plug their ears and close their eyes when tariffs are mentioned, but that's what small businesses are overwhelmingly sharing as their main concern right now. If the Office of Advocacy won't advocate for small businesses regarding tariffs, who else in our federal government will? Where can small businesses share their concerns? The Office of Advocacy is meant to advocate for small businesses.
▶ 1:32:38Assertions about their limitations are a fabrication of this administration and a byproduct of project 2025. If you truly believe that advocacy advocacy cannot advocate against policies like tariffs that negatively impact small businesses, then I am open to working with you to expand the mandate to ensure small businesses have a voice in government that advances their views and concerns before Congress, the White House, across federal agencies and the courts as
▶ 1:33:09The unfortunate thing about this hotline is that we have not had anyone from the Office of Advocacy come to publicly testify before this committee, much less share what small businesses have raised so far. So, my amendment would require more transparency from the advocacy through the information it needs to report to Congress.
▶ 1:33:31My amendment would do this by ensuring advocacy provides Congress information on all the government actions small businesses are raising, the recommendations for the actions to minimize their those burdens, a summary of actions taken by advocacy, and the type of entity that is making those submissions. We all want to unleash the innovations and level the playing field for our small businesses.
▶ 1:33:56I hope my colleagues across the aisle will join me in supporting my amendment to ensure that our small businesses truly have their voices heard throughout the federal government. And I yield Gentleman yields back. Is there further debate on the amendment?
▶ 1:34:20Mr. Weed, you're recognized. I noticed you uh even want to change the name of our bill from Dump Red Tape Act to cut the burden, keep the benefits. Translation: Keep the red tape. But here's the thing. Small businesses don't benefit from more bureaucracy. They benefit when we actually cut the red tape holding them back, which is exactly what my bill does.
▶ 1:34:47This amendment tries to capture all federal actions, including presidential actions, but that's far beyond the scope of the SBA statutory mission. The SBA's office of advocacy was created to be the voice of small businesses in the regulatory process, not a catch-all for every executive or presidential action. If you expand the scope of the red tape hotline, you will drown out legitimate small business concerns and a sea of unrelated political disputes.
▶ 1:35:17Ironically, this amendment adds layers of bureaucracy by requiring SBA to track and report on presidential action, something outside its expertise. That means more paperwork, more delays, and fewer resources devoted to actually helping small businesses. Our bill is about streamlining, not expanding government paperwork. I urge my colleagues to vote no on this amendment.
▶ 1:35:43O'Neal's back. Is there any further debate on the amendment?
▶ 1:35:48Okay. The ranking member,
▶ 1:35:50a chairman.
▶ 1:35:51Yes, ma'am.
▶ 1:35:52I would like to yield some time to my
▶ 1:35:57Mrs. McCyver.
▶ 1:35:58And Miss McCyver, you're recognized. Thank you, Miss Macccyver, for for yielding me my time this this time. Um, just to to answer back, you know, to my colleague over there. Um, this bill has no way of expanding red tape at all. It actually simply, I think, um, helps make your uh, your bill better by requiring
▶ 1:36:21Yeah. the small business association, the office of advocacy to actually come to us and report and share what they are hearing from these small businesses which only helps us be more impactful in helping support their small businesses.
▶ 1:36:36Um really that is simply all that we are asking and we are asking that they you know kind of broaden their scope as to what you know as to what the small businesses can report right whether it's tariffs healthcare other issues you know collecting this information and then reporting what this information is what what are they gathering and bringing that to us. Uh that in no way increases the amount of red tape or anything that we're asking for.
▶ 1:37:03We're just asking them to report on what is being reported to them and sharing that information with us which helps us better help the small businesses. And with that, I yield back. Gentleman yields back. Is there any further debate on the amendment? Okay, seeing none, the ranking member is now recognized to speak on the
▶ 1:37:28Thank you, Mr. Chairman. I lend my support to the amendment being offered by my colleague, Mr. Cisnerero. The amendment will make a number of improvements to the underlying bill. First, it strengthens the legislative text by refining the definitions and scope to better align with advocacy's role and the requirements set forth in the regulatory flexibility act.
▶ 1:37:56The gentleman said that um that this amendment is out of the scope of That is not true. So let me read the statute. The office of advocacy should also perform the following duties on a continuing basis.
▶ 1:38:16serve as a local point for the received of complaints, criticism, and suggestions concerning the policies and activities of the including the current administration and any other federal agency which affects small businesses.
▶ 1:38:38Second, the amendment allows small entities to weigh in on executive orders and other actions being taken by the administration and more importantly requires advocacy to report on the actions taken.
▶ 1:38:55This provision is particularly critical now as the Trump tariffs are generating widespread confusion and uncertainty and inflicting honorous burden on small businesses. You you don't want to talk about tariffs and the impact that is having on small businesses. You want to talk about regulations.
▶ 1:39:18But when you go and walk down the street and talk to small businesses, small farmers, they are all raising the issue of the impact of tariffs in their businesses. Surprisingly or maybe not surprisingly, the office of advocacy has been eerily silent on this topic as well as this committee.
▶ 1:39:45Finally, the amendment will strengthen the reporting requirements and rename the bill to the cut the burden keep the benefits act. Advocacy will be required to report on the benefits of the rules which must always outweigh the costs. Mr. Cisnerero is offering a common sense amendment. I urge all my colleagues to support this
▶ 1:40:12Gentle lady yields back. Uh, I now recognize myself to speak on the amendment. Uh, after only 50 days voting the hotline earlier this year, the SBA advocacy received 96 red tape hotline inquiries from small businesses across the country. Small businesses have been taking advantage of the hotline and Congress needs to ensure stability by codifying the hotline.
▶ 1:40:33We need to focus on how we can provide Main Street with the best avenues to reach regulatory relief and that is through original amendment through the original amendment and the nature of a substitute provided by representative weed. I urge my colleagues to vote no on this
▶ 1:40:49Vote no.
▶ 1:40:50Vote no on the amendment on this
▶ 1:40:53Mr. Chair,
▶ 1:40:54yes ma'am. Um you know you said just now that um there has been 96 submissions since our side has not been given the opportunity to look at those submissions. Have you seen those submissions? Are they related to uh
▶ 1:41:15We can I mean what uh we can we can find out. I have not seen them know.
▶ 1:41:23Okay. I rest my case.
▶ 1:41:25All right. The question now occurs on the amendment offered by representative Cisneros. All those in favor say I.
▶ 1:41:32All those post say no.
▶ 1:41:34In the opinion of the chair, the nose have it.
▶ 1:41:37Mr. Chairman, I ask for a recorded vote.
▶ 1:41:40Recorded vote has been uh requested. Uh and does a and roll call vote is ordered. So further proceedings on the amendment are postponed. Does anyone wish to offer an amendment?
▶ 1:41:56Okay, there's amendment.
▶ 1:41:58Yes. Yes, Mr. Chair. Sorry. I have a I have an amendment at the desk.
▶ 1:42:01Oh, so moved. There's amendment at the desk. We'll briefly pause while staff distributes the amendment.
▶ 1:42:39Okay. The clerk will report the
▶ 1:42:42Amendment to the amendment in the nature of a substitute to HR4305.
▶ 1:42:46Without objection, the amendment is considered as read. and I now recognize Representative Schultton for 5 minutes on the amendment.
▶ 1:42:53Thank you, Mr. Chair. One of the best parts of the Small Business Committee is how often Democrats and Republicans can come together to solve real problems facing Main Street. Small business owners don't cut corners to get results, and most of the time, neither do members of this committee. Unfortunately, with the Dump Red Tape Act, committee Republicans have rushed a flawed bill to solve a problem we could be addressing on a bipartisan basis.
▶ 1:43:23Small businesses are the backbone of our economy. It's been said several times today. If there is no greater bedrock in this committee, it is that. And we all agree that they need support in navigating the complex web of challenges that they face every day. Maintaining a hotline that will help small business owners report some of their most significant hurdles is a good idea.
▶ 1:43:47It's already in practice and something that Democrats and Republicans can continue to do in a bipartisan fashion. The problem with today's bill is that committee Republicans are trying to codify a hotline where it seems that anyone, small business or not, can register a complaint. And that's because they get reported to Congress anonymously and the complaint has to be about a specific regulation.
▶ 1:44:15So the the real problem is individuals uh from lobbying firms, attorneys representing major businesses can register complaints here anonymously under under the guise of being a small large businesses themselves can come here and register these complaints anonymously. Is this really about helping small businesses or is this a suggestion box for billionaires?
▶ 1:44:45If we're going to spend taxpayer money on running this hotline, it is our job to make that hotline help real small businesses with real challenges. The Dump Red Tape Act needs significant changes to meet that bar. And today I'm offering an amendment to get us one step closer to legislation that is worthy of the small businesses in our districts. My amendment addresses a concern I hear from so many business owners in West Michigan.
▶ 1:45:14Running a business is challenging and doing so in unpredictable econ in an unpredictable economic landscape is even more difficult. President Trump promised to lower prices starting on day one, but instead he has implemented a series of tariff tariffs that have created chaos and real costs for entrepreneurs as the cost of materials have jumped across the board. Small businesses have borne the brunt of these policies.
▶ 1:45:45I know my Republican colleagues have heard it, too. As currently written, the hotline under the Dump Red Tape Act permits submissions on burdensome rules and regulations, but it does not allow for submissions on executive actions like tariffs. My amendment to the Dump Red Tape Act will allow small businesses to m submit concerns to the hotline about executive orders and proclamations relating to tariffs. We should not be afraid to receive this feedback.
▶ 1:46:15We should not be limiting the uses of the hotline, especially when tariffs remain one of the biggest challenges small business owners deal with on a daily basis. The Trump administration has already set up a hotline that has received 96 submissions. Unfortunately, we do not know what these submissions are about. As the ranking member pointed out, they could very well be about tariffs, rules, or non-payment of government contractors, not just burdensome regulations.
▶ 1:46:42This committee and the people that we represent deserve to know what those submissions are about. If we're going to pass legislation to make this hotline permanent, we need to ensure that it can receive submissions accounting for all of the very real challenges of small business ownership. My amendment would help to do just that. I urge my colleagues to support this amendment. We want to make this hotline work and be a real tool for small businesses to connect and make real change.
▶ 1:47:12I yield back the remainder of my time.
▶ 1:47:15Gentle lady yields back. And is there further debate on the amendment?
▶ 1:47:21Uh, Representative Weed, your note. As a former small business owner for my entire lifetime up to this point, the I would say the purpose of this bill is to give our hardworking small businesses a voice in in u you know exposing overbearing regulations that that hurt that hurt our small businesses from growing. Tariffs are a matter of national trade and foreign policy overseen by Congress and the administration, not the SBA.
▶ 1:47:51Tariffs right now, they're used to protect American industries, enforce fair trade, and respond to global imbalances in trade. They're not red tape. They don't impose compliance paperwork or permitting delays that continue to hurt small businesses, including presidential tariff actions that would turn the hotline into a political complaint desk about trade policy. That undermines its credibility as a neutral, businessfocused tool.
▶ 1:48:18Congress already has oversight mechanisms for tariffs and trade policy. Our bill avoids duplication by keeping the hotline focused on regulations. If every tariff proclamation is subject to hotline review, it signals to foreign competitors that US trade policy is fragmented and negotiable that weakens America's hand in trade negotiations and could harm the very small businesses the amendment claims to protect. I urge my colleagues to vote no on this amendment.
▶ 1:48:49Gentleman yields back. Is there further debate on the amendment?
▶ 1:48:53Mr. Chairman,
▶ 1:48:54Mr. McGarvey.
▶ 1:48:55Mr. McGarvey is recognized.
▶ 1:48:57Thank you, Mr. Chairman. I yield my time to uh Congresswoman Scoldton.
▶ 1:49:00Mr. Chairman, most small business owners don't necessarily know the difference between a regulation, uh, a point of law or the the tariffs that are harming their small businesses, but they sure know what is impacting their bottom line. This committee should not be afraid to receive feedback and and further to to know what is included in those 96 complaints that have already been received.
▶ 1:49:26This is a common sense amendment that would open this up for small business owners to be able to have the freedom to share with this committee how we can best help them. I yield back.
▶ 1:49:38Is there any further debate on the
▶ 1:49:40Mr. Chairman, Mr. Chairman,
▶ 1:49:42Mr. Cisneros.
▶ 1:49:43Mr. Cisneros is recognized.
▶ 1:49:45Thank you, Mr. Chairman. Look, I just want to address the issue. We do need the one thing that I hear from my small businesses in my district is just give us stability. I need stability. But when we have a president who makes a whim on a tariff and raises them for Canada because he didn't like a commercial that he saw during the World Series, uh that's no stability there, right?
▶ 1:50:10that is not what our small businesses are asking for and they need to be able to kind of make that complaint and bring it forward and that is something the the office of advocacy should be reporting to us in Congress so that we can help address these issues. Uh but with that we just want to make this bill better.
▶ 1:50:28give the small businesses the opportunity to report what they are hearing and have the the SBA come to us and tell us what they are hearing which is obviously which is not happening now with the way that the way this is working now with that I yield
▶ 1:50:45yields back is there further debate on the amendment
▶ 1:50:53okay the ranking member is now recognized to speak on the amendment Thank you, Mr. Chairman, and I lend my support to the amendment offered by my colleague, Miss Colton. The amendment would allow small businesses to submit concerns about tariffs and require advocacy to report on its action to limit the burden. The office of advoc advocacy is the voice of small businesses.
▶ 1:51:22is not limited only to uh complaints about regulations. It's open to anything that impacts small businesses. The 96 submissions to the advocacy hotline could have easily been about tariffs, but we don't know. The chairman doesn't know. I just asked him. He hasn't seen any of their submissions. the administration didn't provide information to us.
▶ 1:51:53So if we are here passing legislation based on what we hear and what the SBA uh want to tell us but not to share the specific information we need to do better by small businesses tariffs not regulations are crushing small businesses.
▶ 1:52:18Small businesses all across the country are shouldering the costs of the Trump tariffs. The cost of goods is rising exponentially, making it harder and hard for small businesses to do what they do best, create jobs, innovate, and flourish.
▶ 1:52:38Despite promises made uh by the Trump administration to lower costs on day one, President Trump's policy have inflicted pain on every sector of the small business economy. And where is the office of advocacy when small businesses are under siege? Nowhere to be found.
▶ 1:53:02I strongly support the amendment which would allow us to get a better understanding of how many small businesses are contacting advocacy about taris and see if advocacy is advocating for them. I urge my colleagues to support this amendment and I yield back. Mr. Chairman,
▶ 1:53:24gentle lady yields back. I now recognize myself to speak on the amendment. As my colleague mentioned, the amendment is unnecessary because the red tape hotline needs to be targeted to address the regulatory burdens Main Street is feeling every day, not what is defined in this proposed amendment. I urge my colleagues to vote no on this amendment. Now, the question now occurs on the amendment offered by Representative Scolton. All those in favor say I.
▶ 1:53:49All those opposed say no.
▶ 1:53:52The pain of the chair, the
▶ 1:53:53Mr. Chairman, I request a recorded vote. Members recognized and a recorded vote has been requested. A roll call vote is ordered. Further proceedings on the amendment are postponed. Okay. Now the question now occurs on the adoption of the substitute amendment offered to HR 4305 by representative Weed. All those in favor say I.
▶ 1:54:17All those opposed say no.
▶ 1:54:19Depending the chair of the eyes have it. The amendment in the nature of a substitute to HR4305 is adopted. The question is now on favorably reporting HR4305 as amended to the house. All those in favor say I.
▶ 1:54:34All those opposed say no.
▶ 1:54:36In the opinion of the chair, the eyes have it and HR4305 as amended is agreed
▶ 1:54:45Mr. Chairman, ask for a recorded vote.
▶ 1:54:47Okay. We we recognize that and a recorded vote has been requested. A roll call vote is ordered and persuant to committee rule 13 and house rule 11 further proceedings on the bill are Now the committee will stand in recess subject to the call of the chair. Members, please return. Do we know 11:40? Uh please return at 11:40 to resume consideration of the bill uh on which uh the roll call votes were requested and postponed.
▶ 2:11:57It's our side of the aisle. Okay. Uh the committee will now come to Uh the committee will resume consideration of the bills on which roll call votes were requested and postponed. We start with HR5763.
▶ 2:12:23The question now is on adopting HR5763 and ordering it favorably to the House. The clerk will open the vote.
▶ 2:12:37There we go.
▶ 2:12:39You want to hit it for me? Um, just point it towards uh the clerk.
▶ 2:13:02The guy in the gray suit.
▶ 2:13:07Okay. Right here.
▶ 2:13:08Yeah. Are there any other members who've not voted or wish to change their vote? If not, the clerk will close the vote and the clerk will report.
▶ 2:13:20Mr. Chairman, on this vote, the eyes are 27 and the nos are zero.
▶ 2:13:25Okay. The motion is agreed to and HR5763 is adopted and will be reported favorably to the house. Question now is adopting HR 5788 and ordinate favorably to the house. The clerk will open the vote.
▶ 2:13:56Are there any other members who've not voted or wish to change their vote? Okay. If not, the clerk will close the vote and the clerk will report.
▶ 2:14:09Mr. Chairman, on this vote, the eyes are 27 and the nose are zero.
▶ 2:14:14Motion is agreed to and HR5788 is adopted and will be reported favorably to the House. The question now is adopting HR 3496 as amended and ordering it favorably to the House. The clerk will open the vote. Are there any other members who have not voted or wish to change the vote?
▶ 2:14:43If not, the clerk will close the vote and the clerk will report.
▶ 2:14:47Mr. Chairman, on this vote, the eyes are 27 and the nos are zero. Okay. The motions agreed to an HR 3496 as amended is adopted and will be reported favorably to the House. The question now is on ordering 5 HR 5764 as amended and ordinate favorably to the house.
▶ 2:15:05The clerk will open the Are there any other members who have not voted and wish to change their vote? If not, the clerk will close the vote and the clerk will report.
▶ 2:15:26Mr. Mr. Chairman, on this vote the eyes are 27 and the nos are zero.
▶ 2:15:33The motion is agreed to and HR5764 is a as amended is adopted and will be reported favorably to the house. The question now is on adopting HR5784 and ordered to favorably to the house. The clerk will open the vote. Are there any of the members who have not voted or wish to change their vote?
▶ 2:16:01If not, the clerk will close the vote and the clerk will report.
▶ 2:16:10Mr. Chairman, on this vote, the eyes are 27 and the nos are zero. Uh
▶ 2:16:15the motion is agreed to and HR 5784 is adopted and will be f reported favorably to the house. The question now is on adopting HR5778 and ordering ordering it favorably to the house. The clerk will open the vote.
▶ 2:16:39Are there any other members who have not voted or wish to change their vote?
▶ 2:16:44If not, the clerk will close a vote and clerk will report.
▶ 2:16:48Mr. Chairman, on the vote on this vote, the eyes are 27 and the nose are zero.
▶ 2:16:53The motion is agreed to and HR5778 is adopted and will be reported favorably to the House. Now, we will now vote on HR4305. The question is on the amendment offered by Representative Cisneros. The clerk will open the vote. Are there any other members who have not voted or wish to change their vote?
▶ 2:17:25If not, the clerk will close the vote and the clerk will report.
▶ 2:17:30Mr. Chairman, on this vote, the eyes are 12 and the nose are 15.
▶ 2:17:36The amendment is not agreed to. The question is on the amendment offered by Representative Schultton. The clerk will open the vote. Are there any other members who have not voted or wish to change their vote? Uh if not, the clerk will close a vote and the clerk will report.
▶ 2:18:01Mr. Chairman, on this vote, the eyes are 12 and the nos are 15.
▶ 2:18:05Okay. The amendment is not agreed to. Now the question is now is adopting to HR4305 as amended and ordinant favorably to the house. The clerk will open the Are there any other Are there any members who have not voted or wish to change their vote? Okay. If not, the clerk will close a vote and the clerk will report.
▶ 2:18:41Mr. Chairman, on this vote, the eyes are 18 and the nose are nine. The motion is agreed to and HR4305 as amended is adopted and will be reported favorably to the House. Now, if there is a good Okay, if there's no further business, this concludes today's markup. So I want to say I think we had a good markup. Bipartisanship is strong in this committee and we're getting things done.
▶ 2:19:10So without objection, the committee staff is authorized to make technically conforming changes and members have uh two business days to file additional supplemental desending and minority views. I want to thank all of you for being here today. Without objection, the committee stands adjourned.
▶ 2:19:27Thank you.