Various Measures

Small Business Administration OversightHouse Small Business · 2026-05-20 · 119th Congress
The House Small Business Committee met to mark up nine bipartisan bills addressing SBA oversight, disaster loan accountability, COVID fraud reporting, small business certifications, federal contracting rules (the "rule of two"), cybersecurity and AI use at the SBA, 7(a) loan eligibility for technology, antitrust impacts on small firms, and SBA outreach on health coverage options. Begins at 0:25:25
Transcript
Highlights

Title

House Small Business Committee markup of nine bills, including SBA disaster loan reform

Purpose

The House Small Business Committee met to mark up nine bipartisan bills addressing SBA oversight, disaster loan accountability, COVID fraud reporting, small business certifications, federal contracting rules (the "rule of two"), cybersecurity and AI use at the SBA, 7(a) loan eligibility for technology, antitrust impacts on small firms, and SBA outreach on health coverage options. Chairman Williams and Ranking Member Velázquez presided, with each bill debated, amended where offered, and voted on, with several members requesting recorded roll-call votes that were taken after a recess. Begins at0:25:25

Who spoke

Chairman Roger Williams (R-TX)0:25:25: Opened the markup describing bills on SBA accountability, transparency, contracting, lending modernization, and health care outreach0:25:54; spoke in support of nearly every bill, including HR42380:31:18 and HR88790:47:10, and presided over all votes.

Ranking Member Nydia Velázquez (D-NY)0:28:22: Praised HR2804 (rule of two) as a priority0:28:22; criticized Trump's "failed economic agenda" and tariffs hurting small businesses0:29:31; opposed HR5498 as a one-sided "messaging bill" and cited SBDC funding delays, including Colorado's unpaid first-quarter payment1:41:071:43:23.

Rep. Maggie Goodlander (D-NH)0:32:59: Co-led HR4238, describing how the SBA disaster loan account ran out of money on October 15, 2024, for over two months during Hurricanes Milton and Helene recovery0:33:510:34:21; detailed monthly reporting, 24-hour shortfall alerts, and a travel restriction on the SBA administrator until reports are filed0:36:150:36:45.

Rep. Mark Oschelski (R-MD)0:41:56: Introduced HR8879, citing that in 2023 veteran-owned certification applicants were served by 20 SBA staff/54 contractors in about 3 weeks, versus 8 staff/2 contractors and a ~7,000-applicant, nearly year-long backlog for women-owned business applicants0:43:12.

Rep. Weed (WI)0:44:25: Co-led HR8879 to require SBA reporting on certification and contract award data to root out waste, fraud, and abuse0:44:25.

Rep. Latimer (D-NY)0:50:46: Co-led HR826, noting COVID-era SBA loans totaled $1.2 trillion0:51:11; also co-led HR8881 on AI reporting1:05:31.

Rep. Simon (D-CA)0:55:57: Introduced HR8880, citing that 99% of small businesses use at least one technology platform0:56:28 and that GAO would assess cyber threats and federal resources0:57:16.

Rep. Breznahan (D-PA)0:58:34: Co-led HR8880, stating small businesses are 210% more likely to experience cyber incidents than larger companies0:59:06.

Rep. Finstad (R-MN)1:03:41: Introduced HR8881 requiring annual SBA reporting on AI use, benefits, and risks1:04:11.

Rep. Scholten (D-MI)1:10:22: Introduced HR8882 (Main Street Competes Act) directing SBA's Office of Advocacy to work with FTC/DOJ on antitrust gaps1:11:06; later offered an amendment to HR5498 requiring SBA to share information on all health coverage options, not just ICHRAs1:46:29.

Rep. Schmidt (R-KS)1:12:05: Co-led HR8882, discussing resource-intensive antitrust enforcement and the need for small-business input1:12:34.

A committee member, former DOJ antitrust enforcer1:13:27: Spoke in strong support of HR8882, describing consolidation "screwing family farmers" and squeezing independent grocers1:13:59.

Rep. Alford (R-MO)1:19:36: Introduced HR915, describing ambiguity over whether SBA 7(a) loans cover software, cloud computing, and AI tools1:20:06.

Rep. McGarvey (D-KY)1:22:58: Co-led HR915, noting technology has already changed how small businesses operate1:23:27.

Rep. Cisneros1:33:18: Spoke on HR2804, citing that at a Contracting and Infrastructure Subcommittee hearing the rule of two was the top priority small businesses raised with the SBA administrator1:34:15.

Rep. Van Duyne (R-TX)1:36:28: Introduced HR5498 to require SBA outreach on ICHRAs1:36:28; opposed the Scholten and Morrison amendments as diluting the bill's focus1:49:171:58:13.

Dr. Morrison (D-MN)1:55:47: Offered an amendment requiring SBA to disclose that ICHRAs may make employees ineligible for ACA premium tax credits1:55:47.

Key moments

The SBA's disaster loan account ran completely out of money on October 15, 2024, during Hurricanes Milton and Helene, halting new loans for over two months0:34:210:34:52.

HR4238 would bar the SBA administrator from official travel until required monthly disaster-loan reports are submitted to Congress0:37:00.

Certification backlog disparity: veteran-owned applicants processed in ~3 weeks by 20 staff/54 contractors versus women-owned applicants facing a ~7,000-case, nearly year-long backlog with only 8 staff/2 contractors0:43:12.

SBA IG estimated roughly $200 billion in potentially fraudulent COVID relief funds, and the SBA referred over 562,000 suspected fraudulent loans (~$22 billion) to Treasury this year0:49:420:49:59.

Velázquez said the SBA "executed 14 years of lending in 14 days" during COVID, weakening internal controls that criminal syndicates exploited0:52:430:53:13.

Rep. Scholten's amendment to HR5498, requiring SBA to disclose all health coverage options rather than only ICHRAs, failed 11–12 on a recorded vote2:33:30.

Dr. Morrison's amendment requiring disclosure that ICHRAs can make employees ineligible for ACA premium tax credits also failed 11–122:34:13.

HR5498 as amended by Van Duyne passed the committee 13–11, the only bill of the day with a divided vote; all other bills passed 23–02:35:362:26:36.

Velázquez criticized the administration for "building taxpayers to bankroll a billion dollar ballroom" while cutting health coverage and food assistance1:42:25.

A Brookings Institution analysis cited by Velázquez found ICHRAs offered alongside a group plan could raise premiums 16–93%1:40:15.

Metadata

CommitteeHouse Small Business
Chamber / CongressHouse · 119th Congress
Date2026-05-20
TypeMarkup
Witnesses
(none listed in event metadata)
Videoyoutube
Transcript392 caption blocks · 15,598 words · 2:36:05 runtime
EventCongress.gov 119320