Statement of the
Honorable Nydia M. Velázquez
on the
Office of Advocacy Hearing

Thank you, Mr. Chairman.

We all know the incredible job the Office of Advocacy has done to protect the interests of small business within the federal government.

Whether they were saving $3 Billion dollars in regulatory reform for small business or overseeing the SBREFA process at EPA - the Office of Advocacy has done whatever is necessary to protect this bedrock of our economy from sometimes over-reaching federal policies.

However, as Members of this Committee - it is our duty to review options which can improve the way federal agencies conduct the people's business. In this case, we must review these options knowing any determinations we make are done so with the best interests of small businesses squarely in mind.

Today is the first step in what I believe will be a critical undertaking for this Committee - and for America's small business community.

This hearing provides a unique opportunity for this Committee to take a " first-mover " approach towards strengthening Advocacy - providing a powerful and independent presence for small businesses in America.

As we begin our examination of how to make the Office of Advocacy more independent, it is crucial that we keep our "eye on the ball" during this process. We must do everything to ensure that small businesses have a voice and that their interests are given full weight in the deliberations of the federal government.

Unfortunately, moves like simply providing Advocacy its own authorization line item and then calling that "independence" does absolutely nothing for small business.

So, then how do we measure whether or not we have been successful in creating a more independent Office of Advocacy? The answer to that question is simple - Have we reinforced the agency's ability to oversee the Reg Flex Act?
But allow me to make one point crystal clear - success isn't just in providing the tools - it's how effective you are in using those tools.

In fact, as is the case with this agency - it's success can be traced directly to simplicity itself. Advocacy has been so incredibly effective because it has stayed true to its core mission of providing support to small businesses and entrepreneurs.

Indeed, it is this "simplicity" that has been its guiding force and greatest strength.

However, as this process moves forward today, many of the proposals we will hear would force Advocacy into a much greater role - which would lead to a decline in its effectiveness as an agency.

While some of these proposals, including having Advocacy take a more active role in the issues of federal procurement, are examined - I would caution Members that these enhancements should not come at a reduction in its responsibilities under the Reg Flex Act.
We also need to have a frank discussion of resource allocation for a new and improved Advocacy.

Unfortunately, with the current budgetary situation, which has seen SBA's operating budget slashed by 43%, is it realistic for any of us here today to assume that this Administration will support any new ventures - when they have clearly demonstrated an unwillingness to meet even their current commitments.

My colleagues, these issues of funding and focus are so absolutely crucial that it will take the partnership of this Committee, our counterparts in the Senate as well as the President and his Administration. But, this partnership should also include elements that are simply not in place as of yet - those elements are the SBA Administrator and the Chief Advocate.

For us to give this matter proper deliberation, these pieces are absolutely essential to our case - to be perfectly frank, we have to do this with their support and input. Without it, we are engaging in a "cart before the horse" type of action - which will lead us right back to where we are now.
And believe me, in doing so, we reduce our own effectiveness - which is not something we can afford to do in the current economic and political climate.

Mr. Chairman, in closing, I would like to thank you for convening this hearing today on such a critically important issue to small business owners. I would also like to extend my appreciation to the panelists for their testimony today. Their commitment to the protecting small businesses in this country deserves to be acknowledged and commended.

 

 

 

 

 

 

 

 

 

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