STATEMENT
of the
Honorable Nydia M. Velázquez, Ranking Democratic
Member
House Committee on Small Business
on SBDC client confidentiality
Aug. 1, 2001
Mr. Chairman, my en bloc
amendment makes several technical corrections.
This amendment also addresses
one of the most critical issues facing many individuals
across this country --- privacy protection.
My colleagues, you can't
turn on the television, pick up a newspaper or scan the
Web without seeing a story where an individual's confidential
record has ended up in the wrong hands.
According to a recent University
of Connecticut survey, 61 percent of Americans are very
concerned about their personal privacy. Small businesses,
too, are concerned that we protect THEIR privacy. When small
business owners enter their local Small Business Development
Center, they need to know beyond a shadow of a doubt that
their financial, tax, and employment record will be protected
from disclosure.
The bill offered by Mr.
Sweeney, H.R. 203, protects businesses participating in
the regular compliance program. I strongly support this
legislation and believe this policy should be extended to
all small businesses that enter their local SBDC. That is
the goal of my amendment, and I urge my colleagues to endorse
it.
It is critical that we
act on this issue. Recent cases have come to light where
SBA district offices have coerced local SBDCs into releasing
their client lists. The problems this creates is that once
this information leaves the SBDC, who knows where it will
end up? In the hands of another agency, or even a third
party? Think of the damaging effect that the release of
sensitive lending information could have on a small business
seeking to secure expansion capital. Think of the implications
for an owner, seeking in good faith to comply with safety
regulations, who suddenly becomes an enforcement target
because of private conversations with an SBDC .
My amendment protects small
businesses by barring SBDCs from disclosing names or addresses
of any SBDC client to anyone without consent.
As privacy becomes an increased
concern for Americans, if we cannot guarantee that conversations
and information shared by business owners and the local
SBDC are absolutely protected, we risk creating a chilling
effect that will, in the long run, only harm the growth
of our small business.
Mr. Chairman, I hope these
proposals will ensure that clients continue to seek assistance
by preventing the SBA from violating their right to privacy.
Businesses should no longer worry that their good-faith
contact with the government will be disclosed to others.
If businesses fear to seek assistance, the SBDCs will instantly
become an artifact.
This legislation and my amendment will help ensure the SBA
remains a government service, not a snitch. When dealing
with a government office, you should have the assurance
that nothing you say or do there will be used against you.
My amendment only goes farther to secure that guarantee
for American small businesses. I again urge my colleagues
to vote for passage of this bill and my amendment.
Thank you very much.
