STATEMENT
of the
Honorable Nydia M. Velázquez, Ranking Democratic
Member
House Committee on Small Business
NSBA Legislative Breakfast
May 19, 2004
Good morning, everyone. I want to thank Todd McCracken for
inviting me here today. This has become an annual event
for me - and I always like coming here to talk about small
businesses - to NSBA members from around the country.
I'm sure everyone that spoke here today talked
about the importance of small businesses and how YOU are
the key to economic recovery in this country. I'm not going
to repeat it. What I do want to talk about is what type
of investment we need to make in small businesses to get
our economy back on track.
Whenever investment is discussed, the first
thing that always comes up is tax cuts. I know the president's
$1.7 trillion tax cuts did some good for small business.
But too much of the cuts went to Corporate America - and
not enough went to Main Street. I believe ANY tax cut should
include targeted, permanent small business relief! Then
we would see some real results!
Another way to invest in your businesses is
through federal programs, like those at the Small Business
Administration (SBA). There is no other trade association
that offers more support - and knows more about - what the
SBA programs can do for small businesses than NSBA. NSBA
members understand what the entrepreneurial development
programs can do, the critical role Advocacy plays, the importance
of the 7(a) loan program, and just how good SBA's contracting
programs are.
But I have to tell you, this latest SBA budget is the worst
I've seen in my time here! It is an absolute travesty. After
paring down the agency's budget in years past, the Bush
administration gave the SBA what could be a lasting - and
final - blow.
It slashed $120 million from the budget, gutting
important access to capital programs, failing to get a women's
procurement program up-and-running and leaving entrepreneurial
development programs woefully underfunded. I believe in
the power of small businesses. And if this administration
did, then it would back up its rhetoric with funding for
the SBA!
The Bush administration is also blocking the
SBA reauthorization bill (H.R. 2802). This bipartisan bill
was voted UNANIMOUSLY out of our Committee last year. If
passed, it would be the most significant rewrite of the
agency in more than a decade!
It's a shame the bill is held up because it
would do positive things for your businesses. First, the
SBA reauthorization would help to open up the $235 billion
federal marketplace to small businesses. I have been saying
this for years - small firms need to get their fair share
of federal contracts!
My colleagues and I started a Scorecard report to track
how well federal agencies meet their small business goals.
Under President Bush, federal agencies have failed three
years in a row to meet these goals. This failure has cost
small businesses billions of dollars in lost contracting
opportunities!
So in the SBA reauthorization we put in an
array of protections to give small businesses better access
to federal contracts. This includes implementing the Women's
Procurement Program. It became law three years ago, but
the Bush administration refuses to implement it. So we made
it active immediately through the reauthorization.
Aside from contracting, the SBA reauthorization
would also improve important technical assistance programs,
like the Small Business Development Centers (SBDCs) and
the Women's Business Centers (WBCs).
Studies have actually shown that those entrepreneurs
who receive technical assistance are more than twice as
likely to succeed. The SBA's entrepreneurial development
programs are also well worth the investment - for every
$1 spent on counseling, more than $3 is added to the economy.
The SBA reauthorization bill would make these programs even
better!
Finally, the SBA reauthorization would increase capital
for small business growth by strengthening the SBA's flagship
lending initiative - the 7(a) program.
Now I don't know how many of you realize this,
but the Bush administration, year after year, requests inadequate
funding for the 7(a) program. We were able to get enough
funding to get us through the year. But next year is another
story. We face the same problem.
So today I'm here to ask for your help. I
believe in the 7(a) loan program. You believe in it. And
together, I know we can save it! The first step in saving
the program is Members and I are sending a letter to the
appropriators to ask for funding. If this doesn't happen,
then we will offer an amendment. I'm asking you, when you
go to the offices of your representatives, ask them to sign
this letter (have Jordan pass them out) and support our
amendment!
As you can see, small businesses are facing
a lot of challenges. And if we could just get a few things
done, it would go a long way in helping your companies.
We know that when this administration and the Republican
leadership want something done, it happens. Just look at
the Medicare bill - and the tax cuts. If they really wanted
to help small businesses, they would fully fund the SBA
and pass the agency's reauthorization! This would create
jobs and make our local economies stronger.
Everyone talks about how investing in small
businesses will turn this economy around. But we need more
than just talk - we NEED ACTION! That's why I am urging
you to visit your representatives, talk to them, and get
their support. The future of the small business community
- and our economy - depends on it.
Thank you.
