STATEMENT
of the
Honorable Nydia M. Velázquez, Chair
House Committee on Small Business
Full Committee Hearing: “The Challenges of the 2009-H1N1 Influenza and its Potential Impact on Small Businesses and Healthcare Providers”
September 9, 2009, 1 p.m.

Every flu season, we encourage Americans to take precautions like getting vaccinated and washing their hands. However, this year’s flu season is different. Because of H1N1, our nation can expect a new set of public health issues. For those in the small business community, the 2009 flu season will mean new challenges.

The World Health Organization and the CDC announced the outbreak of H1N1 in March. By July, the number of confirmed cases had reached 100,000. While it is too early to tell how fast the virus will spread, it is almost certain that a pandemic will mean significant economic consequences. The CBO has suggested a full blown pandemic could draw $700 billion out of the economy – at a time when we cannot afford any economic setbacks.

The Administration recently released its plan for employers to respond to and prepare for H1N1. This week, we expect to see a similar plan that is specifically tailored for small businesses’ needs.

Today’s hearing will look at these recommendations and the issues facing small firms. For small companies, this year’s flu season raises many questions. How should small businesses handle leave policy? One of the best ways to combat the spread of H1N1 is to encourage employees to stay home if they are ill. Clearly, limiting exposure is important for fighting the spread of flu. However, sending too many workers home can also impede small firms’ operations. While most business owners want to be responsible and protect their employees’ health, we also want to ensure that they do not needlessly slow down their operations.

Big companies usually have enough employees to continue operating, even when part of their workforce grows ill. That isn’t always the case for small businesses. So, we cannot assume that solutions that work for big firms will work for small ones.

We also need to think about how disruptions to small businesses will impact the flow of commerce. Entrepreneurs rely on other firms to provide them materials, but they also supply products to other businesses. If H1N1 interrupts this supply chain, there are questions about how the overall flow of goods and services will be affected. We need to examine these problems and think about solutions for minimizing this economic ripple effect. Perhaps most of all, we must look at what tools are available to help small businesses as we head into flu season and consider whether those tools are sufficient.

Just as small employers are taking steps to slow the spread of H1N1, entrepreneurs will be critical to helping our nation overcome this pandemic. Some of the most promising research is conducted by small companies. As we race to develop effective vaccines, these companies will be instrumental. Small health care providers have always been the core of our medical system-- eighty percent of doctor office visits take place in a small practice. These providers will be vital in distributing vaccinations and treating Americans who fall sick.

Clearly, all types of small businesses will be on the frontline this flu season. As employers, as health care providers and as a source of medical innovation, entrepreneurs will be an important part of how our nation responds to this public health problem.

At this stage, numerous questions remain unanswered. All of us hope that infection rates are moderate, but, regardless, the wisest course of action is for all of us to be prepared. Today’s hearing will explore how small businesses can help us through this year’s flu season, the challenges they face and what we can do to support their efforts. With that, I thank our witnesses for being here and yield to the Ranking Member for an opening statement.