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tv   SBA Administrator Linda Mc Mahon Testifies at Confirmation Hearing  CSPAN  January 26, 2017 3:30am-5:31am EST

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saddam was a realist in the use of power and the way political power is exercised and political power game. i think he saw that when you are playing at his level, the presidency, the top level in the country, when you win you win big. but when you lose, you also lose big. >> sunday night at 8:00 eastern on c-span's q and a. co-founder linda a senateestifies at hearing on her nomination as small business administrator. this is just under two hours.
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than the -- >> the committee will come to order.
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[inaudible] sba. mcmahon to head the linda, thank you so much for have senators we blumenthal and murphy to mcmahon and both of these gentlemen have run against mrs. mcmahon and vice versa. so, i hope they didn't ring their files on -- >> we have been trying to forget. but in any event, senator blumenthal, the floor is yours and thank you so much for gracing us with your presence. >> thank you, mr. chairman and thank you senator shaheen. colleague to join my in introducing our fellow resident of connecticut, linda
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mcmahon. citizenher as a fellow of connecticut, but also as a , asessful business leader the cofounder and former ceo of , and also as a very generous contributor to many significant philanthropic and charitable causes and educational institutions in connecticut, including for example, sacred heart university, where we live. in my view, mr. chairman, i recommend her because i think she would be an excellent fit for this agency based on her experience and expertise as a business leader. i do, that small businesses are the backbone of our economy, they are the most vibrant and vital job creators. they not only innovate by fostering new jobs, but they
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also invent new product, they are the startups in every sense and they embody the american green -- green. i know how they create jobs and new products and opportunities for others. role,a lays an integral as this committee will knows, in supporting small businesses financially, but also encouraging them with expertise and experience. linda mcmahon has that kind of expertise and experience. and a a tireless leader tenacious fighter. her professional life has been about building businesses, she has started and struggled in the entrepreneurial trenches, meeting payrolls, hiring and firing, working hard for a vision. we have known our share of differences, but i have never questioned her unwavering drive
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and focus. she has used her business to realizeerans and women their own dreams and opportunities, and i am hopeful that under her leadership, the small business administration it's -- its focus on veterans and women. she has played an integral role in spearheading opportunities and dreams for women and that has been the focus of her life -- professional life most recently. so, i am pleased to do the here -- to be here and recommend her to the committee. she understands the needs of , who areke connecticut still working hard to recover from the economic recession, who
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need new jobs, and i hope she will continue to have connecticut at the top of her as she assumes this new role and i look forward to working her -- with her and i know other members of the committee will, as well. thank you very much. >> thank you senator blumenthal, i was hoping she would have idaho at the top of her mind, but -- >> i will let her say that. >> i don't think she will. coming, we are all busy these days. >> thank you, very much mr. chairman. it also gives me great pleasure to help introduce our linda mcmahon as the nominee to serve as the next chair of the small business administration. as you said, this visual is going to be a little amusing and surprising to folks in connecticut who watch the three of us do get out over two long senate campaigns.
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but politics can't work if political grudges never die and political adversaries have to find a way to work together after the fight is over. i am here to support linda, not because we have magically become of one mind on how we approach every problem the country faces, but because i have confidence that she is going to give good counsel to president trump when it comes to the policy affecting small businesses and i believe she has the passion for this job that is vital. at its core, the sba's mission is simple, to help americans start, build and grow businesses. every owner and starter of a small business wants to one day be the owner of a big is this. before you today sits a very counted and experienced as this person who did just that. over the past few decades, lynn did -- linda has shepherded a business from a one desk operation to a profitable enterprise with hundreds of employees throughout the world. she also understands the challenges as blumenthal said,
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facing women business owners. her organization helps equip women to become successful business leaders. the progressd on of her predecessor in the obama administration. the federal government has surpassed its 5% contracting goal for women in small businesses. for the first time in history. i have confidence linda and am thrivingher empower businesses with the hope of partner organizations like the women's business development council, which has had success in connecticut, nurturing women owned small businesses. i saw firsthand the fight that linda brings to any endeavor that she takes on and i am sure we will have disagreements, but i will never question whether she has the experience and the determination necessary to lead this great agency. and i would really urge the members of this committee to
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support her nomination. i am very pleased to join with senator blumenthal to introduce her today. chairman: thank you, so much senators. we will advise the guinness world book of records about this event and get it duly noted. you are certainly welcome to stay, but knowing that we are all drinking out of a fire hose these days, you can certainly be excused and i'm sure you will see this when you need to see it. so, thank you so much. thank you for coming. >> thank you mr. chairman. chairman: thank you. where we are headed here and for everyone else, i am going to make a very brief opening statement. i will yield to senator shaheen to do likewise. at that point, he will administer the o's, which is -- oath andthe o's
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the floor will be yours to make an opening statement. as you can see, you have a list of people with deep, probing questions who will then take turns at you from each side. so, in any event, first of all thank you for coming to meet with me and spending the time that you did. and you for being willing to take on this important appointment. the small business administration is not a large federal agency. as federal agencies go, but to a -- a smallrson, businessperson, it can be one of the most important and critical endeavors that the government undertakes. you and i have the opportunity to talk about a couple of , itavors that the sba does is of course known for its loaning to small businesses and you will find, i think, when you
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drill down, but there is a very robust fleet of lenders out there who service the small business community through the small business administration. i think you will be well satisfied with how they operate, what they do and the work they do for small business. of more importance to me, because that part of the operation is doing so well, is the efforts that the sba undertakes to try and level the playing field for small businesses. when we talk with every business -- when i started in politics, the most hated organization of any government was the irs. back andas fallen way the other agencies that do the regulatory things that the government does have risen to the top. in my state and our dealings,
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the epa is way up there. others.at, there are if you ask any businessman today, whether small or big, particularly small business, what is the biggest challenge you face today question mark invariably, they won't say, it is access to capital or taxes are too high. they will cut your the regulatory structure of the isernment in america strangling businesses. you will find that everyone at this table can tell stories about government agencies coming into small businesses and, -- causing them difficulty. we have an operation called the office of advocacy. upy are supposed to stand and complain loudly every time
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the federal government does something that affects small businesses. there is a process in place for them to formally do this. it has not worked very well. i am hoping as we go forward that we are going to be able to make it work better. poster child for that was the rule posed regarding waters of the united states. the advocacy -- office of advocacy said this was a problem , especially for small businesses in agriculture and others looted. the agency said, no, we are making a finding that this will not have a significant impact on businesses. you have got to be brain-dead to reach that kind of conclusion. youny event, i know that share my concern with that. i hope we will be able to work together to try and do more for small businesses. we all know when the government
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ruts out a regulation, if you handed it by an army of lawyers to take care of it very if it comes to a guy who was fixing lawnmowers in his garage, and he gets a multipage inquiry from the government, it becomes a big problem for him and cuts into his worker medically. we will -- his work dramatically. i look forward to your thoughts on that and with that, a yield to my colleague. >> thank you very much, mr. chairman. a key for holding today's hearing and congratulations on taking over the gavel. we have had the opportunity to work together in the past very well and i look forward to working with you over the coming session to address the needs of small businesses. to recognize the new members of the committee, senator duckworth on the
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democratic side and on the republican side, senators in half, young and round. welcome to the committee. you will find this is a committee that works in a very strong, bipartisan way to address the concerns of small businesses. i look forward to continuing to do that. i am also very pleased to welcome linda mcmahon, who is president trump's cabinet to head the small business administration. i appreciated the opportunity to meet with you and hear your passion for the work that small businesses do. i got on this committee in 2008 after i got elected to the senate, because small business is such a concern for new hampshire. 96% of our employers in new hampshire are considered small and they are not just important to new hampshire and so many of the states represented on this committee, but they are the engine of the economy that drives this nation.
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two out of every three jobs created are created from small businesses. they are also leaders in innovation, they produce -- and this is a statistic that is one of my favorite, they produce 14 and large patents businesses. i am not sure most people appreciate the innovation that occurs in our small businesses. unfortunately, unlike big business, our small businesses have not yet fully recovered from the great recession. for example, according to a harvard is this school analysis, small business loans have dropped by 20% since the financial crisis while lending to large firms as increased by 4%. that's why sba and its programs are so critical. backedar alone, the sba more than 70,000 loans to small businesses, supporting $29 billion in lending and nearly 700,000 jobs. the sba also help small businesses win more than $90
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million in federal contracts and provided counseling to more than one million entrepreneurs. but of course, there is more work to be done and that is why you were there. -- are here. i know you share those goals and values for why we need to support small business in this economy and look forward to hearing your statement today. and your response to questions. thank you, mr. chairman. thatman: i will warn you senator mahesh -- shaheen mentioned the new members. they may be new to this committee, but these people have been around for a while. don't expect softball questions. with that, i would ask you to stand and be sworn, if you would raise your right hand please. do you swear to tell the whole truth, nothing but the truth so help you god? thank you very much. i understand you have a very -- some introductions of your own.
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linda: i am proud to introduce my daughter stephanie and her husband. stand up. >> welcome. [applause] friends whorful have traveled from around the country to be here today. i am very appreciate -- appreciated of their presence, as well. chairman: at this point, the floor is yours for an opening statement. linda: thank you very much. thank you, chairman. ranking member shaheen and distinguished members of the committee. i am honored to have your consideration to serve as the head of u.s. small business administration. i would like to thank senators blumenthal and murphy for their kind introductions. and it was nice to be on a really even playing field today. myould also like to express gratitude to president trump for this opportunity to join his
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administration. as an entrepreneur myself, i have share the experiences of our nation's small business owners. we are more than our products and services, we are people. we are families. the small businesses that are the engine of our nationally economy are driven in part by people working to put food on the table, pay for kids braces and swimming lessons, save for college and prepare for their own retirement. whether it is an organic farmer or an app developer, with one employee or 100, we can never forget that small businesses are people with goals and values that cannot be cast elated a profit and loss statement. if i have the honor of being confirmed as the head of the sba, i will do my best to advocate on their behalf. built our and i businesses from scratch. we started up sharing a desk. over decades of hard work and strategic growth, we built it
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into a publicly traded global enterprise with more than 800 employees. i am proud of our success. i know every bit of the hard work that it took to create that success. whenember the early days every month, i had to decide whether i should continue to lease a typewriter or if i could finally afford to buy it. yes, believe it or not, that $12 a month at that time made a difference in our budget. owners, small business i know what it is like to take a risk on an idea, manage cash flows, navigate regulations and tax laws and create jobs. ceo oftepping down as wwe in 2009, i have worked to help more people have the opportunity to pursue those goals. in my travels throughout 2010-20 tellsrom when i was campaigning, i met with over 500 small business owners. shops, restaurants, factories
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and sharing ideas during roundtable discussions. job growth is the pillar of my campaign and because small businesses are responsible for half of all private sector jobs and the majority of new jobs, or my focus. for the past two years, i have promoted women in entrepreneurship as cofounder and ceo of women's leadership live. i wanted to share my vast experience with others launching startups and looking to scale their businesses. through life events and webinars, we educated entrepreneurs on applying for loans, developing a business plan. we also worked to build their confidence. i always say that even entrepreneurs with the best ideas sometimes need a little wind beneath their wings. by sharing our stories of success and failure, our networks of contacts or resources and our strategies for addressing challenges, we can give small business owners the confidence that will help propel
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them forward. owners do not just need confidence in themselves. in order to take a risk, they need conference -- confidence in the economy. should i be confirmed to lead the sba, i will work to revitalize a spirit of entrepreneurship in america. small businesses want to feel they can take a risk on an expansion or new hire without fearing onerous new regulations or unexpected taxes, fees and fines that will make such growth unaffordable. we want to renew optimism in our economy. small businesses have had some tough blows in the past decade. i know what it is like to take a hit and have learned that it is not how you fall, but had to get up that truly matters. early in my career when we were very young, my husband and i declared bankruptcy. --invested in a come industry we didn't understand and trusted people we shouldn't have. we were left holding the bag when that company went under.
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decisiony was a hard and a very tough time in our lives. we lost our home, my car was repossessed in our driveway, we had a young son and a baby on the way. we had no choice but to work hard and start building again so we could support our family. and our daughter stephanie was born, a perfect little baby so full of promise and potential, i took it as an omen that things were going to be ok. we owed it to her and our son that we would make it ok. fortunately, we did. as i visited small businesses all over the country through women's leadership live, i have seen that same resiliency over and over again, entrepreneurs are fighters. they work hard. when they get knocked down by recession or natural disaster, or simply a change in consumer demand, they turn to their creativity to make it better.
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but sometimes they need a helping hand. if i am honored to be confirmed, i will work to guide sba as that helping hand in the most efficient and effective way .ossible i believe in leadership by example. as a ceo, i never expected employees to do anything i was not willing to do myself. i believe in setting expectations and holding people accountable. but trusting them to do the job for which they were hired. if confirmed, i look forward to working with the sba staff. i am learning -- eager to learn from their expertise. , will listen and their ideas concerns and recommendations will be taken seriously. i know there will be new challenges in the government setting. that i will commit myself the to thesponsibility taxpayers of america as i did to shareholders of my company. i havee past two weeks, had the pleasure of meeting with members of the committee and i appreciate the kind words and encouragement i have received.
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the queue very much for the opportunity to speak with you today and i will be happy to answer your questions. >> thank you very much. we appreciate that. the way we are going to do this thewe are going to use "earlybird method." the first-come, first-served method. first, but reserve my time as i see appropriate. to myhat, yield the floor friend senator shaheen. senator shaheen: in keeping your statement, mrs. mcmahon. discussed this issue when you came to visit me, but i think it is important to give you an opportunity to address it in the committee. quoted as saying you supported merging the sba into the department of commerce.
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that proposal has been a major concern for businesses in my home state who believe their voice in washington is already , so i wonder if you could clarify your position and what do you believe sba should continue as a stand-alone agency or whether you think it should be merged into another agency. linda: thank you, ranking member shaking for the opportunity to clarify. when i was running for the senate connecticut, i was a strong advocate for reducing duplicity of programs. as a part of my campaign, i talked about duplicative programs. during that time, president obama had indicated that he was looking to merging some of the agencies. when i was asked if i supported commerce, iinto really wasn't focused on sba or
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commerce, i was focused on the concept of merging agencies for reducing duplicative programs to reduce costs. i am a firm believer that sba needs to be a stand-alone agency. i am very proud that president trump has kept it as a cabinet post, and i intend to serve my full-term and execute as well as i can to advocate on behalf of small businesses. innkeeperaheen: clarifying that. in new hampshire, sba has made progress over the past who -- fournd we have years. to some extent, this has been because of the work of so many sba's resource partners. the small business development center, the women's business center, volunteer mentors, business outreach centers and district offices. i think these partners are really critical to the mission
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of sba and helping small businesses. , how would your identify opportunities to maximize sba's resource partners and provide adequate funding for their staffing and programs? linda: first of all, i look forward to going to our different districts and regions and meeting with those sba members, a, the leaders and managers in those office to hear what programs are working and what programs are not. i don't have a working knowledge today of how successful those programs have been except to know, you have seen success and many of the members i have talked to. i would want to continue to purge -- encourage our outreach. my former company, wwe, we were always concerned about veterans and returning veterans and jobs. wwe is part of hire a veteran's program, that veteran aspect of helping them create jobs. as i already stated i've been very forthcoming in wanting
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women entrepreneurship to grow and continuing to support that. it's very near and dear to my heart. i will continue that outreach with our different organizations and mentor through the women's centers as well. senator shaheen: thank you. i'm pleased to hear that. i know the resource partners in the country will be pleased to hear that as well. as we discussed in our meeting , one of the best ways sba can help small business is making sure they have access to federal contracting. senator murphy mentioned in his introduction, we saw for the first time last year small business owners, women, had reached 5% in terms of access to federal contracts. it is a milestone but a very slow start to what we need to do more of. and so i wonder if you could , talk about how you plan to work with federal agencies to increase small business
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opportunities for federal contracts. linda: i would first like to fully understand what those projects are and how we can best fit the businesses to those contracts. in terms of the prime contracts and sub-contracts we need to make sure we have adequate representation for that growth. i would want to make sure our businesses have the right outreach, right advocates in those markets. that's what i would focus on, making sure we have those right advocates. senator shaheen thank you. : my time is up. i want to make a point, mr. chairman, of announceing i will enter a question into the record of congresswoman velvelasquez, who is the ranking member of this house small business committee and it relates to the ongoing situation in puerto rico, something you and i discussed when we met, mrs. mcmahon. i will be submitting that for the record. >> thank you very much.
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senator paul. senator paul: congratulations and welcome. i think the chairman put it very well when he said small businesses are worried about regulation. the cost of regulation if you have one bank. this goes on across america.
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i will be submitting that for the record. >> thank you very much. senator paul. senator paul: congratulations and welcome. i think the chairman put it very well when he said small businesses are worried about regulation. the cost of regulation is significant to small businesses particularly if you have 1,000 banks or one bank your compliance costs is better if you have one bank or spread it through 10,000 employees. this goes on across america. we have big businesses come to washington in favor of regulation because they see it as an impediment to smaller competition. i think small business does need a voice and i hope you'll be a good voice for small business. in your opinion, do you think we're overregulated? underregulated? do you think regulations are a problem? do you have any idea how the small business department may be run to add to the regulatory burden. linda: thank you for your question. what i learned when i was campaigning was the overregulation environment was costing them time, effort and money they couldn't focus on their business. i think we forget sometimes small business, especially mom and pop companies starting up. i have a special place in my heart for them, they're the chief cook and bottle washer, ceo, cfo, janitor, every other thing. when they get a packet of regulation forms they have to fill out in order to comply with regulation, a, they don't know what to do with it, b, they can't afford to hire lawyers to get them through the regulatory environment.
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either they become more at fault not compliant, or take time away from their business to do it. it is really difficult for small businesses to suffer under that type of regulatory environment. senator paul: one of the other burdens is taxes. i wouldn't discount it, say it is about equal. a lot of them pass locs as individual income. a moderately successful small business might be paying 39.6 income tax, in addition an obamacare tax and 43, 44 before you, god forbid, live in the northeast and have a 12% state income tax on top of that. i think there is a great burden. you won't get to address tax policy directly unless there are ways you can as a small business administration but you will also be a voice in the cabinet. i want to hear are we overtaxed, undertaxed or is it an im -- is our tax structure and impediment to the formation of small business? inda: thank you.
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having first started out as a sub s corp, and women's leadership live i started as an llc, so i understand how that pass through income works. i do think if we're involved in tax reform we need to consider how to also make it a level playing field for those pass through companies. i would be a strong advocate for that. senator paul: thank you. good luck. linda: thank you. >> thank you very much, senator. senator curtin. senator curtin: mrs. mcmahon, first, thank you very much for being willing to serve in this public position. we also thank your family because this will be family sacrifice. if you think you've traveled before, this is a big country but we thank you, your willing willingness to serve. you heard the numbers. i could go over the small businesses in maryland, over a million jobs. i see small business with a way to deal with student athletes on head injuries or new drugs being developed on the 270 orridor.
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they are going to help quality of life. small businesses and help other businesses deal with administrative costs. i see in our national defense so many companies figureing out better ways to test our weapons system. all that dlis ativity of small -- the creativity of small business. they use mentoring and developing a plan over time. it is difficult to know what a faithful need to get a loan. that is very challenging for small businesses to get. particularly venture capital to be latte close risks. they use it as an advocate to make sure they have government procurement. government procurement is a very important part of opportunities for small business. i thank you very much for our
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personal visit. you need an advocate. in that dealing with other regions we talked about procurement issues, you have minority businesses. one thing is common, when an agency is doing their procurement, like the contractors as possible they have to evaluate every contract that is there and they tend to bundle into large contracts that make it virtually impossible for small businesses to be a prime contractor. we attempted to pass anti-funneling to ensure that is not done. can you tell me how you will make sure procurement is fair to help small businesses grow? inda: thank you very much.
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we did have a good conversation about that. i find the best way to bviscate what you're trying to do is bundle things or stack stuff on top of it. i'd like to peel back some of that bundling and take a look at it so we have the opportunity for small businesses to have that fair shot. they shouldn't just continue to get squeezed out. i would want to be their advocate. i would want to hear from them. how did this happen? how'd we get around this? how do we need to speak to and how can i advocate more strongly on your behalf? what avenues have you gone down what other avenues do you need to go down so we can reach an and make this more about you? i would be working hard to advocate for our small businesses. >> i appreciate that. i appreciate your response to what you've done for veterans, returning warrior, to me, that's an extremely important part to help veterans and returning warriors with regard
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to small businesses. i shared with you my state montgomery county of commerce hamber had returning warriors, to help mentor them to start small businesses in eadership. as a result, over 700 veteran owned businesses have been help -- helped by this program in maryland. it received help from the national business administration to make this a national program. i urge you to look at these types of programs because they do help the entrepreneur spirit for our returning warriors. we must everything we can to help them coming back to our country. linda: thank you. one quick comment. i serve on the board of a company called american corporate partners. it is a mentoring company for returning veterans to help the
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transition between the military and private sector. the outreach is to companies and corporations that then mentor men and women returning and guide them and often have them come into that company and spend days with different members of the executive or whatever branch they want to be in and it's been very successful. senator curtin: thank you. the last part i would make in regards to access to capital, it's been particularly difficult for minority businesses and hope we can find ways to do more outreach to help access to capital for particularly minority businesses. thank you. > thank you. >> i figured if chairman british can call you linda, i will also. thank you for taking the time that you did. you have been pretty busy. you are taking this very seriously.
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i have particularly enjoyed our visit because i have been there. we have similar backgrounds. you were bigger than i was. i did get up to the numbers that you did. i can remember spending 20 years being beat up by the bureaucracy. i think that the office that you have has the opportunity to do so much more. we have a guy who is the head of the farm bureau. when i talk about the problems farmers are having, throughout america, he said it is nothing that is in the agricultural hill. it is the overregulation of the epa. those are his words. we watch this happen. of all the problems, the one
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that scared us the most was the water bill. there are a lot of liberals would prefer to take that away from the states and give it to the federal government. i bring that up, that is an example. you have in your department that you're going to be responsible for, the office of dvocacy. it is an independent office and its purpose is to advocate on behalf of small businesses to other agencies to rule on their rulemaking. it has been pretty much ignoring. you're are going to have to stop from the zero base. have you given any thought on how you will be available for people it was designed for riginally?
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linda: if i have the privilege of being confirmed, i would like to strengthen that office. i have always been a defender of the little guy. we need someone who is going to go to bat for our small usinesses. i'm just the girl to do that. >> why do you think it wasn't done before? why do you think it was not done in the last administration, i have 300,000 small businesses in my state of oklahoma. i didn't hear from all of them but almost all of them on the problem. how will you revive that? linda: i think i have to first find out why it did not work. i heard that comment from more than one that the office of advocacy really needs to be strengthened and have teeth when it goes to the other agencies to say, you know, you're not comply complying and why aren't you complying. as of right now, those teeth
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aren't there. i need to find out why. i don't know why. i want to know why and will get back to you on that. >> that's good. i would assume the number of people working, there are a lot of people that have not been as responsible and responsive to small businesses and you'll have a chance to determine who they are and if necessary make changes. i would assume that would be an accurate statement. linda: thank you very much. >> they have within there the small business innovation research program that provides funding for the small business to commercialize new innovative technologies. companies receiving receive a better chance of bringing ideas to market than those not receiving the funding. in many recent years rural states including oklahoma have under underperformed in this funding. can you tell me what the sba
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changes they can make to and improve this? linda: again, thank you. it's a little bit difficult to say exactly what you're going to do when you really don't understand what has been done today. i do understand sbir has been so helpful with the research and development aspect in provideing that kind of research for startups. i would like to understand what those start-ups need and continue with sbir. >> have you been able to get the benefits of sbir in your company or know people personally who have? linda: i do not. >> >> ok. look forward to working with you. >> thank you. >> thank you, senator. senator heitkamp. >> thank you mr. chairman and thank you for attending the subcommittee last week on regulatory affairs. it was all about small business and the advocacy role sba
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should be playing we were disappointed may not have been aggressive as they should have been in the last several years. i look forward to continuing to work with senator inhofe on a legislative solution on a lot of our problems. >> i noticed when i left that subcommittee no one's hair was on fire. >> mr. chairman, it was a great iscussion. we welcome you at any point, linda, to our sub-committeesubcommittee. it's a great place for gathering of talking about cross section of small business and regulatory reform. i wish just for a minute you'd been able to turn around when you were speaking about the challenges you had and have seen the pride and affection in your daughter's face. it was quite lovely. it's clear you have a great relationship. as my mother's heart just got a little warmed by that affection. i think it's what so many small businesses are about. they're about families and they're about working together
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and learning how to overcome struggles. but i want to talk about two groups of entrepreneurs that i think are looking for a different level of engagement and involvement. we talked a lot about programs. the first is young entrepreneurs and the second are native entrepreneur entrepreneurs. -- entrepreneurs. thank you so much for coming to my office. we had a great discussion. i'm concerned that young entrepreneurs frequently may be able to write the best app or write the best program. they somehow don't know how to translate that into business. i personally believe we are experienceing a complete failure in financial literacy in america that is finding its way into the business community. i'm interested in your thoughts and i'm just going to throw in the native piece and you can have the rest of my time. native americans have experienced a lot of economic challenges, really, from the initial engagement in this country.
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the challenges that sba has in indian country are exacerbated by the challenges we have with jurisdiction and the challenges we have with making sure there is a commercial code people can rely on. so i think i'm interested in how you can work with both these groups of entrepreneurs to engage a future for small business in america, especially in indian country but among entrepreneurs. linda: obviously, i have more experience with young entrepreneurs than i do in indian country. i would look forward to working with you and understanding more of the situations that alreadyre in your state relative to how small business administration can be beneficial to our indian small business developers. i look forward to that, so thank you. young entrepreneur, i've found, are great with ideas.
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some of them have a great business savvy. some have no clue what to do. they're in their garage or dorm room wherever they are and developed this unbelievable app and have all kinds of stuff, boy, somebody will buy me and i will be a millionaire. it doesn't always work that way. i think there's a discipline that needs be shown more to our ntrepreneur entrepreneurs. -- young entrepreneurs. i sit on the board of trustees of sacred heart university in connecticut. one thing we do is implement small business development there. as we try to steps of business but they are creating business, hey have developed business, understanding inat the-- we need to continue that not just in our universities but i have kids in high school that don't know how to balance a checkbook.
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it's really, we need to have that fundamental understanding of economics as we move forward to develop the next generation of young people. >> i don't think there's no dispute we need to grow the inancial literacy. i saw it when i was tax commission. people with ideas, great ability, didn't know how to ile the simplest of tax forms, there's going to be need for some tax forms to be filed. i look forward to continuing our discussion about the challenges of native americans and entrepreneurship. >> thank you, very much. >> thank you mrs. mcmahon for being here today. i appreciate the time you took to sit down with me and many
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members of the committee. i want to say a special thank you to senators blumenthal and murphy for being here today. i think so means time we get caught up in partisanship that e forget there's many issues we are passionate about that share bipartisan nature. i want to thank them for being here to support you here today. i love they work to together especially when it comes to regulatory reform and tax reform and others. i want to thank them for that. we sat down and talked about a number of issues, once of the issues i brought up as we sat down was project i have been working on over the last year. it's legislation that give small businesses a stronger voice in the regulartory
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process. the legislation did pass out of this committee last year and we worked hard with the folks in sba in the obama administration to get their feedback because the goal is to make sure the bill is bipartisan and a success. so we did talk about it. and the purpose of the profit it act is to strengthen the voice of small business to improve the quality of their certification and analysis when they are writing a rule. simply put it says if there's a battle of analysis between ifferent agencies on the economic impacts of a rule, then there should be a third party that will step in review the facts, and then issue an objective assessment. the small business office of
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fficacy testified last year, had completed on the wo yous -- because they believe that the rule would have significant impact on small business. as well with this prove it act there were a number of organizations that supported it. the nfib, the chamber and women impacting public policy, all of those organizations supported it. can i get a commitment to work with me on this legislation and help implement it, given the esire by our president to make sure we are reducing regulatory reforms on small businesses? linda: i did enjoy our meeting. when you talked about this
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legislation i thought isn't that just a common sense thing? we need more common sense and government. if you have two sides that can't agree you have a third party that jumps in. i liked what you are telling me, that it would make the agencies work together before it had to become a public event and help us addressing legislation. i think that it is a good piece of legislation and i would look more about -- learn more about. senator ernst: on a related opic, what are your goals in the first few months should you be confirmed? linda: there are so many things to look at. we want to be mentors to our entrepreneurs. we want to grow and create jobs.
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if i had to walk in the first day and someone said what is the first thing you want to look at today, i would say i want to look at our disaster relief program. disasters don't pick a time. they happen. we need to be prepared for those disasters. i don't know how effective they have in. when sandy hit, the devastation of the east coast and in my state of connecticut, there was a delay of time of response. i don't know if that was because it was a massive storm, resources went so far, but we need to get ready for that. two nights ago tornadoes in georgia killed 19 people. we have to be ready for disaster relief. one small businesses are put out of business for a while, the economy suffers. because they are out of business. we need to get those funds to them and make those direct
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loans to them so they can get back and functioning. that is a passion that i think we need to take a strong look t. senator ernst: i was not immune to those natural disasters. 90 7% of jobs come from small businesses. thank you. >> senator duckworth. senator duckworth: thank you for spending time with me, to address my concerns of the debbie debbie ee use of 1099 employees. s well as the potential as someone who is in the sba, i doubt want that to become the standard that happens to avoid paying health benefits and protections for small business employees.
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i appreciate your address for monopolistic practices at debbie debbie ee. thank you for that. want to focus on one of the goals of the sba. congress created it to achieve two goals. to help american small businesses and make sure they win a fairmont of government contracts. i want to focus on the second goal. as a member of congress, i'm concerned it is not meeting the needs of american small businesses. 98% of our businesses are small businesses. there are significant portions hour of our economy. i often hear from illinois small businesses who are frustrated by clunky and complex federal websites. they are very confusing online tools. they may be fine for large corporations who have teams of
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lawyers to weed through them and figure out what they need. you and i talked about how you are chief cook and ceo in janitor of the enterprise, hese federal tools are failing small businesses. they want to do business with the government but don't know where to start. simply put, the federal government is falling short in tapping the potential of millions of americans who are ready to help agencies achieve their mission with innovative products and services they can provide. when you commit to working with me to streamline and modernize these vital online federal contracting tools? linda: as someone who herself is technologically challenged i concert we understand the frustration of many small business owners who are trying
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to break through the morass of looking at these websites. it is important we make our tools the most direct way they can be so they are easy to use. if you make things too complicated many give up before they can try to get through. it'll have the resources to have it explained. i would look forward to sort through this and say let's bring someone else and. what is it they really need so that when those websites get developed and refined they actually do become a useful tool. >> once companies have use those tools trying to answer these contracts with the government will you commit to working with me to improve the small business prime contracting goals for each agency? we spoke about this. small businesses have a hard time competing for some of these.
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i spoke a little bit about the frustrations at the v.a.. major bureaucracy. i'm hoping that you will focus with me to improve those goals across the federal government and hold people accountable with a real fair portion of the ederal contract. >> i'm happy we've gotten to 5%. i would like to see that go up. so yes, i would look forward, should i be honored to be confirmed, to working with you and the committee. i've been invited to several of your states. i look forward -- i would be happy to sign up to the visit many states that are here. >> i do recommend coming to chicago in the winter. i want to address the prospect of the trillion dollar infrastructure program which he spoke about, i seem to be
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recommitting to a much-needed investment. this goes back to making sure small businesses have a shot at those contracts. they are not just clustered in large cities. i hope that you will commit to working with me to make sure special attention is paid to providing small businesses with their opportunities to compete for disadvantaged small business enterprise when it comes to that infrastructure program. linda: i would look forward to that. the small businesses often talked about, they were shuttled over. they didn't get their fair share. senator duckworth. thank you so much. >> thank you mr. chairman. mrs. mcmahon, a lot of our discussion had to do with the
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size of the federal government with regard to regulatory overreach. not just over the past of administration but over a series of administrations. since 2008, 25,000 new regulations have been issued for american businesses under the obama administration. t has reached nearly 727 billion dollars to require 460 million new hours of paperwork. that is on top of compliance costs of nearly $2 trillion for all federal regulations. 11% of our gdp. the independence office of advocacy is a truly important voice standing up for small usinesses.
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the office of the advocacy intervenes in the regulatory process. it helps to inform other regulators about the impact of small businesses. some of the members here of indicated their concern with the capabilities of the particular office of advocacy. i would like to talk specifically about the last year, the office of advocacy stepped in on behalf of many small businesses in the united states. many family farms and ranches that have been impacted by the epa waters of the u.s.. as you may recall, the small business administration sent a letter, which i would like to submit for the record today, on october 1, 2014, they
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criticized the rule and its impact on small businesses, and hey actually recommended the entire rule be withdrawn. that was apparently ignored. if you were administrator would you be willing to write a similar letter recommending this role be withdrawn once again and reminding our new administrator of the epa of the damage that it has done to mall businesses? linda: i would look forward to working with you and the other senators and others who have brought the issue of it.
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senator ernest, i met with her, small businesses in her state wanted to expand. it would have to get approval for the federal government in order to do that. i'd clearly think that is overreach. i would look to see we had the right regulations and not overburdened someone's. >> would you consider if necessary, would you consider really showing that letter once we get it through the office similar to the way it was done last time addressing it to the new director of the environmental protection agency? >> i would like to find the most effective way to put teeth in that office. >> i can take that as an almost yes? >> i'm looking forward to working with you on that. >> let me move on.
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the upfront loan guarantee, if you are confirmed as the administrator will you look at the continuation of these waivers? >> i would like to make sure that we are making it as easy as possible to get these loans and to help our small businesses. i would like to take a strong look at what did we accomplish, did we get feedback from small businesses that this was beneficial? when i have those answers i would want to see what the merits of that are. >> thank you. >> thank you sen. rounds:.
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>> thank you mr. chairman. it is good to see you. thank you for the time that we spent together. i want to commend you for the comments you made regarding president from's comments about women. i ask you to be a strong voice for women. should you be the confirmed administrator were you commit to preserving the program funding that exist to promote women and minority entrepreneurship to improve these programs? linda: i definitely want to be a strong advocate for women, for small businesses, for minorities in business. for veterans in business. and with members of congress to make sure we have the right regulations tell our businesses growth. >> i think that you have an understanding of the special challenges faced by women entrepreneurs, having been one yourself.
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and minority owned businesses. those are groups that i am focused on to make sure that they have the support from sba that they should get. we've heard a lot of things about access to capital, you heard that when you are running or office. unless we know what the causes are we cannot make the appropriate changes have you a deed those causes and what you would do about that as sba administrator? linda: thank you for your question. when i was running for the senate in connecticut, there was a company that was in the rural area. it was an entrepreneur who made
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grit it looks like spring. they were made by hand. he probably had -- they were mostly women. and he built his business from two to three people. e gotten loans from the bank and it was time to expand the business. he knew the community banger, now he as work orders and more business coming in, in order to do that he needed to add on to is facility. so he went to see his same community banker. and banker told him your asset rich but cash poor. he said i get that. because if i had the cash i would not need be to here to get through this time. what the banker told him was in the past i have been able to loan you this money, but today, under the new regulatory vierm environment, you no longer equal as you did before.
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you would have to over collateralize in order to make the loan to you. that meant he had to put up all asset, house, other assets in order to collateralize a much smaller loan. while entrepreneurs are happy to take managed risk that was simply too much. he did not expand and he didn't grow his business, he didn't hire the next people. that's an example of a regulatory environment that does not allow our small businesses to grow. >> i have heard those comments from small businesses in my tated. some of those resulted from the financial collapse and the under regulation of financial services industry on wall street, there's a cause and
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effect. i'm with you in trying to resolve some of those issues. there was a reason that it changed because there was uncollateralize loans which lead to collapse. we hear a lot about over regulation, when i talk to my small businesses, it's easy to say we're in over regulated environment, what specific regulation is causing you trouble. unless we identify them. -- i'll give you an example. there was an orchid farmer. he should ship cut flowers but hey could not ship whole flowers so we worked to change that. when we moved to improve the regulatory environment that you had asked those specific kinds
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of questions so that we get to the heart of whatever the regulation is that is causing them problems as opposed to some kind of, yes, we're over regulated that doesn't take us far in my opinion. linda: i don't know how you change regulation if you cannot identify them. you have to know there's negative and positive impact. i'm committed to doing that for sure. >> thank you i know my time it up, i'm glad you mentioned one of the first things you would do is look at disaster relief because sba being on the graund and disaster strikes, i was pleasantly surprise by your response it that question. >> thank you. >> senator scott. >> thank you for being here and willingness to serve. according to the 2016 nfib
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urvey, they listed things liar cost of health insurance, federal taxes, tax complexity, economic uncertainly, and locating qualified employees as op concerns. as a business owner you can identify with many of the concerns if your confirmed how would your experience play a roll when determining if sba can eleavate some of the concerns of the small businesses owners. >> having walked in the shoes of small businesses owners, i understand when you're in a -- t's difficult to have access to have access to capital and get loans when you have no collateral.
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i know there are a lot of startups that face those kinds of issues getting capital. i know how to talk about that. you can get a line of credit. when you need it you can't get it. it's really important vise. -- advice. to small companies, to manage cash carefully. it is a great part of success. under capitalization is why small companies fail. having walked in the shoes i understand that. >> one of the things you ention, the cash flow, looking for local employees, you have ad success with triple h and the rock and other folks as well.
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i thought that was funny as well. i was looking how to throw that in. we watched wna and wwe and whole nine yards, that's my plug that there. ou turned pretty red there. i do think one of the challenges small businesses face is how to align the jobs with the skills in the marketplace. i was a small business owner for 20 years, attracting the right talent to the night -- 64% of the jobs are created in small businesses. in colorado and south carolina the number one tourest destination in the world. the reality is our tourism drives a lot of our entrepreneurship.
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how do we align the opportunities and access to jobs with those folks looks for that job in that marketplace. linda: it may be a different twist on that as well. i continue to say when i was campaigning, that was like a four-year period when i did learn about whatevers going on in my state. what i found out was that in many instances, there weren't as much a shortage of jobs as there were trained people for the jobs. i think we have to refocus how we are looking at the jobs market sitting on the board of trustees at sacred heart, i looked at the education programs. are we reaching out to corporations in our companies surrounding our university to understand what kind of shifts and changes we need to make to ulfill that the employment
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strain? we are starting to be more successful but we have a long ways to go. it's one of the things i'm committed to even before i was asked to do this. i would like to continue we are training our folks for the job center. >> i would just close with a comment. i hope that you will look for ways to create synergy withinre government. - within government. to find those jobs that are available. i think that is a great place for the sba to take a unique perspective on their mission and find ways to improve the outcome of the average person
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who starts in a very difficult place and finds entrepreneurship as a path forward. linda: thank you very much. >> thank you senator scott. senator coons. sen. coons:: welcome mrs. mcmahon. i thought we had constructive informing meeting last week. i'm thrilled to have the opportunity to continue the conversation. it was about the key role the sba can play helping small businesses grow. the importance of accessibility of capital, strengthened ip, the value of mentoring the programs like score, federal government manufacturing extension program. which help small businesses to grow.
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we have a great community we hope you'll come visit. there are a number of iconic businesses, dogfish head, that started with sba loans that help them grow in their early stages. think you will see the real impact sba has had in our state worked well with my office. i love doing small-town business to see the impact the sba programs can have. we talked about your knowledge with intellectual property to protect some of the key innovations that your business engaged in. i talked about my passion for patents so small businesses know how to protect what they have. do you agree it is important to educate small businesses about
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how they can protect what they innovate through patents or rademarks or other ip? >> it is something that was such a large part of wwe, we wanted to make sure when i was there, sometimes you bring a little bit of knowledge to be dangerous or you have enough knowledge to know you have to o further for expertise. as the company developed intellectual property, that we rotected it. it was important we registered trademarks. to protect -- we have invested so much money to grow and develop that product or that intellectual property, but if you don't protected, and then someone else takes it away from you you don't have a leg to stand on because you didn't defend your him property.
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it is important to make sure young businesses understand the value of what they create and that they need to protect that. you have to extend some money to do it. in the long run you are protecting your investment. >> i look forward to working with you on that. we also talked about how this is an area of general broad agreement in what is often an otherwise contentious subcommittee. the fact that you are introduced positively by two gentlemen you ran against was a moment of agreement about the skills and value that you bring. it is my hope it will work on the program to make sure we're finding the right balance between promoting loan programs and a return to subsidies. let me mention to other things. i've had the joy of working on
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extending the tax credit, companies that use technology and innovation to grow quickly. i would be grateful for any help you could offer in are working together to inform or small businesses that are technology centered about that opportunity. and the last congress, to advocate for the score program, something that was launched by dupont retirees. it helps small businesses that really need to get their first business plan together or need specific skills. i would be interested in hearing whether you can see a way towards supporting score and sing this as a critical program if you are confirmed. >> thank you very much. statistics show whether it is women in businesses, you are more successful with mentors.
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it is someone you can talk to to give you advice. especially underscore when they have taken it upon themselves. these are seasoned and accomplished professionals. to have that as a resource is fantastic. i would like to see more and more mentoring. we will have more and more businesses be successful. >> it is a low cost and high impact program. i would love to work with you on that. i'm grateful you are stepping up and are taking this important role in the trump administration. >> thank you, senator coons:. >> it is so good to be with you. someone of your caliber and experience. willing to put yourself in this apacity. one of the advantages to being lower on the totem pole, i get here hear the brilliant questions of my colleagues.
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one of the disadvantages, i have to rework my questions when my questions that i intended ask -- i will attempt to ask some things that have not been addressed. my dad has grown a commercial distributorship over the years. now my brother has taken over that business. i understand the unique challenges and opportunities that are associated with small businesses. this town tens to be rigged against the little guy, regulatory things to crowd out competition. our tax code is another example. the small business
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administration, it has been mentioned many times, it has an opportunity perhaps unrealized advocate on behalf of small businesses. in each of the different federal agencies, through the ffice of advocacy. that is going to be a point of emphasis on your part. the regulatory flexibility act of 1980 tasks this office of advocacy with monitoring federal agency compliance with the act, assisting regulatory agencies to mitigate the potential adverse impact of rules on small entities. that seems like a lot of work. this is, comparatively speaking, a small department
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compared to department of defense and whatnot. i would be very interested, 180 days into your service, to get feedback to this committee, my office in particular, about what you have learned, how its operations might be improved. if additional authorities are required to advocate on behalf of of our nation small businesses and young firms, that would be instructive to all of us. do i have commitment should you become our next head of the department? linda: i look very forward to reporting back to all of the members of committees things i have found where i have found issues or problems that i need help and guidance, and i hope that you would not hesitate to reach out to me to say these are some things that really -- that i really want you to take a look at. it is going to be a lot for me to absorb.
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> you will make every effort within 180 days to provide a report. >> i will get back to you as soon as i can with that in that time. >> that is fair enough. the second question pertains to basic government efficiency, avoiding duplication. something you indicated is important to you. can i get a commitment you will find efficiencies to streamline the work at the sba? linda: i definitely want to streamline. where we need to streamline, where we need to add we need to add. >> lastly, i know back in my great state of indiana, we have stumbled upon some unique approaches to assisting our small businesses, some which may be replicated by other states. no doubt other states have
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their own examples. i think there might be an opportunity to be an effective clearing house for best practices, emerging from the local level or state level, perhaps even best practices that we have seen in other countries. with your commitment to work with me on that, perhaps we will be able to assist our small businesses. can i get your commitment to explore that as well? >> i am a firm believer in best practices. as we look across what is going on, we will identify some areas that need to be sure not -- so i like best practices. >> we will go to senator martin. senator martin: thank you. we talked in my office, i raise
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this issue of net neutrality with you. the reason i did was that it is not really well understood. 68% of all venture capital goes to software and internet startups. they are small businesses. one of your counterparts at the fcc, he is talking about repealing those rules, which does make it possible for new tartups to reach all 320 million people in america. are you familiar with that? what is your general philosophy
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towards those areas of economic development in the small business area in our country? >> i think yesterday when we spoke about it i aid thank you for informing me about this. i have not dealt with net newt ralt in any of the businesses that i've been involved in. i understand your concern from yesterday that we don't want any restrictions on access to the internet because it can impede small businesses. so i would like to continue to learn more and learn more from you. > i thank you. sbir, some staggering numbers from massachusetts since the program was created in 1982. massachusetts small companies have received 20,000 small siness grants and 2300 new
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firms were created out of those grants creating tens of thousands of new jobs in our state. we very much rely upon sbir grants as part of our long-term business planning. senator shaheen and i and others have been advocating to make this a permanent program. have you had a chance to look at it? and what would you think toobt prospects of your support for making it a permanent program?
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if we want to enhance it, i would like to learn more from you and others about that. >> climate change. fema and the sba have had to respond in order to give help to louisiana affected by historic flooding or along the northeast with historic storms that get our coastlines and in each instance fema and the sbab have responded to these natural disasters. climate change is only going to get worse. have you looked at that issue of what that impact is and what planning sba might have to make in order to deal with these changing conditions especially
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ts impact on small businesses? >> you indicated to me how it's driving the cod north, lobsters north. so is the fishery industry there is really being impacted by that climate change. those are very real statistics that we -- i want to learn more about and to know not only as it rewlailingts to massachusetts but where else in our country where small business i think can be affected and we should take a more active role. > in conclusion, after the brothers attacked boston on memorial day the sba stepped up to help the small businesses in that area so that they could
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recover. i think that's just another great function not fully nderstood.
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something i think it should be looking at to get capital into the system flt something else your predecessor did trying to correct for bad policy coming ut a lot of folks who were imprisoned for nonviolent drug use, would come out of prison
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and have paid their debt to society but wouldn't be able to get gravents, food stamps, public housing, strips in many ways of their ability to compete. unfortunately drug laws enforced are on minorities and poor. four times more likely to be
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stripped of communities to compete. your attention to that continuing that program is something that would be really helpful. there's been a lot of talk about the sba and travepbs parnesy. i just want to make sure that you're committed to helping us have transparency when it comes to loan soss we can have better metrics about how loans are doing and being directed toward different populations. i appreciate that. really quickly, i have a lot of problems with the regulations as well, something i think there's a lot of opportunities for people to work on both sides of the aisle. take, for example, the fact that the number one employer in america if you include contractors with the federal government is the federal government. it creates tremendous jobs. but as we've heard, navigating that rules and regulations is difficult. the people who mention our
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pension funds which has been given hundreds of billions given to one outlet which states use actly outperform the big folks but because of the way these regulations are it's very hard for those smaller businesses to compete. in the technology field this is really difficult because small tech firms often provide greater service can't compete prom gated is too difficult to navigate. so i just want your commitment as you look at small businesses in general looking here at the way we do our processes is really critical to empowering mall businesses.
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> thank you very much. kennedy.
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now, it's been many my experience, and i've been in america longer than in washington, i've been a senator for three weeks. you can't be for jobs if you're against business. and business women and businessmen need five things. they need low taxes, they need
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reasonable regulation, they need capital, they need decent infrastructure, and they need a skilled workforce. now, i realize s combnch a can't provide all of those but tell me how you're going to help small business women and men get those things. >> for one thing, thank you very much. i too enjoyed our visit. >> thank you, very much. senator kennedy. i too, enjoyed our visit. a lot of what you talked about as we if i were fortunate to be confirmed. >> you will be. >> thank you. did you hear that. i think it's really important that we do mentor the small business. a lot of times, there is my
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business, there is what i want to do, i'm going to come if and show you, they come in with abstract business plan if you help them get it right and get the t crossed and i dotted, have you to say there is not a good idea. this business does not look like it has legs to success. there's not enough of that kind of men torg. i think all of the things you idea is blueprint for success e fewer taxes, all of that. you don't have the basic understand to have the successful understanding. it needs to be that aspect that will help us grow more quality that do have pportunity to succeed. >> most of small businesses fail, i
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understand that. a lot of really smart people are afraid to try. they a atrade of chances of success. they start looking at the different permits and regulation and rules on top of that you have to have capital and second mortgage on the home. it's insurmountable. i hope you would -- i do think you will be confirmed. i think you're qualified for the position. and i think the president has chosen well. i'm familiar with what sba does and i know you are too, i hope you go beyond, i hope you would be advocate for small business in this administration because in my state. 90 90% of the jobs created by speem who take risk. when they stop trying in my part of america, we're in real trouble. so i hope you'll take on that role. if there's something i can do, let me now. good luck. >> i don't think i could be an advocate
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for sba if i were not small business, i think they are are one in the same. >> thank you. >> senator shaheen back to you. thank ou, mr. chairman. i have two questions. as you're aware the small business administration is a relatively small investment in this economy. if you look at how it compares to many others r in the federal government there's is not the largest. as we have heard from all the members of this committee, small businesses is important to the economy, to job growth, we need do what we an to sportupport them. it's
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true in rural areas that new hampshire is a small state. when there are cuts to the sba that has an impact on rural america because one of the place they can get support as ou heard is from sba for guidance or issues that come up with their businesses for loans, so it's very significant. and i want to hear from you that you will be an advocate for the budget of the small business administration because what we saw in the last republican administration is that they cut sba budget by about 32%. can you resayassure me you'll do what you can to
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advocate for sba. >> i want to make sure we have the right budget to accomplish what we hey'd to accomplish. i think we can best take some of these dollars to move it over here. those the right way to look at budget and make sure we are asking for the right appropriates. let's layout the program here what we want to accomplish, here is what it's going to take. when it was budget time. we went back to zero-based budget. you had to justify, your department and you're expenditures. i do think there's a pealing back of my understanding of the budget and where those dollars are being spent and if it's being spent effectively. i will be
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advocate to make sure it runs effectively and efficiently. >> ith that in mind i want to all your attention to what was reported this week that the new administration is preparing budget cuts. you blamay have seen this. the blueprint -- one the sbir program, the small business innovation program we have heard from variety of members attesting to the variety of programs. -- innovation to the department of defense and hearing before the armed services committee we heard from experts that the most effective existing program
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to help our military get the innovation they need is the sbir program. so i would urge you to look at that carefully as there are discussions about utting that program. the blueprint talks about cutting is -- you expressed at the hearings, you expressed -- it's been raised by a number of members, i would have severe reservation about cutting so i would just urge you to take a hard look at some of those issues and advocate for what's in the best interest of our mall businesses. >> thank you.
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>> thank you very much. finally we'll turn to senator rubio. he will be the last. it is a moe mennous momentous occasion. >> hank you. i appreciate it. we have known each other for a while. we thanhad an opportunity to spend some time ogether. i will focus on one issue that is important to the state of florida. the zika virus had an impact. something we had not seen is it happened during the zika outbreak this summer and they were telling people do not visit if you're pregnant certain geograph ir ache geographic areas. a lot of people think it doesn't impact he night dlubclubs ant
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restaurants but it effects small businesses, uber drivers o the florist, the wedding that got cancelled. one of the things that we discussed was an effort i made last year that the previous administration was pen to redefining to address hardships that small businesses ace during public health crisis. so i would just ask is that something you would be interested in exploring and
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looking at? there needs to be some predictability. but i hope that's something i can encourage you to be open minded about, because while i don't think we'll have many of these there is nothing to say it couldn't happen again. our ability to help some of these small businesses who are impacted by the outbreak of a pandemic in the future is a new dynamic involved in international travel. so i don't know if you have had a chance to explore that issue a little further but i hope you'll be open mind pd and work on achieving it. i think we could unfortunately see that play out in a number of different places in the future. >> i have not had an chance to look at it but i look forward o working with you on that. >> thank you. i would encourage you to come to florida and visit -- i know everybody wants you to -- >> be there in the winter? >> yeah. we could chedule it some time between november and march. but there are real dynamism in our small usiness community. i pointed
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people to how dynamic first generation americans are. in some of the key areas i live people know 8th street. >> you could have the greatest product in the world. one of the things that happened, when they decide o expand the road in that area and go into construction it's great for the future. for the next year and a half customers think it's a hassle to get in and out. it's devastating for small businesses. who are constantly watchdogs for any public policy that has a disproportionate impact. at ome point when it's cold and snowing everywhere else we'll find the right place, whether
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it is central florida, we have small business success. i thank you for the opportunity we have ad to talk. >> i as invited to north dakota. >>
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it is great when the salmon are unning. >> with that we'll conclude the hearing. thank you o much for your willingness to serve. senator shaheen wanted me to express her appreciation and for being here. it has been a good hearing. we have a very diverse group of senators with different ideas about things. that's what makes america great. we are going -- we have been talking about trying to move this as quickly as possible. we feel very good about getting you confirmed.
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it's not over until it's over. we'll try to move this next week. we're booked up this week but we'll try to move it to next week. we are going to leave the record open until close of business tomorrow, wednesday, january 25th. we'll keep it open for two weeks to edit statements. so with that thank you. thank you to your family for being so supportive. with that our committee is adjourned.
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