Committee on Small Business Holds Hearing on SBA-Backed Lending Programs

WASHINGTON, D.C. - Today, Congressman Roger Williams (R-TX), Chairman of the House Committee on Small Business, held a hearing titled, "Pathway to Capital: The Role of SBA Lending in Supporting Main Street America" to examine the role of government-backed lending programs offered by the Small Business Administration.

"Access to capital is one of Main Street America's top concerns," said Chairman Williams. "As President Trump's pro-business policies create economic prosperity and certainty, receiving assistance through SBA's government-backed lending programs is vital for entrepreneurs to innovate and grow. Unfortunately, these programs were grossly mismanaged by the Biden-Harris Administration. I want to thank Associate Administrator of the SBA Office of Capital Access, Thomas Kimsey, for sharing how Administrator Loeffler has cleaned up the prior Administration's mess, putting guardrails back in place to restore accountability and safeguard taxpayer dollars."

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Watch the full hearing here.

Below are some key excerpts from today's hearing:

Chairman Williams: "Returning manufacturing to America is a top priority that I share with President Trump and Administrator Loeffler. My bill, H.R. 3174, the Made in America Manufacturing Finance Act, brings much-needed access to capital for our small manufacturers. The question would be, how critical is increasing the loan limit for small manufacturers to onshoring American manufacturing?" Mr. Kimsey: "Thank you, Chairman, for that question. Certainly, you know, the limit increase-that's one of the big things I get, you know, as I travel across the country and hear from other lenders-is a need to increase the limit from five to 10 million dollars. We know that manufacturing is capital-intensive. We know that many machines cost over a million dollars, just in, without real estate or buildings, and that need is desperately needed as we work to onshore and bring manufacturing back to the United States. We've lost over 70,000 manufacturers and millions of jobs over the last 20 years. As I was in Utah last week, meeting with lenders and a manufacturer, that was his question: I could expand and create more economic development here in my community-create jobs-but without the increase above five million dollars, I can't do that. This business has been in business for over 50 years and can create many new jobs."

Rep. Alford: "In your opening remarks and written statement, you said since January 20th, the SBA has approved nearly 53,000 504 and 7(a) loans, 28.3 billion dollars in volume. There was a 14% increase in loan volume compared to last year. This is a remarkable success story, sir, under the direction of President Trump and Administrator Loeffler. You guys are doing remarkable work there. How do you cut down on the fraud, like you have done, given greater security through underwriting and these loan programs, and still have a 14 percent increase? How do you do it?" Mr. Kimsey: "Under President Trump's leadership and Administrator Loeffler, we've been able to do that because of our lender excitement and just the leadership here of wanting to get back to lending to Main Street America. I mean, that's what our lending community says to me and what I hear when I talk to them. I just had one last night call me, saying: thank you for what you're doing. We will lean in and do more lending under the SBA programs. As I traveled last week, I heard the same thing because they know what we're doing. We're focused on Main Street lending, providing capital, none of the political things that were going on before, and just getting away from doing what you do. That's another thing that they've shared that we have principles in place, guardrails in place, so they know what's expected of the SBA. That's what's driving the volume, and that's what's going to continue to drive lending to small manufacturers and small businesses across this country because we are going to create this manufacturing boom."

Rep. Wied: "In Wisconsin's 8th District, manufacturing is a key industry, with almost a quarter of the working population in the district. You know, many of these manufacturers are excited about Republicans' commitment to reshoring manufacturing in our district. How will the newly announced 7(a) manufacturers' access to revolving credit-that program-how will that help with onshoring?" Mr. Kimsey: "Thank you for that question. Certainly, the MARC program provides additional working capital to our manufacturers. As we all know, small businesses' working capital is critical, and certainly from the manufacturing perspective, providing this much-needed capital as they expand and grow, and giving them the flexibility-flexible terms, not only for them but for our lending partners-will provide much-needed working capital that is needed. We are excited, alongside the proposed increase in limits, that this will work really well together, providing not only working capital but long-term permanent financing that the SBA program does so well."

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