Hoyer: Small Businesses and their Employees Deserve Better than They're Getting

"Madam Administrator, welcome. Glad to have you with us. As we all know, small businesses are the heart and soul of America's economy. More than 36 million people are employed, in excess of 62 million American workers work for small businesses. That's 46% of our workforce. These small businesses and their employees deserve better than they're getting. The administration's mantra continues to be: You're on your own. That's certainly been the SBA's approach over the past year and a half. A proposed 67% cut that would stifle assistance and resources that help small businesses grow: the elimination of programs that help women and minority business owners who face extra hurdles to starting and growing their businesses - which I'm sure you know a lot about - withholding disaster loans from states because of politics, such as occurred in Western Maryland, new fees imposed on small businesses and limits on borrowing, attempts to shrink the agency under DOGE and limit the good it can do for so many millions of our people, and eliminating 15 out of 16 entrepreneurial development programs. Let's be clear: the SBA's role isn't to give handouts, it's to reach a hand out; a helping hand to those who need some extra support while they do the hard work of creating jobs.

"President Trump has called himself, quote, 'The greatest jobs president God ever created.' Excuse me, God. You can't make that frankly absurd claim if his SBA continues down the path that has been on, Administrator Loeffler, you'll have a clarity, I'm sure, for our subcommittee today. Why? Under your leadership, the SBA is making it harder for Americans to start businesses, grow businesses, and hire more American workers. I hope you're prepared to explain why you and the President continue to tell American workers and small businesses owners, 'You're on your own,' especially in this economy where inflation and higher costs, driven by the President's war of choice in Iran, are causing so many small businesses and working families to struggle. I heard just yesterday from a small business owner in La Plata, Maryland, in my district, that sells, rents and repairs musical equipment for families and schools [that] their business is struggling because of the high costs resulting from the President's illegal tariffs. Its owner reached out to me, in advance of today's hearing, he wrote, and I quote, 'Unlike large national chains, small businesses have very limited ability to absorb these rising costs. As prices increase, fewer families can afford to participate in school music programs, and school music departments face greater challenges stretching already tight budgets. I hope your subcommittee -' he [was] talking to me - 'will consider the impact these tariffs have on local businesses like ours and schools and families we serve.'

"Small businesses like the one I just spoke of deserve our help, and they deserve answers. Instead of telling them you're on your own, we ought to be doing everything we can to help them make it in America. I look forward to hearing, Madame, your testimony and your observations. And I'll ask some questions about why we have less resources than the Congress believed were necessary. I thank you, Mr. Chairman."

RANKING MEMBER HOYER: "Madam Administrator, the Congress appropriated funding for SBA's entrepreneurial and development program, some of which you've talked about: SBDCs, women business centers, SCORE, veterans, business outreach centers, and others. Is the SBA currently withholding, delaying, or otherwise failing to obligate any of that appropriated funding?"

ADMINISTRATOR LOEFFLER: "So, Ranking Member Hoyer, no, in fact, we are facilitating the release of those funds that under the Biden Administration, as far back as 2021, were never provided, which were required statutorily to be sent out. We're managing $340 million when we came in on day one that had never been disbursed, and we had to entirely fix the technology that supported it and the grants management program. We've rebuilt that. We rebuilt it ahead of schedule, and now we've already got, already a $106.5 million of that backlog from the last administration out, while getting most of what we've committed to getting out. And we will - I commit to you that we will follow the law and get the funding out as deemed appropriate by this body."

RANKING MEMBER HOYER: "Have you received any directions from OMB at any time during the course of your administration at the SBA, to not disburse funding that has been appropriated?"

ADMINISTRATOR LOEFFLER: "Well, we're working closely, both internally and externally. So, we work with OMB, we work with our internal political and career colleagues to ensure that the funds are going out as directed, as intended by Congress and that they meet the law and that they meet the executive orders. And so, we have continued to look at meeting all those objectives and making sure that the programs - I think small businesses would be interested to know that some of the programs that were lined up for funding were things like the Bi-National Institute for Human Development, which supports illegal aliens in Guatemala and Mexico and the Chinese Mutual Aid Society -"

RANKING MEMBER HOYER: "Excuse me, Madam Administrator, I have limited time and my question was pretty simple, which I don't think you've answered. And that is, have you been directed at any point in time since you have been the Administrator of the SBA by OMB and Mr. Vought - not necessarily him personally - but OMB, to not expend money that had been appropriated by Congress?"

ADMINISTRATOR LOEFFLER: "I have been directed to follow the law, and in doing so, I am following the way the White House executive orders. I'm working internally, and we're making sure that everything that is that you have directed to get out gets out. But we are not going to blindly write blank checks like the last administration did to the Chinese Mutual Aid Society that got $4 million -"

RANKING MEMBER HOYER: "I know - let me reclaim my time, because my time is short. You didn't answer the question. I didn't ask you whether you have done things that are prudent to do. I asked you, have you been directed by either Mr. Vought directly or OMB not to expend funds that were appropriated by the Congress of the United States that you're avoiding. That's an either yes or no question."

ADMINISTRATOR LOEFFLER: "I think I've been very clear that we are following all requirements to get -"

RANKING MEMBER HOYER: "No, that's not very clear."

ADMINISTRATOR LOEFFLER: "I do not work directly on grant disbursements, and I'll be happy to have my team follow up with you to clarify. But all of the funding that we've committed to getting out, we are getting out. Let me be clear: the Biden Administration did not get their money out. $340 million, we are cleaning that up by applying not just the technology, but the framework to make sure grant funding to the nonprofits that are not blank checks to -"

RANKING MEMBER HOYER: "Please, Madam Administrator, my time is very limited, and you are filibustering. Now, with all due respect, you're closing up [in] cities around the country. in terms of your reorganization to which the Chairman referred. Is that accurate?"

ADMINISTRATOR LOEFFLER: "That's inaccurate."

RANKING MEMBER HOYER: "Okay. What is accurate?"

ADMINISTRATOR LOEFFLER: "When I came in, we had 132 offices. I think people would be shocked to know that we had 132 offices, 29 of which had 0 or 1 employee, and then -"

RANKING MEMBER HOYER: "Okay. Are you closing offices?"

ADMINISTRATOR LOEFFLER: "Yes, we absolutely are."

RANKING MEMBER HOYER: "Can you name me an office that you are closing that is in a blue city or blue district? One?"

ADMINISTRATOR LOEFFLER: "We don't classify them by blue city -"

RANKING MEMBER HOYER: "Can you name one?"

ADMINISTRATOR LOEFFLER: "We are making several -"

RANKING MEMBER HOYER: "The President said he did consider the politics."

ADMINISTRATOR LOEFFLER: "We're changing areas -"

RANKING MEMBER HOYER: "Can you name one, Madam Administrator?"

ADMINISTRATOR LOEFFLER: "I can name several. Yeah, I can tell you we have had to move out --"

RANKING MEMBER HOYER: "What are they?"

ADMINISTRATOR LOEFFLER: "Los Angeles, Portland, New York, Chicago, Atlanta."

RANKING MEMBER HOYER: "No, that were closed. Can you name me one that is scheduled to be closed that is not in a blue district."

ADMINISTRATOR LOEFFLER: "Yeah, I'm sure I can. I'll be happy to get that district or the city. We don't target them by blue or red -"

RANKING MEMBER HOYER: "No, I understand, but it would be -"

ADMINISTRATOR LOEFFLER: "- we target them, by, 'Is there anyone working in that office?' Let me give you an [example], we had an office for four years that had no employees working in it. We didn't even have access."

RANKING MEMBER HOYER: "You ought to close it. Matter of fact, it was closed if you had no people working in it."

ADMINISTRATOR LOEFFLER: "We were paying - the taxpayers were paying for it. The taxpayers are now saving $32 million thanks to -

RANKING MEMBER HOYER: "Madam Administrator, with all due respect, I've asked you two direct questions, you have not answered either one of them."

ADMINISTRATIVE LOEFFLER: "I'm here to advocate -"

RANKING MEMBER HOYER: "That's regrettable. I will send you some questions in writing. I would hope you would answer them. Thank you very much."