- 5/21/2025
On Wednesday, the Senate Small Businesses & Entrepreneurship Committee held a hearing entitled, ‘Fueling America's Manufacturing Comeback,’ to hear testimony from SBA Administrator Kelly Loeffler.
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00:00:00And I will begin with my statement, and we'll be joined by Senator Markey shortly.
00:00:08We are here today to discuss how the Small Business Administration, the SBA, can expand
00:00:14and support investment in our nation's small manufacturers.
00:00:20Last week, the committee examined how the Small Business Investment Company Program
00:00:24could help channel more private capital into American manufacturing.
00:00:29To better understand the urgency of this situation, we need to take a closer look at the numbers,
00:00:36and let me tell you folks, this is staggering.
00:00:39Over the past 40 years, we did not simply lose manufacturing jobs.
00:00:44We witnessed the steady erosion of our industrial sector to China's delight and advantage.
00:00:52Over the last 25 years in Iowa alone, we have lost nearly 1 in 6 manufacturing jobs.
00:01:01American manufacturing employment has fared even worse over the last 40 years, falling
00:01:07by 28 percent and reaching depths we haven't seen since 1946.
00:01:15Only 3.7 percent of Americans are employed in manufacturing today, half the share we
00:01:21had 40 years ago, and barely a third of our peak in the late 60s.
00:01:27To put that in perspective, there are nearly twice as many people working in state and
00:01:33local governments than on the factory floor.
00:01:38This is not simply an economic decline, it is a hollowing out.
00:01:42The steady loss of skills, infrastructure, and investment in manufacturing undermines
00:01:47our ability to innovate and scale new technologies, leaving our homeland weakened and vulnerable.
00:01:55The reason for this is not a mystery.
00:01:58Government policies that encouraged offshoring production without regard for the long-term
00:02:03damage done to our domestic productive capacity.
00:02:07Today the consequences are visible in every corner of America.
00:02:12Shuttered plants, decaying factories, and empty parking lots stand as monuments to
00:02:19the multi-generational disintegration of hard-earned knowledge, talent, and tradition that once
00:02:26formed the bedrock of our nation.
00:02:29But here's the good news.
00:02:31We have a President and SBA Administrator who understand what is at stake.
00:02:37They recognize the size and complexity of the work needed to revitalize American manufacturing
00:02:44and are committed to rebuilding our industrial strength from the ground up.
00:02:49As we discussed during last week's hearing, the SBIC program will continue to play its
00:02:54vital role in expanding our productive capacity by facilitating private investment and through
00:03:01federal partnerships like that between the SBA and the Department of Defense's newly
00:03:06established Office of Strategic Capital, something I championed in the annual defense bill.
00:03:14But that is only the beginning.
00:03:15We must do more.
00:03:17Today we welcome Administrator Loeffler to discuss the SBA's Made in America Manufacturing
00:03:23Initiative and the efforts underway to support the small businesses that make up 98 percent
00:03:29of our nation's manufacturing base.
00:03:32Part of that effort involves the Made in America Manufacturing Finance Act, which I was proud
00:03:37to introduce last month alongside Senator Coons.
00:03:41This bipartisan legislation would double the SBA-backed loan limit from $5 million to $10
00:03:47million for small manufacturers who need that capital to modernize, grow, and train the
00:03:54next generation of American workers.
00:03:58That investment will have a meaningful impact across the entire supply chain.
00:04:03Because the smallest startups to the largest firms all rely on small manufacturers to get
00:04:08the job done, revitalizing our industrial base and reclaiming our ability to make things
00:04:15in America starts with small businesses.
00:04:18We must ensure that cutting-edge innovation and high-speed, high-quality production happens
00:04:24right here at home, not overseas.
00:04:28If we are serious about competing with and beating China, creating good-paying jobs,
00:04:34and restoring economic resilience, we must empower our small manufacturers to lead the way.
00:04:41This bipartisan legislation takes a bold step in that direction.
00:04:46I am grateful that we're joined today by Administrator Loeffler, and I look forward to hearing from
00:04:51her how Congress can better equip the SBA to invest in the industrial revitalization
00:04:57of America.
00:04:59And with that, now, I recognize Ranking Member Markey for his opening statement.
00:05:04Thank you, Madam Chair.
00:05:06Administrator Loeffler, you were on the committee where you touted the soon-to-come golden age
00:05:13for small businesses.
00:05:14We have seen an unprecedented assault by the Trump administration on Main Street.
00:05:20Here's how the golden age of Trump is going.
00:05:23The cost of manufacturing supplies has increased by 17 percentage points since President Trump's
00:05:29inauguration, according to the Institute for Supply Management.
00:05:33The National Small Business Association's May economic report found that the number
00:05:38of small business owners confident in their business financial future fell to the lowest
00:05:43point in the survey's 16-year history.
00:05:48The Wall Street Journal's Small Business CEO Confidence Index, released April 25, reported
00:05:53that 57 percent of small businesses and their owners believe the economy has gotten worse,
00:06:00a staggering 43 points higher than January.
00:06:04The University of Michigan's May survey of consumers, the benchmark study for consumer
00:06:10confidence, saw the second lowest level ever recorded.
00:06:16And Americans now believe prices will increase by 7.3 percent in the next year, the highest
00:06:24inflation expectation since 1981.
00:06:28For small business administrators, unfortunately, the golden age of the promised gains has turned
00:06:35into the dark age of certain pain that small businesses are now suffering.
00:06:42All of this is a direct result of President Trump's self-inflicted economic disaster.
00:06:47Trump's destructive, chaotic, and thoughtless tariff policies are turning Main Street into
00:06:53Pain Street.
00:06:55Last week, we heard from 100 percent, we heard 100 percent small business U.S. manufacturer
00:07:01located in Akron, Ohio, testifying before the committee.
00:07:05She said, quote, without immediate relief from the tariffs and ensuing trade war, U.S.
00:07:10manufacturing companies like mine will not survive the summer.
00:07:14Small businesses are being forced to shut their doors because of President Trump's destructive
00:07:20tariffs.
00:07:21Consumer confidence levels are taking an historic nosedive.
00:07:27That is happening day after day.
00:07:30And costs are skyrocketing.
00:07:32Walmart just announced it was raising its prices over tariffs, so you can only imagine
00:07:38how the Trump tariffs are crushing mom and pop stores across the nation.
00:07:44Small business owners, please for help, are falling on deaf ears as the President tells
00:07:49them to prepare for short-term pain.
00:07:52Well, many of these businesses aren't going to survive this so-called short-term pain.
00:07:58Even the National Chamber of Commerce agrees with me on this.
00:08:02Last month, the National Chamber of Commerce followed my lead and called on the Trump
00:08:08administration to develop a tariff exclusion process to prevent, quote, irreparable harm
00:08:14to small businesses.
00:08:16Because these calls have gone unheeded by the administration, I introduced the Small
00:08:21Business Liberation Act two weeks ago, and I will be seeking unanimous consent today
00:08:26on the Senate floor to provide necessary relief to small businesses across our country
00:08:32from this tariff regime.
00:08:34Ninety-seven percent of all businesses who engage in trade are small businesses.
00:08:39I will take the motion to pass the bill today to eliminate the tariffs, but I will not hand
00:08:48the bill over to the administration.
00:08:49The administration is committed to having the small businesses, small businesses, and
00:08:55small businesses act.
00:08:57As you know, Mr. President, as you know, we have a drug epidemic in the United States
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00:11:21and around the world.
00:11:30괜nen.
00:11:31These firms represent 99% of all manufacturers in the US.
00:11:33These firms represent 99% of all manufacturers in the US.
00:11:34They're critical across every industry, America, Australia, France and many countries.
00:11:40from aerospace, defense, and agriculture,
00:11:46to electronics, transportation.
00:12:03Equip our military and sustain our industrial strength.
00:12:07Thanks to President Trump's fair trade, pro-growth,
00:12:10economic agenda, demand for American goods is rising,
00:12:14and small manufacturers are stepping up to meet it.
00:12:17In just the first 100 days,
00:12:19the SBA has seen manufacturing loan approvals
00:12:21increase by 74% in our 7A loan program,
00:12:25compared to the start of President Biden's term.
00:12:28Our producers are hiring again,
00:12:30investing again, and growing again,
00:12:32but they're ready to do more.
00:12:34Over the last four months,
00:12:35through the SBA's new
00:12:36Made in America Manufacturing Initiative,
00:12:38our agency has met with more than 300 small manufacturers.
00:12:42Access to capital is one of the most consistent concerns
00:12:45I hear, no matter what district,
00:12:47industry, or state I travel to.
00:12:50The Made in America Manufacturing Finance Act of 2025
00:12:53is about ending our reliance on adversaries like China.
00:12:56It's about forging a stronger, more resilient economy
00:12:59powered by American workers,
00:13:01and it's about unleashing the full power
00:13:03of the private sector to rebuild American industry
00:13:06from the ground up in every state across our nation.
00:13:09I'm so grateful to our House and Senate leaders
00:13:11for introducing this critical
00:13:13and timely bipartisan legislation,
00:13:16because delivering opportunity to American workers
00:13:19and industry is a very unifying objective.
00:13:22With our nation poised for even greater prosperity
00:13:25and opportunity in the months to come,
00:13:26now is the time to meet the moment.
00:13:28Since January, President Trump has cut core inflation
00:13:31to its lowest level since 2021.
00:13:34He's secured over $10 trillion in private sector investment.
00:13:38He's delivered more than a half a million new jobs
00:13:41while deregulating after the last four years
00:13:43of massive bureaucratic expansion,
00:13:46and he's brought dozens of countries, including China,
00:13:48back to the negotiating table for fair trade deals.
00:13:52Our economy is spring-loaded for growth,
00:13:54especially on Main Street,
00:13:56and I'm pleased to report that the SBA
00:13:58has never been more prepared to help small businesses
00:14:01lead the America-first economic comeback.
00:14:04When we arrived, the SBA was bloated and dysfunctional,
00:14:08weighed down by a work-from-home bureaucracy
00:14:10that promoted a partisan political agenda.
00:14:13The Biden administration presided
00:14:15over unprecedented levels of fraud
00:14:18and four straight years of failed audits.
00:14:20Our flagship 7A loan program was mismanaged
00:14:23to the tune of $400 million in negative cash flow
00:14:26in just one year.
00:14:28Oversight and accountability had broken down,
00:14:30along with any sense of fiscal responsibility
00:14:33to taxpayers.
00:14:34Common sense had left the building,
00:14:36along with our workforce.
00:14:38That era is over, and it is a new day at the SBA.
00:14:42I come to this role with three decades
00:14:44of private sector experience building small businesses
00:14:46and helping them grow.
00:14:48I quickly set out about streamlining operations,
00:14:50enhancing accountability, and ensuring that small businesses
00:14:53had the resources they need to thrive.
00:14:56After reviewing the agency's financials
00:14:58and operating metrics,
00:14:59we launched a full-scale reorganization
00:15:01to right-size the SBA back to pre-pandemic staffing levels.
00:15:05We've shifted resources that had been consolidated
00:15:08in Washington back out into the field
00:15:11among our 68 district offices and local communities.
00:15:14We canceled wasteful contracts
00:15:16for total savings of more than $3 billion.
00:15:19I'm proud that we're working alongside the DOJ team,
00:15:22who are not partisans, but patriots and business leaders
00:15:25who care about the future of this great nation.
00:15:28We also took urgent action to restore
00:15:30the financial integrity of our core loan programs
00:15:33by reinstating lender fees
00:15:35and restoring underwriting standards,
00:15:37eliminating the do-what-you-do criteria
00:15:39that had put taxpayers on the hook for billions of dollars.
00:15:43And we implemented new identity
00:15:45and citizenship verification protocols
00:15:47to ensure that loans only go to eligible businesses,
00:15:50not illegal aliens or fraudsters.
00:15:52We made it a top priority to depoliticize this agency
00:15:56and end the era of picking winners and losers
00:15:58based on race or ideological beliefs,
00:16:01replacing our nation's strong tradition
00:16:05of free enterprise instead.
00:16:07We eliminated DEI mandates,
00:16:09terminated the Green Lender Initiative,
00:16:10and withdrew SBA from voter registration schemes.
00:16:14And we began relocating SBA offices out of sanctuary cities
00:16:18that refused to enforce federal immigration law.
00:16:22At the same time, we're helping rebuild American industry
00:16:24through the SBA's Made in America Manufacturing Initiative.
00:16:28We're backing the legislation
00:16:29to give small manufacturers additional capital.
00:16:32And just yesterday, we introduced a first-of-its-kind
00:16:35on-shoring portal to help small businesses
00:16:38find American-made supply chains and partners.
00:16:41The results are immediate and measurable.
00:16:43In our first 100 days,
00:16:44SBA loan approvals have skyrocketed by 80 percent
00:16:47compared to the same time under the last administration.
00:16:50Loans to the smallest businesses,
00:16:52meaning those with five or fewer employees, nearly doubled.
00:16:56And the share of federal contracts
00:16:57going to small businesses is up to 23 percent
00:17:01from just 18 percent when we came into office.
00:17:04With new opportunity and strong economic agenda at hand,
00:17:07demand for capital is up, businesses are growing,
00:17:10and confidence is rising across the country.
00:17:13I'm proud to say that this is not the SBA of the past.
00:17:15It is a stronger, leaner engine for free enterprise,
00:17:19and it's one that supports American industry,
00:17:21respect for taxpayer dollars, and one that delivers results.
00:17:25We're no longer supporting the globalists,
00:17:26bureaucrats, and partisan political interests,
00:17:29but the small defense manufacturers,
00:17:31the local construction companies,
00:17:33and the tech company founders,
00:17:34who, along with all the others,
00:17:36are putting everything on the line to live the American dream.
00:17:40Alongside President Trump, we're empowering small businesses
00:17:43to lead America's industrial comeback.
00:17:46Now, Congress has an opportunity to supercharge that comeback
00:17:49with new capital that will help make us stronger,
00:17:51more independent, and more resilient than ever before.
00:17:54The Made in America Manufacturing Finance Act of 2025
00:17:57builds on what we've accomplished to date
00:17:59and sends a clear signal that this country is serious
00:18:03about rebuilding its manufacturing base,
00:18:05jobs, and supply chains.
00:18:07It's simple, it's responsive,
00:18:09and it delivers exactly what job creators
00:18:11and our lenders have been asking for.
00:18:14Thank you again, Chair Ernst,
00:18:15and Chairman Williams in the House, for your leadership,
00:18:19and I ask all of you for your favorable consideration,
00:18:23and I look forward to working with you
00:18:25as we get this bill passed.
00:18:26Thank you so much, and I look forward to your questions.
00:18:30Thank you very much, Administrator Loeffler.
00:18:32Now we will move into our rounds of questions,
00:18:35and I now recognize myself for five minutes of questions.
00:18:42So, Administrator Loeffler,
00:18:46people will be coming and going
00:18:48as we have different committees meeting,
00:18:50so thank you for your patience.
00:18:52Shoring up domestic production of critical goods
00:18:54is vital to America's economic and national security.
00:19:00I've been pleased to work with you and President Trump
00:19:03on SBA's Made in America Manufacturing Initiative.
00:19:07As I described in my opening statement,
00:19:09I introduced the Made in America Manufacturing Finance Act
00:19:13along with Senator Chris Coons
00:19:15and House Small Business Committee Chairman Roger Williams
00:19:19to increase the SBA-backed loan limit
00:19:23from five to $10 million for small manufacturers
00:19:25in the 7A and 504 loan programs.
00:19:29Why are higher loan limits necessary
00:19:31to grow our manufacturing capacity here in America?
00:19:36Chair Ernst, thank you for your question,
00:19:38and I'm grateful for your leadership on a bipartisan bill,
00:19:41and I hope that we can earn the support
00:19:43of the entire committee, given the importance.
00:19:46What we've seen as I've traveled the country
00:19:49meeting with hundreds of small manufacturers,
00:19:52which, by the way, manufacturers under 500 employees
00:19:55represent about half of our productive capacity in America,
00:20:00is what I'm hearing is access to capital is critical,
00:20:03and particularly as we open export markets,
00:20:05those longer lead cycles are gonna require more capital,
00:20:09but the facts are we haven't raised loan limits
00:20:12for about 15 years, and so what we've seen
00:20:15is the ability for small businesses to access capital
00:20:18is great through our 7A and 504 loan programs,
00:20:21but it's limited by that $5 million cap,
00:20:24and factories wanna invest more in capital equipment,
00:20:27they wanna hire, they wanna bring on
00:20:30more manufacturing staff, a skilled workforce,
00:20:32which is critical to them.
00:20:34They're certainly focused on investing in America
00:20:38and grateful to President Trump for his leadership
00:20:40in restoring fair trade so that they can produce more,
00:20:44but access to capital is the number one concern we hear,
00:20:47not just as we talk to lenders who have seen
00:20:50the constraints firsthand with their manufacturing base,
00:20:53which is growing in America, but we've heard it firsthand,
00:20:56and I've heard manufacturers say that they already have
00:20:59the machines planned that they will purchase
00:21:02when they can get that access to capital,
00:21:04and hopefully when this tax bill passes as well,
00:21:08so I look forward to working with this committee
00:21:10to ensure that these loan limits are expanded.
00:21:13No, thank you, and I do hear that as I'm traveling
00:21:16across Iowa as well, and during my time here
00:21:19on the committee, that access to capital
00:21:22is one of the most significant impacts
00:21:26on those small businesses, so in my letter
00:21:30to President Trump on January 21st of this year,
00:21:33I wrote about the challenges facing the SBA,
00:21:37and I noted that the 7A loan program
00:21:39was severely mismanaged by the previous administration,
00:21:43resulting in rising defaults that threaten
00:21:46the future of the program, and I know that you inherited
00:21:50a mess over at SBA, and I appreciate how hard
00:21:54you have been working to right the ship.
00:21:57Can you tell us what reforms you have made
00:21:59at the agency to assure us that these new,
00:22:02larger manufacturing loans won't result in losses
00:22:07that must be covered by American taxpayers?
00:22:10Thank you for the question, Chair Ernst.
00:22:13I come out of three decades of private sector experience,
00:22:15much of it in financial services and risk management,
00:22:18so that was one of the first questions I asked
00:22:20when I came into the agency.
00:22:21What is the status of risk management in this agency?
00:22:24I was frankly alarmed to see what had been done
00:22:27to the 7A program under the do what you do
00:22:30standard operating procedure.
00:22:33We looked at the rising delinquencies and defaults
00:22:37that were happening in that program
00:22:38that had ramped up our delinquency rates,
00:22:42and we quickly got to working with the industry
00:22:45and small businesses to rein in that SOP
00:22:48and have established the SOP back to what it was
00:22:52prior to the do what you do standard.
00:22:54We've heard tremendous feedback from lenders
00:22:56and borrowers alike because they now have guardrails,
00:22:59and we are reining in that reckless lending program
00:23:02that happened under the Biden administration.
00:23:05So my focus is gonna be continuing to evaluate
00:23:08the loan programs to ensure that they're sound,
00:23:10that they continue to operate at zero subsidy,
00:23:13meaning no cost to our taxpayers.
00:23:15Unfortunately, the four-year cohort
00:23:17under the Biden administration
00:23:19looks like it will have loan losses of $2.2 billion,
00:23:23putting taxpayers on the hook for sloppy underwriting,
00:23:26and it's unacceptable.
00:23:28To ensure that we don't go back to that,
00:23:30we evaluated the manufacturing loans,
00:23:34which the Biden administration,
00:23:38we've doubled what the Biden administration
00:23:40has done almost in terms of manufacturing loans.
00:23:43We've looked at the performance at the highest ends
00:23:45in terms of the outstanding loan size.
00:23:49Those are some of the best-performing loans
00:23:51because those lenders and borrowers have skin in the game,
00:23:55and those tend to go to plant expansions,
00:23:58and so we've done some backtesting on this.
00:24:01We've tested also the fee levels
00:24:03to ensure that the fee levels are sufficient
00:24:06and that the loan programs don't go
00:24:09against the zero subsidy mandate that we have from Congress.
00:24:12So I feel very good about the program
00:24:13and look forward to demonstrating that performance.
00:24:16Thank you, and I love that you said,
00:24:19no more sloppy underwriting, and I truly appreciate it.
00:24:23Thank you, Administrator.
00:24:24Next, we will move to Ranking Member Markey
00:24:27for his questions.
00:24:29Okay, thank you, Madam Chair.
00:24:32Ambassador Leffler, you called Trump's tariffs
00:24:35the single greatest salvation for small businesses,
00:24:39and said that small businesses are grateful for tariffs.
00:24:43So do you acknowledge that Trump's tariffs
00:24:46raise costs for small businesses
00:24:49that are jeopardizing their livelihoods
00:24:52and their employees?
00:24:53That's what I'm hearing.
00:24:57Ranking Member Markey, thank you for your question.
00:25:00This president is fighting for the American worker
00:25:03and American industry, and what we're seeing
00:25:06is that President Trump's entire economic agenda
00:25:10is counterinflationary, and tariffs have been imposed
00:25:13against our small business unfairly,
00:25:15tariff and non-tariff trade barriers,
00:25:18disadvantaging not only our small businesses,
00:25:20but our workers who have five million
00:25:23who have lost their jobs. In the short term,
00:25:24have the tariffs increased costs
00:25:27for small businesses in the United States?
00:25:30No, Ranking Member Markey, they have not.
00:25:33No, core inflation for two months in a row
00:25:35have fallen to four-year lows,
00:25:36and under President Trump's first administration in 2017,
00:25:40we had record low inflation.
00:25:42Have they increased it for small businesses?
00:25:45No, that's not what we're seeing at all in the field.
00:25:47In fact, what we're seeing is that small businesses
00:25:49are investing, as evidenced by the 80% increase
00:25:53in loan volume compared to the prior administration.
00:25:56So we see small businesses investing to grow.
00:25:59There has not been an 80% increase
00:26:02from January 20th to today in investment.
00:26:05That is absolutely inaccurate.
00:26:06Just saying that is absolutely not accurate.
00:26:10So I just want to tell you, here's what I've heard
00:26:12from small businesses in Massachusetts.
00:26:16It is absolutely not true.
00:26:18Here's what I've heard from small businesses
00:26:19in Massachusetts.
00:26:20A small coffee shop in Chatham is worried
00:26:23rising costs will drive customers to bigger businesses.
00:26:26A toy designer in North Andover furloughed staff
00:26:30and is hesitant to place new orders,
00:26:32not knowing what tariff policy will be in a few weeks.
00:26:36A 100% U.S. electric bike manufacturer in Boston
00:26:40is considering entirely shuttering their doors
00:26:43because of the increased supply cost.
00:26:46And these are not just anecdotes.
00:26:48A recent survey conducted by CNBC showed that 70%
00:26:53of small business owners expect a recession
00:26:56and almost 60% are concerned
00:26:59about tariffs harming their businesses.
00:27:02So again, Administrator Leftfoot,
00:27:05what do you say to worried businesses like these?
00:27:07How is SBA helping these small businesses
00:27:11getting crushed by the Trump tariffs?
00:27:15This president is making sure that small businesses
00:27:17are never again put in the position
00:27:19of relying on the Chinese Communist Party
00:27:22to manufacture their goods and services.
00:27:24We saw during 2020, during COVID,
00:27:26the excessive reliance we have
00:27:28on the Chinese Communist Party.
00:27:30I suspect manufacturers at home are delighted to hear
00:27:34that this president is fighting for them.
00:27:36I've certainly heard that with the hundreds
00:27:37of manufacturers I've walked on the floors with
00:27:40since I've been in this job.
00:27:41They are thrilled this president is fighting for them.
00:27:45And I've heard firsthand that the unfair trade policies
00:27:48which are documented.
00:27:49I will give you another example.
00:27:50When a witness last week, sitting right where you are,
00:27:53Julie Robbins, who is an owner of Earth Quaker Devices,
00:27:56a 100% USA-based manufacturer,
00:27:59told us that when she asked SBA
00:28:02for help with alternative domestic suppliers,
00:28:05SBA offered her a product that cost 17 times more
00:28:09than her current supplier.
00:28:11She cannot take on more debt.
00:28:13She doesn't want more debt.
00:28:15Small businesses don't want more debt.
00:28:18And the sustained losses would likely prevent her
00:28:22from getting an additional loan,
00:28:24even with a perfect credit score.
00:28:27And Julie is now considering offshoring manufacturing.
00:28:31So SBA should be supporting our small businesses,
00:28:35making sure they can continue to manufacture in the U.S.,
00:28:38not encouraging offshore manufacturing.
00:28:42Senator, I'm pleased to-
00:28:43Let me just ask one quick question.
00:28:44Can I just add that we yesterday announced
00:28:46the Make Offshoring Great Again portal
00:28:48that connects small businesses
00:28:49to one million onshore production facilities,
00:28:54and this is the first-
00:28:55Well, again, the example we had last week
00:28:58was a 17 times higher cost.
00:28:59Well, this is for all small businesses now to explore.
00:29:02For the first time ever,
00:29:03using tools available to the private sector
00:29:05that we've made free of cost to small businesses.
00:29:07Let me ask one final question.
00:29:08Has DOJ had access to personal
00:29:11or sensitive small business information at SBA?
00:29:17Senator, I've been very pleased to work with DOJ.
00:29:19They are complying with all laws.
00:29:21They are-
00:29:22Have they had access to personal
00:29:25or sensitive small business information?
00:29:28No, Senator.
00:29:29They have not had access?
00:29:30No.
00:29:30Okay, thank you.
00:29:31Thank you, Madam Chair.
00:29:32Okay, and just for clarification,
00:29:35Administrator Loeffler, I believe you said
00:29:38that that 80% increase was in SBA lending
00:29:43to small businesses, right, through the 7A loan program.
00:29:48So could you restate that again
00:29:50so that we hear you clearly?
00:29:52Yep.
00:29:52The increase in small business lending
00:29:55through the SBA's 7A loan program
00:29:58compares the first 100 days
00:29:59of President Trump's administration
00:30:01to the first 100 days of the Biden administration.
00:30:05That's what I thought you said.
00:30:07So-
00:30:09Are you comparing that to the final three months
00:30:11of the Biden administration?
00:30:14No.
00:30:15She just clarified.
00:30:15No, she did not.
00:30:16No, she did.
00:30:18She just did while you were visiting.
00:30:20Would you please restate?
00:30:21Yeah, the loan data for the SBA's 7A loan program
00:30:25relates to an 80% increase in loan volume
00:30:28for President Trump's first 100 days
00:30:30compared to President Biden's first 100 days.
00:30:32Right, but that is unfair
00:30:33because he was in the middle of the recession
00:30:37that he had just inherited from Trump.
00:30:40The only fair comparison is to the last 90 days of Biden
00:30:43and the first 90 days of Trump, okay?
00:30:45So that number of 80% is completely irrelevant.
00:30:49Okay, your loan volume is up too.
00:30:51So she was giving statistics
00:30:53and I appreciate those statistics.
00:30:56So next we will move to Senator Hickenlooper
00:30:59for five minutes of questions.
00:31:02You are recognized.
00:31:03Thank you, Madam Chair.
00:31:05As someone who I was a small business person,
00:31:08I had an SBA loan.
00:31:13What is the average length of process for a loan?
00:31:16So when I did it, it took about a year, 11 1⁄2 months.
00:31:22My understanding is it takes about eight to 12 months now.
00:31:27Senator, first of all,
00:31:28thank you for your leadership in small businesses.
00:31:31I commend all of our small business leaders
00:31:34for what they do for Main Streets.
00:31:38I will say that the loan process has improved
00:31:41because we've re-strengthened the SOP back to what it was,
00:31:46making it more predictable for our lenders.
00:31:48No, I get that.
00:31:49And I admire that and I admit that,
00:31:51but you're giving us statistics of the first 100 days
00:31:54and saying you've given all these loans got completed.
00:31:58Those loans were all started under Biden.
00:32:00And if you look at Biden's first 100 days,
00:32:04those loans were all started by President Trump
00:32:07in his previous administration.
00:32:09So to say that they're up 80% is flipped.
00:32:13In other words, those loans take
00:32:16at least six months to close.
00:32:19So you're closing loans that were started by Biden
00:32:22and he was trying to close loans,
00:32:25a lower number that were started under Trump.
00:32:27But these are actually based on closings.
00:32:29No small business would close on a loan
00:32:31that they didn't believe that could invest
00:32:33and grow in their business.
00:32:34So the closing rate during the term is incredibly important.
00:32:38It's a vote of confidence.
00:32:40No small business is gonna take out a loan
00:32:41if they don't believe the conditions
00:32:43would support its improvement.
00:32:44That's why we're here today.
00:32:45The number of closings, and I appreciate that,
00:32:46but the number of closings is based on how much work
00:32:49has gotten, how many you've gotten the pipeline.
00:32:51And that all happened in the previous administration.
00:32:54I worry also like Senator Markey,
00:32:57in terms of the cost of tariffs to small business.
00:33:01All's I hear about when I'm in Colorado
00:33:03is that they can't find,
00:33:05it's not just the components of what they're putting together
00:33:08but their entire supply chain is at risk.
00:33:13And again, raising the caps on the 7A,
00:33:16I think that's a great thing,
00:33:17but that mostly helps larger small businesses.
00:33:20The little guys are struggling.
00:33:21It took me four years before I was able to qualify
00:33:25for an SBA loan.
00:33:27We've got a lot of outdoor recreation industry in Colorado.
00:33:31It's really all across the country now.
00:33:33It's a $1.2 trillion industry.
00:33:35And they're kind of freaking out.
00:33:37If you look at the running, hiking, hunting, fishing,
00:33:41boating, kayaking, so much of that industry,
00:33:45and it's a very broad industry,
00:33:46but a lot of it is apparel and footwear.
00:33:49And when you talk to almost every one of them,
00:33:51they are largely manufactured in Asia,
00:33:53not so much in China anymore.
00:33:55They're manufactured in Vietnam and Cambodia and Bangladesh.
00:33:59I mean, people are moving away from China like crazy
00:34:01over the last number of years, last six or eight years.
00:34:06The margins are too thin to really genuinely imagine,
00:34:10we're gonna bring back both the supply chain
00:34:14and the actual manufacturing in the United States.
00:34:16The margins are paper thin.
00:34:18And it seems like a more useful thing to do
00:34:21would be to work with the Caribbean,
00:34:25what they call CAFTA,
00:34:26but it's the Trade Association in the Caribbean,
00:34:29or with either Mexico or Canada,
00:34:33more likely Mexico for some of this footwear and apparel.
00:34:36Is that something you see in the future?
00:34:40Senator, what I see in the future
00:34:42is advocating for American jobs and American industry,
00:34:45which is exactly what President Trump is doing.
00:34:48This is why small towns like I'm from,
00:34:50a town of 600, have been hollowed out
00:34:52because of the loss of manufacturing.
00:34:54You may not think a job making socks is a good job.
00:34:57I just met a manufacturer last night
00:34:59at a small business round table.
00:35:01They love their job, they love their factory.
00:35:04It's a small factory, they do great things.
00:35:05It's textiles made in America.
00:35:07We have microchips being made in America now.
00:35:10We can make things in America.
00:35:11And this narrative that we can't make things here
00:35:14affordably is absolutely demonstrably false.
00:35:16And it's not about big manufacturers.
00:35:18I've been to great manufacturers
00:35:20with less than 50 employees
00:35:22who will benefit from this upsized loan program.
00:35:24No, no, I get it.
00:35:24I am a small business person.
00:35:27I am born of that ilk and I am part of that ilk.
00:35:31But everyone I talk to is in a state of terror
00:35:37that they feel they will not be able
00:35:38to get through this whatever is 18 months,
00:35:42it could be two years, four years.
00:35:45When you're looking at, even if we go to a 10% tariff,
00:35:47for truly small businesses, that is an unsupportable burden.
00:35:51It puts their entire business at risk.
00:35:54Something they've, in many cases,
00:35:55have worked their whole lives
00:35:57to get the opportunity to start and to create,
00:35:59and now suddenly they're gonna get
00:36:01the rug pulled out from under them
00:36:03for something they have no control over.
00:36:05And I'm not sure I see the benefit of that 10% tariff,
00:36:08which essentially it's gotta be paid in raising prices
00:36:13or lowering your sales.
00:36:15You're just gonna have to raise enough prices
00:36:17and accept the fact you're gonna have those lower sales.
00:36:21In either case, the public's gonna pay
00:36:23for it one way or another,
00:36:24either have less things to buy or a higher cost.
00:36:27And to what purpose, right, to do a big tax cut?
00:36:31I'm not sure, I don't see the benefit.
00:36:34Senator.
00:36:36Thank you, if you'd like to respond to Administrator.
00:36:39Our small businesses have been the victims
00:36:42of unfair trade policy for decades.
00:36:45They have had to compete against unfair
00:36:48non-tariff and tariff trade barriers.
00:36:51We have to level the playing field.
00:36:53It's absolutely fair to them.
00:36:55But the number one thing I hear right now
00:36:57is small businesses need Congress to pass this tax reform,
00:37:01this tax cut bill.
00:37:02And that is the number one thing, small businesses.
00:37:05That would be an immediate tax increase
00:37:07that would raise taxes on small businesses
00:37:10higher than what small businesses in China
00:37:12pay the Chinese Communist Party.
00:37:13So that is the number one thing I hear.
00:37:15I understand there are short-term impacts
00:37:17during this critical period of negotiation
00:37:20with 75 countries that is gonna make trading fair for all.
00:37:23And these small manufacturers are delighted
00:37:26that they're finally gonna be able to compete
00:37:27on a level playing field.
00:37:29Okay, thank you, Senator Hickenlooper.
00:37:31And thank you for mentioning socks.
00:37:33We do make socks in one of my very small rural Iowa towns
00:37:38in Northeast Iowa.
00:37:39We have a sock manufacturer in Colorado.
00:37:39You have a sock manufacturer?
00:37:41Smart Wolf.
00:37:42Love it, thank you.
00:37:43Smart Wolf.
00:37:44And I will now recognize Senator Hirono for five minutes.
00:37:49Thank you, Madam Chair.
00:37:51The SBA is one of the smallest administrative agencies.
00:37:55Isn't that the case?
00:37:56Yes, yes, Senator.
00:37:57So since this administration took office in January,
00:38:02how many people have either been fired or left SBA?
00:38:07Senator, I'm very pleased to say that we are streamlining
00:38:10and unifying this agency.
00:38:12How many people have left or resigned?
00:38:15We're taking it back to the size that it was
00:38:17during the first Trump administration.
00:38:19The agency had doubled in size and headcount during COVID.
00:38:23And yet, 90% of the staff was working from home.
00:38:26And so what we found when we came back in.
00:38:28Can you please give me some numbers, Madam?
00:38:31Yes, Senator.
00:38:32So currently, we're looking at approximately
00:38:3543% staff reduction, which brings us back to the size
00:38:38that the agency was during the first Trump administration.
00:38:43I'm just getting percentages.
00:38:45I'd really like to know the numbers
00:38:46that you're talking about.
00:38:47Yeah, so right now, we're looking at
00:38:50roughly 2,700 staff reductions.
00:38:532,700.
00:38:54So it is really a very small agency,
00:38:56and you're about to embark
00:38:59on this small manufacturer's effort,
00:39:02and that's gonna take staffing.
00:39:03And in fact, isn't it the plan to further reduce
00:39:07your employee base to...
00:39:11You're cutting another 43% from the SBA personnel?
00:39:17Well, Senator, I've been in the job about three months.
00:39:21We'll continue to evaluate the agency,
00:39:23but the beauty of this agency
00:39:25is it is a public-private partnership with our lenders,
00:39:29over 1,000 lenders across the country that deliver our loans.
00:39:32So it's a very scalable agency,
00:39:35and it had doubled during COVID.
00:39:37We no longer are running COVID origination loan programs.
00:39:40So the staffing, we had customer service representatives
00:39:44that were costing us roughly 50 million a year.
00:39:47Madam Administrator.
00:39:48We had two hours of work per day.
00:39:50The point I am making is that
00:39:52if any of the initiatives that you are announcing
00:39:56will take personnel, and at the same time
00:39:58as you're pursuing these initiatives
00:40:01and looking at your 7A loan program,
00:40:04and you have a president who wants to shove
00:40:07the student loan program,
00:40:08which is over a trillion dollars in student loans,
00:40:1143 million people, borrowers, into your small shop,
00:40:18it's kind of mind-boggling to think
00:40:20that you're gonna be able to do all this.
00:40:23Another question.
00:40:26Is it your testimony that the confusion
00:40:30surrounding President Trump's on-again, off-again
00:40:32tariff decisions is going to help small businesses?
00:40:36Is that your testimony?
00:40:38Yes, Senator.
00:40:39President Trump is the first president.
00:40:42That's all I need to know.
00:40:44So when I hear from small businesses in my community
00:40:47that it is because of the tariffs
00:40:48that there's so much uncertainty in their businesses
00:40:51that they believe that they are actually gonna get hurt.
00:40:54You have Walmart saying that they're gonna need
00:40:56to charge higher prices
00:40:58because of the negative impact of these tariffs.
00:41:02They're deluding themselves that actually
00:41:05that President Trump's on-again, off-again tariff decisions
00:41:09are actually gonna help them.
00:41:12So all these small businesses contacting us
00:41:13to say that they're actually being hurt,
00:41:15they're deluding themselves?
00:41:17Is that your view?
00:41:19Senator, it's not to overlook.
00:41:21There could be short-term impacts.
00:41:23The biggest change with tariffs
00:41:25is we're gonna be able to compete on a level playing field
00:41:28based on the 400 page record by the US Trade Rep.
00:41:31Sadly, excuse me, President Trump can say all he wants.
00:41:34These are short-term impacts,
00:41:35but that is not the view held by most economists
00:41:41and other people.
00:41:43Senator, we lost five million jobs across this country
00:41:46following out of our manufacturing.
00:41:50Now I recognize Senator Hawley
00:41:52for five minutes of questions.
00:41:54It's great to see you again, Administrator.
00:41:56Would you like to get a word in there?
00:41:58I'm happy to allow you to actually finish the sentence.
00:42:00Go ahead.
00:42:02I'll rest my case, thank you.
00:42:05Probably wise.
00:42:07Let me ask you about something that's happening in Missouri
00:42:11that's very important to us.
00:42:11As you probably are aware,
00:42:12we've had very significant tornado damage across the state,
00:42:15including in St. Louis.
00:42:17I was just on the ground there for most of the day
00:42:19on Monday, walking the streets,
00:42:20talking to folks in neighborhoods.
00:42:22The damage is very, very extensive.
00:42:24We're going to need help across the board,
00:42:26and I'm asking you because one of the most important
00:42:29services I think that SBA provides is disaster relief,
00:42:33often the form of loans to businesses
00:42:35that have been affected by natural disasters.
00:42:36Can you just talk to us a little bit
00:42:38about the nature of those loans, of that program,
00:42:42and what, for instance, my constituents
00:42:44might be able to get help with?
00:42:46Absolutely, thank you, Senator,
00:42:48and your constituents in Missouri,
00:42:51and frankly, the entire region that was impacted
00:42:54are in my prayers, and our team is already on the ground
00:42:57in that region to ensure that we're a part of,
00:43:01while we're not a response agency,
00:43:03we're a recovery and resilience agency,
00:43:05and we are going to be there for your constituents.
00:43:09First of all, in fiscal 2025, as you know,
00:43:15the disaster relief funds ran out,
00:43:18and it was a great surprise to Congress
00:43:20that this agency did not alert this committee or others
00:43:24that they were running out of disaster relief funds.
00:43:27Under my watch, that will never happen again,
00:43:29and right now, we are making sure of that
00:43:31by ensuring that we do fraud checks.
00:43:33We've already caught about $75 million in attempted fraud
00:43:37that should have gone to survivors of disasters.
00:43:40We're streamlining our programs to ensure
00:43:43that the regional offices work with our disaster relief folks
00:43:47which had never been done before.
00:43:48The agency had broken the regional
00:43:52and disaster response efforts apart.
00:43:54We're also looking at the first 100 days
00:43:57of President Trump's loan volume to see,
00:43:59to ensure that that's being delivered quickly.
00:44:02For example, in California,
00:44:03we delivered $2 billion in relief within the first 100 days,
00:44:07already surpassing what was delivered
00:44:09in all of Biden's last year.
00:44:12So we are on top of it.
00:44:14We have 400 disaster assistance specialists
00:44:17in the field right now,
00:44:18servicing dozens of disasters across the country,
00:44:22and we will be right there alongside of you
00:44:26to ensure that your constituents are served.
00:44:29That's terrific to hear.
00:44:31I know that homeowners who are located
00:44:33in a declared disaster area are eligible to apply,
00:44:36in many cases, for SBA personal property loans,
00:44:38which I think go up to $40,000,
00:44:40and SBA real property loans, which can go up to $200,000.
00:44:44I can just tell you that that's gonna be
00:44:46very, very important relief for my constituents.
00:44:48We're really suffering in Missouri,
00:44:50all over the state, to be frank with you,
00:44:52but most recently, particularly in the St. Louis
00:44:55and Southeast Missouri areas.
00:44:57So I'm glad to hear that you're making this a priority.
00:44:59Thank you for the reforms that you have enacted
00:45:01to make sure that there is funding available,
00:45:03that you get those teams that specialize
00:45:06in this on the ground.
00:45:07I know we'll want to see them in Missouri.
00:45:09I realize that a lot of this depends
00:45:10on a major disaster declaration.
00:45:12That's what opens up a lot of this relief
00:45:15on the SBA side and makes it available.
00:45:17So we certainly hope FEMA will act on that
00:45:19very, very quickly.
00:45:21But thank you again, and I look forward
00:45:23to working with you to bring relief
00:45:25to the people of Missouri.
00:45:26We're in a lot of need right now.
00:45:27Thank you, Senator.
00:45:28We'll be there.
00:45:30It's great to see you again.
00:45:31You're doing a great job.
00:45:32Thank you very much.
00:45:33Thank you, Madam Chair.
00:45:39How you do, sir?
00:45:41Okay, thank you.
00:45:43I now recognize Senator Rosen,
00:45:45and we'll go from there.
00:45:47Thank you, Mr. Chair.
00:45:48And I want to thank you to Administrator Leffler
00:45:51for joining us here today.
00:45:52I just want to make a short comment
00:45:54on what Senators Hickenlooper and Hirono
00:45:58have said, because we know that we want
00:45:59to bring back U.S. manufacturing
00:46:01so that we can compete.
00:46:03But when is the real question.
00:46:05How long does this take to happen,
00:46:07and how many businesses will suffer
00:46:08or disappear in the meantime?
00:46:11And that's what we're really talking about
00:46:13with this uncertainty, because this puts
00:46:14people's dreams and their life work at risk
00:46:18or on the chopping block.
00:46:19So I think when we talk about it,
00:46:21this is that bridge where people's dreams
00:46:24will be dissolved.
00:46:26But I'm going to move on, because we've had
00:46:27so many good conversations, and I want
00:46:30to talk about the importance of SBA
00:46:31as a resource partner.
00:46:33Because SBA's impressive networks
00:46:36of Veterans Business Outreach Centers,
00:46:37Small Business Development Centers,
00:46:39and Women's Business Centers,
00:46:41we know that they provide critical support
00:46:44to small businesses across the country,
00:46:46having counseled more than 744,000 small businesses
00:46:50and supported over one million jobs in 2024 alone.
00:46:54The tailored support provided by
00:46:56Veterans Business Outreach Centers,
00:46:57I'm just going to call them VBOCs, a lot easier,
00:47:00it's important for my state of Nevada,
00:47:02which is home to more than 200,000 veterans,
00:47:05and over 23,000 veteran small businesses.
00:47:08We only have three million people in Nevada,
00:47:10so it's a good number.
00:47:12I was proud to help secure Nevada's first
00:47:14dedicated in-state VBOC to ensure our veterans
00:47:17and transitioning service members
00:47:18get the support they needed to start a business.
00:47:21And so, Administrator, when we spoke,
00:47:24ahead of your conversation,
00:47:26we really seemed that we connected
00:47:28and shared this priority to really support
00:47:30our veteran entrepreneurs.
00:47:31This is your story, bring the value of our community.
00:47:34And so I was really disappointed to see this drastic
00:47:36167 million that was cut from the SBA's
00:47:40Entrepreneurial Development Program
00:47:42in the President's budget.
00:47:44And this is going to result, sadly,
00:47:48in the closure of hundreds of business resource centers,
00:47:51including 31 VBOCs.
00:47:53Small businesses are being hit hard,
00:47:55like I said, by the Trump tariffs.
00:47:56It's just the uncertainty.
00:47:58People aren't sure how to plan.
00:48:00We're not trying to attack anyone.
00:48:02We want to bring things back,
00:48:04but people just don't know what to do,
00:48:06and they need access to SBA,
00:48:09to the resource partners they've had,
00:48:10to the confidence that they have in their communities
00:48:14and those connections now more than ever.
00:48:16And so my understanding that your plan
00:48:18to address this need is for the SBDCs
00:48:20to provide the same services previously offered
00:48:23by eliminated programs like VBOCs,
00:48:25and I so appreciate this,
00:48:27but the SBA requested only 10 million in additional funding
00:48:30for SBDCs to serve veteran-owned businesses.
00:48:33It's still 46% less in existing funding
00:48:36for the veteran services.
00:48:38It's a step forward, but in the meantime, again,
00:48:41where are folks gonna go, and how is this expertise?
00:48:45You're losing staff.
00:48:47These centers in my small state really help.
00:48:50So does SBA acknowledge that organizing
00:48:53all counseling services under SBDCs
00:48:55will make it harder for our veterans
00:48:57to access resources and place even more pressure
00:49:00on our SBDCs?
00:49:02They are really already strained.
00:49:06Senator, thank you for the question,
00:49:08and there is no bigger champion of our veterans
00:49:11than President Trump, which is why I think
00:49:13we've all seen him upsize
00:49:15the Veterans Administration budget by $5 billion,
00:49:20and I'm pleased to say, particularly as the daughter
00:49:23and granddaughter of veterans,
00:49:25my father started a small business
00:49:27as a result of what he learned in the military,
00:49:30that I am so proud to champion veterans
00:49:32and deliver even more unified, strengthened resources.
00:49:36We've just announced today an MOU with Secretary Collins
00:49:41at the Veterans Administration to share more resources
00:49:46between the small business efforts of the VA
00:49:50and SBA.
00:49:51I know that veterans often serve veterans,
00:49:51and that's what our VBOCs give us.
00:49:52They hire veterans to serve the veterans
00:49:55who understand the process.
00:49:56So by eliminating them, you've eliminated
00:50:00this kind of unique understanding from veteran to veteran.
00:50:04I want to correct the assumption
00:50:05that we're eliminating VBOCs.
00:50:07That's absolutely not the case.
00:50:09In fact, the floor of 10 million is a floor,
00:50:11not a ceiling, from the SBDCs,
00:50:14but let's be clear, there are 1,000 SBDCs
00:50:17across the country.
00:50:18We have 68 regional offices with veterans specialists
00:50:21in those offices.
00:50:22We have PCRs on military base.
00:50:24It took till last year for me to get the VBOCs in Nevada.
00:50:27So I just have one more quick question.
00:50:30The SBDCs do provide general counseling
00:50:32and business training, and so under your plan,
00:50:35how will SBA ensure that the SBDCs,
00:50:38again, to the same point, have the advisors
00:50:39that are specifically trained to provide counseling
00:50:42on those unique needs, and how long will veteran businesses
00:50:47have to wait for this transition to be complete?
00:50:50Because again, it's the uncertainty.
00:50:51They don't have to wait at all, Senator,
00:50:53which is great, because I totally agree with you.
00:50:55We need to serve our veterans better,
00:50:56and in fact, this week alone, we're hosting 15 seminars
00:51:00for our veterans in boots to business
00:51:02and reboot across the country,
00:51:04and we're only going to build on that.
00:51:06In fact, through our partnership with the VA,
00:51:08through our work with SBDCs,
00:51:10through our veterans outreach programs in the region,
00:51:14we're consolidating and unifying our services
00:51:16so that veterans have access to the full suite of SBA,
00:51:19and I'm very proud to say SBA lending to veterans
00:51:23in this calendar year is up 26%.
00:51:25Will you come meet with folks in my office
00:51:27to give us a list of everything that you're doing
00:51:30so that we can communicate this out in Nevada
00:51:33and be sure that we continue to serve our veteran businesses?
00:51:37I'd love to meet you and visit with your state as well.
00:51:40Thank you, Senator.
00:51:42Thank you, Mr. Chair.
00:51:44Well, everybody, I guess right as soon as I became the chair,
00:51:48everybody left, so, I mean,
00:51:51maybe they know a whole lot more than I know,
00:51:53but, you know, Kelly, thanks.
00:51:57Well, thank you all for staying.
00:52:00I mean, thank you so much and everything,
00:52:02but I guess I've got to recognize myself now
00:52:05for a few minutes, and so, you know,
00:52:08and Kelly, if you'll allow me again to call you Kelly.
00:52:13Please, Senator, yes.
00:52:14Absolutely.
00:52:16Adore the job you're doing.
00:52:17You're doing fantastic work,
00:52:19and God knows this country needs manufacturing
00:52:24to come back to the United States.
00:52:26I mean, when it really boils right down to it,
00:52:29my little state of West Virginia is all about small business
00:52:34and all about opportunities
00:52:35and especially about manufacturing,
00:52:37and so it is so, so, so important,
00:52:42but I've got to tell you this story real quick.
00:52:46Think of forestry just for a minute.
00:52:50Think of our trees and what they give to all of us.
00:52:56In West Virginia, our hardwoods in only West Virginia
00:53:00clean up an equivalency of 21 coal-fired power plants a year.
00:53:06You know, if I could be a little bit corny,
00:53:10I would say we need to go give our trees a pat on the bark
00:53:14because they do so much for us, it is unflat believable,
00:53:20but now all of our industry just went away.
00:53:25All of our, for the most part, all of the cabinetry
00:53:30or the flooring or the furniture is gone,
00:53:33and just think what we do.
00:53:34Now, let me just be as quick as I can be,
00:53:37but think what we do.
00:53:38We cut a tree in West Virginia.
00:53:39We cut a third of our growth in West Virginia.
00:53:42The trees are growing three times faster
00:53:44than we're cutting them,
00:53:46and then what happens is they fall on the ground,
00:53:48and then a small-grade fire goes through our forest,
00:53:53and all of this carbon that's frozen
00:53:56in this right here right now, it's frozen in this.
00:53:59All of it goes right into the atmosphere.
00:54:02What do we do?
00:54:03We cut a tree.
00:54:04We dry-kill it.
00:54:05We put it on a truck.
00:54:07Emissions go.
00:54:09We haul it to the port.
00:54:11We put it on a boat.
00:54:12Emissions go.
00:54:13We take it to Vietnam.
00:54:15We make something out of it, back on a truck,
00:54:17back on a boat, back on another truck,
00:54:19and it ends up in Macy's.
00:54:22The whole time, we're losing our jobs
00:54:26or we've lost our jobs.
00:54:29We're creating more and more and more of a problem
00:54:31because when we make it, this stays right here.
00:54:37It is amazing,
00:54:39and with that, Kelly, I would say just to you,
00:54:42this is almost a repeat of over and over and over
00:54:46what's happened to America.
00:54:49We've spun around 14 times,
00:54:52and all of our jobs are gone.
00:54:53All of our manufacturing is gone.
00:54:55We can't make anything now, and we're really upside down.
00:55:00Give me your thoughts.
00:55:03Senator, thank you for your advocacy of Made in America.
00:55:06I, frankly, was somewhat surprised
00:55:10to hear your colleagues advocate
00:55:11for why should we make things in America?
00:55:14Why can't we make them offshore?
00:55:15I think you explained elegantly
00:55:17that we have the natural resources.
00:55:20We have the productive capability.
00:55:23We can do this again here,
00:55:24and that's what the Made in America
00:55:26Manufacturing Finances Act is about.
00:55:28It's about growing our capabilities in America.
00:55:30I mean, we've seen articles
00:55:32where we no longer make fasteners in this country,
00:55:34nuts and bolts and screws.
00:55:37Those are the things that built America.
00:55:38We have to get back to that.
00:55:39I'm so grateful that President Trump
00:55:41believes in American industry and the American worker
00:55:45because we can do that.
00:55:46I've walked hundreds of factory floors.
00:55:48I have seen what's going on,
00:55:50and these incredibly skilled workers
00:55:52are grateful that this president
00:55:54believes in them and American industry,
00:55:56so I just thank you for fighting for that,
00:55:58and at the SBA, not only are we working
00:56:01on expanding the loan size,
00:56:02but we're also connecting manufacturers
00:56:05to local small businesses
00:56:06so that small businesses know
00:56:07there are one million suppliers in this country
00:56:10through our Make Onshoring Great Again portal
00:56:12that they can access to ensure
00:56:15that they are never again dependent
00:56:17on the Chinese Communist Party
00:56:19for their manufacturing needs.
00:56:22Well, I would just end by saying
00:56:27to all of you that are here,
00:56:31Kelly didn't need to do this for us.
00:56:33Our president really didn't need to do this for us.
00:56:37There's been so many folks,
00:56:39and I'm sure there's senators here the same.
00:56:42There's so many folks that have stepped up,
00:56:45but we've got to absolutely follow through now
00:56:49because we're in a mess.
00:56:51We've lost a lot, a lot of opportunity,
00:56:54and with all that being said,
00:56:55now is the time.
00:56:57Now is our time.
00:56:59Our time to bring stuff back
00:57:01to the greatest absolute workforce
00:57:03in manufacturing folks on the planet,
00:57:06and so I thank you.
00:57:09Thank you, Senator.
00:57:13Wonderful lady, you know,
00:57:15Senator Shaheen, and for five minutes.
00:57:19Thank you, Mr. Chairman.
00:57:20It's Shaheen.
00:57:21You're making me Irish there really quick,
00:57:26but Administrator Loeffler,
00:57:29I appreciate your being here,
00:57:30and I think we all support
00:57:35bringing manufacturing back to the United States.
00:57:37Actually, the manufacturing sector in New Hampshire
00:57:40is the biggest sector of our economy,
00:57:42and one of the reasons
00:57:43I'm such a big supporter of the SBA
00:57:45is because the programs that the SBA operates
00:57:49help us build our manufacturing sector.
00:57:51That's the whole point,
00:57:54and that's why I was concerned
00:57:57when I saw the budget requests
00:58:00a 30% cut to staffing of district offices.
00:58:04Administrator Loeffler,
00:58:05in your confirmation hearing,
00:58:07I asked you about ensuring that the district offices
00:58:10have the support and the staff they need,
00:58:12and at that time, you said you have my commitment.
00:58:15I'm quoting you now,
00:58:17and you also said I can assure you
00:58:19we will put an emphasis on the field,
00:58:21but I can tell you that New Hampshire's district office
00:58:26started with seven staff this year.
00:58:27Now, they're down to only three.
00:58:30I was at the SBA awards ceremony
00:58:34in New Hampshire two weeks ago,
00:58:36and virtually every small business that got an award
00:58:40talked about the help they received
00:58:42from the SBA or the resource partners,
00:58:45the veteran business centers,
00:58:48the women business centers,
00:58:50the SCORE partnership,
00:58:53and I heard a great deal of concern
00:58:56about the capacity of the SBDCs
00:58:59to pick up that whole load right now
00:59:01because they don't have the staffing
00:59:03and they don't have the budget to do that,
00:59:05and so can you tell me if the New Hampshire
00:59:09and other district offices
00:59:10will be exempt from the hiring freeze
00:59:12so they can get back to the staff
00:59:14that they need to support local small businesses
00:59:17and will they be able to get the resources they need
00:59:20with this level of funding?
00:59:22Senator, thank you for your question,
00:59:24and I continue to reinforce our commitment to the field.
00:59:27In fact, not only since joining the SBA
00:59:30when only 10% of the agency was in office,
00:59:3690% was working from home for four years,
00:59:39we brought everyone back to the office,
00:59:41and I committed to having 30% of our staff in the field.
00:59:45We've already done that.
00:59:46Our small businesses, I travel across the country,
00:59:49say that they've already seen a difference
00:59:51in the small businesses, SBA's activity in the field,
00:59:55and that's because not only are we back at work,
00:59:57but we have a new mission refocusing
01:00:00on serving small businesses and not serving bureaucrats.
01:00:04Administrator, I appreciate that.
01:00:06As I said, that's why I support the SBA,
01:00:09and I've been a big fan of the SBA
01:00:11since I got involved in public service
01:00:14because I understand how important they are.
01:00:16That's why I'm so concerned
01:00:18that our SBA office in New Hampshire
01:00:20only has three of the seven staff
01:00:23that they had at the start of the year,
01:00:24and they're worried about whether they can pay their bills
01:00:27and whether they can hire more people.
01:00:28So my question for you is,
01:00:31are they gonna be able to be exempt from that hiring freeze?
01:00:34Are they gonna be able to hire those staff back,
01:00:36and are they gonna have the resources
01:00:37to operate that office?
01:00:39Yes, we are working on restaffing the offices
01:00:42following some of the early voluntary retirements
01:00:45and making sure that we focus in on the field again,
01:00:49which again, is a critical part of our service
01:00:53and technical support delivery
01:00:54along with our resource partners.
01:00:56And so what we're doing is focusing on the field
01:01:00and staffing those offices,
01:01:01and I think we're already seeing the impacts
01:01:03because of the increased loan volume.
01:01:06I'm sorry to interrupt again,
01:01:07but so can you give me some timetable
01:01:10for when they might be able to expect
01:01:13to be able to do the hiring again to start that process?
01:01:17Senator, I don't have an exact timetable,
01:01:19but I will work with you and your office
01:01:20to ensure that we do that and ensure that,
01:01:24and we're in constant dialogue.
01:01:26Unlike the prior administration,
01:01:27which had essentially abandoned the field,
01:01:30we are in constant dialogue
01:01:31with our regional and district offices.
01:01:33And I appreciate that,
01:01:35and I'm not interested in comparing
01:01:37the last administration to this administration.
01:01:39I'm interested in seeing what we need to do
01:01:41to ensure that our small businesses in New Hampshire
01:01:44get the help that they need.
01:01:45And that means staffing the small business district office.
01:01:49It means ensuring that those resource agencies
01:01:51that are so critical have the help they need.
01:01:54And it means making sure that the programs
01:01:57that work for business are operated.
01:01:59One of those programs is the STEP program,
01:02:02the State Trade Expansion Program,
01:02:05which I introduced back in 2010
01:02:08as part of the Small Business Jobs Act.
01:02:10And Chair Ernst and I have worked on making some changes
01:02:15to make it work better.
01:02:16I think it's really important
01:02:18because 95% of markets are outside of the United States,
01:02:22and only about 5% of our small and medium-sized businesses
01:02:25do business outside of the United States, as you know.
01:02:28This is a program that, again,
01:02:31has really made a difference
01:02:32for small businesses in New Hampshire,
01:02:34where we do a lot of exporting
01:02:35and we're trying to do much better.
01:02:37So that, again, is why I was surprised
01:02:40to see that that program got zeroed out
01:02:42in the budget request.
01:02:44Can you tell me what's gonna replace it
01:02:49to help our manufacturers and small businesses
01:02:52get into international markets?
01:02:55Senator, the number one program
01:02:57we can have to get into international markets
01:02:59for all small businesses is fair trade.
01:03:02That's what President Trump is fighting for.
01:03:04When we have fair trade,
01:03:06we do not have to pick winners and losers
01:03:08through grant programs to determine who gets to export
01:03:11and fight the massive tariff and non-tariff trade barriers
01:03:15that all of our small businesses are faced with today.
01:03:17So my focus is in ensuring that everyone has access
01:03:21to export markets and ensuring
01:03:23that through our international loan
01:03:26and trade export loan programs
01:03:30that they can have a sustainable loan program
01:03:32and not hopefully compete for limited resources
01:03:35with a state-based grant
01:03:36that has a lot of bureaucratic costs, delays,
01:03:40and complexity compared to just competing
01:03:42on a level playing field with fair trade.
01:03:43Well, Administrator, I'll tell you
01:03:45what that fair trade is doing in New Hampshire
01:03:49because I visited a bakery in Derry, New Hampshire
01:03:52that was started over 25 years ago.
01:03:55It was started to address sugar-free baked goods.
01:04:00They do 85% of their business with Canada.
01:04:02They used to have 25 employees.
01:04:04Now they have two because the president's tariffs
01:04:07have put them out of business.
01:04:09And I've visited multiple businesses in New Hampshire
01:04:13who are being put out of business by these tariffs.
01:04:16So while I appreciate that that's the president's idea
01:04:20for how to help small businesses,
01:04:22we have a lot of small businesses in New Hampshire
01:04:24who are not being helped by those tariffs.
01:04:26And so what I want to know is what SBA can do
01:04:29to help those small businesses to compensate
01:04:32for the impact that those tariffs are having on them.
01:04:36And that's my question.
01:04:37Thank you, Mr. Chairman.
01:04:39We were a little bit over.
01:04:41Does the senator yield?
01:04:44I'm finished.
01:04:45OK, the senator's finished.
01:04:47I yield five minutes to myself.
01:04:50Administrator, great to have you here.
01:04:51If you'll remember, I like to brag about having
01:04:55been a small business owner.
01:04:56My father was a small business owner.
01:04:58My grandfather was a small business owner.
01:05:00Several of my children are small business owners.
01:05:03It's clear the economy of Utah is deeply
01:05:07resting on the shoulders of small businesses.
01:05:09So we value what you do and the importance of what you do.
01:05:16There's been a lot of discussion recently and today
01:05:18about President Trump's Liberation Day tariffs.
01:05:22I've had a chance to travel my state.
01:05:25And I think it's fair to say that the tariffs do
01:05:27have a disproportionate impact on small business.
01:05:30They don't have the same resources
01:05:31that larger businesses do to sustain those.
01:05:34They don't have as many different options
01:05:36with supply chains as they do.
01:05:39And I never tried to outguess the president
01:05:42in his negotiating style.
01:05:43But also, the uncertainty of their on, their off
01:05:48is also very difficult on our small businesses.
01:05:51And I'd just love to have you maybe comment
01:05:54on what we can be doing for our small businesses
01:05:57in this environment, and what your advice is
01:05:59to small businesses, and kind of what they can expect.
01:06:02Thank you, Senator.
01:06:03And I was pleased to have the chance
01:06:05to visit your state and travel around.
01:06:08Yes, and we'll get you back when I'm there.
01:06:10But thank you for going.
01:06:11Yeah.
01:06:12That would be great.
01:06:12There's so many great small businesses and workforce
01:06:17development programs taking place.
01:06:19So I commend your state and the business-friendly environment.
01:06:23The SBA is squarely focused on serving small businesses
01:06:27through all the challenges that they face
01:06:30and the opportunities they face.
01:06:31And fair trade is certainly one of those opportunities.
01:06:34And what we just discussed was the availability
01:06:37of now potentially looking at export markets,
01:06:39where small businesses have been shut out
01:06:41of too many markets globally.
01:06:43But one of the biggest thing we can do
01:06:45is strengthen our supply chain by making
01:06:48more of our components, and parts, and materials
01:06:51in America.
01:06:52That's why we're having this hearing,
01:06:53is to support the Made in America Manufacturing Finance
01:06:56Act.
01:06:57And it's a bipartisan effort to ensure
01:06:59that after more than a decade of not raising loan limits,
01:07:04that small businesses, which comprise most manufacturers
01:07:08in America, can have access to investing
01:07:11in that incremental CNC machine, hiring those workers,
01:07:14expanding the plant, where they've
01:07:17heard foreign countries come in and say
01:07:19they want to manufacture in America,
01:07:21thanks to President Trump's fair trade policies.
01:07:24We've also announced a Make Onshoring Great Again portal,
01:07:28which provides access to small businesses.
01:07:30It's a resource of about 1 million production
01:07:34and manufacturing facilities in America
01:07:37that is searchable by small businesses
01:07:39to see if they can source more of their supply chain
01:07:42in America.
01:07:44And so it's through innovative efforts
01:07:46like this, expanding access to capital,
01:07:48understanding that there are more resources onshore
01:07:51than we might recognize, and then
01:07:53ensuring that they have access to our technical resources
01:07:56and loan programs to fulfill the potential
01:08:00that this administration is bringing with $10 trillion
01:08:03in investment.
01:08:05And frankly, the biggest thing I hear, too,
01:08:07is the upcoming tax cut bill.
01:08:10That's small businesses' biggest concern right now,
01:08:14is that they not be subject to a massive tax increase.
01:08:17So we would love to work with your office
01:08:22to hear any other ideas.
01:08:23But right now, I think small businesses
01:08:26appreciate that President Trump is fighting for them
01:08:28to level the playing field, and so that we
01:08:30can make sure we can have made in America
01:08:33and ensure that small businesses are no longer
01:08:35dependent on the Chinese Communist
01:08:37Party for their production.
01:08:39I think it's hard to find a small business in Utah that
01:08:43doesn't want President Trump to be not just successful,
01:08:46but wildly successful.
01:08:48I think there is a lot of patience
01:08:49among our small businesses.
01:08:51At the same time, anything the administration or you
01:08:53can do to signal that you get it,
01:08:56that this is very painful, particularly
01:08:58disproportionately painful on our small businesses,
01:09:01I think is very, very important to do
01:09:03and to help them realize that they are being seen and heard.
01:09:08And a lot of it, for me, is when I talk to them,
01:09:11if I'm simply able to say, I will deliver
01:09:13your story to Washington, that's really what they want.
01:09:15They just want to make sure that they're heard.
01:09:18Absolutely, Senator.
01:09:19And we are the voice for small business.
01:09:21And we know that the president is,
01:09:23there's no greater fan of small business than President Trump.
01:09:26He's fighting for them.
01:09:27That's what fair trade's about.
01:09:29Yeah, and I, in reference to the size of your offices,
01:09:33one of the things I learned as a small business owner
01:09:35is we sometimes make the mistake that we solve problems
01:09:39by hiring more people.
01:09:40And I'm very well aware it's not necessarily more people.
01:09:43And I also think we ought to point out that every person
01:09:46on that payroll is a dollar, every dollar we pay them
01:09:49is a dollar not going into small business programs.
01:09:51So I know that that balance is difficult for you.
01:09:54But I just want you to know this, Senator, appreciates
01:09:56that it's not all about the numbers of people.
01:10:00It's more about the quality of the services.
01:10:02And with that, I yield my time.
01:10:04And I now recognize Senator Young.
01:10:07Administrator Loeffler, it's really great to see you.
01:10:11It's good to see you in Indianapolis.
01:10:12Thanks so much for the visit recently.
01:10:14And I think it's appropriate, since we
01:10:17visit a manufacturing facility, that we're
01:10:19here to discuss the importance of our manufacturing
01:10:24leadership in this country.
01:10:25So thank you for your support, relatedly,
01:10:30for advancing the goals of my Small Business Technological
01:10:35Advancement Act.
01:10:36That will be important to many Hoosier businesses
01:10:38and manufacturing enterprises.
01:10:42I'm especially grateful that its intent
01:10:45has been incorporated into your updated standard operating
01:10:48procedures.
01:10:50In effect, June 1 of this year, 7A loan recipients
01:10:54will now be able to use their proceeds
01:10:57for critical modernization efforts, digital tools,
01:11:01software, payroll, et cetera.
01:11:05This is a significant step forward
01:11:07for small businesses who are seeking
01:11:09to stay competitive in this rapidly evolving
01:11:13technological landscape.
01:11:15It touches directly on manufacturing,
01:11:19which is what we're here to discuss today.
01:11:22Let me pivot a bit, if I can, to SBIR Mills.
01:11:28It's something you're familiar with.
01:11:32I am sure you are aware SBIR Mills are companies
01:11:36that systematically secure numerous SBIR, or Small
01:11:40Business Innovation Research, awards,
01:11:43often focusing more on obtaining grants
01:11:46than on commercializing the resulting technologies.
01:11:52SBIR program is designed to support small businesses
01:11:55in developing innovative technologies, technologies
01:11:58that can make them more productive
01:12:01and allow them to pay their workers more so that we can
01:12:04continue to have an ecosystem of good jobs in this country,
01:12:09which I know is President Trump's and this broader
01:12:12administration's objective.
01:12:14What impact do SBIR Mills have on legitimate small businesses
01:12:19trying to enter the program?
01:12:22Administrator?
01:12:23Senator, thank you for the question.
01:12:25I also thank you for your leadership
01:12:26on the technology enhancements that you helped
01:12:30us make available in the 7A loan program,
01:12:32because I think we know that small business benefits when
01:12:35they can have workflow automation and efficiencies.
01:12:39So I appreciate your leadership on that.
01:12:42Specifically with regard to Small Business Innovation
01:12:45Research Mills, more broadly, just thinking
01:12:49in the context of a year where we will be reauthorizing
01:12:52the SBIR program, hopefully.
01:12:55And this is an important program that
01:12:56provides the development of critical technologies,
01:12:59particularly in the areas of defense and health
01:13:02care and other areas.
01:13:05But what we want to make sure is that the program designs
01:13:08as intended and operates for the benefit of American
01:13:11taxpayers and the small business innovation that
01:13:14is occurring that is absolutely mission critical in many
01:13:17respects to our national security, our war fighters,
01:13:21health care, and other areas.
01:13:23So when SBIR programs are abused to access grants and funding
01:13:29without delivering the results, that's something
01:13:31that we have to look into.
01:13:32Our team's already evaluating the program effectiveness
01:13:36and the ability for us to audit and monitor
01:13:40the participants in the program and the results.
01:13:44Admittedly, that program seems to have been adrift
01:13:47in the last four years.
01:13:48And I think we need to put guardrails back
01:13:51on that in terms of being able to access information.
01:13:54And we will continue to share information with your office
01:13:57as we learn more about the program
01:13:59to protect it for the intended recipients and results.
01:14:03Well, I do hope that you stay in touch
01:14:06with our office in particular, but more broadly, the committee.
01:14:09I know there's a lot of support on this committee.
01:14:12The chair is certainly very supportive of making sure
01:14:17that our legitimate small businesses, those
01:14:21that create things of value for people,
01:14:23aren't just in operation to extract money from the taxpayer
01:14:29to ensure that they can be as innovative as possible.
01:14:32And so I intend to offer some concrete solutions.
01:14:36And if they're informed by your excellent team's work,
01:14:40that would be fantastic.
01:14:41Will you work with me on that?
01:14:43Senator, I look forward to working
01:14:45with you and this entire committee
01:14:46and appreciate the committee's leadership
01:14:48in thinking through that process.
01:14:51I guess the last thing I would ask
01:14:53as my time runs down here, Administrator,
01:14:56just pivoting to cybersecurity, something very important to me
01:15:00as a member now of the Intelligence Committee,
01:15:03how does the SBA assess and prioritize cybersecurity risks?
01:15:09Well, as someone that came out of small business, Senator,
01:15:13I know that for small businesses,
01:15:15it can be a disproportionate cost for them to address that.
01:15:19And through our work across the country
01:15:23in our small business development centers,
01:15:25we hope to bring expertise to bear
01:15:27to make it accessible for small businesses,
01:15:29for them to share that information with their employees
01:15:32so that they're not inadvertently putting
01:15:34their small businesses at risk, and to understand
01:15:36the emerging threats that can be happening
01:15:39because that threat environment's always changing.
01:15:42And so we'll continue to work with small businesses
01:15:45on the innovation front, whether it's cybersecurity,
01:15:49artificial intelligence, and other innovations
01:15:53to keep them at the forefront.
01:15:54Because they're really having to do a lot more with less.
01:15:58And we are there to support them.
01:16:01Thank you. Chairman?
01:16:03Thank you. The chair now recognizes
01:16:06Senator Houston for five minutes.
01:16:09Thank you, Mr. Chairman.
01:16:12I would like to thank you, Administrator Loeffler,
01:16:14for being here today.
01:16:16Thank you very much.
01:16:17I know that you have been traveling the country
01:16:21on the America Manufacturing Initiative and Made in America.
01:16:25I always say, as a representative of Ohio,
01:16:29that you can't do Made in America without Made in Ohio.
01:16:31Although, my friends from Indiana
01:16:33would feel the same way, right?
01:16:35Since we're such a big part of the supply chain
01:16:38for our economic and national security,
01:16:40because you have to make it here,
01:16:42you have to be able to make it here in times of crisis
01:16:44if we're going to secure our national security
01:16:48and provide for our economic security.
01:16:52And I will also mention that as I've been talking
01:16:54to Ohio manufacturers, particularly small businesses,
01:16:59they raise this in the context of China and tariffs,
01:17:02that they have no recourse if their items are,
01:17:05if their patents are violated, if their products are stolen.
01:17:08And that's something that I know that you,
01:17:10and led by President Trump, care a lot about.
01:17:13And so I would encourage you to continue
01:17:15to be a strong voice for that.
01:17:20But I will want to touch on the 7A loan program.
01:17:26As I have learned, as I look at manufacturing,
01:17:29I've learned that a lot of small manufacturers
01:17:33over the course of the Biden administration
01:17:34saw that fewer loans were being made in that sector.
01:17:39There were, saw a drop of nearly 2%
01:17:44in the number of loans that were given to manufacturers.
01:17:48Manufacturing, manufacturers in my experience
01:17:51need the loans almost as much as anybody
01:17:53because of the capital costs involved in manufacturing,
01:17:56particularly with the new technologies
01:17:58and the additive manufacturing space.
01:18:01Super important for them to have,
01:18:03to be able to finance the new technologies
01:18:07that will add to manufacturing.
01:18:09Just your thoughts on that program,
01:18:14and then anything that you might want to share
01:18:16that you've learned from your tour
01:18:18in the space that I've talked about
01:18:20as you've been traveling the country.
01:18:22Absolutely.
01:18:22Thank you, Senator.
01:18:23And I look forward to visiting manufacturers in Ohio.
01:18:26We want you to come see us, great.
01:18:28Of course.
01:18:30Well, first of all, the data that we have
01:18:33on our manufacturing loans, both for 7A and for 504,
01:18:39demonstrate that there is great demand
01:18:41and growth in manufacturing loans.
01:18:44And we've seen a 74% increase in the 504,
01:18:48I'm sorry, the 7A loan program
01:18:50relative to President Biden's first 100 days.
01:18:53We've seen a 38% increase overall
01:18:56in the 504 and 7A loans combined.
01:18:59And where we've had conversations with both lenders
01:19:03and our manufacturers is that the loan limits
01:19:07make the loans less attractive.
01:19:10The limit of $5 million has represented
01:19:14a somewhat artificially low cap now
01:19:16about 15 years after the last increase was made.
01:19:20So providing the $10 million loan cap
01:19:23will help us attract more manufacturing loans
01:19:26to provide more capital.
01:19:28I've talked to manufacturers
01:19:29that have already identified the equipment
01:19:32and the workforce that they're gonna hire
01:19:34once they can expand the access to capital,
01:19:36and as well have the access,
01:19:38have the certainty of the tax bill
01:19:41that's in Congress right now.
01:19:43So we feel that manufacturing is spring-loaded in America.
01:19:46We see manufacturers extremely bullish on the opportunities.
01:19:50They've heard from, as I've gone around this country,
01:19:54they've heard from domestic contacts
01:19:57and international contacts
01:19:59that more people want made in America.
01:20:01And so we see tremendous need for workforce as well.
01:20:04And that's been an effort that following the conversations
01:20:07we've had with manufacturers
01:20:09is that we've ramped up our focus on a skilled workforce.
01:20:12I've visited several technical schools, career academies,
01:20:17and seen the great work going on there,
01:20:19the type of training, whether it's CNC machines
01:20:24or welding or HVAC and the like,
01:20:29the tremendous skilled workforce
01:20:32that we have coming in the pipeline is exciting.
01:20:34It's not just a focus on STEM, but it's on building things.
01:20:37It's making manufacturing a hot industry,
01:20:41as my friend Anne calls it, a new color boom,
01:20:45which means we're integrating technology with manufacturing.
01:20:48And we see tremendous demand for those jobs,
01:20:51and it's a great path and really addresses the challenge
01:20:55we've had in the last 30, 40 years
01:20:58where our working communities have been just hollowed out
01:21:01and decimated due to the loss of those jobs.
01:21:04We're gonna rebuild those in this country,
01:21:06and I think the SBA is gonna be a part of that.
01:21:08Yeah, I would just, in closing,
01:21:10share with you on the workforce side of things
01:21:12that we are seeing a resurgence in this country
01:21:16of more high school students graduating career-ready
01:21:20through the tech schools,
01:21:23through career tech education in their classrooms,
01:21:28and through apprenticeships, a growing desire
01:21:30for more students to see that as a more cost-effective
01:21:33pathway into the workforce.
01:21:35But I also caution that in a lot of states
01:21:38we have a demographic problem,
01:21:40that we literally have more people
01:21:41between the ages of 55 and 64 than we do between 15 and 24,
01:21:46which means that we're gonna have to be great at this
01:21:48if we're gonna supply that high-tech workforce
01:21:51and manufacturing workforce for the future.
01:21:54Absolutely, and we'll be focused on training
01:21:57and retraining as well, because we know
01:21:58that there's a great skilled workforce out there
01:22:02that is ready to get back to work,
01:22:03so we'll be focused on that.
01:22:05Thank you, Senator.
01:22:05Thank you for being here today.
01:22:08I want to thank our Administrator Loeffler
01:22:11for being here with us today.
01:22:12I ask unanimous consent that the record
01:22:15of today's hearing remain open for two weeks
01:22:17for members to submit questions, revise,
01:22:19and extend their remarks,
01:22:21and submit additional information to the record,
01:22:23and without objection, so ordered.
01:22:25With that, the Committee on Small Business
01:22:27and Entrepreneurship stands adjourned.
01:22:28Thank you so much.