During a Senate Small Business Committee hearing on Wednesday, Sen. Ed Markey (D-MA) spoke about the effect of President Trump's tariffs on costs for small businesses.
00:00Next, we will move to Ranking Member Markey for his questions.
00:05Thank you, Madam Chair.
00:08Ambassador Loeffler, you called Trump's tariffs the single greatest salvation for small businesses
00:15and said that small businesses are grateful for tariffs.
00:19So, do you acknowledge that Trump's tariffs raise costs for small businesses
00:25that are jeopardizing their livelihoods and their employees?
00:29That's what I'm hearing.
00:33Ranking Member Markey, thank you for your question.
00:36This President is fighting for the American worker and American industry,
00:41and what we're seeing is that President Trump's entire economic agenda is counter-inflationary,
00:48and tariffs have been imposed against our small business unfairly,
00:52tariff and non-tariff trade barriers,
00:54disadvantaging not only our small businesses but our workers who have 5 million who have lost their jobs.
01:00In the short term, have the tariffs increased costs for small businesses in the United States?
01:06No, Ranking Member Markey, they have not.
01:08They have not.
01:09No, core inflation for two months in a row have fallen to four-year lows,
01:12and under President Trump's first administration in 2017 we had record low inflation.
01:18I'm talking about small businesses.
01:19Have they increased it for small businesses?
01:21No, that's not what we're seeing at all in the field.
01:23In fact, what we're seeing is that small businesses are investing as evidenced by the 80% increase in loan volume
01:31compared to the prior administration.
01:33So we see small businesses investing to grow.
01:35There's not an 80% increase from January 20th to today in investment.
01:41That is absolutely inaccurate.
01:42Just saying that, that is absolutely not accurate.
01:46So I just want to tell you, here's what I've heard from small businesses in Massachusetts.
01:52It's absolutely not true.
01:54Here's what I've heard from small businesses in Massachusetts.
01:56A small coffee shop in Chatham is worried rising costs will drive customers to bigger businesses.
02:03A toy designer in North Andover furloughed staff and is hesitant to place new orders,
02:08not knowing what tariff policy will be in a few weeks.
02:12A 100% U.S. electric bike manufacturer in Boston is considering entirely shuttering their doors
02:19because of the increased supply costs.
02:22And these are not just anecdotes.
02:24A recent survey conducted by CNBC showed that 70% of small business owners expect a recession
02:32and almost 60% are concerned about tariffs harming their businesses.
02:38So again, Administrator Leflet, what do you say to worried businesses like these?
02:44How is SBA helping these small businesses getting crushed by the Trump tariffs?
02:50This President is making sure that small businesses are never again put in the position of relying on the Chinese Communist Party to manufacture their goods and services.
03:00We saw during 2020, during COVID, the excessive reliance we have on the Chinese Communist Party.
03:06I suspect manufacturers at home are delighted to hear that this President is fighting for them.
03:12I've certainly heard that with the hundreds of manufacturers I've walked on the floors with since I've been in this job.
03:18They are thrilled this President is fighting for them.
03:22And I've heard firsthand that unfair trade policies which are documented...
03:24Well, I'm going to give you another... I will give you another example.
03:26When a witness last week, sitting right where you are, Julie Robbins, who is an owner of Earthquaker Devices, a 100% USA-based manufacturer,
03:36told us that when she asked SBA for help with alternative domestic suppliers, SBA offered her a product that costs 17 times more than her current supplier.
03:48She cannot take on more debt.
03:50She doesn't want more debt.
03:52Small businesses don't want more debt.
03:55And the sustained losses would likely prevent her from getting an additional loan, even with a perfect credit score.
04:03And Julie is now considering offshoring manufacturing.
04:07So SBA should be supporting our small businesses, making sure they can continue to manufacture in the U.S., not encouraging offshore manufacturing.
04:18Senator, I'm pleased to...
04:19And let me just ask one quick question.
04:20Can I just add that we yesterday announced the Make Offshoring Great Again portal
04:24that connects small businesses to one million onshore production facilities, and this is the first...
04:32Well, again, the example we had last week was a 17 times higher price.
04:36Well, this is for all small businesses now to explore.
04:38For the first time ever, using tools available to the private sector that we've made free of cost to the small businesses.
04:43Let me ask one final question.
04:44Has DOGE had access to personal or sensitive small business information on SBA?
04:51Senator, I've been very pleased to work with DOGE.
04:55They are complying with all laws.
04:57Have they had access to personal or sensitive small business information?
05:03No, Senator.
05:04No, Senator.
05:05They have not had access?
05:06No.
05:07Okay, thank you.
05:08Thank you, Madam Chair.
05:09And just for clarification, Administrator Loeffler, I believe you said that that 80% increase was in SBA lending to small businesses, right, through the 7A loan program.
05:24So could you restate that again so that we hear you clearly?
05:28Yeah.
05:29The increase in small business lending through the SBA's 7A loan program compares the first 100 days of President Trump's administration to the first 100 days of the Biden administration.
05:41That's what I thought you said.
05:43Are you comparing that to the final three months of the Biden administration?
05:49No.
05:50She just clarified.
05:51No, she did not.
05:52No, she did.
05:53No, she did not.
05:54She just did while you were visiting.
05:56Would you please restate?
05:57Yeah, the loan data for the SBA's 7A loan program relates to an 80% increase in loan volume for President Trump's first 100 days compared to President Biden's first 100 days.
06:08Right, but that is unfair because he was in the middle of the recession that he had just inherited from Trump.
06:16The only fair comparison is to the last 90 days of Biden and the first 90 days of Trump, okay?
06:22So that number of 80% is completely irrelevant.
06:25Okay, your loan volume is up too.
06:27So she was giving statistics, and I appreciate those statistics.
