Bill Hagerty Highlights Role Of Small Business Administration In Entrepreneurship, Disaster Relief

During Wednesday’s Senate Appropriations Committee hearing, Sen. Bill Hagerty (R-TN) spoke about the importance of the Small Business Administration.

Transcript

00:00for agencies under the jurisdiction of the Financial Services and General

00:02Government Subcommittee. Today we welcome the Administrator of the Small Business

00:06Administration, my friend and former colleague Kelly Loeffler. Thank you very

00:11much for being here. I'd like to also extend a warm welcome to Senator Reed as

00:16the new ranking member of the subcommittee. I look forward to working

00:19with you Senator Reed in a productive and bipartisan manner to address the

00:22important issues that face our nation. Small businesses employ 61.7

00:28million people, nearly 46.4% of the U.S. workforce, and generate a comparable

00:33share of U.S. economic activity. To thrive, these businesses must constantly innovate,

00:38remain agile, and manage their resources carefully. Failure to do so can mean

00:43failure to survive. In contrast, some federal agencies seem to expand

00:47regardless of physical constraints, often without making difficult trade-offs that

00:50small businesses have to confront every day. Administrator Loeffler brings with her

00:55a distinguished career in business. She understands what it takes to succeed and

00:59the challenges that entrepreneurs face. I trust she'll apply her vast experience

01:03to ensure the SBA operates efficiently and uses taxpayer dollars wisely. The Small

01:09Business Administration's initial budget request proposes total funding of $600

01:12million in 2026 to manage its operations, its grants, and its loans in its loan

01:17programs. This direct appropriation supports a massive lending portfolio as well. In the current

01:23fiscal year, the SBA will guarantee approximately $72 billion in business loans. This includes

01:29$35 billion under the 7A loan program, which is SBA's flagship tool. It's estimated to back

01:36over 50,000 loans through private lenders with SBA guarantees. The 504 loan program, focused on

01:42real estate and equipment, will provide another $16 billion. The Small Business Investment Company

01:47program will support $6 billion in private investment capital for small businesses. Finally, the Secondary

01:53Markets Guarantee program will provide a $15 billion backstop to help lenders securitize SBA-backed loans and

02:00maintain liquidity. Since most manufacturers in the United States are small businesses, the SBA is

02:06uniquely positioned to assist them in rebuilding their domestic supply chains. In addition to business lending,

02:11the SBA also plays a critical role in disaster recovery. I want to thank the SBA for their critical

02:17work in helping Tennesseans recover from Hurricane Helene in East Tennessee. Disaster loans help

02:23individuals and businesses rebuild physical assets and recover lost income. Applicants must be located

02:28in federally declared disaster areas and meet credit criteria and repayment standards. These programs

02:34collectively represent an important source of credit, helping both entrepreneurs and disaster survivors.

02:40Thank you again, Administrator Loeffler, for testifying today. I look forward to hearing how you plan to

02:45manage your portfolio efficiently and responsibly.