During a House Small Business Committee hearing on Wednesday, Rep. Morgan McGarvey (R-KY) questioned SBA Administrator Kelly Loeffler about a report on the agency's proposed layoffs.
00:00Thank you, Mr. Chairman. Thank you, Administrator Loeffler, for being here with us today. I want to start by going back to one of the questions you obfuscated on earlier today when the Ranking Member Velasquez asked if you would provide the committee with copies of the agency reduction in force and reorganization plans that you submitted to the Office of Personnel Management on March 13th and April 14th, as well as the monthly progress reports beginning in May. That's a yes or no question. You said you would do it as appropriate.
00:28So let me ask you, is it appropriate for you to give the oversight body and Congress of the Small Business Association those plans, specifically from March 13th and April 14th, as well as the monthly progress reports? Will you do that for us, and is it appropriate?
00:43Congressman, I have committed to being transparent with this.
00:45Right, but you're not. So is it yes or no?
00:47No, I've been very transparent about our plans.
00:48No, no, no. I tell you what, this is so simple. Will you give us the report you submitted on March 13th and April 14th?
00:54We'll certainly talk with our team, and I have broad authority to run the agency under the administration.
00:58I've got kids, Ms. Lefler, so I'm used to dealing with this type of obfuscation. It's a yes or no question.
01:03Will you give us the report you've already submitted?
01:04No, we'll talk about it. We'll come back to you.
01:05No, we don't need to talk about it. Will you submit it?
01:07We'll certainly get back to you. I have broad authority to run the agency.
01:10The buck has to stop somewhere with the Small Business Administration?
01:14Okay, then yes or no, will you give us the report you gave to OPM?
01:17Yeah, I'll consult with my team and we'll come back to that.
01:18No, no, no. Your team, it's you.
01:20Yeah.
01:21I thought you were in charge.
01:22Yeah, well, we're going to make sure that we uphold all the rules and requirements.
01:26No, no, no. It's a yes or a no question. Will you give us the reports you submitted?
01:28If you're transparent, you'll give them to us.
01:30Yes, we'll...
01:31Yes, great. Thank you. Thank you for saying yes. We will hold you to that.
01:34I also want to go into tariffs now because with tariffs, I've talked about tariffs all the time.
01:40Tariffs are neither good nor bad. Tariffs are a tool.
01:43A hammer is neither good nor bad. It's a tool. It's really good for putting a nail on a wall.
01:47It's not so great for fixing your iPhone.
01:48How you use them matters. And the chaotic nature of the Trump tariff policy has disrupted the economy so much
01:58that even Wall Street analysts have a name for it, the taco term that we're talking about Trump's tariff policy.
02:04But that uncertainty is not funny for small businesses.
02:07In fact, the Wall Street Journal Small Business Index found that 58% of small businesses say the economy has gotten worse.
02:1466% of small businesses believe tariffs are having a negative impact.
02:19And 51% anticipate a recession coming up soon.
02:24Do you have any relief efforts or certainty that you can give small business owners in my district of Louisville, Kentucky,
02:30all of whom are complaining to our office about this, that there will be certainty in the tariff policy specifically?
02:36President Trump is fighting for fair trade. He's fighting for American industry and American workers.
02:41So you don't have an answer on that either.
02:42No one has fought for American workers.
02:44Okay, this is good. I'm going to reclaim my time.
02:45I'm going to reclaim my time. I'm reclaiming my time right now.
02:48Okay, so I've got three kids. They're in elementary and middle school.
02:51When they don't answer a question directly, I know what they're up to. I know what you're up to, too.
02:55So we're just going to move on. Hopefully we can get to some good work here today.
02:58I got a lot of questions about your fiscal year 2026 budget request, and I'm just hoping you can clarify a few of those today
03:05because I'm looking at the budget request right now, and I'm on the Veterans Committee.
03:11I have over 40,000 veterans who live in Louisville, Kentucky.
03:13I'm deeply concerned about veterans' issues and how they can make a really good life for themselves
03:18after they put on the uniform to serve us.
03:21But the plain reading of your budget says that it is one of the 15 programs that looks like it is going to be ending
03:28that's our Veterans Business Outreach Centers that help veterans.
03:33Last year, the Veterans Business Outreach Centers, they held more than 1,900 training events,
03:37including 867 boots-to-business reboot classes at more than 180 military institutions.
03:44Boots-to-business is a program passed by Congress.
03:47Testifying in the Senate, you said, I want to correct the assumption that we are eliminating these veteran business outreach centers.
03:52And today, with Mr. Tran's questions, you said that something similar.
03:56So I want to ask, is the Veteran Business Outreach Center program one of the 15 entrepreneurial development programs
04:04mentioned in your budget request?
04:07We have said that we will continue to fund it, that the $10 million funding level is a floor, not a ceiling.
04:14We have, in fact, 35 boots-to-business efforts going on this week that veterans can have.
04:19Okay, but I want to drill into this really quickly.
04:20I'm reclaiming my time.
04:21I want to drill into this really quickly.
04:22By cutting those 15 programs, you cut $167 million.
04:27You say that you're going to put them over in the Small Business Development Center,
04:31but you increase the funding for that only by $10 million.
04:35You say it's a floor, but it's in here.
04:36It's in the budget.
04:37It says exactly what it is.
04:39So it doesn't seem possible that you have the funding for a congressionally approved program
04:45which has put thousands of veterans not just back to work, but having the American dream of starting their own business.
04:51Your budget eliminates it, and again, you are not giving us a straight answer.
04:55I wish you would do that because just yesterday on the House floor, this committee passed seven bipartisan bills.
05:00We work together for small businesses so that everyone can have the American dream,
05:05and I hope we can have that relationship with you.
