[inaudible conversations] we are going to get started. Thank you. Good morning. The hearing will come to order. I thank everyone for joining us this morning and i want to especially thank my colleagues for joining us today for the House Committee on business hearing the response to covid19. We have had a hard stop act once again. We will move as quickly as we can but should we not be able to accommodate every member in person today, we will be accepting statements for the record until thursday, april 30. This important hearing i want to mention the chairwoman has been in our thoughts and prayers we wish you nothing but the best as you recover. Small businesses and entrepreneurs play a Critical Role within the american economy. Not only do they employ half of the nations workers but created two out of every three new jobs in the nation. You only need to take the poll from main street america. It is demonstrated Small Businesses and employees and the Response Congress created with a Paycheck Protection Programs with as many Small Businesses as possible during emergency. A low interest loan can be forgiven if used for payroll and Small Businesses have a tool available to assist them as they weather the storm experiencing extremely high demand and within a two week span all the money was exhausted i devote my colleagues to inject more dollars into the program as quickly as possible. Hosting a bipartisan poll with a Small Business administrator and those that have the local Small Businesses to the leader of the sba we will hear for those that are fighting for their Small Businesses. And hearing their thoughts and ideas how the cares act have been implemented and how congress can improve the moving forward the sba moved quickly in one week while there are several bumps in the road and more clearly then necessary rose to the challenge of assisting when no other options were available it is critically important we Work Together to assess the nation Small Business and startups they are counting on federal assistance so lets deliver. I yield back. Due to the high demand for participation, we will do our best to accommodate all the members who wish to provide testimony. I remind everyone we have two minutes to provide testimony within the framework to the best of your abilities so lets get started let me welcome congresswoman and the chairwoman of the subcommittee. Thank you madam chair and members of the committee we are honored to serve with you and not to misrepresent those in the First District in iowa it is all hard time for our Small Businesses and all across the country and my state and district it is something that we are all coming together to do more to make sure folks have what they need what we do know as this continues we will have to step up and listen to the folks in our district about what they need and one of the stories i want to quickly share today is from amman and monticello that has a Sporting Goods store. With High School Sports canceled hes sitting on over 100,000 of uniforms and equipment he cannot sell in his wondered if he can keep the store afloat. This is why we do this today. There is a big thing for me. We need to make sure, we did today and must do more to make sure communitybased Financial Institutions also have the dollars to put out there into the communities. Is not just about the big businesses that need millions of dollars but 10000 or 5000 or 20000 who have ten employees. And in particular with the Credit Unions we need to make sure that this touches folks specifically those in my district. And then to get them what they need. I yield back. To contact the infrastructure is recognized for two minutes. Is so great to see you. And also to the Ranking Member thank you for your work thank you for giving me the opportunity to testify in the Congressional District and the whole country is in this together to share with minnesotans what they have experienced during the nation wide shut down and how we can come out of this more resilient and selfreliant and stronger than ever. Major lifelines for Small Businesses of my district to be out in segments to be forthcoming struggling to understand what was made that they made Small Businesses believe they would receive loans in a timely fashion instead some received a fraction of what they were promised in psalm receive nothing at all i know individuals at sba and treasury are trying to implement each part of the cares act to give as much clarity as possible along the way but my constituents are rightfully frustrated. As a Small Business owner mysel myself, financial uncertainty is completely destabilizing any business fear by the time they get their loans or notice the application has been processed and approved they will have shut their doors. With this in mind we have priorities as a Small Business committee mom and pop shops are recipients of the loans businesses as few as two or three employees matter even those as a maximum of 500 we must prioritize getting ppp into the doors as quickly as possible im happy we are passing legislation today to replenish the ppe program and critical funds for Small Businessmen and women if we had to put aside partisanship that is now i stand ready and willing to assist as i said in the beginning our nation together will come out stronger and more resilient and selfreliant than ever. We must recognize Small Businesses are the engine of our economy. I yield back madam chair. The gentleman from new jersey chairman of subcommittee of Economic Growth is exercised on recognized for two minutes. Thank you for the opportunity to talk about Critical Issues those across the country that depend on Small Business for their livelihood during the crisis. Every day my staff and i talk with Small Business owners in my district to have had to close their doors or come close. Talking with neighbors trying to get unemployment hoping the money in the account is enough to pay rent or mortgage and hoping to keep food on the table. We will pass a bill to provide additional relief to set aside two thirds of trillion dollars aim to help Small Business owners keep people on payroll if you been a Small Business owner it has been a lifesaver we need to be clear the Paycheck Protection Program does not provide a longterm solution. From day number one we have seen the Paycheck Protection Program failed an inconsistent and unfair rules that make it difficult for lenders to get online and Small Business to get the support they need and Small Business want to do the right thing struggle to meet Program Requirements including the formula that exclusion of local nonprofits that are at the frontlines of the crisis. It doesnt work for the small sectors of the country. Money goes to big business while one mom and pop shops wait for congress to add more money these all need to be fixed now. Even if we fixed this and fully funded for months to come it will not solve the real problem we face we have to get the country moving forward and we have to stand up to be able to do so i urge all of us to Work Together to make sure that happens and we know who is sick and healthy to open the economy again. I yield back. Ranking member from pennsylvania. Thank you matter chairwoman. We often stress Small Business is truly the backbone of our economy. Perhaps this has never been more evident during the coronavirus pandemic which we recognize is truly a Public Health and economic crisis the h district of pennsylvania is home to many Small Businesses all of which have been significantly affected by the ongoing coronavirus outbreak as the government forced businesses to temporarily close their doors thanks to the resources of the 116th congress and the cares act , nearly 70000 Small Businesses in pennsylvania were approved for Paycheck Protection Program loans to keep them afloat while we fight the invisible enemy and fortunately far too many businesses in my district were shut out of the program when the funds ran dry last week. But that size limitation and guidance did not consider the unique Business Models of Agricultural Producers with many farmers keeping them from accessing relief. I am pleased to see the progress we have made to include farmer farmers, more must be done to ensure the future of our Agricultural Producers and food supply chain. Over the past weeks i have spoken with workers and Small Business owners and farmers who are truly counting on the Paycheck Protection Program. They are counting on congress to help them weather the storm even though Small Businesses they are counting on congress to help them to weather this storm. Even though our Small Businesses face trial, there are many that have stepped up. The masondixon distillery in adams county, Small Businesses have changed course to provide Hand Sanitizer and other items needed by frontline responders. They are not only the backbone of our economy but the heart of our community and Congress Must deliver on our promises for them. I think the Ranking Member for your leadership and continued support in these trying times. I yield back the balance of my time. The gentleman yields back, now we recognize the gentleman from colorado, the chairman of the subcommittee on innovation and workforce development. Thank you for convening this session of the business committee. Im honored to serve beside you and others in these unprecedented times. I heard from constituents within the Paycheck Protection Program have been lifelines but shortages of these programs have been well documented. Im pleased we are voting to ensure these programs have the funding they need. I heard our nations chambers of commerce and 501 c 6 organizations need assistance. My local chambers were forced to lay off staff, cut hours and are facing challenges in accomplishing their critical mission. We have to address that problem and provide funding to the 501 c 6 organizations. The Small Business credit support act would help Business DevelopmentCompanies Invest more money under the Small BusinessInvestment Company program, increase the amount they invest in these fdics to incentivize main street to help during these critical times. As millions of business apply for and receive assistance from the Small Business administration we need to address the Cyber Security need of the sba considering recent developments that might have had their personal information exploited from cybervulnerability. My bill would require them to report breaches within 180 days and create better infrastructure framework to address vulnerabilities. As we all know over site of important loan and Grant Programs is one of the most important rules of the committee. We are concerned about recent reports of larger publicly traded Companies Using programs intended for the nations Small Businesses. I look forward to working with all members of the committee to address any misuse of these programs, to ensure transparency and accountability are hallmarks a nations response to this crisis with congresss actions Going Forward. I look forward to working with you to protect our businesses and expand investment in our nations Small Business, i yield back. I now recognize the gentleman from North Carolina for two minutes. Thank you. Fellow Committee Members, thank you for taking time to hold this hearing today. I wish we were meeting under different circumstances, no one could have anticipated the devastation this virus has caused the American People especially Small Business owners and their employees. Congress came together and reassured Small Business by providing necessary relief through the Paycheck Protection Program. This program has helped 39 Small Businesses where 8 billion of relief, as the coronavirus forced congress to stay home, i had the opportunity to visit cordwood which is a specialty textile manufacturer and the largest employer in anderson county, North Carolina. To fulfill their civic duty cordwood has begun the process of manufacturing, and ppp applications went online, filed an application to receive loan. Due to a snafu in the process they were unable to receive a loan on april 16th. And Small Businesses, and in my opinion everyone involved is working to ensure Small Businesses survive the crisis. The easiest way to address this concern is safely reopening the economy. My biggest observation is the federal government, and and leaders at all levels of government can make educated decisions. We are gathered here today to discuss how the committee can work to provide needed relief to Small Businesses. I would like to commend leaders throughout the country for stepping up to the plate and working with the sba and treasury. And dutifully stepped up, lenders have been able to, better than any agency. My time is expired and i yield back. Miss davis. Thank you for holding this hearing on the covid19 response and recovery. I heard firsthand how the coronavirus is impacting Small Businesses in the livelihood of my constituents. Small businesses are the backbone of our economy. Now where is that more clear than in the kansas district. Failing to support Small Businesses through this crisis we have enormous and devastating consequences. Incredibly important, state and local orders are creating tremendous challenges for Small Business owners and employees. There are many challenges and fixes we need to incorporate to the emergency disaster injury loans for the Paycheck Protection Program. We need more money from these programs, i am glad the houses voting to embrace that funding but it is not enough. Congress must passed hr 6506, the Paycheck Protection Program extinction asked which would provide 900 billion in additional ppp funding. Not just the corporations needed in the wellconnected. They make it into the hands of minorities, women and veteran owned businesses. Im encouraged the ppp act which the house will vote on today set aside 60 billion on small and medium lenders. And development Financial Institutions. It is critical congressional intent followed implementation of these programs. And fewer than 500 employees, the sba and treasury excluded Tribal Enterprises especially tribal gaining. In areas of invaluable support for tribal government to provide housing and other services, and on both sides of the aisle, we are making progress on some of this, i yield back. The gentle lady yields back. The gentleman from california, the subcommittee on investigations, please coming. Thank you for calling this hearing, and the Economic Injury this is a setaside and lending authority. By doing this we address the banks behavior that made such a setaside necessary in the first place with my constituent young own to not a repair shop and has a banking account with bank of america and a credit card with jpmorgan chase. Despite longstanding relationships both of these banks refused to accept his application ppp loans. Ppp must b