Transcripts For CSPAN2 Hearing On Coronavirus Pandemic Acce

Now in april this year the Federal Reserve bank in new york reported that minority and women owned businesses are significantly more likely to show signs of limited Financial Health and more likely to be classified as at risk for distress the nonminority Small Businesses. Further companies are three times likely as Healthy Business to close because of a two month the ppps program established under the cares act and administered by the Small Business administration and treasury for distress with responded to the covid19 pandemic. Recent analysis of the color of change in the United States found only one in ten africanamerican owned businesses received the requested funds through the program. I have heard from many a minority owned businesses who did everything right, they did not give a low number or loan in the first round, many minority businesses share the enhancement act was not adequately designed to enhance or assist Small Businesses. Thank you to the partnership of the Financial Services, chairwoman Maxine Waters and Small Business chair adjustments were with made in the second rounds of funds, on june 30 a Small Business administration announced 4. 9 million totaling 521 billion have been granted by the ppp. So now let me just say i look forward to hearing from our distinguished witnesses who share the insight regarding the ongoing fight for minority and women businesses and what steps the private sector can state to ensure necessary inclusion in the economy. The chair now recognizes the Ranking Member, my good friend and colleague in someone who i am delighted although its on zoom today, Ranking Member congresswoman ann wagner. I think you madam chairwoman, its a delight to you and all of our committees this afternoon and thank you for holding, i want to welcome and thank you for our witnesses for testifying about the obstacles for women and minority owned businesses face when it comes to Access Capital and Financial Services. When this pandemic began and businesses were forced to close their doors in order to prevent the spread of the coronavirus, Congress Took swift action to stabilize the economy, keep americans employed and businesses from closing. In giver healthcare workers the resources that they need to combat the disease. Those actions included providing regulatory relief to lenders and access to emergency programs through the Federal Reserve and the Small Business administration. I want to highlight a few specific solutions that congress provided to ensure u. S. Businesses continue to have access to the relief that they need. Through the lens who need that the most bright and finally with authorized 650 million for forgivable loans on the paycheck protection program. We should support it. More than 51 million in market jobs and over 80 percent of all Small Businesses and their employees. The program included the amount of 10 billion, would be Financial Institutions. And when it comes to assuring that women and minority owned businesses can access these loans and other funding, led to see the some lenders have taken the initiative. Rep. Ann wagner city groups in the bank of america, they have provided data, to ensure that the ppe is available with diverse group. And for example, jc morgan set a new program to focus on underserved entrepreneurs and bank of america is conducting an outreach to Small Business clients to low and moderate income neighborhoods where of awareness. When is not just our nations banks are helping those in need. The me tell you about what happened in st. Louis last month. The banker, from midwest bank center, was getting his hair cut when he overheard that the African American barber shop had taken out a 5000dollar loan to pay bills. And the maker offered to assist her. Fred ppe eat loan or ente that r action led to the bank signing a deal with the National Minority suppliers of counsel, a group that ups minority owned businesses access ppe loans. I commend these professionals for their outreach and average other firms in the industry to follow suit and they have not done so already. Also introduced that ppe forgiveness act, my friend and colleague from missouri. To create or certify a loan forgiveness calculator to resolve confusion between winners and Small Businesses over what cost should be calculated. And help Small Businesses. In this bill has the support of the u. S. Black chambers, heartland st. Louis, ive tba Missouri Bankers Association and so many others. It is especially important for businesses that dont have the resources to hire outside consultants to help them with the forgiveness process. While this hearing is about access and capital during the pandemic, this subcommittee must also focus on permanent regulatory performs to lift and strengthen minority and women owned businesses beyond the pandemic. These businesses benefit and we can cut costs and expand investors to put the money to work. I think amanda chairwoman and yield back. Thank you. The chair now recognizes the chair of the full committee. Chairwoman Maxine Waters. It is indeed an honor for me to introduce a buddy who really needs no introduction. Shes an advocate for the people as we talk about the ppe eat, and other Financial Service issues, please know that her figure figure print and footprit are all over and she has been recognized for her great leadership. No further words. Chairwoman Maxine Waters. From the great state of california. I recognize you for one minute for as much time as you must take. Oh my goodness. While i want to thank you so much for all of the work that you are doing to really get the whole discussion of inclusion and adversity in that national eyesight pretty doing a wonderful job. Maxine waters thank you for convening this important hearing. And for struggles that women and minority businesses for the axes and capital. Before the covid19 crisis began, as you and said. The women and minority owned businesses and serious is challenges is accessing capital. In the 2018 data shows that minority Business Owners were left to be approved for loans but were approved for low amount than and higher Interest Rates and the white counterparts. And that went women and minority owned Business Owners, applied for loans are rejected due to a lack of access by the widening racial and these wide wealth gaps. And despite the challenges, they have grown ten times faster than all of the Small Businesses. However, we will never grow with the gaps the has provided for expanded opportunities for women and people of color. Until we can address these capital challenges. So very pleased to be with you today. I look forward to hearing from our witnesses read and i think him for being here. I look forward to hearing them. And thank you mountain chairwoman. Today i too am honored to welcome the testimony of our four witnesses. President and ceo of the United States black chamber of commerce. In the former ceo and on the fisa Small Business and white house africanamerican leadership council. Our next witnesses, chairwoman of the board of the United States Hispanic Chamber of commerce. Carmen is also the president and ceo of sdi international corp. Which he founded in 1992. Our third witnesses karen kerrigan, president and ceo of the Small Business and entrepreneurship counsel. Aaron has been appointed to numerous federal Advisory Boards including the National Womens district council. U. S. Direct business dialogue and the United States treasury taxpayer advisory. Our final witness is janel rated president of an automotive group. She is the only secondgeneration africanamerican woman dealer in the country. Janel also serves as the chair of the board of directors for the Cincinnati Branch of the Federal Reserve bank rate and witnesses who are reminded that your oral testimony will be limited to five minutes. At time will go off at the end of your time. I asked that you respect the members and other witnesses by wrapping up your oral testimony. And without objection, written statement will be made part of the record. Ron your now recognize for five minutes to give an oral presentation on your testimony. Thank you. Thank you. And distinguished members of the subcommittee the opportunity to talk to you today. My name is ron i serve as the president ceo. Nations leading voice for black businesses throughout the country. I represent hundred 45 chambers in 42 states and states of over 332,000 black owned businesses. Advocacy, accessing capital, contracting opportunities, training and development. Yes black tumor better known as for the past decade has been providing leadership and advocacy the realization of economic after the Creation Resources and initiatives that we can support the africanamerican but businesses. And they are developing ands and growing. Clearly the minority owned businesses, are critical components of the economy. These funds collectively provide 1 trillion in annual receipts and contribute nearly 9 million jobs. They have been the Fastest Growing segment of businesses and results crating 40 percent of jobs. His black Business Owners and entrepreneurs in history and data shows the resources, and accessing the capital amongst other challenges. My these facts, we believe the repeatedly engineered policies, has put a stop to continuing disparities to the blackowned businesses. The participant station in the underscores the continual role to the establishment of Public Policy that addresses continuing challenges in accessing capital and Financial Services. Mike sleep ongoing help, within black americans is the dispersing. In the lost threepoint 3m Small Businesses for the Second Quarter of the year. And the black number 2. 41 percent pretty nearly 450,000 blackowned businesses close between the month of february and april. In addition to this important decline, black americans the labor loss. Nearly 17 percent last month. Despite the number of blackowned businesses in the fascination market, these enterprises faces Economic Development revenue loss prior to this panic in part because black art over lovingly. [inaudible]. In part because they were already in weaker financial positions. The pandemic simply took his way and even though action resulted in nearly 700 billion of relief, its too Small Businesses through the pay roll production program, this we get the eight and treasury records show that the case of structural discrimination, and the program more than 650,000 ppe loans, about 150,000 only 143 lacquers received a loan of that size. [inaudible]. They found far less or not at all. Fortunately theres disparities by creating mutual funding and effective federal policy. The jumpstart recovery, recent recently. [inaudible]. It focuses on supporting the black businesses while providing grassroots assistance to the Smaller Companies and one digital marketplace. Refugees also in neighbor whos in the lending to announce the black business certification program. His increasing about the federal government and the support of americans. These programs and government rhetoric and truly improve this to our communities. [inaudible]. These are just a few actions to and we walk lofgren fr legislation should not overlook black markets. In this expanding racial discrepancy. We welcome the challenges that the chamber has passed. But to understand the importance of safeguarding the black community. Equitable policies that would include aiding children, to make sure that the most vulnerable impacted, black people received focuses between 2021 and 2022. An authorized the obama Era Initiative to guarantee that like government contracts and also ensure that the discussion of it new infrastructure bill the black and local businesses are included in the complex outcome. [inaudible]. And certified the changes with black america, and pass legislation that will provide access to sba loans, and the investment in the start of spring finally lawmakers must pass legislation to quantify the into law. [inaudible]. The gentleman time is upbraided by thank you very much. Thank you. I now recognize ms. Carmen. Recognize you for five minutes to give an oral presentation on your testimony. [silence]. Can you hear me. Yes pretty thank you pretty. Thank you so much for the opportunity to share testimony on behalf of the u. S. Hispanic chamber of commerce. Im the president ceo of the international. One of the minority women owned businesses in the u. S. My team has been providing Business Services for the fortune 500 companies for the last 27 years. I am hispanic immigrant and for women and minority owned businesses. Today and monitored to represent that chamber of commerce, is a chairwoman. Americas largest hispanic business organization. We operate for more than 250 local chambers and Business Associations nationwide. We represent over 4. 7 million hispanic businesses. They contribute 800 billion to the u. S. Economic. The Hispanic Community has been affected the most by covid19. And by the University Study shows a 65 percent of latino on companies in the u. S. Report that will not be able to continue operating beyond six months. 60 percent of latino have lost jobs, and because since the pandemic began. Furthermore working from home is not an option for over 84 percent of latinos. Making our community extremely vulnerable to the challenges our country is facing. Millions of latino families and businesses is not receiving any support from the cares act including 40 percent of households earning less than 25000 a year. His urgency about the situation, we will collaborate with congressional leaders to participate in the creation of legislation that will economically impact us. We are expandable opportunities for business communities to brisbane and federal procurement contracts. And after to provide necessary education to our members pretty for 20 of 19, americas 30 million smaller businesses. [inaudible]. An additional 65 billion for minority business, through economic programs. Implemented by treasury and sb eight. Expand lending for minorities institutions and Community Development Financial Institutions. More transparent reporting from the paycheck protection program. [silence]. Improving in the management, the tradition and innovation of these programs. Undocumented to Business Owners and workers writing that in 2018, take advantage of the system cares act. I would like to share related to the economic impact. In related to covid19, latinos started businesses that three times the rate of the national average. In latinos started business is fixed times that pretty one out of every businesses, run by hispanic entrepreneur. 60 million of these americans, i found 2. 3 trillion of the u. S. Economic activity. Financial institutions to provide communities and an additional 1. 38 trillion will be generated from the u. S. Economy. If we fail to support the businesses, our economy will suffer by believes pretty quickly the investment needed from the federal government in order to rescue them. I think every time we look forward to collaborating with you to create a lasting change thank you pretty. Thank you very much. Karen, your now recognize for five minutes to give an oral presentation. Think you very much. Good afternoon. And all members of the community. Thank you for the opportunity to be part of this hearing today ever focusing on the critical issue of access to capital for women in low income individuals. Particularly during this unprecedented time for all businesses. The council is not a casey organization dedicated to Small Business promoting entrepreneurship right in front of more than 25 years now, we worked on range of issues including access to capital to four start of activity is Small Businesses and in growth. As noted by my fellow witnesses close financial network, longstanding Financial Institutional biases, and underserved markets, you need capital to start of operate and grow their businesses. By a bipartisan cares act, the money out the door quickly, and helped many Small Businesses in the Distribution Channel of the first punch, of the funding underscored how the traditional Federal Reserve<\/a> bank in new york reported that minority and women owned businesses are significantly more likely to show signs of limited Financial Health<\/a> and more likely to be classified as at risk for distress the nonminority Small Business<\/a>es. Further companies are three times likely as Healthy Business<\/a> to close because of a two month the ppps program established under the cares act and administered by the Small Business<\/a> administration and treasury for distress with responded to the covid19 pandemic. Recent analysis of the color of change in the United States<\/a> found only one in ten africanamerican owned businesses received the requested funds through the program. I have heard from many a minority owned businesses who did everything right, they did not give a low number or loan in the first round, many minority businesses share the enhancement act was not adequately designed to enhance or assist Small Business<\/a>es. Thank you to the partnership of the Financial Service<\/a>s, chairwoman Maxine Waters<\/a> and Small Business<\/a> chair adjustments were with made in the second rounds of funds, on june 30 a Small Business<\/a> administration announced 4. 9 million totaling 521 billion have been granted by the ppp. So now let me just say i look forward to hearing from our distinguished witnesses who share the insight regarding the ongoing fight for minority and women businesses and what steps the private sector can state to ensure necessary inclusion in the economy. The chair now recognizes the Ranking Member<\/a>, my good friend and colleague in someone who i am delighted although its on zoom today, Ranking Member<\/a> congresswoman ann wagner. I think you madam chairwoman, its a delight to you and all of our committees this afternoon and thank you for holding, i want to welcome and thank you for our witnesses for testifying about the obstacles for women and minority owned businesses face when it comes to Access Capital<\/a> and Financial Service<\/a>s. When this pandemic began and businesses were forced to close their doors in order to prevent the spread of the coronavirus, Congress Took<\/a> swift action to stabilize the economy, keep americans employed and businesses from closing. In giver healthcare workers the resources that they need to combat the disease. Those actions included providing regulatory relief to lenders and access to emergency programs through the Federal Reserve<\/a> and the Small Business<\/a> administration. I want to highlight a few specific solutions that congress provided to ensure u. S. Businesses continue to have access to the relief that they need. Through the lens who need that the most bright and finally with authorized 650 million for forgivable loans on the paycheck protection program. We should support it. More than 51 million in market jobs and over 80 percent of all Small Business<\/a>es and their employees. The program included the amount of 10 billion, would be Financial Institutions<\/a>. And when it comes to assuring that women and minority owned businesses can access these loans and other funding, led to see the some lenders have taken the initiative. Rep. Ann wagner city groups in the bank of america, they have provided data, to ensure that the ppe is available with diverse group. And for example, jc morgan set a new program to focus on underserved entrepreneurs and bank of america is conducting an outreach to Small Business<\/a> clients to low and moderate income neighborhoods where of awareness. When is not just our nations banks are helping those in need. The me tell you about what happened in st. Louis last month. The banker, from midwest bank center, was getting his hair cut when he overheard that the African American<\/a> barber shop had taken out a 5000dollar loan to pay bills. And the maker offered to assist her. Fred ppe eat loan or ente that r action led to the bank signing a deal with the National Minority<\/a> suppliers of counsel, a group that ups minority owned businesses access ppe loans. I commend these professionals for their outreach and average other firms in the industry to follow suit and they have not done so already. Also introduced that ppe forgiveness act, my friend and colleague from missouri. To create or certify a loan forgiveness calculator to resolve confusion between winners and Small Business<\/a>es over what cost should be calculated. And help Small Business<\/a>es. In this bill has the support of the u. S. Black chambers, heartland st. Louis, ive tba Missouri Bankers Association<\/a> and so many others. It is especially important for businesses that dont have the resources to hire outside consultants to help them with the forgiveness process. While this hearing is about access and capital during the pandemic, this subcommittee must also focus on permanent regulatory performs to lift and strengthen minority and women owned businesses beyond the pandemic. These businesses benefit and we can cut costs and expand investors to put the money to work. I think amanda chairwoman and yield back. Thank you. The chair now recognizes the chair of the full committee. Chairwoman Maxine Waters<\/a>. It is indeed an honor for me to introduce a buddy who really needs no introduction. Shes an advocate for the people as we talk about the ppe eat, and other Financial Service<\/a> issues, please know that her figure figure print and footprit are all over and she has been recognized for her great leadership. No further words. Chairwoman Maxine Waters<\/a>. From the great state of california. I recognize you for one minute for as much time as you must take. Oh my goodness. While i want to thank you so much for all of the work that you are doing to really get the whole discussion of inclusion and adversity in that national eyesight pretty doing a wonderful job. Maxine waters thank you for convening this important hearing. And for struggles that women and minority businesses for the axes and capital. Before the covid19 crisis began, as you and said. The women and minority owned businesses and serious is challenges is accessing capital. In the 2018 data shows that minority Business Owners<\/a> were left to be approved for loans but were approved for low amount than and higher Interest Rates<\/a> and the white counterparts. And that went women and minority owned Business Owners<\/a>, applied for loans are rejected due to a lack of access by the widening racial and these wide wealth gaps. And despite the challenges, they have grown ten times faster than all of the Small Business<\/a>es. However, we will never grow with the gaps the has provided for expanded opportunities for women and people of color. Until we can address these capital challenges. So very pleased to be with you today. I look forward to hearing from our witnesses read and i think him for being here. I look forward to hearing them. And thank you mountain chairwoman. Today i too am honored to welcome the testimony of our four witnesses. President and ceo of the United States<\/a> black chamber of commerce. In the former ceo and on the fisa Small Business<\/a> and white house africanamerican leadership council. Our next witnesses, chairwoman of the board of the United States<\/a> Hispanic Chamber<\/a> of commerce. Carmen is also the president and ceo of sdi international corp. Which he founded in 1992. Our third witnesses karen kerrigan, president and ceo of the Small Business<\/a> and entrepreneurship counsel. Aaron has been appointed to numerous federal Advisory Boards<\/a> including the National Womens<\/a> district council. U. S. Direct business dialogue and the United States<\/a> treasury taxpayer advisory. Our final witness is janel rated president of an automotive group. She is the only secondgeneration africanamerican woman dealer in the country. Janel also serves as the chair of the board of directors for the Cincinnati Branch<\/a> of the Federal Reserve<\/a> bank rate and witnesses who are reminded that your oral testimony will be limited to five minutes. At time will go off at the end of your time. I asked that you respect the members and other witnesses by wrapping up your oral testimony. And without objection, written statement will be made part of the record. Ron your now recognize for five minutes to give an oral presentation on your testimony. Thank you. Thank you. And distinguished members of the subcommittee the opportunity to talk to you today. My name is ron i serve as the president ceo. Nations leading voice for black businesses throughout the country. I represent hundred 45 chambers in 42 states and states of over 332,000 black owned businesses. Advocacy, accessing capital, contracting opportunities, training and development. Yes black tumor better known as for the past decade has been providing leadership and advocacy the realization of economic after the Creation Resources<\/a> and initiatives that we can support the africanamerican but businesses. And they are developing ands and growing. Clearly the minority owned businesses, are critical components of the economy. These funds collectively provide 1 trillion in annual receipts and contribute nearly 9 million jobs. They have been the Fastest Growing<\/a> segment of businesses and results crating 40 percent of jobs. His black Business Owners<\/a> and entrepreneurs in history and data shows the resources, and accessing the capital amongst other challenges. My these facts, we believe the repeatedly engineered policies, has put a stop to continuing disparities to the blackowned businesses. The participant station in the underscores the continual role to the establishment of Public Policy<\/a> that addresses continuing challenges in accessing capital and Financial Service<\/a>s. Mike sleep ongoing help, within black americans is the dispersing. In the lost threepoint 3m Small Business<\/a>es for the Second Quarter<\/a> of the year. And the black number 2. 41 percent pretty nearly 450,000 blackowned businesses close between the month of february and april. In addition to this important decline, black americans the labor loss. Nearly 17 percent last month. Despite the number of blackowned businesses in the fascination market, these enterprises faces Economic Development<\/a> revenue loss prior to this panic in part because black art over lovingly. [inaudible]. In part because they were already in weaker financial positions. The pandemic simply took his way and even though action resulted in nearly 700 billion of relief, its too Small Business<\/a>es through the pay roll production program, this we get the eight and treasury records show that the case of structural discrimination, and the program more than 650,000 ppe loans, about 150,000 only 143 lacquers received a loan of that size. [inaudible]. They found far less or not at all. Fortunately theres disparities by creating mutual funding and effective federal policy. The jumpstart recovery, recent recently. [inaudible]. It focuses on supporting the black businesses while providing grassroots assistance to the Smaller Companies<\/a> and one digital marketplace. Refugees also in neighbor whos in the lending to announce the black business certification program. His increasing about the federal government and the support of americans. These programs and government rhetoric and truly improve this to our communities. [inaudible]. These are just a few actions to and we walk lofgren fr legislation should not overlook black markets. In this expanding racial discrepancy. We welcome the challenges that the chamber has passed. But to understand the importance of safeguarding the black community. Equitable policies that would include aiding children, to make sure that the most vulnerable impacted, black people received focuses between 2021 and 2022. An authorized the obama Era Initiative<\/a> to guarantee that like government contracts and also ensure that the discussion of it new infrastructure bill the black and local businesses are included in the complex outcome. [inaudible]. And certified the changes with black america, and pass legislation that will provide access to sba loans, and the investment in the start of spring finally lawmakers must pass legislation to quantify the into law. [inaudible]. The gentleman time is upbraided by thank you very much. Thank you. I now recognize ms. Carmen. Recognize you for five minutes to give an oral presentation on your testimony. [silence]. Can you hear me. Yes pretty thank you pretty. Thank you so much for the opportunity to share testimony on behalf of the u. S. Hispanic chamber of commerce. Im the president ceo of the international. One of the minority women owned businesses in the u. S. My team has been providing Business Services<\/a> for the fortune 500 companies for the last 27 years. I am hispanic immigrant and for women and minority owned businesses. Today and monitored to represent that chamber of commerce, is a chairwoman. Americas largest hispanic business organization. We operate for more than 250 local chambers and Business Associations<\/a> nationwide. We represent over 4. 7 million hispanic businesses. They contribute 800 billion to the u. S. Economic. The Hispanic Community<\/a> has been affected the most by covid19. And by the University Study<\/a> shows a 65 percent of latino on companies in the u. S. Report that will not be able to continue operating beyond six months. 60 percent of latino have lost jobs, and because since the pandemic began. Furthermore working from home is not an option for over 84 percent of latinos. Making our community extremely vulnerable to the challenges our country is facing. Millions of latino families and businesses is not receiving any support from the cares act including 40 percent of households earning less than 25000 a year. His urgency about the situation, we will collaborate with congressional leaders to participate in the creation of legislation that will economically impact us. We are expandable opportunities for business communities to brisbane and federal procurement contracts. And after to provide necessary education to our members pretty for 20 of 19, americas 30 million smaller businesses. [inaudible]. An additional 65 billion for minority business, through economic programs. Implemented by treasury and sb eight. Expand lending for minorities institutions and Community Development<\/a> Financial Institutions<\/a>. More transparent reporting from the paycheck protection program. [silence]. Improving in the management, the tradition and innovation of these programs. Undocumented to Business Owners<\/a> and workers writing that in 2018, take advantage of the system cares act. I would like to share related to the economic impact. In related to covid19, latinos started businesses that three times the rate of the national average. In latinos started business is fixed times that pretty one out of every businesses, run by hispanic entrepreneur. 60 million of these americans, i found 2. 3 trillion of the u. S. Economic activity. Financial institutions to provide communities and an additional 1. 38 trillion will be generated from the u. S. Economy. If we fail to support the businesses, our economy will suffer by believes pretty quickly the investment needed from the federal government in order to rescue them. I think every time we look forward to collaborating with you to create a lasting change thank you pretty. Thank you very much. Karen, your now recognize for five minutes to give an oral presentation. Think you very much. Good afternoon. And all members of the community. Thank you for the opportunity to be part of this hearing today ever focusing on the critical issue of access to capital for women in low income individuals. Particularly during this unprecedented time for all businesses. The council is not a casey organization dedicated to Small Business<\/a> promoting entrepreneurship right in front of more than 25 years now, we worked on range of issues including access to capital to four start of activity is Small Business<\/a>es and in growth. As noted by my fellow witnesses close financial network, longstanding Financial Institution<\/a>al biases, and underserved markets, you need capital to start of operate and grow their businesses. By a bipartisan cares act, the money out the door quickly, and helped many Small Business<\/a>es in the Distribution Channel<\/a> of the first punch, of the funding underscored how the traditional Financial System<\/a> in these many Small Business<\/a>es left the beehive critically women and minority on businesses. The launch of the ppe, and local advocates to bring lenders into the programs recent qaeda businesses ppe also intended to reach grade including women and minority owned businesses. Bringing them into the ppe programs, certainly helped managing many Small Business<\/a>es that were falling to the cracks, and even account for the participation in the involvement and significant numbers of women and minority owned businesses havent left without the capital needed to other navigate covid19 crisis. Doesnt noted in my written testimony, this is widely related to the design of ppe which many selfemployment self proprietors is not structured for them. Has been as many 95 percent of the black entrepreneur serves as Sole Proprietor<\/a>s, and women owned businesses, fall into this category as well. So we know that congress is looking at additional fixes. And to address these and counsel is engaged in discussions. Obviously given the uncertainty of the impending and will continue to affect reopening an economy moving forward. The recent survey, 45 percent of respondents said they still need access to capital. Informative grants Large Companies<\/a> and local governments, setting up can use or meet Capital Needs<\/a> a Small Business<\/a>es and we hope this continues. Were pleased to say advanced a temporary and conditional role in easing some of the redtape and cost associated with the Small Business<\/a>es. It is learning of his temporary role which unfortunately, expires august 31st and we are asking that it be extended at least until the end of the year. It was truly designed to help Small Business<\/a>es and the fact that im getting from several of our online platforms, numbers that we work with you largely serve women and minority businesses. The relief is making a difference in terms of this method of financing making it more accessible to these farms. With respect to this in general, there is tremendous potential momentum behind this approach unto financing sent women and minority entrepreneurs. In rulemaking moving through the ftc which allows for testing the waters and lifting and it can be praise from 1 million to 5 million pretty use o and is passed by the house legislation. And by the chair woman flutters, sponsored by. They will simplify and improve the funding offering pretty it will make it more accessible. Also exploring the concept of the public and partner ship. Taken match the successful raises up to a certain dollar amount. Along with the investment tax credits. They do this in the uk. It has been very successful in that country. At the end of the day, there is an extraordinary amount of capital out there. And it is very committed to policy animations that unleash that capital and getting into the hands of women and minority owned businesses. Theres a lot of work to do. I look forward to our discussion today. Thank you very much. Thank you so much for your testimony. Now janel, you are recognized for five minutes to give an oral presentation. First of may say that i would also like to congratulate you on the 23rd anniversary of the leading this group. Thank you charlie and chair waters and members of the committee for the opportunity to share my story with you today. My name is janelle frost on the president of this group in ohio. And the only mercedesbenz and buick gmc dealership owned by an africanamerican woman in u. S. And elected to be the first class of the general Minority Development<\/a> academy in 1972. My father was referred to this class to purchase the dealership was not only went when he passed away, disability and business. My father became the first africanamerican automobile dealer in the state of indiana, ohio, and West Virginia<\/a> along with being the first africanamerican International Dealer<\/a> in the u. S. In 1974. 1979, my father purchased the buick and mercedesbenz dealership in centerville, ohio and begin the first met africanamerican dealer died in 97, my mothers has in command of the dealership after my dads untimely death. At 27 years old, i was thrust into running the daytoday operations as Vice President<\/a> of the dealer principal. Imagine walking into an automobile dealership meeting is the only sometimes female and or person of color in the room the date were from the manufacturer for the travel company the set of the meeting. I became president of the Bob Ross Auto Group<\/a> in 2010 as a result of my mothers passing. And 23 years this week that i Letter Organization<\/a> had to say that the diversification of that about bill dealer body is no better than when i started. According to the National Association<\/a> of minority i will deal dealers, at the end of 2019 of the work a total of 1243 ethnic minority automobile dealerships in the United States<\/a> out of 19000. The writing is as follows for an African American<\/a>s to 65, hispanics 585, 293, native american 110 pretty ethnic minority women represent 70 tip of the 1076 women out of automobile dealerships. And they are africanamerican. Four of them. Since the initial launch of the ppe and the programs, several Financial Institutions<\/a> explain to many Small Business<\/a>es they were excluded from getting access to these financial opportunities because of the know your customer role. Even if the business had a banking relationship without having a credit, lending history with them. In the ppe left over 60 percent of the minority auto dealer bodies without Bank Approval<\/a> and artwork told to seek another Financial Institution<\/a> to apply for funding. That was in the first run pretty historically access to capital has been the concern of met women and minority owned businesses to survive and during this pendant, has been no different. Even though the bob ross auto profess our strong relationship with our Financial Institutions<\/a>, i to face obstacles. After several days of waiting for proper information to submit our application, i too was instructed to go elsewhere. Fortunately, i was able to approach another Financial Institution<\/a> and in a matter of 48 hours, was given approval. I like many women in minority owned businesses financial relationship, to fall back on. Despite these preparations and adjustments of our business operations, during the pandemic, we are continuing to invest thousands of dollars to ensure the safety of our employee client and facilities. I still feel a heightened sense of uncertainty much like other women of not knowing if we will be able to survive in the short time. In the the ppe program has allowed Small Business<\/a>es to keep our doors open help reduce the amount of employee layoffs, and business closures. That think minority auto dealers are located in rural areas to provide a significant amount of resources and Financial Support<\/a> to local businesses, civic and Community Based<\/a> organizations. The main concern is once these funds were not, will be forced to lay off employees and once again, have to get me hired to participate in the ppe program. And as that minority to begin to pivot their operations during the pendant this to utilize multiple resources to help drive the sustainability and growth. And through allow businesses to develop relationships and corporations and businesses to value diversity and inclusion looking to partner with likeminded companies. Been awarded many contracts from the state of ohio, regarding their medical needs and continue to work with our regional partners and outdoor Business Success<\/a> winning bids and adding revenue to operations at the end of the day. Without access to capital, for women and minority owned businesses will continue to widen in that gap. Thank you. Again thank you to all the witnesses for your testimony. I recognize myself for five minutes for questions. Recently the Federal Reserve<\/a> bank of new york found that approximately 60 percent of minority and women owned businesses, are considered at risk for distress. We also read the many of them use their personal phones productivity us set hearing to examine the cost and impact of racial wealth disparity. To our team leaders, the africanAmerican Chamber<\/a> and Hispanic Chamber<\/a>, how does the racial wealth gap impact access to emergency funding for minority owned businesses during periods of financial challenges that we are going through now with the covid19. So that will be the two of you. And you believe the racial wealth gap impedes the success of minority and women owned businesses. So i will start with you. Thank you for the question right and thank you again for allowing me to give my testimony. As my question. Number one concern. Could you speak up. Yes. Thank you again for allowing me to just money. As we talk a dark members, number one concern is the access to capital. They said roughly 400 in savings are unexpected emergencies. Owners of many of them, are now Business Owners<\/a>. Placing the burden of having excess capital to get them through tough times. With very limited resources collectively. The second thing is access to capital, the cost of the capital was extremely expensive. The average africanamerican estate twice the rate of her white peers. That only about 33 percent of her businesses actually had a line of credit. Im going to have to interrupt you. I only have a few minutes left. So i will go to the next question. Thank you. My time is ticking down. Some is ross pretty. Can you repeat the question pretty. Do you believe the racial wealth gap impedes the success of minority women owned businesses. It comes back to education. And without the community to educate minority and women owned businesses, and has been a center of hundreds in terms of continuing to move forward. As we have the opportunity, we definitely shown who deserved to at the table afraid of having the room but without those opportunities, and for people not thinking that we should be, that continues to create the problems that we have. Thank you into all of the witnesses, i am very proud that all of you to the disparities and challenges. And was really pleased to hear yall mentioned the Small Business<\/a>es, the gangs and the 1090 nines. Etc. In early on i went through the house for and advocated for those that would like to believe that i had an impact on our second round of funding. The question is, what would you say to corporate american and to banks right now were in the space that we are in. Root people really putting more value, the majority of companies are coming to us with money, some of it is guilt dollars maybe, but would you say to them to help a more africanamerican and other minority businesses into the hopper. Ms. Karen. I would say to put your money where your mouth is. To really make a concerted effort to outrage into this community. And a look at the process. By which you are outreaching. In the application process or whatever that you may have for accessing capital, potential loans dollars. To simplify it as much as possible. So one size does not often all. You really have to make these entrepreneurs were the operative and provide an understanding, but they are not all of the same businesses. And will try you again carmen if youre a muted. In ten seconds, can you add something pretty. In our community, only so much of that ppe went to the community. And about 54000. Thank you. I like that. Put your money where your mouth is. Going to end with that. And we will have plenty of other questions coming from my colleagues. And at this time, i would like to now recognize the distinguished team member for five minutes of questions. Thank you madame chairwoman. In your words, entrepreneurs and startups, what regulatory barriers, briefly, have you experienced the made it difficult to Access Capital<\/a> and Financial Service<\/a>s pretty. The biggest barrier, is actually if youre talking about investment capital, is actually accessing and getting access to the investor. But when youre talking about a lot of them look at equity. In the crowdfunding. Nac it has great potential. In one is some of the red tape and a lot of in terms of the forms and filling out and what comes next. And another piece of that which i found very interesting and we will learn more about this is the temporary ruling relief that the ftc did pretty most of these businesses are looking for finances. And so the crowdfunding rules, that all businesses on the same pretty onesizefitsall. In the information that the intermediary. [inaudible]. Does that have to be as intense as that raisin can we look at the things that need to be a corporate investor in order to have the finances with the right operator to make it our Sole Proprietor<\/a> because we know that they can get bank owned. But right now obviously, the climate is so different than it was pretty covid19, and i dont know if youre talking about ppe loan or main streamlinin loan. [inaudible]. You mentioned crating a Public Private<\/a> partnership under freedom very interested in learning more about this investment model. And how it can survive increased access to capital growth. This will be two women and minority owned businesses pretty you go into further detail about this. He also mentioned there was a coat investment model. Do you have any specific data on the success of the programs. I am very interested. And i will follow up with more specific information and data. Which is beginning to talk to our members in the community about this. It has been very successful. Summa should make sense are increasing the funds. Most of startups, ecosystem rates online now. Because there are tax credits and you pay for crowdfunding. This whole notion of the Public Private<\/a> partnership is that the federal government will, if the Small Business<\/a>es have this amount that will come in and match that. But the work with the existing platforms of the government is not take picking winners and losers, there thinking of the crowdpleasing the investors believe, a business that can make it. And you know with crowdfunding in general, the windo Women Entrepreneurs<\/a> and drug producers, and that there are many more businesses that are using crowdfunding and going to the local communities in order to keep those businesses that community. And giving their customers the first shot at investing in the businesses. If you could go first. I am proud to introduce the bipartisan ppe forgiveness act the mcauley calculates. The mentioned in my opening statement, the directly to the Small Business<\/a> creator certified these loans with a calculator. It is free and accurate. They can more easily populate their loan forgiveness application. And also helping with the Small Business<\/a>es should be covered with payroll and etc. As they navigate through this application. I really think it will. I like what you just proposed. Yes because it would promote and the financial and while using the same calculator created i think having it as simple and make that that businesses know what that number is putting out there what is forgivable is acrosstheboard. I think very important. Were going to try to include this Going Forward<\/a>. So i think you. Thank you. The chair now recognizes distinguished chairwoman of the financial committee. Congresswoman Maxine Waters<\/a>. Maxine waters we are going to unmute here now. Thank you. Let me just say that as i am sitting here watching you and i am thinking that how important the diversity and inclusion is rated if it was not for diversity and inclusion, i would not be sitting here with you on this very important hearing. You would not be sitting here the chair of the subcommittee for diversity and inclusion. And will had not have been here added time when we have turned covid19 we cannot exercise the power in order to get resources. And to the agencies that should have good resources that they could make the loan. So im very appreciative for your work and this based on your work the way that you came to this congress educating and with your support and opening up opportunities. We have been confronted with covid19. And the ppe. And we learn an awful lot that we had not expected. For smaller want to thank those banks that participated and did the right way. If you want to tell you some of the biggest banks in america, literally open up portals when i saw miserly. And i spent millions of dollars, maybe billions of dollars of funding those concierge. And somehow, in the legislation for the cares act, have opened up the opportunities for the fda loans that were normally caught this businesses 500 and under can now be spread out to the rest of us. In many locations and franchises etc. And they were able to give millions of dollars. That was not intended. And so we know about thats pretty we have learned enough a lot about that. And we have to shut that down. So that will not continue. And the high in addition to that, we learned an awful lot about what was going on with the minority businesses. It is created by an executive order in 1969. The minority businesses and opposed to in the tax and the minority owned businesses in america. Is that the well of others because is not a law. And so i heard you when you talked about this, we will take care of that. We want every opportunity for our Small Business<\/a>es in our minority businesses of womenowned businesses to have access to capital or we will survive. I heard you when you talked about that was a very Successful Program<\/a> pretty minorities got involved with it. But guess what. They got shut down because you did too good. After you reach a certain level, we got to open up this all over again. I can read a lot about this. Some did not have access to capital. And learn that they were operating in such Different Levels<\/a> for example pretty at some and had no liquidity. And they would have a joint venture type of opportunities pretty had some with just a small amount of resources that were begging for more. It is under the treasury secretary who has the opportunity to go through that bond. And we are going to increase that and open up more opportunity to them and also without working for a long time with them and very important for you to know that the cause, we were able to the 60 billion so that 10 million of it went right to the mbi into the city if i into our Credit Unions<\/a> and community banks. Who would not have happened had it not been for minority women sitting there. That is why opening up opportunities, it is so important everywhere. In the private sector, the government sector. Everywhere. Unless with people who not only understand these issues that they see how well it not been able to been accumulated in our Community Spring<\/a> you will never get the opportunities to open up. So i believe that you are able to get right to this and write to mr. Powell. And that is also there so that we were able to change some of the ways that they were doing things. I will go into all of that now. But wait absolutely changed the ways that the main street facilities was operating. We absolutely was able to get the 60 million. Im so thankful for your work. Im something full for the scaring. And for the witnesses for telling us out beginning do better. I am looking forward to correcting some things in looking to open up another opportunity. Thank you very much jar chairwoman. In the chair recognizes the gentleman from West Virginia<\/a>s second district. Mr. Money. And trent mr. Mooney are you admitted. Yes im unmute in. I dont have any further comments. Thank you. Thank you. Now it is my distinct honor to introduce the subcommittee chairman, the Community Development<\/a> and insurance. You are recognized for five minutes. Thank you manager. For conducting this hearing. And let me think of witnesses for their participation today. This wealth gap has been a persistent challenge for this country. It is increased over the past 50 years and limits the ability of wouldbe women and minority entrepreneurs from starting new businesses. And according to a racial wealth gap analysis. Africanamerican and latino families have approximately wanted the wealth. And unfortunately, minorities to have access for the generational well and personal assets pretty in a new business formation as a result of that. My question is one of your members about the lack of wealth affects the startup of minorityowned businesses. Will in my community as you know, i think they have the most and whatever time they go to a bank. It is like, they dont have the same ability. Our advantages. When i started my business, it took me quite a while to get a loan. [silence]. Hello. Hello. Low. You may proceed. Can you hear me. Okay we have an institution and those Financial Institutions<\/a>, they are very, special program. Like jc morgan and wells fargo. And they do have a special program for us. Thank you. [inaudible]. Thank you for your question and again if you ask Small Business<\/a>es owners, what their issue is, he was a lack access to capital. And for a black person, is the first three things as well as affordability in the availability to be able to start and sustain their businesses and not just through pandemics adjuster normal business practices. It is extremely difficult for black communities to be able to access to capital and the reason its importance because we have 450,000 about blackowned businesses for last three months, they all have customers and clients and for those of existing blackowned businesses, you need to look at mergers, acquisitions, joint ventures and to be able to take advantage advantage to merge those indoor existing blackowned businesses. I know i have heard this conversation. We believe that the future of blackowned businesses could be traditional black and minority, during this pandemic they told us to go to your existing makes to ensure that you had a relationship and get the funds. If we dont establish banking relationships now, our businesses will be had twice as hard. So for us, were looking for capital and for the institutions and financial to ensure that they lower or move the barriers and make sure this affordable for business. Thank you so much. Adam want to say, ms. Ross mentioned that the ppe program, not having a loan activity. Good evening of the witnesses respond to that. Does anyone want to talk about the challenges. The payroll protection plan. Only 2. 5 million and no employees. The 11000 blackowned businesses that would even qualify for the additional funding they needed. So just from the name. [inaudible]. Is not included spring if i hadnt had working relationship with a lending officer, only 30 percent of our businesses had that. And 30th they made it available im having trouble hearing you. Can you hear me. Your time is up. I am sorry. Thank you. The chair has now recognizes that gentlemen, from the 18th district. For five minutes. On think the chairwoman for convening todays hearing in the Ranking Member<\/a> and certainly appreciate all of the witnesses coming forth to testify today. If i could, theres around 130 million left the paycheck protection program. And we know that it goes through august the eighth. We had testifying for a committee, the secretary, in his remarks said that he wanted to repurpose the remaining money to assist what he characterized was especially hardhit businesses. My question he was if you had 15 minutes with the secretary directly with either of those folks, what would you tell them about specific ways to use the left of our money to provide additional relief specifically to minority owned businesses or women owned businesses. I think it is the program that there are changes made in the began to on board and the Distribution Channel<\/a>s that couldve been better in terms of reaching more women and selfemployed businesses grade and all of those types of businesses. They have a commercial relationship with their banks. I was a desperate and acknowledging and recognizing that they do want to address hardest hit in this businesses that were not able to capitalize the programs on the first time around. They are on the right track. If we are repurchasing the money, there does need to be some of that money will be set aside for employees with ten employees or less. That we do need to look at, the ones who have been hardhit, and perhaps allow some of those businesses to come back or another ppe loan. They would also say that we need to broaden the usage of what can be forgiven. Than 75 25 role, that became 6040. Thats very restricted to many types of Small Business<\/a>es. And selfemployed people. So we need to change that. We need to include a lot more forgivable expenses. All of the things that businesses have to spend money on in order to survive covid19. And then finally, i would say that we really need to simplify the whole process. Theyre going to start the program, and from the getgo, 70 clear guidance. Cant continually change in that confused so many Small Business<\/a>es. So simple application process, reaching more, small owned businesses, brought usage. In effect at the last one. Verity said it in my remarks but really. When it comes out of the program, the guidance. Very important. Thank you. In her testimony of talked about that you and first applied for the ppe loan. How confusing did you find the guidance that was given to you for the process. While being a Small Business<\/a> owner and as things were evolving and changing daily and trying to make sure that the health of our employees were important to us. But the guidance as karen sent continue to change and ultimately the application is not as bad but now looking at the forgiveness application, probably eight times the length of what the original application was. With that, we have spent a lot of time. My Management Team<\/a> and ill try to make sure we are following the guidelines. In terms of getting the most forgiven. Those keep changing. So what we worked on a month ago, has change for today. And i received an initial email last week the said were still not in a position to really go forward with the application on the forgiveness and that we should have that in another month or so. So is taking a lot of time away from us having to navigate and change our organization. Having an automobile dealership during the pandemic with a number of touch points, and involved with vehicles, and getting people to understand that. And then that is increasingly difficult from a compliance perspective. I also would like to thank the chairman of the committee for their leadership and especially associate myself with a comment she made with reference to american System Development<\/a> and administration act. A little bit of history is appropriate. 1979 from a republican administration, nixon held the executive order, the Advisory Council<\/a> was created. And then under a Democratic Administration<\/a> it became the small Minority Business Agency<\/a> because it seems to me what the chairwoman has proposed im happy to help her work with her is something that should appear Cross Party Lines<\/a> both democrat and republican. The most that the agency will do as opposed to an extension if it is an independent agency it will provide bootstraps many Small Business<\/a>es were not able to take advantage of the pp aid because they were not prepared with the Technical Assistance<\/a> necessary to apply for loans they did not get online fast enough and those who have lawyers to help them and cpas they have been ready to go since day number one. As a matter of fact, truth be told, they were ready before they were waiting for the day to arrive and on day number one and then the application was in. But we would like to do with what is necessary to compete when opportunities are available its even better to take advantage. To become a standalone entity according to the fda and to be given a similar opportunity so today we ask that the panelist what it has morphed into. s is something you thank you can support with Whittaker Chambers<\/a> . Is this something you can support . Yes. These in their mission and then to receive additional funding and that has made an impact. As well as the Hispanic Chamber<\/a>s and others and then to turn around to make the businesses with the ample resources that they need. You hear people quite frequently frequently talk but is this the bootstraps that we need . It is also the Technical Assistance<\/a>. The resources of funding and Technical Assistance<\/a> but we make the boots themselves with an uphill battle. Let me say well said and i will move to the other chamber. We do kindly express your concern if you support this legislation . And that relationship with the agency we are happy to be working with them for the last two years. We are very happy and we do support the legislation. I yield back you have five minutes for questions. Thank you madam chair and everybody for your participation today. I want to start with you as the son of a Latino Business<\/a> entrepreneur, with the ppe you talk about the difficulty our community has accessing the loans. Is that still the case now that we have changed the program and extended it . And if so is it the structure of the program or something happening in the application process weeding out hispanic Business Owners<\/a> . Can you hear me . In the beginning we really didnt get that much that now it is better. And the businesses are very slow and then event you have the education to even and apply is complex and then to have that first year of those loans was in preparation to have the resources and to have this kind of assets. But our community that now its like 55000. That sounds consistent and the program is imperfect and also that it didnt just hit the minority communities may be in the way that we would want so Going Forward<\/a> to read to all or having a Different Program<\/a> makes the most sense frankly. Ms. Ross you have such an amazing personal story. Thank you for sharing. One of the things you highlighted is the difficulty in the automobile space so would like to ask you broadly speaking what can we do a better job on as a society to support women and minority entrepreneurs . It goes back to my statement. The access to capital historically is limited minorities specifically in the automobile business due to the heavy investment needed in order to be an automobile dealer. Within our industry there is a lot of generational families could pass down their dealerships and from an africanamerican perspective specifically we have not had that to be the only female africanamerican secondgeneration to speak to that volume there are few women that could be in that position i give kudos to those starting the organization to help the next generation to facilitate that but it does go back to access to capital and what is needed to become an automobile dealer manufactures take the responsibility to assist the programs they are offering because there are a lot of individuals who are capable who can perform of nonminority dealers if given the opportunit opportunity. Are there any statutory barriers that you see that limit this access to capital we could remove. We are big into the space of crowdfunding and there is tremendous opportunity for those communities and frankly to address the rulemaking in terms of accredited investors to make sure we dont tree that the same because most Small Business<\/a>es are looking at data and not equity. You want to support them and the families that can support them. We have a list of things. I yield back. The chair now recognizes from the fifth district. You have five minutes for questions. Thank you madam chair. Also thank you to the witnesses for appearing today. From the standpoint of being in the trenches but also ive been in this area for over 30 years one of the problems i found that you keep elaborating on to a certain extent is that its very difficult to keep that going. Not only a chamber of commerce but i say that because the chairwoman might want to respond. I found out those witnesses in the mainstream they are the front line from the ppe. So the people of that nature but i have a lot of difficulty so by the time they got ready the money was gone. So how do you respond to that . So i would say we lost 450,000 businesses i want to say that now we have 130 billion into a Business Owner<\/a> so if you look to the legislation the africanamericans were never listed. Is not like it wasnt necessarily for them. And to have a lending relationship. And then the application fatigue. To go back. And then with the Internal Revenue<\/a> agent and then facing extra scrutiny. And then on the last three months we are trying to educate our businesses there are funds still available. And that those they have relationships with. And then to try to inform them. It was fun coming out initially with our community but there are to ensure our businesses understand how and where to get those out. Thank you. This is an important topic and just what was being discussed. s in of the africanAmerican Chamber<\/a> of commerce who now runs the urban league and then earlier talking about Capital Formation<\/a> and then later talk about bootstraps to have access to Capital Formation<\/a> that you need knowledge for the American Chamber<\/a> of commerce to create those types of relationships can you share what you think are the best practices that we are getting information out not only broadly but the Africanamerican Community<\/a> as well . We make sure in the local communities and Business Owners<\/a>. And then facing challenges about what is happening here in the nations capital. And with the local business and from those local chambers that we have to be transparent. We are asking for data early on. But then 40 percent of the blackowned businesses. And then it turns out it was 41 percent. Now congress its about having a realistic conversation and so we say we need transparency as well as opportunity. And wants to do more for businesses but to make sure because right now we find on we all fall under the umbrella for black businesses for hispanic and asian. And then it and then that reference. Thank you for your passion on the topic and sharing your passion. And during the broader pandemic is to leverage the technology and then dont have access to bank loans. And with the online notaries and the other legislative reforms we could do and what you to comment and what you see as the role to leverage the Financial Technology<\/a> services. It is so critical. That the end of the first tranche. And thats a pretty big difference with these 21 lenders to have a significant amount of lending they have the customer list. In like we like to say to Business Owners<\/a> and entrepreneurs and then to use cloud services. And then to with that technology is even more important and the government does have to recognize that. I appreciate you holding back. You have five minutes for questions. Thank you to all the witnesses for joining us today. And the homestead act and the g. I. Bill when americans historically at of investment we must stop the exclusionary policies and then with the allocation of resources and i appreciate and the data that you need is you didnt receive the ppe funding and why was that late . 41 percent of black businesses have shuttered since the pandemic began. And then ppe funding and then access to banking. Yes. It was discussed on friday afternoon. By that monday morning and then with the publicly traded firms so many black firms did not find out about the opportunity until the 11th hour. Then to have a banking relationship in many businesses with the inability to get credi credit. So the majority. And the backbone of the local economy to go from nowhere to be found. But then applied in may and have yet to hear back. And then this is all about new action. And then to provide micro Business Owners<\/a> but not loans you have to be intentional. 75 percent of the micro Business Funding<\/a> so how does the sos that correct . And why is that so critical to give grants instead of loans . We heard from black americans and in response to be facing a pandemic. And not just about reparation. 40 percent of all Business Revenue<\/a> but the industries that were hit the hardest they are the same type of businesses that you have there. And the nice place you go to gather and then they need the income. It is not a one size fits all approach the same way we have codified and then justice and equity. And to endorse that legislation i yield back. And now to recognize you have five minutes for questions. Thank you chairwoman and waters as well you both have done an absolutely outstanding job its an issue weve been dealing with salami asked the first question to provide billion dollars in emergency appropriation that either 25 percent of the remaining ppe funds for community Financial Institutions<\/a> as some of you have outlined the limitations. And that the financial on this one institutions and one of the leading mbas had to cap their loan at 14 million. But then with that infusion of funding. And then to provide the assistance that was needed. And just this issue. And then to set aside funds of 2 million for minority Lending Institution<\/a>s. So please highlight a significant of the ppe and how does that impact minority and women owned businesses . First of all they were on boarded. And that it should not have been an afterthought. And then to make sure we have those channels possible. And if were going to do another round or another tranche or a package they should definitely be included because it made a huge difference. And then in 2010 to have funding for those programs and access to credit and temporary programs by the Treasury Department<\/a> expired 2017 and the municipalities. Unfortunately the expiration of the program with affordable Small Business<\/a>. And. And do it does your organization and support Small Business<\/a> . I will go first. So your bill specifically and then to have access to capital in states and local communities and the blackowned bank. Homeowners and for black communities. Pretty much with what he sai said. I will yield back. Now the gentleman from pennsylvania. You have five minutes. Can you hear me . Yes we can hear you. I want to thank the entire panel of witnesses specifically to inform is how we move forward not just during a pandemic allow me to be a part of your subcommittee and take my responsibility seriously. And minority owned businesses. And then have the chance to follow up. And the common themes that you fear. That returning capital is one returning team. And then access to capital as well. And in particular and ms. Ramsey to those in terms of applications and for capital support. Some asking a question can you speak it could be in anecdotal and what action we should take. And then i would open up who would begin to answer that. Congresswoman i think the minority women owned businesses we need to be included in the distribution i dont think it will be sold and Tell Congress<\/a> be engages and so with the Majority Council<\/a> that they are there with you to write that legislation and for the community. M. Ed. Assess one other issue that came up and with those institutions and to minority businesses and can you speak to that . And the access to minority owned businesses. If you ask black women it is possible to get credit and then it should also be affordable. And then the same criteria. And how the barriers remove. And to have the funding. And then to initiate that should be direct liquidity to businesses and to use that money where it is needed and for the cosponsorship from this committee and access to other credit institutions. Thank you so much. The chair now recognizes the gentleman from texas the 39th district. Thank you madam chair. And to know that so many Small Business<\/a>es and then for my good friend from houston. And then those independence as a step in the right direction and its important and i want to start with mr. Bugs me that would be very creative for the dilemma why does it matter and then to be provided in studies. Over two. 6 million unemployed with the africanamerican owned business purpose. Those that have access to capital and to opportunity and then the unassuming conversations in america as we have thousands with the local and state. In terms of Technical Services<\/a> because and obviously the Community Grows<\/a> they dont have continuing education but those that are doing continuing education and Online Training<\/a> and with those opportunity for those businesses. Thats not until they already established themselves. I agree with what he said. Is just like mom and pop and that in the community. And then how to use the computer. That is for the community. And for entrepreneurship in general. Not only for existing businesses and to have that modern support. And with a pandemic. And then across the board without access to capital thats the number one thing that they need. They dont know where to go to so yes it is vital. Thank you very much the gentleman from the third Congressional District<\/a> you have five minutes. Thank you madam chair. Its fair to say the pandemic that is as you already noted and then the new businesses and once the pandemic passes. And then the hurdle is terribly high so starting with our guests, asking about inspiratio inspiration, first how do we aspire . And with entrepreneurship and your own Small Business<\/a>es how to be capitalized that . And i say that technology and the reason why and that technology with those individuals. And the market is so tough in the pandemic and has accelerated. And that young people and to start their businesses. So for the members for future generations . And for colleges and universities. And then to make young people and then to have that exposure. So with the opportunity we want those young people in very similar and then to have a better chance to do two things. That many successful businesses to be in business ten or 20 or 30 years and then to pass the young people not to start a new business but to start an existing business that are just coming out of college and allow them to have the ability to get into a business. And i knew business preservation act what the one. 5 million allocation to the Treasury Department<\/a>. And then with the minority owned startups. And with that capital to startups. And do you feel this is why it is necessary for a new startup environment . Any fund or any way to get financing when you start the business absolutely. And to believe in a Publicprivate Partnership<\/a> but with the hundred Million Dollars<\/a> and with the blackowned bank and lastly it invested in us to get the Technical Assistance<\/a> and access to capital. And so i yield back. The chairwoman now recognizes the gentleman from illinois. Thank you madam chair for allowing me to participate in this hearing and the Ranking Member<\/a> for convening as well. And the working class immigrant district in chicago in the 40 pandemics. To make those retail quarters that when the pandemic passes not sure it will still be there. And to shut down temporarily in march so first of all and people in my community are worried they can pay the rent and to pay the medical bills if congress that people can be in their homes then they can save these small and minority owned businesses that already need access to credit. Theres not many sba lenders to operate in my community it was easy to make loans under the program. And then to get credit in the early days of ppe and this is the reason why. And the Lending Institution<\/a> and then implementation. So yes. This week they released data and with that relief and that they need to do a better job to collect data. And then to encourage better Data Collection<\/a> by the sbas we can understand who benefits from these programs. The data is critical. It starts at the beginning to collect that data in the application process it is voluntary that we need to have that data and then to help congress to what they need to do to target the Program Better<\/a> and then for transparency when it comes to taxpayer dollars and then to get in a much more informed way. Any suggestions what congress can do . The more that you ask for the more you will get in the Demographic Data<\/a> there are things that are voluntary. So it has to be an act of congress to be part of legislation. And then you just dont have the data that you need at this point. I yield back. The chair now recognizes the woman from the 46 district from california you have five minutes for questions. The only single mom in congress with young kids working from home is much as i can its hard to do the impossible. The pandemic is making it so much worse the covid19 what were the margins for normal Small Business<\/a> what were those profit markets on Profit Margins<\/a> like . And on the daytoday and so the price of flour doubles . Thats right. But what if that would triple . It would wipe them out. And then in that bakery. And what about the cost of childcare . What does that do to the business it would probably kill the business it would be impossible to do that. So thats whats happening by the way and then the Owner Operator<\/a> and and then its dropping to put businesses into the red. And with the Small Business<\/a> community. Absolutely. At the Business Roundtable<\/a> that was my biggest pressure the enormous pressure put on the Women Entrepreneurs<\/a> so absolutely. That it falls hard on those businesses that are all women owned and the cost to that business so do they have easy access to capital . But about the cost of childcare . But then with the loan those that have done so and then they had a commercial relationship which is very few and then specifically and directly but childcare . Know. Can you use the funds for your employees . It is not a forgivable expense. And then to be fulltime parents. And with that recovery cannot happen in that environment . Its very difficult. Not everything can be done out of the home. Working in business with the responsibility it would be extremely difficult absolutely. Thats not normal with that scenario. What about support for child care and how we think about economic recovery. In terms of forgivable loans we need to have some very Creative Solutions<\/a> and then work with you to see what we can do to make that happen. I yield back. I think all the members for their questions and with the testimony. And then to have five legislative days with additional rich and questions to be forwarded to the witnesses for their response i asked the witnesses to please respond as promptly as you are able. And those written materials and questions for the record to the email address provided by your staff and then with the national Bankers Association<\/a> thank you for inclusion into the record. The hearing is adjourned. Cspan has unfiltered coverage of congress, the white house, the Supreme Court<\/a> in Public Policy<\/a> events. You can watch all of the cspans Public Affairs<\/a> programming on television, online or listen on our free radio app be a part of the National Conversation<\/a> through cspans daily washington journal programs or through our social media feed. Cspan, created by americas Cable Television<\/a> companies as a Public Service<\/a> and brought to today by your television provider. Host joining us on the communicators this week is one of the key members of congress when it comes to telecommute occasions policy","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia801902.us.archive.org\/26\/items\/CSPAN2_20200713_215600_Hearing_on_Coronavirus_Pandemic__Access_to_Financial_Services_for...\/CSPAN2_20200713_215600_Hearing_on_Coronavirus_Pandemic__Access_to_Financial_Services_for....thumbs\/CSPAN2_20200713_215600_Hearing_on_Coronavirus_Pandemic__Access_to_Financial_Services_for..._000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240716T12:35:10+00:00"}