Transcripts For CSPAN SBA Administrator Linda McMahon Testifies At Confirmation Hearing 20170128

[ room noise ] the committee will come to order. Today, this is the time and place for the hearing to offer some alterations and advice and consent process as required by the constitution for mrs. Linda mcmahon to head the sba. Linda, thank you so much for being here. And we have senators blumenthal and murphy to introduce mrs. Mcmahon. And both of these gentlemen have run against mrs. Mcmahon and vice versa. So i hope they i hope they didnt bring their files on weve been trying to forget, mr. Chairman. In any event, senator blumenthal, the floor is yours. And thank you so much for gracing us with your presence. Thanks, mr. Chairman. Thanks to you and Ranking Member senator shaheen. I am pleased to join my colleague in introducing our fellow resident of connecticut Linda Mcmahon. We know her as a fellow citizen of connecticut, but also as a successful business leader, as the cofounder and former ceo of the wwe. And also as a contributor very generously to many significant philanthropic and charitable causes and educational institutions in connecticut including, for example, Sacred Heart University where we live. In my view, mr. Chairman, i recommend her because i think she would have an excellent fit for this agency based on her experience and expertise as a business leader. She knows, as i do, that Small Businesses are the backbone of our economy, they are the most vibrant and vital job creators. They not only innovate by fostering new jobs, but they also invent new products, they are the startups in every sense and they embody the American Dream having visited many of them in connecticut. I know how they create jobs and products and opportunities for others. And sba plays an integral role as this committee well knows, in supporting Small Businesses financially but also encouraging them with expertise and experience. And Linda Mcmahon has that kind of expertise and experience. She is a tireless leader and a tenacious fighter. Her professional life has been about building businesses. She as struggled and survived in the Small Business trenches a, hiring and firing, working hard for a vision. We have shared our differences, but i have never questioned her unwavering drive and focus. She has used her business to help veterans and women realize their own dreams and opportunities. I am hopeful that under her leadership the Small Business administration will continue its focus on veterans and women. She has played an integral role in spearheading opportunities and dreams for women. And that has been the focus of her life, professional life, most recently. So i am pleased to be here to introduce her and recommend her to the committee. She understands the needs of states like connecticut who are still working hard to recover from the economic recession. Who need new jobs, and i hope that she will continue to have connecticut at the top of her mind as she assumes this new role, and i look forward to working with her, and i know the other members of the committee will as well. Thank you very much. Thank you, senator blumenthal. I was hoping she would have idaho at the top of her mind. Ill let her say that. I dont think she will. Senator murphy, thank you for coming. Were all busy these days and its tough to push certain things aside. But thank you so much. The floor is yours. Thank you, chairman rich. Ranking member shaheen, members of the committee. It is my pleasure to recommend Linda Mcmahon as the next leader of the Small Business administration. As you said, mr. Chairman, this visual is going to be a little amusing and surprising to folks in connecticut who watched the three of us duke it out over two long senate campaigns. But you know what, politics cant work if political grudges never die. And political adversaries have to find a way to Work Together after the fight is over. And im here today to support linda not because weve magically become of one mind on how we approach every problem that this country faces but because i have confidence that she is going to give good sound counsel to President Trump when it comes to policy speaking Small Businesses and i believe that she has the passion for this job thats vital. At it core the mission of the sba is simple, to help americans start and grow businesses. And virtually every owner and start of a Small Business wants to one day be the owner of a big business. And before you today sits a very talented and experienced business person who did just that. Over the past several decades linda has shepherded her Small Business from a small one desk operation toon rirnly Profitable Enterprises with hundreds of employees around the world. She also understands the unique challenges as senator blumenthal said. She cofounded the womens leadership live organization. It helps equip women to become successful business leaders. Her work there assures me shes going to build on the significant momentum of her predecessor in the Obama Administration. The federal government has just recently surpassed its fiveyear excuse me, its 5 contracting goal for womenowned Small Businesses. For the first time in history. And i have confident that Linda Mcmahon is going to further empower women to create and foster thriving businesses with the help of Partner Organizations like the womens Business Development council which has had success had connecticut mentoring womenowned Small Businesses. As i saw firsthand, the fight that linda brings to any endeavor that she takes on. And im sure well have disagreements but i will never question whether she has the experience and determination necessary to lead this great energy. And i would really urge the members of this committee to support her nomination. Im very pleased to join with senator blumenthal to introduce her to you today. Senator murphy, thank you so much. Senator blumenthal and senator murphy, we will advise the Guinness World book of records about this event and get it duly noted. Youre certainly welcome it stay but knowing were all drinking out of a firehose these days you certainly can be excused. And im sure youll see this when you need to see it. Thank you so much. Thanks for coming. Thank you, mr. Chairman. Thank you for this opportunity. Thank you. Linda, you know where were headed here. For everyone else im going to make a very brief opening statement. Ill yield to senator shaheen to do likewise. At that point well administer the oath which is required. And by Committee Rules i will do that. And then the floor will be yours to make an opening statement. Then as you can see, you have a list of people with deep probing questions who will take turns from each side. Thank you for coming to meet with me and spending the time that you did and thank you for being willing to take on this important appointment. The Small Business administration is not a Large Federal Agency as federal agencies go, but to a business person, a Small Business person it can be one of the most important and critical endeavors that the government undertakes. You and i had the opportunity to talk bay couple of endeavors the sba does. The sba is known for its loaning to Small Businesses and you will find i think when you drill down that there is a very robust fleet of lenders out there who service the Small Business community through the Small Business administration. And i think youll be well satisfied with how they operate, what they do, and the work they do for Small Business. Of more importance to me, actually, because that part of the operation is doing so well, is the efforts that the sba undertakes to try to level the Playing Field for Small Businesses. When we talk befr business these days b it used to be when i started in politics the most hated organization of any government was the irs. The irs has fallen way back in the other agencies that do the regulatory things that the government does have really risen to the top. In my state and in our dealings the epa is way up there. And after that theres others that come in behind. But if you ask any businessman today, be it a Small Business map or a big business man but particularly Small Business, whats the biggest challenge you face today. And they will invariably not say its access to capital or taxes are too high or whatever. They will tell you the regulatory structure of America Today is strangling businesses. And youll find that everybody at this table can tell stories about Government Agencies coming into Small Businesses and causing them a great deal of difficulty. We have an operation within the sba called the operation of advoerks. Theyre supposed to be independent. They havent been. Theyre supposed to stand up and complain loudly every time the federal government does something 245 affects Small Businesses. There is a process in place for them to actually formally do this. It has not worked very well. Im hoping as we go forward well be able to make it work better. The poster child for that was rules regarding waters in the united states. And the Office Advocacy complained and said this is a big problem, especially for Small Businesses, especially for Small Businesses in agriculture and others too. And the agency said oh, no, we are making a finding that this will not have a Significant Impact on businesses. Youve got to be braindead to reach that kind of a conclusion. In any event, i know that you are, and you share my concern with that. And i hope that we will be able to Work Together to do i trai to do more for Small Businesses. We all know when the government puts out a regulation if youre General Electric corporation it comes in. They hand it to an army of lawyers and Compliance Office and what have you. And theyll take care of it 37 if this comes to a guy whos fixing law lauvergne lawn moe yoerz h mowers in his garage it becomes a big problem and cuts into his work. Well look forward to that and i look forward to hearing your thoughts on nap and with that id like to yield to my distinguished colleague senator shaheen. Thank you very much, mr. Chairman. Thank you for holding todays hearing. And congratulations on taking over the gavel as chairman of this committee. Weve had the opportunity to Work Together in the past very well, and i look forward to working with you over this coming session to address the needs of Small Businesses. I also want to recognize the new members of the committee, senator duckworth on the democratic side, and on the republican side senators inhofe, young, and rounds. Welcome to this community. I think you will find that this is a committee that works in a very strong bipartisan way to address the concerns of Small Businesses. I look forward to continuing to do that. Im also very pleased to welcome Linda Mcmahon who is President Trumps nominee to head the Small Business administration. I appreciated the opportunity to meet with you and to hear your passion for the work that Small Businesses do. Now, i goat on this committee in 2008 after i got elected to the senate because Small Business is such a concern for New Hampshire. 96 of our employers in New Hampshire are considered Small Businesses. And theyre not just important to New Hampshire and to so many of the states represented on this committee, but theyre the engine of the economy that drives this nation. Two out of every three jobs that are created are created from Small Businesses. Theyre also leaders when it comes to innovation. They produce and this is a statistic thats one of my favorites. They produce 14 times more patents than large businesses. Im not sure that most people appreciate the innovation that occurs in our Small Businesses. But unfortunately unlike big business our Small Businesses have not yet fully recovered from the great recession. For example, according to a Harvard Business school analysts Small Business loans have dropped by 20 since the financial crisis while lending to large firms has ip creased by 4 . Thats sba and its programs are so critical. Last year alone the sba locked more than 70,000 loans to Small Businesses supporting 29 billion in lending and near ll y 700,000 jobs. The sba also helped Small Businesses win contracts and provide counseling to more than a million frurz. But of course theres more work to be done and thats why youre mere. Mrs. Mcmahon. I know you share those goals and values for what we need to support in Small Business in this economy, and i look forward to hearing your Statement Today and your response to questions. Ill warn you that senator shaheen referred to the new members of this committee. They may be new members of this committee but these people have been around a while. So dont think youre going to get softball questions with them. With that i would ask you to stand and be sworn if you would raise your right hand, please. You solemnly swear to tell the truth, the whole truth, and nothing but the truth, so help you god . I do. Thank you very much. Now i understand you might have some introductions of your own. Yes, i certainly do. Im very proud to ipt deuce this morning my daughter stephanie and her husband paul rlavec. Yes, please stand up. Plm. Welcome. And i have wonderful friends who have traveled from around the country to be here today. So im very appreciative of their presence as well. Thank you. Thank you very much. Well, at this time the floor is yours for an opening statement. Thank you very much. Thank you chairman rich, Ranking Member shaheen and distinguished members of the committee. Im honored to have your consideration to serve as the head of u. S. Small business administration. Id like to thank senators blumenthal and murphy for their kind introductions. And it was nice to be on a really even Playing Field today. Id also like to express my gratitude to President Trump for this opportunity to join his administration and his confidence in me. As an entrepreneur myself, i have shared the experiences of our nations Small Business owners. We are more than our products and services. We are people. We are families. The Small Businesses that are the engine of our National Economy are driven in part by people working to put food on the table, pay for kids braces and swimming lessons, save for college and prepare for their own retirement. Whether its an organic farmer or an app developer with one employee or 100, we can never forget that Small Businesses are people with goals and values that cannot be calculated just on a profit and loss zamt. If i have the honor of being confirmed as the head of the sba, i will do my best to advocate on their behalf. My husband and i built our business from scratch. We started out sharing a desk. Over decades of hard work and strategic growth we built it into a publicly traded Global Enterprise with more than 8 mun employees. I am proud of our success. I know every bit of the hard work that it took to great success. I remember the early days when every no i had to decide whether i should continue to lease a type writer or whether i could buy it. Yes, that 12 a month at that time made a difference in our budget. Like all Small Business owners i know what its like on an idea, manage cash flow, navigate regulations and tax laws and create jobs. Since stepping down as ceo of wwe in 2009 i have worked to help more people have the opportunity to pursue those goals. In my travels throughout connecticut in two 2010, 2012 when i was campaigning i melt with 500 Small Business owners. Touring their shots, restaurants, offices, victories, and sharing ideas during round table discussions. Job growth was a pillar of my campaign and because Small Businesses are responsible for half of all private sector jobs and the majority of new jobs they were my focus. And for the past two years ive promoted women in entrepreneurship as cofounder and ceo of a startup called womens leadership live. I wanted to share my vast experience with others who are launching 125r9ups or looking to scale their businesses. Through live events and web nars we educate entrepreneurs will things like applying for a loan and building a business plan. I often say entrepreneurs even with the best ideas sometimes need a little wind beneath their wings. Womens leadership hopes that by sharing our story of success success and failure and our strategies for adretsing challenges we can give Small Business owners the confidence that will help propel them forward. Small Business Owners done just need confidence in themselves. In order to take a risk they need confidence in the economy. Should i have the honor of being confirmed to lead the sba i will work to foster a Small Businesses want to take a risk without fearing onerous regulations or unexpected taxes, fees and fines that will make such growth unaffordable. We want to renew optimism in our economy. Small businesses have had some tough blows in the past decade. I know what its like to i take a hit and ive learned its not how you fall but how you get up that truly matters. Early in my career when we were very young my husband and i declared bankruptcy. We invest in a company we didnt understand and trusted people we shouldnt have. When that company went under we were left holding the bag. We worked really hafrd to pay off those debts until we realized we just kngtd. Bankruptcy was a very hard decision and a very tough time in our lives. We lost our home. My car was repossessed in our driveway. We had a young son and a baby on the way. We had no choice but to work hard and Start Building again so we could support our family. When our daughter baby was born, a Perfect Little baby so fall of promise and potential i took it as an omen that things were going to be okay. We owed it to her and to our son that we would make it okay. And fortunately we did. As i visited Small Businesses throughout country through womens leadership live i have seen that same resiliency over and over again. Entrepreneurs are fighters and they work hard and when they are knocked down by the recession or the Natural Disaster or the simply change in the consumer demand, they turn to their creativity to make it better. But sometimes they need a helping hand. If i am confirmed i will make sure that the sba hand is efficient as possible. I believe in leadership by example. As the ceo, i never expected the employees to do anything i was not willing to do myself. I believe in setting expectations, and holding the people accountable, but trusting them to do the job for which they were hired. If i confirmed, i look forward to working with the sba staff. I am eager to learn from their experience and their expertise. I will listention. And their ideas, concerns, and recommendations will be taken seriously. I know that there is going to be new challenges in the government setting, but i will commit myself with the same responsibility to deliver value the taxpayers of america as i did to shareholders of my company. Over the past few weeks i have met with many members of the committee and appreciate the kind words of encouragement i have received. Thank you very much for the opportunity to speak to you today and ill be re happy to answer your questions. Thank you, and we appreciate that. The way that we will do this is were going to use what they call the the early bird method, or first come first serve method. People were going to go back and forth between republicans and democrats. Im going to go first but i want to reduce my time into thear jekt as we see appropriate down the pike. I will yield the floor to senator shaheen. Thank you, mr. Chairman. Thank you for your statement, mrs. Mcmahon. I know we discussed this issue when you came to visit me but i think its important to give you ab opportunity to address it in the committee. Because you have been quoted as saying that you supported merging the sba into the department of commerce, and that proposal has been a major concern for businesses in my home state who believe that their voice in washington is already not loud enough. So i would like to know if you can clarify your statement if sba should be stand alone or merge into another agency. Or whether you think it should be merged into another agency. Shaheen, for the question and the opportunity to clarify. When i was running for senate in connecticut i was a strong adroekt advocate for reducing duplicative programs. And every year, there is a list out. And during that time, president obama had indicated he was looking to merging one of the agencies. And when he asked if i was to support sba and the commerce, i was not focused on the particular ones, but i was focused on the duplicative programs and costs, and so i wanted to be a Firm Believer that sba is a stand alone agency im very proud that President Trump has kept it as a scabnet post. And i intend to serve my serve my full term and advocate as best as i can for Small Businesses. Well, thank you very much for clarifying that. In New Hampshire, sba has made significant progress over the past four years and weve seen growth in lending and government contracting, and to some extent, this has been because of the work of so many of sbas Resource Partners. The Small Business development centers. S. C. O. R. E. And Veterans Outreach centers and the district offices, and i think that these partners are critical to the mission of sba and how to help Small Businesses. So as administrator, how would you identify opportunities to maximize sbas Resource Partners and provide Adequate Funding for their staffing and programs . Well, first of all, i look forward to going to the district districts and the regions to meet with the sba members and the leaders and managers in the offices to hear about what programs are working and what programs are not. S i dont have a working knowledge today of how successful those programs have been except to note that from you, you have seen that success and many other members ive talked to. With all of the different so that veteran aspect of helping them create jobs. As ive already stated, ive been very forthcoming and wanting Women Entrepreneurship to grow and continue to support that. Its very near and dear with my heart. I will continue all of that outreach with all of our different organizations. And continue to mentor through the Womens Centers as well. Thank you. Im pleased to hear that and i know that the Resource Partners in New Hampshire and across the country will be pleased to hear that as well. As we discussed in the meetings, part of the success of the sba is contracting, and senator murphy said that for the first time last year that sba or women, Small Business owners had reached 5 in terms of access to federal contracts he. So its a milestone but a very slow start to what we need to do more of. And so i wonder if you could plan how you plan to work with federal agencies to increase Small Business opportunities for federal contracts. I would like to understand what those projects are and how we can best fit the businesses to those contracts. I think in terms of the prime contracts and the subcontracts we need to make sure that weve got that advocaequate representn for that growth. I would wouldnt to make sure our businesses have the outright, the bleest actors. Id want to make sure we have the right advocates. My tommy is up pu i just want to make a moint mr. Chairman of announcing im going to enter a question into the record on behalf of congresswoman Nadia Velasquez who is Ranking Member of the house and it refers to the wron going situation in puerto rico. Its something again we discussed when we net. Mrs. Mcmahon. I will be submitting that for the record. Thank you very much. Senator paul. Congratulations and welcome. Thank you. I think the chairman put it very well when he said Small Businesses are worried about regulation. You are imagining 1,000 banks or one bank the compliance cost is larger if you have one bank than if you can spread it through 1,000 banks and 10,000 employees, and this goes on across america, and in addition, we have big businesses that come to washington, and are in favor of the regulation, because they see it as an impediment to smaller competition, so i think that Small Business does need a voice, and i guess what i would like to the ask is if in your opinion you think were overregulated, underregulated. Do you think regulations are a problem . Do you have any idea how the Small Businesses will be run to help with the regulatory burden. Thank you for your question. When i heart constantly when i was campaigning through the state of nevada was the overregulation environment, which is costing time, effort and money that they couldnt focus on their business. I think we forget sometimes that in Small Businesses, especially mom and Company Companies that are starting up, and i have a special place in my heart for them. Theyre the chief cook and bottle washer. Theyre the ceo, the cfo, the janitor and every other thing. So when they get a basket they have to fit out to comply with regulations, a they donate know what to do with it, three theyre going to hire lawyers to so either they become more at all the and not in compliance or theyve taken time away from their business to do it. It is really difficult for Small Businesses to have to suffer under i think that kind of burden of the agricultural environment. Taxes. Id probably say its about equal. A lot of Small Businesses pats through their income as individual income. A moderately successful Small Business might be paying 39. 6 income tax but then xweds nuf got an obamacare tax. Youre like 33, 34 before you god for the live in the northeast and have a 12 state income tax on top of that. I think there is a great burden. You wont get to address tax policy director unless there are ways that you can as the Small Business administration. Id like to hear your thoughts on in general the same question, are we overtaxed, undertaxed, is our tax structure currently the impediment to the formation of Small Business . Thank you. And having first started out as a sub s corp. And then an llc, i fully understand how the passive aspect of that income works. I do think if we are involved in tax reform we do need to consider how to make it a level Playing Field for those passthrough companies. We need to be a strong advocate of that. Thank you for luck. Thank you senator cardin. Miss mcmahon, thank you very much for being able to serve in this public position and we also thank you your flam if you think youve traveled before, this is a big company. But we thank you for your willingness to serve. Youve already heard the numbers. I could go over half a million Small Businesses in maryland, over a million jobs but i focus on the individual companies i have visited so i see a smault busine Small Business is developing a way to diagnose student athletes with head ings or i see new drugs being developed along the 270 corridor that are going to help quality of life or i see a Small Business developing a better way to help samuel business military cost. I see in National Defense some of of these companies are figuring out way to test our Weapons Systems for efficiency. All of thats the creativity of Small Business. They all one thing have one thing in common. The services of the Small Business administration. They used it for pentoring because its time its difficult to know what a bank needs noshed to get a loan. They services the sba for dang capital because thats very challenging for Small Businesses to get particularly Venture Capital to be able to take those risks. They used the Small Business administration as an advocate to make sure they got fair government procurement. Particularly in this region government procurements a very important part of doesnt for Small Business. You and i talked in the office and i thank you very much for our personal visit. We needed an oods voekt. As the Small Business administration. Dealing with 5 for the women, also a small amount set aside for small blusinesses, mrt busine minority businesses. When a big agency is doing its procurement they have to evaluate every contract thats there. And they tend to bundle into large contracts that make it virtually impossible for Small Businesses to be a prime contractor. We attempted to pass antibundling legislation so that is not done. Can you share with me how you intend to advocate on behalf Small Businesses particularly from other Government Agencies to make sure procurement is fair to help Small Businesses grow . Thank you very much for mentioning that again because we did have a good conversation about that. I found that the best way to obfuscate what youre trying to do is to bundle things or stack stuff on top of it. Id really like to peel back some of that bundling and take a look at it so that we have the opportunity for our Small Businesses do really have that fair shot. They shouldnt just continue to get squeezed out. And i would want to be their advocate. Id want to hear from them. Id want to find out how did this happen, how can we get around this, whom do we need to speak to, how can i advocate more strongly on your behalf, what avenues have you gone down, what avenues do you need to go down so we can reach in and make this more about you . And i would be working very hard to advocate for our Small Businesses. I appreciate that. I also preech your response to what youve done for veterans, returning warriors. To me thats an extremely important part of our commitment to help veterans, returning to help veterans, returning warriors. Captions Copyright National cable satellite corp. 2008 captioning performed by vitac i want to say how much i appreciate you taking the time that you did read if you spent as much time with everyone as he did with me, you have been pretty busy. I particularly enjoyed our visit, because i have been there. You are a lot bigger than i was. I think the office you have has had so much more opportunity to do what we have done before. We have tom buchanan, head of the bureau. When i talk to about the problems farmers are having throughout america, he said it is nothing that is in the agricultural bill. It is the overregulation of the epa. He said of all the problems that involved regulations, what scared us the most was the water bill. There are a lot of people, a lot of liberals that take jurisdiction away from the states and give it to the federal government. Example,hat up as an as you and i have discussed that you are going to be responsible about the office for advocacy. Advocacy is an independent office. Its purpose is to advocate on behalf of Small Businesses to other agencies that way in on their rulemaking. During the last administration the office has been ignored. You are to have to start from the zero base. You are going to have to give a lot of thought to this office and advocacy. They are available for people who it was designed for originally. I would always like to strengthen that office. We need someone who is going to go to bat for our Small Businesses. I am just the girl to do that. It wasnt done before . Why do you think it wasnt done in the last administration . Small businesses in my state of oklahoma. I didnt hear from all of them but almost all of them on the problem. How will you revive that . Linda i think i have to first find out why it did not work. I heard that comment from more than one that the office of advocacy really needs to be strengthened and have teeth when it goes to the other agencies to say, you know, youre not comply complying and why arent you complying. As of right now, those teeth arent there. I need to find out why. I dont know why. I want to know why and will get back to you on that. Thats good. I would assume the number of people working, there are a lot of people that have not been as responsible and responsive to Small Businesses and youll have a chance to determine who they are and if necessary make changes. I would assume that would be an accurate statement. Linda thank you very much. They have within there the Small Business Innovation Research program that provides funding for the Small Business to commercialize new innovative technologies. Companies receiving receive a better chance of bringing ideas to market than those not receiving the funding. In many recent years rural states including oklahoma have under underperformed in this funding. Can you tell me what the sba changes they can make to and improve this . Linda again, thank you. Its a little bit difficult to say exactly what youre going to do when you really dont understand what has been done today. I do understand sbir has been so helpful with the research and Development Aspect in provideing that kind of research for startups. I would like to understand what those startups need and continue with sbir. Have you been able to get the benefits of sbir in your company or know people personally who have . Linda i do not. Ok. Look forward to working with you. Thank you. Thank you, senator. Senator heitkamp. Thank you mr. Chairman and thank you for attending the subCommittee Last week on regulatory affairs. It was all about Small Business and the advocacy role sba should be playing we were disappointed may not have been aggressive as they should have been in the last several years. I look forward to continuing to work with senator inhofe on a legislative solution on a lot of our problems. I noticed when i left that subcommittee no ones hair was on fire. Mr. Chairman, it was a great discussion. We welcome you at any point, linda, to our subcommitteesubcommittee. Its a great place for gathering of talking about Cross Section of Small Business and Regulatory Reform. I wish just for a minute youd been able to turn around when you were speaking about the challenges you had and have seen the pride and affection in your daughters face. It was quite lovely. Its clear you have a great relationship. As my mothers heart just got a little warmed by that affection. I think its what so many Small Businesses are about. Theyre about families and theyre about working together and learning how to overcome struggles. But i want to talk about two groups of entrepreneurs that i think are looking for a different level of engagement and involvement. We talked a lot about programs. The first is young entrepreneurs and the second are native entrepreneur entrepreneurs. Entrepreneurs. Thank you so much for coming to my office. We had a great discussion. Im concerned that young entrepreneurs frequently may be able to write the best app or write the best program. They somehow dont know how to translate that into business. I personally believe we are experienceing a complete failure in Financial Literacy in america that is finding its way into the business community. Im interested in your thoughts and im just going to throw in the native piece and you can have the rest of my time. Native americans have experienced a lot of economic challenges, really, from the initial engagement in this country. The challenges that sba has in Indian Country are exacerbated by the challenges we have with jurisdiction and the challenges we have with making sure there is a commercial code people can rely on. So i think im interested in how you can work with both these groups of entrepreneurs to engage a future for Small Business in america, especially in Indian Country but among entrepreneurs. Linda obviously, i have more experience with young entrepreneurs than i do in Indian Country. I would look forward to working with you and understanding more of the situations that alreadyre in your state relative to how Small Business administration can be beneficial to our indian Small Business developers. I look forward to that, so thank you. Young entrepreneur, ive found, are great with ideas. Some of them have a great business savvy. Some have no clue what to do. Theyre in their garage or dorm room wherever they are and developed this unbelievable app and have all kinds of stuff, boy, somebody will buy me and i will be a millionaire. It doesnt always work that way. I think theres a discipline that needs be shown more to our young entrepreneurs. I sit on the board of trustees of Sacred Heart University in connecticut. One thing we do is implement Small Business development there. As we try to steps of business but they are creating business, they have developed business, understanding inat the we need to continue that not just in our universities but i have kids in high school that dont know how to balance a checkbook. Really, we need to have that fundamental understanding of basics of economics as we move forward to develop the next generation of our young businesspeople. I dont think theres no dispute we need to grow the Financial Literacy in order for people to be successful. I saw it when i was tax commission. People with ideas, great ability, didnt know how to file the simplest of tax forms. Not that we should not have fewer tax forms, but theres going to be need for some tax forms to be filed. I look forward to continuing our discussion about the challenges of native americans and entrepreneurship. Thank you, very much. Ms. Ernst thank you, mr. Chair and mrs. Mcmahon for being here today. I appreciate the time you took to sit down with me and many members of the committee. I want to say a special thank you to senators blumenthal and murphy for being here today. I think so many times we get caught up in partisanship that we forget theres many issues we are passionate about that share a bipartisan nature. To thank them as well for being here to support you today. I know many members of the Committee Like to work on things together, especially when it comes to Regulatory Reform, tax reform, and others. Sat down in my office and talked about a number of issues. Up of the issues i brought as we sat down was project i have been working on over the last year. It is legislation that gives Small Businesses a stronger voice in the regulatory process. The legislation did pass out of this Committee Last year and we worked hard with the folks in sba in the Obama Administration to get their input and feedback. Because the goal is to make sure the bill is bipartisan and a success. So we did talk about it. And the purpose of the prove it act is to strengthen the voice of Small Business to improve the quality of their certification and analysis when they are writing a rule. Simply put, the prove it act says if there is a battle of analysis between different agencies on the Economic Impacts of a rule, then there should be a third party that will step in and review the facts, and then issue an objective assessment. Know the Small Business advocacy testified in front of this Committee Last year because they were in disagreement about the analysis that the epa and corps of engineers had completed on the rural. They believed it would have significant Economic Impact on Small Business. And as well with this prove it act, there were a number of organizations that supported it. Andmf ib, the chamber, womens organization. Can i get a commitment from you to work with me on this legislation to help implement it especially given the desire by our president to make sure we reducing Regulatory Reform on Small Businesses . Ms. Mcmahon thank you very much. I did enjoy our meeting. When you talked to me about this legislation, i thought wow, isnt that really common sense thing. I think we need more common sense in government. You have two sides who cannot agree, have you a referee that comes in. I liked also what you are telling me about the bill, that it actually would make the agencies Work Together before it had become a public event. I think it is a very good piece of legislation and i would like to learn more about the and look forward to working with you to support our Small Businesses. Great, i appreciate that so much. What are your goals in the first few months, should you be confirmed . What are your goals in the first few months at the sba . Ms. Mcmahon there are so many things to work with, we want to be mentors to entrepreneurs and grow and create jobs. If i have to walk in the first said, what ise the first thing you want to look at today . I would say the Disaster Relief program. They happen and we need to be prepared for those disasters. I do not know how effective they have been. When sandy hit, hurricane sandy, the devastation up the east coast in connecticut, new jersey response. S a delay in i do not know if that was because it was a massive storm, it went so far, resources were not there. But we need to get ready for that. Tonight to go, tornadoes in georgia killed 19 people. We have to be ready for Disaster Relief. When our Small Businesses are put out of business, the economy suffers because they are out of business. We need to get them out of their homes to get those loans to read so that they can get back and functioning. That is the real passion we need to take a strong look at. Ms. Ernst that is great. I was not immune to those National Disasters. In iowa 97 of our jobs come , from Small Businesses, thank you, very much. Ms. Mcmahon thank you. Senator duckworth. Thank you for spending so much time with me yesterday. I appreciate your time and willingness to address my concerns that have to do with wwes use of 1099 employees especially and it pertains to the health of your performers, and the potential, someone businesses, i do not want that to be the standard, to use 1099 employees to avoid paying and providing Health Benefits from protection for Small Business employees. Just like anyone else. I also appreciate you addressing my concerns about potential monopolistic practices at wwe as well. Thank you for that time. I do want to focus on one of the goals of the sba, congress created the sba to achieve two goals to help american small , business and make sure they win a fair amount of government contracts. I want to focus on the second goal. As a member of congress committed to making government work better im concerned our , federal procurement is not meeting the needs of american Small Businesses. In illinois, 99 are Small Businesses and they employ 46 of those living in illinois. A significant part of our economy. I hear from illinois Small Businesses that are frustrated ,ith jargonfilled websites they are confusing online tools. These may be fine for large corporations that have teams of accountants and lawyers to read through them and figure them out. You and i talked a little about also chief cook and bottle washer and janitor. The federal government is failing Small Businesses. They want to do business but do not know where to start. Simply put, the federal intonment needs to tap Small Businesses ready to help agencies achieve their mission with Innovative Products and services they can provide. If confirmed, will you work with me to streamline and modernize these vital federal contracting tools . Ms. Mcmahon thank you very much, senator. As someone who is technologically challenged, i can understand the frustration of many Small Business owners who are looking to break through the morass of confusing websites. I think its important that we make our tools the simplest, most direct way so they are easy to use. If you make things too complicated, many will give up before they can get through. They do not have the resources to have it explained. I would look forward to working with you if i am confirmed so we can sort through this and bring someone else in. Need when the people so the websites get developed and refined they become a useful tool. Ms. Duckworth once Companies Use the tools to try to get contracts from the government, will you work with me to improve Small Business prime contracting goals of the agencies . A lot of us have a hard time competing with veteran owned businesses and women owned businesses. Major bureaucracy. Will focus onu working with me to improve those goals across federal government and holding them accountable with a fair portion of the federal contracts. I am happy we have gone to 5 . I would like to see that go up. I would look forward should i be honored to be confirmed to working with you and all the members of the committee. I have been invited to your states to come visit with the sba office, when i look forward and i look forward to that. I would be happy to sign up to visit many of the states. I wont make you come to chicago in the winter. I want to address the prospect of the president s potential 20 million infrastructure which he spoke about on the campaign trail. He seems to be recommitting himself to a muchneeded investment in our infrastructure. To making sure Small Businesses have a shot at those contracts. Small businesses are operating in our hometowns across the country. They can bring jobs and development into the local area. I hope you will commit to working with me to make sure special attention is paid to providing Small Businesses with opportunities to compete for work. Especially this advantage is this enterprises. Ms. Mcmahon i would look very forward to doing that. I faced some of the same issues in connecticut. Shuttled over and did not get their fair share. Ms. Duckworth thank you, so much. Thank you, mr. Chairman. I most certainly appreciate the time you spent with me in my office. A lot of our discussion had to the size of the federal government with regards to the amount of Regulatory Overreach that i personally the size of tl feel has been involved, not just over the Previous Administration, but a series of administrations. 2008,y have heard since more than 25,000 new regulations have been issued for american businesses under the Obama Administration. Some estimates find the impact has reached 727 billion require 460 million new hours of hours of paperwork, on top of Compliance Costs of 2 trillion for all federal regulations. Or more than 11 of our gdp. Independent office of advocacy is an important voice in standing up for Small Businesses against regulations and the burdens they would impose. The office of advocacy intervenes in the regulatory process and helps to inform about the impact on small other regulators about the impact on Small Businesses. Some others have indicated concerns with the capability of this particular office of advocacy. I would like to go specifically to what happened in the last year, where the office of stepped in on behalf of many Small Businesses in the united states. Many family farms and ranches that would have been epas waters of the u. S. Role that senator inhofe and senators have identified earlier. The Small Business Administrations Office of advocacy sent a letter which i would like, mr. Chairman, submit for the record today. They sent this letter 2014 to october 1, epa administrator of the u. S. The armyccarthy and corps of engineers. They recommended the entire rule be withdrawn. That was apparently ignored. The rule continued forward. I would like to know if you are confirmed as administrator of the sba would you be willing to write a similar letter recommending this rule be withdrawn and reminding our new administrator of the apa of the damage it has done to Small Businesses, farmers, and ranchers alike . Ms. Mcmahon i would look forward to working with you and the other senators, those were brought the issue. I think senator ernst told me Small Business in her state wanted to expand it would have to get approval from the federal government in order to do that. I think that is overreach. I look forward to working with you and members of the committee to make sure we have right regulations in place. To put it more directly, would you consider, if necessary, if it is not withdrawn . Would you consider reissuing of office,er through the similar to the way it was done last time, but addressing it to the new director or administrator of the admire mental Protection Agency environmental Protection Agency . Ms. Mcmahon i would like to find a way to put teeth into the department of advocacy and find a way to make that happen. Mr. Rounds i can take that as an almost yes. Ms. Mcmahon i am looking forward to working with you on that. Under the Obama Administration, fees were waived for number of qualifying 7a loans including the up front one time loan ongoing servicing fees 7a loans for 150,000 or less, 204, 2015, 2016, if you are confirmed would you consider looking at continuation of these waivers . Ms. Mcmahon i would like to make sure we are making it as easy as possible to get these loans to help Small Businesses. I would like to look at what did we accomplish by that. When i have those answers i would like to see what the merit to that is. Thank you very much, sen. Rounds thank you, it is good to see you. Thank you for the time we spent together. I would like to commend you for the comments you made regarding President Trumps comments about women. I ask you to be a strong voice for women. It should you be the confirmed administrator, will you commit to preserving the programs and funding that exist to promote women and minority entrepreneurship . And work with this committee to improve these programs . Ms. Mcmahon i definitely want to be a strong advocate for women, our strong businesses, and are minorities and businesses, and veterans. And with members of congress to make sure we have the right regulations to help businesses grow. Ms. Hirono i think you have an understanding of the special challenges faced by women entrepreneurs, having been one yourself. And minorities and veterans, those are groups i am focused on to make sure they have the kind of support from sba that they should get. We have heard a lot about access to capital. Something you mentioned hearing about when you are running for office. Have you identified specific factors that lead to difficulty in accessing capital . The causesknow what are, if we cannot make the youopriate changes have id to identified what you would do . Ms. Mcmahon thank you for your question. Let me share a story. I was running for the senate in connecticut. There was a company in a rural area, quiet country. There was an entrepreneur who grit, making these grips and springs. And he built his business from two to three people. He got loans from the community , he knew his Community Bank are banker. In order to get new workers need to add onto his facility. So he went to see his same Community Banker. Him, you arer told asset rich but cash poor. He said, i totally get that. Because if i had the cash i would not need be to here to get through this time. What the banker told him was in the past i have been able to loan you this money, but today, under the new Regulatory Environment we find ourselves in, you no longer qualify as you did before. You would have to over collateralize in order to make the loan to you. That meant he had to put up all of his assets. His house and other assets, in order to collateralize a much smaller loan. While entrepreneurs are happy to take managed to risks that was , simply too much. He did not expand and he didnt grow his business, he didnt hire the next people. Thats an example of a Regulatory Environment that does not allow our Small Businesses to grow. Ms. Hirono let me note, i have heard those comments also from Small Businesses in my state. Some of those resulted from the financial collapse and the underregulation of Financial Services industry on wall street, so there is usually a cause and effect. Im with you in trying to resolve some of those issues. But there was a reason the collateral rules changed, because there were all these uncollateralized loans which led to the collapse. We hear a lot about over regulation, when i talk to my Small Businesses, its easy to say we are in an over regulated environment. But i ask them, what specific regulation is causing you trouble . Unless we identify them appropriately, we can talk about it but not get to the heart of it. Ill give you an example. Couldwas a farmer, he ship cut flowers but they could there were reasons he could not ship whole flowers so we worked to change that. Weould like to ask you, when actually moved to improve the Regulatory Environment, you would ask those very specific kinds of questions so that we get to the heart of whatever the regulation is that is causing them problems as opposed to some kind of, yes, were over regulated that doesnt take us far in my opinion. Ms. Mcmahon thank you, for that comment. I dont know how you change regulations if youd cannot identify them. You have to know theres negative and positive impact. We need to be able to change or enhance them. Im committed to doing that for sure. Ms. Hirono thank you. I know my time is up, but i am glad you mentioned one of the first things you would do is look at Disaster Relief because sba being on the ground when disaster strikes, that is important. I was pleasantly surprise by your response to that question. Thank you. Senator scott. Mr. Scott thank you for being here and your willingness to serve. According to the 2016 nfib survey of problems and priorities of Small Business owners, they listed health insurance, unreasonable regulations, tax complexity, economic uncertainty, and asating qualified employees a mother top concerns. As a business owner, i know you can identify with many of these concerns. If you are confirmed, how will your experience play a role when determining if the sba can alleviate some of the concerns of Small Business owners . Ms. Mcmahon thank you very much, senator. Having walked in the shoes of Small Businesses owners, i understand how difficult it is when you are in a cash flow business and not a brickandmortar business. It is very difficult to have access to capital and get loans when you really have no capital except your own cash flow. I know there are a lot of startups that face those kinds of issues in getting capital. I know how to talk to them about and cash management, i advised startup companies. Once you start making profit, get a line of credit. Because when you need it, you cannot get it. It is really important advice to Small Companies. To manage your cash very, very carefully. Because cash flow is a great part of success. Under capitalization is why Many Small Companies fail. Having walked in those shoes i understand that. Mr. Scott absolutely. One of the things youunder capiy Small Companies fail. Mentioned about cash flow, looking for qualified come local employees i assume you have had success with local qualified employees like triple h . I thought that was funny, as well. [laughter] , i scott throwing in my wwe was enamored of the concept. , the whole nine yards. I do think one of the challenges Small Businesses face is how to align the jobs in the marketplace with the skills in the marketplace. I was a Small Business owner for 20 years. Attracting the right talent to the right market is a difficult task. 64 of new jobs are created in Small Businesses. Colorado, they will need one type of employee with a skill set that matches what is available in colorado. The number one Tourist Destination in the world which you should visit soon, the reality is, our tourism drives a lot of our entrepreneurship. Thedo we align opportunities and access to jobs with those folks looking for jobs in a marketplace . Ms. Mcmahon thank you. It may be a different twist on that. I continue to say when i was campaigning, that was a fouryear period when i did learn about what was going on in my state. What i found out was, in many instances, there were not as much a shortage of jobs as there were trained people for those jobs. I think we have to refocus how we are looking at the jobs market. Sitting on the board of trustees at sacred heart i looked at the programs we had and asked, are we reaching out to corporations and companies that are surrounding our universities to understand what kind of ships or changes we need to make in order to fulfill that employment stream . I think we are starting to be more successful in that. But we have a long ways to go. That is one of the things i am committed to, even before this i was asked to do this. I would like to continue to make sure we are training our folks for the jobs that are there. Mr. Scott i have about 30 seconds left, mr. Chairman. I would help as the new head of the sba you will look for ways to create synergy with any government. Perhaps Technical Schools and the local level. Does not matter what level of government, you look for ways to create the synergy to provide an alignment for those jobs and skills in the marketplace where they are available. Tois a great place for sba take the unique perspective on their mission and find ways to improve the outcome of the average person who starts in a difficult place and finds entrepreneurship as a path forward. Thank you, very much. Thank you, senator scott. The chamber of commerce will be delighted. At mr. Coons i appreciate the chance to share stories of entrepreneurship and job growth. I am thrilled of opportunity to continue that conversation. It was about the key role sba can play in helping Small Businesses grow great jobs. The importance of accessibility, capital, strength of ip, value of mentoring programs like score, federal government areas like the Manufacturing Extension Partnership that can help Small Businesses to grow. My own home state of delaware, which i have invited you to visit, we have a great beach community. There are a number of iconic businesses at the delaware sbahes that started with loans that helps them grow in their early stages. You will see on both sides of the aisle knowledge and enthusiasm of the impact sba has had in our state. And the folks that lead sba in delaware have done a great job. I love doing smalltown business. We go up and down the main street, the impact sba programs can have. When we met we talked about your knowledge about intellectual property. Using trademarks and licensing yourotect key innovations business engaged in. I talked about my passion for patents and making sure Small Businesses know how to protect what they have and what they can bring to the market. Do you agree it is important to educate Small Businesses about how they can protect what they invent or innovate . Whether it is through patents or trademarks or other ip . Is that something we can work on together . Ms. Mcmahon it is such a large wwe. Of sometimes you bring a little knowledge and it can be dangerous. Or you have enough knowledge to know you have to go further and ask somebody with expertise. That asery Important Company developed injured intellectual property, that we copyrighted Television Shows or music programs or magazine works. It was important that we registered trademarks to protect. You invest so much money to grow and develop that product or intellectual property. But, if you do not protect it, and someone else takes it away, you dont have a leg to stand on because you did not defend your own property. Its important that they young businesses understand the value of what they create and they need to protect that. Expend a some money to do it. But in the long run, your protecting your investment. Mr. Coons i look forward to working with you on that. We also talked about how this is an area of general broad agreement on a bipartisan basis. In what is otherwise a contentious subcommittee. I think that the fact that you are introduced positively by two gentlemen you ran against was a moment of the agreement about the skills and value you bring. That is worth remarking on. In appropriations, it is my hope 7awill Work Together on the program to make sure we are promoting needed programs plus a return to subsidy. Let me mention two other things. I have had the joy of working with senators on extending tax credits. Can help innovative startups, companies that use technology and innovation to grow quickly. Grateful for any help you can offer in working Technologies Technology businesses. Lookedator risch and i Work Together for the score program. Ms. Mcmahon i remember we talked about that. Mr. Coons it helps Small Businesses get their plan together. I would be interested in hearing if you can support score, seeing this as a Critical Program if you are confirmed. Ms. Mcmahon thank you, very much. Statistics show, whether it is womenowned businesses or whatever type you are more , successful with mentors. Someone you can talk to to give you advice, especially under score. When we have had executives who take it upon themselves they are , seasoned and accomplished professionals. To have that as a resource is fantastic. I would like to see more mentoring because we would have more businesses be successful. Mr. Coons i would love to work with you on that for in the future. Thank you. I am grateful you are taking on this Important Role in the trumpet ministration. Think you, senator young. Young thank you. It is great to have someone of your caliber and experience willing to put yourself forward and serve in this capacity. Being the advantages of lower on the proverbial totem role, i get to hear all the brilliant questions of my colleagues. One of the disadvantages, i have to rework the questions when the i willended to ask attempt to ask you things that have not yet been addressed. I come from a Small Business family, as well. Commercialgrown a hvac over the years. My brothers have taken over that business. I understand the unique challenges, unique opportunities, that are associated with Small Businesses. This town is rigged often times against the little guy or woman as it were. On account of regulatory burden, sometimes foisted with great deliberation by larger businesses to crowd out competition from upstarts. Our tax code is another example. The Small Business administration, it is been ,entioned, has an opportunity perhaps unrealized to its full extent, to advocate on behalf of Small Businesses in each of the different federal agencies through the office of advocacy. You said that would be a real point of emphasis on your part. The regulatory flexibility act of 1980, tasks this office of advocacy with monitoring federal Agency Compliance with the act and assisting regulatory agencies during world making development to mitigate adverse impact on rules on small entities, blah, blah, blah. This seems like a lot of work. Comparatively speaking, it is a Small Department compared to the department of defense. I would be very interested say, 180 days into your service, to get feedback to this committee to my office in particular about what you have learned with respect to the office of advocacy, how its operations might be improved. If there are additional authorities or resources required to advocate on behalf of our nations of Small Businesses and the young firms. That would be instructive to all of us. Do have do i have your commitment, should you become next head of department . I look forward to reporting back to all the members of the committee the things i have found throughout sba. Where i have found issues or problems and i need your help and guidance. I hope you would not hesitate to reach out to me to say, these are things i really want you to take a look at. Will be drinking from a fire hose for a while. It will be a lot for me to absorb. I would like to be the most effective as it at it i can. Mr. Young you would make every effort within 180 days. Ms. Mcmahon i will get back to you. Mr. Young fair enough, thank you. And questions about government efficiency and avoiding duplication. Something you indicated was important. Can i get a commitment you wont find ways to streamline the work of the sba . Ms. Mcmahon i definitely want to streamline where we need to streamline and where we need to add we need to add. I look forward to working with you and everyone on the committee to do that. Mr. Young lastly, i know back in my great state of indiana, we stumble upon unique approaches to assisting our Small Businesses. States haveher their own examples to put forward. I think there might be an opportunity for the Small Business administration to be an effective clearinghouse for best , emerging from the local level or state level. Perhaps even best practices we have seen in other countries. With your commitment to work with me on my efforts, perhaps we will be able to assist our Small Businesses. Can i get your commitment to explore those opportunities as well . Ms. Mcmahon i am a Firm Believer in best practices. Of whatook across all is going on relative to sba, we identify areas that need to be sure it up and others that need to be changed or removed. Yes i like best practices. ,mr. Young thank you, so much. Thank you, very much senator young. Senator markey. Mr. Markey in my office, i raised the issue of Net Neutrality. It isason i did is that not really well understood, 60 of all Venture Capital goes to software and internet startups. They are Small Businesses. Counterparts at the federal communications chairman, ishe new talking about repealing those rules. Which does make it possible for new startups to reach all 320 Million People in america which is the is this model, investment money flows that way. And do we have the next generation of startups . Are you familiar with that Net Neutrality issue . What is your general philosophy towards those areas of Economic Development . Yesterday when you and i spoke about it, i said thank you for informing me about this and educating me about this. I had not dealt with Net Neutrality with any businesses i have been involved in. I understand your concern from yesterday that we dont want any restrictions on access to the internet because it can impede Small Businesses. I would like to continue to learn more about that and learn more from you about how it can restrictions on access to the internet because it canbe done. Thank you. Sbir , staggering numbers. Thank you. Since it was created in 1982. Massachusetts Small Companies have received 20,000 Small Business grants. 2,300 new firms were created out of those grants. Creating tens of thousands of new jobs in our state. Sbirry much rely upon grants as part of our longterm planning. We have been advocating to make this a Permanent Program. A chance to look at it, and what do you think are the prospects of making it a Permanent Program . Have just begun to familiarize myself with it. I spoke with many senators on the committee that said how important sbir has been to their constituents. Especially in the world of Small Businesses, technology and startups and what a large proportion they are. Especially in your state. I want to delve into that and see how we can best utilize sbir to see if we need to enhance it. I want to know why that has been official. I want to continue to learn from you and others about that. Climate change. T is real, it is happening we see it along the coastlines of our country. Over and over again, fema and the sba have had to respond in order to help louisiana, affected by historic flooding. Or, along the northeast with historic storms that hit our coastlines. In each instance, fema and sba have responded to these National Disasters. Time it changes only going to get worse. Have you looked at that issue of what the impact is and what planning sba might have to make in order to deal with these changing conditions and its impact on Small Businesses . Ms. Mcmahon i learned from you yesterday about the warming of the waters in massachusetts up to maine and around the cape cod area. Mr. Markey the fastest warming body of water in the world. A. Mcmahon that is fascinating statistic. You indicated how it is driving the cause and lobsters and north. And the fishing industry is being impacted by climate change. Those are very really statistics that i want to learn more about. I want to know, not only as a relates to massachusetts, but where else in our country where Small Businesses can be affected and how we take a more active role. Mr. Markey after the brothers attacked boston on memorial day in 2013, the sba stepped up to help Small Businesses to recover. That is just another great function of the sba that is not fully understood, whether it is National Disaster Natural Disaster or manmade. Hopefully with your leadership we can see a continuation of that great tradition. The thank you. I want to thank you for being here. It means a lot to help your country and make the sort of sacrifices you can make in this division. I am grateful for your patriotism. I want to say when your daughter and soninlaw stood up, your daughter is far more fierce and intimidating than your soninlaw. [laughter] she and i are about the same age, and paul is letting himself slip little bit. After this maybe we should go to the senate jim to get him some shape help in getting back to shape. Real quick, new jersey had good years. In fiscal 2015 we received sba loans. 500 million of it went to underserved communities. As the mayor, i was blown away by how minority women are doing such extraordinary jobs in our country, starting businesses. I am proud to support the programs focused on them. Im wondering if you support a higher cap to make loans in fiscal year 2017 and 2018. I would first like to see, are all of our loans being made effectively . Are they going where we are we think they are going . I do not have a handle on if that metric is in place. I want to make sure we are serving more and more minorities, Small Business owners, veterans, native americans. All ifto know first of the loans we are making are effective. If they are, lets increase it. Mr. Booker i appreciate that response. The stability of the loans are ofe powerful than usage other government dollars. The traditional indices used by banks to assess the loans, something i learned from keiva is doing microloan work. Indices,raditional they have loan repayment loans and they figure out other ways to get capital into the system. And, correcting for bad policy from the 1990s. A lot of folks imprisoned for nonviolent drug use, doomed for things that two over last three president s admitted to doing, would come out of prison and a pay their debt to society but would not be able to get pell grants, food stamps, public housing. Stripped of their way to compete economically. What your predecessor did was make changes to incorporate citizens, many of whom are on parole, available to get loans. A remarkable change. Some of our great entrepreneurs are people who have made mistakes in the past. I want your commitment that that is something you are going to continue as a practice. Ms. Mcmahon i certainly would like to more no more about it. I would like to see if it has been affected. Mr. Booker i appreciate that, most americans, 1 out of 10 is violating drug laws, disproportionately on poor people and minorities. No difference between blacks and whites for doing drugs or are fourrugs, but you times more likely to be stripped of economic opportunity. Your attention to that program would be helpful. Ms. Mcmahon thank you. Mr. Booker theres a lot of talk about the sba and transparency, i want to make sure youre committed to help us have transparency when it comes to loans we can a better metrics about how the loans are doing and being directed toward different populations. I really appreciate that. Quickly, i have a lot of problems with the regulations. I think theres a lot of opportunities for people to work on both sides of the aisle. The number one employer in america if you include contractors, is the federal government. It creates tremendous jobs. As we heard from others, ofigating that labyrinth rules and regulations is difficult. As example, the people who manage pension funds, which have ofn given hundreds billions of dollars given to one major outlet. Managers, which states use, womenrun businesses or minorityrun businesses, outperformed the big folks. But because of regulations it is hard for Small Businesses to compete. In the Technology Field this is difficult because small tech firms who provide Greater Service cannot compete for because it isnts too difficult to navigate. I want your commitment that as you look at Small Businesses in general, looking inward at the way we do our processes is critical to empowering Small Businesses. If we can help to lower regulations, make space for smaller businesses to compete for contracts or breakdown contracts into smaller, bite sized opportunities, we will help the economy. A, pushedr of billions of dollars into the present market for you to be a voice and look at a way to empower Small Businesses to make an impactful difference. And give government Better Service for their dollars. Is that is something you will focus on . Ms. Mcmahon i would absolutely advocate for our Small Businesses having access to compete. Mr. Booker thank you. Mr. Kennedy i appreciate your time. To mr. Trumpsn team. Do you understand how hard it is to start or expand a Small Business in America Today . Ms. Mcmahon yes, sir. I have had that experience. I know very well what it takes. Kennedy lets start with the regulation. Here is what Small Business people tell me every day. They do not complain about specific rules or paying their fair share. They tell me we need simpler fewer rules, we need quicker decisions by the bureaucracy. We need governmental workers who will answer the phone. We need government websites that a normal person can navigate. That is all they are asking for. Experience, i have been in america longer than i have been in washington, i have been a senator for three weeks you cannot be for jobs if youre against business. They need five things, they need low taxes, they need reasonable regulation, capital, they need decent infrastructure and a skilled worked force. I realize sba cant provide all of those. But tell me how youre going to help Small Business women and men get those things. Ms. Mcmahon thank you, very much. Senator kennedy. I too, enjoyed our visit. A lot of what we talked about, if i were fortunate enough to be confirmed you will be. Ms. Mcmahon thank you, did you hear that . I think it is important we mentor these Small Businesses. Goodwill be. A lot of times thea idea, this is my business, i will show you. And it is an abstract is this plan. Even if you help them get it right with all the t crossed and is dotted, you have you to say there is not a good idea. This business does not look like it has legs to succeed. Often there is not enough of that kind of mentoring. We talk about lower taxes, lower regulations. But you dont have the basic understanding of what it takes to have a successful business. Re needs to be that access aspect of mentoring. That will help us grow more quality businesses that do have the opportunity to succeed. Most Small Businesses fail, i understand that. But what i think is happening, a lot of really smart people are afraid to try. They are afraid of their chances of success, they think there are none. They start looking at the different permits and es,ulations and roles rul capital, they have to put a second mortgage on their home. It is insurmountable. Here is what i hope you will do. Because i do believe you will be confirmed come i think youre very qualified for this position and i think the president has , chosen well. Here is what i hope you will do. Im familiar with what sba does and i know you are too, i hope you go beyond, i hope you would be an advocate for Small Business in this administration. In my state, 90 of our jobs are created by Small Business women and men that are taking a risk. Be anit is risky. Sometimes they fail. But when they stop trying, in my part of america, we are in real trouble. So i hope youll take on that role. If theres something i can do, let me know. Good luck. Ms. Mcmahon thank you. I dont think i could be an advocate for sba if i were not an advocate for Small Business. I think they are one in the same. Thank you. i yield back my 24 seconds. Senator shaheen back to you. Thank you, mr. Chairman. I have two questions. I know we may be waiting on one or two other people. Are aware, the Small Business administration is a relatively small investment in this economy. If you look at how it compares to many other agencies within the federal government, their budget is not one of the largest, lets put it that way. And yet, as we heard from all the members of this committee, Small Businesses are very important to the countrys economy, to job growth. We need to do what we can to support them. America, new rural hampshire does not have many large cities, we mostly a rural state. Most of america is, also. Sba,there are cuts to the that has an inordinate impact on rural america. Because one of the places they can get support, as you heard, is from the sba for mentoring, for guidance on issues that come up with their businesses for loans. It is very significant. And i want to hear from you that you will be an advocate for the budget of the Small Business administration because what we saw in the last Republican Administration is that they cut the sba budget by about 32 . Can you reassure me you will do everything you can do advocate for sba in the Current Administration . Ms. Mcmahon absolutely. I want to make sure we have the right budget to accomplish what we need to accomplish. It may be that if i have an opportunity, if i am looking at one aspect of expenditures to say, i think we can best take some of these dollars and move them over here. Those are the right ways to look at our budget and make sure were asking for the right appropriations. Our program. Heres what we want to accomplish and here is what it will take to read when i was ceo, when it was budget time, we went back to zerobased budget. You had to justify, your department and expenditures. It is a sobering experience. A peeling there is back of the budget and where those dollars are spent. My commitment to the committee, i will be an advocate to make sure sba runs effectively and efficiently. I appreciate that, a goal that we all share. With that in mind, i wanted to call your attention to what was reported this week that the new , administration is preparing budget cuts based on a blueprint posted by the Heritage Foundation. Forndorsed cutting funding several programs i think are very important to Small Business. Program. E sbir we have heard from a buyer a lot of members attesting to the importance. Terms ofeen that in job creation and providing innovation to the department of defense. In a hearing before the Armed Services committee, we heard from experts that the most effective existing program to help our military get the innovation they need is the sbir program. So i would urge you to look at that carefully as there are discussions about cutting that program. The other area the Heritage Foundation blueprint talks about role inis, sbas disaster assistance. That, iur interest in would have severe reservations inut cutting sbas role disaster assistance. Finally, and support for international trade, which, so many Small Businesses, having access to those markets can make the difference between growing, succeeding, and failing, especially when times are tough. I encourage you to take a hard of those issues and advocate what is best for our Small Businesses. Thank you. Wax finally we will turn to senator rubio. Senator rubio will be the last. A momentous occasion, because it is not very often you get questioned by every single member. I am honored. Sen. Rubio thank you, mr. Chairman. Ms. Mcmahon and i have known each other for a while. I will focus on one issue of particular importance. In the state of florida, the zika virus had an impact on Small Business. Number of been a questions on Disaster Relief for communities impacted by storms and other events. What i think has become a new disaster is the impact of the pandemic, or the designation of a community as being a place that people should avoid. Florida,ened in south when the cdc was telling people do not visit if you are pregnant, or certain geographic areas in the community. While a lot of people think it impacts the big hotels, restaurants, and nightclubs, it does, but it impacts all sorts of Small Businesses down the chain from, quite frankly, the uber drivers all the way to the wedding that got canceled. One of the things that we discussed was an effort i made last year that the Previous Administration was open to redefining to address hardships that Small Businesses face during Public Health crisis. So i would just ask is that something you would be open to exploring and looking at . There needs to be some predictability. But i hope thats something i can encourage you to be open minded about, because while i dont think well have many of these, there is nothing to say it couldnt happen again. Our ability to help some of these Small Businesses who are impacted by the outbreak of a pandemic like zika in the future dynamic, particularly in communities involved in a lot of international travel. So i dont know if you have had a chance to explore that issue a little further, but i hope you will be openminded and work with us on achieving it. I think we could unfortunately see that play out in a number of different places in the future. Ms. Mcmahon i have not had an chance to look at it but i look forward to working with you on that. Sen. Rubio thank you. I would encourage you to come to florida and visit. Mcmahon would it be during the winter . Sen. Rubio yeah. We could schedule it some time between november and march. But there is some real dynamism in our Small Business community. In particular, i always pointed people to how dynamic first generation americans are. Our commented to you in ochos, people know that 8th street, it is a traditional area where the cubans have the businesses are familyowned and operated. People say all the time that truly is the backbone of our country and our business class. They do not get the headlines, but in a lot of these businesses face challenges. You could have the greatest one of in the world, but the things that happens, when they decide to expand the road in that area and go to construction, it is great for the future, but for the next year and a half, customers think they will be able to get in and out, and it is devastating or some of these Small Businesses. Not just people focused on the loan programs and the other financial assistance, but to be for smalle businesses. I believe Small Business in America Needs advocates within the federal government who are constantly watchdogs for any Public Policy that has a disprortionate impact on a smaller business. I know you are going to be busy, but at some point, particularly when its cold and snowing everywhere else, i encourage you to come. Well find the right place, whether it is central florida, we have Small Business success. We would love to interact with you. Again, i thank you for your willingness to serve our country. I am grateful for the opportunity we had to talk. Process is not always a pleasant experience. It sounds like this meeting has gone well. I look forward to working with you. I anticipate you will be confirmed fairly soon. I have an equally attractive offer. Sen. Rubio hawaii . That is a good one, too. Ms. Mcmahon i was also invited to alaska and north dakota. We can do that in the warm months. Thank you, senator rubio. Ms. Mcmahon, thank you so much, and for your willingness to serve. Senator shaheen wanted me to appreciation. This has really been a good hearing. As you can see, we have a very Diverse Group of senators with different ideas about things, but thats what makes america great. Have beenaheen and i talking about trying to move this as quickly as possible. We feel very good about getting you confirmed. But obviously, its not over until its over. Well try to move this next week. We are booked up this week, but we will try to keep it open until close of business tomorrow, wednesday, january 25. Well keep it open for two weeks to edit statements. So with that, thank you. Thank you to your family for being so supportive. With that, our committee is adjourned. [gavel] [captions Copyright National cable satellite corp. 2017] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. Visit ncicap. Org] [indistinct chatter] President Trump signed three more executive orders this afternoon. Outlines a reorganization of the National Security council. A second implements a lobbying ban on Administration Officials and a lifetime ban on Administration Officials lobbying for a foreign country. The third calls on military leaders to present a report in 30 days that outlines a strategy for defeating isis. Here are those signings now. Pres. Trump how are you . So this is a fiveyear lobbying ban. Most of the people standing behind me will not be able to go for our wonderful country. A fiveyear ban. It is a twoyear ban now and it has loopholes. This is a fiveyear ban. You have one last chance to get out. [laughter] pres. Trump this was something i have been talking about a month on the campaign trail. We are now putting it into effect. [applause] pres. Trump this is the organization of the National Security council and the Homeland Security council. You know pretty much what it represents erie at it represents a lot. You know pretty much what it represents. It represents a lot. People have in talking about doing this for a long time, like, many years. Ok. Here, mr. Vice president. [applause] pres. Trump this is the plan to defeat the Islamic State of iraq and syria, in other words, isis. I think it is going to be very successful. Pres. Trump ok. Thats big stuff. [applause] reporter is your government prepared to implement the immigration executive orders from yesterday . Pres. Trump totally. It is not a muslim ban. We are prepared very nicely. You see it at the airports and all over. We are going to have a very strict ban, and we are going to have extreme vetting, which we should have had in this country for many years. Thank you. Appreciate it. Have a great weekend. Pres. Trump thank you. Announcer President Trump also spoke with several foreign leaders today. The White House Press schedule showed phone calls through out the day. He spoke on the phone to japanese Prime Minister shinzo agreed to the leaders meet for talks in washington on february 10. Other calls were to angela merkel, francois hollande, and vladimir putin. The kremlin says president putin and President Trump agreed to work closely together and boost ties. The kremlin says mr. Putin and President Trump