[ 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 th