Steve Chabot

Mr. CHABOT

Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I will conclude by saying that employee-owned businesses really populate the streets and neighborhoods of many cities across this Nation. They are unique in form but face many of the same hurdles that other small businesses face. H.R. 5236 streamlines how employee-owned businesses operate under the important rules of the SBA 7(a) Loan Program. While preserving important characteristics of the program, H.R. 5236 will help employee- owned businesses as they seek capital to grow, expand, and create much- needed jobs. Mr. Speaker, I want to again thank and commend the ranking member, Ms. Velazquez, for her leadership on this legislation. I would urge my colleagues to support H.R. 5236, and I yield back the balance of my time.

Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, ownership structures of businesses come in numerous shapes and sizes. Whether they follow a traditional model or an employee-owned structure, small businesses across the Nation continue to face a difficult lending environment. Although the SBA bridges the gap for many of the Nation's small firms, 100-percent-employee-owned firms face uncertainty as they navigate the SBA's 7(a) Loan Program. To strengthen the 7(a) Loan Program for employee-owned small businesses and worker cooperatives, Ranking Member Velazquez introduced H.R. 5236, the Main Street Employee Ownership Act of 2018. In order to provide clarity for program participants, H.R. 5236 would update reporting statistics to ensure accurate data is captured. The bill also codifies ownership transition plans. Additionally, H.R. 5236 requires the SBA's resource partners to have educational material available to explain the nuances of these uniquely structured businesses. Although the requirements for personal guarantees within the 7(a) Loan Program prove challenging to some of these business structures, H.R. 5236 importantly preserves this hallmark and requires the SBA to work with industry representatives to develop ways to satisfy the guarantee while reducing its burdens. Employee-owned small businesses are an important part of the small business ecosystem. We must continue to streamline the processes and procedures in place at the SBA for all small businesses. H.R. 5236, Ms. Velazquez's legislation, is a step in the right direction that provides clarity for employee-owned small businesses and worker cooperatives. Mr. Speaker, I want to thank the ranking member, Ms. Velazquez, who has spearheaded this legislation. I urge my colleagues to vote ``yes'' on H.R. 5236, and I reserve the balance of my time.

Mr. CHABOT. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 5236) to expand opportunities available to employee-owned business concerns through Small Business Administration loan programs, and for other purposes, as amended.

Mr. CHABOT

Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume to close, and I will be brief. Mr. Speaker, America's small business development centers must have the best possible cybersecurity training so that they can better assist small businesses to detect and combat cyber attacks. In our committee's efforts to spotlight these serious and growing threats, it has become clear that we need to think outside the box as we work to thwart cyber attacks, and the bipartisan bill before us today is a step in that direction. I would urge my colleagues to support this legislation, and I want to again thank the gentlewoman from New York (Ms. Velazquez), the ranking member, for her leadership on this. Mr. Speaker, I yield back the balance of my time.

Mr. CHABOT. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and include extraneous material on the bill under consideration.

Mr. CHABOT. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 3170) to amend the Small Business Act to require cyber certification for small business development center counselors, and for other purposes.

Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, before we get into the business at hand, I would like to thank our ranking member, Ms. Velazquez, all of our minority and majority members on the committee, and their staffs for working in a bipartisan manner to produce this strong package of small business bills. Our committee strives to be bipartisan and an example, really, for our fellow Members. That can't be done without equal effort on both sides. Again, I want to thank Ms. Velazquez for always working with us-- usually working with us--in a bipartisan manner, and I want to thank all the members in the committee for doing that as well. Mr. Speaker, last week was National Small Business Week all across America. I like to call small businesses our biggest asset as a Nation. And because of the actions of this Congress and our President, small businesses are the most optimistic they have been in more than three decades. It is vital to our Nation's economy that these small businesses succeed. As technology evolves, so must our small businesses. Just as important as the ice cream shop on Main Street is the online startup company. We have an obligation to do everything we can to create an economy where all small businesses flourish, because a community that has successful small businesses thrives, and this is good for all of us all across the country. This leads us to the first piece of legislation before us today. Advances in information technology, or IT, have helped small businesses to rapidly increase their productivity, enter new markets, and offer consumers new and innovative services and products. However, IT has advanced so quickly that it has been difficult to keep pace with the ever-growing cyber threats. Unfortunately, small businesses are becoming increasingly targeted by cyber criminals. While larger companies have more resources to detect and combat cyber attacks, small businesses often do not learn they have been hacked until it is too late. As chairman of the House Committee on Small Business, I have heard too many firsthand accounts of this occurring. One story that stands out to me is the story of a small-business owner who owned an indoor go-karting facility in Maine and had a number of employees and their families who depended on it. He told our committee that he was struck by a phishing scam. He logged on to his business account, and, to his utter disbelief, his bank account was zero. This happened on a payday, no less. So all these people, who are depending on him to pay them, his bank account is zero because some hacker got into it. Stories like these are why Congressman Evans and I have introduced H.R. 3170, the Small Business Development Center Cyber Training Act of 2017. This bipartisan and bicameral legislation would establish a cyber counseling certification program in lead small business development centers, or SBDCs, to assist small businesses with planning and implementing cybersecurity measures to defend against cyber attacks. The cyber assistance offered by trained staff at SBDCs would be provided at no cost, or low cost, to small businesses. Cyber planning assistance will encourage small businesses to take a more proactive approach to defending themselves from cyber attacks by leveraging the expertise from SBDCs and their partner agencies and institutions, rather than being forced to react after an attack. When provided with the right resources, small businesses can be assured that they have an effective cyber plan in place. I would like to thank Mr. Evans for his collaboration on this bill, and I would urge my colleagues to support this bipartisan legislation. Mr. Speaker, I reserve the balance of my time.

Mr. CHABOT. Mr. Speaker, I yield as much time as he may consume to the gentleman from Kansas (Mr. Marshall).

Mr. CHABOT. Mr. Speaker, I yield such time as he may consume to the gentleman from South Carolina (Mr. Norman).

Mr. CHABOT

Mr. CHABOT. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 1702) to amend the Small Business Act to improve the small business development centers program, and for other purposes, as amended.

Mr. CHABOT. Mr. Speaker, I yield such time as he may consume to the gentleman from Kentucky (Mr. Comer), a very valuable member of the Small Business Committee.

Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, H.R. 1702, the Small Business Development Centers Improvement Act of 2018, will expand the resources available to America's entrepreneurs through the nearly 1,000 small business development centers, or SBDCs, located throughout the country. Mr. Speaker, I thank the gentleman from Pennsylvania (Mr. Evans) for introducing this bill. Over 99 percent of all businesses in our Nation are small, and those businesses employ nearly 60 million Americans. The U.S. economy depends on the success of small businesses. Providing support to entrepreneurs and small-business owners must be a priority for this Congress, and SBDCs offer that support. Small business development centers offer low- or no-cost business counseling and training to aspiring entrepreneurs and existing small- business owners alike. The support offered at these centers ranges from creating the first business plan, commercial advertising and branding, and navigating the international trade market. The importance of the assistance offered at SBDCs really cannot be overstated. In fiscal year 2017 alone, last year, SBDCs trained over 245,000 clients and advised over 188,000 individuals, resulting in the creation of over 14,000 new small businesses and the infusion of roughly $5.6 billion into the American economy. For every Federal dollar appropriated to the SBDC program, $43.50 in new capital was generated. The legislation we are discussing today will only serve to increase the impact of SBDCs. H.R. 1702 includes a number of commonsense updates to the SBDC program. This legislation will increase awareness of the technical and managerial training opportunities offered at centers by allowing SBDCs to market and advertise their products and services. This simple change can have a significant impact on our economy by ensuring that those entrepreneurs seeking to start or scale a business know where to turn for help. Additionally, H.R. 1702 will strengthen the SBDC accreditation process and ensure client information remains confidential. These changes facilitate the efficient and effective use of taxpayer dollars at every SBDC. Through H.R. 1702, this legislation, we will provide greater support to the men and women throughout our country who are working tirelessly to create jobs, enhance our communities, and support our economies. Mr. Speaker, I urge my colleagues to support this legislation, and I reserve the balance of my time.

Mr. CHABOT

Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, despite an improving lending environment, small businesses still face challenges financing their projects and their growth plans. Equity markets, which are regularly used by large businesses, often prove out of reach for the Nation's true job creators, small businesses. To bridge the equity gap that exists for small businesses, the SBA offers the Small Business Investment Company program, also known as the SBIC program. The program utilizes a privately owned, SBA-regulated and licensed model to deliver equity to the Nation's smallest businesses. While running at zero cost to the American taxpayer, the SBIC program creates a unique public-private partnership that translates into job expansion and job creation. In fiscal year 2017, SBIC financing supported more than 100,000 jobs all across the Nation--100,000 jobs, so this is an important program. However, the program can do more. With only about 300 SBICs currently operating in the United States, the program often does not geographically extend to those who truly need it the most. To address this problem, the gentlewoman from Washington (Mrs. McMorris Rodgers) introduced H.R. 4111, the Spurring Business in Communities Act of 2017, which expands the reach of the SBIC program by requiring the SBA to focus on areas that are underrepresented in the program as they review and license SBIC applications. I want to thank the gentlewoman for her leadership on this particular issue. She has definitely taken a very important and active role on it in looking for ways to expand the reach of the SBIC program. I urge my colleagues to vote ``yes'' on this commonsense reform within H.R. 4111, and I reserve the balance of my time.

Mr. CHABOT. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 4111) to amend the Small Business Investment Act of 1958 to improve the number of small business investment companies in underlicensed States, and for other purposes.

Mr. CHABOT. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days to revise and extend their remarks and include extraneous material on the bill under consideration.

Mr. CHABOT

Mr. CHABOT. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and include extraneous material on the bill under consideration.

Mr. CHABOT

Mr. CHABOT. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 1680) to amend the Small Business Act to improve the women's business center program, and for other purposes, as amended.

Mr. CHABOT. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days to revise and extend their remarks and include extraneous material on the bill under consideration.

Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise today in support of H.R. 1680, the Women's Business Centers Improvements Act of 2018, which was introduced by the gentleman from California (Mr. Knight), who is also the chairman of the Subcommittee on Contracting and Workforce and who has been a very active member of that committee for quite some time now. This legislation makes key updates to the Small Business Administration's Office of Women's Business Ownership and the Women's Business Center, or WBC, program. The WBC program provides grants to over 100 nonprofit organizations across the country to provide socially and economically disadvantaged women with technical and managerial training designed to meet the needs of women entrepreneurs. Many women's business centers offer training at night, or in multiple languages, to ensure that all women have the small business knowledge, tools, and support they need when creating or sustaining a business. Last year, WBCs trained over 114,000 clients and advised over 26,000 individuals. This training and counseling contributed to the creation of more than 17,000 new small businesses in the United States. Clearly, the Women's Business Center program has a profound impact not only in our local communities, but also on our Nation's economy overall. H.R. 1680 authorizes the WBC program, requiring specific conditions for participation and application criteria for organizations seeking a WBC grant. While many of these requirements have been met in practice, the inclusion of these standards in statute allows for increased congressional oversight and program confidence. H.R. 1680 also increases the WBC grant award to reflect inflation. This minor increase provides new and existing women's business centers with the support they need to provide an effective course curriculum to small business clients. Additionally, H.R. 1680 requires the SBA to establish a WBC accreditation program. This program, similar to the successful small business development center accreditation program, will ensure pragmatic consistency among WBC locations and guarantee that each center is providing women entrepreneurs with effective training opportunities. These updates will ensure that the funds supporting the WBC program are used efficiently and to foster economic growth. H.R. 1680 is an important step to ensuring that the more than 11.6 million women-owned small businesses continue to grow and that the next generation of women entrepreneurs have the opportunity to pursue business creation. For that reason, I urge my colleagues to support H.R. 1680. Mr. Speaker, I reserve the balance of my time.

Mr. CHABOT. Mr. Speaker, before I turn it over to the gentleman, the principal sponsor of the bill, I want to thank our colleague Mr. Lawson for his work on this bill as well. Again, we have been bipartisan, Republican and Democrat, working together to advance, in this case, women entrepreneurs all across the country. Mr. Speaker, I yield such time as he may consume to the gentleman from California (Mr. Knight), the chairman of the Subcommittee on Contracting and Workforce.

Mr. CHABOT

Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume. In closing, this legislation provides a level of certainty for small businesses who contract with the Federal Government. It is a commonsense, bipartisan bill that benefits small firms and ought to improve efficiency within the Federal contracting arena. Mr. Speaker, I again thank Ms. Velazquez for her work in a bipartisan manner on this legislation. Mr. Speaker, I urge my colleagues to support this bill, and I yield back the balance of my time.

Mr. CHABOT. Mr. Speaker, before I yield to the principal sponsor of this legislation, Mr. Bacon, I would like to thank my colleague Steve Knight from California for working on this as well; and also Al Lawson from Florida, and also Stephanie Murphy from Florida. So we have two Republicans and two Democrats again working together on this on behalf of small businesses all across the country, and I want to thank all four of those Members for their leadership on this on both sides of the aisle. Mr. Speaker, I yield such time as he may consume to the gentleman from Nebraska (Mr. Bacon).

Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume. I thank Mr. Bacon for introducing this good government legislation. It is a protransparency bill, and it addresses an often overlooked problem facing small Federal construction contractors. He has been a leader on this issue, and we appreciate that very much because it is an important bill. Our Federal Government spends billions of dollars on construction annually, an industry that is critical to rebuilding our Nation's aging infrastructure. Small businesses are the lifeblood of construction, performing in various roles across the entire supply chain. Unfortunately, no construction project is immune to change. Contract modifications or change orders are prevalent in construction contracts--in fact, in virtually all construction contracts. The issue arises when the Federal agency delays executing a change order or issuing payment for the work completed. This leaves the small contractor responsible for financing the work out-of-pocket while also paying for overhead costs. Extended delays in payment can result in severe financial consequences, sometimes including bankruptcy for small contractors. Agencies currently do not publish information regarding their contract modification processes or payment records, leaving contractors basically in the dark. Without this information, small prime contractors and subcontractors take an enormous risk every time they submit an offer with an agency that may be acting in less than good faith. Furthermore, small contractors are often unable to develop accurate bid prices if they choose to risk working with the agency. To offset the risk of delayed or nonpayment, contractors may inflate the cost of their bids, passing on these costs to the taxpayer. Due to the lack of transparency promoting a high-risk, high-stakes environment, working with the Federal Government becomes less appealing. Small contractors are leaving the marketplace in favor of private sector projects, which reduces competition. This bill, Mr. Bacon's bill, takes a critical step forward by requiring the contracting agency to disclose, in their solicitations, the details of their change order procedures, as well as a historical record showing whether change orders are resolved in a timely manner. Contractors can use this information to decide, first and foremost, if they want to bid; and if so, they can formulate more realistic cost estimates and better prepare for delays in payment. This bill, Mr. Bacon's bill, should also encourage agencies to improve their own internal change order processes, making the Federal construction marketplace attractive again. Ultimately, this legislation will result in expanding the industrial base, improving transparency and government accountability, and ensuring that high-quality structures are built at a reasonable cost. Mr. Speaker, I urge my colleagues to support this bipartisan legislation, and I reserve the balance of my time.

Mr. CHABOT. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 4754) to amend the Small Business Act to provide prospective construction contractors with information about an agency's policies on the administration of change orders to allow such contractors to make informed business decisions regarding the pricing of bids or proposals, and for other purposes.

Mr. CHABOT. Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days to revise and extend their remarks and include extraneous material on the bill under consideration.