Nydia Velázquez

Ms. VELAZQUEZ

Ms. VELAZQUEZ. Madam Speaker, may I inquire of the time remaining?

Ms. VELAZQUEZ. Madam Speaker, I yield 2 minutes to the gentleman from New Mexico (Mr. Lujan).

Ms. VELAZQUEZ. Madam Speaker, I rise in opposition to the bill before us today. As we begin the 112th Congress, it is unfortunate that one of the first bills before this body is more about politics than policy. This bill will not help a single small business secure a loan, open a new market for its products, or invest back in its operations. By their own admission, the other side acknowledges this legislation is going nowhere. It is ironic this grandstanding occurs when health insurance continues to be a top challenge facing small businesses. Over the last decade, small employers have seen their premiums rise by over 114 percent with no sign of relief. It is hard to imagine how repeal will help small businesses. In fact, it could do significant harm. The bill before us today imposes a $40 billion tax increase by eliminating critical small business tax credits. These have already helped reduce costs and increased coverage rates by nearly 12 percent in the past year. Repeal would also eliminate choices for entrepreneurs. Currently, in the majority of States, the two largest insurers had a combined market share of 70 percent or more. By doing away with reforms that establish new health insurance markets, it will limit small businesses' ability to secure coverage. Small businesses already pay 20 percent more than their corporate counterparts, and the loss of new safeguards will compound this problem. Because of health reform, insurers are no longer able to raise rates arbitrarily without explaining why. They cannot deny coverage based on a preexisting condition or because an employee gets sick. Passage of this bill would also strip new protections that provide small businesses bargaining power. We have heard how important reforms were excluded from the original legislation. They say that for this reason, the House will start from scratch and enact a new health care law. However, when Republicans were in control of both Chambers and held the Oval Office, they talked about these solutions for nearly a decade, and yet nothing happened. In the meantime, small businesses saw their employees' premiums rise by an average of $700 every single year. These small businesses now pay nearly $14,000 for a policy that cost $6,500 in 2000. Why should small businesses believe they can deliver on a promise this time? While our economy has added nearly 400,000 jobs over the past 3 months, more must be done. We must continue to confront the problem of health coverage for small businesses, but voting for today's bill will not do that. I urge Members to oppose the bill, and I urge the new leadership to focus on meaningful ways to address this Nation's economic challenges. I reserve the balance of my time.

Ms. VELAZQUEZ. Madam Speaker, in the State of South Carolina as a result of this repeal legislation, small businesses in the State of South Carolina will see a tax increase of $540 million. I yield 2 minutes to the gentleman from Rhode Island (Mr. Cicilline).

Ms. VELAZQUEZ. Madam Speaker, I reserve the balance of my time.

Ms. VELAZQUEZ. Madam Speaker, I yield 2\1/2\ minutes to the gentlewoman from California (Ms. Roybal-Allard).

Ms. VELAZQUEZ. Madam Speaker, I continue to reserve the balance of my time.

Ms. VELAZQUEZ

Ms. VELAZQUEZ. Mr. Speaker, I rise in strong support of the DREAM Act because of young people like Carol from New York City, so that she and others can fully contribute to America, the country they call home. Today, more than one million young people residing in our nation live in fear of deportation. These individuals did not choose to come here illegally. Rather, their parents brought them as minors. Now, like generations of immigrants before them, they wish to help build a better America. They are not seeking a handout or giveaway. All that they ask is a chance to earn their citizenship. The question before us is simple--will we let them do their part or keep hiding them in the shadows? Passing this bill is not just the moral choice--it will also bring our nation enormous benefits. Today's broken immigration system drains talent from our workforce, keeping bright minds from achieving their full potential. Bringing these young people into the mainstream of American life will enhance our competitiveness in the global economy, in the long term. In the short term, as our Nation recovers from this downturn, entrepreneurship will be vital. Immigrants have a strong record of building new businesses, representing almost 17 percent of new ventures. By creating additional opportunity, the DREAM Act would further this tradition, spurring business growth among a new generation of immigrants. These students are the kind of leaders our country needs to thrive. Allowing them to pursue the American dream will mean a stronger economy and more prosperous future for all of us. Equally important are the contributions these future Americans will make serving society. In New York City, there is a young woman named Carol, whose lifelong goal has been teaching. Carol was the first college graduate in her family, paying her own way by working two jobs. Upon graduation, she was accepted into a New York teaching program that certifies candidates, while letting them obtain a Master's Degree. Because Carol's parents brought her here at age six, she is prevented from joining the program--or becoming a teacher. Carol's story is too common. For the thousands like her--who are yearning to serve this nation and become American--we must pass this bill. Mr. Speaker, childhood immigrants are American in nearly every way. They grew up our neighbors, attending U.S. public schools. We've already invested in the education and upbringing of these kids. With this bill, we will see a return on that investment, as the best and brightest earn their place in the American dream. I urge my colleagues to vote yes. Announcement By the Speaker Pro Tempore

Ms. VELAZQUEZ

Ms. VELAZQUEZ. I want to thank the gentleman for yielding. Mr. Speaker, as is often the case with disasters, on 9/11 and in the weeks that followed, the best of America was on display. Neighborhoods came together to comfort and support one another. Communities in every corner of the country rallied together. In New York City, our brave first responders answered the call valiantly, putting their lives at risk to protect the rest of us. Over the last 9 years, the full scope of this tragedy's health effects has become increasingly clear. Firefighters, police officers, EMTs, and rescue workers are all suffering respiratory problems. Even schoolchildren and those who work in the area have exhibited health problems. It is estimated that 36,000 people have sought treatment after being exposed to the toxic dust at the World Trade Center site. It is not just New Yorkers who are affected. Ten thousand people traveled from every State of the Union, including Puerto Rico and the territories, to assist in the aftermath of these attacks. Like all of America, these heroes were a diverse group, representing every age, race, religion, and even status. No one asked them for their citizenship status when they stepped in to help. They were all there, and they were all heroes. This legislation will provide needed benefits for all those who are suffering from the toxins they were exposed to. This is the right thing to do. These brave individuals cast aside their own safety to assist their fellow human beings.

Ms. VELAZQUEZ

Ms. VELAZQUEZ. 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.

Ms. VELAZQUEZ. Mr. Speaker, I move to suspend the rules and pass the bill (S. 3839) to provide for an additional temporary extension of programs under the Small Business Act and the Small Business Investment Act of 1958, and for other purposes.

Ms. VELAZQUEZ. I yield back the balance of my time.

Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, the role of small businesses in moving the economy forward has never been more important. Making up over 99 percent of all U.S. firms, they are critical to innovation, wealth creation, and, most importantly, employment gains. As the economy continues to show signs of resurgence, we need to make certain that entrepreneurs have the right tools to make the most out of the recovery. The legislation before us extends the authorization of the several important Small Business Administration programs which are key to supporting entrepreneurs across the country. Through the agency's initiatives, entrepreneurs are able to get a loan, secure a federal contact, and receive expert technical assistance. The SBA is unique in that many of its programs work through resource partners. These partners, including training centers and community banks, are essential to the delivery of the agency's services to the small business community. Through this public-private network, entrepreneurs are able to gain access to resources nationwide with the knowledge that the SBA stands behind these tools and services. This combination is a powerful one for small businesses, and it is the reason we need to extend the agency. In the House, we have passed 14 bills since the beginning of the 111th Congress. However, because we have not completed work with the Senate on these matters, we must extend the SBA's programs. This legislation will make certain that the SBA keeps operating. We cannot afford any of these services to lapse just as our recovery is getting off the ground. I urge my colleagues to vote ``yes,'' and I reserve the balance of my time.

Ms. VELAZQUEZ

Ms. VELAZQUEZ. Madam Speaker, I yield myself such time as I may consume. Madam Speaker, small businesses have always been a critical component of the U.S. economy, and that is not different today. Generating nearly two-thirds of net new jobs over the past 15 years, they are not only the primary catalyst for employment growth but also for our Nation's underlying prosperity. Through the years, we have relied on our strong culture of entrepreneurship and innovation to renew us and make us stronger. Today, small firms face different challenges than in the past. As a result, there will be different solutions. The policies that we adopt today must be carefully crafted to meet entrepreneurs's current needs. Unfortunately, the legislation we are considering today do not provide the protections that we need to make sure that small businesses have access to affordable capital. We have seen the power of small businesses to pull us forward before. During the recession of the early 1990s, small businesses provided an economic lifeboat and created approximately 3.8 million jobs. This fueled the recovery then, while also planting the seeds for growth later in that decade. Back them it was the dot-coms and the Internet revolution at the forefront of the recovery. Today, we see entrepreneurs embracing green technologies and alternative energy. Small firms are fabricating solar panels, developing fuel cells, and researching innovations in building materials. These green firms add $933 billion to the economy each year and employ more than 11 million workers. By 2030, the number is expected to reach 40 million employees, or 25 percent of the American workforce. In the next decade, this will be the foundation for growth and job creation. Once again, it will be small firms leading the way. While these cutting-edge firms are critical to the future, we also must recognize the importance of established firms. These local businesses, the mom and pops and the local storefronts, provide employment to millions of individuals and anchor our communities. For many, the economic recovery that has begun in recent months is long overdue. Now, more than ever, we need to make sure that the environment is conducive to the success of both new and established businesses. For some, this means reducing the regulatory burden or providing tax relief. For others, it requires greater access to affordable capital or entrepreneurial assistance. Most important, we must get this mix right and avoid enacting policies that do not meet entrepreneurs' needs. Whatever policies we choose, whether it be the legislation under consideration today or future proposals, it is crucial that we continue to embrace the power of our Nation's small businesses. Doing so will create badly needed jobs in the short term, while laying the framework for a long-term, sustainable period of growth. I yield back the balance of my time.

Ms. VELAZQUEZ

Ms. VELAZQUEZ. Madam Speaker, pursuant to section (c)(2)(C) of H. Res. 1493, the Small Business Committee has taken steps to ``identify changes in law that help achieve deficit reduction by reducing waste, fraud, abuse, and mismanagement, promoting efficiency and reform of government, and controlling spending within Government programs'' that fall within the Committees' legislative jurisdiction. With the economy beginning to show promising signs of recovery, it remains imperative that Congress and this Committee effectively oversee that taxpayer funds are used effectively. This includes not only terminating duplicative programs, but also taking steps to eliminate wasteful practices in federal agencies. The Committee has taken its oversight role very seriously. H. Res. 40, which was passed at the beginning of this Congress, amended Clause 2(n) of House Rule XI by requiring that committees undertake intensive and regular examination of executive branch activities. We have exceeded the 1 hearing per 120 day requirement under H. Res. 40 and held 10 hearings on the Small Business Administration (SBA) and its programs. This has included 4 Government Accountability Office (GAO) investigations, all of which were requested by this Committee. As a direct result of these oversight activities, the Committee makes the following recommendations pursuant to H. Res. 1493: 1. Termination of Patriot Express Loan Program: The Increased Veteran Participation Program contained in P.L. 110-186, the Military Reservist and Veteran Small Business Reauthorization and Opportunity Act of 2008, provides a more suitable financing alternative for veteran-owned small businesses than the Patriot Express Loan program. In particular, the program established in P.L. 110-186 provides for a higher guarantees, larger loan sizes, and reduced fees than the Patriot Express pilot program currently operated by the SBA. For this reason, the Committee recommends the termination of the Patriot Express initiative because the alternative program established in P.L. 110-186 will better serve veteran entrepreneurs. 2. Termination of SBA Express Loan Program: Given increasing defaults and the projected costs associated with the SBA Express program, the Committee recommends that this program be immediately terminated. The initiative has grown costly and does not satisfy any public policy goal, making it a poor use of scarce taxpayer funds. With a reduced guarantee of only 50 percent, the SBA Express Loan program fails to provide a sufficient incentive for lenders to make loans that they would otherwise not make. 3. Termination of the HUBZone Program: In the last three years, GAO has found that the program was continually subject to widespread fraud and mismanagement. The program places taxpayer funds at substantial risk for fraud, waste, and abuse. Given the high frequency of fraud, legitimate small business contractors are placed at a distinct disadvantage due to the continued operation of this program. As a result, the Committee recommends that it be terminated. 4. Termination of the Emerging Leaders Initiative: While the goals of this program are justifiable, the Committee is concerned about the effectiveness and efficiency of the initiative due to its program design and past performance. As a pilot program, the initiative failed to demonstrate the capacity to generate a significant economic impact despite the large share of resources allocated to it. This program only produced 132 jobs at a cost of $800,000--an average of cost of $6,000 per job created. This amount is almost twice as much as the job creation cost of the Small Business Development Center program, which costs $3,500 to create one job. In addition, this program is duplicative of SBA's extensive network of entrepreneurial development providers. As a result, the Committee recommends that it be terminated. 5. Termination of the Regional Innovation Clusters Initiative: The Committee has major concerns over the design of the regional cluster program. Although the program's goal is to target significant resources to regional industry clusters, the institutional framework to implement the proposal has not been clearly established. Plans for the allocation of resources, partnership agreements among local, private, and federal service providers in the targeted areas, and decision-making coordination remain unclear. In addition, the program lacks a specific implementation strategy, has inadequate federal oversight over the allocation of resources, and does not contain sufficient performance measures to determine its success. Due to these limitations, there is significant concern over abuse of thirds for this initiative. As a result, the Committee recommends that this program be terminated. 6. Termination of the National Veterans Business Development Corporation: This Corporation was created to provide training and entrepreneurial development services to veterans. Unfortunately, it has not reached its full potential and the American Legion and Veterans of Foreign Wars have called for its termination. Given concerns that the organization is insufficiently fulfilling its purpose to provide comprehensive assistance to separating members of the nation's military forces, the Committee has authored and the House passed an alternative program in H.R. 1803, the Veterans Business Center Act of 2009. This legislation establishes a dedicated national network to deliver the services more efficiently than the Corporation. The Committee's commitment to promoting veteran entrepreneurship remains strong. Therefore, it is critical that assistance programs to the sector are effective and that veterans have access to these resources so they can establish successful enterprises in all stages of the economy. 7. Termination of the Drug-Free Workplace Program: The Drug-Free Workplace program was originally created to assist small firms in the implementation of a plethora of substance abuse counseling and training activities. This included creating workplace drug policies, drug prevention training and education seminars, providing for drug-testing, and counseling employees on substance abuse. Instead, the program has evolved into a subsidy solely for drug-testing centers, a private industry that does not warrant funding from the SBA, an agency whose mission is to promote and assist small businesses. Given the financial challenges facing the government, it is not prudent to use scarce taxpayer funds to purchase drug-testing services from and for viable private sector companies. As a result, the termination of program funding is appropriate due to the lack of meaningful returns on the public investment. 8. Termination of the National Women's Business Council (NWBC)--The NWBC mandate is to conduct research on women entrepreneurship, which is duplicative of the research work of the SBA's Office of Advocacy. Having two research entities conduct similar research is unnecessary and the NWBC funding should be terminated. The Office of Advocacy is the appropriate entity to conduct all entrepreneurship-related research as it benefits from both economies of scale and scope in its organization structure and staff capabilities. In the last 18 months, small businesses have increasingly turned to the SBA for assistance. This has helped stem job losses and, in some parts of the country, created pockets of new growth. As a result, we are now beginning to see signs of strength, as private sector jobs continue to be added. To this end, the National Association for Business Economics recently found that 31 percent of companies added jobs between April and June, the highest level since 2007. Additionally, 39 percent of businesses surveyed reported that they expect to hire more workers over the next six months, which is the most since January 2008. Such growth is promising and it suggests that the business climate is becoming ripe for the establishment of new firms. This means that the SBA needs to be prepared to help these firms succeed, while also containing its costs. The Committee's proposals, if implemented, will accomplish this by reducing the federal deficit, curtailing fraud, and enabling the SBA to focus on its most important and successful programs. By increasing efficiency, the agency's existing tools and resources can be improved, without imposing additional costs on the taxpayer. This is a means to not only act in a fiscally prudent manner, but also a way to meet the needs of our nation's small businesses.

Ms. VELAZQUEZ

Ms. VELAZQUEZ. I yield back the balance of my time.

Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may consume. In every previous recession, small businesses have been central to our economic recovery. The Small Business Administration has an important role to play in giving businesses tools they need to succeed. Technical assistance programs operated by the SBA provide critical expertise in everything from writing a business plan, to finding new customers, to marketing a product. While our Nation's financial landscape has improved, many small firms cannot find the financing they need. To bridge this gap, the agency's lending programs put over $15 billion into the economy, making them the single largest source of long-term capital. So that entrepreneurs can better tap into the Federal marketplace, there is also assistance to help businesses navigate our government's procurement process. Taken together, this portfolio of services can empower small businesses to create new jobs and accelerate our recovery. Since the start of this Congress, the House has passed 16 bills to strengthen and modernize the SBA initiatives. However, before these programs are fully updated, they must be extended. This legislation ensures these programs keep operating. I urge my colleagues to vote ``yes.'' I reserve the balance of my time.

Ms. VELAZQUEZ. 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.

Ms. VELAZQUEZ. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 5849) to provide for an additional temporary extension of programs under the Small Business Act and the Small Business Investment Act of 1958, and for other purposes.

Ms. VELAZQUEZ

Ms. VELAZQUEZ. Mr. Chairman, I didn't know that the other side liked TARP so much that you want to keep it going. We have put safeguards, penalties, restrictions, oversight in place. This is another bureaucratic layer that will hinder the needs of small businesses to access capital.

Ms. VELAZQUEZ. Would the gentleman from Massachusetts yield?

Ms. VELAZQUEZ

Ms. VELAZQUEZ. I thank the gentleman for yielding. Mr. Chairman, my colleagues, we have spent much of this debate discussing ways to help the banks, but now it is time that we talk about helping small businesses directly. The Schrader amendment does this by providing entrepreneurs with incentives to expand their businesses. It does so by giving business owners maximum flexibility because they know best how to purchase equipment or to hire workers when they need to do so. If we have this tool now, during the early stages of the recovery, it will allow manufacturers to purchase the new machine tools they need, and it will allow retailers to hire a few more salesmen. As they have created two-thirds of the net new jobs over the past 10 years, it is absolutely critical to get small businesses off the sidelines. Unfortunately, the Federal Reserve Senior Loan Officer survey continues to report that loan demand among small firms has decreased. The most recent NFIB report also confirms this. Only 32 percent of small businesses borrowed last quarter, which is near the record low. When fewer small businesses take out loans, there is less employment and more abandoned storefronts. By giving firms access to a financial backstop, the Schrader amendment will give them the confidence to turn this around. With this in mind, it is no surprise that, when small firms are not active in the capital markets, we lose jobs. This is exactly what happened between 2007 and 2009 when self-employment declined by 7.5 percent. If we do not want to repeat this, we must embrace the small business-focused policies contained in the Schrader amendment. I ask my colleagues to support Mr. Schrader's amendment.

Ms. VELAZQUEZ

Ms. VELAZQUEZ. I thank the gentleman for yielding. Mr. Chairman, since the financial crisis struck in 2007, much has already been done to help banks and financial institutions stay solvent. Those steps were necessary. I firmly believe that without them, the financial crisis would deepened, unemployment would have been higher, more Americans would have suffered, and our economic recovery may have been delayed for many years. Despite these efforts, our entrepreneurs are still struggling to tap into the credit they need. As we revisit this problem once more, it is vital that we ensure that the benefits of this bill reach small businesses. That is the intent of this legislation. But without the right safeguards, this will be another attempt that fails to address the underlying problem of small business access to capital. If this measure is not crafted properly, loans which go to large businesses could qualify under the program. Mr. Chairman, I support this amendment.

Ms. VELAZQUEZ. America's small businesses have always pioneered new economic fields and sectors. Today, small businesses continue to be some of our most creative innovators. As our Nation shifts away from the fossil fuels and seeks clean sources of energy, entrepreneurs are leading the way. Today, small businesses represent 90 percent of those companies operating in the renewable and energy efficiency industries. Small firms are also making important contributions in the realm of life sciences and biomedicine, uncovering groundbreaking therapies and medicines. Technologies used in our national defense have also been advanced by small businesses. Components of the Predator drone, for instance, were developed by small firms. And small businesses are helping develop new information technology and digital media services that better connect our world. The United States must continue to lead in all these areas if our economy is to remain strong in the long term. This type of innovation creates good-paying, highly skilled jobs. However, before these businesses can develop the next game-changing defense technology, unearth the next medical breakthrough, or discover a new source of clean energy, they need capital. The amendment before us simply ensures that the Small Business Early-Stage Investment program is targeted to fields like these, where there will be the biggest payoff for economic growth and job creation. Madam Chair, this is a good amendment. It will ensure the industries of tomorrow and future companies can secure financing to get off the ground. I urge my colleagues to vote ``yes.'' I yield the balance of my time to the gentleman from Missouri (Mr. Graves).

Ms. VELAZQUEZ. Mr. Chairman, I yield myself the balance of my time. Mr. Chairman, the face of American small business is changing--and rapidly. Twenty years ago, entrepreneurs were likely to rely on loans and credit cards to start up or expand their businesses. This met the needs of most entrepreneurs, but today's startup costs have grown dramatically. This has caused many small companies to turn to equity investment, particularly those in high-growth, technology-based sectors which show the greatest promise to create new jobs. For these firms, their assets are not buildings or machinery; they are people, ideas and skills. For this new generation, the old method of securing capital, through debt, is no longer sufficient by itself. In a world where revolutionary new products are conceived in dorm rooms, and companies are launched in garages, new ways of meeting businesses' capital needs are needed. Through the Small Business Early Stage Investment program, this bill recognizes this fundamental shift and takes steps to meet the capital needs of our new businesses. Our Nation's entrepreneurs have led us out of every previous recession, and they can do so again, but only if we give them the right tools. This legislation will make loans more affordable for existing businesses so they can grow and add to their payrolls. And for the enterprises just getting off the ground, it will reinvigorate investment in cutting-edge startups. A vote for this bill is a vote in favor of the American traditions of innovation and entrepreneurship. I urge my colleagues to vote with the small businesses in their district; vote ``yes.'' I yield back the balance of my time.