Nydia Velázquez

Ms. VELAZQUEZ

Ms. VELAZQUEZ. Mr. Speaker, I thank the gentlewoman from California for yielding. As we take this week to honor our Nation's small businesses, it is important to notice the everyday challenges that are standing in their way. As the main job creators and stimulators of the economy, there are far too many obstacles that still remain. Small businesses have received a number of promises over the last 4 years. But as the ranking member on the House Small Business Committee, I can tell you that what entrepreneurs need now is no more rhetoric. What they need is more action. Unfortunately, rhetoric is all that they have gotten up to this point. One of the most obvious challenges is that a number of small businesses are not able to access health care. Six out of every 10 uninsured families are headed by a small business employee. This is simply unacceptable. Yet Congress has passed no solutions to the health care crisis. My colleagues on the other side love to talk about how many times this House has passed association health plans. The bottom line is that Republicans control the White House, the Senate, and the House of Representatives. How many more times do we have to pass association health plans to get it done? Stop the rhetoric. What we need is action. With the skyrocketing prices of gas and energy, small businesses are having an even more difficult time starting and expanding their ventures. Just last week the House passed an energy bill that does not do anything to help this Nation's small businesses. For the small business owner that works in the transportation industry, this bill has done nothing to help reduce the record highs in gas prices we are seeing today. Compounding entrepreneurs' difficulties even further are regulatory burdens. Too often a small business owner does not have the resources to comply with a number of Federal regulations. Despite the promises made by this administration, small firms have seen little relief. The reality is that this administration holds the record for the single largest increase in paperwork burden in 1 year in our Nation's history. Again, the rhetoric needs to end. Our Nation's entrepreneurs deserve to see some real action, some real solutions. And as we honor our Nation's entrepreneurs this week for National Small Business Week, all Congress is going to give them is this legislation, the Small Business Bill of Rights. Let me tell you, this Nation's small businesses deserve much more than some rhetoric included in House Resolution 22. And that is all this bill does. They deserve to be assured that Congress will work to address their challenges, that we will go on the record listing the priorities we will work to address for their businesses. Sadly, that is not what House Resolution 22 does. Yes, the Small Business Bill of Rights contains some lofty rhetoric on taxes, regulations, and capital. But what it fails to do is really recognize the fact that small businesses do not get capital the same way that large businesses do. Small firms cannot head over to Wall Street. Instead, they rely heavily on loan programs. To tell them that loan programs are not important is disingenuous. House Resolution 22 also says that some contract bundling is okay and that is okay for small businesses to lose out on contracting opportunities. The Small Business Committee has always been on the record protecting small businesses. Every economic analysis and indicator says that contract bundling is bad. Yet, this bill wants to say it is okay. Most upsetting is that House Resolution 22 mentions absolutely nothing about the needs of minority and women business owners, the fastest growing sectors of our economy. This is despite the fact that the gentleman from Georgia (Mr. Barrow), the gentlewoman from Wisconsin (Ms. Moore), and the gentlewoman from California (Ms. Linda T. Sanchez) all tried to include these provisions in a markup in which the chairman of the committee blocked these amendments from even being offered. The gentleman from Florida (Mr. Keller) spoke about due process that was provided. What the gentleman does not tell you is that the chairman took the unprecedented step of moving the previous question. I will challenge any chairman to come to the floor and talk about when they moved the previous question to block the minority from offering amendments. They were then rejected again by the Rules Committee. Despite the overwhelming growth of minority- and women-owned businesses, this Small Business Bill of Rights tells them that their needs are not a top priority, and that is ridiculous. This is Small Business Week, and all we are giving to our Nation's entrepreneurs, the main job creators, are some promises in House Resolution 22. These promises are not helping to give small businesses more loans. They are not opening up the fair marketplace, and they are certainly are not giving small firms any solutions to the health care crisis. Maybe next time Congress can promise to help small businesses to pay their bills and again follow through with no action. This rhetoric needs to end. Our Nation's small businesses deserve much more than rhetoric this week. They deserve commitment and action all year long to address their challenges. Clearly, House Resolution 22 will not do that. We should vote down this rule, and we should not be passing promises without action in the House of Representatives.

Ms. VELAZQUEZ

Ms. VELAZQUEZ. Mr. Speaker, I offer a motion to recommit.

Ms. VELAZQUEZ. Mr. Speaker, I yield 2 minutes to the gentlewoman from California (Ms. Linda T. Sanchez).

Ms. VELAZQUEZ. Yes, in its current form.

Ms. VELAZQUEZ. Mr. Speaker, on that I demand the yeas and nays.

Ms. VELAZQUEZ. Mr. Speaker, I yield 2 minutes to the gentleman from North Carolina (Mr. Watt).

Ms. VELAZQUEZ. Mr. Speaker, I would like to inquire of the Chair how much time is remaining on both sides.

Ms. VELAZQUEZ. Mr. Speaker, I yield myself the remaining time. My colleagues have all heard about the challenges facing small business today during this debate. It has become very clear that House Resolution 22 will do nothing to address these issues, and it is nothing more than pure rhetoric. This resolution fails terribly in providing strong solutions and action items to help this Nation's small businesses. It also fails terribly in representing the needs of all sectors of the small business community. With all the respect due to the main sponsor of this resolution, 20 small businesses from his district do not represent 20 small businesses in my district, or 20 small businesses in any other Members' district. By voting for House Resolution 22, you are merely casting a blank ballot. This bill of rights is nothing more than empty promises to our Nation's small businesses. I am going to request a motion to recommit this bill back to the committee. By voting for this motion to recommit, you will be voting to give small businesses the opportunity to truly receive more capital through SBA lending programs and to protect them from free trade agreements. Most importantly, you will be voting to make the needs of women- and minority-owned businesses a true priority. These are critical provisions that need to be addressed. This resolution does not represent the needs of all our Nation's small businesses. In order to enhance House Resolution 22, I urge you to vote ``yes'' on the motion to recommit this legislation to the committee. And I urge you to vote ``no'' on final passage. Mr. Speaker, I yield back the balance of my time.

Ms. VELAZQUEZ. Mr. Speaker, I yield 2 minutes to the gentlewoman from Ohio (Mrs. Jones). (Mrs. JONES of Ohio asked and was given permission to revise and extend her remarks.)

Ms. VELAZQUEZ. Mr. Speaker, I ask unanimous consent for an additional 1\1/2\ minutes for myself.

Ms. VELAZQUEZ. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from Illinois (Mr. Davis). (Mr. DAVIS of Illinois asked and was given permission to revise and extend his remarks.)

Ms. VELAZQUEZ. Mr. Speaker, who was the right to close?

Ms. VELAZQUEZ. Mr. Speaker, I yield 3 minutes to the gentleman from Georgia (Mr. Barrow).

Ms. VELAZQUEZ

Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may consume. We are here today to consider legislation honoring the contributions of the heating, ventilation, air conditioning and refrigeration industries, a large segment of our small business constituency. Although we often fail to think about the relevance to our everyday lives, the impact of these industries and firms can be seen in every household across the Nation. This resolution honors the men and women that strive to improve the lives of Americans by providing quality services on a daily basis. This industry has helped to drive the economy by creating thousands of good-paying jobs every year. In 2002, heating, air conditioning and refrigeration mechanics and installers held nearly 250,000 jobs, and approximately 15 percent of these workers were classified as self- employed. The heating and cooling industry has also set the standard for creating innovative, environmentally safe products that help to preserve and strengthen our environment for future generations to enjoy. New technologies are constantly developed to ensure efficient energy use so that we can keep indoor environments safe and comfortable while protecting our outdoor environments. Without the modern conveniences and environmental advances the industry has developed, Americans would not have the means to enjoy the quality of life as we know it today. Clearly, given the unique contributions of the small businesses in this industry, it is only fitting that we find ways to recognize the exceptional work of these service men and women. In recognizing what they have brought to the table, we must also strive to equip the indoor cooling industries with the resources they need to succeed, including access to capital, reduction of regulatory burden, affordable health care, business development and technical assistance. Entrepreneurs in service industries across the board deserve our full support in ensuring that these programs and initiatives are utilized to their fullest potential. I would like to take a moment to recognize Tim Slattery and Allyson Ivans of the House Small Business Committee minority staff and Piper Largent of the majority staff for their work on this legislation. I would also like to commend the Air Conditioning Contractors of America. This organization has been instrumental over the years in demonstrating how vital their industry is to communities across the country. I am pleased to offer my support in designating the week of April 17- 23, 2005, as National Indoor Comfort Week. The heating, ventilation, air conditioning and refrigeration industries are deserving of our attention. I cannot overstate the important role that the small businesses in these industries have played in improving our health, safety and overall quality of life. Mr. Speaker, I yield back the balance of my time.

Ms. VELAZQUEZ

Ms. VELAZQUEZ. Mr. Chairman, I yield myself such time as I may consume. (Ms. VELAZQUEZ asked and was given permission to revise and extend her remarks.)

Ms. VELAZQUEZ. I thank the gentleman. Mr. Chairman, I yield back the balance of my time.

Ms. VELAZQUEZ. Mr. Chairman, I really appreciate the gentleman's support of this amendment. I would say that it does not surprise me that the Department of State would raise a concern because they are the worst offenders when it comes to fulfilling the statutory goals set by Congress regarding contracting practices on behalf of small businesses in our Nation. I would love to see that the gentleman work with me on behalf of small businesses and make sure that in this $81 billion there is small business participation. They can do the work and they can do it more effectively than many of the large corporations that are mismanaging and misappropriating much of the money that has been spent so far.

Ms. VELAZQUEZ. Gracias. I am sorry. I thought this was English-only here.

Ms. VELAZQUEZ. I yield to the gentleman from California.

Ms. VELAZQUEZ. Mr. Chairman, Federal contracts for overseas work have increased substantially over the last several years. This rapid increase in government buying is largely the result of the war in Iraq and combating terrorism. Since the spring of 2003, Congress has appropriated close to $200 billion for operations in Iraq and Afghanistan. The supplemental appropriations bill we are considering today provides an additional $81 billion. Much of this funding will be spent on contracts for overseas work, and most of these contracts will be awarded to large corporations. Unfortunately, while 23 percent of contracting dollars spent domestically must include small businesses, there is no requirement that small companies have access to the bulk of overseas contracts. My amendment would change that by requiring that small businesses have access to international contracts just as they do for domestic work. Federal agencies currently do not include overseas contracts when calculating their small businesses goals. Therefore, there are no means of holding agencies accountable for providing U.S. small companies with access to international work. As a result, only 1 percent of government overseas contracts are awarded to small companies, and barely 500 of the more than 23 million U.S. small businesses are performing work abroad. By requiring that contracts funded by this bill are calculated in the Federal Government's small business goals, we start to instill credibility in the system while ensuring that small firms receive their fair share. These goals were enacted to ensure small business participation in the Federal marketplace. However, the Federal Government has failed to meet its small business goal in each of the last 5 years. In one year alone, this failure cost U.S. small businesses over $15 billion in lost contracting opportunities. We have a lot to make up for with our Nation's small business owners. We can start by ensuring that they have access to overseas contracts. Mr. Chairman, there are 23 million small businesses in the United States. They represent 99 percent of all employers, create three out of four new jobs, and employ more than half of all private sector workers. Historically, when the government has needed to build up for military operations, it has turned to small businesses to fulfill its procurement needs because of their flexibility and quick response time.

Ms. VELAZQUEZ. Mr. Chairman, I offer an amendment.

Ms. VELAZQUEZ

Ms. VELAZQUEZ. Mr. Chairman, I demand a recorded vote.

Ms. VELAZQUEZ. Mr. Chairman, I offer an amendment.

Ms. VELAZQUEZ. Mr. Chairman, I yield myself such time as I may consume. (Ms. VELAZQUEZ asked and was given permission to revise and extend her remarks.)

Ms. VELAZQUEZ. Mr. Chairman, for many unemployed workers, starting a small company provides opportunities for career growth and financial success. But the lack of access to capital prevents many entrepreneurs from starting their own business. The Small Business Administration's 7(a) loan program is a critical source of capital for small businesses, providing 30 percent of all long-term loans to U.S. entrepreneurs. Despite the success of the 7(a) loan program, the Bush administration has repeatedly underfunded it, implemented a series of caps, imposed burdensome restrictions, and shut down the entire program. In the latest attack on October 1, the President doubled the fees that small businesses must pay to receive a 7(a) loan. These new up-front fees are limiting the number of small businesses that can afford 7(a) loans. For a loan of $150,000, an entrepreneur must now pay nearly $3,000 in up-front fees, a significant cost for someone trying to start a company. These higher costs have significantly reduced small business use of the 7(a) program, as loan volume has decreased by $500 million since the new fees were implemented. The impact has been so great that this January the SBA made fewer loans than when the administration shut down the entire program last January. President Bush was wrong when he increased the burden entrepreneurs face in accessing capital. This amendment acknowledges the shortsightedness of that decision. It affirms that new fees on 7(a) loans are hurting small businesses and demonstrates congressional support for using Federal funding to cover the cost of these fees. A vote for this amendment is a vote against the Bush administration's policy raising the fees on 7(a) loans. It is a vote for our Nation's up-and-coming small business owners. I have serious reservations about Personal Reemployment Accounts, as they will place severe limits on the amount of training an unemployed worker can receive. However, if Congress is going to establish Personal Reemployment Accounts, then we should provide entrepreneurs with the opportunity to use these resources to secure the capital needed to start small businesses. Unemployed workers should be allowed to use these funds in their accounts to pay for the cost of the 7(a) loan fees, and that is exactly what my amendment will do. Given President Bush's commitment to creating an ownership society, I am surprised there are not more provisions in this bill to help unemployed workers own small businesses. The goal here is help reduce high unemployment, create a strong workforce, and boost our economy. This cannot be achieved without a stronger commitment to our Nation's entrepreneurs. After all, it was laid-off managers launching their own small businesses that turned our economy around during the last recession. We need a revival of entrepreneurship in this country that will spur more job creation and grow our economy. To do this, we must take advantage of every opportunity to ensure that capital is accessible and affordable for all start-up small business owners, and we must make it clear that President Bush is failing our Nation's entrepreneurs. This amendment is one of those opportunities, and I urge my colleagues to support it. Mr. Chairman, I reserve the balance of my time.