Full Committee Markup

Committee on Small Business

2025-11-18

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Source: Congress.gov

Summary

The committee convened to mark up seven significant bills aimed at supporting small businesses across the nation, fostering innovation, growth, and competitiveness in the evolving economy [ 00:27:06 ] . The bills addressed various aspects of small business support, from access to capital and emerging technologies to regulatory oversight and employee ownership [ 00:27:29 ] .

Themes

SBA 504 Loan Program Reforms

The committee discussed two bills related to the SBA's 504 loan program. The Main Street Parity Act (H.R. 5763) seeks to eliminate an outdated "special use penalty" that required certain businesses, such as bowling alleys or doctor's offices, to contribute an extra 5% down payment on 504 loans, making their total 15% instead of the standard 10% . Proponents argued that these businesses perform well and pose no greater risk, making the additional equity requirement unnecessary and unfair . This bill was described as a common-sense, non-partisan fix to promote fair economic growth by lowering equity barriers .

The 504 Program Risk Oversight Act (H.R. 5788) mandates that the SBA conduct an annual risk assessment of the 504 CDC program and provide Congress with a detailed report . This legislation aims to enhance transparency and oversight, ensuring the program's long-term health and the protection of taxpayer dollars, especially as businesses undertake larger and more complex projects .

Artificial Intelligence for Small Businesses

Two bills focused on integrating Artificial Intelligence (AI) into small business operations. The AI for Main Street Act (H.R. 5764) directs Small Business Development Centers (SBDCs) to offer guidance, training, and outreach to help small businesses evaluate and adopt AI . The bill acknowledges that the "AI revolution is already here" and aims to ensure Main Street businesses are not left behind due to limited resources or lack of training .

The AIWISE Act (H.R. 5784) requires the SBA to develop AI literacy resources specifically tailored for small businesses and delivered through its e-learning platform . This initiative seeks to empower entrepreneurs with clear, actionable information on leveraging AI for tasks like automating operations, improving customer service, and making data-driven decisions [ 01:11:39 ]

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. The legislation emphasizes coordination with entities like the National Institute for Standards and Technology (NIST) and advisory groups to create comprehensive educational tools [ 01:11:23-01:11:36 ]

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Small Business Access to Microloans

The Northern Mariana Islands Small Business Access Act (H.R. 3496) seeks to include the Commonwealth of the Northern Mariana Islands (CNMI) in the SBA's microloan program . The microloan program provides loans of $50,000 or less to help small businesses, especially those unable to access capital elsewhere, to grow and create jobs . This bill addresses the CNMI's unique challenges, such as geographic isolation and reliance on tourism, by ensuring equitable access to this vital capital [ 00:51:27-00:51:32 ]

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Employee Ownership

The Improving SBA Engagement on Employee Ownership Act (H.R. 5778) is a bipartisan bill requiring the SBA to implement provisions from the Fiscal Year 2019 NDAA concerning information and technical assistance on employee ownership . The bill aims to strengthen local economies and empower workers by promoting models like Employee Stock Ownership Plans (ESOPs) and cooperatives, which historically have had limited access to SBA lending programs and technical support .

Regulatory Relief and Red Tape

The Dump Red Tape Act (H.R. 4305) proposes to codify the SBA Office of Advocacy's Red Tape Hotline, enabling small businesses to report burdensome federal regulations . It also requires annual reports to Congress detailing these regulations and the SBA's advocacy actions . Supporters argued that the hotline provides a crucial avenue for small businesses to gain regulatory relief and combat job-crushing bureaucracy, especially given the significant regulatory costs imposed on them .

Two amendments to H.R. 4305 were debated but ultimately not adopted . One amendment sought to expand the hotline's scope to include concerns about tariffs, healthcare, and immigration, and to increase transparency regarding submissions . Opponents countered that this would overstep the SBA's mandate, politicize the hotline, and dilute its focus on regulations . The other proposed amendment also aimed to include executive actions like tariffs and ensure transparency, highlighting that tariffs significantly impact small businesses' bottom lines and that current submissions are opaque . Despite these failed amendments, the main bill passed .

Tone of the Meeting

The overall tone of the meeting was largely cooperative and bipartisan, with multiple speakers commending cross-aisle collaboration [ 00:28:19 ] . Most of the bills presented were passed unanimously, reflecting a shared commitment to supporting small businesses . However, discussions surrounding the "Dump Red Tape Act" and its proposed amendments revealed clear partisan divisions, particularly concerning the inclusion of tariffs and the appropriate scope of the SBA's advocacy role . The Chairman concluded the meeting by emphasizing the strength of bipartisanship within the committee and its progress in getting things done .

Participants

Transcript

Okay.
Representative Muser from the great state of Pennsylvania   The committee will now come to order, and a quorum is present.
Without objection, the chair is authorized to declare a recess of the committee at any time.  As required by the House rules, a copy of the legislative measures have been made available to members and the public at least 24 hours in advance.  Without objection, the committee will vote electronically in accordance with the committee rules and regulations developed by the House committees on rules and administration.
I now recognize myself for opening remarks.
Today, we will mark up seven important bills that support small business across the country.   These bills reflect the commitment to equipping entrepreneurs with the tools they need to innovate, grow, and compete in our ever-evolving economy.  From the expanding access to artificial intelligence resources, strengthening oversight, removing outdated barriers to capital, and tackling burdensome regulations, each of these bills will support Main Street America in a meaningful way.  As chairman, I'm proud of the work being done in this committee to support the administration's efforts.   and ensure that small businesses remain at the forefront of the American economy.  These bills represent the committee's bipartisan commitment to fostering an environment where small businesses can grow, innovate, and invest in their communities.  Several of the bills we are considering today focus on the transformative role of artificial intelligence and ensure that small businesses have access to resources and training to help them utilize AI.  Our bills today will also bring greater accountability and oversight of the SBA   504 loan program and improve access to SBA lending by all types of industries.  We will also consider a bill that would finally bring SBA micro lending to the Commonwealth of the Northern Mariana Islands.  I appreciate the ranking member and the committee staff who have supported the committee's effort over the years on this issue.  Another bill will require the SBA to implement requirements for the fiscal year 2019 and   and DAA to provide information and outreach about employee ownership for small businesses.  And finally, we will consider a bill that empowers small businesses to report burdensome regulations by codifying the SBA Office of Advocacy's red tape hotline.  I'm proud of the continued bipartisan efforts that have resulted in today's markup.  These efforts have led to the passage of 18 small business bills out of the House this year, which now await Senate consideration.   I look forward to working with my colleagues so we can continue to pass meaningful legislation that empowers small businesses and strengthens our communities.
Now, with that, I look forward to today's markup, and I yield to the distinguished member and my friend, a ranking member from New York, Ms. Velazquez, for her opening remarks.
Thank you, Mr. Chairman, for convening this markup today.  As we consider legislation to shape the future of small businesses across the country, it is important to address both the opportunities and challenges facing small businesses today.  I plan to lend my support to the six bipartisan bills under consideration and I will lay out my concerns with the last bill.   and I appreciate the Chairman's efforts to mark up a fair ratio of Republican and Democratic bills.  I'm encouraged to see us working together on common sense bipartisan bills that provide more opportunity for small businesses because expanding opportunities shouldn't be a partisan issue.   with that said we need the sba to be a more accountable partner ignoring congressional oversight letters and requests for meetings undermines trust it needs to change and my hope is that you will join me in ensuring the agency is more responsive to this committee and i am hopeful we can work together on issues that really matter lowering costs for small businesses   These critical employers who account for a large portion of jobs in this country are not hiring because they are grappling with inflation and escalating costs.  According to the Center for American Progress Analysis, more than 5 million self-employed small business owners have health insurance coverage through the ACA.  We cannot allow these tax credits to expire, causing premiums to double for millions of Americans.   And our ranchers and farmers are reeling from decisions on tariffs and beef purchases that have been unilaterally made by this administration.  I urge you to schedule a hearing so we can hear directly from small businesses about these important issues.
Thank you again, Mr. Williams, and I look forward to a productive markup.  I yield back.
Lady goes back and does any other members seek recognition for the purpose of making an opening statement?
Okay, seeing none, we will now move to consideration of the first bill.  The committee now moves to consideration of HR 5763, the Main Street Parity Act, introduced by Chairman myself and Representative Simone.
The clerk will report the bill.
HR 5763, a bill to amend the small business.  Without objection, HR 5763 is considered as read and open for amendment.  I now recognize myself for a statement on the bill.  Most small business owners applying for 504 loans must contribute 10% as a form of down payment.  However, if their loan involves a limited purpose property such as bowling alley, dairy farm, or doctor's office, they must contribute an extra 5%, a total of 15% down.   And everyday businesses on Main Street like these are unfairly burdened with this extra equity requirement that is based on outdated, inaccurate assumptions that these kinds of businesses pose a greater risk to the program.  So most of the loans in these affected industries like bowling alleys, hospitals, and wineries perform better on average than the entire 504 portfolio.  So this bill will remove unnecessary burdens for entrepreneurs who are seeking loans for these special purpose buildings and will put them on equal footing

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