Good morning, Chairwoman Velazquez, Ranking Member Luetkemeyer, and members of the committee. Thank you for the invitation to be here and for the opportunity to discuss SBA’s programs and response to the COVID pandemic.
When I appeared before you as a nominee recently, I mentioned how this unprecedented crisis for our nation’s 30 million small businesses and innovative startups had created a sense of urgency to work harder, think more creatively, and build more collaboration to meet the desperate need presented by this moment.
In my first 75 days as SBA Administrator, I can tell you that my motivation to deliver for our entrepreneurs has only intensified. And, I have to share how proud I am of my incredible mission-driven team at the SBA, who, despite having had to scale at a high-intensity the past year plus, remain incredibly committed to our nation’s entrepreneurs. They’ve been working around the clock to deliver the American Rescue Plan’s crucial relief programs to ensure our small businesses can survive this disaster and get on the path to recovery, growth and resilience.
We’re making significant progress – particularly in our efforts to reach small businesses owned by women and people of color, who, because of long-standing barriers to capital, markets and networks, suffered disproportionately from this pandemic … and, by many accounts, weren’t able to access relief.
We’re seeing the impact. The latest economic reports show that small business jobs have begun to rebound, and proprietors’ income levels have begun to recover. And, we’re hearing from the small businesses we serve that both our traditional and our new relief programs have created vital lifelines.
Earlier this month, we successfully launched the $28.6 billion dollar Restaurant Revitalization Fund. As of Monday, when the application portal closed, we’ve received more than 372,000 applications representing over $76 billion in requested funds. So far, we’ve been able to get close to $16 billion dollars into the hands of more than 63,000 food and beverage businesses owned by women, veterans, and people of color, who, as directed by Congress, received priority access to the program.
And we’re reaching the smallest of the small food and beverage businesses, with one-third of the total funds set aside just for them – including a specific set-aside I created for businesses with revenues of $50,000.
I’m proud of how we rolled out this program in under two months, while focusing on my key priorities of meeting small businesses where they are and integrating a customer-first, technology-driven and equitable approach.
We also launched the $16.2 billion-dollar Shuttered Venue Operators Grant program. As of May 25, the SVOG program has received more than 13,000 applications for approximately $11 billion in requested funds.
We started distributing our SVOG funds this week – and we hope to continue to help our nation’s venues hold on until they can bring back the performances and experiences that are the lifeblood of our American culture.
Through our Paycheck Protection Program and Economic Injury Disaster Loan programs, we’ve now gone beyond $1 trillion dollars in relief. And, so far in 2021, 95 percent of PPP loans have gone to small businesses with fewer than 20 employees.
Our priority across all our relief programs is to get funds into the hands of small businesses swiftly, efficiently and equitably. At the same time, we’re also committed to maintaining a high level of oversight to minimize fraud and abuse, while elevating transparency and open communication. We have implemented controls and oversight to better achieve that balance and reversed some of the previous fraud challenges that initially plagued the PPP and EIDL programs.
I was pleased to hear both GAO’s Bill Shear and SBA’s Inspector General Mike Ware say in a recent House committee hearing that transparency at the SBA has improved under my watch, and that our relationship is off to a very good start. There is a lot of work to do, but we’re working diligently to ensure this relief get into the hands of the businesses for whom it was intended.
Beyond our COVID relief programs, we’re also looking to the future and our nation’s economic recovery – with an eye toward equity.
Small businesses are starting to reopen but they’re still reeling from major revenue losses – and most expect recovery to take more than six months. This means that we will continue to see the need for capital, which is why the SBA is exploring all options to open up capital access, including direct lending.
Additionally, we know that the best thing we can do for our small businesses is to help our nation recover from COVID and get our marketplaces and main streets back to normal. With more than 61 percent of adult Americans who have taken at least one shot of the COVID vaccine, we’re making progress. The SBA is doing our part by getting the word out about the American Rescue Plan’s tax credit available to small businesses that provide paid leave to employees receiving, or recovering from, a COVID vaccination.
There is so much more work to do. As the voice for America’s small businesses and innovative startups, I will be leveraging every tool at my disposal to bring businesses back, create jobs and build an equitable economy that works for everyone.
I look forward to partnering with you to give all entrepreneurs the tools they need to start, sustain and grow into the future.
Thank you, Chairwoman Velazquez, Ranking Member Luetkemeyer, and members of the committee for the opportunity to appear before you today.