. >> a look at the challenges facing small businesses with isabel guzman the head of the small business administration. the conversation concerns the recent collapse of banks in the u.s.. collapses of small banks in the u.s.. >> >> thanks so much for being with us this morning. >> my boss, the axios ceo says that this is the weirdest economic time he has ever experienced in his 16 years of running companies. i think the fact of the matter is a lot of small businesses really have no idea of where the economic winds are headed. what is your primary message? >> for sure, there has been extreme uncertainty. what's important to note from an overall perspective, we've had a historic economic recovery, 10 .5 million people applied to start a business, a record high, then historical averages. that is a lot of hope, as the president says, with each application filed. in addition we have created, 12.4 billion new jobs. small businesses are part of that. they are the ones that create two thirds of the new jobs. now, more than ever as they are challenged with uncertainty it is important we have these great govern

told me he applied for assistance through the small business administration, but so far has not seen om them, and the process has been growing. i don't think any of the businesses have -- we have all applied and we are in touch with each other all the time. i don't think it has come in. >> reporter: garth mcdonald works for the sba. they say they have had a team on the ground helping business owners in santa cruz county since january. but he says that it unfortunately just takes time to get paperwork filled out and checks in the mail. >> everything, when it comes to the disaster, is not fun to deal with, but it does take time. it requires some patience and perseverance. i wish, you know, we could just snap your fingers and make it go faster, obviously. >> reporter: garth says that so far the sba has already approved approximately $875,000 in loans for 23 santa cruz county businesses. jeff told me that the officials he had spoken to have been very helpful in guiding him through the process, but he just needs that money to come through, too. >> maybe the landlord will be able to access

but the small business administration was flooded for a short period of time it was never in the position to have to handle the incoming bout it did any short period of time. and frankly overall i think they did a very good job dealing with it. imagine had they been modernize in a lot of ways even better how they might have handled other might've had in place. you cannot let decades go by before rethinking a government agency or frankly imagine for 20 audit plus years of ignoring innovation changes thinking they not have to update it's really ridiculous. >> congress created advocacy almost 50 years ago in an effort to have an independent watchdog but a lot of agencies have that the small business community the position has been filled permit for more than six years shouldn't this be a priority? maybe this gets wrapped up in sba authorization? >> that will be the thing brought up in reauthorization. >> was mccarthy say what is your leadership say? >> is december of 2000, right question look at every single speaker every single administration nobody has done it. bills have been introduced i

. >> wow, jeff says he applied for assistance through the small business administration, but so far heseen a dime of any of that relief. the administration tells us unfortunately it will take quite a bit of time to get all the paperwork filled out and more checks in the mail. but in the meantime, jeff is facing more than three months without any source of income from his business. but thanks to bridge builders in our community, friends and other locals are stepping forward to help. here is how he's getting by. >> this bar is a lot like cheers, you know, a lot of the locals kept it going in the offseason and the locals were coming by every day, what can i do to help? and some people i don't even recognize. we can't wait for you to be open, so that's touching and inspiring. >> and that is what we do as bridge builders. we see a need and help. he's grateful for all the community support. he plans to have a reopening party once he's back up and running, and may it come sooner than later. >>> still ahead, a mother whale and her calf spotted on the water. what makes this sight >>> welcome ba

small business administration office of inspector general. he serves as the principal adviser to the ig. and assists with conducting oversight of the sba's programs and operations include paycheck protection program and the economic injury disaster loan program. gentlemen, i would ask pursuant to committees rule -- the witnesses would please stand and raise their right hands to be sworn. the gentleman will affirm at the end if you would choose. do you solemnly swear to affirm that the testimony that you are about to give is the truth, the whole truth and nothing but the truth, so help you god? let the record reflect that all three witnesses, thank you very much, answer the question in the affirmative. and thank you very much. we are now going to begin. those opening statements, mr. turner. you will be first, mr. del mar. you will be second, mr. shoemaker. you will be third, the gentleman. -- mr. turner is recognized. >> good afternoon, chairman session. ranking member mfume and distinguished members of the committee. thank you for the opportu

package on the last administration, reupping p.p.p., on e.i.d.l., which were critical small business administration was flooded. short period of time and never in the position to handle the kind of incoming it did in a short period of time. frankly overall i think they did a good job dealing with t imagine had they been modernized even better how they might have handled it and what other fail-safes might have been in place. you can't let decades go by before -- like thinking on a government agency or frankly imagine a business in this country for 20-plus years ignoring all innovation and changes and thinking they cannot have to update. ridiculous. congress created the office of advocacy inside of s.b.a. almost 50 years. a lot of agencies have that. this position hasn't been filled permanently for more than six years. jake: shouldn't this be a priority? maybe this gets wrapped up in a s.b.a. re-authorization. mr. fitzpatrick: that's the kind of thing that would be brought up. what does your leadership say? mr. fitzpatrick: december of 2000, look at every single speaker, add m. nobody's done it -- ad

your reporting armed agents agriculture, labor, the small business administration, epa.agents and agencies, why? >> that's a good question, i wrestled with that when i was ahead of the committal investigative division. there's 50 some odd inspector general's they have armed 1811 series agents because that is armed categoryit's interesting we have militarized agencies. hhs has opened the box $400,000 on tactical gear, 85 grand on body armor. at has 500 armed agents, the irs has nightvision weaponry. to your point, there hopefully going after the bad guys. it's an all-out blitz to basically do more audits and hire more workers and agents. the irs commissioner says they're not going to audit or go after those under 400,000 but do you believe that? >> no i don't believe that. as a small business owner it strikes fear, as i said i had experiences with the irs as an attorney representing clients and most of the time they are flat out wrong and they're trying to check a box, get this data. the 80000 scare me. i'll go back to the original theme the irs theme investigators i like

. >> like what >> well, i think the small business administration, again, looking specifically at the effect on small businesses, the sba may have some authorities to step in and fill the body. and we can make some proposals to congress. i think one area where there is bipartisan agreement is on small businesses and so, our hope is that if there is a need, we can go to congress and get what we need from them in terms of filling that gap >> really interesting times right now, as you're aware, this story earlier in the week about commerce putting out for comment possible solutions about ai, right quick and whether or not there needs to be some kind of certification process for technology, bharat, that some argue has huge upside on productivity, which would then feed down to labor, wage inflation. how is the white house thinking about that can you afford to really put stringent guardrails on and not take advantage of what it promises >> well, look, there's both risks and rewards, as you've just detailed. and part of what we're trying to do is get our hands around what those are and what

. >> a look at the challenges facing small businesses with isabel guzman the head of the small business administrationthe conversation concerns the recent collapse of banks in the u.s.. collapses of small banks in the u.s..

we saw this play out offered directly by small business administration during the pandemic. was a member of the small business committee the 17th congress. we had much higher incident fraud related to the ppp loans issued through the financial institution and the underwriting. direct customer approach to distribute flood insurance and fip were agents are not currently reaching. thank you for the question and no i do not. over 30 years ago direct consumer approach over and over again failed in this. if we agree education is essential to increase u.s. household that is even more important to live and live in and have local knowledge and local communities in the process we refer to the levy nearby the bill that are specifically flood risk in the area. a critical role in services after they are written when mortgages are paid off is just as important as writing a new one. we don't believe a representative or website be effective for information and one other plan i would add is communities we talked about earlier disadvantaged may not have same access computers and internet that

mcgovern: i ask unanimous consent to insert into the record letter from the small business administration that says that republican spending cuts would mean almost 300,000 fewer small businesses would be able to participate in their development program. the speaker pro tempore: without objection. mr. mcgovern: i ask unanimous consent to insert into the record a letter from housing and urban development that 200,000 families would lose rental assistance and thousands more would be at risk of homelessness. the speaker pro tempore: without objection. mr. mcgovern: i ask unanimous consent to insert into the record a letter from the department of home left-hand security that says the proposed cuts couldlead to more illegal drugs entering our country including 350,000 grams after fentanyl, other00 million fatal doses of fentanyl that republicans will be responsible for letting into our country. the speaker pro tempore: without objection. mr. mcgovern: and i ask unanimous consent to incert into the record a letter that detail house the radical republican budget cuts would lead to a million new m

companies that fascinate me and some of them become big but i'm wondering when i look at the small business administrationh all due respect in the united states, do they get it? >> some get it in the work in this strategy and try to improve on things that there has been things this last decade of the craziest ideas, partnership between the rural companies and big companies will be much more important these other sectors, he need integration but part of it is innovators and policy makers in the startups and big companies that can accelerate their growth. for those of you care, if you want to be on an airplane ride, i want to thank the national advisory council and innovation efforts and cofounder and carolyn ceo, thank you very much. ♪♪ >> please welcome back business and technology editor to lead a discussion on the digital transformation. ♪♪ >> hi, everyone. hope you had a good one. we are joined by cofounder and chairman came in from india this weekend. we are going to be talking about transformation india has made in a short amount of time and to share some slides with me and people are always so shock

we saw this actually uh play out with the idol loans offered directly by the small business um small business administration during the pandemic. uh i was a member of the small business committee in the 117th congress. uh we had a much higher incident of fraud uh related to the ppp loans issued through um the sba than we did through the financial institutions that did the underwriting on them. so to mr. hendrick, do you think the direct to customer approach to distributing flood insurance would reach consumers that the nfip or agents are not currently reaching? >> thank you for your question, congressman. and no, i do not. um since, since i entered the insurance industry over 30 years ago, uh direct to consumer approaches have been tried over and over again and most have failed. in fact, over this time, the market share of independent insurance agents has remained stable or it's grown, and we've talked about education earlier. and if we agree that education is essential to increasing the number of u.s. households insured for the peril of flood, uh then it's even more important that independent agents who li

shoemaker, i remember particularly the small business administration and focused on the other part of our subcommittee. which is the i.t. part, i believe the basic i.t. platform for small s.p.a. is each rams, is that correct? >> the seven a lending program, yes. >> yes. and i believe back in april of 2020 that's the normal annual budget of svm for about $20 million a year's, is that correct? >> i think that is high. >> that might even be high. >> yes, yes. >> we pump 600 billion dollars into the sba in april of 2020. over 30 times the normal budget of sba, is that correct? >> that is correct, s.p.a., it is normally seven a lending, 35 billion dollars. the cares act authorized three -- and as you indicated, there was i believe that congress had a concern at that time, there were oversight resources put into place, but what was not foreseen, another 300 billion dollars into the program. another hundred 50 billion to take us to a tiered 13 billion dollars. >> and the problem was that we wanted to get it to main street. he mom and pop businesses. small minority owned, retreat -- don't nor

small businesses? which one of those is the biggest challenge? isabella: perhaps i am the sba administrator known for getting capital into the hands of small businesses i hear the number one concern is capital. a lot of businesses and potential new entrances are just confused by the process. they need somebody to walk them through. we provide grant funding support to a network of advisors who can help our small businesses get the contract ready. not only through the network, but we have specialized contracting grants to get the socioeconomic firms ready. in addition to that we have -- we really believe that expanded the network and making people aware of sba's core services that the district offices and a headquarters is really important. the community navigator program has focused on contracting in particular. getting black businesses contract ready. we see great disparity, less than 2% of contracts go to black firms and contract businesses, want to make sure we did reverse that disparity across all the socioeconomic groups and ensure they know how to get those contracts. that really picks

thank you. >> thank you. >> can i ask unanimous consent to insert into the letter a small business administration that states it's a impact on the competitiveness and specifically note 300 fewer small businesses would be able to participate they are entrepreneurial development program? >> thank you all for your thoughtful questions. i have a few questions of my own before we open up for the rest of the panel to ask their questions. why don't we start with you. i want to get your reaction i've often heard discussion about the debt limit and raising the debt limit should be done in a clean way without any other provisions attached to it. is it normal for congress to pass this without any changes in spending at all? >> i would say that the best fiscal reforms in modern history have come as a result of negotiating the debt limit so this is not unprecedented. people are going to fear longer. they do every time this comes out. but mr. chairman, it is simple, the debt limit is here and we have to make a decision because it's a check on our indebtedness and the indebtedness in our country and the impact

about the possibility of new taxation or at the very least new regulations from this administration. small businessesre killed by those regulations. the big businesses can kind of work it into their budget, but the small businesses, it literally can bill business -- kill business. mark, thank you very much for being here on friday. have a great weekend. >> thanks, david. david: the cost of the inflation reduction act may actually be increasing inflation. a revised model from penn-wharton adjusting its previous estimate to more than $1 trillion, and a lot of that is the green energy stuff. fox business' grady trimble is on capitol hill with this story. grady. >> reporter: hi, a david. democrats continue to argue that the inflation reduction act, as the name implies, will lower costs for americans. but what we're finding out from this new projection is that it's actually going to cost taxpayers a lot more than was originally advertised. so the new calculations are from the penn-wharton the budget model. the projection says that over the next ten years the inflation reduction act will cost almost three

i would like to make a motion to send item one, which is administrative code provisions good afternooning the small business commission dauts stot full board. >> on the motion vice chair walton. >> aye. >> supervisor safai. >> aye. >> chair dorsey. >> aye. iot motion passes without objection. >> thank you, mr. young. item one guess to the board with a positive recommendation. item 2 is an ordinance amending the code to remove the minimal cost weighing for design, build and contractor best value procure am and consideration of contract and performance evidence and consider contractors for award of public works contract. >> thank you. we are joined by supervisor mandelman the sponsor. welcome. the floor is yours >> thank you, chair dorsey. the legislation you have before you today respondses to and implements 2 recommendations of 2 different civil grand juries one report came out in june of 2021. specifically looking at van ness brt challenges. and the other came out in april of 22. and looking for broadly at capitol project delivery. and so. initially we felt to combine the 2 sets of recommendations. we have

they are worried about adding staff and what itle will mean fr small businesses who might receive more audits the biden administration will only increase, audit rates for high earners will be impacts for middle income individuals so there is concerned that and there is pushback and delay of getting this on exactly where the spending will go. even after they put the plan out there is pushback in terms of lack of specificity and long-term goals and things like hiring. nextxtfi year what will that lok like three or four or five or six years down the road and we don't have those? >> it sounded like taxpayer services they want a frontline engagement with taxpayers to be our first priority. >> that's right. the administration is hoping the original hiring spree will go toward helping like i was talking about, the user experience answering the phone calls, dealing with people's questions as they comeh up. then later on they will get to the hiring enforcement, people do the investigation into taxes and auditing those. >> talking about planned hiring of additional irs officials and spending proved in the inflation reductionat

targeted and told us for years their plans are to audit were small businesses self-employed people, independent contractors throughout the administrationwork on independent contractors to force everybody to have a job and boss not the independent contractor they are using irs to go after independent contractors as well they think are not paying enough in taxes and also self employed people in the most recently announced they're really get people who are paid in tips. all this happy talk about biden is just billionaires, i don't know too many billionaires that survive on tips. i know a lot of people that work on restaurants and barbershops that do. >> that is unbelievable it is outrageous, they keep telling us the doctor to raise taxes making $400,000 or more but then at the same time they say they wanted water people tips. >> that's where they think the cash that they don't see is, they wanted and this is not about auditing rich people they get audited when the irs itself stole data and give it to a left-wing group republican two years ago and they still haven't come forward with an omission of who did that, nobody's been punished they

small businesses. i also. to take a moment before i introduce our city add administrator carmen chu to just also mention the housing for all plan. because this is a center not just for mall businesses but i center people will come to get permits and the things than i need for so many things if you want a picnic and birthday party, you get this is one stop shop permitting. a festival, this is where you come. it is also the accomplice people come who are building housing or -- doing some stuff to their homes and all the different things. in san francisco we have a plan housing for all and we are going to push forward a number of changes to make it more efficient to get the plans approved and get housing built firefighter in san francisco. we have a requirement under the state to build 82,000 units of housing in san francisco in the next 8 years. you know what that means if we do this right? that means the city employees who work in this permit center can ford to live in san francisco. [applause] some of the people coming can live in san francisco if we do this right and make it efficiently we cut become on the costs.

extending interest deduction all affect small businesses drive the economy small businesses create most jobs over 60% hoping to see something another of administrationcut taxes to increase our revenues. maria: look. i see this report actually as worse than expected, as i look through all of the headline numbers here, we've got wages up, up 3/10, personal income was up /10 of a percent, that was hotter than 2/10 expecting we've got personal consumption that is spending, actually unchange it was expected down one/10 of a percent not bad there the core number in terms of the core pce up 4.6% hotter than stiltdz 4.5% that takes the employment cost index up 1.2% versus estimate 1%, by reading this right john you were focused on wages is this hotter than expected report? john: looking at totally wage and salary income being 3/10 of a percent is lousy multiply by 12 get under 4%, for an entire year. and that has been associated with subpar s consumer spending growth i think there is one word to try to describe this report and that is "stagflation" this is a stagflationry report, showing basically no growth by consumer spending, while we still have a rate o

overriding the veto would get rid after biden administration rule that hurts american landowners, small business owners, and farmers. back in 2020 the e.p.a. address add long-standing problem. it got rid after broad and confusing definition of waters in the united states, also known as wotus. and replaced it with a definition much more specific and easier to understand. but no good deeds left unpunished, mr. speaker. landowners need to know if their body of water meets the definition of wotus because if it does it's subject to a much stricter environmental regulation. of course the biden administration is doing what it does best and messing up the situation. like my dad used to say about education, the problem we have with education is we called in the people that created the problem to fix it. that's what they are doing. it repealed the clear definition of wotus from 2020 and replace it with a more confusing and ambiguous one. this means more landowners, small business owners, and farmers will need to hire expensive lawyers and consultants to figure out if their body of water qualifies as a wot

hard and the issues keep coming through like we just saw and small businesses are feeling the pinch, that goes right to what the administration needs to be doing. heather: well, certainly. the regulars are doing their part. the president has called on congress to do their part to re- regulate in keyways for the financial sector to make it safer and to prevent these kinds of crazies from happening again. but again, we don't -- these cancer crises from happening again. but again, we don't comment on fed policy. one of the challenges facing our economy more generally could be the chaos if we do not address the need to increase the debt ceiling. the speaker has voted three times in the prior administration to increase, the debt ceiling without conditions and we need to see that kind of action being taken this time around as well. as we are looking down the pipeline, that's one of the things we are most concerned about, upsetting the trajectory of this economy. guy: one thing that might upset the trajectory of the economy is the rapid rise in unemployment. senator warren has indicated her concerns around this, indicating that she

i would like to make a motion to send item one, which is administrative code provisions good afternooning the small business commission dauts stot full board. >> on the motion vice chair walton. >> aye. >> supervisor safai. >> aye. >> chair dorsey. >> aye. iot motion passes without objection. >> thank you, mr. young. item one guess to the board with a positive recommendation. item 2 is an ordinance amending the code to remove the minimal cost weighing for design, build and contractor best value procure am and consideration of contract and performance evidence and consider contractors for award of public works contract. >> thank you. we are joined by supervisor mandelman the sponsor. welcome. the floor is yours >> thank you, chair dorsey. the legislation you have before you today respondses to and implements 2 recommendations of 2 different civil grand juries one report came out in june of 2021. specifically looking at van ness brt challenges. and the other came out in april of 22. and looking for broadly at capitol project delivery. and so. initially we felt to combine the 2 sets of recommendations. we have

spoke wit telemundo's vanessa hawk about how the administration i helping latino small busines owners overcome financia barriers >> even though latin businessess to the america economy, we know that they'r less likely to have access t financing. they receive only limite government contracts can you administration d something to overcome thes barriers >> latinos barbaric businesses are one for new businesses latino owned, but only 1% of venture capital funding goes t latino businesses. we've got to change that the work that we have been doing is to increase access to capital. so when i was in the unite states senate was, responsible for other senators to get 12 billion more dollars int community banks. because banks situated in th community understand the community, the culture, th needs. and that is about gettin access for small businesses to begin to start as start-ups bu also to grow >> florida's republican latino bond helped turn miami-dad county red and last year's midterms, but an actual re wave by latino voters don' materialize. nbc's new six crises, like joh leguizamo does america and asks how democrats can regain the success that they

administrative leave. it was the result of a misconduct investigation by the fbi and the contra county da's office. there has been a spike is small business burglaries across oakland, oakland, police say more than a dozen commercial burglaries were reported. >> during the week of march 23rd and there was one night at 7 stores in chinatown were hit with many of the burglaries taking place around 8 and harrison streets. we checked in with oakland mayor sheng town today. she said police have made burglary calls a priority. >> it is completely frustrating. and, you know, i understand that frustration. you i know my car actually was broken into just yesterday. and, you know, i'm not i mean today, i'm happy to announce that i worked with the police chief allison, and we're actually schedule ii burglaries and these kinds of break-in as priority number one cause down. so they will be to a lot quicker >> mayor tell also announced increased police presence in shopping districts that that will go into effect later this spring. >> and now to the south bay where firefighters responded to an explosion in san jose this morning. it happened at an apartme

small businesses. i also. to take a moment before i introduce our city add administrator carmen chu to just also mention the housingn. because this is a center not just for mall businesses but i center people will come to get permits and the things than i need for so many things if you want a picnic and birthday party, you get this is one stop shop permitting. a festival, this is where you come. it is also the accomplice people come who are building housing or -- doing some stuff to their homes and all the different things. in san francisco we have a plan housing for all and we are going to push forward a number of changes to make it more efficient to get the plans approved and get housing built firefighter in san francisco. we have a requirement under the state to build 82,000 units of housing in san francisco in the next 8 years. you know what that means if we do this right? that means the city employees who work in this permit center can ford to live in san francisco. [applause] some of the people coming can live in san francisco if we do this right and make it efficiently we cut become on the costs. we create a

small business owner. wish you best of luck. thank you so much. if you're in brooklyn, go buy shoes at frankel's ash. >> ashley: biden administration still in the darkr the cata of stroic leak of highly classified documents. >> we like to get answers as quickly as we can to find out where this breach occurred. i don't know and it would be foolish for anybody to guess how long that will take. >> ashley: national security breakdown comes as china levels one of the most direct threats over u.s. support for taiwan. we have a live report >> washington. plus the border surge is hammering maine, and taxpayers in one city are being asked to fit the bill for migrant housing. one activist is not happy approximate it and he will join us live to react. it and he wil us live to react. it and he wils live to react. app it and he will join us live to react. it and he will join us live to react. it and he will join us live to react. bo it and he will join us live to react. ut it and he will join us live to react. >> todd: the defense department scrambling to find and plug the leak of troves of classified documents as fox news learns it could have come from outside