Chair Ernst Delivers Opening Remarks at Kelly Loeffler Nomination Hearing
WASHINGTON – Today, at the Senate Committee on Small Business and Entrepreneurship hearing on the nomination of former Senator Kelly Loeffler to serve as the Small Business Administration (SBA) administrator, Chair Joni Ernst (R-Iowa) highlighted how Loeffler’s track record as a successful business leader provides the exact experience needed to reform the bloated agency and restore its mission.
Among the biggest areas in need of reform, Ernst cited widespread fraud in COVD-era relief designated for small businesses, the SBA’s mismanaged loan and disaster aid programs, and rampant telework abuse.
Click here watch Chair Ernst’s opening remarks.
Ernst’s full remarks:
“Senator Loeffler, as I already said, welcome to the Committee, and thank you for your willingness to serve in this role.
“I greatly appreciate the time you’ve spent meeting with me and my colleagues prior to this hearing. I want to take a minute to recognize some of your family here supporting you today. First, your husband, Jeff. Thank you, Jeff for being here. Next, your brother Brian, and his family, who I understand traveled to Washington D.C. from their farm in Illinois. And also, your parents, Don and Lynda, who are watching the hearing from their home in Florida today. We appreciate you all making the trip here and tuning into this important hearing.
“As a former member of this body, you understand the importance of the Senate’s advice and consent process, and I appreciate that you have fully embraced the committee’s standard, yet extensive, vetting of your experience and background in advance of today’s hearing and our upcoming vote on your confirmation.
“As a successful businesswoman, it is abundantly clear that you truly understand what it takes to be an entrepreneur.
“Throughout your distinguished career, you’ve risen through the ranks at multiple companies due to your determination and grit, and you have started many successful businesses yourself.
“Most importantly, you understand what it means to be overrun by Washington’s bureaucratic overreach—and that government must instead get out of businesses’ way so they can thrive.
“Small businesses and their advocates are excited for your leadership. The Committee has received several letters of support for Senator Loeffler’s nomination.
“The mission of the SBA is to aid small businesses to ensure economic prosperity and free competition.
“Traditionally, SBA administers programs and services falling into three main buckets: there’s counseling, contracting, and access to capital.
“While SBA once may have been characterized as a smaller agency, COVID small business programs made SBA a household name, as the agency received a whopping $1.1 trillion in taxpayer funding to assist small businesses during the pandemic.
“With that funding came big responsibilities, and I remain concerned the SBA under the prior Administration failed to live up to its mission.
“I believe substantial reforms must be made to get the SBA back in shape, and that is going to require strong leadership.
“The Biden administration decided to turn a blind eye to COVID fraud and delinquencies, refusing to properly collect outstanding debt and fraudulent funds, which has huge implications to the taxpayer.
“Reports have indicated SBA charged off about $18.6 billion worth of EIDL loans in Fiscal Year 2024.
“Not once during the Biden administration was the SBA able to provide an accounting of their loans receivable and loan guarantees, which meant that the Government Accountability Office hasn’t been able to even issue a financial audit of the Agency since Fiscal Year 2020.
“SBA also completely mismanaged and misinformed Congress last year regarding its disaster loan account, resulting in a shortfall lasting 66 days – an unacceptable failure for the disaster victims in North Carolina, South Carolina, Georgia, Virginia, and Florida.
“I do appreciate that once the account was funded, SBA staff worked around the clock, including over the holidays, to get the money out to disaster victims, but I never want to see that situation unfold again.
“While SBA is failing, it also appears that its workforce continues to stay home, while its more than 246,000 square foot Washington, D.C. headquarters sits empty.
“The GAO found that even if everyone did show up to work in person, the SBA’s building space would still only be 67 percent utilized, which is a complete waste of taxpayer money.
“That is why I introduced a bill to relocate 30 percent of the headquarters workforce to the SBA district offices across the country and cut 30 percent of office space.
“The SBA has been completely out of touch with the real-world challenges of entrepreneurs, and while the Biden administration simultaneously let SBA employees stay home, they also added positions in Washington, D.C. while stripping offices in Iowa, New Hampshire, Utah, and other states.
“I would like to work with you, Senator Loeffler, on ways to ensure SBA is effectively utilizing its personnel and ensuring that small businesses in all parts of America are able to access SBA programs if they need them.
“I’ve detailed these concerns and others regarding the mess you have to clean up from the Biden administration, and potential landmines you will encounter, in a letter to President Trump on day one of his new Administration. I ask unanimous consent to enter that letter into the record.
“Without objection, so ordered.
“In Iowa, Main Street is in trouble, and I hear from my colleagues that this is true in their states across America.
“Small businesses are the lifeblood of our rural communities, and for too long under the Biden administration, they’ve been crushed with red tape and woke program requirements, with no one caring about how that affects the day-to-day operations.
“I see a great opportunity for the Trump administration, and you, to revitalize small businesses in America.
“Thank you again for being here, and I look forward to your testimony.”
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