Lawmakers press SBA issues after witnesses describe contracting goal changes and funding uncertainty
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Summary
Members and witnesses discussed the SBA’s updated contracting targets, low program approval rates in some jurisdictions, and recent reports of a federal funding freeze that left field staff and small businesses uncertain about access to programs and grants.
Representative Cisneros noted that the Small Business Administration updated contracting goals for fiscal year 2025, reducing some targets such as the disadvantaged small business share to 5 percent. He asked witnesses how those changes would affect small disadvantaged, women‑owned and veteran‑owned firms seeking federal contracts.
Alice Frasier, who testified for the Independent Community Bankers of America, said reduced targets may lower expected contract volume for some categories and that lenders could be less likely to finance firms that expect fewer government contract opportunities.
Witnesses and members also raised the SBA’s recent administrative problems and a brief federal funding freeze that affected field offices. Several members said they were contacted by regional SBA staff and local small businesses who reported closed portals, delayed payments or uncertainty about program continuity. Molly Moon Neitzel described the SBA loan process for her expansion as complicated but operational; other witnesses asked the committee to improve SBA outreach and stabilize program administration for geographically isolated or disaster‑affected markets.
Representative Kilduff and others raised the low approval rates for some SBA pandemic‑era programs, including the Restaurant Revitalization Fund and other recovery grants in certain territories; committee members requested staff examine whether national programs are effectively reaching high‑need or remote communities.
Members also discussed the SBA’s role in fraud prevention and efficient program delivery. The chairman signaled oversight priorities for the committee’s subcommittee work and asked witnesses to submit follow‑up materials about program access and barriers for small lenders and borrowers.
No formal actions or votes occurred; members asked for written follow‑up and additional documentation from SBA staff and witnesses.
